Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 98: To ask the Minister for Finance the estimated cost of each property based tax relief (details supplied) for each year from 2005 to 2008; the number of people availing of each relief; the average value of the relief to claimants; and the highest individual relief and the lowest for each of the above years. [4161/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of each of the property based tax reliefs is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years 2005 and 2006, the latest years for which this information is available. These are as set out in the following tables.

Note:

Because of the Revenue Commissioners' obligation to observe confidentiality in relation to the taxation affairs of individual taxpayers, a figure for the highest amount of relief claimed under the various property based schemes is not provided in relation to individual amounts exceeding €1 million. This is due to the small numbers of returns with amounts exceeding that level.

I am advised by Revenue that they are not in a position to provide data for 2007 and 2008 as the tax returns for those years are either being processed currently or are not yet due. The estimated relief claimed has assumed tax foregone at the 42% rate in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax. The highest and lowest tax reliefs shown have also been calculated on this basis.

As regards the mid-Shannon scheme which commenced in June 2008, complete data will not be available until all of the relevant tax returns for 2009 are filed and processed.

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return form 12 is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return form 11. The non inclusion of form 12 data for the schemes which provide relief for residential owner occupiers such as the Rural Renewal, Urban Renewal, Town Renewal, Park and Ride and the Living over the Shop Schemes may well mean that the actual number of claimants in each of these schemes could exceed the numbers indicated with a consequential lowering of the actual average tax cost per claimant.

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 99: To ask the Minister for Finance the number of persons receiving tax reliefs in bands of €25,000 upwards and in bands of €25,000 for example €25,000, €50,000, €75,000 by way of contributions to private pension schemes, in particular self-administered pension schemes for each year from 2005 to 2008; the cost for each year; the number of such people who receive tax relief in excess of €100,000 per annum; and the cost of such relief for each of the years 2005 to 2008. [4162/09]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 104: To ask the Minister for Finance the number of schemes available in respect of tax relief on private pensions; the number of self-administered pension schemes; the number of persons availing of such schemes; the cost of each type of scheme for each year from 2005 to 2008; the average value of the relief to each claimant in each category; and the highest relief and the lowest relief. [4167/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 99 and 104 together.

As part of the work on the Green Paper on Pensions, a review was carried out into the current regime of tax incentives for supplementary pension provision. This was done with a view to developing more comprehensive and reliable estimates of the cost of reliefs in this area. Arising from the review, the following revised and up-to-date estimates of the cost of tax and other reliefs for private pension provision for 2006 have been made.

Corresponding estimates are also provided for 2005 to the extent that it has been possible to update them on a consistent basis. I am advised by the Revenue Commissioners that they are not in a position to provide data for 2007 and 2008 as the tax returns for those years are either being processed currently or not yet due.

Tax Relief — Different Income Categories

I am informed by the Revenue Commissioners that it is not possible to provide disaggregated figures in regard to the take-up of the tax relief for all pension contributions across different income categories because the relevant data in regard to contributions is not captured in such a way as to make this possible. The latest relevant information available in this area is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2005, as returned for that year by individuals in personal income tax returns. This information is set out in the following tables which provide the number of cases as well as amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.

The lower aggregate figures for cost and numbers availing of RACs in this table (compared to the slightly higher figures for RACs in the preceding table for 2005) are taken directly from filed income tax returns which represent about 98.5% of all income tax returns expected for 2005. The higher figures in the initial table have, in accordance with normal practice, been grossed-up.

The figures for PRSAs in this table do not include contributions made by employees through employers' payroll systems and in respect of which tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to make it possible to provide disaggregated figures. Contributions to RACs are generally not made through employers payroll systems. I am informed by the Revenue Commissioners that there are approximately 6,500 small self- administered pension schemes in existence.

Employer contributions to small self-administered pension schemes are treated as a trading expense. Employee contributions are netted off as deductions from an individual's income before arriving at the definition of income for tax purposes. Figures of pension contributions by employers and employees are not captured in such a way as to provide a dedicated basis for compiling estimates of the number of persons availing of such schemes, the cost of each type of scheme, the average value of the relief to each claimant in each category or figures of the highest relief and the lowest relief.