2015 set to be best year yet for corporation tax take, exchequer returns show
2015 is shaping up to be the best year yet for corporation tax receipts, the Department of Finance said.
The amount of money collected from the profits of big business is 74pc ahead of target for the year so far, with €800m coming in last month that wasn't expected.
Overall, the tax take so far this year is €2.5bn ahead of target, better than the €2.3bn out performance Finance Minister Michael Noonan had predicted for the year as a whole in last month’s Budget
Explaining the €800m surge last month, a Department spokesman said companies usually apply for tax rebates during October, and the Department therefore forecast a flat month.
But this didn’t occur. And with November being a busy tax month, it is also believed that some money came in early.
Exchequer Returns for October show €4.7bn had been collected in corporation tax in the first ten months of the year, compared with a target of €2.7bn.
The Department attributed the over-performance throughout the year to improved trading.
“It is increased trading. They’re just making more money and more profits, and more money and more profits than we expected,” a spokesman said.
“This will end up being the biggest year ever in relation to CT.”
The tax take for the year so far is €35.1bn, €2.47bn better than expected. Some €2bn of that is related to corporation tax.
Income tax is 0.7pc ahead of target, or €95m, to €13.9bn, while VAT is 1.7pc, or €164m better, to €10bn.
In Budget 2016, Finance Minister Michael Noonan predicted the tax take for the year would come in at €47.23bn - €2.3bn better than what was projected in Budget 2015.
Davy Stockbrokers pointed out that the bulk of the over performance this year is from corporation tax.
“The Department of Finance indicates that rebates and refunds on corporation revenues were not claimed as expected this month,” said Davy economist Conall Mac Coille.
“So some of the strength in corporation taxes in October could reflect a timing issue. Also, payments expected for November may have come early.
“Nonetheless, a large part of the €800m in extra corporation taxes must reflect the buoyant multinational sector.”