Written Answers Nos. 99-103
99. Deputy Patrick O'Donovan asked the Minister for Finance if there are any tax reliefs available for a person paying the nursing home fee contribution for their spouse who is in a nursing home under the fair deal scheme; and if he will make a statement on the matter. [45472/12]
View answerI am advised by the Revenue Commissioners that Section 469 of the Taxes Consolidation Act 1997 provides for tax relief in respect of health expenses in the provision of health care incurred by an individual or an individual’s spouse or civil partner, on their own behalf or on behalf of someone else. Any contribution made by an individual in defraying nursing home expenses on behalf of an individual, where that individual has received State support under section 3 of the Nursing Home Support Scheme Act 2009, otherwise known as the “Fair Deal Scheme”, is treated as health expenses qualifying for relief. This relief is given at the individual’s marginal rate of tax. The State support contribution towards the cost of such nursing home expenses under this scheme is not treated as a qualifying expense. Relief is granted to an individual after the end of the tax year by way of a claim made to the Revenue Commissioners by completing a tax return including form Med 1, or through the online services of "ROS" or "PAYE Anytime".
100. Deputy Terence Flanagan asked the Minister for Finance his plans to introduce a higher tax rate for the higher paid earners; and if he will make a statement on the matter. [45480/12]
View answerThe position, as stated in the Programme for Government, is that as part of the Government’s fiscal strategy, we will maintain the current rates of income tax along with bands and credits. In addition, we will not increase the top marginal rates of taxes on income. There are no plans at this time to depart from this policy. I should point out that the top marginal rate of taxation on income is now 52% for PAYE workers and 55% for the self-employed. The latest OECD data indicates that Ireland has the most progressive tax system of the EU members of its organisation. A progressive taxation system ensures the burden of taxation falls most heavily on those with a higher ability to pay. It is estimated that in 2012, the top 5% of income earners will pay 43% of the total income tax, while it is estimated that those earning €50,000 or less, representing 78% of income earners, will pay 20% of the total income tax. Furthermore, it is estimated that in 2012, 841,100 individuals, representing 39% of the income tax base, will be exempt from income tax. When marginal rates of tax are very high, jobs are lost. Indirect taxes have a less adverse impact on employment. That is why indirect taxes rather than taxes on income were increased in the last budget. However, that does not mean the wealthy should not carry the principal burden of tax. The minimum effective tax restriction on high earners is designed to ensure this by imposing a minimum effective income tax rate of 30% for those subject to the full restriction, in addition to 4% in PRSI and up to 10% in the USC.
101. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on estimated tax revenue (details supplied); and if he will make a statement on the matter. [45484/12]
View answerAs I have stated recently to the Deputy, the estimated full-year costs and-or yields of the tax revenue measures introduced in Budget 2012 are set out on pages B5 to B11 of the Summary of 2012 Budget and Estimates Measures Policy Changes section of the budget 2012 book. In the context of producing the budget 2013 tax revenue forecasts in the coming weeks, the Revenue Commissioners will advise my Department if the estimated full-year costs and-or yields of the tax revenue measures introduced in Budget 2012 need to be revised. I should inform the Deputy that the end of September Exchequer returns were published on 2 October last on my Department’s website. Data in relation to the performance of tax revenues, both against profile and in year-on-year terms, were published as part of those returns. I would also like to make the Deputy aware that my Department will in the coming weeks be publishing an updated medium-term fiscal statement which will include revised macroeconomic and fiscal projections.
102. Deputy Róisín Shortall asked the Minister for Finance in respect of Appendix D of the Green Paper on Pensions, if he will provide the same information in respect of Personal Retirement Savings Accounts and Retirement Annuity Contracts for the latest year for which figures are available. [45546/12]
View answerI am informed by the Revenue Commissioners that the latest relevant information available is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the 2009 income tax year. RACs and PRSAs are available to self-employed people and to employees who are not in occupational pension schemes. The information in the tables that follow this reply sets out the number of cases and the amounts of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges. The information is based on income returns contained in Revenue records at the time the data were compiled for analytical purposes, representing in the region of 90% of all returns expected. A married couple that has elected or been deemed to have elected for joint assessment is counted as one tax unit.
