Saturday 10 December 2016

Cerberus' Irish subsidiary pays €1,900 in tax on €77m profit - report

Published 29/11/2016 | 09:44

Project Eagle was the £1.3bn Northern Ireland loan portfolio from Nama
Project Eagle was the £1.3bn Northern Ireland loan portfolio from Nama

The Irish subsidiary of US vulture fund Cerberus paid under €1,900 in tax on the €77m profit it made here last year, it has been reported.

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According to a report in The Irish Times, the firm that controversially purchased Nama's Northern Ireland loans, known as Project Eagle, paid £1,598 (€1,870) in tax here last year.

Promontoria Eagle, Cerberus' Irish arm, earned a profit of £65.9m (€77m) in 2015 and minimised its tax bill thanks to the way it's structured. The company is devised in such a way as to take advantage of a tax break, titled section 110 of the Taxes Consolidation Act 1997.

The tax break allows companies to write off the loans that are used to buy the assets against their own tax bills.

The deal has allowed Cerberus' Irish division to write off both loan and interest payments off the company's profits.

The sale of the Project Eagle loans to Cerberus could have lost the taxpayer up to €200m, according to a report from the Comptroller & Auditor General Séamus McCarthy.

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