Pearse Doherty (Donegal, Sinn Fein)
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203. To ask the Minister for Finance if his attention has been drawn to a tactic used by at least one vulture fund in which it pressures a borrower to appoint an agent to collect all rent to be passed on to the fund but avoid formally appointing a receiver, thereby keeping the tax liabilities upon the borrower; his plans to address such behaviour; and if he will make a statement on the matter. [55015/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that Section 1049 of the Taxes Consolidation Act (TCA) 1997 sets out that a receiver appointed by a court in the State which has the direction and control of property is assessed and charged to income tax or corporation tax, as appropriate, on the property as if the property were not under the direction and control of the court. Such a receiver is answerable for doing all matters required under the Tax Acts for the assessment and payment of income tax or corporation tax, as appropriate.

In other cases, where a receiver has not been appointed by the court, but property is in receivership or a mortgagee has taken possession, section 96(3) of the TCA 1997 provides that tax on net rental income from the property, is chargeable on the mortgagee. This means that in these circumstances the mortgagee, and not the receiver, has to make a return in respect of, and pay the tax liability on, such income.

In each case it is the legal nature of the possession of the property that determines the person liable to tax on any income arising in respect of that property.