Michael McGrath
Question:159. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised from increasing the capital gains tax rate to 35%; and if he will make a statement on the matter. [36644/13]
View answerDáil Éireann Debate, Thursday - 18 July 2013
159. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised from increasing the capital gains tax rate to 35%; and if he will make a statement on the matter. [36644/13]
View answerI am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 33% to 35% could be in the region of €31 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.