Lucinda Creighton (Dublin South East, Fine Gael)
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Question 74: To ask the Minister for Finance if 2008 corporate tax projections take into account the fact that companies liquidated in 2009 and 2010 will seek a retrospective three-year tax rebate; the amount, according to his estimates, of this year's tax-take that will be lost due to future tax rebates due to liquidations; and if he will make a statement on the matter. [32944/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 397 of the Taxes Consolidation Act 1997 deals with losses arising on the cessation of a trade, generally referred to as "terminal losses". On the cessation of a trade, losses incurred in the last twelve months may be set back against profits for the proceeding three years and corporation tax will be repaid accordingly. The currently expected yield from corporation tax in 2008 takes into account the collection trend in payments and repayments made during the course of the year to date, including repayments made under the provisions of Section 397. The cost of similar repayments implemented in 2009 and 2010 will be funded out of current receipts in those years and will not have a retrospective impact on the outturn from corporation tax in 2008 as reported at the end of this year.