Pearse Doherty (Donegal, Sinn Fein)
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160. To ask the Minister for Finance the estimated revenue that would be raised by reducing the research and development tax credit to each of 20%, 15% and 10%, respectively. [22549/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The RandD Tax Credit is a very important feature of the Irish Corporation Tax system. The central purpose of the R&D Tax Credit is to encourage companies to undertake high-value added RandD activity in Ireland, thereby supporting jobs and investment here.  

I am informed by Revenue that it is not possible to accurately estimate the potential revenue that would be raised by reducing the R&D Tax Credit to each of 20%, 15% and 10% as the yield would depend on future expenditure on RandD and also the possible negative impact on expenditure from the introduction of the reduced credits.

However, on the basis of information on Corporation Tax returns for 2016, which is the latest year available, and on a straightforward mathematical basis, reducing the 25% rate to 20% could have yielded €135 million. This includes the impact on repayable credits from earlier years. Further reductions to 15% and 10% can be estimated broadly on a pro-rata basis.

I would highlight that the comprehensive review of the R&D Tax Credit, undertaken by my department in 2016, found that the R&D tax credit is responsible for 60% of the RandD being conducted here, which represents a reasonable level of additionality. Furthermore, for every €1 in foregone tax revenue, more than €2.40 in additional RandD is being conducted. My officials and I are conscious of the need for regularly evaluating this tax credit. However, it is important to recognise that while this is a generous tax credit, it is one of the few corporation tax credits that we have in Ireland, when compared with other jurisdictions. In this respect, we are mindful of the need to maintain a competitive corporation tax offering.

Michael McGrath (Cork South Central, Fianna Fail)
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161. To ask the Minister for Finance the amount of corporation tax received in each of the years 2014 to 2017, by sector, including the financial sector; and if he will make a statement on the matter. [22551/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by Revenue that the amount of Corporation Tax by sector is available on the Revenue website up to 2016 at:

.

Sectoral analysis of 2017 receipts is currently being finalised and will be available at that link in the coming weeks.