Bank of Ireland should pay tax on its profits - Pearse Doherty TD
Sinn Féin Finance spokesperson, Pearse Doherty TD, has said the news today that Bank of Ireland made a profit of €1 billion last year and is now paying out dividends to its shareholders is a slap in the face to Irish Taxpayers who bailed out the bank, particularly as the bank will not pay a penny in tax on its profits until so called carried forward losses are written off.
This is as a result of a government decision to allow the banks to carry forward their losses, for decades in some cases, to write them off against their Corporation Tax liability.
Speaking today Teachta Doherty said:
“Bank of Ireland is in the process of paying out €124 million to its shareholders after recording profits of €1 billion last year.
“At 12.5% the corporation tax due on €1 billion would be €125 million but the government has given the banks a facility to write off their tax liabilities over years.
"In other cases this period is predicted to be as long as twenty to thirty years.
“Therefore, Irish Taxpayers will not see a penny of this money despite having bailed out the bank in the past.
“This is a slap in the face to Irish Taxpayers and shows the foolishness of this policy.
“This is €125 million that could be used for building houses or opening hospital beds. It is money that is much needed in our society but it is foregone due to bad government policy.
“Sinn Féin challenged the government on this issue when it first came to light and I will continue to call for banks to pay tax on their profits.
“The bottom line is that if they are profitable and are paying dividends then they are capable of paying tax and should be doing so.”