Tax Code

Dáil Éireann Debate, Thursday - 14 April 2016

Thursday, 14 April 2016

Questions (116)

Peadar Tóibín

Question:

116. Deputy Peadar Tóibín asked the Minister for Finance to ensure that, in the case of Irish small and medium-sized enterprises whose loans have been sold to a foreign vulture fund, it is the vulture fund which is required to withhold any withholding tax on interest payments made by the small and medium-sized enterprises and remit the withholding tax to the Revenue Commissioners, in contrast to the current position where the onus falls on the borrower to withhold the interest (details supplied); and if he will make a statement on the matter. [6871/16]

Written answers

Minister for Finance

I have been informed by the Revenue Commissioners that they will be issuing guidance on this matter very shortly.  The guidance will encourage Irish small and medium-sized enterprises who find themselves in this position to contact Revenue directly to avail of an exemption from operating withholding tax, where a bank has assigned or novated a loan to a non-banking entity.  In order for the SME to avail of this exemption an application will need to be made to Revenue and full facts regarding the loan must be disclosed in writing.