Wednesday, 25 September 2019

Ceisteanna (60, 61, 62, 63)

Joan Burton

Ceist:

60. Deputy Joan Burton asked the Minister for Finance if he will provide statistical information (details supplied) in respect of each of the years 2010 to 2018 and from 1 January 2019 to date. [39065/19]

Amharc ar fhreagra

Joan Burton

Ceist:

61. Deputy Joan Burton asked the Minister for Finance the number of correlative adjustments received by the country in which the tax settlement giving rise to the adjustment has been agreed in each of the years 2010 to 2018 and from 1 January to date in 2019, in tabular form. [39066/19]

Amharc ar fhreagra

Joan Burton

Ceist:

62. Deputy Joan Burton asked the Minister for Finance the number of protective claims for correlative adjustments received for claims that may arise in the future together with an estimate of the tax involved in each of the years 2012 to 2018 and from 1 January to date in 2019, in tabular form. [39067/19]

Amharc ar fhreagra

Joan Burton

Ceist:

63. Deputy Joan Burton asked the Minister for Finance the estimated number of correlative adjustments expected to be received in 2019 and 2020 in the work plans of the Revenue Commissioners. [39068/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 60 to 63, inclusive, together.

I am advised by Revenue that as at 30 June 2019, the latest date for which such data has been collated, approximately €191 million in tax is the subject of open correlative relief claims.

Table 1 includes the number of correlative relief claims made by companies for each of the years 2010 to 2019 (up to 30 June 2019), together with the number of claims where correlative relief was granted, and the tax value of relief granted.

Table 1

Year of claim

Number of claims received

Number of these claims where relief granted

Tax value of relief granted *

2010

16

15 (1 claim was withdrawn)

€89.7m

2011

8

5 (1 claim was withdrawn, 1 claim was not allowed, and 1 claim is still open)

€40.9m

2012

13

10 (1 claim was withdrawn, 2 claims were not allowed)

€79.4m

2013

10

5 (3 claims were withdrawn and 2 claims are still open)

€9.2m

2014

12

4 (2 claims were withdrawn, 1 claim was not allowed and 5 claims are still open)

€3.8m

2015

14

6 (2 claims were withdrawn, 1 claim was not allowed and 5 claims are still open)

€15.1m

2016

9

0 (1 claim was withdrawn, 1 claim was not allowed and 7 claims are still open)

-

2017

8

2 (6 claims are still open)

€15.0m

2018

11

0 (11 claims are still open)

€0.0m

2019

6

0 (6 claims are still open)

€0.0m

* Correlative relief may be granted over a number of years and may take the form of increasing losses to be carried forward as well as refunds and off-sets.

Table 2 includes details on the number of open correlative relief claims made by companies for each of the years 2010 to 2019 (up to 30 June 2019), including the quantum of adjustments claimed by these companies and the tax value of relief requested in each year.

Table 2

Year of Claim

Number of open claims

Total Adjustments Claimed

Tax Value of relief requested

2010

0

-

-

2011

1

€207m

€20m

2012

0

-

-

2013

2

€6.8m

€0.9m

2014

5

€425m

€51.2m

2015

5

€125.3m

€14.1m

2016

7

€273m

€30.8m

2017

6

€269.7

€33.7m

2018

11

€211.4

€25.6m

2019

6

€118.3m

€14.7m

Table 3 provides a further detailed breakdown of closed correlative relief cases in respect of claims received after 1 January 2014 which were either granted or withdrawn (full details of correlative relief claimed are not available for the years 2010 to 2013):

Table 3

Year of Claim

Total Number of closed claims

Tax Value of relief requested

Tax Value of relief granted*

Number of Claims where relief Granted in Full

Number of Claims where relief Partially Granted

Number of Claims Withdrawn/ Relief not granted in full.

2014

7

€39.7m

€3.8m

4

0

3

2015

9

€20.2m

€15.1m

5

1

3

2016

2

€9.4m

-

0

0

2

2017

2

€15m

€15m

2

0

0

2018

0

-

-

-

-

-

2019

0

-

-

-

-

-

* Correlative relief may be granted over a number of years and may take the form of increasing losses to be carried forward as well as refunds and off-sets.

Table 4 provides an analysis of the correlative relief claims received by country of adjustment since 1 January 2014 (full details of correlative relief claimed are not available for years 2010 to 2013

Table 4

Country of Adjustment

No of Correlative Relief Claims Received

Amount of tax relief requested

Austria

1

€1.6m

Belgium

2

€2.6m

Canada

2

€11.3m

Chile

1

€5.7m

Denmark

1

€0.1m

France

2

€1.7m

Germany

12

€29.9m

India

1

€0.7m

Italy

14

€112.5m

Netherlands

1

€0.2m

Poland

1

€1.3m

Spain

2

€10.1m

Switzerland

1

€1.7m

UK

6

€46.1m

US

9

€25.6m

Total

56

€251.2

A correlative relief claim can arise where an overseas tax authority imposes a transfer pricing adjustment on one party to an intercompany transaction and taxes profits that have already been taxed in Ireland. In order to avoid double taxation, the Irish party to the transaction may have the option to approach Revenue for a repayment of tax on a unilateral basis under the provisions of a double taxation treaty (that is, without involvement of the overseas tax authority). Given the nature of correlative relief claims, Revenue has advised that it is not possible to provide an estimate of claims which may arise in the future. Revenue will only consider the merits of a claim for correlative adjustment when all the necessary information and documentation required to be submitted with a request for a correlative adjustment is provided.

Finally, the Deputy should note that claim numbers and amount of tax relief granted as a result of corresponding adjustments agreed between Revenue and tax authorities of other countries under the Mutual Agreement Procedures (MAP) provided for in Double Tax Treaties are not included in the above figures.