Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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63. To ask the Minister for Finance if he will consider closing down tax loopholes such as section 110 that could be utilised by oligarchs and other financially dubious entities; and if he will make a statement on the matter. [21449/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 110 of the Taxes Consolidation Act 1997 is the section of the corporate tax code which creates a tax neutral regime for bona-fide securitisation and structured finance purposes. Ireland is not unique in having a specific regime for securitisations. The importance of securitisation has been recognised by the European Commission through their work on the Capital Markets Union. This is a European Commission initiative to mobilise capital in Europe, a main objective of which is to build a sustainable securitisation regime across the European Union.

Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets. Securitisation allows banks to raise capital and to share risk and, by providing a repackaging and resale market for corporate debt, it lowers the cost of debt financing. Such financing is useful for the productive economy as it can underpin the supply of finance to industries and companies in Ireland, Europe and further afield.

Reviews undertaken by the Central Bank of Ireland have identified just under 2% of the 3,000 Special Purpose Entities (SPEs) in Ireland as having links to Russia. It is currently estimated that about one in three of those (that is, 17 SPEs, being 0.5% of the total SPE population) is directly linked to individuals in scope of the sanctions regime.

It is important to note that Irish SPEs, including Section 110 vehicles (securitisation companies) are fully in scope of the sanctions regime. There is nothing specific in the Section 110 framework that is of particular relevance to Russian investors or originators and such vehicles are a common feature of financial service centres.

All natural and legal persons in the State are obliged to comply with EU sanctions. A breach of financial sanction is a criminal offence. Accounts, funds or other assets must be frozen without delay so that they cannot be made available, directly or indirectly, to the sanctioned person, entity or body.

The sanctions also include a prohibition on the listing and provision of services on EU trading venues, including Euronext Dublin (formerly the Irish Stock Exchange), in relation to transferable securities of Russian and Belorussian entities which are majority State-owned.

Willie O'Dea (Limerick City, Fianna Fail)
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65. To ask the Minister for Finance if he intends to extend the timeframe for the reduction in VAT on gas and electricity to 9%; and if he will make a statement on the matter. [20565/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy should note that any decision in relation to extending the timeframe for the reduction in VAT on gas and electricity to nine per cent will be made in the context of the Budget and, as part of our normal annual Budget preparations. In this context, various options for tax policy changes will be considered by the Tax Strategy Group prior to Budget 2023.