Dáil Éireann Debate, Tuesday - 21 April 2026
244. Deputy Michael Murphy asked the Tánaiste and Minister for Finance his latest assessment of the State’s exposure to a small number of multinational firms for corporation tax receipts; the contingency planning in place should those revenues decline [24949/26]
Amharc ar fhreagraOne of the most notable features of the Irish public finances over the past decade has been the increase in corporation tax receipts. Since 2015, corporation tax receipts have increased substantially becoming the State’s second-largest source of taxation revenue. Last year, this revenue stream generated nearly €35 billion.
While increasing tax revenues are, of course, welcome, we must be cognisant of the growing dependence on any one single revenue stream.
In this context, the Department published ‘Fiscal vulnerabilities - Expanding costs, narrowing base’, which attempts to identify any fiscal blind-spots that might jeopardise the sustainability of the public finances. The analysis showed that corporate tax receipts in Ireland are concentrated among a small group of firms in a limited number of sectors.
In 2024, corporate tax payments by the top ten payers accounted for nearly 60 per cent of the State’s total corporation tax revenue.
Moreover, the same analysis highlighted strong sectoral inter-linkages between corporation tax and income tax revenue streams. This suggests that income tax receipts could also be vulnerable to a potential shock to corporation tax.
Acknowledging this, the Government’s fiscal strategy is centred around mitigating risks. Firstly, we are continuing to target budgetary surpluses over the coming years. Secondly, we are making transfers into the State’s savings vehicles. By the end of this year, we will have transferred around €23 billion into the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
Finally, we are continuing to invest in critical infrastructure. Such investment represents a form of saving, as it will boost the productive capacity of the country, strengthen our competitive position and help to generate future tax revenue via increased economy activity.
