Corporation tax boost for Irish exchequer

Government revenues from corporation tax, excise duties and VAT rose significantly in November, according to the latest figures from the Irish exchequer.

November is traditionally one of the most profitable tax months for the exchequer, as many small firms and self-employed professionals settle up their tax liabilities and larger firms pay their outstanding VAT. However, income tax revenues surprisingly faltered last month as the amount of tax collected from self-employed individuals fell short of what was expected.

Income tax receipts took in €98m less in November than anticipated, due largely to lower than expected receipts from the self-employed community. The Department of Finance has confirmed it is examining the issue.

Corporation tax revenues hit €2.23bn last month, raking in almost 9% more (€181m) than anticipated. For the full 11 months elapsed this year, corporation tax revenues outperformed all other main tax receipts, breaking the €7.65bn mark – €400m more than was forecast for the period.

According to Conall MacCoille, chief economist at Davy, corporate tax revenues in Ireland were being “sustained and beating expectations”.

Nevertheless, the lower than expected self-employed tax receipts has meant overall income tax revenues for the 11 months of 2017 so far total €18.28bn, around €251m (1.4%) below forecasts.

In November, VAT returns recouped €2bn, which was €83m (4.3%) above target, despite fears from industry organisations that cross-border shopping – driven by the decline in value of sterling – would negatively impact on government revenues. The total amount of VAT collected so far this year is €13.22bn, which is in line with expectations.

A spokesman for the Department of Finance confirmed there was no impact of cross-border shopping on the VAT figures, as was first feared.

Excise duties totalled €623m in November, raking in €67m (12%) more than anticipated, taking its annual total to €5.57bn, or 2.1% more than expected.

Date published 11 Dec 2017 | Last updated 12 Dec 2017