Pearse Doherty (Donegal, Sinn Fein)
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292. To ask the Minister for Finance further to Parliamentary Question No. 137 of 28 May 2025, to clarify if a section 110 special purpose vehicle that has only beneficial ownership of the loan related to mortgages but the ownership of the legal title is a third party other than the mortgage originator is subject to taxation under subsection (5A) on section 110; and if he will make a statement on the matter. [31567/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Further to previous responses to Parliamentary Questions No. 53 of 14 May, No. 36 of 21 May, and No. 137 of 28 May, Subsection (5A) of section 110 requires that the part of a qualifying company's business that relates to its specified property business, including specified mortgages, is treated as a separate business from any other business the company may carry on and, with certain exceptions, no interest above an arm's length rate is deductible in computing the taxable profits of that part of the business.

In circumstances where a qualifying company is the beneficial owner of specified mortgages and legal title is held by a third party, subsection (5A) of section 110 still applies to the qualifying company as it is the beneficial owner of the specified mortgages and any interest arising in respect of them.