Wednesday, 25 January 2012

Questions (65)

Derek Nolan


60 Deputy Derek Nolan asked the Minister for Finance if he will provide a breakdown, in tabular form, of the number of taxpayers here earning in excess of €100,000, €250,000, €500,000 and €1 million; the number of these taxpayers who pay an effective tax rate of 30% or less; and if he will make a statement on the matter. [4315/12]

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Written answers (Question to Minister for Finance)

I am informed by the Revenue Commissioners that the most recent basic data available on incomes from which information of the type requested by the Deputy could be derived for all income earners on the income tax record are in respect of the income tax year 2009. The information requested on effective rates of income tax of all income earners in the specified income bands is set out as follows insofar as it is available.

Effective rates of income tax for 2009 for Income Earners earning over €100,000

Range of Gross Income

Total Numbers in income range

Numbers with an effective tax rate of 30% or less

€100,000 —€250,000



€250,001 —€500,000



€500,001 —€1,000,000



Over €1,000,000



It should be noted that the effective tax rate used to derive the figures in the table above only relates to income tax and does not take account of PRSI and previous charges such as the Income levy and Health Levy. In 2012, in addition to income tax, high income earners would be liable to PRSI of 4% and top rates of Universal Social Charge of 7% on PAYE income and 10% on self-employed income.

The Deputy will be aware that from the tax year 2010 onwards, the high earner's restriction, applicable to those who make significant use of certain specified tax reliefs, has been further tightened such that a 30% effective tax rate applies for those subject to the full restriction. These reliefs do not include those for health expenses and the standard tax credits, which are available to all taxpayers.

The figures in the table are based on details from tax returns on record at the time the data for each year were compiled for analytical purposes. This was generally based on coverage levels representing in or about 95% of all returns expected. The effective rate of income tax for each income earner with gross income in excess of €100,000 in 2009 is calculated as the percentage of total tax liability to gross income.

It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2010. A married couple that have elected or have been deemed to have elected for joint assessment is counted as one taxpayer.