Dáil Éireann Debate, Tuesday - 24 July 2018
385. Deputy Eamon Ryan asked the Minister for Finance the projected revenue if alongside the existing 12.5% rate an effective actual rate of corporation tax of 6% was collected in each of the years 2000 to 2017; the projected income in 2018 and 2019 if an effective rate of 6% was in effect in tabular form; and if he will make a statement on the matter. [35201/18]
View answerAnalysis undertaken by my Department, co-authored by an independent academic, and a report undertaken by the Comptroller and Auditor General (C&AG), confirm that the overall effective rate of corporation tax, using the most appropriate methodology, paid by corporations in Ireland is between 10% and 11%. I would note that this is very close to our headline rate of 12.5% and is above the effective tax rate of 6% suggested by the Deputy. On the basis of this extensive analysis, I am satisfied that companies in Ireland are paying the appropriate rate of corporate tax on their profits generated in Ireland.
In terms of the potential extra tax that could be raised if an effective rate requirement of 6% was imposed at individual company level, I am advised by Revenue that it is not possible to accurately estimate the additional revenue that could be generated. There is no one definition of an effective corporate tax rate at individual company level and it is therefore not possible to provide an estimate of additional revenues could be made. In addition, any estimate would require knowledge of any behavioural changes on the part of the relevant taxpayers that could occur as a consequence of any change.
The Deputy may however wish to note the published statistics regarding Corporation Tax receipts that are available on the Revenue website at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/index.aspx.
Also, further information on corporate profits, before allowing credits and reliefs are published at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
