Business

Buyer of PTSB loans to remain secret - and will avoid tax on profit


Permanent TSB chief executive Jeremy Masding also admitted the structure to facilitate the controversial sale will be tax free - using a so-called Section 110 company.


Use of Section 110 companies by so-called vulture funds had led to the rules being tightened in 2016, but Permanent TSB's retention of a 5pc interest means the Glenbeigh structure will be tax exempt.


Permanent TSB's sale is particularly controversial because many of the 6,272 borrowers affected had engaged with the bank after falling into arrears and agreed restructuring deals.


Under intense questioning from TDs and senators - including Fianna Fáil's Michael McGrath, Sinn Féin's Pearse Doherty and Fine Gael's Kieran O'Donnell - executives explained the anonymous and tax-free structure of the new ownership.


Finance Minister Paschal Donohoe was informed of the planned sale, and consented in writing at the end of November, Mr Masding said.


However, he said Pepper and representatives of the unnamed Glenbeigh backer will hold monthly meetings to consult on the performance of the portfolio.






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