Dáil Éireann debate -
Tuesday, 22 Jun 1993

Vol. 432 No. 6

Written Answers. - Corporation Tax.

Richard Bruton

Question:

91 Mr. R. Bruton asked the Minister for Finance if he will give a list of the activities outside the manufacturing sector to which the 10 per cent Corporation Tax applies; and if he will give an estimate of the total annual output, employment and profits in these activities.

Minister for Finance (Mr. B. Ahern)

I have been advised by the Revenue Commissioners that the legislation provides for 10 per cent corporation tax rate for the following activities which would not otherwise be considered manufacturing:

Production of fish on a fish farm.

Cultivation of mushrooms.

Repairing ships.

Design and planning services for engineering works to be executed outside the EC.

Computer services.

Computer repairs.

Export of goods by a company which exists solely for the purpose of the trade of the selling of export goods.

Cultivation of plants by micro-propagation or plant cloning.

Repair and maintenance of aircraft, aircraft engines or aircraft components.

Production of a film on a commercial basis.

Qualifying Shipping activities.

Sale of milk, purchased from its members, by Agricultural Societies to qualifying companies.

Fishery Societies Agricultural Societies	in respect of income from sale of goods purchased from their members where members were entitled to manufacturing relief in respect of those goods.
Trading operations carried out in Shannon Airport or the Customs House Docks area	which are certified by the Minister for Finance.

The Finance Act, 1993 provides for a 10 per cent corporation tax rate for the production of a newspaper including the rendering of advertising services in the course of the production of the newspaper and for currency exchange gains connected with section 84 loans denominated in a foreign currency.

I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested on output and employment to be given with the exception of figures on employment in Shannon and IFSC. However, it is tentatively estimated that the adjusted profits for tax of companies which avail of manufacturing relief but which would not be classified as manufacturing companies under standard economic classification came to some £970 million for all companies with accounting periods ended between 1 April, 1990 and 31 March, 1991. This is the most recent period for which figures are available. About two thirds of this amount was attributable to companies operating in the international financial services centre.

Projects approved for the IFSC have so far given rise to direct new employment of approximately 1,300 and, indirectly, to many more additional jobs in the legal, accounting and general services sector in Dublin.

There are 67 service companies in Shannon employing 2,147 people.