Good Finance News! Well So We Are Told
Updated : Jun 4, 2009
THE Exchequer deficit came in at a high price for the first few months of this year, but on VeryHappyPig we like to look on the bright side and we are delighted to tell you tax receipts stabilised in May.
Tax returns were sharply down on last year, according to the Department of Finance figures, but the returns last month were broadly in line with the Government's forecast in the Emergency Budget.
Total tax receipts were almost €13.5bn but this represented a decrease of 21pc on the same period last year. The decline compares with a 24pc drop for the first four months. The Government forecast earlier this year a 16pc fall in tax revenue for the whole of 2009.
There were better-than-expected revenues from income tax, excise duties and corporation tax.
Income tax receipts, boosted by levies first introduced last October, year-to-date were €4.6bn, a 7pc drop compared to a year earlier. Corporation tax was about €100m better than projected at €1.14bn.
Meanwhile in more positive financial news Bank of Ireland has revealed that it is on track to make a €1bn one-off profit from buying back some of its riskier bonds.
The bonds have been trading at a deep discount in the markets and the gain will help bolster the bank's capital reserves as the group prepares to write down €6bn of bad loans over three years.
It comes hot on the heels of a €3.5bn state recapitalisation, and the bank has bought back 58pc of the non-core tier one bonds in the hands of British and European investors.
It paid between 38pc and 50pc of the total €1.26bn value at which they were originally sold.
