Exchequer returns show corporation tax surge in November

Receipts for corporate tax were €470m above target

Tax receipts for the month of November were €631m ahead of target.

That is according to the Government's Exchequer figures, which say the surge is due to a "very strong performance" of corporation tax.

For the year to the end of November, total tax receipts were €51.4bn - while expenditure is marginally ahead of profile.

The Department of Finance says November is the "most important month of the year for corporation tax collection".

Corporation tax receipts of €2.7bn were collected last month, €470m above target.

The data is consistent with figures from the Central Statistics Office (CSO), which show an increase in corporate profitability this year.

However some of the corporate tax increase is due to one-off factors, which were signaled in the budget.

The department says around €700m of corporation tax receipts for this year are assumed to be 'one-off', and will not happen next year.

Finance Minister Paschal Donohoe says: "At the time of the budget last October, I announced that corporation tax receipts would exceed original expectations.

"The actual figures for November follow a very strong performance in October, and this means that corporate tax receipts for this year will outperform our most recent expectations."

Burt he adds: "These additional receipts are not being used to finance additional expenditure.

"Instead, all of the excess will be set aside to reduce - and possibly eliminate - the headline deficit, putting Ireland in a stronger position and better able to meet the challenges that may lie ahead."

Finance Minister Paschal Donohoe | File photo

On the spending side, gross voted expenditure to the end of November is €56bn, €73m ahead of profile.

On this, Minister Donohoe says: "Public expenditure is being managed within expectations and the annual increase reflects the Government’s commitment to the delivery of improved public services.

"It also reflects the importance the Government attaches to addressing infrastructural bottlenecks in order to boost resilience - especially important given the UK’s forthcoming exit from the European Union - and to maintain continued improvements in our living standards."