Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

The Minister repeated his statements to a committee and in public that he intends to examine this matter. I have been raising the issue of qualified investor funds, as distinct from section 110 organisations, for most of this year. We have found weaknesses in the amendment proposed in respect of qualified investor funds, although I am aware the Minister is open to strengthening it. It is not clear what action will be taken in respect of foreign investment funds. The current position with regard to these funds has been tolerated for far too long. My office has studied the public accounts of many of the funds in question. To give an example, the public accounts of Kennedy Wilson show the company owns property assets in Ireland valued at €1 billion. In the first six months, the fund generated €26 million in rental income, on which it did not pay 1 cent of tax. Other examples include Cedarwood Real Estate, which does not pay any tax on the annual rental income of €2.5 million it receives from the Central Bank. Ireland is out of kilter with international norms in this area. Kennedy Wilson's accounts note the company is exempt from tax in Ireland, whereas it pays tax in Britain and Spain. In other jurisdictions, such funds are subject to a withholding tax. Will the Minister indicate whether this is the line he proposes to adopt?

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