Excess corporation tax receipts will be used to increase end-of year surplus, better positioning Ireland for risks ahead
November is the largest tax collection month of the year, and the largest collection month for Income, Corporation and Capital Acquisition Taxes. Figures published today (Tuesday) by the Department of Finance in the November Fiscal Monitor show that taxation receipts in the month were up €741 million or 8.1 per cent on the November target and were €645 million or 7.0 per cent greater than in the same month last year, primarily due to a very strong corporation tax performance.
While cumulative Corporation Tax receipts in the year to date are now €1,408 million above profile, it should be noted that the Fiscal Monitor reports tax outturns against Budget 2019 targets. Based on continuous engagement with the Revenue Commissioners, the Department of Finance increased the Corporation tax target in April by €500 million for the Stability Programme Update 2019 and by a further €300 million in October for Budget 2020. The Corporation Tax over-performance relative to the Budget 2020 target stands at €602 million.
In the year to date, overall tax collections have grown by €3,455 million, or 6.7% year-on-year. This is driven by growth across all major tax heads, primarily Income Tax with growth of €1,664 million or 8.6%, and VAT with growth of €759 million or 5.4%.
Welcoming the figures, the Minister for Finance and Public Expenditure & Reform, Paschal Donohoe T.D., emphasised that:
Minister Donohoe also stated that: