asked the Minister for Finance if he will state in respect of each year from 1955 to 1982, inclusive; (a) the tax threshold as a percentage of average male industrial earnings, for a married man with two children (wife not working); (b) the tax threshold as a percentage of average male industrial earnings for a single person; (c) the first rate of tax payable; (d) the standard rate of tax payable; (e) the standard rate of income tax; (f) the effective rate of income tax; (g) the average amount of income tax paid by the average PAYE worker; and (h) the number of persons currently subject to PAYE.
Written Answers. - Taxation Statistics.
401.
The information requested is given in the following table.
|
(a) |
(b) |
(g) |
(h) |
||||
|
Year |
(c) |
(d)/(e) |
(f) |
||||
|
% |
% |
£ |
000's |
||||
|
1955/56 |
166.7 |
62.5 |
3s.0d. (15%) |
7s.6d. (37.5%) |
2s.11d. (14.58%) |
43 |
138 |
|
1956/57 |
161.5 |
60.6 |
3s.0d. (15%) |
7s.6d. (37.5%) |
2s.9d. (13.75%) |
45 |
148 |
|
1957/58 |
156.7 |
59.7 |
3s.0d. (15%) |
7s.6d. (37.5%) |
2s.9d. (13.75%) |
46 |
158 |
|
1958/59 |
148.5 |
57.9 |
3s.0d. (15%) |
7s.6d. (37.5%) |
2s.7d. (12.92%) |
44 |
170 |
|
1959/60 |
143.2 |
56.6 |
2s.9d. (13.75%) |
7s.0d. (35%) |
2s.6d. (12.5%) |
44 |
180 |
|
1960/61 |
165.8 |
71.0 |
7s.0d. (35%) |
7s.0d. (35%) |
2s.6d. (12.5%) |
34 |
180 |
|
1961/62 |
154.3 |
67.7 |
6s.4d. (31.67%) |
6s.4d. (31.67%) |
2s.8d. (13.33%) |
52 |
210 |
|
1962/63 |
140.9 |
64.0 |
6s.4d. (31.67%) |
6s.4d. (31.67%) |
2s.8d. (13.33%) |
55 |
250 |
|
1963/64 |
134.8 |
62.4 |
6s.4d. (31.67%) |
6s.4d. (31.67%) |
2s.9d. (13.75%) |
59 |
275 |
|
1964/65 |
121.8 |
58.8 |
6s.4d. (31.67%) |
6s.4d. (31.67%) |
2s.7d. (12.92%) |
64 |
350 |
|
1965/66 |
117.2 |
57.4 |
6s.4d. (31.67%) |
6s.4d. (31.67%) |
2s.8d. (13.33%) |
67 |
400 |
|
1966/67 |
105.9 |
54.4 |
7s.0d. (35%) |
7s.0d. (35%) |
2s.10d. (14.17%) |
70 |
475 |
|
1967/68 |
106.2 |
53.1 |
7s.0d. (35%) |
7s.0d. (35%) |
2s.9d. (13.75%) |
75 |
530 |
|
1968/69 |
96.8 |
50.3 |
7s.0d. (35%) |
7s.0d. (35%) |
2s.9d. (13.75%) |
79 |
585 |
|
1969/70 |
88.6 |
47.8 |
7s.0d. (35%) |
7s.0d. (35%) |
2s.10d. (14.17%) |
95 |
605 |
|
1970/71 |
80.1 |
44.8 |
4s.8d. (23.33%) |
7s.0d. (35%) |
3s.0d. (15%) |
121 |
605 |
|
1971/72 |
73.2 |
42.3 |
35% |
35% |
15.88% |
152 |
650 |
|
1972/73 |
73.7 |
43.1 |
35% |
35% |
15.35% |
192 |
650 |
|
1973/74 |
66.2 |
40.3 |
35% |
35% |
16.99% |
254 |
670 |
|
1974/75 (1974) |
51.9 |
21.6 |
26% |
35% |
17.89% |
315 |
670 |
|
1975/76 (1975) |
47.1 |
19.6 |
26% |
38.5% |
19.95% |
404 |
680 |
|
1976/77 (1976) |
43.0 |
17.9 |
26% |
38.5% |
21.47% |
549 |
680 |
|
1977/78 (1977) |
39.5 |
16.6 |
20% |
35% |
22.45% |
661 |
673 |
|
1978/79 (1978) |
48.5 |
19.0 |
20% |
35% |
22.48% |
749 |
699 |
|
1979/80 (1979) |
53.9 |
24.5 |
25% |
35% |
24.52% |
915 |
708 |
|
1980/81 (1980) |
49.4 |
24.8 |
25% |
35% |
N/A |
1,130 |
777 |
|
1981/82 (1981) |
45.5 |
24.2 |
25% |
35% |
N/A |
1,398* |
782* |
|
1982/83 (1982) |
50.2+ |
29.5+ |
25% |
35% |
N/A |
1,603* |
792* |
+These figures are based on a provisional estimate of £8,000 per annum as the average male industrial wage.
