Banking

Department of Finance warned bank levy ‘open to constitutional challenge’

The firm said that the levy should be allowed to expire to encourage ‘ongoing competition in the banking market’

EY cited the 1984 case of Madigan v Attorney General, in which a constitutional challenge to the residential property tax was rejected. Picture: Shane O'Neill, Coalesce.

The bank levy may leave the state open to a constitutional challenge, according to EY Ireland.

The tax consultancy firm raised concerns around the “arbitrariness” of the levy in a submission to a Department of Finance public consultation on the future of the charge.

“The degree of arbitrariness at this stage with the levy may mean that it is vulnerable to a constitutional challenge . . . given the current almost complete disconnection between the ...