Written answers
Wednesday, 18 January 2017
Department of Finance
Tax Reliefs Costs
Róisín Shortall (Dublin North West, Social Democrats)
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91. To ask the Minister for Finance the number of claims made by companies for correlative adjustments for each of the years 2005 to 2016; the number of claims for correlative adjustments conceded by the Revenue Commissioners; the total value of the tax involved in those claims; if, in respect of the total number of claims made in these years, he will provide a breakdown by industry and the other country involved; the amount of tax involved in each of the three largest cases; and if he will make a statement on the matter. [2195/17]
Róisín Shortall (Dublin North West, Social Democrats)
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92. To ask the Minister for Finance the estimated cost of refunds arising from correlative adjustments made in 2016 and likely to be made in 2017. [2196/17]
Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 91 and 92 together.
It is worth noting that a similar question was raised in 2012 (Ref No: 12336/12). Therefore, this response follows on from the information provided in 2012.
Claims for relief from double taxation ("correlative adjustments") arise in Ireland as a result of an upward adjustment to company profits in a country with which we have a double taxation treaty. A company may make a claim for a correlative adjustment to Revenue in Ireland where tax paid in the other country is increased as a result of such an upward adjustment and the associated company in the other country has agreed to such upward adjustment. Each claim is examined by Revenue and an appropriate amount of relief (including nil amounts) is agreed.
The number of correlative adjustment claims and the amount of tax relief granted in respect of those claims for each of the years 2005 to 2016 is shown in the attached table. It is not possible to provide an estimate of the cost of refunds arising from correlative adjustments likely to be made in 2017.
The countries and industry sector involved are also listed in the table.
The amount of tax involved in the 3 largest cases amounted to approximately €435 million.
| Year of claim | Number of claims received | Number of these claims where relief granted | Amount of tax relief granted * |
|---|---|---|---|
| 2005 | 6 | 5 (1 claim not allowed) | €35.9m |
| 2006 | 14 | 12 (2 claims were withdrawn) | €101.7m |
| 2007 | 8 | 8 | €163.4m |
| 2008 | 15 | 11 (1 claim was withdrawn and 3 claims are still open) | €318.7m |
| 2009 | 13 | 11 (1 claim was withdrawn and 1 is still open) | €83.1m |
| 2010 | 16 | 13 (3 claims are still open) | €70.3m |
| 2011 | 8 | 5 (3 claims are still open) | €40.9m |
| 2012 | 13 | 9 (1 claim was withdrawn, 2 claims were not allowed and 1 is still open) | €34.2m |
| 2013 | 10 | 4 (2 claims were withdrawn and 4 are still open) | €8.7m |
| 2014 | 12 | 3 (1 claim was not allowed and 8 are still open) | €2.5m |
| 2015 | 14 | 14 claims are still open | €0.0m |
| 2016** | 4 | 4 claims are still open | €0.0m |
*Note that the relief may be granted over a number of years and may take the form of increasing losses to be carried forward as well as refunds and off-sets.
**Note 2016 claims may be understated as a result of claims for correlative relief submitted in December 2016 which are not yet reflected in the records maintained by Revenue.
Countries involved
Australia, Belgium, Canada, Denmark, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, UK, USA
Claims by industry sector
Energy, Financial Services & Insurance, Food & Drink, General Manufacturing, Healthcare and Medical Devices, Hospitality, Information Technology, Retail, Transport.
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