Ireland Underforecast Corporate Tax Revenue for Over a Decade

Ireland has consistently underestimated its year-ahead corporate tax revenue for budget forecasts for 14 years in a row, a report from the Parliamentary Budget Office showed.

Because forecasts support fiscal planning and resource allocation decisions, “errors in either direction can have implications,” according to the April 30 report.

It said “underestimates may contribute to more cautious expenditure plans, while overestimates may increase the risk of committing to spending that proves difficult to sustain if revenue falls short.”

Analysis of the forecasts “suggests some evidence of a conservative bias,” the budget office said.

It noted, however, that corporate taxes are ...