Tuesday, 19 October 2004

Questions (187)

Richard Bruton

Question:

319 Mr. R. Bruton asked the Minister for Finance the number of companies paying corporation tax in each year since 1997 and the forecast for 2004; and the corporation tax paid and the distribution of companies and revenue between foreign-owned and domestic companies and between companies traditionally eligible for the 10% rate and the standard rate for tax paying companies. [25133/04]

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Written answers (Question to Minister for Finance)

The number of companies which indicated on their tax return forms that they were liable to pay corporation tax for each of the years from 1997 to 2002 is set out below. I am informed by the Revenue Commissioners that statistics on the amount of corporation tax paid by foreign-owned companies are not separately available. However, data can be derived from corporation tax returns on the percentage of corporation tax liability attributable to companies taxed wholly or partly at the reduced rate of 10%. This information, which is available for accounting periods ending between 1 April 1997 and 31 December 2002, the latest available, is as set out below.

Year Ending

All Liable Companies

Number of Companies with 10% relief

Tax Liability of Companies with 10% relief

Other Liable Companies

Tax Liability of other Liable Companies

€m

€m

31 March 1998

28,980

5,680

1,431

23,300

1,079

31 March 1999

31,900

5,800

1,818

26,100

1,428

31 March 2000

33,720

5,790

2,185

27,930

1,648

31 March 2001

38,730

5,620

2,716

33,110

1,737

31 December 2001

41,620

5,220

2,521

36,400

1,611

31 December 2002

46,300

5,290

2,545*

41,010

1,627*

*Breakdown figures are subject to revision.

The figures shown as the corporation tax liability of companies qualifying for the 10% relief reflect the total tax liability of these companies on all their profits, including those profits taxed at other rates. It is not possible to isolate the tax attributable solely to the effective 10% rate in such cases because certain reliefs relating to income liable for tax at both the standard and reduced rates are set off against the overall tax liability after the relief at 10% has been computed. The budget forecast for corporation tax receipts for the year 2004 is €5.384 billion.