Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

In 2015, the receipts from corporation tax were just under €6.9 billion. This equated to approximately 15% of the overall Exchequer tax receipts, which is in line with OECD averages. However, the final figure reflected a substantial increase on what had been forecast and on the prior year's amount.

In order to get a better understanding of the increase in corporation tax receipts, earlier this year the Revenue Commissioners analysed tax return and payment data for 2014 and 2015. Although most of the tax returns for 2015 are only being filed now, Revenue examined the payments data to see if there were indications of trends. The Revenue analysis of the increase in corporation tax receipts showed that the main factor driving the increased receipts in 2015 was likely to be profitability.

In line with most small open economies, corporation tax receipts in Ireland are highly concentrated, with a high proportion of receipts coming from the multinational sector. The Revenue Commissioners have advised that approximately half of the increase in corporation tax receipts in 2015 came from a small number of large multinationals.

Although corporation tax is concentrated in the multinationals sector, it is fair to say that the basis for the additional corporation tax being paid was relatively broad based with improved receipts across a number of different sectors and sized firms, including indigenous ones. This was also evidenced in the Revenue report, which showed that payments from indigenous companies were growing at a similar rate to the payments from multinationals, albeit at lower monetary levels.

For 2016, the Department has forecast that corporation tax receipts will come in at approximately €7.5 billion, which represents approximately 15% of Exchequer tax revenue. For 2017, modest growth of 2.7% is forecast, which would bring the receipts to just over €7.7 billion. It is clear, therefore, that the Minister and the Department are taking a prudent approach regarding the levels of corporation tax receipts and are not returning to the days of "When I have it, I spend it."

It is my understanding that the Committee on Budgetary Oversight will be examining a number of issues relating to corporation tax in 2017, including the sustainability of the receipts. As noted in the Minister's Budget Statement, he asked Mr. Seamus Coffey to perform a review of the corporation tax code. This review is ongoing and, as part of it, the Minister has asked Mr. Coffey to examine the corporation tax receipts. Therefore, although the specific report that has been requested by the Deputy will not be produced, it is clear that the matter has been and is currently being scrutinised.

Given the fact that an analysis has been performed by the Revenue Commissioners and the matter will be further examined in the forthcoming review of the corporation tax code, it is not proposed to accept the amendment. My understanding is that the Coffey report will come towards the end of the second quarter of 2017 and will be published thereafter.