Dara Calleary (Mayo, Fianna Fail)
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285. To ask the Minister for Jobs, Enterprise and Innovation the estimated gross contribution of Enterprise Ireland supported companies to the gross domestic product output of the economy; and if he will make a statement on the matter. [29933/15]

Dara Calleary (Mayo, Fianna Fail)
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287. To ask the Minister for Jobs, Enterprise and Innovation the total estimated tax contribution to the Exchequer in terms of payroll and corporation tax of Enterprise Ireland supported companies; and if he will make a statement on the matter. [29935/15]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 285 and 287 together.

Enterprise Ireland (EI) is the agency under my aegis with responsibility for the development of Irish enterprise, deepening Ireland’s footprint in world markets and supporting employment creation in the indigenous enterprises in our economy.

A gross estimate based on the total output of EI clients (€36.3bn) in 2014 as a percentage of total GDP output in 2014 of €181.330bn as reported by the CSO in the Quarter Four National Accounts release, shows a contribution of 20%. Gross figures should be used with caution as they do not represent final contributions to GDP as not all products/services may be considered as final outputs for the purposes of calculating GDP. On the basis of estimated value added by EI clients in 2014 (€12.959bn), the direct contribution of estimated value added totals 7.2% of GDP. An important element of the impact of Enterprise Ireland client companies in the economy is of course the expenditure made on payroll and locally sourced goods and services in Ireland. In 2014 this totalled €22.9bn.

It is important to note that Enterprise Ireland does not collect official data or statistics on the payroll or corporation taxes paid by its clients.

However, the agency, as part of the Department of Jobs, Enterprise and Innovation Annual Business Survey of Economic Impact (ABSEI), collects some data which can be used to prepare indirect estimates.

Given the limitations of the data, it is not possible to determine a distribution of incomes earned within client companies, nor data relating to the status or application of reliefs or assessment which impact the final tax contribution. However, this limited basis, a figure of €1.45bn in annual employee income taxes can be estimated. In addition to income taxes, employers’ taxes are also a payroll related contribution to the Exchequer. Taking these elements together, a total contribution to payroll taxes in the region of €1.88bn in respect of EI client companies is estimated.

In relation to corporation taxes, a profit estimate based on total estimated value added less the cost of payroll/other costs is calculated, before applying the average effective tax rate which is taken from research by the Department of Finance Effective Rates of Corporation Tax in Ireland – Technical Paper, April 2014. Based on this analysis, the estimated corporation tax contribution is €383m. Again caution is advised in the use of this figure as the component data is estimated and not based on actual corporation tax returns for client companies, and excludes tax expenditures through schemes such as the R&D tax credit, SURE (Start-up Refunds for Entrepreneurs) and so forth.

Taken together, the estimated data demonstrates that Enterprise Ireland client companies, located in every county in Ireland, continue to make a substantial economic impact in the State.

The Enterprise Ireland Annual Report for 2014 will be laid before the Oireachtas in the coming days.