Dáil Éireann Debate, Tuesday - 16 October 2012
327. Deputy Kevin Humphreys asked the Minister for Social Protection the yield on an annual basis from 2007 to 2011 from PRSI on rental income; the expected yield in 2012; and if she will make a statement on the matter. [44620/12]
View answer328. Deputy Kevin Humphreys asked the Minister for Social Protection the projected yield of PRSI on an annual basis if it was to all rental income, from both self employed and PAYE workers; and if she will make a statement on the matter. [44622/12]
View answer329. Deputy Kevin Humphreys asked the Minister for Social Protection if she has considered extending PRSI on to all unearned investment income such as income from rental property, dividends, other investments and deposit interest for employees; if she will consider having it deducted at source where applicable such as from the issuing company or bank; the projected yield from such a widening of the PRSI base; and if she will make a statement on the matter. [44623/12]
View answer330. Deputy Kevin Humphreys asked the Minister for Social Protection the yield on an annual basis from 2007 to 2011 from PRSI on dividend income; the expected yield in 2012; the increased projected yield on an annual basis if it was extended to dividend income from both self employed and PAYE workers; if she will consider introducing a withholding of PRSI at source before disbursement of dividends; and if she will make a statement on the matter. [44624/12]
View answer331. Deputy Kevin Humphreys asked the Minister for Social Protection the yield on an annual basis from 2007 to 2011 from PRSI on deposit interest income; the expected yield in 2012; the increased projected yield on an annual basis if PRSI was extended to deposit interest income from both self employed and PAYE workers; if she will consider introducing a withholding of PRSI at source before disbursement of interest on such personal accounts as applies to DIRT; and if she will make a statement on the matter. [44625/12]
View answer332. Deputy Kevin Humphreys asked the Minister for Social Protection if she will confirm that if a person was self-employed with an investment income of €10 million per annum made up from sources that included rental income, dividends from publicly traded shares and interest from bank savings, that they would be liable to PRSI of 4% on that income, but if they were to then become employed at the minimum wage through the PAYE system whilst continuing to earn €10 million of investment income that they would no longer be liable for PRSI on that investment income; and if she will make a statement on the matter. [44626/12]
View answerI propose to take Questions Nos. 327 to 332, inclusive, together.
All workers pay PRSI on their earnings from employment. If an employee has earned income from self-employment, PRSI as a self-employed contributor is also payable on the profits from that self-employed activity as well as from any other unearned income the individual may have. Similarly a self-employed contributor (who is not an employee) pays PRSI on both earned and unearned income. However if an employee has unearned income only, there is no PRSI charge on the unearned income. Unearned income includes rental and investment income as well as income from dividends, deposits and savings and from overseas investments.
It is difficult to estimate the projected annual yield if PRSI was extended to all sources of unearned income including income from rental property, dividends, other investments and deposit interest for both self-employed and PAYE workers who currently may not be liable to pay PRSI on these streams of income. Based on 2009 data it is estimated that the additional yield could be in the region of €20m, of which a substantial part refers to rental income.
The Revenue Commissioners act as the Department of Social Protection’s agent in the collection of PRSI. Any proposal to deduct at source or withhold PRSI to be charged on streams of income which are currently exempt from PRSI would have to be discussed with the Commissioners to determine the viability of that mechanism of collection.
It is not possible to furnish the annual yield from 2007 to 2011 and the projected yield in 2012, in respect of various categories of unearned income including rental income, dividend income and deposit interest income, as this information is not disaggregated from Class S income generally.
One of my key goals in the Department is to reform the system of social protection to put it on a sounder financial footing in the future. One of the matters I am most concerned about is the deficit in the Social Insurance Fund. It is my intention to widen the PRSI income base to make certain types of unearned income, such as those outlined above, liable to PRSI. Any proposal to bring additional sources of income within the base on which PRSI is charged would have to be considered taking account of all of the implications, including the potential for providing access to additional social insurance entitlements.
