Vol. 557 No. 1
88 Mr. M. Higgins asked the Minister for Finance if he is considering ways of raising more tax revenue from large corporations, including the banks, having regard to the way in which they have benefited from the reductions in corporation tax in recent years; and if he will make a statement on the matter. [21282/02]
As the Deputy is aware, the 12% rate on trading income involves an increase in tax for some companies or sectors, including the international financial services sector which currently has a 10% rate, though it has and will involve a reduction for others.
As part of the overall changes, the payment of tax credits equivalent to advance corporation tax payments was abolished in April 1999 which yielded €76 million in 2000 alone. In addition, dividend withholding tax was introduced. The forecast yield from this tax in 2002 is €200 million. There is also a 25% rate of corporation tax on non-trading e.g. passive income, in the State.
As is the normal practice I do not propose to comment one way or the other on putative tax changes in the run-up to the budget.
