68. Deputy Pearse Doherty asked the Minister for Finance the cost of allowing the use of section 110 tax status by those involved in the business of loan origination (details supplied); and his plans with regard to stopping these businesses operating in a tax neutral manner. (Question 31930/17 asked on 06 Jul 2017 - Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): Section 110 of the Taxes Consolidation Act 1997 sets out the Irish regime for the taxation of special purpose companies set up to securitise assets.  The tax provisions are intended to create a tax neutral regime for securitisation and structured finance purposes. 
If the loan origination company is a qualifying company (within the meaning of section 110 TCA 1997) then it would be able to operate in a direct tax neutral manner in Ireland.  There are...

55. Deputy Richard Boyd Barrett asked the Minister for Finance his views on whether significant mistakes have been made by the Government in relation to vulture funds in terms of the scale of acquisitions of property and property-related assets and in terms of the taxes forgone as a result of tax loopholes benefitting these funds; if he proposes any further policy or legislative action in relation to these funds; and if he will make a statement on the matter. (Question 1610/17 asked on 17 Jan 2017 - Tax Code)

Minister for Finance Deputy Michael Noonan: The Section 110 regime in its current form was inserted by Finance Act 2003.  It was introduced to facilitate structured financial products, including the securitisation of loan books by banks and was designed to provide a tax neutral structured finance vehicle.  
An effective securitisation regime is vital to the efficient working of the financial service industry.  It enables banks and other financial companies to raise money from the capital markets...

76. Deputy Pearse Doherty asked the Minister for Finance further to the recent change in the Finance Bill to section 110, concerning the carve out for a section 110 company that is involved in the loan origination business, if an Irish non-bank lender operating an origination platform for an investment bank offering finance to the Irish commercial property market would be able to operate in a tax neutral manner as a section 110 company; and if he will make a statement on the matter. (Question 39325/16 asked on 08 Dec 2016 - Company Law)

Minister for Finance (Deputy Michael Noonan): I am advised by Revenue that the income of a loan origination business should comprise interest received on loans originated, with the associated expenses being the normal expenses of carrying on such a business plus any interest paid on the funds borrowed for use in the loan origination business. 
If the loan origination company is a qualifying company (within the meaning of section 110 TCA 1997) then it would be able to operate in a direct tax neut...

76. Deputy Pearse Doherty asked the Minister for Finance the number of lenders and value of lending in the car finance PCP sector by companies that are operating with section 110 tax status, including a company (details supplied); his plans to act on this issue; and if he will make a statement on the matter. (Question 3566/18 asked on 24 Jan 2018 - Financial Services Sector)

Minister for Finance (Deputy Paschal Donohoe): Section 110 of the Taxes Consolidation Act 1997 sets out a regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to create a tax neutral regime for securitisation and structured finance purposes.
I am advised by Revenue that qualifying companies (within the meaning of section 110 of the Taxes Consolidation Act (TCA) 1997) may only hold certain “qualifying assets”. The list of qualifying a...

167. Deputy Ruth Coppinger asked the Minister for Finance if any analysis was carried out by his Department of the tax treatment of vulture funds prior to or after the sale of NAMA and State-owned bank assets to such funds. (Question 22052/16 asked on 19 Jul 2016 - Financial Vehicle Corporations)

Minister for Finance (Deputy Michael Noonan): Section 110 of the Taxes Consolidation Act 1997 sets out a regime for the taxation of special purpose companies set up to securitise assets.  The tax provisions are intended to ring-fence the use of section 110 companies for bona-fide securitisation purposes. 
The features of the regime are that:-
- The company must be tax resident in Ireland and carry on the business of holding or managing “qualifying assets”. “Qualifying assets” for Section 110 pu...

162. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 193 of 7 February 2017, if he will provide details of the use of section 110 companies by the Irish Bank Resolution Corporation, IBRC, including the number of section 110 companies set up by IBRC; the purpose of setting up these companies; when they were set up; if third parties were involved in these companies; the tax implications of using this tax structure; and if he will make a statement on the matter. (Question 7406/17 asked on 14 Feb 2017 - IBRC Operations)

Minister for Finance (Deputy Michael Noonan): I am advised by the Special Liquidators of IBRC that there were no active Section 110 structures in place at the time of their appointment. However, they have identified at least two historic loan securitisation transactions that involved the use of Irish Section 110 structures which were unwound prior to their appointment. The information available to the Special Liquidators indicates that the transactions involved the securitisation of loans (inc...

254. Deputy Sean Fleming asked the Minister for Finance the risk assessment process that was carried out prior to section 110 of the Tax Consolidation Acts being introduced and establishing the level of assessment that was carried out regarding the potential use of section 110 and the consequent reduction of revenue to the State; and if he will make a statement on the matter. (Question 25209/16 asked on 16 Sep 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): The securitisation regime was introduced as part of the IFSC regime in 1999. The Section 110 regime in its current form was inserted by Section 48 Finance Act 2003 and applies to all transactions entered into on or after the 6th February 2003.  Section 110 was introduced primarily to facilitate the securitisation of loan books by banks.  Therefore, section 110 was designed to provide a tax neutral vehicle for the securitisation of mortgages. 
In ter...

140. Deputy Stephen S. Donnelly asked the Minister for Finance his views on section 110 status being granted to companies using section 110 status to avoid paying certain taxes on profits made here from managing loan books consisting primarily of loans on properties here; and if he will make a statement on the matter. (Question 23930/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

155. Deputy Michael McGrath asked the Minister for Finance further to the changes to the section 110 tax structure introduced in the Finance Act 2016, if he will state the definition of a bona fide use of the section 110 tax structure in keeping with the original intention behind the establishment of the structure for securitisation purposes; and if he will make a statement on the matter. (Question 37956/17 asked on 11 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): Section 110 is intended to create a tax neutral regime for bona fide securitisation and structured finance purposes.  It has been part of our corporation tax code since 1991, with significant amendments in 2003.  Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets.  The transaction can involve the use of a special purpose securitisation vehicle to facili...

109. Deputy Stephen S. Donnelly asked the Minister for Finance if his Department is investigating whether additional changes are required for the taxation of section 110 companies; and if he will make a statement on the matter. (Question 14776/18 asked on 29 Mar 2018 - Tax Yield)

Minister for Finance (Deputy Paschal Donohoe): Section 110 is intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes. Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets. The transaction can involve the use of a special purpose securitisation vehicle to facilitate the transaction and issue the securities.
Securitisation allows banks to raise capital and...

138. Deputy Stephen S. Donnelly asked the Minister for Finance his views on the fact that several companies that have bought loan books from the State and other sources are using section 110 status to offshore earnings on those loan books, thus avoiding corporation and withholding tax here; and if he will make a statement on the matter. (Question 23928/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

133. Deputy Stephen S. Donnelly asked the Minister for Finance the concerns raised, by any means, with him and or his Department by the Revenue Commissioners, NAMA, IBRC, the Central Bank or any other source, about the potential for lost revenue to the State due to firms purchasing loans books being established as section 110 companies; and if he will make a statement on the matter. (Question 23922/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

137. Deputy Stephen S. Donnelly asked the Minister for Finance the analysis which has been conducted by his Department or any other agency of the State, about the potential lost revenue to the State due to the use of section 110 companies to purchase and or manage loan books sold by NAMA, IBRC or any other source; if he will provide that analysis; and if he will make a statement on the matter. (Question 23927/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

139. Deputy Stephen S. Donnelly asked the Minister for Finance his views on section 110 status being granted to companies whose primary function is to manage loan books consisting primarily of Irish-based property; and if he will make a statement on the matter. (Question 23929/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

132. Deputy Stephen S. Donnelly asked the Minister for Finance the concerns raised, by any means, with him and or his Department by the Revenue Commissioners, NAMA, IBRC, the Central Bank or any other source, about the tax structures of any entities bidding for, or purchasing, loan books sold by NAMA, IBRC, or any other entity; and if he will make a statement on the matter. (Question 23921/16 asked on 21 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process. 
Section 11...

62. Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to a study (details supplied) regarding the use of section 110 tax relief in a location; his plans to address the matter on foot of the study; and if he will make a statement on the matter. (Question 11749/18 asked on 20 Mar 2018 - Tax Reliefs Eligibility)

Minister for Finance (Deputy Paschal Donohoe): Section 110 is intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes.  It has been part of our corporation tax code since 1991, with significant amendments in 2003.  Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets.  The transaction can involve the use of a special purpose securitisation vehicle to facili...

135. Deputy Joan Burton asked the Minister for Finance the steps his Department has taken with the Revenue Commissioners to investigate the use of section 110 tax relief by firms since the introduction of the Finance Bill 2017; and if he will make a statement on the matter. (Question 32371/17 asked on 11 Jul 2017 - Tax Reliefs Application)

Minister for Finance (Deputy Paschal Donohoe): Revenue is statutorily independent in the exercise of its functions in implementing taxation legislation. Accordingly, my Department has no role in investigating compliance with tax legislation. However, Revenue also has a role in providing me and my Department with advice and data on the operation of the taxation system and I am informed by Revenue that, if any policy issues arise in connection with the practical implementation of the legislation o...

90. Deputy Stephen S. Donnelly asked the Minister for Finance if he will consider a higher rate of tax on excessive profits made by vulture funds, for example, where margins are greater than 50%; and if he will make a statement on the matter. (Question 17747/16 asked on 23 Jun 2016 - Corporation Tax Regime)

Minister for Finance (Deputy Michael Noonan): The rates of corporation tax in Ireland are 12.5% for active trading income and 25% for other income.  This is long standing settled policy and the cornerstone of our tax system.  I do not have any plans to amend Ireland’s corportation tax rates or introduce specific higher rates.
I understand that a number of the funds referred to would be ‘qualifying companies’ within the meaning of section 110 Taxes Consolidation Act 1997.  As such the profits of ...

28. Deputy Richard Boyd Barrett asked the Minister for Finance the number of Irish special purpose vehicles, SPVs, registered with the Revenue Commissioners for tax purposes; the number of SPVs that operate in a tax-neutral fashion; and if he will make a statement on the matter. (Question 34054/16 asked on 10 Nov 2016 - Corporation Tax Regime)

Minister for Finance (Deputy Michael Noonan): I am informed by Revenue that they understand that Irish SPVs is a reference to companies that have notified the Revenue Commissioners that they are qualifying companies for the purposes of section 110 of the Taxes Consolidation Act 1997 (section 110 TCA).
As of 31 October 2016, there are approximately 2,480 companies with live tax registrations who had supplied a notification to the Revenue Commissioners that they are a qualifying company for the pu...

183. Deputy Brendan Howlin asked the Minister for Finance if the issue of tax avoidance by so-called vulture funds has been further examined; if such entities are subject to corporation tax in respect of interest earned and other banking activities here; and if he will make a statement on the matter. (Question 13623/18 asked on 27 Mar 2018 - Tax Avoidance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 180 and 183 together.
The term “so-called vulture funds”, while not being consistently defined, is often used in public discourse to refer to variety of different types of investors from banks to private equity to small groups of individual investors.  In recent times, a common feature of these investors is that they have acquired loan books, often but not exclusively, where the loans were in the non-performing categ...

180. Deputy Joan Burton asked the Minister for Finance if he has further examined the issue of tax avoidance by so-called vulture funds; if such entities are subject to corporation tax in respect of interest earned and other banking activities here; and if he will make a statement on the matter. (Question 13667/18 asked on 27 Mar 2018 - Tax Avoidance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 180 and 183 together.
The term “so-called vulture funds”, while not being consistently defined, is often used in public discourse to refer to variety of different types of investors from banks to private equity to small groups of individual investors.  In recent times, a common feature of these investors is that they have acquired loan books, often but not exclusively, where the loans were in the non-performing categ...

