asked the Minister for Finance the average amount of income tax paid by (a) PAYE workers (b) farmers and (c) the self-employed in each of the past five years.
Written Answers. - Income Tax.
56.
Following is the information requested:
|
Year |
Average tax payment made by |
||
|
(a) |
(b) |
(c) |
|
|
PAYE |
Farmers |
Other self-employed |
|
|
£ |
£ |
£ |
|
|
1984 |
2,289 |
703 |
1,792 |
|
1985 |
2,457 |
672 |
1,958 |
|
1986 |
2,690 |
629 |
2,097 |
|
1987 |
2,877* |
585* |
2,885* |
|
1988 |
(i)3,043* |
1,237* |
4,826* |
|
(ii)2,942* |
664* |
3,225* |
* Provisional — subject to revision.
(i) Includes the effects of the tax amnesty in 1988.
(ii) Excludes the effects of the tax amnesty.
Column (a)
(i) Income tax collected through the PAYE mechanism covers more than income tax on ordinary wages and salaries. It includes tax paid by directors of close companies who are akin to the self-employed as well as tax on "other income" of employees such as rent and other investment income.
(ii) The average tax payment for each year is obtained by dividing the net receipt of PAYE tax in each calendar year by the number of taxpaying units effectively liable to tax in the income tax year in which the calendar year ends e.g. the 1984 net receipt is divided by the number liable to tax in 1984-85.
Column (b)
(i) In calculating the figures in this column the estimated net receipt from farm taxation in each calendar year has been divided by the number of farming tax units assessed to tax on their farming profits in the year of assessment in which the calendar year ends, e.g. the 1984 receipt is divided by the number assessed for the year 1984-85, irrespective of whether the assessed tax was actually payable.
(ii) The reduction in the average tax payments made by farmers over the years in question is mainly due to the introduction of additional numbers of farmers to tax records since 1983-84 consequent on the abolition of the rateable valuation threshold. It follows that the new cases, in general, had much smaller holdings and consequently had, on average, lower taxable incomes.
(iii) Full-time farmers and farmers who, or whose spouses, carry on another trade or profession have been included in the calculations.
(iv) Income tax on farming profits is collected with Schedule D tax generally and because of this it cannot be separately distinguished. Accordingly, the figures shown for tax payments by farmers are estimated.
Column (c)
(i) The figures contained in this column are obtained by dividing the estimated net receipt of income tax from other self-employed tax units in each calendar year by the estimated number of those units assessed to tax in the year of assessment in which the calendar year ends as explained in note (i) for column (b).
(ii) Some of the increases in the average tax payments made by other self-employed in 1987 and 1988 are due to the introduction of the withholding tax on professional fees in 1987 and the combined effects of the tax amnesty and the introduction of the self-assessment system in 1988.
Columns (a), (b) and (c)
(i) A married couple who has elected or has been deemed to have elected to have the income of both spouses assessed on the husband is counted as one tax unit.
(ii) Some figures in the columns differ from those given previously. This is due to more accurate information becoming available in the meantime.
(iii) Receipts of deposit interest retention tax and tax deducted by building societies under the former composite rate arrangement are not included in the calculations. Basic data are not available which would enable the amounts of these taxes referrable to interest paid or credited to particular classes of taxpayers to be ascertained.
57.
asked the Minister for Finance when an up-dated tax free allowance will be issued to a person (details supplied) in County Kildare; and if he will make a statement on the matter.
I have been advised by the Revenue Commissioners that an amended certificate of tax-free allowances was issued to the taxpayer on 25 October 1989.