Dáil Éireann Debate, Wednesday - 10 April 2024
14. Deputy Paul Murphy asked the Minister for Finance if the projection for corporate tax revenue in 2024 and 2025 is €24.5 billion and €25.8 billion (details supplied) respectively; the estimated gross trading profit before taxation in 2024 and 2025; to provide a monetary breakdown of projected total capital allowances and deductions before taxation in 2024 and 2025; and if he will make a statement on the matter. [15248/24]
Amharc ar fhreagraI am advised that my Department does not produce projections for gross trading profits or the usage of capital allowances. Detailed data on the calculation of corporation tax liabilities, including on these metrics, is published by the Revenue Commissioners.
This can be found on Revenue’s website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/ct-calculation.aspxx. The most recent year for which data is available is 2021.
My Department’s corporation tax projections are underpinned by macroeconomic forecasts of gross operating surplus: this is a national accounts concept which is not directly equivalent to gross trading profits.
However, for the Deputy’s information, the most recent projections for gross operating surplus, at the time of Budget 2024, were for approximately €435 billion in 2024, rising to €460 billion next year. These projections will be reviewed as part of the forthcoming Stability Programme Update, which will be published in the coming weeks.
At the time of Budget 2024, corporation tax was projected to reach €24.5 billion for this year and €25.8 billion for 2025. These projections will also be reviewed as part of the Stability Programme Update.
The Deputy will be aware that, in the Q1 Exchequer returns which were published last week, corporation tax was more than €1 billion behind what had been profiled based on that figure of €24.5 billion for the year as a whole. However, I am advised that this is likely due to a timing issue. In other words, there may be a corresponding increase at a later point in the year that offsets this shortfall.
