Read the following article from TheJournal.ie about Ireland’s surplus at the end of November 2015. Answer the accompanying questions.
BLACK AT THE END OF LAST MONTH By Paul Hosford
Ireland has reported a €343 million surplus for the end of November 2015.
The returns released today by the Departments of Finance and Public Expenditure and Reform show that the country has taken in €41 billion in tax so far this year.
That is over €3.8 billion ahead of last year. In total, tax receipts were €739 million (11.9%) higher when compared to the same month in 2014. 1. Why do you think tax receipts increased over the year?
IRELAND WAS €343 MILLION IN THE
It is the first time the country has had a surplus at the end of November since 2007. However, the underlying deficit is around €1 billion when one-off expenditures and incomes are removed.
Finance Minister Michael Noonan says that the strong performance is down to better-than-expected corporation tax yields.
‘Corporation tax receipts have been particularly strong, finishing the month €312 million or 24% above target. The Revenue Commissioners have advised me that this over-performance is primarily related to improved trading conditions and is broad based.’
2. Explain corporation tax and outline one factor that would contribute to an increase in corporation tax collected.
