asked the Minister for Finance the percentage of gross national product represented by income tax in each of the past ten years.
Written Answers. - Income Tax.
385.
Following is the information requested:
|
Year |
Net Receipt of Income Tax (includ- ing Sur-Tax) as a percentage of Gross National Product. |
|
% |
|
|
1968 |
5.79 |
|
1969 |
6.00 |
|
1970 |
6.43 |
|
1971 |
7.45 |
|
1972 |
7.57 |
|
1973 |
7.48 |
|
1974 |
8.52 |
|
1975 |
9.01 |
|
1976 |
10.21 |
|
1977 |
9.68* |
* The 1977 figure is based on an estimate of Gross National Product.
386.
asked the Minister for Finance when interest came to be allowed as a deduction against income for income tax purposes; the annual income tax forgone as a result; the reason for the provision; and the percentage and number of all taxpayers availing of it.
I assume that the Deputy's question refers to interest incurred for personal, non-business, purposes.
The answer to the four queries are as follows: (i) in 1853; (ii) some £16 million was forgone in the tax year 1976-77, which is the latest year for which figures are available; (iii) implicit in the provision—which, following a change in 1974, is now limited to £2,000 interest a year—is the view that certain bank interest can reasonably be included in the very limited category of outgoings allowable as a personal deduction for income tax purposes; (iv) it is estimated that some 146,000 taxpayers, being about 20 per cent of all taxpayers, were allowed a deduction for personal interest in the tax year 1976-77.
387.
asked the Minister for Finance when life insurance contributions came to be allowed for income tax purposes; the annual income tax forgone as a result; the reason for the provision; and the percentage of all taxpayers availing of it.
Income tax relief for life insurance contributions has been available in this country since 1853. The tax relief is given in order to encourage long-term savings by taxpayers and to encourage taxpayers to make a long-term commitment for the financial protection of their families in the event of unexpected death.
It is estimated that some 320,000 taxpayers, being about 43 per cent of all taxpayers, were given the relief in the tax year 1976-77—the latest year for which relevant information is available. The cost of the giving of the relief in that year was about £6 million.
388.
asked the Minister for Finance the total amount of income tax received from (a) PAYE contributions; and (b) farmers, in each of the past five years.
Following is the information sought:
|
Year |
Net receipt of PAYE |
Estimated receipt of income tax payable in respect of farming profits |
|
£m |
£m |
|
|
1973/74 |
144.0 |
— |
|
1974 (nine months to 31 December 1974) |
130.3 |
— |
|
1975 |
236.7 |
1.1 |
|
1976 |
359.4 |
3.0 |
|
1977 |
445.1 |
7.0 |
Following is the corresponding information for income tax years.
|
Year |
Net receipt of PAYE |
Estimated receipt of income tax payable in respect of farming profits |
|
£m |
£m |
|
|
1973/74 |
144.0 |
— |
|
1974/75 |
179.5 |
0.4 |
|
1975/76 |
263.1 |
2.0 |
|
1976/77 |
396.1 |
5.0 |
|
1977/78 |
460.0 |
11.0 |
Notes
(1) Income tax on farming profits is collected with Schedule D tax generally and the figures shown are therefore estimated.
(2) Chapter II of the Finance Act, 1974, provided for the taxation of farming profits as profits from carrying on a trade. For 1974/75 the dates of payment of tax in respect of profits or gains from carrying on a trade were 1 January 1975, and 1 July 1975. Accordingly, there was no receipt of income tax from farming profits in the calendar year 1974.