Dáil Éireann debate -
Tuesday, 13 Jun 1995

Vol. 454 No. 3

Written Answers. - Payment of Tax by British Newspaper Companies.

Ned O'Keeffe

Question:

95 Mr. E. O'Keeffe asked the Minister for Finance the extent to which British newspapers selling in this State pay corporation tax and income tax on profits earned in the State; and the basis on which the profit is calculated in view of the fact that most of the editorial and advertising costs are not incurred for the Irish market. [10672/95]

Minister for Finance (Mr. Quinn)

The basis on which any foreign company pays tax in the State depends on the facts in each particular case. The general position is that a foreign company which has a permanent establishment in the State will be liable to pay corporation tax in respect of the profits arising from its trading activities carried on in the State.

I am informed by the Revenue Commissioners that statistics are not recorded or processed in such a manner as would enable the information requested by the Deputy to be provided on the extent of Irish corporation tax paid by the British newspaper companies whose products are sold here.

The Deputy will appreciate that, for reasons of confidentiality I cannot comment in detail on the tax position of individual companies. However, I understand that many of the British newspaper companies do not have a permanent establishment here but that their newspapers are sold in the State through distribution companies. In such a case, the foreign newspaper company would not be liable to Irish corporation tax because it would not be carrying on a trade in the State. The distribution company would, of course, be liable to Irish corporation tax on its profits from this activity.

Finally, I should point out that the sale of all newspapers in the State is liable to VAT at 12.5 per cent rate.