Seán Sherlock (Cork East, Labour)
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Question 93: To ask the Minister for Finance if he plans to implement a double taxation treaty to allow for the taxing of visiting rock bands and performers in view of the fact that they are levied in every other country in the world and revenue is being lost as a result of the failure to implement this tax; and if he will make a statement on the matter. [15967/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The question of introducing a withholding tax regime on income earned in Ireland by foreign artists was examined in the late 1980's/ early 1990's by my Department and the Revenue Commissioners. However, because of the small prospective yield at the time, the capacity of such a regime to discourage artists visiting Ireland and the administrative burden associated with collecting a relatively small yield, it was decided not to proceed. I have asked that the matter be reviewed given developments since the last review.

I understand that while many countries have arrangements for the taxation of foreign artists it is not universal. For example I am informed that Denmark and the Netherlands do not have such arrangements.

Finian McGrath (Dublin North Central, Independent)
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Question 94: To ask the Minister for Finance if he will support a matter (details supplied). [15982/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The 2009 annual income levy rates are set out in the table below as contained in the Financial Resolution, passed on Budget night.

For PAYE taxpayers whose income is spread evenly throughout the year this equates to the rates set out below.

The financial resolution providing for the levy changes contained an anti-avoidance measure, the composite rate structure, to ensure that all taxpayers are treated equally. The purpose of the composite rate was to prevent those with the ability to control the payment of their income manipulating their drawings from their business in such a way as to avoid payment of the increased levies. Therefore, the annual rates come into play to ensure they pay their fair share.

The position is that before the budget, some firms were being advised to bring forward salaries and other payments simply to avoid the impact of increases in income tax levies. The composite rate contained in the financial resolution prevents these manipulations and ensures fairness in the system.