In early April the Department of Finance finally issued their terms of reference for reviewing the Irish funds sector (both regulated and unregulated and including section 110 SPVs). The review was originally flagged by the Minister of Finance in his Budget 2023 speech.
The aim of the review is to ensure that the funds sector is resilient, its frameworks are future proofed and supportive of macro-prudential stability, while ensuring international best practice standards continue to be met. With that in mind a multi-disciplinary review team (the Team) has been established which draws on experience from both within and outside the Department of Finance. This Team will engage with industry as well as national and international stakeholders and report its findings by summer 2024.
As part the Funds Section 2030 Report (the Report) the Team has been tasked, on the tax side, and having regard to the Commission on Taxation and Welfare recommendations 6.6 & 6.7, with examining:
the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible (on a net revenue-raising or neutral mandate basis)
the Real Estate Investment Trusts (REITs) the Irish Real Estate Funds (IREFs) regimes and their role in the property sector, including how they support housing policy objectives
the use and scope of the Section 110 regime, both in the context of the property sector and more generally so as to ensure that the regime is fit for purpose and meeting agreed policy objectives
It is envisaged the Team will make recommendations in its Report based on its review of tasked areas and having engaged with stakeholders including by means of a public consultation.
According to the press office release from the Department of Finance the responses to the public consultation will form the basis for a series of targeted engagements by the Team with respondents and others in the third and fourth quarters of 2023.
A&L Goodbody will be preparing a response to the consultation as well as inputting into submissions being made by relevant industry bodies we are represented on. We would be happy to liaise with any clients or contacts who have questions around the consultation or would like assistance in preparing responses. For more information on this please contact James Somerville, Partner or any member of A&L Goodbody’s Tax team. This insight was prepared with assistance by Darragh Noone, Senior Associate.