Peter Power (Limerick East, Fianna Fail)

I have listened carefully to Deputy Burton's points on tax policy and non-residents. It, however, misses the fundamental point of what is good for the taxpayer and the State and what makes NAMA more effective. If this amendment were accepted it would undermine that important objective.

Whether someone who benefits under NAMA is an Irish citizen or not ought not to be relevant. Take the scenario of several years time from now with NAMA seeking to dispose a significant asset under its control. Say a bid came from someone who was not an Irish citizen or tax resident in Ireland which was far higher than that from an Irish citizen. This amendment, if accepted, would ensure NAMA could not deal with the higher bidder no matter how advantageous that was to NAMA, the Irish taxpayer or the State.

I know the point Deputy Joan Burton makes about our general tax policy, one which she raises consistently to her credit, and the contribution Irish citizens as non-tax residents could make to the Exchequer, particularly in these difficult times. With respect, however, I suggest that is a separate issue to the one we are dealing with in this amendment.

Under Article 12 of the EC Treaty, which relates to the free movement of persons, services and capital, the inclusion of a tax residency requirement might well amount to an unlawful discrimination against persons or undertakings from other EU member states. The Minister has also stated the use of the word "benefit" or "advantage" in this amendment is imprecise with no real meaning in legislative form. It is not clear to what they would refer and it easily could be interpreted as somebody who acquires an asset who is not an Irish citizen or who is not a tax resident in Ireland. They may very well benefit by acquiring an asset from NAMA that might well be to the advantage and benefit of NAMA, the Irish taxpayer and the Irish State.

NAMA, as a commercial entity, will enter into arrangements which are of benefit to it. Whoever the contract is with ought to be immaterial. That is a matter for the tax authorities and a separate issue with which I will deal shortly.

I repeat that were assets to be acquired by non-resident Irish citizens or non-resident non-national citizens, the logical conclusion of Deputy Burton's point is that she would invite them to become either Irish citizens or perhaps to become domiciled in Ireland for tax purposes. That is a logical conclusion as to the intent of her amendment.

In regard to the issue of tax compliance, I take Deputy Burton's point about the requirement for tax clearance certificates. The fact is that is a requirement. There may be some confusion between sections 210 and 201. Section 201 makes clear reference to that fact that "Where NAMA has reason to suspect ... [tax non-compliance, that] NAMA shall report the information that leads it to form that suspicion to---- (i) the Garda Síochána, (ii) the Revenue Commissioners, (iii) the Director of Corporate Enforcement, (iv) the Competition Authority, (v) the Regulatory Authority [or] (vi) any other body responsible for the detection or investigation of criminal offences ..." That is a serious obligation on NAMA in regard to tax matters.

I draw Deputy Bruton's attention to the following section, section 202(2) which states, "Notwithstanding any provision of this Act or any other enactment----- [in Irish legislation] (a) the Revenue Commissioners may, for the purposes of the performance of their functions under Part 42 of the Taxes Consolidation Act ... and any regulations made under that Part, seek from NAMA information in the possession of NAMA, or which NAMA has knowledge of, in relation to a named relevant person, and (b ) where NAMA is in possession of, or has ... information referred to in paragraph (a), NAMA shall provide it to the Revenue Commissioners". Therefore, there is substantial obligations on NAMA in regard to the tax compliance area but I repeat that is a completely separate issue from the central question, which is, how NAMA will achieve the best value for money for the Irish taxpayer arising out of its assets. The question of whether that person is or is not tax resident in Ireland is immaterial to that central point.

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