Dáil Éireann Debate, Tuesday - 27 July 2021
331. Deputy Ged Nash asked the Minister for Finance the tax reliefs exempted from the high-income individual restriction; the estimated additional yield if those reliefs were not exempted; and if he will make a statement on the matter. [39880/21]
View answerI am advised by Revenue that the list and estimated cost of the relevant reliefs that are subject to the High-Income Individuals’ Restriction (HIIR) for 2018 (the latest year for which data are available) can be found in the High Income Individuals’ Restriction Report which is available on the Revenue website.
As stated on page 6 of that report, normal business-related expenses, deductions for capital allowances on plant and machinery, business-related trading losses and losses from a rental activity that do not arise from the use of specified reliefs are not restricted. In addition, personal tax credits are not affected by the restriction.
I am advised by Revenue that it is not possible to assess the implications of the extension of the restriction to other reliefs, as some reliefs may not be fully reflected in tax returns filed by the relevant individuals. Also, the purpose of the HIIR is to limit certain specified reliefs so that the relevant cohort of high income taxpayers is paying a minimum effective rate of tax. The HIIR analysis published by Revenue indicates that this outcome is already being achieved.
