Nama to hire tax experts

The controversial National Assets Management Agency (Nama) is hiring a team of international tax advisors to help it buy bad loans off the books of banks.

The experts will assist in planning the complex structure of Nama and the framing of legislation to set it up.

The interim head of Nama, Brendan McDonagh, is due to appear before the Finance and the Public Service Committee in Leinster House on Tuesday alongside the body’s special advisor, Dr Peter Bacon.

The National Treasury Management Agency (NTMA) wants to examine the tax implications in Ireland and foreign jurisdictions of setting up Nama as a state-owned company or a commercial body.

“On the direction of the Minister for Finance, the NTMA is seeking to appoint a tax adviser to provide tax advice in relation to the establishment of Nama and to assist the NTMA in its preparatory work in structuring Nama, including the framing of governing legislation,” said a spokesman.

The NTMA said the tax specialists will be asked to explore tax implications of the participating banks when their loans are transferred to Nama.

The experts will also assess the tax liabilities of buying up risky loans tied to properties located in Ireland or abroad.

Officials also aim to track details of tax exiles and banks based outside the state.

Nama, which was announced in the supplementary Budget in April, will buy up loans that had an original value of €90bn but are worth much less now.

Profits from the eventual sale of the borrowings will be given to the State which may then be used to service the €54bn national debt.

However if Nama makes a loss, the Government will apply a levy on banks to recoup the shortfall.

The Government said it expects to publish the legislation setting up Nama before the Dáil’s summer recess in early July.