DUBLIN:AIB has been slammed 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 in the downturn.
Meanwhile they are paying their shareholders, many of them rich investors, an impressive dividend pot of €325million for the year.
Sinn Féin finance spokesman, Pearse 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.
“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.
“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.
