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

Question 43: To ask the Minister for Finance his views on introducing a wealth tax; the possibility of such a wealth tax being modelled on the French ISF solidarity tax which taxes global assets; and if he will make a statement on the matter. [44898/09]

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

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 taxes was increased to 25% in the last Budget and Finance Act.

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.

I am aware of the French ISF solidarity tax which is an annual tax paid by individuals, the net value of whose wealth exceeds €790,000 in 2009. The tax starts at 0.55% on assets valued between the threshold amount and €1.28 million, rising to 1.8% on assets valued over €16.48 million. The tax base includes all property, rights and values that constitute the wealth of a taxpayer, including his/her principal private residence.

I have not considered introducing a Wealth Tax modelled on this particular example. However, all taxes and potential taxation measures are constantly reviewed in the context of the Budget and Finance Bill.