Written answers
Thursday, 5 October 2006
Department of Finance
Tax Code
4:00 pm
Paul McGrath (Westmeath, Fine Gael)
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Question 82: To ask the Minister for Finance the 10 most popular occupations or professions in respect of self-employed persons earning more that €200,000 per annum. [31333/06]
Paul McGrath (Westmeath, Fine Gael)
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Question 90: To ask the Minister for Finance the 10 most popular occupations or professions in respect of PAYE workers earning more that €200,000 per annum. [31341/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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It is proposed to take Questions Nos. 82 and 90 together.
I am informed by the Revenue Commissioners that the latest relevant sector-based information available on employees taxed under the PAYE system and self-employed persons taxed under the self-assessment system is derived from income tax returns filed for the income tax year 2003. It is not possible at present to provide the information sought for a more recent year if the data are to be reasonably accurate.
The sector identifier used on the tax records is based on the 4 digit "NACE code (Rev. 1)" which is an internationally recognised economic activity code system. On this basis, the information requested is as follows:
Gross income exceeding €200,000 by NACE Economic Activity Code, 2003. | |
Employees | |
Sector | Number of income earners with gross income exceeding €200,000 |
Cases where no sector identified (9991) | 1,110 |
Letting of own property (70.20) | 481 |
Medical practice activities (85.12) | 319 |
Monetary intermediation (65.12) | 290 |
Hospital activities (85.11) | 280 |
General construction of building and civil engineering works (45.21) | 249 |
Business and management consultancy activities (74.14) | 153 |
Activities auxiliary to insurance and pension funding (67.20) | 134 |
Development and selling of real estate (70.11) | 128 |
Architectural and engineering activities and related technical consultancy (74.20) | 127 |
Self-Employed | |
Sector (economic activity code) | Number of income earners with gross income exceeding €200,000 |
Legal Activities (74.11) | 1,426 |
Medical practice activities (85.12) | 1,025 |
Cases where no sector identified (9991) | 692 |
Accounting, book-keeping and auditing activities; tax consultancy (74.12) | 494 |
Letting of own property (70.20) | 409 |
Dental practice activities (85.13) | 229 |
Farming (1.11, 1.21, 1.22, 1.30, 1.90) | 184 |
Architectural and engineering activities and related technical consultancy (74.20) | 170 |
Hospital activities (85.11) | 154 |
Dispensing chemists (52.31) | 107 |
'Employees' and 'Self-Employed' are classified for this purpose according to their main source of income. The NACE codes are not essential for the assessment and collection of taxes and duties and the correct allocation and maintenance of these codes is subject to the limit of available resources. The economic sector breakdown on Revenue records is based on details which were recorded using information supplied by income earners or their employers at some point in the past.
Some of that information may have been incorrect or misinterpreted in the first instance, or may not have been subsequently updated as necessary. For these reasons some of the economic sector codes on tax records are likely to be out of date or inaccurate and the reliability of the figures for the sectors currently provided will be limited to that extent. A married couple who has elected or who has been deemed to have elected for joint assessment is counted as one tax unit and their incomes are aggregated in the statistics.
Paul McGrath (Westmeath, Fine Gael)
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Question 83: To ask the Minister for Finance the number of PAYE workers and the number of self employed workers who have incomes of €200,000, €200,000 to €400,000, €400,000 to €600,000, €600,000 to €1,000,000 and over €1 million who paid tax at only the 20% rate of tax and paid no income tax at all. [31334/06]
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 and are set out the following tables. For completeness, the numbers of income earners liable for tax at the top rate of 42 per cent are also included.
The Deputy will be aware that this material is dated in that major changes I made in my Budgets to the structure and extent of tax reliefs will increase the average tax rate for those on higher incomes using such reliefs. Caution should be used in basing policy pronouncements on this data.
A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit. Married couples and individuals with income chargeable to tax under both Schedule E and Schedule D have been classified in the following tables by reference to the Schedule under which the larger amount of income is taxable.
The designation of a tax rate to an income earner in the tables is based on identifying the top tax rate applying to the taxable income of each earner. To arrive at the figure for taxable income, the gross income is reduced by various relevant deductions and allowances such as capital allowances, losses, allowable expenses and retirement annuities. In some cases, these will reduce the taxable income to nil.
