Pearse Doherty
Question:111. Deputy Pearse Doherty asked the Minister for Finance his views on making it mandatory for high earners to file a tax return; and if he will make a statement on the matter. [35770/18]
View answerFriday, 7 September 2018
Questions (111)
Written answers
I am advised by Revenue that all taxpayers who are chargeable persons under the self-assessment rules in Part 41A of the Taxes Consolidation Act (TCA) 1997 must file an annual tax return and pay any resultant tax to Revenue.
PAYE taxpayers are not required to file a tax return except in the following circumstances:
1. Individuals who are subject to the high earner’s restriction set out in Chapter 2A of Part 15 of the TCA 1997 are treated as chargeable persons for any year in which that restriction applies. Consequently, such individuals are required to make a self-assessment tax return for the year in question. The high earner’s restriction effectively imposes a limit on the amount of certain tax reliefs that may be availed of by high income individuals. In general, the restriction applies where an individual has adjusted income of €125,000 or more in a tax year, but can apply at a lower level where the individual has ring-fenced income, for example, interest which is subject to Deposit Interest Retention Tax. The individuals concerned must also provide details of the restriction to Revenue on Form RR1.
2. Individuals (excluding certain company directors who are treated as chargeable persons and are required to file an annual self-assessment tax return) who have combined taxable profits from non-PAYE income of not more than €5,000 per annum and who elect to pay the tax due on such profits through the PAYE system. Where an election is made, the individual must complete a tax return for that tax year when requested to so by Revenue.
3. Individuals who are requested to do so by Revenue. Each year Revenue requires a return from a subset of PAYE taxpayers based on various criteria including income.
I am also advised that PAYE Modernisation will result in the real time reporting of income for all PAYE taxpayers. From 1 January 2019 all employers will be obliged to report to Revenue the PAYE income and the associated income tax, PRSI and USC deductions for their employees as they pay them.
I do not see that there is any need to change the current arrangements for the filing of tax returns.