I propose to take Questions Nos. 132, 133, and 137 to 140, inclusive, together.
I am informed by Revenue that a company that is, or intends to be, a qualifying company within the meaning of section 110 Taxes Consolidation Act 1997 must notify Revenue in writing. In notifying Revenue of such intent, the company confirms that it complies with the conditions attaching to a qualifying company. This notification is a self-assessment process.
Section 110 TCA 1997 was introduced primarily to facilitate the securitisation of loan books by banks. Therefore, section 110 was designed to provide a tax neutral vehicle for the securitisation of mortgages. Section 110 companies can only hold a number of specific assets and real property is not an asset that they can hold they can only hold loans secured thereon.
As I have previously stated, Revenue constantly review the affairs of taxpayers for both tax evasion and tax avoidance. In particular Revenue uses analytical tools and strategies to detect and combat taxpayers using tax avoidance schemes. They are currently reviewing a small number of structures which may have been put in place for tax avoidance purposes. These structures, including any structures involving Irish property, will be challenged if it is deemed to be appropriate.
Because of the small number of structures under review, Revenue are precluded, by taxpayer confidentiality, from providing any specific details.
I understand that Officials from the Department of Finance and the Revenue Commissioners are currently examining coverage concerning the use of certain vehicles for property investments. Should these investigations uncover tax avoidance schemes or abuse, which erodes the tax base and causes reputational issues for the State, then appropriate action will be taken and any necessary legislative changes that may be required will be put forward for my consideration.