Written answers

Wednesday, 16 September 2009

9:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 251: To ask the Minister for Finance if his attention has been drawn to the administrative problems and problems for individual taxpayers resulting from the introduction of the income levy, whereby in many cases persons only discover their income levy obligation at the end of the financial year; and if he will make a statement on the matter. [30453/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy is an annual charge. This means that the levy is applied to an individual's aggregate income from all sources in a year, that is, employment, self-employment, rental, investment and dividends. For those with employment only income, which is paid regularity over the course of the year, the payroll deduction system should ensure that the right amount of levy for the year is deducted and paid over to the Revenue Commissioners without the need for any end of year review or claim by the taxpayer.

To the extent that a person may have variations in the level or regularity of their employment income, or where a person has income from other sources in addition to wages and salaries, it will be necessary for that person to apply to the Revenue Commissioners for an end of year review, unless the person is subject to the self-assessment system in which case they will be required to pay Preliminary Tax by 31 October 2009 and submit a self-assessed tax return for 2009 by 31 October 2010.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 252: To ask the Minister for Finance if it was envisaged that the income levy would apply to all income once the taxpayer reached the qualifying threshold income; his views on whether this could be unfair to persons earning slightly in excess of the threshold; and if he will make a statement on the matter. [30454/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The income levy structure provides an exemption threshold of €15,028 below which the income levy is not applied. The income levy is applied at a rate of 2% on all income up to €75,036, at 4% on income above this amount up to €174,980 and at 6% on income above €174,980. While it is acknowledged that the threshold at €15,028 leads to a "step" in the income levy, the overall structure is fair and progressive.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 253: To ask the Minister for Finance if he will ensure that the Revenue Commissioners liaise with the Department of Social and Family Affairs to ensure that artists availing of the artists' exemption scheme are not presented with a large backlog of unpaid PRSI payments; and if he will make a statement on the matter. [30455/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that artists who qualify for exemption from income tax under the provisions of section 195 of the Taxes Consolidation Act 1997 are obliged to pay any PRSI due on such income directly to the Department of Social and Family Affairs.

Arrangements are already in place whereby the Revenue Commissioners notify the Department of Social and Family Affairs, on request, of the names, PPS Numbers and income details of those tax-exempt artists who have submitted a return of income to the Revenue Commissioners, so as to facilitate the determination and payment of the PRSI liability of each such person. Artists are obliged under the provisions of section 195(11) of the Taxes Consolidation Act 1997 to make an annual return of income. I am also informed by the Revenue Commissioners that arrangements are currently being put in place to facilitate the payment of PRSI by tax-exempt artists directly through the self-assessment Pay and File tax system for 2009 and following years.

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