Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Tax revenues at end-October 2012 were €96 million or 0.3% ahead of profile in aggregate terms. Both income tax and corporation tax are performing marginally ahead of expectations in the year to date and, given that these two tax-heads combined account for over half of total Exchequer taxes, this is a positive development.

Income tax receipts were €69 million or 0.6% ahead of profile at end-October. However, it is the case that income tax has weakened somewhat since the mid-year point, particularly over the third quarter. Of course, there can be significant variation in receipts in different months but the key point is that, on a cumulative basis, income tax is ahead of profile at end-October. As income tax returns from the self-employed are concentrated in the month of the November, the outturn for this month will be vital in determining the overall position for income tax come year-end. November is the most significant month of the year for income tax, with €2.5 billion or 16% of total income tax revenues profiled for collection in this month.

Similar to the situation with income tax, corporation tax is also ahead of profile on a cumulative basis at end-October. Receipts in the first ten months of the year were €26 million or 1% better than expected. As with income tax, corporation tax receipts have disappointed a little in recent months, which was almost exclusively due to a significant shortfall of €225 million last month. However, this shortfall was not unexpected, based on advance information supplied by the Revenue Commissioners to my Department and relayed to me earlier this year.

Again, November is by far the most significant month of the year for corporation tax, with €1.2 billion or 30% of the annual total profiled for collection in the month. The outturn in November will in all probability determine whether the annual target is achieved.

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