Should banks continue to be exempt from Tax?
Banks set to remain exempt from tax
So three things:
1 -
Banks are likely to be allowed to continue to pay zero tax on billion euro profits following a Department of Finance review of exemptions for lenders and other corporations.
2 -
This will highlight the continuation of the current bank levy as opposed to changes to the tax exemption … The bank levy yields €150m annually
…
3 -
In 2015, the Government changed the rules allowing banks to defer taxes for up to 20 years.
The banks ARE paying a bank levy.
Opposition TDs want the tax exemption, which allows banks write off taxes against past losses, scrapped. This is despite many banks having returned to huge profit.
Last year, Bank of Ireland, AIB, and PTSB made combined profits of €2.5bn.
So is it time to scrap the levy and the 20 year thing and resume paying tax on profits as ever other company pays in Ireland? OR is it too soon still? OR should banks be left alone and given some sort of ongoing preferences vs all other businesses?
Would Banks paying their corporation tax and not being allowed to defer it for 20 years GROSS MORE than the 150m bank levy yield per annum?
I thought all businesses were allowed to carry forward losses to offset against profit in future years? Maybe one of the Chartered Accountants can confirm.
They are, the 20 years thing is because they estimated how long it would take to clear the losses before they are back in profit, based on profits at the time. It won’t take anywhere near 20 years though. Still the reality is the tax payer took the losses not them. So they are doing us twice the bankers
Personally I’d be glad to see the inside of a dark room for one hour with any bank manager of your choosing. I can guarantee he’d change career afterwards. Thankfully none of my family ever ended up working in a bank, I’d seriously consider giving them the road if they did.
Did you go direct or through a broker? I’ve got an approval in principle from TSB at the moment and looking through it now I can’t see reference to cashback. It was through a broker
There was no mention on our AIP either. But actual loan offer has explicit clauses on cashback offer monthly… and no mention of the actual lump sum cash back.