Wednesday, 3 July 2013

Questions (73)

Pearse Doherty

Question:

73. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 82 of 26 June 2013, if he will set out the additional average tax paid by employees in the categories mentioned if the employees were also subject to a new third rate of tax of 48% on income earned in excess of €100,000. [32382/13]

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Written answers (Question to Finance)

I am advised by the Revenue Commissioners that if the main personal and employee tax credits were to be restricted in the manner mentioned by the deputy in parliamentary question number 30922/13 of 26 June, and additionally, if a new third rate of tax of 48% on taxable income in excess of €100,000 was introduced, the additional average tax payable by employees, estimated by reference to 2013 incomes, is set out in respect of each of the specified income categories as follows.

Range of Gross Income

Average additional

tax payable

per income earner

within the income range

€100,000 to € 150,000

€ 3,397

€150,001 to € 200,000

€ 7,196

Over € 200,000

€ 18,208

The employees who have been taken into account in these calculations do not include proprietary directors who, while formally taxed under the PAYE system, are more akin to the self-employed. An individual is not entitled to the employee (PAYE) tax credit against emoluments paid by a company to that individual as a proprietory director. It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2011. These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. They are therefore provisional and likely to be revised. It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.