Today’s Tax Statistics for 2022 show the resilience of the Irish economy in the post COVID period, with total tax receipts up 17% over 2021.
While both VAT and income tax receipts saw strong growth in the period, corporation tax was once again the standout performer.
In 1995, corporation tax receipts represented 8% of our total tax revenues. By 2022 this number had risen to 22%, a remarkable performance and made all the more remarkable given how much other taxes increased in the same period.
Data for 2021 shows that less than 1% of companies paid more than 85% of all corporation tax returns. This concentration of receipts in such a small cohort of companies remains a concern. The lack of “churn” in the top tax paying companies is a further concern.
While today’s statistics show that 2022 was a strong year for the Exchequer, the recent drop in corporation tax receipts reinforces the need for a broader tax base.
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