John O'Donoghue (Kerry South, Fianna Fail)
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Question 185: To ask the Minister for Finance the number of taxpayers earning in excess of €100,000 per annum; the average of those in excess of that amount; and if he will make a statement on the matter. [38472/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the number of income earners earning in excess of €100,000, estimated by reference to 2011 incomes, is estimated at 111,500. This represents approximately 5% of all income earners. The total gross income of income earners earning in excess of €100,000 is estimated at €20 billion. Some 63% of this group earn below €150,000 per annum. These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2008 adjusted as necessary for income and employment trends for the year 2011. 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.

John O'Donoghue (Kerry South, Fianna Fail)
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Question 186: To ask the Minister for Finance the amount the tax rate for those earning over €100,000 would have to be increased by for the Exchequer to save at least €3 billion without cutting social welfare, reducing child benefit, or introducing a property tax; and if he will make a statement on the matter. [38474/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2011 incomes, of a 1% point increase in the top rate of income tax for those with income over €100,000 would be of the order of €69 million. Consequently, the top rate of income tax would need to increase to 84% for tax units with income in excess of €100,000 to yield in the region of €3 billion in a full year. This estimate is based on confining the increased tax rate to the segment of income that is in excess of €100,000.

These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2008 adjusted as necessary for income and employment trends for the year 2011. 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 187: To ask the Minister for Finance the estimated cost of the concession provided by section 76 of the Finance Act of 1982 which provides for VAT relief in respect of the purchase of certain services; the reason this relief was introduced and if those reasons continue to justify the provisions of the section [38524/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that section 76 of the Finance Act 1982 inserted a new subsection (4A) in section 5 of the Value-Added Tax Act 1972. The measure dealt with the VAT treatment of the supply of services by barristers. When a barrister supplies a service he or she is not legally entitled to receive a fee in respect of that supply, even though appropriate steps may be taken at the time to secure payment. Accordingly, for VAT purposes, no part of the fee charged to the client may be regarded as consideration, which the barrister "becomes entitled to receive" in accordance with section 10(1) of the Value-Added Tax Act 1972, and no liability to tax arises by virtue only of the supply of the service.

Thus, section 5(4A) of the Value-Added Tax Act 1972 provides that a barrister's service is deemed to take place for VAT purposes when the consideration for the service is paid to him or her. Accordingly, a barrister will have no liability to VAT until he or she has both supplied a service and has been paid in respect of that supply. Also, the obligation to issue an invoice for the supply under section 17(1) of that Act does not arise until those two conditions have been fulfilled. In effect, the barrister operates VAT on a cash receipts basis. There is no cost, as such, to this measure, as the barrister must account for VAT when he or she has been paid in respect of a supply.

Jack Wall (Kildare South, Labour)
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Question 188: To ask the Minister for Finance if a person (details supplied) in County Kildare can apply for a tax free allowance; and if he will make a statement on the matter. [38551/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised by the Revenue Commissioners that a tax credit certificate will issue to the person concerned shortly.