Corporation Tax Receipts 40% lower than target in March. What's happening?

Voluntary

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The volatility of corporation tax receipts was underlined by the March figures, which showed receipts of €248m – €163m lower than target.

Corporation tax receipts for the first quarter were €134m lower than in the same period last year, despite strong economic growth in the meantime.
RTE.ie

Just a volatility or is there something big going on behind the scenes?
 


Voluntary

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Thankfully house prices went ahead of themselves, so the revenue got extra money from Local Property Tax and Capital acquisitions tax [irony]

Local Property Tax, Customs and Capital acquisitions tax ahead of target.
 

SamsonS

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http://www.finance.gov.ie/sites/default/files/Exchequer 2017 Tax Revenue Profiles.pdf

That's the 2017 profile, they expected by the end of March to have 697m in Corp Tax collected, and of that 411 in March.

This from today -
Corporation Tax receipts of €248 million were recorded in March, closing the month €163 million below profile. Cumulative receipts at end-March were down €134 million in year-on-year terms and €177 million below target.

Something to watch, although what is expected fro April is 114m, so quite possible that will be back on track.

The 7.7b annual, would be similar to 2007 figures.
 

SamsonS

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Thankfully house prices went ahead of themselves, so the revenue got extra money from Local Property Tax and Capital acquisitions tax [irony]
All those headings are very small, so hard to read much into fluctuations - the big 4 take up around 46b of the 50b targeted for the year,
 

Mrwoody

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Time to bang up the corporation tax to 20% what harm could it do sh1t or bust
 

PBP voter

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Thankfully house prices went ahead of themselves, so the revenue got extra money from Local Property Tax and Capital acquisitions tax [irony]
Nothing to worry about.

 

robut

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Irish first-quarter tax revenues 2.4 percent below target in rare miss | Reuters

However revenues were only up 3.2 percent year-on-year by the end of March due to lower than expected returns from income tax, corporate tax and excise duties.

Corporate tax, the bulk of which is paid in later months and was responsible for much of the overall overperformance of the past two years, came in a third under profile while income tax was 3.9 percent behind target despite separate data on Tuesday pointing to further sharp falls in unemployment.
 

YesSireeeBob

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Car sales down also,

Fall in car sales disguised by heavy discounts and pre-registering

The numbers are disguising significant falls in sales of new cars.

According to the Society of the Irish Motor Industry (SIMI), which represents dealers and importers, sales figures were down 7.49 per cent in March, and 8.28 per cent for the year to date.

Strip out the last-day registrations though, and the figures are significantly worse. Of the total of 71,405 new cars registered so far this year, 11,723 have been last-day registrations, suggesting the underlying retail market is significantly weaker.

“The dip in sales is largely down to uncertainty in the economy caused by Brexit, whilst the strength of the euro against sterling has made it very attractive to import used vehicles from the UK and consequently many people are opting for a nearly-new import rather than a brand-new vehicle.”
 

General Urko

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Well the €13 Billion from Apple will up it when we get it!
 

Voluntary

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robut

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Discussing this in another thread here about PCP - Personal Contract Plan finance.

My take on this New Car sales far is becuase - apparently 80% or so of new car sales are now done using PCP finance. This locks the buyer into 3 or 5 year cycles within which they cannot buy or upgrade their car.

I reckon we are smack bang inside one of these cycles as PCP is relatively new here ( I think it took off here around 2014 ).
 

robut

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that part is interesting


Wonder what will get sacrificed first if we need to do amendments.
Hopefully not money planned for infrastructure needed to enable housing to be build.
Actually the part I found very interesting was this, the bold part:

Corporate tax, the bulk of which is paid in later months and was responsible for much of the overall overperformance of the past two years, came in a third under profile
 

gerhard dengler

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Discussing this in another thread here about PCP - Personal Contract Plan finance.

My take on this New Car sales far is becuase - apparently 80% or so of new car sales are now done using PCP finance. This locks the buyer into 3 or 5 year cycles within which they cannot buy or upgrade their car.

I reckon we are smack bang inside one of these cycles as PCP is relatively new here ( I think it took off here around 2014 ).
Fair point.

Or perhaps new cars in this country are lower because folks here are buying their "new" cars in Northern Ireland instead?
 

Voluntary

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Commercial vehicles registrations are probably a better indicator of the economy direction.
 

robut

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Fair point.

Or perhaps new cars in this country are lower because folks here are buying their "new" cars in Northern Ireland instead?
That too Gerhard. But whats sobering is that this 8% drop in new car sales is alot more when Heavy discounts and pre-registering are removed

Of the total of 71,405 new cars registered so far this year, 11,723 have been last-day registrations, suggesting the underlying retail market is significantly weaker.
Either way the tax take is down and car sales are down first quarter. Elsewhere here ( as a small biz owner, just me ) & many others I know ( outside Dublin ) have felt a significant drop in biz for this quarter .. from about mid jan 2017 to now .. in comparison to last few years. I wasnt making this up :(
 

greagh

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That too Gerhard. But whats sobering is that this 8% drop in new car sales is alot more when Heavy discounts and pre-registering are removed



Either way the tax take is down and car sales are down first quarter. Elsewhere here ( as a small biz owner, just me ) & many others I know ( outside Dublin ) have felt a significant drop in biz for this quarter .. from about mid jan 2017 to now .. in comparison to last few years. I wasnt making this up :(
The weakest business quarter in 4 years ,reflected in the numbers today hopefully not a longer term trend.
 


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