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.