Michael McGrath (Cork South Central, Fianna Fail)
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227. To ask the Minister for Finance further to Parliamentary Question No. 279 of 20 October 2015, if he will provide an update as to the employers’ PRSI, corporation tax and VAT paid by aircraft leasing firms; the taxable profit of the aircraft leasing sector in 2014 and 2015; the reason the sector is in a net repayment position in respect of VAT; and if he will make a statement on the matter. [22882/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners (Revenue) that the updates to tax payments by the aircraft leasing industry for the years 2014 and 2015 are as shown in the following table. I am further advised by Revenue that it is not possible to identify with accuracy the tax payments made by the overall aircraft leasing industry. However, the following table sets out the tax payments made by companies assigned to the primary industry description (NACE code) of renting and leasing of air transport equipment on the Revenue taxpayer register. It should be noted that an exercise is ongoing to ensure that all aircraft leasing companies are assigned to this NACE code and, pending the outcome of this review, these figures should be considered as provisional and may be updated in the future.

*The Aircraft Leasing Sector is in a net repayment position in respect of VAT for each year.

The sector is in a net repayment position in respect of VAT as in accordance with section 4(2)(b) of Schedule 2 of the Value-Added Tax Consolidation Act 2010, the business activity of the leasing and supply of aircraft is zero rated for VAT purposes in respect of "aircraft used or to be used by a transport undertaking operating for reward chiefly on international routes" (i.e., an international airline). As the business of the leasing and supply of aircraft is fully taxable, such a business is entitled to full VAT recoverability on their costs relating to the leasing business and is accordingly in a net repayment position for VAT.

The amount of taxable profits from the Corporation Tax returns filed for the year 2014, the latest year available, is as shown in the following table. The information is not yet available for 2015 as most of the returns are not due until later this year.