Seán Fleming (Laois, Fianna Fail)
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254. To ask the Minister for Finance the risk assessment process that was carried out prior to section 110 of the Tax Consolidation Acts being introduced and establishing the level of assessment that was carried out regarding the potential use of section 110 and the consequent reduction of revenue to the State; and if he will make a statement on the matter. [25209/16]

Michael Noonan (Limerick City, Fine Gael)
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The securitisation regime was introduced as part of the IFSC regime in 1999. The Section 110 regime in its current form was inserted by Section 48 Finance Act 2003 and applies to all transactions entered into on or after the 6th February 2003.  Section 110 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. 

In terms of the level of risk assessment undertaken, a Tax Strategy Group paper was prepared for the Tax Strategy Group Meeting in 2002 prior to the insertion of section 110 into the Taxes Consolidation Act 1997 in its current form.

The Tax Strategy Group is an interdepartmental committee chaired by the Department of Finance, with membership comprising senior officials and advisors from the Departments of Finance, Taoiseach, Jobs, Enterprise and Innovation, Social Protection and the Revenue Commissioners. Papers on various options for the Budget and for the medium and longer term are prepared for the Tax Strategy Group. Its terms of reference are as follows:

To examine and develop proposals for measures in the areas of taxation, PRSI and levies, for Budget and Finance Bill within agreed Government parameters for the overall Budget position and in the context of the framework of a medium term and longer term strategy set out in the Government's programme; and

To examine the strategic approach for a general social welfare package and to assess the interaction of income tax/PRSI/levies proposals with social welfare proposals including child income support, and in particular the impact of this interaction on the labour market and income distribution.

It was in this context that the formal introduction of section 110 in its current form would have been discussed and evaluated at that time.