The Department of Finance's annual Taxation Report describes the concentration of Corporation Tax receipts from a small number of multinational companies as a"significant vulnerability for the public finances."
The Taxation Report says that any shock to the multinational sector would also result in a"substantial loss" of Income Tax, because of the reliance of the system on higher earners, many of whom work for multinationals. The report reveals that the total amount of financial support provided by Government to cope with the direct and indirect impact of Covid-19 from 2020-2022 came to €48 billion.
The report notes that Corporation Tax last year - at just over €15 billion - was €4.4 billion, or 41%, above pre-pandemic levels.Speaking at the publication of the report this afternoon, the Minister for Finance Paschal Donohoe said he was"fully committed" to sticking to the parameters set out in the Summer Economic Statement in the upcoming Budget.
When asked if the Budget would target supports in response to the energy crisis on vulnerable groups, the Minister said there will be measures aimed at vulnerable groups but that broad measures to benefit more people will also be introduced.