Master of the High Court, Edmund Honohon has highlighted the abuse in Ireland of Section 110 Special Purpose Vehicle legislation which benefits vulture funds. Image: Luke Ming Flanagan/Facebook Master of the High Court, Edmund Honohon has highlighted the abuse in Ireland of Section 110 Special Purpose Vehicle legislation which benefits vulture funds.
The Department of Finance is appealing the decision because it denies that there was any sweetheart deal in place. Last year, he warned that thousands of people coming through the courts may lose their homes if stronger legal supports are not put in place to help them when they face off against banks and vulture funds.
Instead, they now go directly to a judge of the High Court. The direction did not state the reason for this decision.The focus of Honohon’s presentation was on the possible abuse in Ireland of Section 110 Special Purpose Vehicle legislation, whereby companies are setting up and registering as charities.Such loopholes have been highlighted before. In 2016, the government vowed to shut down a controversial loophole that allowed vulture funds to cut their tax rates.
In September 2016, the then Finance Minister Michael Noonan put forward an amendment to section 110 of the Finance Act 1997, which took an immediate effect, which prevented vulture funds from being able to use Section 100 vehicles to avoid profits on sales of Irish assets.