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3/28/17

European Banking Industry: Oxfam claims Ireland is a tax haven for EU banks

A new Oxfam report claims that there is strong evidence that Ireland is facilitating "significant corporate tax avoidance" by top European banks.

The 'Opening the Vaults' study, completed in conjunction with the Fair Finance Guide International, shows that banks reporting in Ireland made over €2.3 billion in profits on €3bn of turnover in 2015.

This 76% profitability rate is four times higher than the global average – only the Cayman Island had a higher rate with 167%.

The report of Europe's 20 biggest banks stated that:

"The 16 top European banks operating in Ireland examined in the research paid an average effective tax rate in Ireland of no more than 6% – half the statutory rate of 12.5% – with three banks (Barclays, RBS and Crédit Agricole) paying no more than 2%."

It named Luxembourg and Ireland as the "most favoured tax havens" in Europe, accounting for 29% of the profits banks posted in such areas in 2015.

The 20 biggest banks posted €4.9bn of profits in Luxembourg in 2015 – more than they did in the UK, Sweden and Germany combined.

Read more: Oxfam claims Ireland is a tax haven for banks | Newstalk

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