The highly concentrated nature of Ireland’s corporation tax receipts represents ‘an unacceptable level of risk’, according to the Irish parliament’s public accounts committee.
The highly concentrated nature of Ireland’s corporation tax receipts represents ‘an unacceptable level of risk’, according to the Irish parliament’s public accounts committee.
The committee has published a new report on Ireland's corporation tax receipts, following a review carried out by the comptroller and auditor general. Corporation tax accounted for 15% of total tax receipts in 2016, with 70% of all corporation tax paid by the top 100 companies and 37% paid by just 10 companies.
The report states: ‘The highly concentrated nature of corporation tax receipts represents an unacceptable level of risk to the sustainability of the corporation tax regime and to overall exchequer income.’
The committee recommended that the Department of Finance conduct a review of the corporate tax system and should consider the introduction of a 10 year time limit or sunset clause, as well as other restrictions in respect of losses carried forward.
The report also said the Irish Revenue had not been able to provide accurate details of PAYE paid by participators in close companies. The committee was ‘not satisfied’ that the Revenue can demonstrate that the application of the close company rules is achieving its intended purpose.
The highly concentrated nature of Ireland’s corporation tax receipts represents ‘an unacceptable level of risk’, according to the Irish parliament’s public accounts committee.
The highly concentrated nature of Ireland’s corporation tax receipts represents ‘an unacceptable level of risk’, according to the Irish parliament’s public accounts committee.
The committee has published a new report on Ireland's corporation tax receipts, following a review carried out by the comptroller and auditor general. Corporation tax accounted for 15% of total tax receipts in 2016, with 70% of all corporation tax paid by the top 100 companies and 37% paid by just 10 companies.
The report states: ‘The highly concentrated nature of corporation tax receipts represents an unacceptable level of risk to the sustainability of the corporation tax regime and to overall exchequer income.’
The committee recommended that the Department of Finance conduct a review of the corporate tax system and should consider the introduction of a 10 year time limit or sunset clause, as well as other restrictions in respect of losses carried forward.
The report also said the Irish Revenue had not been able to provide accurate details of PAYE paid by participators in close companies. The committee was ‘not satisfied’ that the Revenue can demonstrate that the application of the close company rules is achieving its intended purpose.
