Thursday, 12 July 2012

Questions (57)

Patrick Nulty

Question:

56 Deputy Patrick Nulty asked the Minister for Finance further to previous replies regarding a potential wealth tax and the possibility of collection of same, if he will confirm if by 2014 the new Central Statistics Office household finance and consumption survey is expected to contain enough information to introduce a wealth tax in Ireland; and if not, if he will confirm the timeframe that it will take to put in place the necessary process to calculate wealth tax liability in Ireland and the changes to the current system that will be required; and if he will also consider the possibility of a wealth tax taking into account the global assets of Irish citizens, rather than just the assets held in Ireland, which would be in line with the wealth tax system in France which transcends France’s borders. [34163/12]

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Written answers (Question to Minister for Finance)

As previously indicated to the Deputy, in response to question 25411/12 on 23 May last, the Government does not propose at this time to introduce a wealth tax, although all taxes and potential taxation options are constantly reviewed. The data to be collected by the CSO as part of its Household Finance and Consumption Survey is not being collected for the purposes of calculating the potential yield from a wealth tax but to collect general information on the financial situation and behaviour of households.

As regards the tax system taking account of the global assets of Irish citizens, the liability to taxation of individuals in Ireland is determined on the basis of residence, ordinary residence and domicile rather than citizenship. Individuals who are resident, ordinarily resident and domiciled in Ireland for tax purposes are currently liable to Irish Income Tax on worldwide income, Irish Capital Gains Tax on worldwide gains, and Irish Capital Acquisitions Tax on worldwide gifts and inheritances, subject to double taxation relief, where available.