Representations to Department of Finance on proposals for clampdown on taxation of “loans” from the Bank of Mum and Dad

Finance Minister Paschal Donohoe was hit with a wave of complaints over proposals to tax loans from the so-called Bank of Mum and Dad.

The Department of Finance had said before the budget it planned to tackle inter-family loans by linking them to the best interest rate somebody could have secured from a financial institution.

However, the change was withdrawn at the eleventh hour with Minister Donohoe saying it had the potential to “create inconsistencies”.

Records from the Department of Finance detail a flurry of correspondence to the minister from members of the public and government colleagues late last year.