asked the Minister for Finance in respect of financial services firms to whom licences have been granted to trade in the Custom House Docks Financial Services Centre, Dublin 1, (i) the estimated corporation tax yield in each of the tax years 1988-89, 1989-90 and 1990-91 (ii) the estimated corporation tax revenue to be foregone in each of those years by reducing that tax rate to 10 per cent in respect of these firms and (iii) in respect of these firms at present trading in Ireland, the amount of tax which will be foregone by their transferring to the Financial Services Centre.
Written Answers. - Financial Services Firms.
58.
In relation to part (i) of the Deputy's question, I have to date given certificates under section 39B of the Finance Act, 1980, (inserted by section 30 of the Finance Act, 1987) to seven companies which will be locating in the International Financial Services Centre in the Custom House Docks Area. To forecast the corporation tax yield from these companies in respect of the years in question, it would be necessary for me to make major assumptions about the profits of each of these companies for those years. That would be highly speculative and would not provide a basis for reliable estimates. I am not in a position, therefore, to give an estimate of the corporation tax yield from these companies for the years in question.
Part (ii) of the Deputy's question depends upon the first part. I am not in a position, therefore, to give the estimate sought.
In relation to part (iii) of the Deputy's question, none of the seven companies certified to date were previously carrying on in Ireland the trading operations for which they are now certified. They cannot, therefore, be regarded as having transferred into the Custom House Docks Area and the question of tax foregone does not accordingly arise.
On a general note, in regard to parts (ii) and (iii) of the question, I am confident that there will be no net loss of revenue to the Exchequer arising from the certification of companies in the centre. In fact, I expect the very opposite to be the case and that the centre will provide positive benefits for the economy by way of tax yield as well as new employment and investment which would not otherwise materialise.