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

I thank the Deputy for acknowledging the work of the officials. On the Department's side, we find those engagements helpful because we are all trying to work in the same direction.

In so far as the amendment is concerned, I am advised by the Revenue Commissioners that a change in law such as this may trigger behavioural changes, meaning that section 110 companies might simply stop acquiring specified mortgages. It is possible that the acquisition and management of distressed Irish debt may in future be carried on within the normal Irish corporation tax regime. Therefore, while the Revenue Commissioners will be in a position to monitor the amount of the profit participating loans restricted pursuant to this amendment, they will not be in a position to say how many of these structures have simply moved into the standard corporation tax regime.

Furthermore, and as the Deputy is aware, there are time delays between the end of a company's accounting period and the filing of its accounts and tax returns with the Revenue Commissioners. Therefore, getting complete data from the Revenue Commissioners may take longer than the timeframe suggested by the Deputy.

Given these constraints, it would not be appropriate to put the preparation of the requested report into legislation. However, the Minister is in agreement with the principle suggested by the Deputy. Analysis will be performed when an adequate amount of appropriate data is available. Furthermore, and on an ongoing basis, officials from the Department of Finance will continue to work with the Revenue Commissioners to analyse the use of the section 110 regime to minimise tax avoidance opportunities. I cannot, therefore, accept the proposed amendment.

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