Special purpose vehicles sitting on €324bn, data shows

There were 822 tax-efficient special purpose vehicles (SPVs), used by so-called ‘vulture funds’ and other investment firms, resident in Ireland with combined asset values of €324bn, as of the end of last year, newly published data from the Central Bank shows.

The tally relates solely to SPVs availing of the provisions in Section 110 of the 1997 Taxes Consolidation Act, which has allowed overseas investors to acquire and house distressed loans, and other risky assets worth billions of euro, in Ireland without having to pay tax on profits made from them.

Such entities are designed to be tax-neutral and are set up with Irish directors but no dedicated employees.