Kieran O'Donnell (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 176: To ask the Tánaiste and Minister for Finance the breakdown of taxes under the headings of stamp duty, VAT and capital gains tax received from the residential housing sector in 2005, 2006 and to date in 2007; the percentage they accounted for of total taxes collected by the Exchequer under each tax heading; his views on the reliance of the Exchequer on revenues from the housing sector; and if he will make a statement on the matter. [30010/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

While the Department of Finance does not have a breakdown of Stamp Duty receipts on an Exchequer basis, the Revenue Commissioners have provided a breakdown of Stamp Duty on a net receipts basis. Revenue net receipts differ from Exchequer receipts due to accounting and timing issues. Stamp Duty from Residential Properties on a Revenue net receipts basis for 2005 were €945 million, or 35% of total net Stamp Duty receipts. Stamp Duty from Residential Properties on a Revenue net receipts basis for 2006 were €1,311 million, or 36% of total net Stamp Duty receipts. Stamp Duty from Residential Properties on a Revenue net receipts basis for 2007, up to the end of September, were €902 million, or 32% of total net Stamp Duty receipts. I am informed by the Revenue Commissioners that it is not possible to furnish precise figures of the VAT take from the residential housing sector, as the information furnished on VAT returns does not require the yield from particular sectors of trade to be identified. However, based on data published by the Department of the Environment, Heritage and Local Government, the estimated yield from this sector, which includes VAT on repairs and maintenance, was €2,841 million, or 24% of Exchequer VAT receipts, in 2005; €3,247 million, or 24% of Exchequer VAT receipts, in 2006; and €3,501 million, or 24% of the Budget VAT target in 2007. The figure provided for 2007 is the estimated amount for the full year.

I have been informed by the Revenue Commissioners that a breakdown of capital gains tax by asset type is not available. However, it is possible to provide a proportional breakdown by reference to asset types of the aggregate consideration underlying chargeable gains, that is, the total selling price prior to allowing any offsets or deductions, for the tax year 2005. On the basis of the 2005 Form 11 tax returns, 18% of the aggregate consideration was attributed to the disposal of residential property. Data for the tax year 2006 is not yet available as the income tax returns for that year were not due for filing until October 2007. Similarly, 2007 data will not be available until late 2008. While tax revenues from Stamp Duties and Capital Gains Tax have made an increasing contribution to the Exchequer in recent years, it is important to put that contribution in context. The Budget forecast of yields from Stamp Duties and CGT in 2007 together represent approximately 15% of tax revenues overall. By contrast, the main four taxes — Income Tax, VAT, Corporation Tax and Excise Duties — together account for about 85% of expected revenues this year. Care has been taken not to plan the public finances around the assumption that tax receipts from the property and wider construction sector continue to grow in future years as they have done previously. The 2007 forecasts for Stamp Duties and CGT together assumed a modest increase over their 2006 out-turn on the basis that the property market would begin to ease back to more sustainable levels of growth.

Kieran O'Donnell (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 178: To ask the Tánaiste and Minister for Finance the breakdown of PAYE/PRSI, income tax and corporation tax received from the construction sector for 2005, 2006 and to date in 2007; the percentage they accounted for of total taxes collected under each category; and if he will make a statement on the matter. [30012/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that, as the information furnished on tax returns does not generally require the yield from a particular sector or sub-sector of economic activity to be identified, the precise figures of net yield of tax revenues collected in respect of the activities specified in the question cannot be readily identified. Information can, however, be provided as to the estimated gross amounts of certain taxes paid (i.e. before allowing for repayments) by taxpayers in the construction industry. This information is not yet available in respect of 2007. The Revenue Commissioners have supplied the information in relation to 2005 and 2006.

"PAYE/PRSI" includes both employee and employer PRSI contributions in respect of employees subject to PAYE and these contributions are transferred to the Social Insurance Fund. "Income Tax (non-PAYE)" includes direct tax payments received from self-assessed taxpayers and the estimated Relevant Contracts Tax not offset to other taxes, attributable to the construction industry but excludes certain "deduction" taxes such as Deposit Interest Retention Tax, Withholding Tax on professional fees, Dividend Withholding Tax as well as yields from audit and other back duty settlements.

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. 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. While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analyses there will undoubtedly be some inaccuracies at individual level. This should be borne in mind when considering the information provided. The figure provided for the estimated gross yield from the construction industry has been expanded to include the yield from activities and businesses, which are related either in whole or in part to the construction sector. An example of these would be architecture, engineering and the manufacture of products used in construction but not real estate activities.