Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I accept there has been a step change in corporate profitability in the Irish economy and the global economy. I am aware of the changes to which the Deputy referred and the different companies that have done really well, particularly since 2019. However, if there has been a step change in corporate profitability, there has also been a step change in the amount of corporate tax that is paid in Ireland and the increase in that amount is equally stark. In 2011, albeit this was the low point in profitability for many reasons, we were collecting €3.5 billion in corporate tax. In 2022, we expect that figure to exceed €20 billion. Yes, there has been a significant increase in the profit companies are accruing across the world but for that profit that relates to and is associated with economic activity in Ireland, the tax we are collecting has gone up exponentially as well across that period. I make the case to the Deputy that even though we have had a flat rate across the period, and the rate is lower than he would like, the amount of tax we have collected, because of the stability of that rate, has probably gone up at a faster rate than the change in corporate profitability about which he is concerned.

Regarding how we calculate the different assumptions we have about corporate tax, I will get the Department to send the figures directly to the Deputy. We have a concept called the gross operating surplus within the economy, which is a macroeconomic forecasting figure we use in our economic models. It shows an expectation that the gross operating surplus in our economy will go up from €348 billion this year to €383 billion next year. That has helped us to put together the corporate tax forecast for next year of €22.7 billion. Before Report Stage, I will ask my Department to share those figures with the Deputy and give him an explanation of where they come from.