Micheál Martin (Cork South Central, Fianna Fail)
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To ask the Minister for Finance his views on the trend in income tax and corporation tax receipts in recent months; and if he will make a statement on the matter. [50495/12]

Michael Noonan (Limerick City, Fine Gael)
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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.

Michael McGrath (Cork South Central, Fianna Fail)
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This is a critical month in terms of the Exchequer returns both for income tax and corporation tax. Overall, the figures are on target, which is to be welcomed. The corporation tax receipts in October were a concern and, while Revenue pointed out it was not unexpected, that is not the same as saying it is going to reverse over the coming months. I know from talking to many small business owners that they are really struggling when it comes to siting down with their accountants, finalising their returns and making the payments to Revenue. Is the Minister confident, based on the information he has to hand, that November will hold up and the closing position will be on target overall in terms of tax receipts?

Michael Noonan (Limerick City, Fine Gael)
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Profiling is an inexact science but the profiling section in the Department of Finance has been very accurate, month after month this year. While there are swings and roundabouts within margins, overall, they have got it pretty well spot on. I have confidence what they are profiling for November can be achieved, although there are always variations. It sometimes depends on whether the last day of the month is a Saturday or Sunday, as people must file on Friday and if they do not file until Monday, it goes into the next month. There are variations like that so one has to look at the overall picture. It is not a question of being confident that the tax flow is coming in, because I have no evidence of whether it is or not, but I am confident that the people who profile in the Department of Finance, who are in regular contact with Revenue, are doing a very good job. I hope they are all on profile for November.

Michael McGrath (Cork South Central, Fianna Fail)
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I have one further question and if the Minister does not have the answer to hand, he can revert to me on it. The carry-forward effect into next year was estimated to be approximately €300 million but it has now reduced to some €220 million in a medium-term statement. Is there a particular reason for that €80 million drop-off?

Michael Noonan (Limerick City, Fine Gael)
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The Estimates were done in preparation for the budget and, over the course of the year, things are re-estimated and there is more data at hand for the officials who do that kind of work. In light of the additional data they had, they marked it down.

Pearse Doherty (Donegal South West, Sinn Fein)
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I agree with the Minister that the profiling of tax returns by his Department has been impressive, and I have said that personally to individuals within the Department. It is great to see that targets set 12 months in advance are being achieved and, hopefully, those targets will continue to be achieved during the course of November.

The Minister will be aware, and we discussed it during the last round of questions, that there is much discussion in other countries about Ireland's corporation tax, not the level of the tax but the fact some corporations pay a very low effective tax rate. Google, for example, is reported to be paying an effective tax rate of 3% here. The Parliament at Westminster has had investigations into this and has discussed the system we allow to operate here, and the Americans have done the same.

Without a doubt, the Dáil has unanimously sought to protect this, or if it is not unanimous, at least Sinn Féin, Fianna Fáil, Labour and Fine Gael have agreed that the corporation tax rate should remain the same. However, is the Minister concerned that major multinational companies are only paying an effective tax rate of 3% in some cases? I have tried to ascertain figures from the Department but they have not been forthcoming, although I accept the Department is considering issues around their release. There are systems within Irish tax law which allow for the siphoning off of profits in the form of royalties to other companies, which avoid paying tax on corporations that are based or headquartered here. Is the Minister concerned about the issue or does he have proposals to address it?

Michael Noonan (Limerick City, Fine Gael)
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We operate in accordance with our corpus of tax legislation and the Irish tax code is recognised internationally as being a very good one. We have tax treaties with other jurisdictions. I cannot comment on the tax affairs of any particular individual or company because I do not know the details.

Those are confidential matters between the PAYE system and the Revenue Commissioners. From a policy point of view, if there are concerns about the issues to which Deputy Doherty refers, they arise not from any lacuna in the Irish tax code but from opportunities presented by tax codes elsewhere. We have no ability to do anything about those.

Pearse Doherty (Donegal South West, Sinn Fein)
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That is not the case.