Michael McGrath (Cork South Central, Fianna Fail)
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245. To ask the Minister for Finance whether stamp duty is payable on the documentation concerning the transfer or purchase of loans from one entity to another; if it is standard practice not to pay stamp duty on the documentation of such transfers; and if he will make a statement on the matter. [10371/17]

Michael McGrath (Cork South Central, Fianna Fail)
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246. To ask the Minister for Finance whether he or the Revenue Commissioners have made an assessment of whether stamp duty is payable on the documentation concerning the transfer or purchase of loans from one entity to another; the conclusions of such assessments; and if he will make a statement on the matter. [10372/17]

Michael McGrath (Cork South Central, Fianna Fail)
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247. To ask the Minister for Finance if any proceedings have been successfully taken by the Revenue Commissioners against entities for failure to pay stamp duty on the documentation concerning the transfer of loans from one entity to another; the number of such cases; the fines involved; the stamp duty unpaid; and if he will make a statement on the matter. [10373/17]

Michael McGrath (Cork South Central, Fianna Fail)
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248. To ask the Minister for Finance if capital gains tax is payable on the gains earned on the sale of loans from one entity to another; if it is standard practice not to pay capital gains tax on such gains; and if he will make a statement on the matter. [10374/17]

Michael McGrath (Cork South Central, Fianna Fail)
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249. To ask the Minister for Finance if he or the Revenue Commissioners have made an assessment of whether capital gains tax is payable on the gains earned from the sale of loans from one entity to another; if so, the conclusions of such assessments; and if he will make a statement on the matter. [10375/17]

Michael McGrath (Cork South Central, Fianna Fail)
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250. To ask the Minister for Finance whether any proceedings have been successfully taken by the Revenue Commissioners against entities for failure to pay capital gains tax on the profit earned on the sale of loans from one entity to another; the number of such cases; the fines involved; the amount of tax unpaid; and if he will make a statement on the matter. [10376/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 245 to 250, inclusive, together.

I am advised by Revenue that, in principle, stamp duty is payable on the documentation concerning the purchase of loans where the standard stamp duty criteria are met, i.e. essentially where:

- the document effecting the transfer is executed in the State (of Ireland);

- the debt is deemed to comprise property (whether real or intangible) situated in the State; or

- the transfer relates to any matter or thing to be done in the State.

However, in practice stamp duty is not generally payable on such documentation as the Stamp Duties Consolidation Act (SDCA) 1999 provides for a range of exemptions from the charge.

Prior to 7 December 2006, stamp duty was chargeable on documents securing loans on property situated in the State and any subsequent transfer of such secured loans. Section 100 of Finance Act 2007 terminated this charge for such 'mortgage' documents executed after this date.

Section 85 of the SDCA 1999 provides for an exemption from stamp duty on:

- the issue of loan capital or any Government loan;

- the transfer of companies' loan capital;

- the issue or transfer of securities issued by a qualifying company within the meaning of section 110 of the Taxes Consolidation Act 1997;

- the issue, transfer or redemption of loan capital issued by a company to raise finance to acquire, develop or lease aircraft.

Section 86 of the SDCA 1999 provides for an exemption on the transfer of loan stock issued by certain State bodies.

Section 90 of the SDCA 1999, in dealing with debt factoring arrangements, provides for an exemption on the transfer of a debt, or part of a debt, where such transfer occurs in the ordinary course of the business of the vendor or the purchaser.

Relief from stamp duty is also provided in relation to transfers of property (whether real or intangible) between associated companies (section 79 SDCA 1999) or in relation to the merger of companies where such transfers are effected for bona fide commercial reasons (section 80 SDCA 1999). Depending on the particular circumstances and the type of company involved, it could happen that some part of the property transferred could relate to loans.

As stamp duty is not generally payable on documentation transferring a loan, the question of "taking proceedings" on this issue does not arise.

I am further advised by Revenue that normally any profit earned from the sale of loans from one entity to another is chargeable to corporation tax as a trading receipt. This is the position as regards the financial services sector in particular. Therefore, in general, the sale of a loan does not constitute a disposal of an asset for capital gains tax (CGT) purposes. The exception to this general rule is where a loan is a debt on a security (section 541(1) Taxes Consolidation Act 1997). In this context, a security includes any loan stock or similar security of any government or of any public authority or of any company, but does not include Irish Government securities.

In the context of the financial services sector the issue of CGT does not arise. Accordingly as CGT is not payable on gains earned from the sale of loans from one entity to another the question of "taking proceedings" on the issue does not arise.