Dáil Éireann Debate, Thursday - 6 July 2017
70. Deputy Michael McGrath asked the Minister for Finance the status of investments that the Ireland Strategic Investment Fund is party to that use the section 110 tax structure; his plans to review such investments; and if he will make a statement on the matter. [31971/17]
Amharc ar fhreagraThe NTMA has advised me that a fundamental aspect of the Ireland Strategic Investment Fund’s (the “Fund”) mandate is, as a commercial investor on behalf of the State, to act as a catalyst for co-investment in the Irish economy from private sector capital. Accordingly the Fund structures its investments in a commercial manner and it is essential that it do so if it is to be successful in attracting investment into Ireland.
In that context the Fund is party to six investments which involve Section 110 tax structures. These are fully consistent with the purpose of the Fund and support a range of investments, principally in housing and also in the SME, Agri and Real Estate sectors. The investments were made in the period since 2013 and are active in the market place.
These investments are also consistent with the original purposes of the Section 110 securitisation regime which was introduced to encourage securitisation and other forms of financial activity in Ireland and has helped job creation and investment in the Irish financial services sector for many years.
The changes made to Section 110 in the Finance Act 2016 relate to specific uses of the Section which are not a feature of or relevant to the Fund’s investments. The independent managers of these investments have confirmed that there is no additional tax liability arising from the legislative changes to Section 110 in the Finance Act 2016 for any of the investors in these investments.
