Cathal Crowe
Question:119. Deputy Cathal Crowe asked the Minister for Finance his expectations for corporation tax revenues in 2023; and if he will make a statement on the matter. [2991/23]
View answerTuesday, 24 January 2023
Questions (119)
Written answers
At the time of Budget 2023, corporation tax this year was estimated to reach €22.7 billion.
While corporation tax receipts last year were higher than anticipated, much of this performance is considered to be once-off in nature and is not expected to be repeated this year.
My Department estimates that around €10 billion in corporation tax is excess or windfall in nature and could be at risk. If these receipts are excluded, there is a very large underlying deficit in the public finances, estimated at around €5¼ billion for last year.
It is also worth highlighting that corporation tax receipts are highly concentrated, with just ten large firms paying well over half of all corporation tax receipts. This means that these receipts are vulnerable to the business decisions of a small number of multinational companies.
My Department has regularly warned that the large increase in corporation tax is not a suitable basis for permanent expenditure commitments. On this basis, Government is actively mitigating the exposure of our public finances to this volatile revenue stream: last year, €2 billion in windfall corporation tax receipts were transferred to the National Reserve Fund, with a further €4 billion transfer to follow this year.