Dáil Éireann Debate, Tuesday - 22 March 2016
80. Deputy Pearse Doherty asked the Minister for Finance his plans to ensure vulture funds operating in the residential and commercial property sector are paying a level of tax commensurate with their profits; and if he will make a statement on the matter. [5132/16]
Amharc ar fhreagraI understand that a number of the funds referred to operating in the residential and commercial property sector are 'qualifying companies' within the meaning of section 110 Taxes Consolidation Act 1997. As such the profits of the qualifying company are chargeable to tax at 25% (under Schedule D, Case III) but are computed by reference to the rules applicable to trading companies (i.e. in accordance with the provisions of Schedule D, Case I).
A company must notify the Office of the Revenue Commissioners in advance of its intention to fall within the scope of section 110 Taxes Consolidation Act 1997. The companies are required to pay their taxes and file their tax returns in the same way as all other companies and are subject to the same monitoring by the Revenue Commissioners. The Financial Services Unit in Revenue's Large Cases Division is responsible for monitoring/auditing section 110 companies.
