Dáil Éireann Debate, Thursday - 25 September 2014
70. Deputy Joanna Tuffy asked the Minister for Finance his plans to introduce regulations to prevent vulture fund activity here; if he will be seeking capital gains tax or any other revenue from these unregulated operators; and if he will make a statement on the matter. [36338/14]
Amharc ar fhreagraI understand the Deputy's question concerns non-traditional mortgage providers which are unregulated and which have acquired Irish mortgages. I, as Minister for Finance, am committed to bringing forward legislation that protects consumers whose mortgages are sold to unregulated entities. The Government has reiterated this commitment on several occasions. In July and August of this year, my Department ran a public consultation seeking views on its proposed legislation to protect consumers whose loans are sold to unregulated entities.
The Department of Finance received 18 submissions from a range of respondents from the financial services industry, consumer groups, public representatives and individuals and other stakeholders. Officials in my Department are carefully considering the submissions and it is anticipated that legislation will be published by the end of this year.
As regards the taxation of the operators referred to in the question it is not possible to reply comprehensively to this on the basis of the information provided. However, I do note that a business of the provision of mortgages, which can include the acquisition of existing mortgages from other mortgage providers, is a trade for tax purposes, the profits or gains from which are chargeable to tax.
An interest in assets such as mortgages may also be acquired by investors through the process of securitization of such assets. Specific provision is made in the tax code for the taxation of companies engaged in the securitization of assets.
