A further €6 billion of Apple tax money flowed into the exchequer last month, swelling Government tax coffers to a record €99 billion for the year to date. The total was ahead of last year’s 12-month total (€88 billion) with one month of receipts still to collect.
The Government is forecasting an unprecedented €25 billion surplus this year as a result of the Apple tax money but the strength of the November receipts suggest this could be exceeded, placing the incoming administration in a very strong position financially.
The latest exchequer returns data from the Department of Finance show the Government collected €13.7 billion in corporate tax receipts in November. This was €7.4 billion or 117 per cent up on the same month last year.
While the department did not specify how much of the additional money accrued from the European Court of Justice’s (CJEU) recent ruling against Apple, it is understood to account for around €6 billion of the year-on-year increase.
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Minister for Finance Jack Chambers had signalled that he expected about €8 billion of the €15 billion windfall from the CJEU case to be received this year but the latest figures suggest the State is already in receipt of €9 billion of the total.
On a cumulative basis, the numbers suggest receipts from the business tax amounted to €35 billion for the 11 months to November, 59 per cent up on the same period last year.
November is a key month for tax receipts as it is the biggest month for corporation tax and also incorporates returns from self-assessed taxpayers.
Cumulatively, income tax receipts generated €32.3 billion for the 11-month period, up on the same period last year by €1.9 billion (6.4 per cent).
“Self-assessed income saw a relatively weak performance year-on-year, which offset continued growth in PAYE receipts,” the department said.
While November was the last VAT-due month of the year, receipts of €3.1 billion were down on last year by €25 million due to a technical factor but cumulatively the transaction tax has so far this year collected €21.4 billion, ahead of 2023 by €1.3 billion (6.4 per cent).
“The growth in income tax and VAT receipts demonstrates the strength of our economy and labour market, but our public finances remain exposed to highly volatile corporation tax receipts,” Minister for Finance Jack Chambers said.
“This revenue stream is also skewed by the receipt of around two-thirds of the revenue arising from the CJEU ruling of September 10th,” he said.
Peter Vale, tax partner at accountants Grant Thornton, said: “What the future holds for corporation tax receipts is very uncertain.
“While a dramatic fall in corporation tax receipts looks unlikely, a gradual decline in the coming years is a possibility if the US implements significant tax or other reform, including new tariffs.”
Tom Woods, head of tax at KPMG, said: “As government formation talks get under way in the wake of the election, the rude health of the economy, combined with the Apple payments, should facilitate an ambitious programme for government.”
The latest figures show that total Government expenditure to the end of November amounted to €103 billion, which included €92 billion of gross voted expenditure, €9.6 billion ahead of the same period last year.
The department said an exchequer surplus of €13.8 billion was recorded for the year to the end of November, compared to a surplus of €5.4 billion in the same period last year, an improvement of €8.4 billion.
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