John Lyons (Dublin North West, Labour)
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To ask the Minister for Finance if there was an effective corporate tax rate of 10%, what would the total tax take from corporation tax have been for 2010, 2011 and 2012; what it would be in 2013 and 2014; and if he will make a statement on the matter. [7961/13]

Michael Noonan (Limerick City, Fine Gael)
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All companies in Ireland pay the standard 12.5% rate on their profits which are generated in Ireland. A higher 25% rate applies in respect of investment, rental and other non-trading profits and profits from certain petroleum, mining or land dealing activities. In a number of answers to previous Parliamentary Questions on this issue I have repeatedly stated that there is no agreed international methodology for calculating the ‘effective rate’ of corporation tax. With that in mind, I am unsure as to the premise of the Deputy’s question which seems to be that Ireland has an effective rate that is lower than 10%.

I am aware of recent media reports which refer to the ways that some companies structure their international tax affairs to minimise their tax costs, and the fact that some of these reports make reference to Irish companies being part of these structures. I understand that some of these reports have suggested that some companies in multinational groups pay Irish corporation tax at rates that are significantly lower than 12.5%.

At this point it is important to state clearly that such companies are not paying a low rate of Irish tax – as already stated all companies in Ireland pay the standard 12.5% rate on their profits which are generated in Ireland. The reports concerned appear to have incorrectly attributed to Ireland profits that represent the return due to assets in other jurisdictions, owned by group companies that are not resident in Ireland.

It is incorrect to relate the 12.5% corporation tax rate to both the profits of the Irish-resident group companies and the profits of foreign-resident group companies— which are not profits chargeable to Irish corporation tax. By mixing up the Irish profits and the foreign profits of multinational groups like this, these reports can produce an average tax rate for the companies concerned that is very significantly lower than 12.5% — and an incorrect inference that the full Irish profits are not being charged.