Pearse Doherty TD says failure to tax banks shows government's true budget priorities
Sinn Féin Finance spokesperson Pearse Doherty TD has said reports that a long overdue government report on the options for taxing the bailed out banks, will recommend no change to their exemption from Corporation Tax shows the government's true budget priorities.
The Donegal TD said:
"I am disappointed but not surprised at the reports of this report recommending no change to the rules allowing the bailed out banks to continue to write off losses against profit for up to two decades.
"Minister Donohue made it clear when he accepted my proposal for this report that his preference was for no substantive change. It is hardly surprising then that this was the conclusion reached.
"This is a question of priorities. We're living through a massive housing crisis and an unprecedented waiting list scandal yet this move, which could bring in over €200m a year, has been rejected.
"Last year these banks posted a profit of €2.6 billion euro and paid zero Corporation Tax. They must be taxed.
"I have proposed limiting the losses that can be carried forward to 25% a year and to cap the period in which this can happen to ten years.
"My research shows that by combining an ability to carry forward 100% of losses for an unlimited time period, Ireland is out of step with international norms.
"I will be pursuing this matter vigorously during the Budget process."
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