Oireachtas Joint and Select Committees

Thursday, 1 June 2017

Public Accounts Committee

2015 Annual Report of the Comptroller and Auditor General and Appropriations Account
Chapter 13 - Revenue's Review of Medical Consultants' Tax Affairs
Chapter 14 - Research and Development Tax Credit
Chapter 16 - Deferral of Tobacco Stamp Liability

9:00 am

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
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One can claim it back. What I found interesting about the chart on page 142, which feeds directly into what Mr. Cody is saying, is that when one goes back to 2009 or 2010, when the repayments system really started to kick in, practically all this was by way of corporation tax forgone and there was very little in payments. When I look at the figure for 2014, the only year for which we have information available, in recent years, 2013 and 2014, the balance of this scheme has changed substantially in that I would estimate, looking at that chart, 60% of that €553 million is now through repayments and only 40% is by way of tax forgone. I would have said that in the past two years, that is a dramatic shift in the operation of this scheme and the nature of the claimants.

To give an example, with the 1,600 cases in 2014 worth €553 million, the average was €345,000 per case. Some 40% of that was dealt with by way of tax forgone, an average of €138,000. The tax repayments are €207,000. Mr. Cody has just given us figures for 2015. He said there were only 1,534 cases. It has now gone up €150 million to €708 million in that year, so the average amount is €461,000. I am assuming it is still around 60%. Is there a change in the percentage of what is paid out versus tax forgone in the past year or two? It has really gone very high.