Michael McGrath (Cork South Central, Fianna Fail)
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Question 63: To ask the Minister for Finance the amount of money which would be raised in a full year by increasing the top rate of income tax by 1% for persons with income in excess of €100,000 and couples with income in excess of €200,000; the amount of money which would be raised in a full year by increasing the top rate of income tax by 1% for persons with income in excess of €125,000 and couples with income in excess of €250,000; the amount of money which would be raised in a full year by increasing the top rate of income tax by 1% for persons with income in excess of €150,000 and couples with income in excess of €300,000. [33909/11]

Michael Noonan (Limerick City, Fine Gael)
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It is assumed that the threshold for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the introduction of each of the proposed new rates and bands would be of the order of €55 million, €45 million and €35 million respectively. However, given the current band structures, major issues would need to be resolved as to how, in practice, such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners.

These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2012. They are, therefore, provisional and likely to be revised.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 64: To ask the Minister for Finance the amount of money which would be raised in a full year by a combination of increasing the capital acquisitions tax rate to 30% and reducing the exemption thresholds by 10%. [33910/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 5%, based on the expected outturn in 2011, could be in the region of €55 million, assuming no change in the existing thresholds. The additional full year yield from existing taxpayers from reducing the existing thresholds by 10% and applying the proposed rate of 30% to the additional amounts thus brought into charge is estimated at €17 million. Revenue do not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net. These estimates are based on transactions recorded in 2010, the latest year for which the necessary detailed information is available. It should be noted that these estimates are based upon an assumption that there would be no behavioural impact of these changes, which could lead to a less than expected impact on Exchequer yield. In addition, the realization of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 65: To ask the Minister for Finance the amount of money which would be raised in a full year by raising the deemed annual distribution of assets in approved retirement funds from 5% to 10% per annum. [33911/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that some €10.3m in tax was paid for the year 2010 by managers of approved retirement funds (ARFs) in respect of deemed or imputed distributions of assets in ARFs. This amount would have been generally based on a deemed distribution rate of 5%. On this basis, the full year yield from an increase in the deemed distribution rate to 10% could be of the order of €10m, assuming no change in asset values or behavioural changes on the part of ARF owners. It is important to note that the deemed or imputed distribution measure is designed to encourage draw downs from ARFs so that they are used, as intended, to fund a stream of income in retirement in the same way as a retirement annuity, for which ARFs are supposed to operate as a more flexible alternative.

The measure, in itself, does not give rise to significant tax revenues as it does not apply to actual draw-downs from ARFs, which are taxed in the normal way. The level of the imputed distribution was increased from 3% to 5% in Budget and Finance Act 2011 and was estimated to yield an additional €5 million in a full year. Increasing the percentage notional distribution from ARFs generally, and for ARFs of modest value in particular, to a level 10% of ARF assets would increase the risk that such ARF owners' funds could be depleted during retirement and before death.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 66: To ask the Minister for Finance the amount of money which would be saved in a full year by reducing income tax relief on pension contributions to the standard income tax rate. [33912/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 67: To ask the Minister for Finance the amount of money which would be saved in a full year by reducing income tax relief on pension contributions, for those who pay income tax at the marginal rate, to 30% as opposed to the current 41%. [33913/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 66 and 67 together.

I assume the Deputy is referring to individual pension contributions, the tax relief on which is allowed at the taxpayer's marginal tax rate — the standard or higher rate of income tax as appropriate in each case. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — retirement annuity contracts and personal retirement savings accounts — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers.

There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, it is estimated that the full-year yield to the Exchequer from confining tax relief to the standard rate of 20% in respect of individual contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts would be approximately €500 million.

The estimated full-year yield to the Exchequer from confining tax relief to a rate of 30% for individuals who can obtain relief at the 41% rate in respect of individual contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts would be approximately €260 million. It is assumed that tax relief at the flat rate of 30% would not be available to claimants who are currently confined to tax relief at the standard rate of 20%.