Dáil Éireann Debate, Thursday - 18 July 2013
113. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide a detailed list of expenses which were considered to have been incurred, wholly and inclusively, for the purposes of trade by banks in which the State has a shareholding, and as such were set-off against tax; and if he will make a statement on the matter. [36194/13]
View answerFor reasons of taxpayer confidentiality, the detailed information requested by the Deputy cannot be provided in relation to such a small group of taxpayers. The general rule in relation to deductions applicable to all businesses taxable under Cases I and II of Schedule D is set out in section 81 of the Taxes Consolidation Act 1997. This specifies that tax shall be charged without any deduction from profits other than that which is allowed by the Tax Acts, and only expenses which are wholly and exclusively incurred for the purposes of the trade are allowable.
Section 76A of the Taxes Consolidation Act 1997 requires that the profits of a trade carried on by a company be computed in accordance with generally accepted accounting practices, subject to adjustments required by law. (Such adjustments would include for example the disallowance of depreciation and calculation of capital allowances; disallowance of certain entertainment expenses etc.)
I would also refer the Deputy to the Annual Report and Financial Statements of the Banks which are published on their websites. The Financial Statements of the Banks, including the disclosure notes regarding taxation contained therein, have been audited by the external auditors.
