Ireland Falls Short of Tax Targets
December 5, 2012 Taxation in Ireland
DUBLIN – Ireland has seen disappointing levels of tax collections over the course of November, and it is likely that the country will fail to meet its revenue targets for 2012.
In its monthly Exchequer Statement released on December 4th the Department of Finance of Ireland revealed that tax collections in the country for the 11 months ending November 2012 are 0.5 percent below target.
According to the Department, cumulative tax revenues for the first 11 month of the year were EUR 33.8 billion, which is approximately EUR 171 million below the government’s own set goal.
The lower than expected tax revenues were attributed to disappointing results in the collection of personal income tax, with the tax take for the year sitting at EUR 231 million below expectations.
Revenues from corporate income taxes over the 11 month period were also lower than anticipated, ending EUR 21 million below forecasts.
In addition to income taxes, collections of excise duties fell behind the government’s targets by EUR 179 million.
Amongst the four major taxes collected in Ireland, only VAT exceeded the government’s goals, with cumulative revenues over the course of 2012 surpassing forecasts by EUR 180 million.
Tax experts have already noted that Ireland normally sees strong levels of tax collections in November, but this year’s the lower than expected results could indicate that revenues will not pick up enough over December for the country to meets its own tax goals.
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