Results 8,821-8,840 of 15,555 for speaker:Eoghan Murphy

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: I do not think the Deputy is correct. Section 110 vehicles are a normal form of securitisation, so why would the banks not use them to securitise loan books?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: First, the use of section 110 in aviation financing is relatively recent. That is not one of the reasons section 110 was created. It was created to allow, for example, a bank to pool its debt and sell it as cash flow to a third party. There are benefits to doing that other than trying to avoid taxation. It would be done to diversify risk, to reinvest or to free up space in terms of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: No, it ring-fences the security completely from-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: It is a way of ring-fencing the security that is the loan book from the entity. If the entity wants to securitise itself off into an special purpose vehicle, SPV, it can do so through a section 110 vehicle.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: Section 110 is just another way of achieving that securitisation, which is done in other jurisdictions, as Deputy Donnelly stated, but it would be wrong to say that the only purpose of using section 110 is to avoid tax. It is tax-neutral. Being tax-neutral is not about tax avoidance, however, it is about choosing neutrality, whether it is an individual investor or-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: We can take it up again on Report Stage, if that is okay. The advice we have been given is that it will not be possible for them to do as the Deputy describes.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: Yes, and that will be tax avoidance. We will get a proper note for the Deputy on it.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: Deputy Donnelly has been engaging with the officials on this and the engagement has been helpful in our trying to get to same place in terms of what the policy is trying to achieve.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: The expectation is that it will not happen because it has not happened in terms of commercial or residential mortgage securitisations. That is why they are being stepped out of this. It is to allow it to remain in place so that the banks can continue that with legitimate securitisation. There does not seem to be a risk that foreign institutional investors would then try to step into that...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: When it comes to the anti-avoidance provisions in the section, I think the policy position is the same in terms of from where the Government and the committee are coming.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: Absolutely not.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: It is specific to the IREF but to come back on it quickly, if they were to do that and to backdate, clearly that would be fraud because they are trying to avoid paying the tax in a demonstrable way because it is linked to the date on which the section 110 amendment was first published, so they could not do that. However, even if they did step into a QIF for an Irish collective asset...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: There is an anti-avoidance measure included. I believe it was explained previously in a technical briefing insofar as last man standing principles are concerned-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: -----but the intention of this amendment is to make sure there will always be a withholding tax for the QIF, the ICAV or whatever it may be if it becomes an IREF. It depends on the point at which that tax potentially will be levied, but there would be a tax. The CGT point is a separate point we might come back to in the IREF section.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: CGT is being introduced for IREFs that dispose of their asset within five years.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: Yes, but it is being introduced for those who dispose of it within five years. Currently, there is no CGT, so the policy decision being taken is to introduce CGT if the asset is disposed of within five years.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: We can go back to this on section 22. The Deputy is talking about a traded company with shareholders, which is separate to the way a fund would operate in terms of how it pays out to investors.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: We will come back to that when we come to section 22 but the Deputy's concern about section 110 companies stepping into something else to try to avoid tax, that would be fraud, and there are strong anti-tax avoidance provisions in section 21 to ensure that cannot happen.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: The work that has been done in this regard, in so far as it has been done in the public domain, from the Government side or the Department side, has been very helpful, particularly the engagements that have been happening on this section of the Finance Bill. I know there have been a number of engagements as well between Deputy Doherty and his officials and officials in the Department of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (Resumed) (15 Nov 2016)

Eoghan Murphy: I think Deputy Doherty's question concerned whether certain companies would be able to get around the mark-to-market provision. Is that the essence of his question?