Robert Dowds (Dublin Mid West, Labour)
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Question 70: To ask the Minister for Finance his views on the practice of certain newspapers of failing to pass on the entirety of the recent cut in VAT to their customers; and if he will make a statement on the matter. [20545/11]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain services and goods, for the period 1 July 2011 to end 2013. This included the supply of printed matter, including newspapers, magazines, brochures, leaflets, programmes, maps, catalogues and printed music. Businesses must account for VAT at the 9% rate on these specified goods and services provided by them on or after 1 July 2011.

Where the goods and services are supplied to another VAT-registered business a VAT invoice must be issued, charging VAT at the new rate. However, where the supplies are to unregistered customers there is no obligation to show the VAT separately. Businesses dealing with unregistered customers, as would be the case with the sale of newspapers, are not legally obliged to reduce their (VAT-inclusive) pricing to reflect the post-1 July 2011 lower rate, but would be expected to do so.

The VAT reduction will be kept under review and evaluated before end 2012 in order to determine its effectiveness in aiding the industry. If it is shown that the VAT reduction has little or no effect in aiding industry then the measure is open to being reformed or abolished. In addition, checks on the correct operation of VAT, including the rates of VAT applied are integral parts of Revenue's audit and compliance programmes.

Robert Dowds (Dublin Mid West, Labour)
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Question 71: To ask the Minister for Finance the number of tax exiles Ireland has; the measures he may implement in order to bring them into the tax net; and if he will make a statement on the matter. [20546/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that there is nothing in Irish tax law that makes reference to the term "tax exile" status. I am assuming in referring to "tax exiles" the Deputy is thinking of Irish citizens or Irish domiciled individuals claiming to be non-resident for tax purposes and who are living abroad primarily for tax reasons. For the 2009 tax year, the latest year for which statistics are available, 8,493 non-resident individuals filed Irish tax returns in respect of their Irish source income or income derived from working here. However, many of these non-residents are foreign nationals or have a foreign domicile; and many of the non-resident Irish citizens or Irish domiciled individuals included in this figure may have become non-resident for reasons unrelated to taxation, but have retained Irish investments such as rental property. Such individuals could not be categorised as "tax exiles" under any reasonable definition of that term.

The taxation of individuals in the State is broadly in line with that prevailing in most other OECD jurisdictions, that is to say —

(a) Individuals who are resident in the State for tax purposes (based on the number of days of presence in the State) are taxable here on their worldwide income; and

(b) Individuals who are not resident here for tax purposes pay tax here only on income arising in the State and on income derived from working here.

In addition, in general non-resident individuals are also liable to Irish Capital Gains Tax on disposals of land, buildings in the State, or shares deriving their value from these assets and certain or other assets such as minerals in the State or other assets related to exploitation of such assets. They are not liable to Irish Capital Gains Tax on assets outside of this category, for example, share or equities in companies not deriving their value from land, buildings in the State, etc. There are variations on this position if the non-resident individual is ordinarily resident and/or domiciled in Ireland.

The Domicile Levy was introduced in Finance Act 2010 and is charged on an individual:

· who in any year is Irish domiciled and an Irish citizen,

· whose worldwide income in the year exceeds €1m,

· whose Irish located property in the year is greater than €5m, and

· whose liability to Irish income tax for the year is less than €200,000.

The levy will apply to both resident and non-resident individuals who meet the above criteria. The levy will be charged for 2010 and subsequent years, but the payment for each year can be made at any time up to 31 October in the year following the valuation date, which is 31 December of each year. The first valuation date was 31 December 2010 and the tax return and payment of the levy for 2010 is not due until 31 October 2011.

As with other areas of taxation, these rules are constantly kept under review. The level and timeframe of any taxation changes in this area will be determined in the context of Budgets over the lifetime of the Government.

Robert Dowds (Dublin Mid West, Labour)
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Question 72: To ask the Minister for Finance if he will estimate the amount of money the country is losing because of tax exiles; and if he will make a statement on the matter. [20547/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that there is nothing in Irish tax law that makes reference to the term "tax exile" status. I am assuming in referring to "tax exiles" the Deputy is thinking of Irish citizens or Irish domiciled individuals claiming to be non-resident for tax purposes and who are living abroad primarily for tax reasons. Individuals who are non-resident in Ireland for tax purposes are obliged to file Irish tax returns only in respect of:

* income arising in Ireland (e.g., income from directorships, a trade or profession, rented properties, etc.);

* gains from the disposal of land, buildings or shares which derive their value from these assets, and certain other assets such as minerals in the State or other assets relating to the exploitation of such assets; and

* the Domicile Levy, if it applies to them.

There is no statutory obligation on these individuals to return details of income or gains arising anywhere else in the world. Therefore, it is not possible to establish the amount of these incomes or gains, or any associated tax.