Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 52:

In page 71, line 1, after “ ‘arrangements’ ” to insert “, other than in paragraph (b)(ii) of the definition in this subsection of ‘qualifying subsidiary’,”.

Amendments Nos. 52 to 68, inclusive, relate to section 39 which introduced a new section 76E into the Taxes Consolidation Act 1997. The section allows a qualifying financing company, or QFC, to obtain a deduction for interest paid once certain criteria are met.

Following publication of the Bill as initiated, stakeholders identified a number of intra-group lending structures unable to avail of the new relieving provisions. Officials have reviewed these structures and concluded that the amendment of section 76E to allow for relief in the following additional scenarios are unlikely to pose a risk to the Exchequer, that is, allowing a QFC to issue relevant loans to qualifying indirectly held subsidiaries in addition to qualifying directly held subsidiaries, and allowing a QFC to issue loans to subsidiaries resident in countries with which Ireland has a double taxation agreement in addition to EU and EEA states. As the relief is now being extended to scenarios where the QFC on-lends to an indirect subsidiary, additional anti-avoidance rules are also required.

A minor technical amendment is being made to fix an incorrect cross-reference where section 70(2) of the TCA was referred to instead of section 70(3).

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