Ireland’s Minister for Finance Michael McGrath said: “In particular, the solid growth in income tax demonstrates the resilience of the labour market.
“As I have stated previously, potentially volatile corporation tax receipts provide an artificially positive picture of the public finances at the current time.
“These receipts are, of course, very much welcome, and reflect well on Ireland as an attractive location for highly profitable multinational firms.
“However, it is important to note that corporation tax receipts are highly concentrated among a small number of companies and therefore cannot be guaranteed at current levels into the future. My department estimates that almost half of the corporate tax take is potentially ‘windfall’ in nature.
“This government’s prudent management of the public finances will help ensure that we are in a position of strength to meet the key challenges facing the economy over the coming years and we are taking steps to address the risks around ‘windfall’ corporate taxes.
“A total of €6 billion has now been transferred to the National Reserve Fund to strengthen our economic and fiscal buffers. I will shortly publish a scoping paper setting out high level principles regarding a long-term savings fund.
“Subject to government approval, this will require bringing legislation to the Oireachtas and work on advancing this proposal will continue to be undertaken by my officials in the period ahead.”