Sweetheart Deal with Banks Results in €117m Loss to Exchequer

6th September, 2018

Dublin South West TD Seán Crowe has said a sweetheart deal with the Banks has resulted in 117 million euro losses to the Exchequer and has called on the government to end the corporation tax holiday for the bailed out banks.

“Crowe said that the  tax was foregone last year as a result of the government policy of allowing the bailed out banks to carry forward losses in write offs against their profits and said that with the banks  growing in profitability the amount of tax lost to the state could increase year on year unless changes are made.

“Sinn Féin’s has called for a cap of 25% on losses that can be carried forward in any one year with a limit of ten years in which the losses can be used. This could bring in an extra €175m in annual additional taxes for the State.

Deputy Seán Crowe said:

“A sweetheart deal with the Banks has resulted in 117 million losses to the Exchequer and the government need to end the corporation tax holiday for the bailed out banks

“Under my party Sinn Féin’s proposal, a cap would be set of 25% on losses that can be carried forward in any one year with a limit of ten years in which the losses can be used and could potentially bring in up to €175m extra in taxes each year for the Exchequer. This could be invested in housing, our broken health services, for elderly care or supporting those with disabilities or whatever priorities that are decided on

“It is clear that the Minister’s pre-ordained decision not to change tax policy is reflected in this huge loss to the Exchequer.

“This is particularly galling considering the fact remains that Irish taxpayers are carrying forward the heavy financial burden of hundreds of millions that was created by speculators, developers and their pals in the banking sector.

“As Budget Day approaches the government needs to wake up to the reality that there are 10,000 homeless people, over a million people are on waiting lists, and a growing disparity in income and wealth across the State. Clearly to meet these growing needs, they will have to end this sweetheart deal and tax holiday for these bailed out banks.

ENDS