Pearse Doherty has slammed AIB for paying no tax on its €1.6 billion profits this year.
The bank, that was bailed out by the Irish taxpayer to the tune of €20 billion, is now stiffing the Exchequer for millions in tax on its profits thanks to a sweetheart deal it negotiated with the Fine Gael and Labour Government.
The Sinn Féin finance spokesman, Doherty, is calling out AIB and asking how the Government can let the bank, they still own nearly three quarters of, get away with it.
Writing initially on Facebook, Doherty said: “The next time you’re looking at your payslip and the amount of tax you are paying just remembered that today AIB has told us that they made €1,250,000,000 profit last year and they’re not paying a penny corporation tax.
“The minister told me yesterday he’s fine with this – yes, that’s not a mistake that’s €1.25 Billion in profit and not a cent of tax paid.”
Meanwhile, the bank continues to pay their shareholders, many of them rich investors, an impressive dividend pot of €325million for the year, while ordinary taxpayers are still struggling to make ends meet.
Doherty told the Irish Mirror: “Last week, we had Bank of Ireland announcing a billion euro in profit and dividends of €124million,” Mr Doherty said.
“This week, we have the spectacle of AIB telling us they have made a profit of €1.6billion and paid out a dividend of €325million.
“In both cases, these profits are tax-free,” he added.
“When these banks were nationalised or part-nationalised, they originally could only carry forward 50% of losses against future profits.
“This was done so that they would start paying tax as soon as they became profitable.
“In 2014, Fine Gael and Labour reversed this decision and allowed for 100% of losses to be carried forward resulting in the State losing out in hundreds of millions of Corporation Tax this year and for twenty years to come.
“Following my amendment to the Finance Bill, the Minister for Finance has promised to produce a paper looking at this issue but there is no sign yet of anything like this paper.
“In the meantime, AIB and Bank of Ireland have begun to make huge profits that are not liable to corporation tax,” Doherty said.
“These are profits being made on the backs on very high-interest rates for SVR (Standard Variable Rate) mortgage holders.
“The government must take action now and ensure that these banks are taxed fairly.”
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