Dublin accounts for half of state tax take

DUBLIN’S dominance of the Irish economy is confirmed in new Government figures showing that the capital accounted for more than half of the state’s tax take in 2008.

Figures provided by Finance Minister Brian Lenihan show the tax take from Dublin city and county in 2008 accounted for €16.7 billion of the €31.7bn collected.

The latest figures available, provided in a Dáil response to Fine Gael deputy Leo Varadkar, shows that €5bn in PAYE was paid by Dublin-based workers in 2008 and €3.1bn was paid in corporation taxes by companies with registered offices in Dublin.

Cork city and county was the next highest area in terms of tax receipts, with Cork paying €2.7bn in tax in 2008, including €388 million in corporation taxes, compared to an overall pay- out of €3.1bn in 2007.

The large amounts paid in tax in Dublin are in stark contrast to Longford, the county that paid the smallest amount of tax during 2007 and 2008.

The figures show that in 2008, the amount of tax paid in Longford was €95m, following a payment of €122m in 2007.

The statistics show that the next-lowest amount was paid in Leitrim where €126.7m was paid in tax in 2008, representing a slight increase on the €125.9m paid in 2007.

The mid-west has the highest regional rate of unemployment in the country, resulting in the Government establishing a task force for the region, headed by Denis Brosnan. The task force is due to lodge its final report by September-October of this year.

However, the figures show that Limerick and Clare had the third and fourth-highest amounts respectively paid in corporation tax in 2008, with Limerick companies paying €218m and Clare -based companies – many located in the Shannon Free Zone – paying €139m.

The tax take is made up of PAYE taxes, VAT payments, non-PAYE, capital gains tax and corporation tax.

According to Mr Lenihan, the tables provided are the estimated breakdown of net receipts for income tax (PAYE & non-PAYE), domestic VAT, corporation tax and capital gains tax.

However, he added: “Basic data is not recorded in such a manner as would enable a breakdown by county to be provided in respect of the yield from stamp duties, capital acquisitions tax (including inheritance tax), customs, excise and VAT at the point of import.”

The figures show that the Government’s receipts from the taxes dropped by 8% or €4.3bn between 2007 and 2008.

Mr Lenihan also offered a “health warning” relating to the statistics. He stated: “In considering the data it should be noted that the amount of tax attributed to a county may not necessarily be an indication of economic activity in that county.”

He pointed out that an employer’s liability for PAYE is normally attributed to the county in which wages and salaries are paid, even though employees may work in different counties.

Firms are associated on the tax record with the county of the head office or branch with which contact is established for tax purposes, which may be different to the addresses of other branches.


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