Department of Finance study on potential shock to Irish economy from over-reliance on corporation tax from small number of multinationals

A Department of Finance study said the amount of corporation tax coming from a small number of giant multinationals was becoming “increasingly pronounced”.

Early conclusions from the study warned that intangible assets owned by Irish subsidiaries – including intellectual property – could account for up to half of the “observed strength in foreign receipts”.

It suggested that each €10 billion reduction in intangible stock had the potential to reduce corporation tax take by between €170 and €190 million annually.

The research, which is still underway, also said a “stylised shock” to the sector of around 20% in “traded sector GVA [Gross Value Added]” could reduce GDP growth by 2.75 per centage points after five years relative to the baseline.