Thursday 29 June 2017

Show me the money: where corporation tax comes from

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Dan O'Brien

Dan O'Brien

Corporation tax is making the news like never before. That is mostly down to the Apple case - but another topical profit tax issue is why there was such a massive increase in revenues from this tax to the Exchequer last year.

Corporation tax receipts reached an all-time peak in 2015, coming in at almost €7bn. To get to that figure, receipts rose in a single year by almost 50pc, a growth rate that caught everyone by surprise, including the Mandarins of Merrion St who make one-year forecasts for all main revenue streams.

As the first chart shows, this growth rate far exceeds those recorded during the Celtic Tiger boom, when even the most plodding companies could turn a decent profit.

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