Report on corporation tax rules to be ready by April

A report by Revenue into Ireland’s corporation tax rules is set to be completed by April — weeks after major multinationals like Apple and LinkedIn are brought before TDs over loopholes in the system.

Facebook is one of several multinationals to receive a request to attend the Public Accounts Committee in January. Picture: PA

Revenue chairman Niall Cody will confirm the situation to the Dáil’s public accounts committee during a meeting which is set to be heavily dominated by the Paradise Papers fallout, Brexit, budget tax changes and the TV licence fee.

In his opening statement to the group this morning, Mr Cody is expected to say that, due in part to ongoing concerns about corporation tax rates in Ireland, Revenue is conducting an analysis of the money firms’ pay.

The move, which is similar to previous years, is focused on corporation tax returns from 2016 and this year, and is due to be completed in April 2018.

The Revenue chairman is also due to tell the PAC there has been a “significant increase” in corporation tax receipts in recent years, with levels rising by 49% between 2015 and 2016.

He will also say that the net receipts for January to October this year reaching €5.42bn which is 4% ahead of previously set targets.

However, despite the positive news, the corporation tax debate is expected to be dominated by PAC concerns over widely accepted loopholes in the system which are repeatedly benefiting large multinationals.

The PAC has written to Apple, LinkedIn, GSK, JP Morgan and other multi-national companies with bases in Ireland in recent days to demand they attend committee grillings in January over their tax strategies.

The move was in response to last month’s Paradise Papers revelations, but has raised concerns within government that such a public rebuke could impact on jobs.

Meanwhile, the PAC meeting with Mr Cody is also likely to touch on the ongoing Brexit fallout and its impact on Irish businesses and import- export markets, in addition to other matters such as the TV licence fee.

The committee is also expected to hear calls for it to examine the pay revelations of hospital consultants highlighted last week on RTÉ’s Prime Time programme, among other concerns raised by committee members.

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