Pearse Doherty (Donegal, Sinn Fein)
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154. To ask the Minister for Finance if he will confirm the exemption from dividend withholding tax for European Economic Area, EEA, regulated funds regarding dividends paid by Irish real estate funds, IREFs; if his attention has been drawn to the large number of EEA funds that hold property here through IREFs, particularly British and German funds; the number of EEA funds with shareholding in IREFs that are exempt from dividend withholding tax; and if he will make a statement on the matter. [29676/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that only certain Irish and EEA funds (including both pension funds and investment funds) may receive distributions from IREFs without the operation of IREF withholding tax.

A fund, whether Irish or EEA, can receive distributions gross provided:

1. The fund is not a fund which is under the control of its investors or anyone connected with its investors, and which was put in place to avoid a charge to IREF withholding tax arising.  That is, investors who would otherwise be subject to IREF withholding tax cannot avoid that charge by interposing an Irish or EEA fund vehicle.

2. The fund, or anyone connected with it, does not control or influence the way the IREF carries on its business.  Where a widely held fund, such as a large occupational pension fund, invests in Irish property through an IREF, then IREF withholding tax will not arise. 

Widely held collective investment vehicles operate tax on distributions out to their investors.  This ensures that a double layer of taxation does not arise.

I am further advised by Revenue that the first return of IREF withholding tax will be due on 30 June 2018.  Until that return is filed and analysed, Revenue will not be in a position to identify the number and type of investors who have claimed an exemption from IREF withholding tax.