Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I thank the Deputy. Section 110 of the Taxes Consolidation Act 1997 sets out the taxation regime for securitisation and other structured finance transactions. Under the Taxes Consolidation Act, a qualifying section 110 company is chargeable to tax at 25% but has its profits computed by reference to the rules available to trading companies. As a result, the companies are generally structured in such a way that they are effectively tax-neutral. A company must notify the Office of the Revenue Commissioners in advance of its intention to fall within the scope of section 110. The companies are required to pay their taxes and file their tax returns in the same way as all other companies and are subject to the same monitoring by the Revenue Commissioners, an important point to note.

I understand that officials from the Department of Finance and the Revenue Commissioners are currently examining recent media coverage concerning the use of certain physical vehicles for property investments - indeed, Deputy Donnelly has raised this issue before, as has Deputy Pearse Doherty. Should these investigations uncover tax avoidance schemes or abuses which erode the tax base and cause reputational issues for the State, then appropriate action will be taken and any necessary legislative tax changes that may be required will be put forward for the consideration of the Minister for Finance. Therefore, I can confirm that the Department of Finance and the Revenue Commissioners are examining this issue with a view to taking action.

I would also respond to the Deputy's point in regard to charitable status. Clearly, this issue needs examination by the Charities Regulator. I have been in contact with the Charities Regulator and asked him to examine the particular issues which the Deputy has raised about the granting of charitable status and how it is being used by certain companies at present.

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