New data published by the Revenue Commissioners yesterday highlights that the corporate tax take became even more concentrated in 2017. The research shows Ireland’s dependence on a relatively small number of companies for the bulk of its corporation tax receipts. 

In total, €8.2bn in corporate tax receipts were collected in 2017, an increase of 12% on 2016, and representing 16% of total net tax revenues. The top ten payers of corporate tax represented 39% of the corporation tax take in 2017.

Although 2015 represented a high watermark on this metric (41%), it remains a very high number. Indeed, tax receipts from the top-ten payers have more than doubled over the past four years. 

The research shows that Manufacturing and ICT experienced the largest increase in 2017, sectors that are dominated by multinational companies.

According to Goodbody Stockbrokers, "With threats emanating from US corporate tax reform, EU efforts on digital tax and the CCTB and the OECD BEPS process, Ireland cannot take the current level of corporate tax receipts for granted. The Department of Finance, the Fiscal Advisory Council, among others have warned about this issue of concentration already. One hopes that their warnings will be heeded."

Source: www.businessworld.ie