Written answers
Tuesday, 23 May 2006
Department of Finance
Tax Code
9:00 pm
Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context
Question 97: To ask the Minister for Finance the estimated number and percentage of income earners who are paying tax at the higher rate and the standard rate for 2006; and if he will make a statement on the matter. [19278/06]
Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context
Question 141: To ask the Minister for Finance the expected distribution of income earners for income tax payments for 2005 broken down in number and percentage terms into the categories of exempt, marginal relief, standard rate and higher rate; the comparative figures for each year from 1998 to date in 2006; and if he will make a statement on the matter. [19295/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context
I propose to take Questions Nos. 97 and 141 together.
The Deputies might wish to note that in the period in question, average tax rates have fallen for all categories of taxpayer and, for 2006, an unprecedented number of low paid income earners are projected to be outside the tax net altogether. In addition, the latest OECD data relating to the year 2005 indicate that for the single worker on average earnings, Ireland has the lowest tax wedge in the EU and one of the lowest in the OECD. For a married one earner couple with two children on average earnings, Ireland has the lowest tax wedge in the entire OECD.
I am advised by the Revenue Commissioners that the information requested by the Deputies is set out in the following table:
| Tax Year | Exempt | Marginal Relief | Standard Rate | Higher rate | All Cases | ||||
| No. | % | No. | % | No. | % | No. | % | No. | |
| 1998/1999 | 397,900 | 25.1 | 73,700 | 4.7 | 631,300 | 39.8 | 482,000 | 30.4 | 1,584,900 |
| 1999/2000 | 458,700 | 27.5 | 20,500 | 1.2 | 645,000 | 38.7 | 543,000 | 32.6 | 1,667,200 |
| 2000/2001 | 502,400 | 28.5 | 15,800 | 0.9 | 706,300 | 40.0 | 540,400 | 30.6 | 1,765,000 |
| 2001† | 528,000 | 29.5 | 7,500 | 0.4 | 719,500 | 40.2 | 535,000 | 29.9 | 1,790,000 |
| 2002 | 632,700 | 33.6 | 13,700 | 0.7 | 731,800 | 38.8 | 506,800 | 26.9 | 1,885,000 |
| 2003* | 659,400 | 34.2 | 19,500 | 1.0 | 688,400 | 35.7 | 559,500 | 29.0 | 1,926,900 |
| 2004* | 685,100 | 34.5 | 18,700 | 0.9 | 641,800 | 32.3 | 641,100 | 32.3 | 1,986,800 |
| 2005* | 721,400 | 35.6 | 17,100 | 0.8 | 624,000 | 30.8 | 666,400 | 32.9 | 2,028,900 |
| 2006* | 741,100 | 35.9 | 15,700 | 0.8 | 647,500 | 31.4 | 658,100 | 31.9 | 2,062,400 |
| *Provisional and likely to be revised. | |||||||||
| †Short tax "year" from 6 April 2001 to 31 December 2001. |
The percentages in the table are expressed in terms of numbers of all income earners on the income tax record. The figures for numbers of income earners have been rounded to the nearest hundred and any apparent discrepancies are due to rounding of constituent figures. The figures for the years 1998/99 to 2002 inclusive are based on incomes data derived from income tax returns held on Revenue records and have been grossed up to an overall expected level to adjust for incompleteness in the numbers of returns on record at the time the data were extracted for analytical purposes.
For the years 2003 to 2006, the figures are estimates derived from the Revenue tax forecasting model using actual data for the year 2002 adjusted to reflect actual or estimated growth in employment and wages for the year in question.
From the 1999/2000 tax year onwards, the personal credits, formerly allowances, and employee credit, formerly PAYE allowance, are deducted after tax is calculated rather than before the tax calculation, as was previously the case. This should be taken into account in comparing numbers for 1999/2000 and later years with the 1998/99 tax year. A married couple which has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
No comments