Thursday, 8 November 2012

Questions (122)

Seán Fleming

Question:

122. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the capital acquisitions tax rate to 35%; and if he will make a statement on the matter. [49288/12]

View answer

Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 5% to 35 %, based on the expected outturn in 2012, could be in the region of €45 million, assuming no change in the existing thresholds. This estimate is provisional and subject to revision.

It should be noted that this estimate is based upon an assumption that there would be no behavioural impact of this change, which could lead to a less than expected impact on Exchequer yield. In addition, the realization of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.