The Department of Finance has published the Annual Taxation Report September 2022 highlighting the resilience of tax revenue during the pandemic. Overall receipts amounted to €68.4 billion, the highest level ever. Higher corporate tax receipts reflect the importance of pharma, med-tech and ICT in Irish economic activity. The reallocation of existing employees to higher wage sectors and/or full-time employment was a driver of the robust performance of income tax.
Recognising that the multinational sector accounts for a large share of both corporation tax and income tax, the report identifies this concentration of risk as a significant vulnerability for the public finances.
Commenting on the report, Minister for Finance, Paschal Donohoe, said:
“The Annual Taxation Report is an important contribution to discussions on how taxation policy can respond to economic challenges, and will complement the work of the Commission on Taxation and Welfare. The analysis shows that, while the headline figures are very positive, our tax system contains significant structural vulnerabilities, especially in respect of income tax and corporation tax. It is essential that we rebuild our fiscal buffers to ensure that we are able to weather future shocks that could impact on these receipts.”