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Departmental Expenditure

Dáil Éireann Debate, Wednesday - 26 September 2012

Wednesday, 26 September 2012

Questions (79)

Pearse Doherty

Question:

79. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform further to Parliamentary Question No 493 of 18 September, 2012 if he will provide an explanation for the payment of €2,603,000 by the Exchequer to Marathon Petroleum in the July 2012 Exchequer statement; and if he will make a statement on the matter. [40898/12]

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Written answers

The Exchequer statement records that €2.603 was paid to Marathon Petroleum (now PSE Kinsale Marathon’s operations in the Kinsale field were taken over by Petronas, the Malaysian state-owned petroleum concern, in 2009 and renamed PSE Kinsale.) in the first half of 2012. Article X of a 1959 Agreement with Marathon Petroleum provides that the company is entitled to a remittance of the amount by which the total of tax and royalty paid in any accounting period exceeds 40% of the "net income" as defined in that Article. The level of the remittance is restricted to the lesser of the following two amounts:

- An amount equal to the excess of the total of tax and royalty over the said 40% of "net income", or

- An amount equal to the taxes paid on income and profits.

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