Dáil Éireann Debate, Tuesday - 10 February 2009
263 Deputy Arthur Morgan asked the Minister for Finance the yield for the Exchequer if the pension levy was increased from 2% to 3% for people earning above €200,000; and if he will make a statement on the matter. [5053/09]
View answerI understand the Deputy is referring to the income levy. I am informed by the Revenue Commissioners that an increase in the income levy from 2% to 3% on incomes above €200,000 would yield approximately €8 million in a full year.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2005 adjusted as necessary for income and employment growth for 2009. They are therefore provisional and likely to be revised. The figures for income and employment growth used are based on macro-economic indicators which have been recently revised in the light of the latest economic outlook for 2009.
264 Deputy Arthur Morgan asked the Minister for Finance the yield for the Exchequer if the pension levy was increased from 2% to 3% for people earning above €100,000; and if he will make a statement on the matter. [5054/09]
View answerI understand the Deputy is referring to the income levy. I am informed by the Revenue Commissioners that an increase in the income levy from 2% to 3% on incomes above €100,100 would yield approximately €45 million in a full year.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2005 adjusted as necessary for income and employment growth for 2009. They are therefore provisional and likely to be revised. The figures for income and employment growth used are based on macro-economic indicators which have been recently revised in the light of the latest economic outlook for 2009.
265 Deputy Arthur Morgan asked the Minister for Finance the savings to the Exchequer if the pay pause was implemented for public sector workers who earn €80,000 or more; and if he will make a statement on the matter. [5055/09]
View answerIt is estimated that the pension related deduction will yield in the region of €300 million in a full year from public service workers in the pay band mentioned by the Deputy. It is further estimated that the non-payment of the pay phases under the Review and Transitional Agreement will yield, for the group in question, some €55m in 2009, €220m in 2010 and €260m in 2011.
266 Deputy Arthur Morgan asked the Minister for Finance the yield to the Exchequer if Irish citizens claiming to be non-resident for tax purposes were to lose their non-resident status; and if he will make a statement on the matter. [5056/09]
View answerThe taxation of individuals in the State is in line with that prevailing in other jurisdictions, that is to say — (a) individuals who are resident in the State for tax purposes are taxable here on their worldwide income; and (b) individuals who are not resident here for tax purposes pay tax here only on income arising in the State.
I have no plans to change this treatment and nor have I plans to make all Irish citizens living abroad resident here for tax purposes. Whether or not an individual chooses to live here or abroad — for whatever reason — is a matter for that individual and the State will not interfere with an individual's choice of where he or she wishes to live. Indeed, many Irish citizens choose to live abroad for reasons other than the tax system.
As regards the questions raised by the Deputy, as non-resident individuals (including non-resident Irish citizens) have an obligation to make a tax return only in respect of their Irish sourced income, it is impossible to quantify the potential tax yield if all Irish citizens living abroad were to pay tax here on their worldwide income. There is also the added difficulty that, under the terms of double taxation agreements between this State and another jurisdiction, that other jurisdiction may have the primary taxing rights on income arising there and there would be no yield to the State on the income in question.