*These figures are provisional.
General Note
The figures in columns (a) to (h) inclusive relate to the tax year specified except in the case of column (g) in relation to which, for the years subsequent to 1973/74, the figures are based on the PAYE net receipt in the financial year indicated in brackets.
Notes on table
Columns (a) and (b):
(i) Personal Allowances:
From 1955/56 to 1973/74 inclusive, the allowances assumed for the married man were the married allowance, child allowance for two children not over 11 years of age and earned income relief. For the same period the allowances assumed for the single person were the single allowance plus earned income relief. Earned income relief was abolished with effect from 6 April 1974.
From 1979/80 onwards the single, married and child allowances have been augmented by the addition of the Special Employment Deduction (PAYE allowance).
For 1982/83 account has been taken of the PRSI allowance of £312. As regards column (a), for each of the years 1955-56 to 1967-68, the effective exemption limits (married and child allowances together with related earned income relief) exceeded the average industrial earnings for male workers. This is reflected in the figures for those years in that column.
(ii)Average male industrial earnings:
Up to and including 1968/69 average industrial earnings relate to males of 18 years of age or over employed in transportable goods industries and are based on the amounts earned in a week in October of each year. Owing to a change in the method of collection and classification of the amounts of such earnings, the earnings from 1969/70 onwards relate to a male of 21 years of age or over and are based on quarterly figures which have been averaged for each tax year shown in the table.
Up to and including 1973/74 the earnings figures are derived from the annual censuses of industrial production. For subsequent years, the earnings are based on the new NACE system of industrial classification (General Classification of Economic Activities within the European Communities).
Column (d)/(e):
The 38.5 per cent standard rate of income tax which is shown for 1975/76 and 1976/77 is comprised of the standard rate of 35 per cent plus the temporary 10 per cent surcharge which applied to all income tax rates for those years except the first rate. There is no apparent difference between the questions at (d) and (e). Consequently, the relevant information is given under one heading, (d)/(e), in the table.
Column (f):
Effective rate of income tax:
This is the average effective rate of tax levied on each pound of Actual Income as defined in the Revenue Commissioners' Annual Reports.
The latest available information is that contained in Table 76 of the report for year ended 31 December 1980 copies of which are in the library.
Column (g):
(i) PAYE was introduced with effect from October 1960. It applied at that time to all employees except those for whom a statutory tax deduction scheme was already in operation (public servants, officials of Bank of Ireland, etc.) PAYE was extended to all employees as from the year 1976-77. For years prior to 1976-77 tax payments in respect of all persons (including public servants) taxed under Schedule E have been taken into account.
A breakdown of the net receipt of income tax attributable to Schedule E is not available for years up to and including 1962-63. For these years the estimated net produce of that tax has been used. Net produce of tax is the estimated ultimate yield from the tax assessed in the year, whether actually collected in that year or later, after deducting all discharges and remissions and setting off all repayments. For years between 1963-64 and 1976 it is possible to make a reasonably reliable estimate of the net receipt of Schedule E tax using actual figures of tax payments under PAYE. The net receipt figures for PAYE for years subsequent to 1976 are separately distinguished from other tax receipts in the collection process.
The amounts shown in column are obtained by dividing the net receipt or net produce, as the case may be, by the number of persons shown for the corresponding tax year in column (h).
