Dáil Éireann Debate, Tuesday - 23 November 2004
112 Ms Burton asked the Minister for Finance if he has plans to require the main banks to make a greater contribution to the Exchequer through taxation or other appropriate mechanism, especially in view of the recent report from a company (details supplied) showing that the two main banks here are among the most profitable in Europe; and if he will make a statement on the matter. [29842/04]
View answerAs the Deputy is no doubt aware, companies are liable to corporation tax on their profits at the relevant tax rate. Since 1 January a new standard rate of corporation tax of 12.5% has applied across the board to the trading profits of companies. If a particular company's net trading profits for tax purposes increase, then it will pay more corporation tax. The Finance Act 2003 provided for a special levy on financial institutions calculated by reference to the amount of tax payable by them in 2001 on deposit interest. The levy applies at €100 million per annum for each of the years 2003, 2004 and 2005. As Deputies will be aware, it is not the practice in the lead up to the budget to comment on any possible changes in taxation.
