Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the estimated return to the Exchequer from introducing a tax on online gambling of 5%. [38296/12]

Michael Noonan (Limerick City, Fine Gael)
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It was announced in Budget 2011 that the necessary arrangements are being made to ensure that bets placed on the internet by domestic punters are subject to the same level of betting duty as applies to high street betting shops. This will serve to broaden the tax base and increase betting duty receipts. The Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State. This means, for example, that a business which engages in online bookmaking and which accepts bets from people in this country will be liable for betting duty on those bets, irrespective of where that business is based. The existing betting duty (1%) will be applied to such bets. The Finance Act also provides for the taxation of Betting Exchanges under the new arrangements; however the calculation of the tax will take account of their particular business model, in other words a 15% tax on the commission charged. In addition, excise duties are being applied to the granting and renewal of remote bookmakers’ and remote betting intermediaries’ licences.

The Betting (Amendment) Bill, which was published in July, will establish the regulatory framework for these licences. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill is enacted.

It is estimated that the full year yield from the taxation of remote betting would be around €20 million. Therefore a straight line calculation of the 5% suggested by the Deputy would suggest a yield of €100 million. However this would not take account of the impact of such a rate on betting activity or any other variables.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the estimated return to the Exchequer from increasing the tax on betting shop profits from 1% to 5%. [38297/12]

Michael Noonan (Limerick City, Fine Gael)
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It is assumed that the Deputy is referring to an increase in the rate of Betting duty, which currently stands at 1% and which is on top of other taxes such as corporation tax and income tax as appropriate. I am informed by the Revenue Commissioners that if the rate was increased from 1% to 5%, the yield would be in the region of €135m in a full year. However, this is a straight line calculation and does not take account of the impact of such a rate on betting activity or any other variables.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he has examined the potential for a wealth tax; and the estimated return to the Exchequer from a 1% wealth tax on individual wealth in excess of €1 million. [38298/12]

Michael Noonan (Limerick City, Fine Gael)
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The Government does not propose at this time to introduce a wealth tax, although all taxes and potential taxation options are constantly reviewed. To estimate the potential revenue from such a wealth tax, we would need to identify the wealth held by individuals. I am informed by the Central Statistics Office that the institutional sector accounts do not give an indication of the number of households or persons classified by the categories of wealth they hold. These statistics are based on aggregate information collected from financial institutions and do not contain the demographic details which would enable such a breakdown of the statistics. So while the CSO’s institutional sector accounts show that households held c. €126 billion on deposit in 2010, this is not broken down by income or wealth categories.

However, I understand that, following discussions between the Department of Public Enterprise and Reform, the CSO and the Central Bank, the CSO has commenced a “Household Finance and Consumption Survey”, which will include, inter alia , a survey of wealth. The first results of this survey will be available in 2014. The data to be collected by the CSO as part of this survey is primarily targeted as general information on the financial situation and behaviour of households. I am informed by the Revenue Commissioners that they have no statistical basis for compiling estimates in relation to a potential annually recurring tax on wealth. It is therefore not possible to provide the information requested by the Deputy on the potential return from a 1% wealth tax on individual wealth in excess of €1 million.