The first €3 billion tranche of the Apple tax money landed in State coffers last month, boosting the Government’s finances ahead the election.
The latest exchequer returns data from the Department of Finance show the Government collected €3.5 billion in corporate tax receipts in October, a 179 per cent jump on the same month last year.
The department later confirmed that approximately €3 billion accrued from the European Court of Justice’s (CJEU) recent tax ruling against Apple in which it ordered the company to pay the Irish State billions of euros in back taxes and interest.
Minister for Finance Jack Chambers signalled last month that he expected about €8 billion of the €14.1 billion windfall to be received this year with the remainder coming in 2025.
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The Government is forecasting a record €25 billion surplus this year as a result of the Apple tax money, which has allowed for a generous giveaway budget in advance of an election, which is expected to be called later this week.
“This is another really strong set of exchequer returns with steady growth across most revenue streams due to our well performing economy and full employment status,” Minister Chambers said.
“The figures also now for the first time take account of the receipts arising from September’s ECJ ruling. As Minister for Finance, I am developing a framework for how these windfall receipts can be best used in the interest of our people, communities, businesses and our country,” he said.
“In Fianna Fáil we recognise our exchequer performance and these windfall revenues gives us a really strong platform to drive further economic activity and deliver prosperity for more families and households,” Mr Chambers said.
The latest exchequer figures show that on a cumulative basis receipts from the business tax, more than 50 per cent of which come from just 10 large multinationals, amounted to €21.4 billion for the 10 months to October, €5.6 billion or 36 per cent up on the same period last year.
Overall the Government amassed €76.3 billion in tax revenue during the 10-month period which was 15 per cent or €9.9 billon in advance of the same period last year.
The department said the improved performance was driven primarily by income tax, corporation tax, VAT and excise duties.
On a cumulative basis, income tax receipts rose by 7.3 per cent to €27.6 billion reflecting the State’s strong jobs market while VAT, often seen as a proxy for consumer spending, rose by 7 per cent to €18.3 billion.
The department said the exchequer recorded a surplus of €1.3 billion in October compared to a deficit of €0.9 billion in the same period last year, an improvement of €2.1 billion.
Total gross voted expenditure to the end of October amounted to €80.9 billion, which was €8.7 billion (12.1 per cent) in advance of the same period in 2023 and €3.2 billion in advance of what the department had forecast at the start of the year, reflecting ongoing overruns in health and other departments.
“Corporation tax receipts for October were heavily distorted by the receipt of proceeds following resolution of the Apple tax case. However, even after stripping out these receipts, corporation tax returns year to date have again outperformed,” Peter Vale, tax partner at accountants Grant Thornton, said.
“The US election may have a significant impact on future corporation tax receipts, regardless of the outcome,” he said, noting both candidates are likely to push for tax reform that could adversely impact Ireland’s attractiveness from a tax perspective.
Tom Woods, head of tax at KPMG, said the outcome of the US election was undeniably important to Ireland. “However, our standing as a stable and secure location for investment should help mitigate the impact of political uncertainties in the US. Naturally, Ireland’s next government must continue efforts to enhance the country’s appeal as an investment destination,” he said.
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