Irish banks are back in profit – so why are they still not paying tax?
Smart Money: Banks and insurers will not pay up to €12bn in tax due on profits unless rules are changed
Would a change to the rules which allows Irish banks to write-off tax against losses be shooting Irish taxpayers in the foot?
It is reporting season for Irish banks, and the big players are making significant profits, with AIB recently reporting profits before exceptional items of more than €1.4 billion and Bank of Ireland announcing underlying profits of €935 million.
Yet because of their ability to continue to write-off losses made during the crash against their profits, these banks are not paying tax on the vast bulk of their profits – nor will they do so for years to come.