Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

132. To ask the Minister for Finance the concerns raised, by any means, with him and or his Department by the Revenue Commissioners, NAMA, IBRC, the Central Bank or any other source, about the tax structures of any entities bidding for, or purchasing, loan books sold by NAMA, IBRC, or any other entity; and if he will make a statement on the matter. [23921/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

133. To ask the Minister for Finance the concerns raised, by any means, with him and or his Department by the Revenue Commissioners, NAMA, IBRC, the Central Bank or any other source, about the potential for lost revenue to the State due to firms purchasing loans books being established as section 110 companies; and if he will make a statement on the matter. [23922/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

137. To ask the Minister for Finance the analysis which has been conducted by his Department or any other agency of the State, about the potential lost revenue to the State due to the use of section 110 companies to purchase and or manage loan books sold by NAMA, IBRC or any other source; if he will provide that analysis; and if he will make a statement on the matter. [23927/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

138. To ask the Minister for Finance his views on the fact that several companies that have bought loan books from the State and other sources are using section 110 status to offshore earnings on those loan books, thus avoiding corporation and withholding tax here; and if he will make a statement on the matter. [23928/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

139. To ask the Minister for Finance his views on section 110 status being granted to companies whose primary function is to manage loan books consisting primarily of Irish-based property; and if he will make a statement on the matter. [23929/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

140. To ask the Minister for Finance his views on section 110 status being granted to companies using section 110 status to avoid paying certain taxes on profits made here from managing loan books consisting primarily of loans on properties here; and if he will make a statement on the matter. [23930/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.

I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing.  In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company.  This notification is a self-assessment process.

Section 110 TCA 1997 was introduced primarily to facilitate the securitisation of loan books by banks.  Therefore, section 110 was designed to provide a tax neutral vehicle for the securitisation of mortgages.  Section 110 companies can only hold a number of specific assets and real property is not an asset that they can hold they can only hold loans secured thereon.

As I have previously stated, Revenue constantly review the affairs of taxpayers for both tax evasion and tax avoidance.  In particular Revenue uses analytical tools and strategies to detect and combat taxpayers using tax avoidance schemes.   They are currently reviewing a small number of structures which may have been put in place for tax avoidance purposes.  These structures, including any structures involving Irish property, will be challenged if it is deemed to be appropriate. 

Because of the small number of structures under review, Revenue are precluded, by taxpayer confidentiality, from providing any specific details.

I understand that Officials from the Department of Finance and the Revenue Commissioners are currently examining coverage concerning the use of certain vehicles for property investments. Should these investigations uncover tax avoidance schemes or abuse, which erodes the tax base and causes reputational issues for the State, then appropriate action will be taken and any necessary legislative changes that may be required will be put forward for my consideration.

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

134. To ask the Minister for Finance his views about the bidding processes for loan books being sold by IBRC, NAMA or any other source, that any bidders were structured as section 110 companies; and if he will make a statement on the matter. [23923/16]

Stephen Donnelly (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

136. To ask the Minister for Finance the list of the purchasers of loan books from NAMA, IBRC, or any other source; to indicate which of these entities had section 110 status; the nature of the loan book, the sales value in each case, if available; and if he will make a statement on the matter. [23926/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 134 and 136 together.

NAMA's market activities mean that it competes on an ongoing basis with banks and other financial institutions to attract investors and competitive bids for its loans and for the assets securing them. In that context, and in line with its competitors, I am advised that NAMA does not identify the counterparties with which it transacts, as to do so would discourage potential buyers from participating in NAMA loan and other asset sales and would place NAMA and by extension Irish taxpayers at a competitive disadvantage relative to its competitors.  This commercial imperative is recognised in FOI legislation: Schedule 1 of the FOI ACT 2014 excludes from the scope of FOI "purchasers or potential purchasers of any asset or loan or of any asset securing loans held or managed" by NAMA and a number of other bodies.

Additionally, the Special Liquidators of IBRC devised and ran a competitive sales process, following the receipt of independent advice, for all loan assets of IBRC which they have sold. I had no role in this process and would therefore be unaware of potential bidders during the sales process or how these potential bidders were structured as a company.