Written answers
Wednesday, 11 November 2009
Department of Finance
Tax Code
9:00 am
Róisín Shortall (Dublin North West, Labour)
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Question 144: To ask the Minister for Finance the relief available to a medical card holder who was charged for dental treatment by a dentist not participating in the General Medical Service scheme. [40863/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that health expenses relief may be claimed by all taxpayers in respect of "non-routine" dental treatment in accordance with Section 469 of the Taxes Consolidation Act 1997. In order to claim the relief, an individual must hold a completed form Med 2 (Dental) signed and certified by the dental practitioner.
Full information on qualifying treatments and on how to submit a claim may be obtained on the Revenue website at www.revenue or by telephoning the Office of the Revenue Commissioners at 1890 333 425.
Richard Bruton (Dublin North Central, Fine Gael)
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Question 145: To ask the Minister for Finance the estimated cost or savings in respect of the 2010 tax year of the various tax recommendations of the Taxation Commission. [40985/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Commission on Taxation proposed the abolition, retention and amendment of certain reliefs. No costings were provided for the amended reliefs. Set out below is the table of recommendations for abolition and the corresponding savings.
| Ref | Commission on Taxation Recommendations - Tax Expenditures for ABOLITION | Yield Estimate €m |
| 8.12 | TAX EXPENDITURES - CHILDRENThe capital allowances for childcare facilities should be discontinued. | 6 |
| 8.13 | The income tax exemption for childcare service providers should be discontinued. | 1 |
| 8.14 | The exemption of employer-provided childcare from the benefit-in-kind charge should be discontinued | 6 |
| 8.16 | TAX EXPENDITURES - HOUSINGIncome tax relief for rent paid for private rented accommodation should be discontinued. | 48 |
| 8.18 | Income tax relief for service charges should be discontinued. | 21 |
| 8.19 | The rent-a-room relief should be discontinued. | 4 |
| 8.20 | The capital gains tax and stamp duty exemptions on the disposal of site to a child should be discontinued. | 38 |
| 8.26 | TAX EXPENDITURES – HEALTHTax relief for long-term care policies should be discontinued. | - |
| 8.29 | The dependent relative tax credit should be discontinued.· The entitlement to mortgage interest relief that is derived from entitlement to the credit in relation to a principal private residence occupied by a dependent relative should continue. A person should be able to avail of first-time buyer levels of relief once in respect of himself or herself and once in respect of a dependent relative who has not claimed for himself or herself.· The separate entitlement to CGT relief on the disposal of a principal private residence occupied by a dependent relative should be discontinued. | 1 |
| 8.36 | RELATING TO PHILANTHROPYIncome tax relief for expenditure on heritage buildings and gardens should be discontinued | 6 |
| 8.37 | The benefit-in-kind exemption on employer-provided art objects in a heritage building or garden should be discontinued. | - |
| 8.47 | TAX EXPENDITURE - ENTERPRISE (INCLUDING FARMING)The restriction of balancing charges on a building to the relevant holding period for that building should be discontinued for future acquisitions. | - |
| 8.50 | Tax exemption for patent royalties should be discontinued. | 84 |
| 8.54 | Stock relief for farming businesses should be discontinued. | 2 |
| 8.57 | The tax relief for the purchase of milk quota should be discontinued. | - |
| 8.59 | The tax exemption for payments to National Co-operative Farm Relief Services Ltd. and payments made to its members should be discontinued. | - |
| 8.63 | The investment allowance for machinery and plant and for exploration expenditure should be discontinued. | - |
| 8.76 | TAX EXPENDITURES – EMPLOYMENTIncome tax relief for trade union subscriptions should be discontinued. | 19 |
| 8.91 | The PRSI exemption for employee (unapproved) share options should be discontinued. | 18 |
| 8.94 | · The income tax exemption for approved share option schemes (APSOs) should be discontinued.· The taxable value of option gains should also be liable to both employer and employee PRSI and to the health contribution levy and the income levy. | 3 |
| 8.97 | The income tax exemption for new shares purchased on issue by employees should be discontinued. | 1 |
| 8.98 | The artist's exemption should be discontinued; consideration should be given to introducing income averaging in the taxation of income from creative work. | 66 |
| 8.100 | The seafarer's allowance should be discontinued. | 1 |
| 8.102 | The income tax exemption for payments under Scéim na bhFoghlaimeoirí Gaeilge should be discontinued | - |
Richard Bruton (Dublin North Central, Fine Gael)
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Question 146: To ask the Minister for Finance the estimated number of taxpayers in the income tax code in the tax year to date in 2009 which are paying no income tax, paying at a rate of 20% and paying at the 41% rate; and the distribution across single married one earner, married two earner families. [40986/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows in respect of the income tax year 2009.
2009 Distribution of Income earners by Personal Status and Tax Rate
| Exempt(Standard rate liability fully covered by credits or Age Exemption Limits) | Marginal Band | Paying tax at the standard rate rate (including those whose liability at the higher rate is fully offset by credits) | Higher rate Liability not fully off set by credits | All cases | |
| Number | Number | Number | Number | ||
| Single | 716,708 | 2,124 | 580,743 | 141,559 | 1,441,134 |
| Married 1Earner | 190,936 | 8,878 | 117,211 | 54,303 | 371,328 |
| Married 2 Earners | 96,919 | 4,888 | 207,230 | 96,598 | 405,635 |
| Widowed | 44,227 | 1,170 | 21,656 | 7,749 | 74,802 |
| Total | 1,048,790 | 17,060 | 926,840 | 300,209 | 2,292,899 |
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007, adjusted as necessary to take account of the most recent data available for income and employment trends for the year in question. They are therefore provisional and likely to be revised.
It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
Richard Bruton (Dublin North Central, Fine Gael)
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Question 147: To ask the Minister for Finance the number of taxpayers subject to the special income levy in the tax year 2009 which are paying at the 2% rate, at the 4% rate and at the 6% rate. [40987/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As Deputy is aware the Finance Act 2009 introduced legislative changes to the income levy to bring into effect an increase in rates and a reduction in rate thresholds from 1 May 2009. As a result of the legislative changes two sets of income levy rates and thresholds apply to different periods in 2009. In addition, the Finance Act 2009 introduced composite annualised rates to be applied for the 2009 year of assessment and these rates are as follows:
| Part of aggregate income | Composite Rate of Income Levy |
| The first €75,036 | 1.67% |
| The next €25,064 | 3% |
| The next €74,880 | 3.33% |
| The next €75,140 | 4.67% |
| Balance | 5% |
I am informed by the Revenue Commissioners that the numbers of taxpayers whose highest rate for income levy is 2%, 4% or 6% in the period post 1 May, 2009 are as follows:
| Rate of Income Levy | Numbers |
| 2% | 1,372,100 |
| 4% | 113,900 |
| 6% | 21,800 |
Numbers are rounded to the nearest hundred.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2007, adjusted as necessary to take account of the most recent data available for income and employment trends for the year in question. They are therefore provisional and likely to be revised.
It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
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