Financial Services Ireland

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Tax Alert: Section 110 entities (Nov 2016)

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Major change to the notification requirements for S110 entities


The recently published Finance Bill 2016 announced changes to the way in which Section 110 securitisation entities are required to notify Irish Revenue of their intention to be a qualifying Section 110 entity.

The Select Committee Amendments to the Finance Bill which were issued on 4 November, provide further guidance as to the new deadline for filing the notification with Irish Revenue.

The notification must be filed no later than 8 weeks from:

  • The date upon which the Section 110 entity first acquires or first holds qualifying assets or where it enters into a legally enforceable arrangement with another person and the arrangement itself constitutes a qualifying asset; or
  • 1 January 2017, in the case of Section 110 entities that are already carrying out qualifying activities but have not yet filed the Form 110 with Irish Revenue. For example, if a Section 110 entity with a period end of 31 December 2016 acquired its first qualifying financial asset in 2016, under the old rules it would not have been obliged to file its Form 110 until 23 September 2017. Therefore, this new rule accelerates the filing process.

We understand that this new procedure is driven by a focus of the Irish Revenue to develop further oversight on the types of transactions being undertaken by Section 110 entities.

Traditionally, such notifications were made by filing a Form 110 on or before the deadline for the filing of the Section 110 entity’s first Irish corporation tax return i.e. within 9 months of the period end and no later than 23rd day of the month.

New Notification Procedure

Information to be provided as part of the notification procedure

Section 110 entities are now also required to supply additional information concerning:

  • The type of transaction
  • Assets acquired
  • ‘Originator’
  • ‘Intra-group transactions’
  • ‘Connected parties’

What should you do now?

  • Examine Section 110 entities that were established in 2016 to determine whether the new notification rules apply.
  • A new Form 110 has not yet been issued by Irish Revenue. The existing Form 110 may still be used for notifications to be filed prior to 1 January 2017. The new requirements apply for any filings on or after 1 January 2017.
  • Control processes should be implemented to ensure all new Section 110 entities satisfy the new reporting requirements.

Thought Leaders

Ramakrishnan Ramanathan

FSO Ireland Structured Finance, Sector Leader

Anne Tobin

Director, Business Tax Advisory