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Tax Yield

Dáil Éireann Debate, Tuesday - 8 October 2013

Tuesday, 8 October 2013

Questions (150)

Kevin Humphreys

Question:

150. Deputy Kevin Humphreys asked the Minister for Finance the projected increased yield in a full year of increasing the domicile levy to €300,000; the additional yield of restricting the amount of income tax available as a credit for the domicile levy to €100,000; the additional yield if both measures were introduced in unison; and if he will make a statement on the matter. [41927/13]

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Written answers

I am informed by the Revenue Commissioners that, on the basis of Domicile Levy returns filed for 2011, the latest year available, the full year yield on a straightforward arithmetic basis of an increase in the levy from €200,000 to €300,000 could be in the region of €1.5 million.

I am also informed that, based on claims for the Income Tax credit in excess of €100,000 contained in the relevant tax returns, it is estimated that the additional yield from restricting the Income Tax credit against the Domicile Levy to €100,000 would be approximately €55,000. If the two measures were introduced together, the total additional yield could be of the order of €1,555,000.

The Domicile Levy is a charge on anyone

- who in any year is Irish domiciled;

- whose worldwide income in the year exceeds €1m,

- whose Irish located property in the year is valued greater than €5m, and

- whose liability to Irish income tax for the year is less than €200,000.

Various factors, including falls in asset values and income, may reduce the numbers liable to pay the levy. Therefore an increase in the amount of the levy or a reduction to the Income Tax available as a credit against the levy may not of themselves increase the yield.

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