AIB on Grafton Street
AIB will not pay a cent in corporation tax for more than 20 years, despite making €814m profit in the first half of this year, writes Daniel McConnell.
…The anomaly has come about because the bank has a so-called deferred tax asset of €3bn, which under tax and accounting rules allows it to offset previous losses against future tax bills.
In 2009, the then finance minister Brian Lenihan sought to prevent bailed-out banks carrying massive historic losses into the future as assets. However, in 2013, Michael Noonan reversed the rule change.