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Dáil Éireann Debate, Thursday - 30 July 2020

Thursday, 30 July 2020

Questions (327, 328)

Pearse Doherty

Question:

327. Deputy Pearse Doherty asked the Minister for Finance the number of individual earners who do not qualify for the stay and spend initiative on the grounds that they have neither income tax nor USC liabilities; and if he will make a statement on the matter. [20407/20]

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Pearse Doherty

Question:

328. Deputy Pearse Doherty asked the Minister for Finance the number of individual earners who have neither USC nor income tax liabilities (details supplied). Details; in similar format to that given in Tables 3 and 4 of Income Tax Strategy Group – 19/03 Paper, published July 2019 [20408/20]

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Written answers

I propose to take Questions Nos. 327 and 328 together.

 The tables referred to by the Deputy in question 328, which is regularly used in Tax Strategy Group paper on Income Tax (most recently in 2019), is based on data that is presently set out on page 3 of the Revenue Ready Reckoner at the following link:

https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx . 

Attention is drawn to the caveat at the beginning of this document that makes clear that the costings shown are based on revised tax forecasts, that they are tentative costings and likely to be revised as further information becomes available particularly in the current economic climate.

This source table is re-produced here as follows:

Ready Reckoner

 

No. of Tax payer Units**

% of

Income   Tax*

 

440,400

18

 

Standard Rate (20%)

1,120,700

45

 

Exempt

911,100

37

USC*

8% rate

185,200

7

 

4.5% rate

1,083,100

44

 

2% rate

488,300

20

 

Exempt

715,600

29

Paying   Neither Income Tax or USC

 

715,600

29

Total   Income Earners

 

2,472,200

 

*Shows the breakdown by the highest rate of Income Tax and USC paid by taxpayer unit.

** Married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit.

The figures in this table are subject to rounding to the nearest hundred.

 

In respect of question 349, based on the above data it is estimated that 715,600 taxpayer units will not have an income tax or USC liability in 2020 so it is possible that they may not be able to benefit from the Stay and Spend Incentive. However, I would highlight that this estimate is based on data that was published in May 2020 and is derived from Revenue’s tax modeller which is prospective in nature, based on the most recent tax return data (for 2017) modelled forward using the most up-to-date forecast data produced by the Department of Finance (April 2020).

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