asked the Minister for Finance the value of manufacturing profits which were taxed at the 10 per cent rate in the most recent tax year; the estimated value of manufacturing profits that were tax exempt under export profit tax relief and other schemes; and the value of investment in manufacturing which was granted accelerated depreciation.
Written Answers. - Manufacturing Profits.
397.
Statistics are not available in relation to the manufacturing sector which would enable the precise information requested by the Deputy to be given.
It is tentatively estimated that the amount of all taxable profits, as distinct from commercial profits, which qualified for the reduced corporation tax rate of about 10 per cent in 1983, the latest year for which figures are available, was of the order of £280 million.
The latest available data on export sales relief is in respect of relief allowed in the period from 1 February 1983 to 31 January 1984. In that period relief was accorded in respect of taxable profits estimated at £640 million. This figure includes the relieved profits of accounting periods which ended in the period to 31 January 1984 and the profits of earlier accounting periods in respect of which relief was also allowed in that period. The following table gives a breakdown of the figure of £640 million by reference to the accounting periods for which relief was given:
|
Accounting periods which ended in year to 5 April |
Amount of taxable profits which qualified for export sales relief in the period from 1 February 1983 to 31 January 1984 |
|
£m. |
|
|
1984 |
9 |
|
1983 |
224 |
|
1982 |
303 |
|
1981 |
79 |
|
1980 |
7 |
|
1979 |
15 |
|
1978 |
3 |
|
Total |
640 |
The amount of taxable profits in respect of which exemption from corporation tax was allowed under Shannon relief, the only other major incentive scheme affecting business profits, is estimated to have been of the order of £20 million in the year ended 5 April 1983, the latest year for which figures are available.
The amount of accelerated capital allowances effectively allowed in respect of accounting periods which ended in the year ended 5 April 1983, is estimated to be of the order of £225 million for all sectors.