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Dáil Éireann debate -
Wednesday, 26 Feb 2003

Vol. 562 No. 2

Written Answers - Tax Collection.

Finian McGrath

Question:

156 Mr. F. McGrath asked the Minister for Finance if he will consider a once-off levy on the ?1.4 billion profits at Ireland's biggest bank to fund the ?35 million needed to fund services for people with intellectual disabilities; and if he will give serious consideration to this radical and creative proposal. [5759/03]

As the Deputy is aware, there is provision for a special levy on financial institutions contained in the Finance Bill before the House. This levy, if enacted, will raise €300 million over the next three years, and this will increase the funds available for Exchequer funding in all areas, including those mentioned by the Deputy. It would not be appropriate to single out one company and apply a different tax regime to it.

It should also be borne in mind that any multinational company resident in Ireland with subsidiaries in other jurisdictions will initially be liable to taxation in these countries in respect of the profits in those other countries. The question of Irish taxation on the profits of such subsidiaries only arises when the subsidiaries remit dividends to the parent company and credit must then be given for taxation paid in the other country if it is a country with which Ireland has a double taxation treaty. I have no plans to introduce a levy of the type proposed by the Deputy on the profits of a particular bank.

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