Martin Ferris (Kerry North, Sinn Fein)
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Question 147: To ask the Minister for Finance the return to the Exchequer if the profits from offshore exploration companies were taxed at 48% and subject to a 7% royalty [36544/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the information furnished on corporation tax returns does not generally require the yield from a particular sector or sub-sector of economic activity to be identified. In these circumstances the amount of tax revenues collected in respect of the activities specified in the question cannot be readily identified from the overall corporation tax yield. There is, therefore, no statistical basis on which the Exchequer impact of the changes mentioned in the question could be estimated. I am further informed by Revenue that even if the basic information was available the obligation on the Revenue Commissioners to observe confidentiality for taxpayers and small groups of taxpayers might preclude them from disclosing it.

Section 45 of Finance Act 2008 introduced new tax provisions in relation to profits derived from petroleum exploration and production activities. A new tax called a "profit resource rent tax" will apply at rates of 5%, 10% or 15% in addition to the corporation tax rate of 25% that currently applies to profits from petroleum activities. It will apply when profits exceed certain defined levels. This will be worked out by a formula that relates the profits from a petroleum field to the capital investment in the field. The new tax provisions give effect to the Government Decision of 30 July 2007 that a new regime would apply in relation to petroleum profits from discoveries made from 2007 onwards.