Deputy Mattie McGrath, leader of the Rural Independent TDs, is calling for change to the current tax regime for retail banks in Ireland. Deputy McGrath is accusing the government of allowing Ireland’s three major banks – Bank of Ireland, AIB, and Permanent TSB – to evade corporation tax, despite reporting record profits. The banks are able to use the tax facility known as Deferred Tax Asset to offset their current profits with historic losses from the period of the financial crash.
The Tipperary TD is highlighting that the current profits are made due to the same customers that bailed out the banks as taxpayers. 2023 marked the bank’s most profitable year ever with the 3 main banks reporting over €4B in profits.
The Tipperary TD has concerns about competition in the mortgage sector with Bank of Ireland holding 41% of the market, AIB 33% while PTSB control over 19% of the mortgage market.
The banks will pay a bank levy capped at a maximum of just €200 million for 2024. Due to the extent of the losses during the bailout the banks will remain tax-exempt for decades with PTSB paying no corporation tax until 2038, and AIB and BOI until 2037. To address the situation the Rural Independents are seeking that the annual bank levy be increased to €600 annually and that the Deferred Tax Asset facility be curtailed.