29. Deputy Sean Fleming asked the Minister for Finance following the paper issued in December 2014 which sets out best practice guidelines for the valuation of tax expenditures and that the frequency of ex-post evaluations and ex-ante evaluations were identified, if such evaluations were carried out in respect of section 110 and the tax forgone by the State; when these were carried out; the details of the evaluations; and if he will make a statement on the matter. (Question 30039/16 asked on 13 Oct 2016 - Tax Data)

Minister for Finance (Deputy Michael Noonan): As was set out in the 2014 Report on Tax Expenditures, the definition of a tax expenditure in Irish legislation draws on an OECD definition and describes a tax expenditure as a transfer of public resources that is achieved by: (a) Reducing tax obligations with respect to a benchmark tax rather than by direct expenditure; or (b) Provisions of tax legislation that reduce or postpone revenue for a comparatively narrow population of taxpayers relative to...

80. Deputy Alan Kelly asked the Minister for Finance if his attention has been drawn to a study (details supplied) concerning the use of section 110 tax relief in the IFSC; the actions he plans to take on foot of the study; and if he will make a statement on the matter. (Question 13620/18 asked on 27 Mar 2018 - Corporation Tax Regime)

Minister for Finance (Deputy Paschal Donohoe): Section 110 is intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes.  It has been part of our corporation tax code since 1991, with significant amendments in 2003.  Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets.  The transaction can involve the use of a special purpose securitisation vehicle to facili...

41. Deputy Paul Murphy asked the Minister for Finance his views on recent reports (details supplied) of so-called vulture funds being able to pay a small amount of tax; the measures he will take to close tax loopholes; if he will consider an increase in tax or new taxes on these funds; and if he will make a statement on the matter. (Question 1747/17 asked on 17 Jan 2017 - Tax Code)

Minister for Finance Deputy Michael Noonan: I propose to take Questions Nos. 41 and 72 together.
The Finance Act 2016 has introduced provisions to deal with the issues concerning the use of the section 110 regime by international investors for Irish property transactions.
The amendments made in Finance Act 2016 will ensure that tax will be payable by section 110 companies on their profits from Irish property transactions from 6 September 2016 onwards.  The measure has the effect that for the pur...

72. Deputy Eamon Ryan asked the Minister for Finance if his attention has been drawn to a recent documentary on vulture funds (details supplied); and his plans to address the issues raised. (Question 1721/17 asked on 17 Jan 2017 - Tax Code)

Minister for Finance Deputy Michael Noonan: I propose to take Questions Nos. 41 and 72 together.
The Finance Act 2016 has introduced provisions to deal with the issues concerning the use of the section 110 regime by international investors for Irish property transactions.
The amendments made in Finance Act 2016 will ensure that tax will be payable by section 110 companies on their profits from Irish property transactions from 6 September 2016 onwards.  The measure has the effect that for the pur...

30. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide details of meetings held between his Department officials and vulture funds during his terms as Minister for Finance; if he or his officials suggested to these funds that they might benefit from tax loopholes such as section 110 of the Taxes Consolidation Act or any other tax loopholes for the purposes of minimising their tax contributions; and if he will make a statement on the matter. (Question 27595/16 asked on 29 Sep 2016 - Departmental Meetings)

Minister for Finance (Deputy Michael Noonan): While the term vulture fund is not recognised in the Taxes Acts, a small number of structures that have been using section 110 TCA 1997 to avoid paying tax on Irish property transactions have been brought to my attention.  To address these concerns, on 06 September, I published a proposed amendment which tackles any misuse of the current section 110 regime in relation to Irish property. Details may be found in my press release on my Department’s web...

