Dáil Éireann Debate, Thursday - 20 March 2025
251. Deputy Pearse Doherty asked the Minister for Finance the total number of section 110 applications, that is, unique form S.110 submissions each year since 2016; the total number approved; the number approved in each type of transaction classes; the number approved for dealing with each qualifying asset type, in tabular form; and if he will make a statement on the matter. [13158/25]
View answer264. Deputy Pearse Doherty asked the Minister for Finance the number of section 110 special purpose vehicles in operation each year from 2016 to 2024 and to date in 2025; and if he will make a statement on the matter. [13208/25]
View answerI propose to take Questions Nos. 251 and 264 together.
Section 110 of the Taxes Consolidation Act 1997 sets out a regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes. The section 110 regime enables noteholders to invest through one structured vehicle, without giving rise to an additional layer of tax as compared to a direct investment in the underlying assets.
Securitisation allows banks to raise capital and to share risk and, by providing a repackaging and resale market for corporate debt, it lowers the cost of debt financing. It is accepted that having the option for more diversified sources of financing is good for investment and business. It is also important for financial stability in the economy, as the ability to securitise loan books plays an important role in allowing banks to meet their capital requirement obligations and to continue lending to businesses and individuals.
To come within the section 110 regime, a company must be a “qualifying company” and fulfil a number of conditions, including in relation to the type of assets that the company can hold and in turn the nature of activities that may be undertaken by the company. To be a qualifying company, section 110 TCA 1997 requires (among other things) that:
The company is tax resident in Ireland and carries on the business of holding or managing "qualifying assets". Generally speaking, qualifying assets are assets in respect of which securitisation transactions are undertaken. This includes a broad range of financial and other assets including shares, bonds, derivatives, loans, deposits, commodities, plant and machinery and invoices and other types of receivable.
The value of qualifying assets is at least €10 million at the time they were acquired by the section 110 company.
Apart from the holding or managing of the qualifying assets, the company is not carrying on any other activities.
In order to avail of this regime, a company must, amongst other conditions, notify an 'authorised officer' in Revenue that:
• it is, or intends to be, a 'qualifying company'
and
• it meets the criteria of paragraphs (a) to (e) of the definition of 'qualifying company' Section 110(1) of the TCA, 1997.
I am informed by Revenue that the below table sets out the number of notifications received by the authorised officer that are regarded as meeting the criteria to be a qualifying company in respect of each of the years since 2016 to 2024, and to date in 2025. The table also sets out the number of qualifying companies that are live as at March 2025. The term “live” refers to qualifying companies where a Form S.110W withdrawal notification has not been received, and/or the company’s tax registration is not ceased and/or the company is not dissolved. I am advised by Revenue that a breakdown by transaction class or qualifying asset type is not available.
|
Year |
Number of Notifications Received* |
Live as at March 2025 |
|
2016 |
480 |
319 |
|
2017 |
387 |
296 |
|
2018 |
483 |
414 |
|
2019 |
540 |
503 |
|
2020 |
364 |
348 |
|
2021 |
589 |
579 |
|
2022 |
393 |
389 |
|
2023 |
415 |
412 |
|
2024 |
521 |
521 |
|
2025 to date |
101 |
101 |
|
Cumulative |
4,273 |
3,882 |