The information on incomes is based on income returns on Revenue records at the time the data were compiled for analytical purposes, representing about 96 per cent of all returns expected.
Income Tax 2003 | ||||||||||
Number of mainly PAYE income earners with incomes of €200,000 or greater | ||||||||||
Range of Gross Income* | No net liability for income tax | Liable for tax at the standard rate (20%) or marginal relief | Liable for tax at the higher rate (42%) | Overall Total | ||||||
Single* | Married | Total | Single* | Married | Total | Single* | Married | Total | ||
200,000 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 2 | 3 | 3 |
200,000 to 400,000 | 0 | 0 | 0 | 0 | 4 | 4 | 596 | 4,169 | 4,765 | 4,769 |
400,000 to 600,000 | 0 | 0 | 0 | 0 | 0 | 0 | 86 | 607 | 693 | 693 |
600,000 to 1,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 34 | 262 | 296 | 296 |
Over 1,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 41 | 237 | 278 | 278 |
0 | 0 | 0 | 0 | 4 | 4 | 758 | 5,277 | 6,035 | 6,039 |
Income Tax 2003 | ||||||||||
Numbers of mainly self-employed income earners with incomes of €200,000 or greater | ||||||||||
Range of Gross Income* | No net liability for income tax | Liable for tax at the standard rate (20%) or marginal relief | Liable for tax at the higher rate (42%) | Overall Total | ||||||
Single* | Married | Total | Single* | Married | Total | Single* | Married | Total | ||
200,000 | 0 | 0 | 0 | 0 | 0 | 0 | — | — | — | 0 |
200,000 to 400,000 | 4 | 30 | 34 | 9 | 38 | 47 | 742 | 3,421 | 4,163 | 4,224 |
400,000 to 600,000 | 3 | 10 | 13 | 0 | 4 | 4 | 178 | 946 | 1,124 | 1,141 |
600,000 to 1,000,000 | 3 | 9 | 12 | 0 | 3 | 3 | 62 | 490 | 552 | 567 |
Over 1,000,000 | 1 | 3 | 4 | 2 | 3 | 5 | 34 | 179 | 213 | 222 |
11 | 52 | 63 | 11 | 48 | 59 | 1,016 | 5,036 | 6,052 | 6,174 | |
"Single" includes widowed persons |
Paul McGrath (Westmeath, Fine Gael)
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Question 84: To ask the Minister for Finance the number of self-employed workers in a number of income thresholds in each of the past five years. [31335/06]
Paul McGrath (Westmeath, Fine Gael)
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Question 95: To ask the Minister for Finance the number of PAYE income earners in a number of income thresholds (details supplied) in each of the past five years. [31371/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 84 and 95 together.
I am informed by the Revenue Commissioners that the information requested by the Deputy is provided in the following tables. Self-employed income earners have been distributed over the same income ranges as PAYE earners. For the tax years 2002 and 2003, the numbers of income earners at all income levels in the tables are best estimates based on data from completed end-of-year returns but adjusted to take account of returns which had not been received when the data were compiled. For later years, the numbers of earners in the various ranges of income are based on the adjusted data for 2003 projected forward in accordance with macroeconomic data relating to actual and expected growth in wages and employment.
