Written answers
Tuesday, 13 October 2009
Department of Finance
Tax Code
12:00 pm
Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context
Question 109: To ask the Minister for Finance the return to the Exchequer of increasing capital gains tax to 40%. [35639/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context
I am informed by the Revenue Commissioners that the estimated full year yield from increasing the Capital Gains Tax (CGT) rate to 40% for individuals could be in the region of €190 million, assuming no significant behavioural change on the part of taxpayers. CGT is very dependent on individual behaviour and a change in rate may not produce a corresponding increase or decrease in tax yield. In current economic conditions any estimate of additional yield must be treated with a significant degree of caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.
No comments