Income Tax 2009
Personal Retirement Savings Accounts - by Range of Gross Income
|
Income Range |
Total Number of Cases |
Total Amount of Deduction |
Total Reduction in Tax |
Total Tax due for Payment |
Gross Tax * |
Reduction in Tax as Percentage of Gross Tax |
|
Up to €9,000 |
389 |
€569,095 |
€0 |
0 |
0 |
100.0% |
|
From €9,000 to €10,000 |
76 |
€144,082 |
€2,932 |
0 |
€2,932 |
100.0% |
|
From €10,000 to €12,000 |
179 |
€312,298 |
€29,726 |
€2,258 |
€31,984 |
92.9% |
|
From €12,000 to €15,000 |
395 |
€801,981 |
€99,096 |
€41,898 |
€140,994 |
70.3% |
|
From €15,000 to €17,000 |
281 |
€561,554 |
€76,659 |
€39,854 |
€116,513 |
65.8% |
|
From €17,000 to €20,000 |
559 |
€1,117,863 |
€171,529 |
€129,415 |
€300,944 |
57.0% |
|
From €20,000 to €25,000 |
1,245 |
€2,500,669 |
€458,417 |
€587,764 |
€1,046,181 |
43.8% |
|
From €25,000 to €27,000 |
595 |
€1,350,129 |
€252,809 |
€499,229 |
€752,038 |
27.5% |
|
From €27,000 to €30,000 |
981 |
€2,200,610 |
€424,504 |
€1,116,830 |
€1,541,334 |
33.6% |
|
From €30,000 to €35,000 |
1,613 |
€4,052,904 |
€796,691 |
€3,755,628 |
€3,326,995 |
23.9% |
|
From €35,000 to €40,000 |
1,645 |
€4,306,349 |
€1,007,863 |
€2,530,304 |
€4,763,491 |
21.2% |
|
From €40,000 to €50,000 |
2,956 |
€9,148,462 |
€2,732,064 |
€10,159,964 |
€12,892,028 |
21.2% |
|
From €50,000 to €60,000 |
2,386 |
€8,447,989 |
€2,682,025 |
€12,632,445 |
€15,314,470 |
17.5% |
|
From €60,000 to €75,000 |
2,748 |
€12,039,226 |
€3,674,795 |
€21,255,365 |
€24,930,160 |
14.7% |
|
From €75,000 to €100,000 |
2,893 |
€17,016,973 |
€6,427,644 |
€35,676,997 |
€42,104,641 |
15.3% |
|
From €100,000 to € 150,000 |
2,186 |
€20,931,152 |
€8,464,430 |
€48,292,858 |
€56,757,288 |
14.9% |
|
From €150,000 to €200,000 |
737 |
€10,327,075 |
€4,220,710 |
€28,575,564 |
€26,188,498 |
12.9% |
|
From €200,000 to €250,000 |
408 |
€7,522,494 |
€3,084,223 |
€23,104,275 |
€32,796,274 |
11.8% |
|
Over €250,000 |
899 |
€23,864,724 |
€9,747,122 |
€118,922,479 |
€128,669,601 |
7.6% |
|
Totals |
23,171 |
€127,215,629 |
€44,353,237 |
€307,323,127 |
€351,676,364 |
12.6% |
* "Gross tax" means the tax that would be due before relief is allowed for PRSA deductions
The figures do not include contributions made by employees through employers' payroll systems and in respect of which tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to make it possible to provide disaggregated figures.
