By Simon O’ Connor, 16th November 2015
The Central Bank of Ireland has recently introduced new reporting requirements for Irish companies that are registered with the Irish Revenue Commissioners under section 110 of the Taxes Consolidation Act 1997.
Currently, section 110 companies (often referred to as Financial Vehicle Corporation) is obligated to report on a quarterly basis to the Central bank of Ireland if the company intends to:
- Carry out, or carries out, one or more securitisation transactions and is insulated from the risk of bankruptcy or any other default of the originator of the securitised assets; and
- Issue or issues securities, securitisation fund units, other debt instruments and/or financial derivatives.
The new reporting requirement will ensure that all section 110 companies will be required to submit quarterly reporting obligations unless the company qualifies for exemption. Section 110 companies which have not yet reported to the Central Bank must commence reporting by the 20th of November.
The responsibility is on the company to provide the relevant information to the central bank. If the company chooses to outsource its reporting requirements to an organisation, the central bank must be notified of this appointment immediately.
What is required to be filed in a return to the Central Bank?
Similar to the reporting requirements currently applicable to Financial Vehicle Corporations, the central banks requires a section 110 company to include the following in their reports:
- The company’s total assets and liabilities
- Derivatives entered into or held
- Securitised Loans
- Annual Profit and Loss report ( Only in Q4 return)
Exemption from reporting
The Central Bank has indicated that it will exempt a section 110 company from reporting if:
- The section 110 company is a non-trading entity;
- The section 110 company retains a negligible balance sheet position; and
- The section 110 company has no trading activities planned.
Filing of Returns
The first reporting date is the 20th of November 2015. Section 110 companies will then be required to report on each quarter ending the 31st of December, 31st of March, 30th of June and the 30th of September by the date falling 29 working days after the quarter-end.
Should you wish to register a company in Ireland as a section 110 company, please don’t hesitate to contact us at Company Bureau.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.