01/03/2019

Corporate Tax Break For Banks 'Absurd'

Corporate tax break for banks in Ireland have been described as "absurd" and must come to an end, Sinn Féin Finance spokesperson Pearse Doherty has said.

Deputy Doherty raised the issue with Minister Donohue in the Dáil yesterday before today's announcement (01 March) of AIB's profits.

Deputy Doherty has proposed a 25% cap on the losses that can be carried forward coupled with a ten year time limit.

He said: "AIB has today announced a profit of €1.25bn. The bank is more than capable of paying its tax and should be made do so. This tax break means workers and others are bearing the tax burden of the bank through taxes and worse services.

"The Minister for Finance tries to paint this as standard tax law. In fact, it is anything but standard. Fine Gael changed the law in 2014 so that the restriction would be lifted.

"The intention of the NAMA legislation was that this type of carrying forward of losses would be limited.

"Ireland is almost unique in having neither a time limit nor a cap on losses that can be carried forward to write off against profits. I would argue we are the country where such restrictions are most justified.

"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.

"The bottom line is that three bailed out banks have now announced profit of €2.5bn between them but are exempt from Corporation Tax. That situation must end."


Related Irish News Stories
Click here for the latest headlines.

06 September 2019
Govt Must Publish Full Estimate Of Brexit Job Losses
The government must immediately publish their full estimates of potential job losses across the economy, and to outline their plan to preserve jobs in the event of a no-deal Brexit, Labour leader, Brendan Howlin has said. Mr Howlin made the call in response to the estimate that 10,000 jobs could be lost in the tourism and hospitality industries.
10 September 2019
Govt Accused Of Failing Consumers With Inaction On Insurance Industry
Ireland's insurance industry 'lacks transparency, accountability and regulation' and it is time for 'drastic action', Sinn Féin Finance spokesperson Pearse Doherty has said. Accusing the government of failing consumers and businesses, Deputy Doherty said: "Consumers and businesses are seeing their insurance premiums rise.
09 September 2019
Homelessness Crisis 'Most Glaring Example Of Inequality In Ireland'
The housing and homelessness crisis has been described as the "most glaring example of inequality in Ireland today". Labour Housing spokesperson Jan O'Sullivan accused the Government of failing to deliver adequate affordable and social housing. She said that a new approach to the problem is needed.
05 September 2019
Getting Your Business Brexit Ready
The government has launched a new campaign to highlight practical steps Irish businesses must take to prepare for the UK's departure from the EU.
01 August 2019
89 Deaths On Irish Roads So Far This Year
Eighty-nine people have died on Irish roads so far in 2019, a 7% increase from last year, a new report has revealed. The provisional review conducted by the Road Safety Authority (RSA) and An Garda Síochána also showed 80 collisions were recorded from 01 January to 28 July.