Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I will ask Mr. Coffey two final questions. Has the IFAC been able to liaise with the Department of Finance on its under-profiling of income tax receipts, which we understand was due to it misjudging the cost of the USC tax cut last year? If Mr. Coffey has the information, will he enlighten the committee as to how much the USC tax cut amounted to and also if he has any other information to help us understand why income tax receipts are €200 million below profile?

The final question relates to the report the IFAC produced, which was published yesterday and which I am currently going through, specifically the proposal for a cap of 80% of income against which capital allowances for intangible assets, including intellectual property rights, much of which have been shifted onshore in recent years and any other interest expenses may be deducted from profits by these companies. There was a change in terms of a relaxation of the rules. I understand the IFAC argues that it should go back to where it was, namely, the 80% level. Does the IFAC suggest that would take place in budget 2018? Is that is what is behind the proposal in the report? Does Mr. Coffey have any further information to give to this committee about the tax forgone as a result of the shifting of intellectual property into the State which allowed some of the multinational companies to write down their profits to very low levels and in some cases possibly to neutralise their tax liability altogether?