€3.5m office spend forces credit union into merger
THE collapse in the value of plush offices built during the property boom has been blamed for the forced merger of a credit union in affluent Howth.
The savings accounts and loans of Howth Sutton Credit Union have been transferred to a neighbouring credit union after its reserves were wiped out. However, the Howth office will remain open and savings are all safe.
Offices on Howth Main Street that cost €3.5m to build in 2008 have had their value written down heavily in the books of the credit union, prompting its reserves to collapse.
Loan arrears were not behind the decision of regulators to seek the merger.
There are close to 3,000 members of the credit union in Howth and Sutton, with total loans of €2.4m, and savings of €6.7m, documents presented to the High Court show.
If you failed to return the Form of Election, Return of Value document, your payment would have been automatically treated as income and will now be hit with income tax. The amount will also be subject to PRSI and the Universal Social Charge. But if you chose the capital option, you are likely to have avoided tax.
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If you still hold those shares, you have most likely made a loss on your initial investment in Eircom and the Revenue Commissioners have indicated that you won't have to pay any tax as a result – as long as you received your payment as capital.
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