154. Deputy Michael McGrath asked the Minister for Finance further to the changes to the section 110 tax structure introduced in the Finance Act 2016, if property funds that purchase residential and commercial loans from NAMA and banks operating here will no longer be able to avail of this structure in respect of the profits earned on the holding of such loans; and if he will make a statement on the matter. (Question 37955/17 asked on 11 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): Section 22 of the Finance Act 2016 made an amendment to section 110 of the Taxes Consolidation Act 1997 to address the concern that some section 110 companies were being used to minimise the Irish tax exposure on Irish property transactions.  The core effect of the amendment is to remove the possibility for section 110 companies to use what are known as ‘profit participating notes’ to sweep Irish property or distressed debt profits out of the compan...

151. Deputy Róisín Shortall asked the Minister for Finance the regulations regarding the securitisation of home loans; the statutory underpinning of these regulations; the obligation that is required on the part of the lender to inform the borrower of the existence of this securitisation; the extent of this practice in respect of existing mortgages; and if he will make a statement on the matter. (Question 5919/18 asked on 06 Feb 2018 - Banking Sector Regulation)

Minister for Finance (Deputy Paschal Donohoe): I am advised by the Central Bank that securitisation activity, including that of ‘home loans’, is currently subject to a variety of regulatory requirements in various pieces of EU sectoral legislation. The main securitisation-specific requirements generally relate to the prudential treatment of investments in securitisation by certain financial firms and investor transparency requirements that apply to issuers of securitisation. They are contained...

111. Deputy Michael McGrath asked the Minister for Finance the responsibility of the borrower in the event that mortgage interest relief is miscalculated and that tax is left unpaid; the potential repercussions for such lenders; the role of the Central Bank in the calculation of mortgage interest relief; and if he will make a statement on the matter. (Question 14824/18 asked on 29 Mar 2018 - Mortgage Interest Relief Data)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 110 to 112, inclusive, together.
I assume that the Deputy’s questions refer to instances where the lender may have miscalculated and overpaid relief to the mortgage holder and subsequently seeks to recoup the overpayment at a later date. 
I am advised by Revenue that section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilin...

88. Deputy Michael McGrath asked the Minister for Finance if unregulated loan owners are permitted by the Central Bank to have direct contact with the borrower in relation to their loan, for example, to discuss a possible restructuring of the loan; and if he will make a statement on the matter. (Question 8989/18 asked on 21 Feb 2018 - Loan Books Purchasers)

Minister for Finance (Deputy Paschal Donohoe): The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 2015 Act”) was introduced in July 2015 to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. The 2015 Act introduced a new regulatory regime in respect of Credit Servicing Firms, bringing such firms within the Central Bank’s regulatory remit.
Under the 2015 Act, if a firm who bought loans from an original lender is unregula...

112. Deputy Michael McGrath asked the Minister for Finance the regulatory position with regard to the calculation of mortgage interest relief if that calculation is undertaken by the unregulated loan owner and not the credit servicing firm; if the Central Bank has power in this regard; and if he will make a statement on the matter. (Question 14825/18 asked on 29 Mar 2018 - Mortgage Interest Relief Data)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 110 to 112, inclusive, together.
I assume that the Deputy’s questions refer to instances where the lender may have miscalculated and overpaid relief to the mortgage holder and subsequently seeks to recoup the overpayment at a later date. 
I am advised by Revenue that section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilin...

110. Deputy Michael McGrath asked the Minister for Finance the number of cases in which mortgage interest relief has been underpaid and in which the mortgage holder is liable for unpaid tax in each of the years 2013 to 2017 and to date in 2018; the value of taxes unpaid in each of the years; the number and value of cases in which the lenders were licensed credit institutions, retail credit firms and unregulated loan owners; and if he will make a statement on the matter. (Question 14823/18 asked on 29 Mar 2018 - Mortgage Interest Relief Data)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 110 to 112, inclusive, together.
I assume that the Deputy’s questions refer to instances where the lender may have miscalculated and overpaid relief to the mortgage holder and subsequently seeks to recoup the overpayment at a later date. 
I am advised by Revenue that section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilin...

165. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No.193 of 7 February 2017, the details of the use of section 110 companies by the Ireland Strategic Investment Fund, ISIF, including the number of section 110 companies that ISIF was and remains party to; the purpose of setting up these companies; when they were set up; if third parties were involved in these companies; the tax implications of using this tax structure; and if he will make a statement on the matter. (Question 7433/17 asked on 14 Feb 2017 - Ireland Strategic Investment Fund Investments)

Minister for Finance (Deputy Michael Noonan): As the Deputy is aware, all investments made by the Ireland Strategic Investment Fund (ISIF) are assets of the State and any profits generated from ISIF investments are used to fund new investments on behalf of the State in accordance with ISIF’s legislative mandate.  The use of Section 110 companies by Irish Investors, including entities such as ISIF, is not a concern as profits from these vehicles are ultimately taxable in Ireland.
Of its 56 invest...

297. Deputy Clare Daly asked the Minister for Finance the number of times that the section 110 clause has been amended since it was put in place; the degree of lobbying that was involved relating to the last amendment to the scheme; and if he will make a statement on the matter. (Question 25661/16 asked on 16 Sep 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): Section 110 of the Taxes Consolidation Act 1997 has been amended a total of 5 times since implemented in its current form in 2003.
The Finance Act 2005 introduced the option for section 110 companies to make an irrevocable election to continue being taxed on the basis of 2004 Irish GAAP.
In 2008 the assets which a section 110 company could hold/manage were extended to include greenhouse gas emissions allowance, contracts for insurance and contracts f...

18. Deputy Pearse Doherty asked the Minister for Finance the potential he believes exists for the credit union movement to offer competition in areas traditionally dominated by banks such as mortgage lending. (Question 13099/15 asked on 01 Apr 2015 - Credit Unions Services)

Minister for Finance (Deputy Michael Noonan): I have been informed by the Central Bank that credit unions are currently not prohibited from providing mortgages to members. Mortgages are currently subject to the maturity limits contained in section 35(2) of the Credit Union Act, 1997 which sets out the percentage of a credit union’s loan book that can be outstanding for periods exceeding both five and ten years, as well as limits on the maximum outstanding liability to an individual member.
The C...

88. Deputy Clare Daly asked the Minister for Finance if he is satisfied that the Revenue Commissioners have taken all necessary steps to advise all qualifying mortgage holders of their entitlement to tax relief at source; and if he will make a statement on the matter. (Question 16408/17 asked on 04 Apr 2017 - Tax Reliefs Eligibility)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 61 and 88 together.
Revenue administers mortgage interest relief in accordance with Section 244 of the Taxes Consolidation Act 1997. The level of relief applied to each case is based on the applicable ceiling, the rate of relief allowable and the percentage of the loan that qualifies for the relief. I am satisfied that Revenue are administering the relief as intended.
I acknowledge that the various rules and threshold...

61. Deputy Clare Daly asked the Minister for Finance if he is satisfied with the way Revenue Commissioners have applied tax relief at source to mortgages; if he is further satisfied that it has been correctly applied in all cases; and if he will make a statement on the matter. (Question 16407/17 asked on 04 Apr 2017 - Tax Reliefs Eligibility)

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 61 and 88 together.
Revenue administers mortgage interest relief in accordance with Section 244 of the Taxes Consolidation Act 1997. The level of relief applied to each case is based on the applicable ceiling, the rate of relief allowable and the percentage of the loan that qualifies for the relief. I am satisfied that Revenue are administering the relief as intended.
I acknowledge that the various rules and threshold...

