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Real Estate Investment Trusts

Dáil Éireann Debate, Tuesday - 5 April 2022

Tuesday, 5 April 2022

Ceisteanna (260, 261, 262)

Cian O'Callaghan

Ceist:

260. Deputy Cian O'Callaghan asked the Minister for Finance the total gross amount of assets held by Irish real estate funds for 2016 to 2021, as reported to the Revenue Commissioners on form IREF - part 3 - schedule of IREF assets; and if he will make a statement on the matter. [18374/22]

Amharc ar fhreagra

Cian O'Callaghan

Ceist:

261. Deputy Cian O'Callaghan asked the Minister for Finance the total amount of revenue for Irish real estate funds as included in their financial statements which are required to be filed with the Revenue Commissions for each accounting period under section 739FA of the Taxes Consolidation Act 1997; and if he will make a statement on the matter. [18375/22]

Amharc ar fhreagra

Cian O'Callaghan

Ceist:

262. Deputy Cian O'Callaghan asked the Minister for Finance the reason that the accounts of Irish real estate funds are not made publicly available; and if he will make a statement on the matter. [18376/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 260 to 262, inclusive, together.

The questions all relate to the Irish Real Estate Fund (‘IREF’) regime.

An IREF is an investment undertaking which derives 25% or more of its value from IREF assets. An investment undertaking may also be regarded as an IREF where it is reasonable to consider that the main purpose or one of the main purposes of the investment undertaking is to acquire IREF assets or to carry on an IREF business.

‘IREF assets’ are defined in section 739K Taxes Consolidation Act 1997 as including one or more of the following:

(a) relevant assets such as land (including buildings) in the State;

(b) shares in a Real Estate Investment Trust;

(c) shares that derive their value or the greater part of their value from relevant assets;

(d) certain specified mortgages; or

(e) units in an IREF.

I am advised by Revenue that the total gross value of IREF assets held by IREFs for the period 2016 – 2020, extracted from the data submitted in the IREF WHT returns, is as detailed below. Complete 2021 data will not be available until after 30 July 2022, that being the latest filing deadline for information relating to accounting periods ending in 2021.

Total Assets as per the IREF WHT Returns Filed

-

2017 1/1/17 – 31/12/17 €M

2018 1/1/18 – 31/12/18 €M

2019 1/1/19 – 31/12/19 €M

2020 1/1/20 – 31/12/20 €M

Gross Assets

7,929

7,501

18,417

20,293

In relation to the total amount of revenue generated by IREFs in the period 2018 to 2020, I am advised by Revenue of the following indicative amounts, extracted from the financial statement filings:

Total Revenue as per the Financial Statements Filed:

-

20181/1/18 – 31/12/18 €

20191/1/19 – 31/12/19 €

20201/1/20 – 31/12/20 €

Total Revenue

825,737,497

997,275,473

1,487,523,446

Revenue advise that the figures provided above for total revenue are for indicative purposes only, they have not been subject to full verification and should therefore be interpreted with caution. The total revenue is gross (i.e. before relevant expenses incurred) and is comprised of income from various sources, the primary source is rental income. The Revenue figure also includes “other income” which in some instances includes development contract income. Further, the above amounts exclude realised and unrealised gains booked as income in the financial statements.

In relation to Dail Question No. 262 (Ref: 18376/22), IREFs are obliged to electronically file financial statements with Revenue for each accounting period (under the Investment Undertaking Electronic Account Filing Requirements Regulations 2018 SI No. 368 of 2018). This information, once provided to Revenue, is taxpayer information which, for confidentiality reasons, cannot be shared by Revenue.

Irish real estate funds, where regulated, are authorised by the Central Bank of Ireland (“Central Bank”) in accordance with the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (“AIFMD”) AIFM Regulations and the Central Bank AIF Rulebook.

Qualified Investor Alternative Investor Funds (“QIAIFs”) can be established as an investment company, an ICAV, a unit trust, a common contractual fund or an investment limited partnership and will be authorised under the domestic legislation pertaining to the selected corporate structure.

The AIF Rulebook details the supervisory requirements applicable to Irish authorised AIFs and includes, inter alia, criteria on the content and frequency of reporting obligations for these funds. Chapter 2 of the AIF Rulebook sets out the requirement for QIAIFs to publish an annual report for the consumption of the unit holders for each financial year. The QIAIF shall prepare and submit to the Central Bank a set of accounts (whether an interim report or an annual report) within 12 months of the launch date and publish it within 2 months if an interim report or 6 months if an annual report. The Qualifying Investor AIF shall, on request, supply unitholders with copies of the annual reports and half-yearly reports (if any) free of charge.

Alternative Investment Fund Managers (“AIFM”) which are authorised by the Central Bank under the AIFM Regulations are required to prepare and submit half-yearly financial and annual audited accounts of the AIFM to the Central Bank. The half-yearly accounts shall be submitted within two months of the half year end and the annual audited accounts within four months of the year end, as per Chapter 3 of the AIF Rulebook.

Question No. 261 answered with Question No. 260.
Question No. 262 answered with Question No. 260.
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