Results 8,821-8,840 of 32,917 for speaker:Catherine Connolly
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: What sparked it, of course, and we will be talking later about this, was chapter 20 from the Comptroller and Auditor General's report. I said this in private session last week. I refer to variation in the payment of corporation tax and the difference at what is set at 12.5% and the actual effective rate. That is to place it in context and where we are coming from. In 2016, corporation tax...
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: And the vast majority would not come under corporate tax.
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: In 2016, corporation tax was paid by more than 44,000 companies. Of the 175,000 companies then, about 44,000 pay corporation tax?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Only a small number of that 44,000 pay-----
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: -----significant amounts. Okay. That is even more worrying when we look at that figure because it is within three or four sectoral areas. Is that correct?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Banking, insurance, manufacturing and-----
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: -----pharmaceuticals, and IT?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: There is an enormous number of companies, but within that only about 44,000 are paying corporation tax. Within that group again is another tiny group. From the figures given by the Chair, we have 100 companies paying 70% of the corporation tax and ten companies paying 36%. That is the background, is it?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Within those 100 companies and the ten companies, there is huge variation as to paying 12.5% down to zero. Perhaps Dr. Keegan could enlighten us as to the reasons for that?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Those close companies are separate from the 175,000 companies?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: They are within that. I beg the witness's pardon.
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Most tax comes from the PAYE system-----
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: ----- and within the PAYE system, close companies pay tax through salaries that are taxed. Is that the way it works?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: That is okay. I just wanted to get an overview of the close company structure, which Dr. Keegan has just explained. I now ask Dr. Keegan to address the issue of the variation noted in the chapter by the Comptroller and Auditor General. I ask him to explain that to people. The statutory rate is 12.5% but the effective rate can vary from 12.5% right down to 0%. In private session Dr....
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Mr. Keegan is saying that the effective rate for the top ten or top 100 companies can be as low as 0% because of legitimate ways of not paying tax through use of research and development credits or the purchase of intellectual property. Is that correct?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: That is okay. I am just trying to understand it all. The Revenue Commissioners will be coming before the committee and we want to understand the system.
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Of the top 100 companies, most are probably benefitting from the research and development credit. To be fair, they are probably companies that are most suited to carrying out research and development, like pharmaceutical companies. Is that right?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: Is it the case the other companies in Ireland, mainly indigenous companies, are not able to make the most of the research and development credit or similar methods for reducing the corporation tax payable?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: At the risk of raising a rotten apple, I will discuss the Apple case in a general way. It was mentioned in the up-to-date briefing document. The witnesses referred to residency. Is incorporation of the company important?
- Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 20: Corporation Tax Receipts (Resumed) (22 Feb 2018) Catherine Connolly: The situation also depends on double taxation agreements, residency and so on. However, there are always criteria that determine where a company is taxed. Dr. Keegan was at great pains to say that tax cannot be avoided. It has to be paid somewhere.