Corporation Tax

IFAC: Tax windfalls offer opportunity to deal with future pension costs

Fiscal watchdog estimates €11.5bn of Irish corporation tax collected last year was generated by the worldwide activities of multinational companies with bases here

  • June 22, 2023
Michael McMahon, IFAC vice chair: “The council assesses that saving windfall corporation tax receipts to address ageing-related costs would be beneficial”

Multi-billion euro windfalls from excess corporation tax offer Ireland a “huge opportunity” to deal with surging pension costs for future generations, a fiscal watchdog has said.

The Irish Fiscal Advisory Council (IFAC) has highlighted the potential benefits of diverting the tax income generated by major multinationals into a long-term investment vehicle.

Appearing before an Oireachtas committee, council members also reiterated a warning against using the windfalls to fund permanent tax and spending commitments in the present day, cautioning that such a move risked overheating the economy, echoing concerns flagged by the Central Bank yesterday.