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
Seán Fleming (Laois, Fianna Fail)
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I am moving on to page 28 of the document. I am making it easy for people to follow what I am referring to. I refer to one of the middle paragraphs and to the knowledge box. It states:
When a company develops its own IP, and uses that in the manufacture of a product incorporating that IP, the profits on that product are taxed at a special reduced rate. In Ireland that reduced rate is 6.25%, that is to say, half of the 12.5% standard corporation tax rate.
There is therefore a special reduced rate. I think Dr. Keegan mentioned in his opening statement the 12.5% corporation tax rate, passive income being taxed at 25% and capital gains being taxed at 33%. However, this figure is only taxable at 6.25%, and we know from the briefing note we received in the afternoon that Revenue says about €5 million was in the system in 2016. It does not have more recent figures. That is, again, a very attractive-----