Distribution of PAYE income earners on tax records, including tax exempt individuals, by ranges of income | |||||
Range of Gross Income | 2002 | 2003 | 2004 | 2005 | 2006 |
€10,000 or less | 397,200 | 391,000 | 379,500 | 376,500 | 371,900 |
€10,001 — €20,000 | 394,400 | 386,300 | 375,600 | 370,800 | 365,400 |
€20,001 — €30,000 | 332,800 | 341,700 | 350,600 | 361,000 | 365,000 |
€30,001 — €40,000 | 206,500 | 220,900 | 239,700 | 261,600 | 277,300 |
€40,001 — €50,000 | 128,200 | 136,100 | 151,300 | 168,600 | 183,500 |
€50,001 — €70,000 | 125,600 | 139,800 | 158,500 | 181,700 | 203,100 |
€70,001 — €90,000 | 48,500 | 55,200 | 64,400 | 76,700 | 88,200 |
€90,001 — €100,000 | 12,600 | 14,600 | 17,000 | 20,400 | 23,900 |
€100,001 — €150,000 | 21,600 | 26,600 | 32,200 | 39,500 | 47,200 |
€150,001 — €200,000 | 5,300 | 6,300 | 7,300 | 8,800 | 10,400 |
€200,001 — €500,000 | 4,600 | 5,400 | 6,200 | 7,300 | 8,500 |
€500,000 — €1,000,000 | 500 | 500 | 600 | 700 | 800 |
Over €1,000,000 | 200 | 300 | 300 | 300 | 300 |
Total | 1,678,000 | 1,724,600 | 1,783,200 | 1,874,100 | 1,945,500 |
Note: Figures in the table are rounded to the nearest hundred and any apparent discrepancies in totals are due to rounding of constituent figures. |
Distribution of Self-Employed income earners on tax records, including tax exempt individuals, by ranges of income | |||||
Range of Gross Income | 2002 | 2003 | 2004 | 2005 | 2006 |
€10,000 or less | 38,900 | 35,700 | 34,500 | 32,300 | 30,100 |
€10,001 — €20,000 | 47,500 | 44,100 | 43,200 | 40,500 | 37,600 |
€20,001 — €30,000 | 36,400 | 35,700 | 36,800 | 36,800 | 36,200 |
€30,001 — €40,000 | 24,100 | 24,300 | 25,800 | 26,500 | 27,400 |
€40,001 — €50,000 | 15,900 | 16,000 | 17,400 | 18,400 | 19,400 |
€50,001 — €70,000 | 17,500 | 18,400 | 20,300 | 21,900 | 23,900 |
€70,001 — €90,000 | 8,400 | 8,900 | 10,200 | 11,300 | 12,900 |
€90,001 — €100,000 | 2,600 | 2,700 | 3,100 | 3,500 | 4,100 |
€100,001 — €150,000 | 6,700 | 7,300 | 8,200 | 9,100 | 10,400 |
€150,001 — €200,000 | 3,100 | 3,200 | 3,500 | 3,800 | 4,300 |
€200,001 — €500,000 | 4,800 | 5,100 | 5,600 | 6,200 | 6,900 |
€500,000 — €1,000,000 | 900 | 1,000 | 1,100 | 1,300 | 1,500 |
Over €1,000,000 | 200 | 200 | 300 | 300 | 400 |
Total | 207,000 | 202,600 | 210,000 | 212,000 | 215,000 |
Note: Figures in the table are rounded to the nearest hundred and any apparent discrepancies in totals are due to rounding of constituent figures. |
Notes
1. It should be noted that the income ranges shown in the above tables relate to Gross Income.
Gross Income is income which:
is prior to deductions for capital allowances, interest paid, losses, allowable expenses, retirement annuities etc;
is after deduction of superannuation contributions by employees but not by the self-employed;
includes income of individuals whose total income falls below the exemption limits;
does not include certain other income which is not income for tax purposes or is exempt from tax such as profits or gains from stallion fees, profits from commercial forestry and certain income from patent royalties, certain investment income arising from personal injuries, child benefit, maternity benefit and unemployment assistance paid by the Department of Social, Community and Family Affairs, certain earnings of writers, composers and artists, bonus or interest paid under Instalment Savings Schemes operated by An Post, interest on certain Government securities, certain foreign pensions which are exempt from tax in the foreign paying country, portion of certain lump sums received by employees on cessation of their employment, statutory redundancy payments and certain military pensions; and
does not include or not fully include other income sources such as interest income that does not need to be declared or is not recorded (but from which tax has been deducted), unemployment benefit and disability benefit (non-recording of non-taxable amounts and of amounts taxed by restriction of repayments or indirectly through employers in the PAYE system), and the incomes of certain self-employed persons, including some farmers, as well as some individuals in receipt of pensions, who are not processed annually on tax records because their incomes are below the income tax thresholds.
2. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.
3. The figures for the years, 2003, 2004 and 2005 have been revised from those quoted in the reply to the Deputy's question of the 27th October 2005 (Dáil Debates, Vol. 608, No. 5, Cols 1599-1602), to take account of more up-to-date base information and revised macro-economic projections of income levels and number at work which have become available. The figures for 2004 onwards are projected estimates and may be subject to further revision.
