Oireachtas Joint and Select Committees

Thursday, 22 February 2018

Public Accounts Committee

Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed)

9:00 am

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail) | Oireachtas source

I want to ask a few questions that relate directly to Dr. Keegan's presentation. I am following his document. Paragraph 1.4 on page 7 addresses trading income versus passive income. Passive income is generally a term for income derived from investment - rental income from property investments - that is subject to a tax of 25%. For a company to access the 12.5% rate of corporation tax on its trading profits, it must demonstrate a degree of regular commercial trading activity associated with generating the income. How does a company say it is trading? How much of its income has to be trading income versus passive income to qualify for the 12.5% rate?

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