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Irish budget: Government ran €8.3bn surplus last year

Partial reforms to global tax regulation have had the unintended consequence of large US companies paying tax on much of their global profits in Ireland.

This has seen corporation tax receipts in Ireland balloon from just over €4bn (£3.4bn) in 2014, to just under €24bn (£20.5bn) last year.

However, the expectation is that at least some of this revenue is transitory, so it cannot be relied upon to fund permanent spending increases or tax cuts.

Mr McGrath said: “While our headline position is strong, this can change quickly given the inherent volatility in our corporation tax receipts and the dependence we have on revenues from a small number of multinational companies.”


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