Michael McGrath (Cork South Central, Fianna Fail)
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Question 52: To ask the Minister for Finance the proportion of income earners exempt from income tax in 2011. [35303/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated number of income earners who are exempt from income tax is of the order of 820,000 which represents 38% of the total number of income earners based on projected 2011 incomes. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009, adjusted as necessary to take account of the most recent data available for income and employment trends for the year in question. 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.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 53: To ask the Minister for Finance the amount of money which would be raised by increasing the rate of deposit interest retention tax from 27% to 30%. [35307/11]

Michael Noonan (Limerick City, Fine Gael)
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It is estimated that the yield to the Exchequer from increasing the Deposit Interest Retention Tax (DIRT) rate from 27% to 30% would be around €50 million in a full year. This projection assumes no significant behavioural change by depositors or a change in interest rates applied by financial institutions to savings.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 54: To ask the Minister for Finance the revenue that would be raised in a full year by extending the universal social charge to all income including interest, dividends and rental income. [35311/11]

Michael Noonan (Limerick City, Fine Gael)
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The principle of the Universal Social Charge (USC) is that it applies on a wide base with no special exemptions. The USC already applies to income from dividends and rental income and excludes Social Welfare payments. Therefore, the largest type of income not included would be income from interest. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer that would be raised by extending the Universal Social Charge to income from DIRT-based interest would be of the order of €130 million.

It should be noted that income from interest is currently subject to Deposit Interest Retention Tax of 27%.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 55: To ask the Minister for Finance the revenue that would be raised by eliminating the exemption from PRSI of employee pension contributions made by their employers. [35312/11]

Michael Noonan (Limerick City, Fine Gael)
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The exemption from employee PRSI of employee contributions to occupational pension schemes and other pension arrangements was removed in Budget 2011 with effect from 1 January 2011 and legislated for in the Social Welfare Act 2010. Relief from employer PRSI for employee contributions to occupational pension schemes and other pension arrangements was reduced by 50% in Budget 2011, also from 1 January 2011, and was provided for in the Social Welfare Act 2010. On the basis that the Deputy is referring to the removal of the remaining 50% employer PRSI relief on employee pension contributions, the estimated savings to the Exchequer would be about €90 million in a full year.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 56: To ask the Minister for Finance the revenue that would be raised if rent relief was phased out over the next three years rather than the seven years currently proposed. [35313/11]

Michael Noonan (Limerick City, Fine Gael)
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Section 473 of the Taxes Consolidation Act, 1997 provides tax relief at the standard rate to individuals who pay for private rented accommodation that is used as their sole or main residence. The level of rent qualifying for rent relief depends on an individual's marital status and age. In Budget 2011, it was announced that rent relief was being withdrawn on a phased basis. No new claimants were allowed from 7 December 2010 but existing claimants will continue to receive the relief, on a reducing basis, with a complete cessation of the relief from 2018. The following table shows the levels of withdrawals as provided for in Finance Act 2011 and the associated yields:

To phase out the relief over the next 3 years would result in the following yields based on the 2008 costs of the scheme. A standard level of reduction of 25% per annum on the remaining maximum levels of relief is assumed.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 57: To ask the Minister for Finance the revenue that would be raised from reducing the ceiling on the tax exempt earning of artists from €40,000 to €35,000. [35314/11]

Michael Noonan (Limerick City, Fine Gael)
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It is assumed that the imposition of a cap of €35,000 as mentioned in the question would have the effect of withdrawing the tax exemption from all qualifying income in excess of €35,000. The full year yield to the Exchequer, estimated by reference to the tax year 2009, the latest year for which the necessary detailed information is available, is approximately €0.6 million. However, this figure does not take account of the application of the high earner's restriction to the exemption of certain earnings of writers, composers and artists and thus the actual yield could be significantly lower. The restriction was originally provided for in Finance Act 2006 and was significantly tightened in Finance Act 2010. Individuals are now subject to the restriction where they have adjusted income of €125,000 and claim specified tax reliefs of €80,000 or more. Those subject to the full restriction will pay an effective income tax rate of 30% in addition to PRSI and levies.

In addition, it must be stressed that this estimate assumes no significant behavioural change on the part of the affected taxpayers. Moreover, the application of income tax to this income source could also lead to additional claims being made for expenses and allowances by persons currently exempt.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 58: To ask the Minister for Finance the revenue that would be raised from reducing the annual earnings limit along with age related percentage limits for maximum tax relievable contributions for pension purposes from €115,000 to €100,000 and €80,000 respectively. [35315/11]

Michael Noonan (Limerick City, Fine Gael)
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The current annual earnings cap of €115,000 acts, in conjunction with age-related percentage limits of annual earnings, to put a ceiling on the annual amount of tax relief an individual taxpayer can obtain on employee or personal pension contributions. I am informed by the Revenue Commissioners that the full year yield to the Exchequer arising from reducing the earnings cap to €100,000 and €80,000 is currently estimated to be of the order of €30 million and €95 million respectively. These figures are provisional and subject to revision.

A breakdown of the figures by reference to income levels is available only in respect of the tax relief for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) and to the extent that these contributions are included in the personal tax returns of tax payers. With regard to occupational pension schemes (schemes set up by employers), the figures in respect of employee contributions are available only in aggregate form. Information on such contributions is not captured in such a way as to make it possible to associate contributions with individual income levels. For that reason the estimated yield to the Exchequer in respect of these contributions is extremely tentative. The estimated yield is based on assuming that tax relief which would be affected by the changes mentioned in the question is currently allowed at the top income tax rate of 41% and at the maximum age-related percentage limit of earnings. The figure provided could therefore be regarded as the maximum Exchequer yield in respect of those taxpayers.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 59: To ask the Minister for Finance if he will provide details of the rules currently in place to ensure that all income earners pay effective tax at a certain minimum rate; and if he will make a statement on the matter. [35321/11]

Michael Noonan (Limerick City, Fine Gael)
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The high earner's restriction for individuals on high incomes, who make significant use of certain specified tax reliefs, was announced in Budget 2006 and came into effect from 1 January 2007. The restriction works by limiting the total amount of specified reliefs that a high income individual can use to reduce his or her tax liability in any one tax year. Prior to the introduction of this restriction, such individuals, by means of the cumulative use of various tax incentive reliefs, had been able to reduce their tax liability to very low levels or to zero.

The restriction, as introduced, was designed to ensure that individuals with adjusted income exceeding €500,000 paid an effective rate of tax of approximately 20% on that income. That objective was achieved in 2007, 2008 and 2009. Where adjusted income was between €250,000 and €500,000, a tapering system ensured that there was a graduated introduction of the restriction, with the effective rate of tax increasing towards 20% as adjusted income increased towards €500,000.

In Budget 2010, changes to the restriction from the 2010 tax year were announced. Those individuals with adjusted income exceeding €400,000 will, as a result, now pay an effective income tax rate of approximately 30% on that income, while individuals will now become subject to the restriction and the associated taper, where adjusted income is €125,000 or greater and where they claim €80,000 or more in specified reliefs.

A comprehensive guidance document on the application of the high earner's restriction is available on the Revenue website at www.revenue.ie.