Corporation Tax take reduced by weak dollar

THE weak dollar and a tougher business climate faced by the SME (small and medium enterprise) sector contributed to a lower that expected Corporation Tax take last year.

Tax-in flows in the Exchequer outperformed Department of Finance estimates in all but one category in 2004 - Corporation Tax.

In his budget of December 2003, former Finance Minister Charlie McCreevy expected Corporation Tax revenues to hit €5,348 million in 2004, his successor Brian Cowen took in just €5,332m, a shortfall of €16mn. In comparison Stamp Duties, expected to bring in €1,600m, out-performed by €488m to provide the Exchequer with €2,088m.