Dr. Mark Cassidy:

Uncertainty is the key element. A decline could come about as a result of either firm or sector-specific circumstances. It could come about because of a deterioration in the global trading environment or because of a change in the international taxation environment. Of course, Ireland participates fully in global taxation regimes and environments. There are a number of possible sources of uncertainty. Our advice has always been that it is very likely that some element of the surge in corporation tax revenues over the past four to five years could represent a temporary or transient windfall element and that it would be much more prudent for that element to be put aside and saved rather than committed to permanent expenditure increases. The extent of the increase in corporation tax revenues is very similar to the surge we saw in construction taxes prior to the boom. The increase in corporation tax revenue has contributed 40% to the overall increase in tax revenue since 2014 to 2015, which is significant.