Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 362: To ask the Minister for Finance if a study has been undertaken to assess the return to the Exchequer if a wealth tax was introduced here; and if such a study has not been completed, if he will do so. [34430/09]

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 363: To ask the Minister for Finance if he will make a statement on the amount an annual 1% wealth tax on assets worth more than €1 million would return to the Exchequer in the course of a year. [34431/09]

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

I propose to take Questions Nos. 362 and 363 together.

I am informed by the Revenue Commissioners that as they have no statistical basis for compiling estimates in relation to a potential wealth tax, it is not possible to provide the information requested by the Deputy.

I have also been informed that no general research has been carried out recently by either the Department of Finance or the Revenue Commissioners regarding the extent and breakdown of wealth as opposed to income. I have no immediate plans to carry out such a study. However, it should be noted that all of an individual's assets and liabilities are declared in a number of specific circumstances — for example:

* after the death of an individual, on an Inland Revenue Affidavit, which is a document that is required to be delivered to the Revenue Commissioners and certified by them in order to obtain a Grant of Probate or Letters of Administration; or

* if an individual is required to submit a Statement of Affairs in the context of an investigation by the Revenue Commissioners.

In addition, an individual is asked to list chargeable assets acquired and disposed of during a year on their annual tax return. Asset values increase and decrease over time and in the context of recent economic circumstances, they may have declined considerably in many cases. Thus, if the value of an asset or of an individual's wealth is measured at a particular time there is no guarantee that the asset value or the individual's wealth will remain at that level or increase from that point.

Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company when they dispose of an asset (CGT) or acquire an asset through gift or inheritance (CAT). The rate of both these taxes was increased to 25% in the last Budget and Finance Act. All taxes and potential taxation measures are constantly reviewed in the context of the Budget and Finance Bill.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 364: To ask the Minister for Finance the financial impact on the Exchequer of the abolishment of the 2% income levy on persons earning up to €75,036. [34433/09]

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

I am informed by the Revenue Commissioners that the cost to the Exchequer arising from abolition of the 2% income levy on persons earning up to €75,036 would be €975 million in a full year. The figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2007 adjusted as necessary for income and employment trends for the year 2010. It is therefore provisional and likely to be revised.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 365: To ask the Minister for Finance the amount that would be raised by introducing a third tax rate of 48% on income earned in excess of €100,000. [34435/09]

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 366: To ask the Minister for Finance the amount that would be raised by introducing a third tax rate of 50% on income earned in excess of €100,000. [34436/09]

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

I propose to take Questions Nos. 365 and 366 together.

It is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples.

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2010 incomes, of the introduction of each of these 48% and 50% rate bands would be of the order of €355 million and €455 million respectively. Given the current band structures, major issues would need to be resolved as to how in practice such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners. These figures are provisional and likely to be revised.