171. Deputy Thomas P. Broughan asked the Minister for Finance if he will increase the lending limit of €25,000 by credit unions; if his officials have examined the possibility and implications of this; and if he will make a statement on the matter. (Question 39012/15 asked on 10 Nov 2015 - Credit Unions)

Minister for Finance (Deputy Michael Noonan): My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. 
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions.  Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings o...

215. Deputy Róisín Shortall asked the Minister for Finance regarding special purpose vehicles set up to take advantage of the provisions of section 110 of the Taxes Consolidation Act 1997, as amended, the number of such special purpose vehicles known to the Revenue Commissioners; the number of forms S110 received by the Revenue Commissioners in each of the years 2010 to 2015; the number of such vehicles audited by the Revenue Commissioners in each of those years; the amount of value added tax refund in each of those years; the value of the underlying assets held in these vehicles which have been securitised; the number and grades of staff of the Revenue Commissioners engaged in the monitoring of securitisation, by grade, by proportion of time allocated to the work, by Revenue divisions in which they are located and by the number of meetings held between staff of the Revenue Commissioners and staff in the Financial Regulator’s Office regarding policing compliance levels with Irish law by these companies. (Question 46892/15 asked on 13 Jan 2016 - Tax Data)

Minister for Finance (Deputy Michael Noonan): I am advised by the Revenue Commissioners that:
(1)  The number of Special Purpose Companies set up in accordance with section 110 of the Taxes Consolidation Act 1997 is 2,144.  This excludes companies whose tax registration subsequently ceased as the company has been liquidated.
(2)  The number of notifications received by Revenue  for each of the years 2010 to 2015 is as follows:
 Year Number of Notifications Received 2010 124 2011 155 ...

179. Deputy Peadar Tóibín asked the Minister for Finance the new tax liabilities such as Withholding Tax on the interest paid on individual loans, that Irish businesses will face due to the acquisition of distressed loan books by special purpose vehicles (SPVs); if he has brought these taxes to the attention of business; and if some form of relief will be provided for businesses that are struggling. (Question 6232/16 asked on 06 Apr 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): Section 246 Taxes Consolidation Act 1997 (TCA 1997) imposes on companies generally, and on others who pay interest to persons whose usual place of abode is outside the State, the obligation to deduct tax from payments of annual interest and to account to Revenue for the tax deducted. 
Section 246(3) TCA 1997 provides for several exceptions/exemptions from the obligation to deduct withholding tax. The exemptions/exclusions include:
 - interest paid t...

196. Deputy Pearse Doherty asked the Minister for Finance the process by which companies are designated as section 110 companies; and if he will make a statement on the matter. (Question 22464/16 asked on 19 Jul 2016 - Tax Code)

Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commissioners (Revenue) that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing. In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company. This notification is a self-assessment process.      
 ...

143. Deputy Stephen S. Donnelly asked the Minister for Finance if, in view of the recent sample review of 40 section 110 companies, if any company has subsequently been investigated and-or prosecuted for abuse of the section 110 scheme; and if he will make a statement on the matter. (Question 23968/16 asked on 21 Jul 2016 - Revenue Commissioners Investigations)

Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commissioners that Section 110 companies are assigned to the Financial Services (Banking) District in Revenue’s Large Cases Division.  As for all taxpayers, Section 110 companies are selected for compliance interventions based on the presence of various risk indicators and interventions are conducted in accordance with the “Code of Practice for Revenue Audit and other Compliance Interventions”.  The Financial Services (Ba...

238. Deputy Catherine Murphy asked the Minister for Finance the regulatory differences between REITs, QIFs and QIAIFs; the number of QIAIFs in operation here; the date of commencement of each; the country of origin of each; the value of commercial and residential property held by each QIAIF; the estimated annual rental income collected; the net value of tax collected annually net of withholding tax refunds since their introduction; and if he will make a statement on the matter. (Question 34613/17 asked on 13 Jul 2017 - Financial Instruments)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 238 and 239 together.
Qualifying Investor Funds (“QIF’s”) and Qualifying Investor Alternative Investment Funds (“QIAIF’s”) are forms of investment undertakings and are regulated by the Central Bank.  QIAIFs were introduced in July 2013 to meet the requirements of the Alternative Investment Fund Managers Directive. It is a non UCITS fund. These vehicles are targeted at sophisticated private investors and institution...

