Written answers
Tuesday, 3 December 2013
Department of Finance
Tax Yield
Clare Daly (Dublin North, Socialist Party)
Link to this: Individually | In context | Oireachtas source
60. To ask the Minister for Finance if he will verify the accuracy of correspondence (details supplied) relating to income tax yield. [51353/13]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source
I am advised by the Revenue Commissioners that, on the basis of the incomes table supplied, the conclusions referred to by the Deputy are arithmetically correct. The table contains a distribution of incomes and income tax by reference to ranges of income for the income tax year 2013 which was provided in my reply of 30 April 2013 to Parliamentary Question Number 151 (Reference number 19815/13). The figures were provisional estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim.
The Deputy may be interested to know that the figures in question have since been revised on the basis of actual data for the year 2011 and are set out in the following table.
As regards the question of the average rate of income tax on the highest incomes being lower than the average rate of tax on somewhat lower incomes I should point out that “gross income”, the basis on which these average tax rates are calculated, is not the basis on which the charge to income tax is applied. In arriving at taxable income the figure for gross income must be reduced by various deductions and reductions which are legitimately allowable for income tax such as deductions for capital allowances, interest paid, losses, allowable expenses and retirement annuities.
An examination of the historical data for 2011, the latest available, indicates that the aggregated claims for such deductions by income earners with incomes in excess of one million were almost 4 % of gross income higher than the corresponding proportion that applied to income earners with incomes between €500,000 and one million. This means that the proportion of gross income of income earners with incomes in excess of one million that was legitimately available for taxation was 4% less than was the case in respect of income earners with incomes between €500,000 and one million.
All Income earners for Income Tax Year 2013 (provisional)
| Gross Income Range € | Gross Income € | Numbers | Income Tax € | Average Income € | Average Tax € | Tas as % of Income |
|---|---|---|---|---|---|---|
| 10,000 or less | 1,701,125,991 | 386,113 | 413,033 | 4,406 | 1 | 0.0% |
| 10,001 – 20,000 | 5,991,247,957 | 394,547 | 40,310,708 | 15,185 | 102 | 0.7% |
| 20,001 – 30,000 | 9,894,189,836 | 398,715 | 376,689,221 | 24,815 | 945 | 3.8% |
| 30,001 – 40,000 | 10,526,536,676 | 302,643 | 761,371,741 | 34,782 | 2,516 | 7.2% |
| 40,001 – 50,000 | 9,188,240,949 | 205,698 | 1,014,747,279 | 44,669 | 5,064 | 11.3% |
| 50,001 – 60,000 | 7,439,955,833 | 136,170 | 1,058,209,385 | 54,637 | 7,771 | 14.2% |
| 60,001 – 70,000 | 6,111,257,479 | 94,391 | 968,351,805 | 64,744 | 10,259 | 15.8% |
| 70,001 – 80,000 | 4,885,203,793 | 65,408 | 858,055,522 | 74,688 | 13,119 | 17.6% |
| 80,001 – 90,000 | 3,791,883,977 | 44,761 | 726,494,017 | 84,714 | 16,231 | 19.2% |
| 90,001 – 100,000 | 2,974,203,171 | 31,396 | 611,283,510 | 94,732 | 19,470 | 20.6% |
| 100,001 – 125,000 | 5,083,135,796 | 45,853 | 1,140,444,989 | 110,857 | 24,872 | 22.4% |
| 125,001 – 150,000 | 2,866,266,063 | 21,073 | 701,259,789 | 136,016 | 33,278 | 24.5% |
| 150,001 – 175,000 | 1,871,791,838 | 11,601 | 482,446,104 | 161,347 | 41,587 | 25.8% |
| 175,001 – 200,000 | 1,295,536,585 | 6,944 | 344,645,246 | 186,569 | 49,632 | 26.6% |
| 200,001 – 250,000 | 1,714,547,953 | 7,718 | 469,551,354 | 222,149 | 60,383 | 27.4% |
| 250,001 – 300,000 | 1,155,249,712 | 4,327 | 324,876,900 | 272,657 | 76,676 | 28.1% |
| 300,001 - 350,000 | 815,682,198 | 2,530 | 235,605,616 | 322,404 | 93,125 | 28.9% |
| 350,001 – 400,000 | 591,932,771 | 1,585 | 171,761,138 | 373,459 | 108,369 | 29.0% |
| 400,001 – 450,000 | 436,035,890 | 1,028 | 132,133,368 | 424,159 | 128,534 | 30.3% |
| 450,001 – 500,000 | 352,328,419 | 743 | 107,279,137 | 474,197 | 144,386 | 30.4% |
| 500,001 – 750,000 | 1,157,652,860 | 1,927 | 350,608,421 | 600,754 | 181,945 | 30.3% |
| 750,001 – 1,000,000 | 554,709,996 | 648 | 165,893,488 | 856,034 | 256,008 | 29.3% |
| 1,000,001 – 2,000,000 | 733,261,467 | 549 | 214,029,105 | 1,335,631 | 389,853 | 29.2% |
| Over 2,000,000 | 527,352,863 | 130 | 150,954,072 | 4,056,560 | 1,161,185 | 28.6% |
| Overall Total | 81,659,329,617 | 2,166,411 | 11,434,414,947 | 37,693 | 5,278 | 14.0% |
It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2011.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2011 adjusted as necessary for income and employment trends in the interim. Therefore these are therefore provisional and likely to be revised.
It should also 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.
No comments