Tuesday, 19 October 2004

Questions (200)

Joan Burton

Question:

332 Ms Burton asked the Minister for Finance the rate of income tax paid by persons earning in excess of €100,000 per annum and upwards in bands of €20,000 per annum; if he will distinguish between single persons and couples, between PAYE taxpayers and those who are self-employed; and if there were such taxpayers paying 0% and taxpayers paying tax at 20% and below. [25375/04]

View answer

Written answers (Question to Minister for Finance)

I am informed by the Revenue Commissioners that the most recent basic data on incomes from which information of the type requested by the Deputy could be derived are in respect of the "short" income tax year of 2001. This was a short transitional tax "year" running from 6 April to 31 December 2001 which preceded the first full calendar tax year, 1 January 2002 to 31 December 2002. The information requested is set out in the following tables. However, because of the Revenue Commissioners' obligation to observe confidentiality with regard to the taxation affairs of individual taxpayers and small groups of taxpayers, the breakdown by income bands requested by the Deputy is not provided in relation to incomes exceeding €1 million due to the small numbers of income earners with incomes in excess of that level.

It should be noted that as PAYE taxpayers were charged tax on their earnings in the period from 6 April to 31 December 2001 and self-employed taxpayers were assessed for tax for the short "year" on 74% of the profits earned in a 12-month accounting period, the income figures will not be directly comparable with those of earlier or later years.

A married couple who have elected or have been deemed to have elected for joint assessment are counted as one tax unit. Married couples and individuals with income chargeable to tax under both schedule E and schedule D have been classified in the tables below by reference to the schedule under which the larger amount of income is taxable.

The designation of a tax rate to an income earner in the tables is based on identifying the top tax rate applying to the taxable income of each earner. To arrive at the figure for taxable income, the gross income is reduced by various relevant deductions and allowances such as capital allowances, losses, allowable expenses and retirement annuities. In some cases, these will reduce the taxable income to nil. Where there is a positive taxable income, it is a feature of the tax credit system that the association between taxable income and the marginal tax rate is made prior to deduction of the personal and other tax credits in arriving at the net tax liability.

Analysis of the data in the tables indicates that of those in the PAYE sector who earned €100,000 or more in the short tax "year", 2001, 0.4% had a nil net income tax liability, 0.4% had a net liability for tax at the standard or marginal relief rates and 99.2% had a liability for tax at the higher rate. Of the self-employed who earned €100,000 or more in the short tax "year" 2001, 2.1% had a nil net income tax liability, 1.2% had a net liability for tax at the standard or marginal relief rates and 96.7% had a liability for tax at the higher rate.

INCOME TAX "short year" 2001

Numbers of mainly PAYE income earners with incomes exceeding €100,000 (including proprietary directors on the PAYE record)

Range of Gross Income

No net liability for income tax

Liable for tax at the standard rate (20%) or marginal relief

Liable for tax at the higher rate (42%)