(ii) The reduction in income tax paid in 1960/61 is attributable to the abatement estimated at over £4 million given under section 14 of the Finance (No. 2) Act, 1959.
Column (h):
The numbers shown in this column are the numbers of taxpayers estimated to be effectively liable to tax under Schedule E up to and including the year 1975-76 and those liable under PAYE in subsequent tax years.
402.
asked the Minister for Finance if he will state in respect of each year from 1965 to 1982, inclusive: (a) the proportion of total tax represented by income tax; (b) the proportion of total tax represented by indirect tax (e.g. VAT, customs and excise); (c) the proportion of total tax represented by capital taxes; (d) the proportion of total taxes represented by taxes on company profits; (e) the proportion of total taxes represented by taxes on inheritances and gifts (both estate etc. duties and capital acquisitions tax where applicable); and (f) the amount of taxes paid on inheritances and gifts (both estate etc. duties and capital acquisitions tax where applicable) in (1) current and (2) constant prices.
The information requested by the Deputy is provided in the following tables:
TABLE 1
Percentage of Total Taxation
|
(a) |
(b) |
(c) |
(d) |
(e) |
|
|
Income Tax |
Indirect Taxes |
Capital Taxes |
Taxes on Company Profits |
Taxes on Inheritances and Gifts |
|
|
1965-66 |
21.7 |
51.7 |
3.3 |
3.7 |
1.8 |
|
1966-67 |
22.2 |
52.2 |
2.8 |
3.3 |
1.6 |
|
1967-68 |
21.8 |
52.0 |
3.2 |
3.8 |
1.9 |
|
1968-69 |
22.0 |
51.4 |
3.5 |
3.5 |
2.1 |
|
1969-70 |
21.5 |
52.9 |
3.0 |
3.4 |
1.8 |
|
1970-71 |
22.8 |
51.8 |
2.3 |
4.0 |
1.2 |
|
1971-72 |
25.2 |
48.9 |
2.8 |
3.5 |
1.5 |
|
1972-73 |
24.8 |
48.6 |
3.5 |
3.0 |
1.9 |
|
1973-74 |
26.2 |
49.3 |
3.3 |
2.7 |
1.7 |
|
1974 |
26.6 |
47.4 |
3.0 |
2.7 |
1.7 |
|
1975 |
27.6 |
46.3 |
2.5 |
2.2 |
1.1 |
|
1976 |
28.2 |
47.6 |
2.0 |
1.8 |
0.6 |
|
1977 |
27.4 |
46.5 |
2.2 |
4.1 |
0.5 |
|
1978 |
28.2 |
46.3 |
2.3 |
5.0 |
0.5 |
|
1979 |
29.5 |
44.3 |
2.4 |
5.3 |
0.4 |
|
1980 |
31.6 |
43.3 |
2.1 |
4.4 |
0.3 |
|
1981* |
31.0 |
44.4 |
2.1 |
5.0 |
0.3 |
|
1982* |
29.6 |
45.0 |
2.2 |
4.7 |
0.3 |
*Provisional Estimates.
Notes:
(1) "Total Taxation" includes taxes on income and profits, taxes on goods and services, taxes on capital and property (including rates), social security contributions and payroll taxes.
(2) "Income Tax" comprises income tax and sur tax.
(3) "Indirect Taxes" comprise customs and excise duties, turnover tax, wholesale tax, VAT, motor vehicle duties, EEC taxes and agricultural levies.
(4) "Capital Taxes" comprise wealth tax, estate etc. duties, capital gains tax, capital acquisitions tax and stamp duties (including bank and insurance levies).
(5) "Taxes on Company Profits" comprise corporation profits tax and corporation tax.
(6) "Taxes on inheritances and gifts" comprise estate etc. duties and capital acquisitions tax.
Source: "National Income and Expenditure".
