Lynn Ruane (Independent) | Oireachtas source

I move recommendation No. 8:

In page 71, between lines 33 and 34, to insert the following:"(3) The Minister shall, within three months of the passing of this Act, prepare and lay before the Houses of the Oireachtas a report on the offset of losses, carried forward from preceding accounting periods, for which relief is available in succeeding accounting periods, setting out the costs of tax foregone and the merits of any alternative to the current treatment of those losses.".

This is a slightly modified version of an amendment to the Bill that was proposed by Deputy Burton on Report Stage in the Dáil. It requires the Minister to compile a report on the practice of companies using previous accumulated tax losses to forego paying tax on profits now. I understand that this use of losses is a feature of many tax systems. Indeed, it is most likely that US President-elect Donald Trump used this vehicle to potentially avoid paying federal tax in the US for much of the past 15 years. However, I suggest that in the context of such significant losses in the financial services, property and construction sectors during our own economic crash, it seems inequitable for companies to be able to use those losses to offset tax obligations now. I think a report in this area would be useful. I would like to hear the Minister of State's thinking on this issue.