Brian Lenihan Jnr (Dublin West, Fianna Fail)

The rate of corporation tax is 12.5%. It will be a minimum of 50% but it is based on a criterion of trading income. Corporation tax in Ireland is a matter of national policy and it is set at 12.5%. A minimum of 50% of trading income of any year will continue to be chargeable, notwithstanding claims for relief for losses carried forward into that year. The issue of the rate of tax for banks is no different than for any other company in the State. In that context, however, and uniquely, banks have to pay tax on half their tradeable income, irrespective of what losses they have incurred in the past. That was the balance struck in the 2009 legislation and this can be revisited if we wish and the issues can be evaluated.

I wish to confine myself to the proposal before the House, which is the proposal for an advocate for taxpayers. The McCarthy report proposed that all the offices of Ombudsman should be combined into a single office and here is what is in substance a request for a tax-specific Ombudsman. I do not think it is a wise way to go to set up another organisation. The Revenue Commissioners have done marvellous work in improving their internal practices. An appeals procedure and an Ombudsman are already in operation with jurisdiction to examine all these issues and in my view, this is adequate in this context.

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