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Tax take E96m ahead at end October

Friday, November 02 16:56:36

Exchequer returns for the ten months to the end of October show that the Government took in just under E96m in taxes than it had previously targeted.

The Exchequer deficit came in at E14.07 billion for the period compared to E22.2 billion in the same period a year ago.

Tax revenues at end-October 2012, at E28.35 billion, are E1,680 million (6.3pc) ahead of the same period last year and E96 million (0.3pc) ahead of profile.

On an adjusted basis, that is adjusting for delayed corporation tax receipts from December 2011 and the PRSI/income tax reclassification issue, tax revenues are an estimated 4.3pc up year-on-year.

Three of the "big four" sources of tax revenues (VAT, income tax and corporation tax) continue to perform above expectations with 10 months of the year passed.

However, it is the case that two of those three - corporation tax and income tax - recorded shortfalls in the month of October.

VAT is now E106 million (1.3pc) ahead of target cumulatively and on a year-on-year basis receipts are up E286 million (3.5pc).

VAT receipts have been above target in three of the past four months.

Income tax is E69 million (0.6pc) ahead of profile at end-October, and is up an estimated 8.6pc year-on-year on an adjusted basis. November is the most important month of the year for income tax, given the concentration of returns from the self-employed, and receipts in this month will be crucial in determining the overall outturn for the year as a whole.

Close to E2.5 billion in income tax is profiled for November.

Corporation tax is E26 million (1pc) ahead of profile in the period to end-October but is now down 2.5pc year-on-year on an adjusted basis.

While October's monthly receipts were significantly lower than profiled, (down E225 million) this was not unexpected based on advance information supplied by the Revenue Commissioners to the Department of Finance, it said.

As with income tax, November is the key month of the year for corporation tax. Close to E1.2 billion (or 30pc) of the annual target is profiled for collection in this month.

Taken together, the four smaller tax heads - Stamp duty, capital gains tax, capital acquisitions tax and customs are slightly up on target at end-October 2012.