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Ireland to Push Ahead With Tax on Bank Bonuses: Report

Irish Finance Minister Brian Lenihan will press ahead with a plan to impose a 90 percent charge on bankers' bonuses when the budget bill is published on Friday, newspaper the Irish Independent reported.

Dublin, Ireland
Firecrest Picture | Robert Harding | Getty Images
Dublin, Ireland

The bill will also contain a clause allowing the government to tax Allied Irish Bank (AIB) officials who are taking legal action for the payment of bonuses promised to them almost two years ago, the paper said.

AIB is facing up to 100 claims after staff from the bank's capital markets unit filed claims with both the High and Circuit Courts for sums ranging from 3,000 euros to more than 100,000 euros ($4,065 to $135,500), it added.

If implemented, the controversial new tax means such legal action could be pointless as the new tax would wipe away any award they may win, the Irish Independent said.

Ireland was bailed out by the European Union and the International Monetary Fund in November. The 85 billion euro rescue packageprovided support for the country's banking sector, and bankers' attempts to get bonuses back following the intervention have caused outrage.

Contact Europe: Economy

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