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

I am informed by the Revenue Commissioners that the figures for incomes and tax as provided in my reply to Question No. 65 of 3 October 2012 were based on projected estimates of the total liability to tax in respect of the tax year 2012 and were not based on cash receipts expected to be collected in the corresponding calendar year. The figures were estimates from the Revenue tax forecasting model using actual data for the year 2009, adjusted as necessary for estimated income and employment trends in the interim. Figures of cash receipts are subject to timing arrangements and can also be distorted by cash flow adjustments. The incomes and tax values as calculated by the model cannot, therefore, be revised or updated by reference to actual revenue outcomes for years 2011 or 2012. For ease of reference, the information I provided for 2012 in my reply of 3 October last is set out in the following table.

-	Top 1% of income earners	Top 5% of income earners	Top 10% of income earners	Top 20% of income earners	Top 10,000 income earners
Number of income earners	21,650	108,250	216,500	433,000	10,000
Gross income	€8,742m	€20,122m	€29,600m	€43,300m	€5,959m
Average earnings	€403,760	€185,885	€136,710	€100,000	€595,900
Amount of income tax, USC & PRSI	€3,349m	€7,145m	€9,849m	€13,186m	€2,321m
As % of total Income tax, USC and PRSI	18%	39%	53%	71%	13%
Effective tax rate	38%	36%	33%	30%	39%

It should be noted that the figures for tax and effective tax rate include income tax, PRSI and universal social charge. The figures are estimates from the Revenue tax forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised. In addition, gross income is as defined in a Revenue statistical report for 2010. The numbers of income earners shown in the table counts a married couple who have elected or have been deemed to have elected for joint assessment as one tax unit, although USC and PRSI are individualised charges, and as such the yield is calculated on the basis of individual incomes.

The basic data underlying the figures of tax and incomes provided in this form for 2012 were compiled as part of the preparations for budget 2013. Corresponding data for 2011 was not prepared as it would have been less relevant for budgetary considerations and equally demanding on resources. For that reason, figures are not readily available for 2011 on the same basis and could not be collated in the time available for this reply due to the significant data processing work involved. This is a matter which the Deputy needs to study. It is not something on which I can supply further information across the House.

Additional information not given on the floor of the House.

If it will assist the Deputy, I am attaching the following table, showing a projected distribution of 2011 incomes by income range, which I included in my reply to Question No. 134 tabled by Deputy Dowds on 7 February 2012. This table includes figures for income tax but not for USC or PRSI.

Gross Range	Income	Numbers	Tax Paid
€	€		€
0 - 5,000	487,986,108	227,095	0
5,001 - 10,000	1,255,663,199	167,836	446,003
10,001 - 14,000	1,779,984,419	147,969	4,022,590
14,001 - 15,000	539,083,092	37,184	1,688,461
15,001 - 15,514	291,944,937	19,146	958,432
15,515 - 17,542	1,276,179,382	77,181	6,147,635
17,543 - 20,000	1,931,125,757	102,910	30,974,477
20,001 - 30,000	9,573,599,824	385,744	381,082,644
30,001 - 33,343	3,400,149,735	107,551	207,574,683
33,344 - 40,000	6,800,653,487	185,876	564,306,322
40,001 -,50,000	9,142,633,523	204,850	1,058,021,456
50,001 - 60,000	7,506,470,503	137,311	1,086,273,677
60,001 - 70,000	6,113,230,290	94,466	992,452,875
70,001 - 80000	5,106,969,027	68,362	913,147,308
80,001 - 90,000	4,000,986,987	47,247	773,899,034
90,001 - 100,000	3,108,236,315	32,818	642,150,132
100,001 - 125,000	5,316,263,933	47,941	1,196,849,254
125,001 - 150,000	3,121,226,315	22,950	762,690,308
150001 - 175,000	1,893,410,584	11,746	483,959,819
175,001- 200,000	1,288,116,235	6,910	336,870,896
200,001 - 250,000	1,763,013,081	7,942	469,425,803
250,001 - 300,000	1,151,975,837	4,226	312,101,016
300,001 - 350,000	828,763,978	2,563	225,119,785
350,001 - 400,000	597,687,366	1,601	166,979,624
400,001 - 450,000	476,565,416	1,126	131,183,043
450,001 - 500,000	373,468,949	788	104,398,370
500,001 - 750,000	1,199,017,554	2,000	334,290,603
750,001 - 1,000,000	534,787,080	626	154,811,699
1,000,001 - 2,000,000	677,124,288	519	180,750,996
Over 2,000,000	1,016,296,602	117	345,279,341
Totals	82,552,613,799	2,154,599	11,867,856,287

The figures are estimates from the Revenue tax forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised. It should be noted that the income ranges shown in the above tables relate to gross income as defined in a Revenue statistical report for 2010. It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Furthermore, the estimated earnings of public servants are not separately identifiable in the figures projected for 2011 and 2012. The latest relevant sector-based information available on income earners in the tax system is derived from income tax returns filed for the income tax year 2010 and represents about 95% of all returns expected at the time the data was compiled for analytical purposes. The data relating to the public sector includes individuals in receipt of various forms of income from public sources that would not normally be regarded as constituting employment within the public service, for example, those receiving fees or those on State boards. On the basis of the available tax based data, it is not possible to identify and exclude income from public sources to groups that would not normally be regarded as employed within the public service or to distinguish the earnings of employees associated with typical work patterns. Accordingly, it is likely that the number of public servants from this source is overstated. On that basis, the total numbers of public sector employees, and the breakdown of those numbers by income ranges, is set out as follows:

Income Tax Year 2010	Public Sector Employees
Range of Gross income	Total Number
€0 – €20,000	109,492
€20,001 – €30,000	72,315
€30,001 – €40,000	81,786
€40,001 – €50,000	60,480
€50,001 – €65,000	48,105
€65,001 – €80,000	24,100
€80,001 – €100,000	15,144
€100,001 – €150,000	10,229
€150,001 – €185,000	1,188
€185,001 – €200,000	252
Over €200,000	854
Totals	423,945

Further historical details on incomes earned in the income tax year 2010 are provided in Tables IDS 1 to 17 of the income distribution chapter of the Revenue statistical report for 2011, which is available on the Revenue website. A married couple which has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

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