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

The Deputy might clarify when he responds the source of the figure of €8 billion, please, so that we are clear on the particular point he is making.

I am advised by Revenue that in 2022 it commenced a compliance-based review of the Irish real estate fund, IREF, sector with one of its aims being to identify the reasons for the reduction in the amount of IREF withholding tax paid in 2021 relative to 2020, in each case arising from prior year taxable events. This gross payment data is published as part of Revenue’s annual corporation tax payments and returns publication.

I am further advised by Revenue that a large factor in the apparent reduction in tax collected in 2021 over tax collected in 2020 was the length of time it took for refund claims in respect of prior years to be received. Revenue also advise that some IREFs reported that the Covid-19 pandemic impacted the value of investment property, meaning they recorded losses in accounting periods ended in 2020.

I welcomed a recommendation of the Commission on Taxation and Welfare 2022 to undertake a review of the IREF regime. On 22 October 2024, my predecessor as Minister, Deputy Chambers, published the funds sector report “A Framework for Open, Resilient & Developing Markets”.

On IREFs, the funds review team recommended consideration of a public consultation to set out potential options for an entity-level tax for IREFs. Officials in my Department are reviewing this recommendation, as part of a wider consideration of the funds review report which I, in turn, will consider in due course.

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