McGrath warns about corporate tax as receipts fall

• Published date: 05 April 2024
• Author: EOIN BURKE-KENNEDY
• Publication title: Irish Times (Dublin, Ireland)

Economics Correspondent Minister for Finance Michael McGrath has warned that the era of over-performing corporate tax “is coming to an end” as new figures showed a 25 per cent decline in business tax receipts for the first quarter of the year. The latest exchequer returns, published by the Department of Finance, showed corporate tax, now the Government’s second largest revenue source, generated €2.4 billion for the three months. This was €805 million down on the same period last year. In 2023, corporation tax receipts were down on an annualised basis for several months before finishing the year at a record €23.7 billion, above what the department had forecast and against a headwind of slowing global growth

‘Inherent unpredictability’ “While it is expected that the fall in corporation tax this month relates to timing issues and is likely to be made up later in the year, it serves to remind us of the inherent unpredictability in what is a highly concentrated revenue stream,” said Mr McGrath . He added that the concentration of the receipts around a small number of big multinationals underpinned the Government’s decision to establish two longer-term savings vehicles to future-proof the State’s finances.

Mr McGrath and Minister for Public Expenditure Paschal...