Dáil Éireann Debate, Thursday - 13 July 2017
215. Deputy Ruth Coppinger asked the Minister for Finance the estimated amount that could be raised by increasing the effective rate of corporation tax to the effective rate of income taxation, PAYE and USC for workers on the median wage. [34524/17]
View answer216. Deputy Ruth Coppinger asked the Minister for Finance the estimated amount that could be raised by doubling the rate of corporation tax to 25% for 2018. [34525/17]
View answer217. Deputy Ruth Coppinger asked the Minister for Finance the estimated amount that could be raised by doubling the rate of corporation tax to 25% on profits in excess of €800,000 for 2018. [34526/17]
View answer218. Deputy Ruth Coppinger asked the Minister for Finance the estimated amount that could be raised by doubling the rate of corporation tax to 25%, for companies liable for over €100,000 in corporation tax for 2018. [34527/17]
View answerI propose to take Questions Nos. 215 to 218, inclusive, together.
I am advised by Revenue that it is not possible to accurately estimate the additional revenue that may be brought in from increasing the 12.5% corporation tax rate to either 25% or to the effective rate of tax for workers on the median wage. This would require ex ante knowledge of any behavioural changes on the part of taxpayers as a consequence. In terms of any increase in the 12.5% rate, the negative impacts of behavioural effects on the corporation tax yield are likely to be relatively significant. Additionally, due to the interaction of reliefs and allowances after the calculation of gross tax at the various corporation tax rates, it is not possible to identify the amount of receipts that are presently in respect of profits taxable at the 12.5% rate alone.
The Deputy may wish to note the published statistics regarding corporation tax receipts available on the Revenue website at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-taxhead.aspx. The Deputy may also wish to note that an analysis of the Corporation Tax payments in 2014 and 2015 has been published and is available at http://www.revenue.ie/en/about/publications/corporation-tax-receipts-2014-2015.pdf, and an analysis of 2015 Corporation Tax returns and 2016 payments is available at http://www.revenue.ie/en/corporate/documents/research/corporation-tax-returns-2016.pdf. Further information on corporate profits, before allowing credits and reliefs are published at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/ct-calculation.aspx.
