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Dáil Éireann debate -
Wednesday, 31 Jan 2001

Vol. 529 No. 2

Written Answers. - Tax Yield.

Noel Ahern

Question:

106 Mr. N. Ahern asked the Minister for Finance the amount of income tax paid for each of the past five years by PAYE employees, by self-employed persons and by farmers; the combined total paid by persons in these categories; the number of taxpayers in each category; the number who paid tax; and the average amount paid by those in the tax net within each category. [2605/01]

I have been advised by the Revenue Commissioners as follows. Figures of the net receipt of income tax from the PAYE, farming and other self-employed sectors in each of the years 1996 to 2000 inclusive are set out as follows:

Net Receipt of Income Tax for 1996 to 2000 inclusive

1996

1997

1998

1999

2000

£m

£m

£m

£m

£m

PAYE

3,894.4

4,356.5

4,755.1

5,224.9

5,587.4

Farmers

78.0

84.9

78.2

83.1

87.0

Other self-employed

528.0

664.8

767.8

894.3

1,108.1

Total

4,500.4

5,106.2

5,601.1

6,202.3

6,782.5

These figures do not take account of receipts of deposit interest retention tax and dividend withholding tax for which a breakdown between particular classes of taxpayers cannot be ascertained. Also not reflected in these figures are repayments of tax other than tax paid under PAYE or by the self-employed such as, for example, repayments made to foreign residents of tax deducted at source under various arrangements. Payments of withholding tax on professional fees are included in the yield from the other self-employed.
The amounts paid by each sector must be seen in the context of the relative numbers of taxpayers in the PAYE and self-employed, including farming sectors. The available figures for numbers in each category are the estimated numbers of all income earners on income tax records, including those who are exempt from tax, and the corresponding numbers who are estimated to be effectively liable to tax for each income tax year from 1996/97 to 2000/01 inclusive. These are as follows:
Numbers of income earners on tax records

1996

1997

1998*

1999*

2000*

PAYE

1,207,300

1,297,600

1,375,500

1,448,400

1,503,400

Farmers

95,700

95,400

96,000

96,000

96,000

Other self-employed

87,000

100,000

109,600

120,100

124,000

Total

1,390,000

1,493,000

1,581,100

1,664,500

1,723,400

*Figures for these years are provisional and subject to revision.
Numbers effectively liable to tax

1996

1997

1998*

1999*

2000*

PAYE

918,100

977,900

1,038,300

1,030,000

1,018,900

Farmers

49,500

46,900

45,900

44,900

44,700

Other self-employed

76,200

87,800

103,300

115,600

106,600

Total

1,043,800

1,112,600

1,187,500

1,190,500

1,170,200

*Figures for these years are provisional and subject to revision.
A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
Figures of average tax payments in each category for the past five years are estimated as follows:
Average income tax payments 1996 to 2000 (estimated)

1996

1997

1998*

1999*

2000*

£

£

£

£

£

PAYE

(a)

4,242

4,454

4,581

5,073

5,483

(b)

3,226

3,357

3,457

3,607

3,717

Farmers

1,009

1,073

972

1,053

1,092

Other self-employed

3,864

4,623

4,956

5,497

6,176

*Figures for these years are provisional and subject to revision.
Notes on average tax payments
(a), (b)PAYE figures
(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. It also includes the tax paid under PAYE on the income from employment of farmers and other self-employed individuals.
(ii)The average tax payment for each year in column (a) 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, for example, the 1996 net receipt is divided by the number liable to tax in 1996/97. This number excludes income earners on the PAYE tax record who are exempt from tax.
The average tax payment for each year in column (b) is obtained by dividing the net receipt of PAYE tax in each calendar year by the total number of income earners on the PAYE tax record including those who are exempt from tax.
(c)Farming figures
(i)In calculating the figures in this column the estimated net receipt of income tax paid by full-time farmers has been divided by the number of full-time farming tax units assessed to tax for the year of assessment in which the calendar year ends, for example, the 1996 receipt is divided by the number assessed for the year 1996/97. These numbers exclude cases who are not required to file annual tax returns and whose position is reviewed periodically because their incomes are clearly too low to attract a tax liability on an individual basis.
(ii)The figures for averages do not take into account the tax attributable to the farming profits of farmers who, or whose spouses, carry on another trade or profession. Farm tax represents a fraction of their overall tax liability and the emerging average farm tax payments could not be regarded as representative of the normal average tax yield from the farming sector.
(iii)Income tax on farming profits is collected with Schedule D tax generally and because of this it cannot be precisely distinguished. Accordingly, the figures shown for tax payments by farmers are estimated.
(d)Other self-employed figures
(i)The figures contained in this column are obtained by dividing the estimated net receipt of income tax in each calendar year, subject to certain technical adjustments, from tax units whose main source of income is from self-employment, other than full-time farming, 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 (c).
These numbers exclude cases who are not required to file annual tax returns and whose position is reviewed periodically because their incomes are clearly too low to attract a tax liability on an individual basis.
General Notes
(i)A married couple who has elected or has been deemed to have elected for joint assessment 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 dividend witholding tax are not included in the calculations. Basic data are not available which would enable the amounts of these taxes referable to interest paid or credited to particular classes of taxpayers to be ascertained.
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