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

I agree with much of what Deputy Stephen S. Donnelly said. This is an important public policy issue and it is true to say it is a long-established practice within the corporation tax code that losses can be carried forward and offset against future profits. That is well established in the tax code, about which there is no question.

To say the least, the NAMA transfers constituted an exceptional event, in that enormous losses crystalised on the financial statements of the participating financial institutions. The late former Minister, Brian Lenihan, put in a restriction on the capacity of the banks to carry forward those losses and offset them against future profits.

What would be the implications of restricting the limitless carry forward, which is the position at present? For example, by how much would this carry forward have to be restricted for it to trigger actual corporation tax liabilities from the banks in the short term? What would be the consequences of this for the broader Exchequer, in terms of tax receipts, the implications for the banks and the value of shares? We all table amendments seeking reports, and the central purpose generally is to get a debate on an issue, and get a report in many instances. The Minister should share with the House the Department of Finance's assessment of the issue because there are a number of important factors that need to be taken into account and they were discussed during the Committee Stage debate. It is about weighing up the issues. I would like to see an assessment done. It does not have to be provided for by way of the Finance Bill, but the Department of Finance should carry out an assessment of all those issues and all the consequences, and it should be shared with the House and publicly.

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