Tax Yield.

Dáil Éireann Debate, Thursday - 21 January 2010

Thursday, 21 January 2010

Questions (92)

Richard Bruton

Question:

87 Deputy Richard Bruton asked the Minister for Finance if the official statistics on income distribution published by his Department focus solely on tax cases as defined by the Revenue Commissioners instead of looking at the distribution across individual earners; if it is possible for the Revenue Commissioners to derive accurate estimates of the distribution of individual earners from the tax returns or at least make accurate estimates of the distribution; his views on routinely presenting data in this way in order that such data as the percentage of income tax paid by top earners could be judged according to the different measures; and if he will make a statement on the matter. [2719/10]

Written answers

Minister for Finance (Deputy Brian Lenihan)

Generally speaking the statistics on incomes published by my Department in relation to income tax are based on tax cases. This is clearly stated in publications and in replies to Parliamentary Questions.

The vast majority of married income earners choose to be assessed jointly for income tax purposes. While it may be possible, with the assistance of significant development to the existing computer-based databases and costing model, to produce income statistics for income tax based on individual earners, this is problematic for various reasons, in particular given the facility for married couples to transfer credits and, in part, the standard rate band.

In the interests of consistency, I am reluctant to alter the way income tax statistics are currently presented. Furthermore, I am not convinced that presenting income tax statistics in a manner different to the way income tax is actually assessed and collected provides significant additional value.