Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 35:

In page 32, line 11, to delete “interest paid” and substitute “interest or other distribution payable”.

Section 19 amends section 110 of the Taxes Consolidation Act 1997, which deals with the taxation of special purpose structured finance companies. The current regime was set up to create a tax neutral regime for securitisation and structured finance purposes.

Last year's Finance Act introduced restrictions on the ability of 'qualifying companies', within the meaning of section 110, to remove capital profits arising from Irish property from the Irish tax net.

Revenue has kept the use of section 110 structures under review and has identified a gap in the Finance Act 2016 amendments, which was not identified at the time. That gap involves the use of shares which derive their value from Irish land.

This Report Stage amendment is technical in nature. It corrects the drafting to ensure that the Finance Bill amendment to section 110 applies only to interest which becomes payable on or after 19 October 2017. This ensures that there is no retrospective impact on interest which is paid on or after 19 October 2017 but which was accrued in previous years. Without this change, the provision would affect the tax liability of a company for those previous years which would be retrospective legislation.

I commend this amendment to the House.

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