Overall Total

Single*

Married

Total

Single*

Married

Total

Single*

Married

Total

100,000 120,000

3

12

15

4

6

10

518

3,415

3,933

3,958

120,000 140,000

1

2

3

0

6

6

262

1,914

2,176

2,185

140,000 160,000

0

1

1

1

6

7

142

1,093

1,235

1,243

160,000 180,000

1

4

5

0

4

4

98

717

815

824

180,000 200,000

0

4

4

0

2

2

78

514

592

598

200,000 220,000

0

1

1

0

4

4

52

358

410

415

220,000 240,000

0

0

0

0

0

0

27

278

305

305

240,000 260,000

0

1

1

0

1

1

30

188

218

220

260,000 280,000

0

1

1

0

1

1

25

142

167

169

280,000 300,000

1

1

2

0

1

1

14

111

125

128

300,000 320,000

0

1

1

0

1

1

10

92

102

104

320,000 340,000

0

0

0

0

0

0

11

72

83

83

340,000 360,000

0

0

0

1

0

1

7

50

57

58

360,000 380,000

0

0

0

0

1

1

7

55

62

63

380,000 400,000

0

1

1

0

0

0

5

44

49

50

400,000 420,000

0

1

1

0

0

0

8

32

40

41

420,000 440,000

1

0

1

0

0

0

6

27

33

34

440,000 460,000

0

1

1

0

0

0

2

29

31

32

460,000 480,000

0

0

0

0

0

0

6

14

20

20

480,000 500,000

0

0

0

0

0

0

2

23

25

25

500,000 520,000

0

0

0

0

1

1

2

15

17

18

520,000 540,000

0

1

1

0

0

0

1

15

16

17

540,000 560,000

1

1

2

0

0

0

2

11

13

15

560,000 580,000

0

0

0

0

0

0

6

13

19

19

580,000 600,000

0

1

1

0

0

0

3

13

16

17

600,000 620,000

0

0

0

0

0

0

0

8

8

8

620,000 640,000

0

0

0

0

0

0

0

7

7

7

640,000 660,000

0

0

0

0

0

0

0

8

8

8

660,000 680,000

0

0

0

0

0

0

1

7

8

8

680,000 700,000

0

0

0

0

0

0

1

5

6

6

700,000 720,000

0

0

0

0

0

0

0

3

3

3

720,000 740,000

0

0

0

0

0

0

1

9

10

10

740,000 760,000

0

0

0

0

0

0

0

4

4

4

760,000 780,000

0

0

0

0

0

0

1

4

5

5

780,000 800,000

0

0

0

0

0

0

1

7

8

8

800,000 820,000

0

0

0

0

0

0

1

10

11

11

820,000 840,000

0

1

1

0

0

0

0

3

3

4

840,000 860,000

0

0

0

0

0

0

0

1

1

1

860,000 880,000

0

1

1

0

0

0

0

3

3

4

880,000 900,000

0

0

0

0

0

0

0

1

1

1

900,000 920,000

0

0

0

0

0

0

0

3

3

3

920,000 940,000

0

0

0

0

0

0

0

6

6

6

940,000 960,000

0

0

0

0

0

0

0

3

3

3

960,000 980,000

0

0

0

0

0

0

1

7

8

8

980,000 1,000,000

1

0

1

0

0

0

0

3

3

4

Over 1,000,000

0

2

2

0

0

0

16

57

73

75

9

38

47

6

34

40

1,347

9,394

10,741

10,828

* "Single" includes widowed persons

INCOME TAX "short year" 2001

Numbers of mainly self-employed income earners with incomes exceeding €100,000

Range of Gross Income

No net liability for income tax

Liable for tax at the standard rate (20%) or marginal relief

Liable for tax at the higher rate (42%)

Overall Total

Single*

Married

Total

Single*

Married

Total

Single*

Married

Total

100,000 120,000

12

26

38

3

26

29

348

1,707

2,055

2,122

120,000 140,000

9

22

31

3

17

20

235

1,141

1,376

1,427

140,000 160,000

6

13

19

2

15

17

168

877

1045

1,081

160,000 180,000

3

10

13

1

12

13

110

590

700

726

180,000 200,000

2

11

13

1

3

4

81

501

582

599

200,000 220,000

0

5

5

2

2

4

71

378

449

458

220,000 240,000

2

5

7

1

4

5

41

318

359

371

240,000 260,000

3

5

8

0

2

2

36

245

281

291

260,000 280,000

0

4

4

0

1

1

28

227

255

260

280,000 300,000

1

5

6

0

0

0

31

183

214

220

300,000 320,000

0

6

6

1

2

3

28

157

185

194

320,000 340,000

0

0

0

0

0

0

15

134

149

149

340,000 360,000

1

3

4

1

1

2

16

107

123

129

360,000 380,000

0

1

1

0

1

1

21

108

129

131

380,000 400,000

0

2

2

0

0

0

24

103

127

129

400,000 420,000

0

0

0

0

0

0

11

72

83

83

420,000 440,000

0

2

2

0

0

0

15

79

94

96

440,000 460,000

1

1

2

0

0

0

9

74

83

85

460,000 480,000

0

1

1

0

1

1

5

48

53

55

480,000 500,000

0

1

1

0

1

1

5

37

42

44

500,000 520,000

0

2

2

0

1

1

4

45

49

52

520,000 540,000

0

1

1

0

0

0

8

39

47

48

540,000 560,000

0

4

4

0

0

0

5

25

30

34

560,000 580,000

0

1

1

0

0

0

4

27

31

32

580,000 600,000

2

2

4

0

1

1

2

25

27

32

600,000 620,000

0

1

1

0

0

0

5

29

34

35

620,000 640,000

0

1

1

0

2

2

4

19

23

26

640,000 660,000

0

2

2

0

0

0

3

20

23

25

660,000 680,000

1

0

1

0

0

0

2

8

10

11

680,000 700,000

0

0

0

0

0

0

6

22

28

28

700,000 720,000

0

0

0

0

0

0

4

11

15

15

720,000 740,000

0

1

1

0

0

0

2

11

13

14

740,000 760,000

0

0

0

0

0

0

3

4

7

7

760,000 780,000

0

0

0

0

0

0

1

12

13

13

780,000 800,000

0

1

1

0

0

0

1

5

6

7

800,000 820,000

0

0

0

0

0

0

0

8

8

8

820,000 840,000

0

1

1

0

0

0

1

9

10

11

840,000 860,000

0

0

0

0

0

0

0

10

10

10

860,000 880,000

0

1

1

0

1

1

2

12

14

16

880,000 900,000

0

0

0

0

1

1

1

7

8

9

900,000 920,000

0

2

2

0

0

0

2

4

6

8

920,000 940,000

0

0

0

0

0

0

1

6

7

7

940,000 960,000

0

0

0

0

0

0

0

4

4

4

960,000 980,000

0

0

0

0

0

0

1

1

2

2

980,000 1,000,000

0

0

0

0

0

0

0

8

8

8

Over 1,000,000

2

7

9

0

0

0

18

101

119

128

45

150

195

15

94

109

1,378

7,558

8,936

9,240

* "Single" includes widowed persons