Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

The amendment applies to accounting periods beginning on or after 5 September 2016. Given that an accounting period for tax purposes generally lasts 12 months, it is unlikely that tax returns for these companies will be filed until some time in late 2017. Therefore, as the information will not be available, it will not be practicable to prepare the report in the timeframe requested. However, officials from the Department will continue to work with the Revenue Commissioners to analyse the use of the section 110 regime and to minimise tax avoidance opportunities.

As part of section 21 of the Bill, the Minister has brought forward the timeframe in which a company that intends to use the section 110 regime must notify the Revenue Commissioners of that intention. It is proposed that a company must inform the Revenue Commissioners in writing of its intention to be a section 110 company within eight weeks of acquiring qualifying assets of €10 million, or where the information requested is not available at that time, without undue delay. Previously, a company elected into the section 110 regime when it filed its first tax return. The amount of detail required to be submitted to the Revenue Commissioners will also be greater.

These administrative changes will ensure that the Revenue Commissioners have greater oversight of the types of company and transaction in the section 110 regime in the future. For this reason, I cannot accept the proposed amendment. However, analysis of the effectiveness of the restriction of the profit participating loans may be performed when the relevant information is available.