Seanad debates

Wednesday, 11 November 2009

National Asset Management Agency Bill 2009: Committee Stage (Resumed)

 

1:00 pm

Photo of Joe O'TooleJoe O'Toole (Independent)

No tax is paid on the money which the SPV pays to NAMA. NAMA has a special purpose vehicle which operates as a separate legal entity at arm's length from NAMA itself. For example, NAMA might decide there is a certain element of rental income which it will securitise and put a price on, and that is made available in a special purpose vehicle. The reasons it is done this way is so that the ordinary investors can put money into it without fear of being dragged down by anything that might happen to NAMA. Those investors will pay tax in the normal way. The money they pay to NAMA will come into NAMA, and it would be ridiculous to suggest that the Government would tax itself to collect money that will go to it in any case.

The important point the Minister should reassure us about is that the investors in the special purpose vehicle would be like investors in anything else, namely, they would have the normal levels of risk and taxation. Let us be clear about this. What they are doing is taking some of the impaired assets from NAMA and we are getting rid of them. This is part of the process of which we are in favour. However, nobody will get away tax free. The only one that will not pay is the State, for the simple reason that the tax would come to it anyway. No individuals will get away tax free on this.

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