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Corporation Tax

Dáil Éireann Debate, Tuesday - 15 January 2019

Tuesday, 15 January 2019

Questions (236, 237, 238, 239, 240, 241, 242)

Joan Burton

Question:

236. Deputy Joan Burton asked the Minister for Finance the number of new applications to be assessed under section 110 of the Taxes Consolidation Act 1997 received by the Revenue Commissioners in 2017 and 2018. [1487/19]

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Joan Burton

Question:

237. Deputy Joan Burton asked the Minister for Finance the number of companies assessed under section 110 of the Taxes Consolidation Act 1997 in 2016 and 2017; the number that submitted returns; the number which failed to do so; and the number of prosecutions taken by the Revenue Commissioners against those that failed to do so. [1488/19]

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Joan Burton

Question:

238. Deputy Joan Burton asked the Minister for Finance the number of active companies assessed under section 110 of the Taxes Consolidation Act 1997 that have Russian connections. [1489/19]

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Joan Burton

Question:

239. Deputy Joan Burton asked the Minister for Finance the number of active companies assessed under section 110 of the Taxes Consolidation Act 1997 involved in aircraft leasing. [1490/19]

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Joan Burton

Question:

240. Deputy Joan Burton asked the Minister for Finance the number of active companies assessed under section 110 of the Taxes Consolidation Act 1997 which have Chinese connections. [1491/19]

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Joan Burton

Question:

241. Deputy Joan Burton asked the Minister for Finance the number of active companies assessed under section 110 of the Taxes Consolidation Act 1997 which were audited in 2017 and 2018 for reasons other than for VAT. [1492/19]

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Joan Burton

Question:

242. Deputy Joan Burton asked the Minister for Finance the number of active companies assessed under section 110 of the Taxes Consolidation Act 1997 which in 2016 and 2017 held Irish resident assets, whether loans or other securities or physical property. [1493/19]

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Written answers

I propose to take Questions Nos. 236 to 242, inclusive, together.

I am advised by Revenue that the number of notifications received from companies that they are qualifying companies for the purposes of section 110 of the Taxes Consolidation Act 1997 (“TCA”) in each of the years 2017 and 2018 is as follows:

Year

Number of Notifications Received

2017

382

2018

471

Total

853

Information relating to Corporation Tax returns filed by companies who had submitted a notification to Revenue that they were a qualifying company for the purposes of section 110 TCA during 2016 and 2017 (based on records on 10 January 2019) is, as follows:

Corporation Tax returns

2016

2017

No. of companies expected to file returns

2,642

2,966

No. of returns due but not filed as at 10 January 2019

181

480

I am advised that as part of Revenue’s on-going compliance programmes, its Large Corporates Division engages with companies who appear to have an obligation to file a corporation tax return, but who have not done, so to establish the reason for the non-filing of the return.

There have been no prosecutions of section 110 companies for failure to file returns. Revenue’s normal approach is to impose of a surcharge for the late or non-filing of a tax return, including financial statements, under section 1084 TCA 1997 rather than pursuing a criminal prosecution under the provisions of section 1087 of the TCA 1997.

I am advised by Revenue that there is no legal requirement for information regarding “connected parties” or whether the company is engaged in aircraft leasing or any other activity to be included on the corporation tax returns submitted by taxpayers. Therefore, Revenue is not in a position to provide the information requested by the Deputy regarding the number of section 110 companies with Russian or Chinese connections or the number engaged in aircraft leasing.

Revenue undertake compliance interventions in a number of forms, including audits, profile interviews and aspect queries. I am advised by Revenue that one audit was completed in respect of a section 110 company in 2018 for reasons other than VAT. No additional liabilities arose from that audit. The number of compliance interventions of all types (non-VAT related) completed during 2017 and 2018 is as follows:

Compliance Interventions

Nos.

Audit

1

Profile Interview

1

Aspect Query

67

I am advised by Revenue that a section 110 company, for accounting periods ending in 2017, is required to provide information on its corporation tax return on whether the company’s qualifying assets include “specified mortgages” (broadly, mortgages on land in the State) and, where the company holds “specified mortgages”, whether the company carries on a “specified property business” (broadly, a business of managing mortgages on land in the State) within the meaning of section 110(5A) of the Taxes Consolidation Act 1997. The number of companies who confirmed they hold “specified mortgages” and carry out a “specified property business” is, as follows:

Companies

Nos.

Number holding "specified mortgages"

145

Number carrying out a "specified property business”

90

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