Dáil Éireann debate -
Tuesday, 25 Nov 2003

Vol. 575 No. 3

Written Answers. - Tax Code.

Joan Burton

Question:

147 Ms Burton asked the Minister for Finance the number and percentage of taxpayers exempted from income tax, paying at the lower rate of income tax and paying at the higher rate of income tax each year from 1999 to date. [28156/03]

Minister for Finance (Mr. McCreevy)

It is assumed that what the Deputy requires is the number in each category as a percentage of all income earners on the tax record.

I am advised by the Revenue Commissioners that the information requested by the Deputy is as provided in the following table.

Distribution of income earners by tax band 1999-2000 to 2003

Year	Exempt	No.	%	Standard Rate#	No.	%	Higher Rate	No.	%
1999-2000	458,745	27.52	665,475	39.92	542,980	32.57
2000-01	502,410	28.47	722,160	40.92	540,430	30.62
2001* (**)	602,555	33.01	706,795	38.73	515,750	28.26
2002*	647,260	34.93	688,860	37.18	516,780	27.89
2003*	653,720	34.98	645,210	34.52	570,070	30.50

#Includes taxpayers benefiting from marginal relief.

*Provisional and subject to revision.

**Short tax "year" from 6 April 2001 to 31 December 2001.

A married couple that has elected or has been deemed to have elected for joint assessment is counted as one tax unit. The numbers of income earners above have been rounded to the nearest five as appropriate.

Joan Burton

Question:

148 Ms Burton asked the Minister for Finance the number and percentage of taxpayer couples who do not avail of individualisation and who have availed of individualisation from 1999 to date. [28157/03]

Minister for Finance (Mr. McCreevy)

I assume that the Deputy is referring to the Government's policy of widening the standard rate band and placing it on a per person basis and how many income earners have benefited from it. This policy was put in place to reduce the number of income earners paying at the top rate of tax. Before the previous Government came into office in 1997, a single person with an income of more than €17,270 or £13,600 became liable at the top tax rate. This meant that someone on roughly 90% of the average industrial wage in 1997 – then about €19,370 or £15,255 – was liable to tax at the higher rate. This is no longer the position because the standard band has been widened considerably. It now stands at €28,000 for a single person.

As resources have become available to make progress in doing so, those who in each year would have paid tax at the higher rate but for the increase in the value of the band in that year have benefited from and availed of the widening process. In addition, those who have remained paying at the top rate have also benefited because the band widening has reduced the extent of their liability to tax at the higher rate. Beneficiaries have included single persons, married one-earner couples and married two-earner couples. No income earner is worse off as a result of the band widening process.

I am informed by the Revenue Commissioners that the numbers of taxpayers liable to tax at both the standard and higher rates of tax who are estimated to benefit in 2003 as a result of band widening implemented since the 1999-2000 income tax year are estimated as follows. The figures as a percentage of the income earners on the tax record in each category are shown on the second row.

Single/widowed	Married one income	Married two incomes
569,500	127,000	212,300
46.45%	36.38%	72.24%

Essentially, these are people who, if the 1999-2000 income tax regime were still in place and the band widening since then had not taken place, would have a greater income tax liability today than is actually the case. Included in the figures are the following numbers of standard rate taxpayers who would be liable to tax at the higher rate in 2003 but for these increases in the standard rate band:

Single/widowed	Married one income	Married two incomes
272,500	6,100	60,100
22.23%	1.75%	20.45%

It should be noted that these numbers are provisional and are subject to revision, and that a married couple that has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Emmet Stagg

Question:

149 Mr. Stagg asked the Minister for Finance the reason for the delay in issuing a tax rebate to a person (details supplied); and if he will make a statement on the matter. [28158/03]

Minister for Finance (Mr. McCreevy)

I understand from the Revenue Commissioners that a refund cheque of the full amount of PAYE income tax paid for the year 2002 was issued to the taxpayer on 21 November 2003. The delay in processing the refund arose as a result of a number of outstanding queries concerning an earlier period of self-employment and because Revenue were unaware of the taxpayer's change of address.