THE details of the transactions surrounding Mr Lowry's house have yet to be fully revealed. However as the Minister's company, Streamline Enterprises, conducted work for Dunnes Store, one possibility is that payment by Dunnes for the work on Mr Lowry's house was in return for work conducted by Streamline.
Such deals are known as "contra" deals in business, where one set of goods or services is exchanged for another, rather than cash payments. Such deals would be unusual in business, but not unknown. "Contra" deals are quite legitimate, provided all aspects are declared for tax.
In this case, however, the payment was for work done on Mr Lowry's personal property, rather to his company.
Mr Lowry has so far refused to comment on any details of the transaction. Among the questions relating to the transaction are whether it was fully declared for tax
As well as income tax issues, there are also VAT issues raised by the transaction. Dunnes Stores would be able to claim a VAT refund for work on its stores. However, such a refund would not apply for work on a private residence.