Income Tax 2009
Retirement Annuity - by Range of Gross Income
Income
|
Income Range |
Total Number of Cases |
Total Amount of Deduction |
Total Reduction in Tax |
Total Tax due for Payment |
Gross Tax * |
Reduction in Tax as Percentage of Gross Tax |
|
Up to €9,000 |
958 |
€1,277,770 |
€5,847 |
€2,863 |
€8,710 |
67.1% |
|
From €9,000 to €10,000 |
217 |
€332,091 |
€6,563 |
€122 |
€6,685 |
98.2% |
|
From €10,000 to €12,000 |
559 |
€862,285 |
€77,343 |
€8,429 |
€85,772 |
90.2% |
|
From €12,000 to €15,000 |
1,160 |
€1,941,229 |
€246,791 |
€116,655 |
€363,446 |
67.9% |
|
From €15,000 to €17,000 |
854 |
€1,596,034 |
€210,660 |
€154,708 |
€365,368 |
57.7% |
|
From €17,000 to €20,000 |
1,712 |
€3,348,026 |
€464,698 |
€504,465 |
€969,163 |
47.9% |
|
From €20,000 to €25,000 |
3,614 |
€7,361,412 |
€1,259,933 |
€1,925,876 |
€3,185,809 |
39.5% |
|
From €25,000 to €27,000 |
1,674 |
€3,477,881 |
€646,505 |
€1,342,186 |
€1,988,691 |
28.5% |
|
From €27,000 to €30,000 |
2,749 |
€5,892,566 |
€1,109,790 |
€2,784,092 |
€3,893,882 |
24.6% |
|
From €30,000 to €35,000 |
4,914 |
€11,498,047 |
€2,196,173 |
€6,716,816 |
€8,912,989 |
32.5% |
|
From €35,000 to €40,000 |
5,106 |
€12,860,306 |
€2,770,591 |
€9,817,665 |
€12,588,256 |
22.0% |
|
From €40,000 to €50,000 |
9,448 |
€27,034,525 |
€7,114,574 |
€27,996,996 |
€35,111,570 |
20.3% |
|
From €50,000 to €60,000 |
8,210 |
€27,780,435 |
€8,030,508 |
€37,161,336 |
€45,191,844 |
17.8% |
|
From €60,000 to €75,000 |
9,930 |
€40,493,236 |
€11,856,197 |
€69,121,026 |
€80,977,223 |
14.6% |
|
From €75,000 to €100,000 |
10,633 |
€61,809,601 |
€22,867,324 |
€119,463,865 |
€142,331,189 |
17.7% |
|
From €100,000 to € 150,000 |
8,455 |
€90,682,374 |
€36,459,195 |
€169,239,379 |
€205,698,574 |
16.1% |
|
From €150,000 to €200,000 |
€3,067 |
€€59,207,647 |
€24,113,192 |
€106,507,258 |
€130,620,450 |
18.5% |
|
From €200,000 to €250,000 |
€1,711 |
€€44,347,003 |
€18,112,967 |
€87,816,391 |
€105,929,358 |
17.1% |
|
Over €250,000 |
€4,233 |
€151,381,900 |
€61,886,378 |
€553,220,871 |
€615,107,249 |
10.1% |
|
Totals |
€79,204 |
€553,184,370 |
€199,435,230 |
€1,193,900,999 |
€1,393,336,229 |
14.3% |
* "Gross tax" means the tax that would be due before relief is allowed for Retirement Annuity deductions
The figures do not include contributions made by employees through employers' payroll systems and in respect of which tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to make it possible to provide disaggregated figures.
103. Deputy Martin Heydon asked the Minister for Finance further to Parliamentary Question No. 52 of 11 October 2012, if it is possible to introduce a threshold for boards of management for small school projects so that the additional administration work set out in that reply is not necessary for minor maintenance repair works for example broken window, broken boiler; and if he will make a statement on the matter. [45548/12]
View answerI am informed by the Revenue Commissioners that contracts for routine maintenance work do not come within the scope of Relevant Contracts Tax (RCT). However, RCT applies to all construction works ranging from major construction projects to general repair works. Repair work includes the replacement of constituent parts of a building or structure, for example, the repair of a broken window. Maintenance, on the other hand, includes cleaning, removal of graffiti and the unblocking of drains, etc. In the light of the difficulty some school boards of management may be having in fulfilling their obligations under the RCT system, the Revenue Commissioners have made available detailed guidance notes specifically tailored for boards of management regarding the operation of RCT. These guidance notes, which clarify the position in relation to repair work and maintenance work, have been published on the Revenue website, www.revenue.ie. The need to ensure tax compliance by subcontractors is particularly important where the Exchequer is the ultimate source of the funds being paid out by school boards of management and other principal contractors. RCT plays an important role in ensuring tax compliance by subcontractors in these sectors. Therefore, it would not be appropriate to introduce a threshold for this type of work. From 1 January 2012, the Revenue Commissioners have substantially modernised the operation of RCT following the introduction of a dedicated online facility which offers principal contractors a fast, efficient and paper-free system. This has significantly reduced the administrative burden associated with RCT. Finally, having regard to the pressures on the public finances, it is important that the RCT system is implemented correctly to minimise tax evasion in the construction sector, particularly where the project involves substantial State funding. The new online system introduced by Revenue has significantly simplified the RCT process for principal contractors, including school boards of management.
