Proinsias De Rossa
Question:56 Proinsias De Rossa asked the Minister for Finance the expected increase in corporation tax yield in 1990-91 arising from the abolition, under the direction of the EC, of export sales relief.
Written Answers. - Corporation Tax Yield.
Export sales relief (ESR) ceased to be available after 5 April 1990.
The yield to the Exchequer from the replacement of the relief by a corporation tax rate of 10 per cent will depend upon a number of factors such as the extent to which ESR companies will continue to operate in Ireland after that relief has been terminated, and the extent to which ESR companies had accumulated unused capital allowances by 5 April, 1990 which can be set off against their taxable profits. Because of these factors it is not possible to say with precision what the ultimate yield to the Exchequer will be under the new arrangement. However, it is estimated by the Revenue Commissioners that little or no yield arose in 1990 because of the normal seven month time lag between the dates on which company accounting periods end and the corresponding due dates for tax payment.
A provision for an Exchequer yield of £45 million from companies which previously qualified for ESR has been included in the corporation tax estimate of £527 million for 1991.