Michael McGrath
Question:127. Deputy Michael McGrath asked the Minister for Finance the yield from the high earners restriction in each year since it was introduced; and if he will make a statement on the matter. [16418/14]
View answerTuesday, 8 April 2014
Questions (127)
Written answers
The Revenue Commissioners prepare an annual report on the application of the high income individual's restriction. The 2011 report[1] contains the following table which shows the annual yield for each year since the measure was introduced.
|
Year |
Total Number of Individuals |
Additional Tax €m |
|
2011 |
1,143 |
63.60 |
|
2010 |
1,544 |
80.18 |
|
2009 |
452 |
38.86 |
|
2008 |
423 |
39.68 |
|
2007 |
439 |
39.99 |
When compared to the 2010 report, the total additional tax shows a reduction of €16.58 million. This decrease results from two main factors (i) the general economic downturn and (ii) the changes introduced in Finance Act 2011 i.e., the reduction in the amount of income which can qualify for the artists exemption and the removal of the exemption for patent income. In addition, the changes to the restriction may have led to behavioural change in those who traditionally availed of specified reliefs. The 2012 income tax returns were filed in November 2013 and are currently being processed. The yield from the measure for the 2012 year is not yet fully analysed and therefore figures are not yet available. The Revenue Commissioners expect to submit the 2012 report to my Department in the third quarter of this year.
[1] The figures for this table are drawn from the Revenue Commissioners 2011 report, which is available at http://www.finance.gov.ie/what-we-do/tax-policy/publications/reports-research/restriction-reliefs/restriction-reliefs.