Joan Burton (Dublin West, Labour)
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Question 161: To ask the Minister for Finance the amount of income earned; the amount of tax paid; the average rate of tax paid and the standard deviation from this average for the top 4% of income tax earners; if he will reproduce this information for each quintile of income earners. [41374/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the most recently completed historical data available on incomes and tax is in respect of the income tax year 2007. On this basis the information requested in relation to the top 4% of income earners and income quintiles is set out in the following table. To assemble the figures by income quintile, the total number of income earners on the income tax record for each year was broken down into 5 equal groups and distributed over 5 income ranges in ascending order of income. The figures for gross income, income tax, average tax rate and standard deviation were then established for each quintile group as appropriate. It should be noted that the tax liability in any of the income quintiles shown also includes a liability to DIRT. In the lower quintiles, this is likely to be the only tax liability arising.

It should be noted that the figures for income shown in the table relate to gross income as defined in the Revenue Statistical Report, 2008. They do not include incomes such as income from patent royalties, profits from commercial forestry, income before pension contributions and income from earnings of writers, composers and artists. It should also be noted that gross income is different to taxable income, also defined in the Revenue Statistical Report 2008, which relates to income after personal reliefs and deductions (including deductions for capital allowances) but prior to the application of tax credits and reliefs at the standard rate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Distribution of incomes and tax by income quintile

Average rate of tax is calculated on the basis of tax as a percentage of gross income.