Dáil Éireann debate -
Wednesday, 16 Oct 1991

Vol. 411 No. 1

Written Answers. - Self-Employed Incomes.

Proinsias De Rossa

Question:

188 Proinsias De Rossa asked the Minister for Finance if he will outline, in respect of the latest year for which information is available to the Revenue Commissioners, the number of self-employed persons who declared an income of more than £25,000, broken down on a county by county basis.

Minister for Finance (Mr. A. Reynolds)

The latest relevant actual statistics available are in respect of the income tax year 1988-89. The number of persons on tax records whose main source of income derived from self-employment, that is, a trade, profession, rent or other investment, and who declared gross incomes in excess of £25,000 for that year was some 16,000, or 9 per cent of the total number on record. The estimated corresponding number for the current tax year is 28,000, or some 14 per cent of the total.

A geographical breakdown of the figures is not available. The figures should be read in the light of the following observations:

(a) these figures differ from the income distribution figures given in the 1990 statistical report of the Revenue Commissioners in that: (i) they are based on gross incomes declared whereas the figures in the report relate to a technical definition of "total income" which is total declared income after deduction of such items as capital allowances, interest paid in full, losses, allowable expenses, retirement annuities and superannuation contributions; and (ii) they include proprietary directors of incorporated family businesses totalling around 7,000 who, while formally taxed under the PAYE system, are akin to the self-employed;

(b) because self-employed incomes were then taxed on the basis of previous year's income the figures for 1988-89 appertain to income arising in the year to 5 April 1988; self-employed are now taxed on a current year basis; and

(c) it should be borne in mind that not all the self-employed have large incomes; there would be a large proportion of individuals in this class with low incomes e.g. smaller farmers, small shopkeepers, low investment incomes and so on.