Paul McGrath (Westmeath, Fine Gael)
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Question 85: To ask the Minister for Finance the estimated cost of reducing the top rate of income tax by 1 point and by 2 points. [31336/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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By reference to the 2007 pre-Budget ready reckoner prepared by the Revenue Commissioners, the full year costs to the Exchequer of reducing the top rate of income tax by one percentage point and two percentage points are estimated to be €230 million and €460 million, respectively. These figures are provisional, subject to revision and estimated to the nearest €5 million. The ready reckoner is available on my Department's website, at www.finance.gov.ie.
Paul McGrath (Westmeath, Fine Gael)
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Question 86: To ask the Minister for Finance the estimated cost of increasing the single person tax credit of €1,630 by €100, €200, €300 and €400. [31337/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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The increases mentioned in the question are assumed to apply in similar measures to single and widowed persons and to include the normal consequential increases in the tax credit for lone parents. These amounts doubled are assumed to apply to married couples. On this basis, and by reference to the 2007 pre-budget ready reckoner prepared by the Revenue Commissioners, the full-year costs to the Exchequer of the increases mentioned by the Deputy are estimated as follows:
Increase in personal tax credit | Estimated full-year cost |
Single/Married | €m |
€100/€200 | 205 |
€200/€400 | 405 |
€300/€600 | 610 |
€400/€800 | 815 |
These figures are provisional, subject to revision and estimated to the nearest €5 million.
The ready reckoner is available on my Department's website, www.finance.gov.ie.
Paul McGrath (Westmeath, Fine Gael)
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Question 87: To ask the Minister for Finance the estimated cost of increasing the PAYE allowance of €1,490 by €100, €200, €300 and €400. [31338/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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By reference to the 2007 pre-budget ready reckoner prepared by the Revenue Commissioners the full year costs to the Exchequer of the increases mentioned by the Deputy are estimated as follow:
Estimated full-year cost | €m |
€100 | 140 |
€200 | 280 |
€300 | 420 |
€400 | 560 |
These figures are provisional, subject to revision and are estimated to the nearest €5 million.
The ready reckoner is available on my Department's website, www.finance.gov.ie.
Paul McGrath (Westmeath, Fine Gael)
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Question 88: To ask the Minister for Finance the estimated cost to the Exchequer in 2003, 2004 and 2005 of tax relief on medical expenses. [31339/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the most recent year for which complete information is available on cost to the Exchequer and numbers of claimants for tax relief in relation to medical expenses is for the income tax year 2003. In that year an estimated number of 172,700 claimants availed of the tax relief for medical expenses at an estimated cost to the Exchequer of €82 million.
Paul McGrath (Westmeath, Fine Gael)
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Question 89: To ask the Minister for Finance the number of PAYE workers and self-employed who pay benefit-in-kind on company cars in each of the past five years; and the yield to the Exchequer on this tax for each of those years. [31340/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the information requested by the Deputy in respect of benefits-in-kind arising from the provision of cars in each of the four years up to 2003, the latest year for which the relevant figures are available, is set out below.
Year | Benefits-in-Kind | Tax Yield for Cars |
Numbers | Estimated Tax Yield | |
€m | ||
2000/2001 | 45,000 | 79.2 |
2001 (short tax "year") | 43,500 | 56.2 |
2002 | 45,300 | 82.7 |
2003 | 43,100 | 81.6 |
2004 | not available | not available |
The figures for the years to 2003 are based on returns made by individual PAYE taxpayers. New procedures introduced from 1 January 2004 mean that employers are now required to account for PAYE, PRSI and Health Contributions on the taxable value of certain benefits-in-kind and other non-cash benefits provided by them to their employees. Provision was made for the return of this information in the form P35 for 2004 due for filing by employers in February 2005. Technical enhancements to the Revenue computer system to enable this data to be captured and reported are close to finalisation. However, as details of taxable benefits are required in aggregate form only on the P35 return it will not be possible to separately identify different types of benefits.
The above figures include income earners whose main source of income is assessable to tax under Schedule D (self-employed) but who also have income from an employment subject to PAYE in respect of which a benefit-in-kind arises. It should be noted that as PAYE taxpayers were charged to tax on their earnings in the period from 6 April to 31 December 2001 and self-employed taxpayers were assessed to tax for the short "year" on 74% of the profits earned in a 12 month accounting period, the income figures will not be directly comparable with those of earlier or later years.
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