The 12-month rolling Exchequer deficit reported in the August Exchequer returns is €9.5 billion. August is not usually a significant month for corporation tax receipts, however unusually this year €1billion was received, €797 million higher than profiled.
The higher than expected receipts are due to a number of payments from some large companies, mainly in the ICT sector. It is not expected that such high receipts will be repeated in future years. Commenting on the unusually high corporation tax receipts Minister for Finance, Paschal Donohoe TD said:
“Corporation tax receipts in August were unusually high, illustrating the inherent unpredictability and volatility of this revenue stream. As I have said many times, we cannot rely on such receipts over the medium to long-term. The best form of defense against the potential reduction in corporation tax is to reduce the deficit. Budget 2022 will build on the framework set out in the Summer Economic Statement, showing a credible path towards fiscal sustainability while allowing continued investment in our public services, particularly in capital infrastructure.”
Tax revenues in August were €4.2 billion, €866 million, or over 25 percent higher than profiled and €1.2 billion up on the same period last year. Income tax receipts continue to be robust and were €140 million or 6.7 percent higher than profiled in August.
See the Fiscal Monitor August 2021 for detailed information.
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