Bank tax write off shows need for Commission on Taxation

Commenting on the upcoming PAC report that will address bank losses, Labour spokesperson on Finance Joan Burton has welcomed the conversion of Fianna Fáil to the cause of increased taxes on profitable banks, and called on the Government to established a Standing Commission on Taxation.

Deputy Burton said:

“As recently as the last budget I have called for a minimum effective tax rate to be payable by all companies making significant profits in Ireland so that the use of all tax credits, losses and other loopholes are restricted beyond a certain point.

“This is notwithstanding the accumulated tax losses in the banks. Thats why the bank levy was introduced to ensure that profitable banks pay a fair share of tax revenue but now that the banks are making multi-million to billion euro profits this is no longer adequate. That is why Labour also called last October for the rate of the bank levy to be doubled.

“There are a number of ways to ensure that the banks pay additional taxes without reducing their value. Hence we need minimum effective tax rates and a time line of 5 to 10 years to run down tax losses.

“Dáil questions I have tabled show deferred tax losses are signicant assets on bank balance sheets.

“Our proposal for a Standing Commission on Tax would provide research and importantly ongoing data and figures ensuring we are aware of the the amounts involved and the latest practises for avoiding tax.

“Such a Commission would review loopholes as they arise in the tax structure, to ensure all companies and residents make an appropriate contribution.”