Clare Daly (Dublin Fingal, Independent)
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122. To ask the Minister for Finance his views on whether public money should be provided to tax-avoiding builders under PPP schemes. [50238/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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A Public Private Partnership (PPP) is an arrangement between the public and private sectors with clear agreement on shared objectives for the delivery of public infrastructure and/or public services by the private sector that would otherwise have been provided through traditional public sector procurement.

Public private partnerships are fundamentally taxed in the same manner as a normal trading company.

There are two rates of Corporation Tax (CT):

- 12.5% for trading income

- 25% for income from an excepted trade

- 25% for non-trading income, for example rental and investment income.

Corporation Tax is charged on the profits in a company’s accounting period. This period cannot be longer than 12 months. If the tax rate changes in the accounting period, profits will be apportioned on a time basis and taxed accordingly.

There is also a 33% rate that applies to chargeable gains.

Guidance and further information on the Public Private Partnership process in Ireland is available at , including Central Guidelines on Corporation tax treatment of Public Private Partnership Agreements.