Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is the section which seeks to remove the restriction on NAMA banks using losses forward. On the one hand the budget was about taking from the banks by way of the introduction of a bank levy but on the other, giving back to the banks by way of removing the shelter of a maximum of 50% of taxable profits that could be offset by losses forward. As the Minister is aware, that was originally a provision in the NAMA legislation. This has significant benefits for the banks in that it enhances the recoverability of what are regarded as deferred tax assets which have a positive impact on their capital position. What is the potential amount of tax foregone as a result of this restriction? We all hope the banks become profitable again. This is particularly an issue for AIB and Bank of Ireland and as soon as they become profitable they will need to start using the very substantial losses they have amassed in recent years by way of carry-forward to offset against those profits and obviate the need for any corporation tax to be paid. Are there any figures on what tax is likely to be foregone by the Exchequer by removing this restriction?