Alice-Mary Higgins (Independent) | Oireachtas source

I move recommendation No. 11:

In page 94, between lines 14 and 15, to insert the following:

“Report on restriction of carrying forward of bank losses

36.The Minister shall, within six months of the passing of this Act, prepare and lay before both Houses of the Oireachtas a report on policy options which could be taken to restrict banks from carrying forward losses against taxability of their current profits, and where banking profits arise from loans guaranteed by the Minister under the Credit Guarantee(Amendment) Act 2020 and the Credit Guarantee Act 2012, no more than 50 per cent of such profits should be eligible for exemption from taxation under the Deferred Tax Assets Scheme.”.

I will be brief. I am keen to get to some of our later recommendations, particularly those relating to the gender equality-proofing of our private pension tax relief systems. This is similar to a recommendation I proposed last year. The former Minister, Brian Lenihan, previously placed a constraint on the amount of profit that could be eligible for exemption under the deferred tax assets scheme. I understand that how the scheme intersects with the banks is complicated. There is a role for the deferred tax assets scheme for businesses that have had a difficult period. However, when these institutions are restored to profit, the writing off of former losses should be a 50-50 measure. It would be reasonable for 50% of profits to be exempted and 50% to be eligible for taxation by the State, thus contributing to the State. Many of the banks have benefited significantly not just from the credit guarantee in 2012 but also from smaller credit guarantee schemes such as the one in 2020. I ask that the Minister prepare a report looking at what the policy options are to restrict banks from carrying forward losses against the taxability of their current profits, specifically banking profits arising from loans that have been guaranteed by the Minister under the credit guarantee scheme. In the case of those loans, no more than 50% of profits should be eligible for exemption.

I am looking at the time. My colleague has a better worded recommendation on this matter and I would be happy to withdraw mine in favour of it because mine is relates largely to last year. Sinn Féin has a more reasonable and moderate recommendation in that it is looking at a-----