Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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435. To ask the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 12.5% minimum effective corporation tax rate on total gross profits before deductions, allowances or reliefs. [41174/21]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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436. To ask the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 15% minimum effective tax rate on total gross profits before deductions, allowances or reliefs. [41175/21]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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437. To ask the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 17.5% minimum effective tax rate on total gross profits before deductions, allowances or reliefs. [41176/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 435 to 437, inclusive, together.

The trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Some of the main features of the current corporation tax regime are its transparency and that it applies to a broad base. Taxable profits are generally understood to be income after deduction of allowable expenses, whereas the questions refer to tax being levied on “total gross profits before deductions, allowances or reliefs”. Therefore, the proposals seem to involve changes to the existing corporation tax base and it is not possible to calculate a hypothetical yield on this basis.

Analysis undertaken by the Department of Finance, co-authored by an independent academic, a separate report undertaken by the Comptroller & Auditor General (C&AG), and Revenue’s annual analysis of Corporation Tax payments and returns, all confirm that the effective rate of corporation tax, using the most appropriate methodology, paid by corporations in Ireland is between 10% and 11%. While this percentage is lower than the 12.5% headline rate, this can be attributed to the availability of the small number of targeted tax measures that are provided for in legislation and may only be availed of where the legislative criteria for relief are satisfied. Compliance with these tax obligations and eligibility for tax reliefs are monitored by Revenue on an ongoing basis.

Notwithstanding the above, it should also be noted that seeking to change the tax base and/or to impose a minimum effective tax rate would involve increased complexity and could change the attractiveness of Ireland’s corporate tax regime. It is not possible to accurately predict how the proposed changes to the tax base and the imposition of a minimum effective tax rate would affect the behaviour and investment decisions of multinational or domestic companies. Therefore, as noted above, it is not possible to accurately or robustly estimate the potential Exchequer impact of these proposals.

The Deputy will also be aware that Ireland has expressed broad support for the OECD Inclusive Framework’s proposed two-pillar solution to address tax challenges arising from digitalisation and globalisation, but have expressed reservations in particular about the proposed global minimum effective tax rate of “at least 15%”. Given the importance of the OECD proposals, I have invited views through a public consultation and the consultation period will run until 10 September 2021.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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438. To ask the Minister for Finance the estimated amount of revenue which would be generated in 2022 by imposing €600 per year tax on all second homes, a €1,000 per year tax on all third or fourth homes and a €1,500 per year tax on all fifth or subsequent homes. [41177/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by Revenue that the available information in respect of additional charges on second or multiple properties is included at page 29 in the ‘Ready Reckoner’, published at link: .