TABLE 2
(f) Amount of taxes paid on inheritances and gifts
|
(£m) |
(£m) |
|
|
Current Prices |
Constant Prices |
|
|
1965-66 |
4.7 |
4.7 |
|
1966-67 |
4.6 |
4.5 |
|
1967-68 |
6.0 |
5.7 |
|
1968-69 |
7.6 |
6.8 |
|
1969-70 |
7.7 |
6.4 |
|
1970-71 |
6.3 |
4.9 |
|
1971-72 |
9.0 |
6.4 |
|
1972-73 |
13.2 |
8.6 |
|
1973-74 |
14.0 |
8.2 |
|
1974 |
15.8 |
7.9 |
|
1975 |
13.6 |
5.6 |
|
1976 |
9.2 |
3.2 |
|
1977 |
9.6 |
3.0 |
|
1978 |
10.9 |
3.1 |
|
1979 |
10.8 |
2.8 |
|
1980 |
11.0 |
2.4 |
|
1981* |
11.3 |
2.0 |
|
1982* |
13.5 |
2.1 |
*Provisional Estimates.
Note: "Taxes on inheritances and gifts" comprise estate etc. duties and capital acquisitions tax.
Source: Current prices —"National Income and Expenditure". Constant prices — Data in current prices deflated by CPI.
403.
asked the Minister for Finance how Ireland compares with other EEC countries on the amount of taxation paid as a percentage of gross national product for 1973, 1978, 1980, 1981 and 1982.
The information requested by the Deputy is provided in the following table:
Total Tax Revenue as a percentage of Gross Domestic Product
|
Country |
1973 |
1978 |
1980 |
1981* |
1982† |
|
Ireland |
31.2 |
32.9 |
36.7 |
38.3 |
N.A. |
|
UK |
31.9 |
33.8 |
36.1 |
36.8 |
N.A. |
|
France |
35.7 |
39.5 |
42.6 |
42.9 |
N.A. |
|
Germany |
36.3 |
37.7 |
37.4 |
37.2 |
N.A. |
|
Italy |
26.3 |
31.3 |
32.4 |
N.A. |
N.A. |
|
Netherlands |
43.7 |
44.6 |
46.2 |
45.8 |
N.A. |
|
Belgium |
38.0 |
45.0 |
44.7 |
N.A. |
N.A. |
|
Luxembourg |
35.2 |
49.1 |
45.8 |
48.0 |
N.A. |
|
Denmark |
42.4 |
43.4 |
45.7 |
44.9 |
N.A. |
|
Greece |
23.2 |
27.9 |
26.5 |
N.A. |
N.A. |
*Provisional estimates.
†Comparable figure not yet available.
Notes:
(1) Statistics on total tax revenue as a proportion of Gross National Product are not available in the source material and so total tax revenue as a percentage of Gross Domestic Product has been used instead.
(2) Total tax revenue includes taxes on income and profits, taxes on goods and services, taxes on capital and property (including rates), social security contributions and payroll taxes.
Source: Revenue Statistics of OECD Member Countries 1965-1981.
404.
asked the Minister for Finance how Ireland compares with other EEC countries on the proportion of tax paid in (a) income, (b) indirect and (c) capital taxes in each of the last nine years.
The information requested by the Deputy is provided in the following tables:
TABLE 1
Income Tax as a percentage of Total Taxation 1974-1982
|
Country |
1974 |
1975 |
1976 |
1977 |
1978 |
1979 |
1980 |
1981† |
1982† |
|
Ireland |
22.5 |
25.2 |
25.8 |
27.6 |
28.6 |
29.9 |
32.0 |
31.4 |
N.A. |
|
U.K. |
33.4 |
38.2 |
38.2 |
35.1 |
32.9 |
31.4 |
30.0 |
N.A. |
N.A. |
|
France |
11.7 |
12.2 |
12.7 |
13.2 |
13.1 |
12.5 |
12.9 |
N.A. |
N.A. |
|
Germany |
31.8 |
30.0 |
30.2 |
31.1 |
29.9 |
29.0 |
29.9 |
N.A. |
N.A. |
|
Italy |
15.6 |
15.2 |
17.7 |
20.2 |
21.2 |
22.9 |
24.7 |
N.A. |
N.A. |
|
Netherlands |
27.6 |
27.1 |
27.0 |
26.4 |
26.4 |
26.6 |
26.3 |
N.A. |
N.A. |
|
Belgium |
29.4 |
31.9 |
31.4 |
33.2 |
35.0 |
35.4 |
35.3 |
N.A. |
N.A. |
|
Luxembourg |
26.1 |
27.5 |
25.2 |
26.4 |
26.5 |
27.3 |
27.4 |
N.A. |
N.A. |
|
Denmark |
57.6 |
55.9 |
53.7 |
52.0 |
51.2 |
50.6 |
51.4 |
N.A. |
N.A. |
|
Greece |
11.8 |
9.2 |
9.1 |
10.4 |
10.6 |
11.9 |
13.9 |
N.A. |
N.A. |
†Comparable figures for 1981 (except for Ireland) and for 1982 are not yet available.
