Bank of Ireland should pay tax on its profits - Pearse Doherty TD
Sinn Féin Finance spokesperson, Pearse Doherty TD has said that it is well past time to end the corporation tax break for banks.
Teachta Doherty was speaking today as it was revealed that Bank of Ireland made an underlying profit of €935 million without paying a cent of Corporation Tax to the State last year and is now paying out 16c dividends, up from 11.5c last year.
Teachta Doherty has proposed a 25% cap on the losses that can be carried forward coupled with a ten year time limit.
Speaking today he said:
“Bank of Ireland has today announced a profit of €935m and a large increase in its dividend to be paid out. The bank is obviously more than capable of paying its tax and should be made do so.
“At 12.5% the corporation tax due on €935 billion would be €117 million but the government has given the banks a facility to write off their tax liabilities over years through losses carried forward.
“In other cases this period is predicted to be as long as twenty to thirty years.
“The ordinary taxpayer facing his or her tax bill must look and wonder how the banks get away with it.
“They were bailed out on the double through NAMA and the direct bailout so they are not like other companies which suffered losses.
“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.
“Since last year we have had the government’s report on the issue which showed that any potential reduction in the value of bank shares held by government would be dwarfed by the billions in tax that would be collected over the coming years. I will be raising this issue again with the Minister this week in the Dáil.
“The bottom line is that Bank of Ireland is hugely profitable, are paying bigger dividends, are capable of paying tax and should be doing so.”