James Bannon (Longford-Westmeath, Fine Gael)
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190. To ask the Minister for Finance his plans, if any, to increase corporation tax on large food supplying corporations within our domestic economy who are re-investing their profits abroad, much to the cost of our economy and our small shopkeepers; and if he will make a statement on the matter. [27525/13]

Michael Noonan (Limerick City, Fine Gael)
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I wish to advise the Deputy that companies are fully chargeable to Irish corporation tax at the 12.5% rate on profits arising from their trading activities in Ireland. A higher 25% rate applies in respect of investment, rental and other non-trading profits as well as profits from certain petroleum, mining or land trading activities, while capital gains are chargeable at a 33% rate. In recent times, there has been a consistent Government policy that our competitive corporation tax rate should be applied to a wide tax base. Therefore, all companies in Ireland are subject to the same rates on their profits which are generated in Ireland.

The transparent and indiscriminate nature of our corporation tax regime is one of its biggest strengths, both domestically and internationally. It is therefore important that this rate applies whatever size and whatever sector a company operates in. In addition, having different rates of corporation tax for different sectors could be in contravention of EU State Aid rules.