Revenue Report ‘just the latest warning on Corporation Tax overreliance’ – Doherty
Sinn Féin Finance Spokesperson Pearse Doherty TD has said the Revenue Commissioners’ Annual Report, which shows Corporation Tax increased by €2.2bn last year and now accounts for 19% of tax revenue in the State, is simply the latest warning that the Corporation Tax surge is an unsustainable phenomenon that should not be relied on to fund essential services.
Deputy Doherty said:
“The stark figures in the Revenue Commissioners’ Annual Report are yet another reminder that there is an increasing element of our tax base that is unpredictable and unsustainable. Planning, as Fine Gael are, to use this money to fund recurring services like health and education is deeply irresponsible.
“The extra finance for the State is welcome, but international bodies like the OECD are on the verge of proposing new rules on tax allocations which might see Ireland’s Corporation Tax take reduce significantly. That is apart from the obvious danger of relying on a tiny number of companies who are liable to a drop in profits as part of a normal economic cycle.
“The logical thing to do is to divert any windfall into capital spend given the housing crisis while it is still coming in.
“The overreliance on Corporation Tax receipts for day to day spending despite the multitude of warnings is completely reckless. The image of Minister Pascal Donohue as prudent must now be well and truly discarded. He and Fine Gael are reckless with the people’s money- writing blank cheques on the back of temporary receipts.”