Written answers
Tuesday, 17 November 2009
Department of Finance
Tax Code
10:00 pm
Joan Burton (Dublin West, Labour)
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Question 163: To ask the Minister for Finance the amount of tax revenue which would be raised on a 2010 and full year basis by introducing a minimum effective tax rate for persons availing of all tax reliefs at earnings thresholds of €500,000, €250,000, €200,000, €150,000, €125,000, €100,000, €90,000 to €80,000 and €75,000. [41406/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I refer the Deputy to my response to her of Tuesday 3rd November in relation to question number 387 on the order paper of that day.
Joan Burton (Dublin West, Labour)
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Question 164: To ask the Minister for Finance, further to Parliamentary Question No. 342 of 3 November 2009, the number and the cost to the Exchequer of the tax relief for pension investment scheme for those earning less than €10,000, less than €20,000, less than €30,000, less than the average industrial wage, less than €40,000, less than €50,000, less than €60,000, less than €70,000, less than €80,000, less than €90,000, less than €100,000 and more than €100,000; and the extra revenue which would be generated for the Exchequer by limiting tax relief for pension investment to those in each of the pay brackets set out above. [41407/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the latest relevant information available is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2007. RACs and PRSAs are available to the self-employed and to employees not in occupational pension schemes. The information is set out in tables following this reply which provide the number of cases, amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges. The information is based on income returns contained in Revenue records at the time the data were compiled for analytical purposes, representing close on 90% of all returns expected. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.
The figures for the total number of cases and the total reduction in tax shown in the tables are lower than those indicated in the table supplied with the reply I gave on 3 November last to Parliamentary Question ref 38545/09 tabled by the Deputy. This is due to the fact that the figures now being provided represent under 90 per cent of all income tax returns expected for 2007, while the figures supplied on 3 November were, in accordance with normal practice, grossed-up at aggregate level to adjust for this incompleteness. It is not possible to provide corresponding figures in regard to the take-up of the tax relief for pension contributions by employers and employees to occupational pension schemes as the relevant data are not captured in such a way as to make this possible.
Provisions were included in the Finance Act 2004 with a view to improving data quality and transparency without overburdening taxpayers or employers. The Act includes provisions that require employers to provide data on superannuation contributions in the P35 form to be filed by employers from 2006 on. These changes have yielded additional information regarding the overall cost of tax relief for pension contributions but, as the returns are aggregated at employer level, they cannot provide a precise basis for measuring the potential impact on the Exchequer of any proposals to limit tax relief for pension investment for individuals across different income ranges.
| INCOME TAX 2007 | ||||||||
| Retirement Annuity - by range of Gross Income. | ||||||||
| Range of gross | ||||||||
| income | Totals | |||||||
| From | To | Number | Amount | Reduction | Tax due | Gross Tax * | Reduction in tax | |
| € | € | of cases | of deduction | in tax | for payment | as % of Gross Tax | ||
| € | € | € | € | % | ||||
| - | 10,000 | 816 | 1,090,619 | 15,433 | 1,273 | 16,706 | 92.4 | |
| 10,000 | 20,000 | 4,023 | 7,610,530 | 1,056,140 | 1,125,139 | 2,181,279 | 48.4 | |
| 20,000 | 30,000 | 9,121 | 19,640,312 | 3,639,370 | 8,985,960 | 12,625,330 | 28.8 | |
