The October Exchequer figures show that tax revenues were €1.3 billion ahead of profile and €2 billion up on the same period last year. Contributing to this was the strong performance of corporation tax receipts, which were nearly €1 billion higher than profiled. The Minister for Finance discussed the continued uncertainty within the corporation tax base despite clarity on international tax reform, as the 12-month rolling Exchequer deficit stands at €8.1 billion.
Corporation tax receipts of almost €1.5 billion were reported in the October tax revenues. This is €964 million higher than profiled. The difference is explained as relating to corporation tax settlement of just under €300 million and larger-than-profiled payments in the life sciences sector. The Department of Finance press release on the publication of the October Exchequer figures, notes that it is not expected that such a high level of receipts will be repeated in future years.
Commenting on the figures, the Minister for Finance, Paschal Donohoe T.D. said:
“Corporation tax receipts in October were higher than expected, once again illustrating the inherent unpredictability and volatility of this revenue stream. Despite the further clarity that now exists with international tax reform, there is still a high level of uncertainty in relation to its impact on Ireland.”
Income tax receipts are noted as being robust, with €2.2 billion collected in October. This is €330 million higher than profiled and €640 million ahead of the same period last year.
The Exchequer deficit recorded to the end-October was €7.4 billion. This represents a €4.2 billion improvement on the same period last year, which is said to be primarily driven by the recovery in tax receipts.
Further details are included in the Fiscal Monitor October 2021.
LOADING...