Stephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if he will calculate the return to the Exchequer of a 50% flat rate of tax on gambling profits, including lotteries and sweepstakes; and if he will make a statement on the matter. [46112/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Revenue Commissioners that the relevant information available on the amount of gross income earned from gambling and betting activities is based on personal income tax returns filed by non-PAYE taxpayers and information on profits derived from corporation tax returns for the year 2010, the latest tax year for which the necessary detailed information is available. The estimated full year yield from applying a 50% flat rate of tax to the gross income from all sources returned by self-employed individuals engaged in these activities would be of the order of €14 million. If the 50% tax is intended to replace the existing liability to income tax the net yield would be approximately €10 million.

The corresponding full year yield from applying a 50% flat rate of tax to the trading income returned by companies engaged in these activities is estimated at €54 million. If the 50% tax is intended to replace the existing liability to corporation tax the net yield would be approximately €44 million. Figures are rounded to the nearest million. It is assumed that none of the tax credits, reliefs or deductions that are normally allowable under the rules of income tax and corporation tax would be allowed in applying the flat rate of tax.

The sector identifier used on the tax records is based on the 4 digit “NACE code (Rev. 1)” which is an internationally recognised economic activity code system. The NACE codes are not essential for the assessment and collection of taxes and duties and the correct allocation and maintenance of these codes is subject to the limit of available resources. NACE code classifications on tax records are compiled by reference to the primary area of economic activity reported by individual and corporate taxpayers on their own behalf and the taxes collected are allocated to those codes without reference to the precise economic activity which generated them.

While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analyses there will undoubtedly be some inaccuracies at individual level. This should be borne in mind when considering the information provided. The sectors identified for this reply represent the closest equivalents in the NACE code system to the sectors mentioned in the question.