Róisín Shortall (Dublin North West, Labour)
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Question 185: To ask the Minister for Finance the general requirements on PAYE workers to make tax returns. [41193/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that PAYE workers generally fall into two categories—

(a) those who do not have any income other than their PAYE income; and

(b) those who have income, or a source of income, in addition to their PAYE income.

(a) Taxpayers with PAYE Income only

Where PAYE income is an individual's only source of income, that individual is required to make a tax return when he or she is requested to do by notice in writing by an inspector of taxes. However, where

i. such individual or such individual's spouse is a proprietary director of a company; that individual is obliged to submit a tax return without being requested to do so by an inspector of taxes; or

ii. such individual has opened, either directly or indirectly, a foreign bank account, then he or she is obliged to submit a tax return without being requested to do so by an inspector of taxes for the tax years in which such account was opened.

A proprietary director is a director of a company who is the beneficial owner of, or is able either directly or indirectly to control, more than 15% of the ordinary share capital of the company.

(b) Taxpayers with income, or a source of income, in addition to PAYE Income

An individual who has non-PAYE income is obliged to submit, under the self-assessment system, a tax return even if not requested to do by an inspector of taxes.

Notwithstanding this, I am informed by the Revenue Commissioners that, for administrative ease, where a PAYE taxpayer

(i) has gross non-PAYE income of less than €50,000 which results in net taxable income of less than €3,174 in a tax year; and

(ii) the tax due on that non-PAYE income is collected by reducing the individual's tax credits, that individual need only submit a tax return when requested to do by notice in writing by an inspector of taxes.

The €50,000 limit applies to gross income from all sources and not from each separate source.

David Stanton (Cork East, Fine Gael)
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Question 186: To ask the Minister for Finance his views on the impact of the cap on tax reliefs on charitable and philanthropic donations; if excluding such donations from the tax relief cap would channel more resources to areas of need; if estimates have been undertaken regarding the result of such change; and if he will make a statement on the matter. [41652/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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After the introduction of the restriction of tax reliefs measure was announced in Budget 2006, my predecessor received a number of representations regarding the inclusion of the donations scheme in the list of reliefs to which the restriction would apply. The arguments put forward were considered very carefully at the time. The question was also discussed in the Dáil in some detail during Committee Stage of the 2006 Finance Bill. In the event, my predecessor decided that, on balance, the donations scheme should remain on the list.

Removing the donations scheme from the list of specified reliefs would weaken the intended effect of the restriction, which is to increase to 20% at least, in any one year, the effective tax rate of those on high incomes who avail of such reliefs. Given that the proportion, even of high income individuals, who are affected by the restriction is relatively small, it is expected that the socio-economic objectives of the donations scheme will still be met. In addition, it should be noted that where relief under the donations scheme has not been allowed in any one year as a result of the restriction, it can be carried forward to the next year and indeed, following years, if necessary.

It would be difficult to make any accurate assessment or estimate of the kind suggested by the Deputy.