Enda Kenny (Mayo, Fine Gael) | Oireachtas source

As I said, I acknowledge the fact the Deputy raised section 110 on a number of occasions, which was a subject of quite intensive discussion and change during the passage of the Finance Act. The second of the changes the Minister brought in related to the Irish fund vehicles. The Finance Act provides for the introduction of a tax regime for Irish real estate funds, or IREFs. That legislation will ensure the Irish tax base is appropriately protected, where Irish funds are used to hold Irish real estate. The key feature, as the Deputy knows, is that an IREF is a fund in which 25% or more of the value of the fund is made up of Irish real estate assets. Any rental income or development profits earned by that IREF will be included in the calculation of its profits.

Capital gains will be included in the calculation of profits unless the asset is held for five years or more, except where the investor can influence or control the IRF. Where an IRF makes a distribution, non-resident investors will be subject to a withholding tax of 20%.

I am not saying that everything has been done here in terms of dealing with the issues that Deputy Donnelly raises. I do not have the details regarding Cerberus, as mentioned by him. Clearly, this is a matter in which the Minister for Finance has taken an interest and he has moved to change the law to make it more open, accountable and transparent where that is necessary. I am sure if further changes have to be made, he would be willing to do that too.

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