Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The substantive amendment we are discussing relates to what happens in the context of a transition from one accounting standard to another. It is my desire to ensure that we do not lose any tax revenue as that happens. The Deputy is raising a different matter, which she is entitled to do, in regard to how we treat losses within our banking system. As I said, how we deal with the treatment of losses corporately is a consequence of our tax code. The Deputy knows well that if I were to make a change as to how we account for the taxation of losses within our banks, it would have consequences for capital levels within the banks and the value of our shareholding in the banks. One of the reasons for these changes was the change in respect of the capital requirements for the banking system across Europe. The retention of the bank levy mechanism provides an alternative means for the generation of much needed tax revenue from the banking system for the taxpayer.