Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No 493 of 18 September, 2012 if he will provide an explanation for the payment of €2,603,000 by the Exchequer to Marathon Petroleum in the July 2012 Exchequer statement; and if he will make a statement on the matter. [40898/12]

Brendan Howlin (Wexford, Labour)
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The Exchequer statement records that €2.603 was paid to Marathon Petroleum (now PSE Kinsale Marathon’s operations in the Kinsale field were taken over by Petronas, the Malaysian state-owned petroleum concern, in 2009 and renamed PSE Kinsale.) in the first half of 2012. Article X of a 1959 Agreement with Marathon Petroleum provides that the company is entitled to a remittance of the amount by which the total of tax and royalty paid in any accounting period exceeds 40% of the "net income" as defined in that Article. The level of the remittance is restricted to the lesser of the following two amounts:

i.An amount equal to the excess of the total of tax and royalty over the said 40% of "net income", or

ii.An amount equal to the taxes paid on income and profits.