Arthur Morgan (Louth, Sinn Fein)
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Question 137: To ask the Minister for Finance the percentage of people with incomes of over €100,000 who paid tax at an effective rate of 20% of less in 2005. [20156/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the most recent basic data on incomes available from which information of the type requested by the Deputy could be derived are in respect of the income tax year 2003. If the effective rate of income tax for each income earner with gross income in excess of €100,000 in 2003 is calculated as the percentage of total tax liability to total income, some 6.7 per cent of income earners in this income category had an effective tax rate of 20 per cent or lower. The corresponding percentage for income earners with gross income in excess of €100,000 in 2002 was 7.5 per cent. These figures take account of Deposit Interest Retention Tax paid.

To arrive at the figure for total income the gross income is reduced by various relevant deductions and allowances such as capital allowances, losses, allowable expenses and retirement annuities.

It might be noted that for 2003, the tax liability of those earning over €100,000 (gross income) represents 30.3% of the total income tax liability for 2003. In addition, the effective rate for those earning over €100,000 in 2003 is 32.5%. This compares with an effective rate for those earning €100,000 or less in 2003 of 13.2% and an effective rate for all income earners in 2003 of 16.1%. A married couple who have elected or have been deemed to have elected for joint assessment is counted as one tax unit.