Róisín Shortall
Question:303. Deputy Róisín Shortall asked the Minister for Finance if he will publish his methodology in calculating the expected yield for capital acquisitions tax for 2014 and 2015. [34379/14]
View answerWednesday, 17 September 2014
Questions (303, 304)
Róisín Shortall
Question:304. Deputy Róisín Shortall asked the Minister for Finance the expected yield from capital acquisitions tax for the years 2008 to date in 2014; if he will provide details of the assumptions made by him under each of the following headings, number of deaths, number of transfers to spouses only, total value of the assets of all deceased, total value of assets transferred to spouses, total value of assets transferred to those other than spouses, the number of taxable gifts and their collective value, the total number of taxable inheritances, the numbers of claims for business and agricultural relief and the costs of the exemptions granted such claims, the number of claims for favoured nephew status and the number of claims in respect of the relief on dwelling houses. [34380/14]
View answerWritten answers
I propose to take Questions Nos. 303 and 304 together.
As the Deputy will appreciate, the forecasting of capital taxes such as Capital Acquisition Tax (CAT) is quite complex. This is due to fact that capital taxes do not have as consistent a relationship with economic growth as other taxes such as income tax and VAT. Receipts from CAT are dependent on events of a once off nature such as gifts and inheritance.
In general, the forecasting of CAT receipts is heavily based on actual outturns which is then driven by growth in nominal GNP. This methodology eliminates the need to make forecasts on the number of deaths, number of transfers to spouses, total value of assets transferred and the various other categories set out by Deputy. However, my Department does liaise very closely with the Revenue Commissioners who are aware of significant developments which will impact on the CAT take. The data provided by the Revenue Commissioners is then incorporated into the forecast.
The following table sets out the actual outturn in CAT receipts for the years 2008 to 2013 (inclusive). In addition, the table also sets out the Budget 2014 forecast for CAT receipts for this year.
CAT receipts 2008 to 2014
|
€000 |
2008 Outturn |
2009 Outturn |
2010 Outturn |
2011 Outturn |
2012 Outturn |
2013 Outturn |
*2014 estimated Outturn |
|
CAT |
331,600 |
254,258 |
237,769 |
243,507 |
282,928 |
278,632 |
380,000 |
Question No. 305 answered with Question No. 293.