Irish FinMin Publishes Latest Exchequer Returns
08 May 2013
Posted by: Author: Jason Gorringe
Source: Jason Gorringe (Tax-News.com, London)
Ireland's controversial new Local Property Tax has already generated EUR21m (USD27.6bn) in revenue, but the established "big four" tax heads have not all performed as expected, the latest Exchequer figures show.
According to the end-April Exchequer returns, tax revenues were up EUR145m (1.3%) year-on-year. Tax revenues for the month of April totaled EUR2.13bn, an increase of EUR51m (2.4%) on the same month in 2012.
The self-assessed LPT will enter into force from July 1. It will be charged at 0.18% of the market value of properties worth up to EUR1m (USD1.3m), and at 0.25% on any excess value over EUR1m. Householders must decide on the value of their property, file a return, choose a payment option and send it to Revenue. The deadlines for both paper and online filing are this month.
Personal income tax was up EUR62m (1.3%) on the same period last year, but currently stands EUR58m (1.1%) below profile. The Finance Department attributes this to lower than expected Deposit Interest Retention Tax (DIRT) receipts, itself the likely result of a reduction in retail interest rates. Corporation tax also failed to perform strongly on a year-on-year basis, falling EUR88m (17.2%) short of the figure recorded in April, 2012. It is however EUR121m (39.9%) above target, and, adjusting for a number of one-off payments that occurred in the first four months of 2012 and 2013, the underlying year-on-year growth was EUR23m.
Excise duties are EUR44m (3%) behind target, but marginally up on the year. Value-added tax (VAT), the final "big four" tax, remained flat year-on-year, and in April recorded a shortfall against target of EUR34. It is now EUR105m (2.9%) down on profile for the first four months of 2013.
Capital gains tax, capital acquisitions tax and customs duties are all slightly below profile.