Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I do not have information relating to the case. As I said, I imagine that at this point it will probably be next year but that is just my judgment. We do not have guidance regarding when it will happen.

Deputy Boyd Barrett made reference to the note I shared with him regarding trying to provide a range on the impact of corporations and large employers on our economy in 2022 and 2023. At the base of the note, it states very clearly that the gross operating surplus he referred to is not a measure used in tax calculations. To be very clear, this is not the same as profitability. It is not an estimate of taxable profits. It does not take account of capital allowances or interest deductions. The figure he referred to is one we use in trying to assess the impact of larger companies on our economy but it is not a figure that is equivalent to taxable income. I wanted to be very clear on that point.

On the impact of these companies on our economy, the one word I did not hear referenced in contributions from the Opposition is that these companies we are referring to are huge employers and taxpayers.

Amid the debate on corporate tax receipts and the different structures and reliefs referred to, mainly in Deputies Barry and Boyd Barrett's amendments, all of the focus is on tax and on how we can increase tax in respect of the elimination of intragroup transfers to which I know Deputy Boyd Barrett has a principled opposition and that I have heard on many different occasions. All of these huge corporations, which are huge global presences, have a presence in Ireland that leads to the employment of many tens of thousands of people.

Deputy Barry asked about the data that are available to indicate that, if these tax rates were to change in the way we want, it would have an impact on their employment and investment in Ireland. The only data I can give him is my direct experience. Again and again, I have seen that the level of tax companies pay in Ireland and the level of tax they expect to pay in the future are very important ingredients in their presence in our country, their investment in our economy, and the number of people they employ in Ireland. In my engagement with many of these companies over many years, the level of tax they pay and the predictability of that tax in the future are very important factors in their presence in our country.

I agree with Deputies Boyd Barrett and Barry that it is not the only factor. The quality of our workforce, education levels in our country and our long-term relationship with many of these employers are also very important ingredients in why Irish companies develop their scale and presence in Ireland and why very large companies have also been present in Ireland for so many decades.

Regarding the very large increase in corporate profitability referred to by both Deputies, it is important to note there has also been a sixfold increase in the level of corporate profitability in Ireland, so as global corporate profitability has gone up, so has the amount of corporate tax paid in our country.

Regarding Deputy Whitmore's amendment, which looked at the impact of corporate tax on our total tax take, it has grown. The Deputy spoke about the need for a plan to deal with any vulnerability we may have as a result of our reliance on corporate tax receipts. We do have a plan. It is why we have the National Reserve Fund. It is why we have set aside €4 billion to go into the National Reserve Fund for next year because the predictions regarding some of this being one-off tax revenue are coming from me and my Department. This is why, for next year, we are making the decision not to spend €4 billion of those corporate tax receipts. It is why we made the decision this year not to spend €2 billion of it because I have acknowledged this risk is there. It is also the reason, as our corporate tax receipts have increased again since 2019, we have not transferred those higher levels of corporate tax receipts to ongoing permanent spending or ongoing permanent tax reduction. It is why we are running a surplus this year. It is why I want to run another surplus next year. It is why we have put €6 billion into the National Reserve Fund. The safest insurance policy in respect of those higher levels of corporate tax receipts is not to get into the habit of spending them, and we are not doing so, because we are running a surplus and setting up two different deposits into the reserve fund for this year and next year in total equal to €6 billion.

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