Minimum effective tax rate needed as AIB to pay none for 30 years

Labour spokesperson on Finance, Joan Burton TD has repeated her called for a minimum effective corporation tax rate, as it was revealed that AIB had informed potential investors that it will pay no corporate tax for up to 30 years.

Deputy Burton said:

“The largest bank in Ireland, which cost us €20.8 billion to bail out has been informing potential investors that it will pay no corporation tax for up to 30 years.

“Since the last Budget I have been calling for the implementation of a minimum effective corporate tax rate to ensure that profitable companies in Ireland cannot use accounting tricks and tax losses from the property crash to avoid paying their fair share.

“AIB has a deferred tax asset of €3 billion on it’s books that will be used to ensure it does not have to pay any corporation tax for decades to come.

“Those losses were paid for by the Irish people. It is not acceptable that when the bank is sold off that private investors will see the benefit of those gains.

“I have repeatedly been seeking information from the Department of Finance on the extent and value of unused deferred tax assets from losses racked up in the recession.

“The Department of Finance have refused to cost the yield from a minimum effective corporate tax rate, but we were able to introduce a similar income tax measure for high earners so it is not impossible to do the same for companies.

“At a minimum the Fine Gael Government should at least examine this idea, and commit to retaining and increasing the bank levy in the years ahead to ensure AIB pays it’s fair share.”