Oireachtas Joint and Select Committees

Tuesday, 16 June 2020

Special Committee on Covid-19 Response

Covid-19: Impact on the Fiscal Position

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

On corporation tax, the IFAC document outlines that 50% of corporation tax receipts cannot be explained by the growth in the domestic economy. Is the council more concerned about corporation tax issues now than it was last year? Given that none of these projections take Brexit and the potential cliff edge at the end of the year into account, has anything in recent weeks increased the council's concerns in regard to Brexit? These issues are all somewhat connected. Do the Exchequer returns we have seen, which showed a higher proportion of corporation tax than was expected and a smaller drop-off in income tax than was expected, with a €500 million boost there, change the council's view with regard to the overall deficit? I believe IFAC still projects that it will be €23 billion whereas the Central Bank is talking about €28 billion. I believe it will be in excess of €30 billion at the end of the year.

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