Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Government has no plans to introduce a wealth tax, although all taxes and potential taxation options are constantly reviewed. Wealth can be taxed in a variety of ways, some of which are already in place. Capital gains tax, CGT, and capital acquisitions tax, CAT, are, in effect, taxes on wealth, given that they are levied on an individual or company on the disposal of an asset in the case of CGT or the acquisition of an asset through a gift of inheritance in the case of CAT. Deposit interest retention tax, DIRT, along with similar taxes on the income from financial investments, is charged at 41% with some limited exemptions. It is intended to reduce DIRT to 33% over a four year period in the Finance Bill. There is a stamp duty levy on the transfer of shares which yielded €424 million in 2015. The local property tax, LPT, which was introduced in 2013 is a tax based on the market value of residential properties. I note in this context the report by the Think-tank for Action on Social Change, TASC, published on 4 November 2016, which stated:

An annual property tax is a tax on capital/wealth and as such contributes to social equity. The new Irish property tax has generous thresholds but is also a very stable tax. It is hard to avoid and so is a sound source of revenue for the State. Taxes on property in Ireland are about the average in OECD34, but are below average for English speaking countries.

The domicile levy introduced in 2010 also constitutes a form of wealth tax. It is aimed at high wealth individuals with a substantial connection to Ireland, whether or not they are tax resident, to ensure they make a tax contribution to the country in a year of at least €200,000. In 2014, 12 individuals paid the levy, yielding €1,986,858.

Comprehensive data on household wealth in Ireland includes assets and liabilities. It was published for the first time in 2015 by the CSO. The data was collected across the eurozone according to a standardised methodology and indicate that wealth inequality in Ireland for 2013, as measured by the Gini coefficient, is lower than the eurozone average. The results also show wealth is less concentrated at the top of the distribution here than the European average. Central Bank analysis of the data also indicates that while wealth inequality has increased since 2011, it is lower than in 2006, the earliest period for which data are available. Data gathered by the CSO as part of the Household Finance and Consumption Network, HFCN, were not calculated for the purpose of calculating the potential yield from a wealth tax but to collect general information on the financial situation and behaviour of households. As part of the joint research programme agreed by my Department and the ESRI covering macroeconomic and taxation issues, a research project involving detailed analysis of household wealth distribution and taxation has been undertaken. This project, based on the household finance and consumption survey published by the CSO, is nearing completion and the results are to be presented at the annual tax policy conference hosted by my Department. This is the point the Deputy raised in particular and the commitment in my speaking note is that it will be done at the tax policy conference.

This year's conference is being held in Dublin Castle on 23 November. I expect all interested parties would attend the conference and engage in the debate. My Department will monitor and consider any additional information and data that comes to light and will continue to examine potential taxation sources on an ongoing basis. There is no doubt in my mind that there will be significant difficulties in determining the base, the types of assets to be included, the potential yield and, most important, broad acceptance for such a tax from the wider public. As the Deputies will appreciate, while it is easy to propose the introduction of new taxes, it is often more difficult to achieve wider acceptance for the introduction and operation of such taxes. Given that research on wealth tax is being carried out by my Department and the ESRI, I do not consider it is necessary or appropriate to have another parallel stream of work, as suggested by Deputies in terms of the preparation of an additional report. I am not disposed to accept the amendment, and Deputies will understand that the commitment given previously will be fulfilled and the report along the lines being sought will be presented at the tax conference at Dublin Castle two weeks from now.