The following table sets out the amount of capital injected by the State into the Irish banking system to date. The total amount is €46.3 billion.
|
Credit Institution
|
Cost of Share Acquisition
|
Cost of Preference Shares
|
Value of Promissory Notes Issued
|
Capital Provided to date
|
|
€bn
|
€bn
|
€bn
|
€bn
|
|
Anglo Irish Bank
|
4.0
|
—
|
25.3
|
29.3
|
|
Allied Irish Banks
|
3.7
|
3.5
|
—
|
7.2
|
|
Bank of Ireland
|
1.7
|
1.8
|
—
|
3.5
|
|
Irish Nationwide Building Society
|
0.1
|
—
|
5.3
|
5.4
|
|
EBS Building Society
|
0.6
|
—
|
0.3
|
0.9
|
|
Irish Life and Permanent
|
—
|
—
|
—
|
—
|
|
Total
|
10.1
|
5.3
|
30.8
|
46.3
|
On the issue of losses, Ireland follows the international norm, in that losses incurred in the course of a business are taken into account in arriving at the appropriate amount of tax that a company should bear. Under existing legislation, companies are entitled to carry forward unrelieved trading losses for offset against trading profits in future accounting periods until the losses are fully relieved. However, special arrangements apply in the case of financial institutions, in the context of dealing with impaired loan assets. In this regard, provisions were included in the National Asset Management Agency Act 2009 to limit the amount of relief that can be claimed by participating institutions for losses carried forward from earlier years.
This measure, which is provided for in section 396C of the Taxes Consolidation Act 1997, has the effect of restricting the amount of a participating institution's group trading income which can be reduced by losses brought forward from earlier periods to 50 per cent of such income. The measure will ensure that, when the institutions return to profitability, a minimum of 50% of their trading income will remain chargeable to tax in an accounting period notwithstanding claims for relief for losses carried forward into that period.
