Patrick Nulty (Dublin West, Independent)
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101. To ask the Minister for Finance the amount that could be garnered annually if a minimum effective tax rate of 6% on all corporate profits were introduced as suggested by Social Justice Ireland. [36054/13]

Michael Noonan (Limerick City, Fine Gael)
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All companies resident in Ireland are chargeable to corporation tax at the 12.5% rate on the profits that are generated from their trading activities in Ireland. A higher 25% rate applies in respect of investment, rental and other non-trading profits. Chargeable capital gains are taxable at the capital gains tax rate of 33%. There are different ways of measuring the effective rate of corporation tax depending on the variables that are used. As there is no such single internationally agreed methodology to calculate the effective rate of corporation tax, there is no reliable basis upon which to calculate the current 'effective rate' of corporate tax in Ireland without being potentially misleading.

Therefore, neither I, nor my Department, would be in a position to introduce a minimum 'effective rate' in Ireland in the way the Deputy has suggested.

To illustrate the debate on the topic, I have previously referred to an estimate from a report produced by the World Bank and PriceWaterhouseCoopers which put the effective rate in Ireland at 11.9% (Paying Taxes, 2013). I also referred to a study by the European Commission (Taxation Trends in the EU 2011), which indicates Ireland has an effective corporate tax rate which is close to or indeed higher than the statutory 12.5% rate (this is likely because of the 25% rate that applies generally to non-trading income).

I have been clear that my Department does not take ownership of these reports, but they do indicate that the 'effective' rate of tax paid by companies in Ireland is already much higher than the 6% minimum 'effective' rate the Deputy suggests.

Some other countries have a high headline rate of corporation tax which is then supplemented by a high number of tax reliefs which reduce the overall rate of tax paid. By contrast, the approach in Ireland is transparent: we have a competitive headline rate of corporation tax which is applied to a broad base.

We therefore have only a small number of tax incentives in Ireland, and we make sure that those we do have are specifically targeted. They are focused firstly, on the creation of additional employment as is consistent with current Government policy, and secondly on areas of innovation with a view to generating high value-added economic activity in the country. The small number of reliefs we have include, for example, the R&D Tax Credit and the 3 year exemption from corporation tax for start-up companies.

Patrick Nulty (Dublin West, Independent)
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102. To ask the Minister for Finance the amount of additional revenue increasing capital gains tax to 40% in budget 2014 would yield for the Exchequer. [36055/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 33% to 40% could be in the region of €109 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.

Patrick Nulty (Dublin West, Independent)
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103. To ask the Minister for Finance the amount of additional revenue increasing capital acquisitions tax to 40% in budget 2014 would yield for the Exchequer. [36056/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 7% to 40 %, based on the expected outturn in 2013, could be in the region of €63 million, assuming no change in the existing thresholds. This estimate is provisional and subject to revision.

It should be noted that this estimate is based upon an assumption that there would be no behavioural impact of this change, which could lead to a less than expected impact on Exchequer yield. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.