asked the Minister for Finance the estimated additional corporation tax, if any, which will arise in 1990 due to the termination of export sales relief.
Written Answers. - Corporation Tax.
100.
Export sales relief (ESR) will cease to be available after 5 April 1990, and while there will be an increase in the tax yield as a result, it is not yet known when precisely this will begin to accrue.
The yield to the Exchequer from the replacement of the relief by a corporation tax rate of 10 per cent will depend upon a number of factors such as the extent to which ESR companies will continue to operate in Ireland after that relief has been terminated, and the extent to which ESR companies had accumulated unused capital allowances by 5 April 1990 which can be set off against their taxable profits. Because of these factors it is not possible to say now what the yield to the Exchequer will be under the new arrangement. However, it is unlikely that there will be any appreciable yield in 1990 because of the normal seven month time lag between the dates on which company accounting periods end and the corresponding dates for tax payment.