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Cerberus firm's £2,000 tax bill after £1.2bn deal

By Ronald Quinlan

Published 22/08/2016

Jamie Bryson

A company set up by US private equity giant Cerberus to hold and manage Nama's Project Eagle loan book paid taxes of just £1,947 in 2014.

The startling figure is contained in the latest available accounts for Promontoria Eagle, the company set up on behalf of Cerberus by Dublin-based Structured Finance Management Ireland to recover the debt it acquired from Nama for the knockdown price of €1.6bn (£1.2bn).

A further examination of Promontoria Eagle's accounts shows that the company collected repayments of just over £73.18m from the date of its incorporation on April 17, 2014 to December 2014.

The financial statements show net interest income of £49.98m and other operating income of £1.15m. Once other charges, losses and expenses are deducted, profit for the period came to £7,788 before taxation.

The company recorded a profit on its ordinary activities after taxation of £5,841.

It was able to keep the amount it pays in taxes low by availing of the Republic's controversial Section 110 tax status. This allows organisations to minimise certain taxes provided certain conditions are met, and while the practice is legitimate, it has fuelled both public and political disquiet.

Section 110 of the Taxes Consolidation Act 1997 has also been actively promoted by the Irish government and the country's professional service sector.

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