Richard Bruton
Question:94 Mr. R. Bruton asked the Minister for Finance the cost of converting tax credits which are not used up offsetting a tax liability into refundable cash payments. [3049/02]
Written Answers. - Tax Rebates.
The cost of refunding the unabsorbed portion of income tax credits would depend upon the scope of the measure, for example, whether it would apply to all or some tax credits, and whether it would apply to income earners on tax records only or to the population as a whole.
I am informed by the Revenue Commissioners that the cost to the Exchequer in a full year of refunding the unabsorbed portion of the main tax credits to individuals on the income tax record would be of the order of the following:
|
Personal credit |
€837 million (£659 million) |
|
PAYE credit |
€434 million (£342 million) |
|
Homecarers credit |
€63 million (£50 million). |
The Exchequer cost would be somewhat greater if the measure was extended to all individuals who are not on tax records (e.g. those who have never taken up paid employment). Revenue estimate very tentatively that the cost of this extension would be of the order of €50 million (£39 million) per annum.