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Time to end bank’s sweetheart tax deals – Doherty

27 March, 2018 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has again challenged Minister for Finance Paschal Donohoe on his refusal to cap the amount banks can carry forward in histrionic losses reducing their Corporation Tax liability to zero.

Deputy Doherty said:

“The Minister needs to look at what Britain has done to limit the losses its banks can carry forward by putting a cap of 25% on what can be written off in any year. This would result in AIB, Bank of Ireland, and Permanent TSB who between them made a profit of €2.7bn paying tax.

“When you look at the rules across the OECD in this area, it is hard to conclude that Ireland is an outlier in its policy of having limitless losses that can be carried forward and no time limit. Many countries in the EU; Austria, Britain, France, Germany, Hungary, Italy, Poland, Portugal, Slovakia, Spain and Slovenia, apply a cap.

“The fact that the 50% cap that was in place for the bailed out banks was actually removed by Fine Gael in 2014 amounts to a sweetheart deal for these banks.

“The banks harp on about returning to normal. This must include their tax status.

“Last year, the Minister committed to me to produce a report on this issue by June of this year.  His demeanour and refusal to accept the unfairness of the banks enjoying tax free status suggests that report will not challenge the sweetheart status the banks enjoy.” 

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