Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I understand the general point being made but this matter could be discussed in more detail at another time. The issue of bank profits not being subject to corporation tax because the loss is brought forward is the essence of what we are discussing.

Although the precise impact of Covid-19 for the full 2020 year may not be known until early next year, AIB, Bank of Ireland and Permanent TSB reported an aggregate loss before tax of €1.6 billion in the first half of 2020. Based on the guidance given as part of the third quarter statement in November 2020, it is expected that additional loan losses were incurred by the banks in the second half of 2020. We are looking at a situation among major banks whereby the losses are well in excess of €1.6 billion and in these recommendations we have the idea of talking about profits with these massive losses this year. Perhaps when the banks return to profit, we can have a debate on the issue. The one thing that is sure is that while it is interesting, it will not have a practical effect this year or next year because of the losses that have happened this year, which may well carry into next year.In respect of the tax they will pay next year, which will be based on the profits made this year, that will be seriously in the negative because they are in a loss-making situation. Due to the fact that losses have been made and the loans have been given in the Irish market this year, we must ask whether they should be allowed to carry that loss forward into next year or whenever they regain profitability. Most people would say that if they are taking a hit now, and they return to making profits next year or the following year, the losses they make this year, which carry over into next year, should be able to be off-set against the profits they make when things start to recover. Every business will do that and if someone argues the banks should not be able to do that, that is their particular point of view. On the question of reports on the profits of the banks and public companies for this year in particular, they issue their figures every quarter. Nothing could not be more transparent. We see their figures every three months. All anyone need do is to look at the figures and see they are making losses. Bank of Ireland, AIB and Permanent TSB incurred current year corporation tax charges in Ireland totalling €70 million. They paid that this year in respect of last year. It is important that they have actually paid €70 million in these charges. They have also paid €93 million through the bank levy. Even though they are in a loss-making situation this year, they will still have to pay the bank levy. They will not have any corporation tax to pay, for the obvious reason that they are making massive losses. I hope it will be sooner rather than later, but if and when the banks return to a level of normality, are in a position to start giving new loans to businesses to help the country recover and there are profits to be made, we will talk about taxing the profits they make then. However, that will certainly not be this year or next year, so I am not in a position to accept the Senator's recommendation on reports. The information on their profits is there for everyone to see and there is no requirement for us to do anything further other than to note where we are. It should be noted the banks are paying the bank levy this year as well.