Vol. 490 No. 2
57 Mr. Gilmore asked the Minister for Finance if he has satisfied himself with the level of taxtake from the banking and financial sector having regard to the recent findings of an independent survey which showed the Irish financial institutions had the highest rate of profits in 16 European countries. [9877/98]
Profits earned by banks and other businesses in the financial sector are liable to corporation tax at the standard rate, currently 32 per cent with a reduced rate of 25 per cent on the first £50,000 of annual profits. Profits of financial institutions which arise from licensed trading operations in the IFSC are subject to a rate of 10 per cent.
I am informed by the Revenue Commissioners that the estimated corporation tax paid by the financial sector in 1997 was of the order of £500 million. This covers banks and their Irish subsidiaries, building societies, insurance companies and companies based in the IFSC. The amount does not include foreign tax paid by Irish financial institutions in respect of their overseas operations, which is likely to be significant.
The tax position of the banks and other financial institutions is kept under continuous review and action can be taken if needed to secure the revenues to the State from this important sector.