| 30,000 | 32,730 | 3,168 | 7,509,033 | 1,460,629 | 5,112,254 | 6,572,883 | 22.2 | |
| 32,730 | 40,000 | 9,127 | 23,785,995 | 5,543,666 | 20,635,934 | 26,179,600 | 21.2 | |
| 40,000 | 50,000 | 12,354 | 39,221,676 | 11,425,057 | 44,823,408 | 56,248,465 | 20.3 | |
| 50,000 | 60,000 | 10,986 | 42,422,932 | 13,034,048 | 58,431,806 | 71,465,854 | 18.2 | |
| 60,000 | 70,000 | 9,541 | 42,982,398 | 13,008,673 | 68,507,813 | 81,516,486 | 16.0 | |
| 70,000 | 80,000 | 7,947 | 42,617,895 | 12,764,454 | 74,628,321 | 87,392,775 | 14.6 | |
| 80,000 | 90,000 | 6,330 | 41,510,052 | 12,996,014 | 74,152,710 | 87,148,724 | 14.9 | |
| 90,000 | 100,000 | 4,897 | 38,251,287 | 12,508,260 | 70,817,423 | 83,325,683 | 15.0 | |
| Over | 100,000 | 24,586 | 630,019,771 | 243,535,147 | 1,362,193,618 | 1,605,728,766 | 15.2 | |
| Totals | 102,896 | 936,662,500 | 330,986,892 | 1,789,415,659 | 2,120,402,551 | 15.6 | ||
| * "Gross tax" means the tax that would be due before relief is allowed for retirement annuity deductions | ||||||||
| Average Industrial Wage is €32,730 | ||||||||
| The figures do not include contributions made by employees through employers' payroll systems and in respectof which | ||||||||
| tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to | ||||||||
| make it possible to provide disaggregated figures. |
| INCOME TAX 2007 | ||||||||
| Personal Retirement Savings Accounts - by range of Gross Income. | ||||||||
| Range of gross | ||||||||
| income | Totals | |||||||
| From | To | Number | Amount | Reduction | Tax due | Gross Tax * | Reduction in tax | |
| € | € | of cases | of deduction | in tax | for payment | as % of Gross Tax | ||
| € | € | € | € | % | ||||
| - | 10,000 | 150 | 230,848 | 1,818 | 165 | 1,983 | 91.7 | |
| 10,000 | 20,000 | 790 | 1,519,146 | 224,686 | 152,616 | 377,302 | 59.6 | |
| 20,000 | 30,000 | 2,240 | 4,615,210 | 879,802 | 2,171,028 | 3,050,830 | 28.8 | |
| 30,000 | 32,730 | 724 | 1,688,295 | 329,412 | 1,262,871 | 1,592,283 | 20.7 | |
| 32,730 | 40,000 | 1,934 | 5,089,074 | 1,326,500 | 4,880,218 | 6,206,718 | 21.4 | |
| 40,000 | 50,000 | 2,193 | 7,066,857 | 2,258,955 | 9,097,529 | 11,356,484 | 19.9 | |
| 50,000 | 60,000 | 1,798 | 6,614,692 | 2,198,980 | 10,841,069 | 13,040,049 | 16.9 | |
| 60,000 | 70,000 | 1,503 | 6,798,996 | 2,111,219 | 11,647,236 | 13,758,455 | 15.3 | |
| 70,000 | 80,000 | 1,170 | 6,200,782 | 2,219,156 | 11,752,273 | 13,971,429 | 15.9 | |
| 80,000 | 90,000 | 912 | 5,625,655 | 2,193,256 | 11,821,124 | 14,014,380 | 15.7 | |
| 90,000 | 100,000 | 615 | 4,705,744 | 1,900,412 | 9,609,226 | 11,509,639 | 16.5 | |
| Over | 100,000 | 2,621 | 42,381,897 | 17,300,020 | 121,388,445 | 138,688,466 | 12.5 | |
| Totals | 16,650 | 92,537,196 | 32,944,217 | 194,623,801 | 227,568,018 | 14.5 | ||
| * "Gross tax" means the tax that would be due before relief is allowed for PRSA deductions | ||||||||
| Average Industrial Wage is €32,730. | ||||||||
| The figures do not include contributions made by employees through employers' payroll systems and inrespect of which | ||||||||
| tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to | ||||||||
| make it possible to provide disaggregated figures. |
Mary Upton (Dublin South Central, Labour)
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Question 165: To ask the Minister for Finance his views on extending the section 481 tax reliefs to the gaming industry to encourage the development of Ireland as a global centre of excellence for gaming; and if he will make a statement on the matter. [41419/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 481 of the Taxes Consolidation Act 1997 provides tax relief for investments in qualifying films. A qualifying film is a film for which the Revenue Commissioners have issued a Certificate under Section 481. Further provisions are included in Regulations made by the Revenue Commissioners, with the consent of the Ministers for Finance and Arts, Sport and Tourism. I do not plan to extend this provision to include other sectors.
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