Michael McGrath (Cork South Central, Fianna Fail)
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208. To ask the Minister for Finance his views on the fact that his Department is not currently in a position to implement a proposal to withdraw tax credits from persons earning in excess of €70,000; if the Revenue Commissioners have undertaken work in this regard; and if he will make a statement on the matter. [22629/16]

Michael Noonan (Limerick City, Fine Gael)
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The withdrawal of tax credits when a person's current year earnings reach a certain threshold would require that Revenue know the person's income details on a real time basis. However, the specific details of each individual employee's income and deductions are only currently provided by employers on their annual end-year return, Form P35, which is due to be filed by mid-February following the end of the year. The up-to-date position for each taxpayer can be further complicated where an individual may have more than one employment or regularly moves from one employment to another.

I am advised by Revenue that they are actively examining the possibility of gathering employee income and payroll deduction details on a more realtime basis, as a means towards simplification of the overall tax system for both employers and employees and providing the possibility to implement 'in year' tax changes. Such a change would be significant for Revenue, employers and software providers and could only be implemented following appropriate consultation with all of the key stakeholders, and would be subject to the putting in place of the necessary legislative framework to underpin such a change.

I am advised by Revenue that the necessary research and analysis into the gathering by them of real time payroll data is under way. I look forward to receiving specific proposals in that regard in due course when the current research and analysis work has been completed.