The prediction of a higher corporation tax take this year will be confirmed in the Stability Programme Update, which will be published on April 18th.
The full implementation of the deal on base erosion and profit shifting in corporation tax, spearheaded by the Organisation for Economic Co-operation and Development , will have a negative impact on Irish receipts, he said. At the briefing, Mr McCarthy said the introduction of the 15 per cent minimum tax rate for large companies was likely to boost Ireland’s tax revenue. However, he said the gain was likely to be offset by a loss in revenue from the reallocation of taxing rights in favour of bigger countries.
He admitted the department’s previous prediction that the State could lose up to €2 billion in revenue as a result of the reforms was now largely obsolete as it was formulated back in 2018.