Nama uses tax returns to check assets

NAMA has altered its management structure — in line with recent recommendations — and is seeking tax returns of smaller developers, to gauge the full extent of the value of their assets.

The agency has, for the past year or so, regularly been asking higher profile developers for their tax payment details.

Under law, NAMA cannot formally request such information directly from Revenue; but it is now expanding that search to around 180 lower-value developers on its list of debtors.

Last month, NAMA announced — via a public advertisement — that it was looking to hire private detectives to check whether or not certain debtors are withholding valuable assets. The results of that tender process are expected sometime next month.

Property developers are obliged to inform NAMA of their assets when submitting business plans to the agency; and, as a result, are sometimes asked to provide tax returns.

However, according to a report by RTÉ, some developers have refused to submit tax returns.

A NAMA spokesperson said: “Failure to accede to a request for this information, while not conclusive, might cause the agency to seek further information about a debtor’s financial position — including, perhaps, the use of credit verification services — in order that the agency can satisfy itself on the completeness of the information provided.”

Meanwhile, the agency has changed part of its structure, in that its lending and corporate finance teams will now report to Michael Moriarty, NAMA’s deputy head of portfolio management; rather than to the head of lending. The current head of lending, Graham Emmett is leaving the agency and will not be replaced.