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

I have read commentary from fairly able people who argue the case as Deputy Ross has argued it. However, when I raise it with the Revenue Commissioners, I am told those theories are not correct. They tell me that the booming economy and the declining exchange rate has brought about a situation where all companies, multinational and indigenous, are trading very profitably. As a result of their profitable trading, they have more profit and pay more tax. The most serious question from my point of view is whether this is a windfall or something that can go into the base for subsequent years. The Revenue Commissioners assure me that this is not windfall and that it can be put into the base for subsequent years because this is the new situation. While that is the advice, we put in a very low percentage increase for corporation tax next year over this year's base when we were constructing the 2016 budget. It is something like 6% or 7%, which is not much more than the growth rate. We need to be prudent about this. However, the Deputy should not be surprised if next year corporation tax again exceeds the estimate for the 2016 budget because we are putting in very prudent figures.

I rely on Revenue to tell me about taxes and to predict tax flows. Revenue is predicting that these tax flows are not windfall and that they will continue into next year and subsequent years in similar trading conditions.

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