133. Deputy Joan Burton asked the Minister for Finance the number of section 110 companies that submitted tax returns for each of the years 2010 to 2016; and if he will make a statement on the matter. (Question 4706/18 asked on 31 Jan 2018 - Corporate Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 to 138, inclusive, together.
In relation to question number 4705 and question Number 4709, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company’s corporation tax registrations had been ceased up until 3 June 2017.  The breakdow...

132. Deputy Joan Burton asked the Minister for Finance the number of companies that have applied for section 110 status in each of the years 2014 to 2017; and if he will make a statement on the matter. (Question 4705/18 asked on 31 Jan 2018 - Corporate Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 to 138, inclusive, together.
In relation to question number 4705 and question Number 4709, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company’s corporation tax registrations had been ceased up until 3 June 2017.  The breakdow...

135. Deputy Joan Burton asked the Minister for Finance the number and value of VAT repayments issued to section 110 companies by the Revenue Commissioners in each of the years 2015, 2016 and 2017; and if he will make a statement on the matter. (Question 4708/18 asked on 31 Jan 2018 - Corporate Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 to 138, inclusive, together.
In relation to question number 4705 and question Number 4709, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company’s corporation tax registrations had been ceased up until 3 June 2017.  The breakdow...

137. Deputy Joan Burton asked the Minister for Finance the estimated assets under management in section 110 companies in 2016 and 2017; and if he will make a statement on the matter. (Question 4710/18 asked on 31 Jan 2018 - Corporate Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 to 138, inclusive, together.
In relation to question number 4705 and question Number 4709, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company’s corporation tax registrations had been ceased up until 3 June 2017.  The breakdow...

138. Deputy Joan Burton asked the Minister for Finance for the number of section 110 companies which owned Irish assets in each of the years 2014, 2015 and 2016; and if he will make a statement on the matter. (Question 4711/18 asked on 31 Jan 2018 - Corporate Tax Compliance)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 to 138, inclusive, together.
In relation to question number 4705 and question Number 4709, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company’s corporation tax registrations had been ceased up until 3 June 2017.  The breakdow...

82. Deputy Sean Fleming asked the Minister for Finance if companies involved in the wind energy industry can avail of the section 110 regime under the Finance Act; and if he will make a statement on the matter. (Question 33941/16 asked on 09 Nov 2016 - Tax Reliefs Availability)

Minister for Finance (Deputy Michael Noonan): I am informed by Revenue that in order to avail of relief under section 110 of the Taxes Consolidation Act 1997, a company must be a qualifying company within the meaning of that section.  
Amongst the conditions of a qualifying company is that it must hold or manage qualifying assets.  
Since the enactment of Finance Act 2003, a qualifying asset is defined as an asset which consists of, or of an interest in, a financial asset, and financial asset is...

110. Deputy Pearse Doherty asked the Minister for Finance when NAMA began to use section 110 status with regard to the tax payment of €158 million by NAMA to the Revenue Commissioners and in view of the prohibition of section 110 status in relation to mortgages related to Irish property; the rationale for using this status; if the organisation used this status in joint enterprise with any private entities; and if he will make a statement on the matter. (Question 6245/17 asked on 08 Feb 2017 - NAMA Operations)

Minister for Finance (Deputy Michael Noonan): NAMA’s tax affairs, and the legal structures it utilises to carry out its mandate, are a matter for NAMA to determine within the perimeter of its mandate and applicable law, including tax law. As we know the establishment of Section 110 companies is completely legal as it is permitted under Irish law and tax codes.  As we also know, this House recently moved to change legislation governing the tax treatment of certain activities carried out within ...