
Tax take to end of May up 3.6% on same time last year
Taxes collected by the State rose by 3.6% in the first five months of the year to €36.4bn, according to latest Exchequer Returns from the Department of Finance.
When some funds from iPhone-maker Apple, which was forced to pay back taxes as part of settlement of up to €14bn to Ireland are included, the amount of tax collected was up 8.5%.
Income tax, a key indicator of the health of the economy, was up by 4.5%, while VAT rose 5.5%.
Corporation tax, including funds from Apple, was up 18% in the first five months of the year.
However, if the Apple money is excluded, corporation tax is down 9.4% on the same period last year.
Minister for Finance Paschal Donohoe said the drop was driven by one-off factors last year.
But he added: "It nonetheless highlights the degree of concentration in the corporate tax base, where a small number of multinational firms can significantly impact on the overall tax yield."
The figures also show Government spending was up 8% in the first five months of the year to €42bn which was close to its target.
There was an exchequer surplus of €4bn in the five months to the end of May.
But excluding the money from Apple the surplus was €700m.
Minister Donohoe said: "May is one of the most important months for tax revenues and the steady growth in most tax headings points to an economy that is in a in a relatively good position."
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Irish Times
14 hours ago
- Irish Times
Does Ireland's hospitality sector really need a VAT cut?
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Irish Independent
18 hours ago
- Irish Independent
AIB likely to quadruple chief executive Colin Hunt's pay package to €2m after government exit
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The Journal
18 hours ago
- The Journal
Never mind the spin - Ireland isn't close to ‘breakeven' on the €21 billion AIB bailout
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That amount is on top of the €20.8 billion – so straight away, the actual AIB bailout cost goes to €27.9 billion. And interest is still being paid on that money. In a statement to The Journal , the organisation said the report, published in 2022, 'is the most recent report the C&AG has published on this issue'. But as some interest would still have racked up between 2022 and now, it's likely the final AIB bailout cost, when debt servicing is included, is well above €28 billion. With this in mind, we asked the Department of Finance how taxpayers are €0.6 billion 'up' on the AIB/BOI/PTSB bailouts. A spokesman said: 'The figures are based on a simple cash in, cash out basis. We have never included debt servicing costs over the last 10 years of tracking these figures.' Advertisement Asked why debt servicing costs are not included, the spokesperson said: 'It [the Department] doesn't include debt servicing costs, which are under the remit of the NTMA'. The NTMA (National Treasury Management Agency) is the Irish agency which manages the state's assets. Let's think about that for a minute. The Department of Finance doesn't include the billions in debt servicing costs – which are real costs – because counting this is handled by a different state agency. Does that sound like a good reason to ignore billions in taxpayer funds spent? It would be one thing if profit and loss wasn't mentioned at all. But by saying taxpayers are actually in profit on the AIB/BOI/PTSB bailout, the Department's claims paint a misleading picture. Let's take a quick look at debt servicing costs for the three main banks. As of end 2021, the most recent figures available: AIB: €7.1 billion BOI: €0.7 billion PTSB: €0.7 billion That's an additional €8.5 billion. So rather than taxpayers being '€0.6 billion above break-even', we'd actually be about €8 billion down. Not even counting the additional debt costs paid since the end of 2021. It's also telling how the Department chose to highlight the 'investment' into AIB, Bank of Ireland and PTSB. It didn't mention the other two lenders we bailed out 'invested' in at the same time. This pair, of course, was Anglo Irish Bank and Irish Nationwide (INBS). Between them, they received bailout funds of €34.5 billion. The state has recovered about €1.1 billion of that amount. The remaining €33.4 billion is officially deemed an 'unrecoverable sunk cost'. Anglo and INBS were merged into a new state-owned entity called the Irish Bank Resolution Corporation (IBRC), which is trying to get anything it can back for taxpayers. So it's perhaps understandable why the Department would prefer to forget about these two when talking about how well we are doing on our banking 'investment'. Let's do a quick rundown of where things actually stand when looking at the Irish state's banking 'investments' – when including debt servicing costs. AIB – loss for the state. Likely in the region of €8 billion BOI – profit. Approximately €1.4 billion PTSB – state still holds 57% stake, currently valued at €600 million. State will likely finish at a loss of about €1 billion. Possibly less, depending on how much it ultimately sells the shares for. IBRC – loss. Likely in the region of €35 – €40 billion once all costs are included. Briefly returning to AIB. Seeing as the Department of Finance consistently refers to the bank bailouts as 'investments', it's worth briefly considering them as such. If someone invests €20.8 billion in 2010, and receives a payout of say €20.8 billion in 2025, how did they fare? Well, you *could* say they broke even, on a 'cash in, cash out' basis. But in reality, they lost money due to inflation. €20.8 billion in 2010 is worth the same as about €27 billion in today's money. And that's on top of… something… oh yeah, billions in debt servicing costs! How do we keep forgetting those pesky charges? When the government continuously forgets them as well, it can be hard to remember! We're down billions None of this is necessarily to say that bailing out the banks was the wrong move. The Irish state got something valuable for the AIB bailout. It ensured one of the country's main lenders didn't collapse. It also got a decent amount of the bailout money back in the end. At least, from AIB, PTSB and BOI. Likely a good bit more than was expected during the crash. That's all fine. So why can't the government be happy with that, rather than trying to spin that we are around 'breakeven' on our AIB 'investment'? To its credit, AIB's statement on its return to private ownership didn't make any mention of the state's 'return on investment'. So if AIB hasn't tried to claim this, why has the government? Put simply – the government is trying to spin that taxpayers got a return on the bank bailouts. Three of them, at least. But we didn't. Even on those selectively-chosen three bailouts, we're down billions and billions of euro. When the government is trying to rewrite history, it should be called out for it. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal