Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I note that one of exceptions to the interest limitation rule as set out in section 31 is a stand-alone company, that is, a company that has no associated enterprises or permanent establishments. I would like the Minister to clarify if a company using the orphan structure would meet this exemption criterion? I am sure he was expecting that question. One of the things that professional service companies like to talk about is the orphan structure because it is considered a stand-alone company even though, effectively, it will be under the control of another company or companies. I ask the Minister to clarify if this structure would meet the definition of a stand-alone company.

Another exception to the interest limitation rule as set out in section 31 is a long-term public infrastructure project, that is, a project to provide, upgrade, operate or maintain a large-scale asset in the general public interest. Would a public private partnership engaged in such public infrastructure projects meet this criterion?

A further exception to the interest limitations rule as set out in section 31 is interest on legacy debt, that is, debt, the terms of which were agreed before the terms of the interest limitation rules were agreed on 17 June 2016. For example, would profit participating notes issued before the date of 17 June 2016 meet this criterion and how would instruments such as perpetual bonds that have no maturity date and are not redeemable, but pay a steady stream of interest forever, meet the criteria of this exemption?

It is also stated that where the Irish taxpayer is part of a consolidated worldwide group for accounting purposes, the indebtedness of the overall group at worldwide level may be considered for the purposes of providing additional relief, and that if the Irish taxpayer has debtor interest ratios lower than the worldwide group, its interest expense may not be restricted or a lower restriction may apply under the ILR. I would welcome a working example of what that would look like in practice. I am aware that these are quite technical questions. It is interesting to tease out these issues.