I propose to take Questions Nos. 269 and 270 together.
The close company surcharge is charged on undistributed investment and estate income of companies. I am advised by Revenue that the available information is the amount of Corporation Tax liability associated with the close company surcharge 2014 to 2016 (the latest year available) and is as shown in the following table. It is not possible to separately identify the liability associated with rental income only.
Tax Year
|
Close Company Surcharge €m
|
2014
|
20.7
|
2015
|
21.4
|
2016 (Provisional)
|
22.0
|
The 25% rate of corporation tax is charged on certain profits of companies including, but not limited to, rental income. The 25% rate applies to non-trading income including income chargeable under Case III (e.g. discounts, interest, foreign income), Case IV (miscellaneous income) and Case V (rental income from land & buildings in the State) of Schedule D. Also included at this rate is income from activities which consist of working minerals, petroleum activities and dealing in or developing land, other than profits from construction operations (section 21A TCA).
I am informed by Revenue that, as rental income is aggregated with other incomes for the purposes of Corporation Tax calculations, it is not possible to separately identify the Corporation Tax collected from rental income alone. For this reason the cost of a 1 per cent reduction in the 25 per cent rate applying to rental income alone cannot be provided.