Here is just a quick snapshot of the corporate sector in the non-financial institutional sector accounts published by the CSO. Click to enlarge.
The first item to look for here is the increase in Corporation Tax and we can see it in line seven. The accounts show a 47 per rise in “current taxes and income and wealth” paid by the corporate sector to €7.2 billion. Is this increase reflected elsewhere in the accounts? It would see so.
It can be seen that Gross Operating Surplus rose by €16.2 billion. GOS is akin to earnings before interest, tax, depreciation and amortisation and changes in GOS, in the absence of big changes in interest and depreciation, will reflect changes in the tax base. Fairly crudely, a €16.2 billion increase in the base for our 12.5% rate of Corporation Tax corresponds to around €2 billion of extra tax revenue.Tweet