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Warnings of likely decline in corporation tax receipts after 'very strong' 2019 performance

Exchequer figures released today show a Government surplus of €1.5 billion for last year. Tax r...
Stephen McNeice
Stephen McNeice

18.13 3 Jan 2020


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Warnings of likely decline in...

Warnings of likely decline in corporation tax receipts after 'very strong' 2019 performance

Stephen McNeice
Stephen McNeice

18.13 3 Jan 2020


Share this article


Exchequer figures released today show a Government surplus of €1.5 billion for last year.

Tax receipts for 2019 were over €59.3 billion - €1.4 billion ahead of original expectations due to a "very strong" corporation tax performance.

The Finance Minister said it leaves Ireland in a better position for risks ahead.

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However, Paschal Donohoe also warned we can't rely on the same strong corporation tax receipts going forward.

He said: "I expect to see corporation tax receipts decline in the future - I believe that will happen.

"I think we could see that happen for two different reasons: either international tax changes in ways that we can't control, or levels of corporate profitability among some very big companies could begin to decline."

Reacting to the figures, Sinn Féin finance spokesperson Pearse Doherty suggested that the increased corporation tax takings should not be used to fund current expenditure.

He argued: “The Corporation Tax surge is an unreliable phenomenon that should not be used to fill holes in the Government’s own budget, but instead to invest in the economy.

“The logical thing to do - in the face of an unprecedented crises in health and housing - is to divert any windfall into capital investment while it is coming in and use this money to build homes, and to invest to build capacity in our public health system to address the challenges we face."

Main image: File photo of Finance Minister Paschal Donohoe. Photo: Sam Boal/Rollingnews.ie

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