Dáil Éireann Debate, Wednesday - 12 December 2018
75. Deputy Richard Boyd Barrett asked the Minister for Finance further to a freedom of information request, the reason onlenders of SBCI moneys are not required to obtain a copy of current tax clearance certificates from their respective customers leaving the State exposed to tax losses; and if he will make a statement on the matter. [52390/18]
Amharc ar fhreagraThe purpose of the SBCI is to deliver effective financial supports to Irish SMEs. The SBCI does not provide funding directly to small businesses, rather it operates an on-lending model which involves working through partner finance providers, known as on-lenders. The SBCI currently has three bank and three non-bank on-lending partners.
I take it that the Deputy is asking whether the SBCI makes it a requirement for its on-lenders to seek a tax clearance certificate from the SME borrowers that receive SBCI loans. I have been advised by the SBCI that seeking tax clearance certificates from borrowers is a matter for the on-lenders. They provide lending into SMEs in accordance with their normal credit policies and procedures.
Due to its on-lending model, the SBCI’s direct relationship is with its on-lending partners. The SBCI enters into facility agreements with its on-lenders and these agreements set out the obligations in relation to the funding provided by the SBCI, including terms and conditions to protect taxpayers from potential losses.