Note: (1) ‘Total Taxation' includes taxes on income and profits, taxes on goods and services, taxes on capital and property (including rates), social security contributions and payroll taxes.
(2) ‘Income tax' includes capital gains tax because the two taxes are grouped together under income tax in the source material and because some EEC countries tax capital gains under the income tax code.
Source: Revenue Statistics of OECD Member Countries 1965-1981.
TABLE 2
Indirect Taxes as a percentage of Total Taxation 1974-1982.
|
Country |
1974 |
1975 |
1976 |
1977 |
1978 |
1979 |
1980 |
1981* |
1982† |
|
Ireland |
47.6 |
46.5 |
47.7 |
46.7 |
46.5 |
44.1 |
43.6 |
44.7 |
N.A. |
|
U.K. |
27.1 |
25.4 |
25.8 |
26.2 |
26.6 |
27.0 |
28.8 |
27.5 |
N.A. |
|
France |
35.2 |
32.9 |
32.4 |
30.5 |
31.2 |
31.2 |
30.0 |
29.7 |
N.A. |
|
Germany |
26.6 |
26.8 |
25.8 |
24.9 |
26.1 |
26.9 |
27.0 |
27.1 |
N.A. |
|
Italy |
33.5 |
29.0 |
30.2 |
30.0 |
27.2 |
27.2 |
27.0 |
N.A. |
N.A. |
|
Netherlands |
23.8 |
23.9 |
25.0 |
26.0 |
25.6 |
25.1 |
24.8 |
24.2 |
N.A. |
|
Belgium |
28.7 |
26.3 |
27.6 |
26.9 |
26.3 |
26.0 |
25.6 |
N.A. |
N.A. |
|
Luxembourg |
18.4 |
20.9 |
19.8 |
18.4 |
17.6 |
18.1 |
19.5 |
20.8 |
N.A. |
|
Denmark |
31.9 |
33.6 |
35.6 |
37.6 |
38.2 |
38.8 |
37.3 |
37.2 |
N.A. |
|
Greece |
45.2 |
48.3 |
44.2 |
45.3 |
45.0 |
45.1 |
44.2 |
N.A. |
N.A. |
*Provisional estimates.
†Comparable figures for 1982 not yet available.
Note: (1) ‘Total Taxation' is defined in the Note to Table 1.
(2) The OECD category of ‘indirect taxes' includes VAT, customs and excise duties, EEC taxes, agricultural levies and motor vehicle duties.
Source: Revenue Statistics of OECD Member Countries 1965-1981.
TABLE 3
Capital Taxes as a percentage of Total Taxation 1974-1982
|
Country |
1974 |
1975 |
1976 |
1977 |
1978 |
1979 |
1980 |
1981* |
1982† |
|
Ireland |
11.2 |
9.6 |
8.8 |
8.0 |
6.1 |
6.0 |
5.2 |
4.7 |
N.A. |
|
U.K. |
12.6 |
12.7 |
12.1 |
12.0 |
12.0 |
12.1 |
12.1 |
13.3 |
N.A. |
|
France |
2.3 |
3.4 |
3.7 |
3.4 |
3.4 |
3.4 |
3.6 |
3.7 |
N.A. |
|
Germany |
2.9 |
3.1 |
3.3 |
3.2 |
3.0 |
2.7 |
2.6 |
2.6 |
N.A. |
|
Italy |
4.2 |
3.6 |
3.6 |
3.7 |
3.8 |
4.2 |
4.3 |
N.A. |
N.A. |
|
Netherlands |
3.0 |
2.6 |
2.9 |
3.5 |
4.1 |
4.1 |
3.9 |
3.7 |
N.A. |
|
Belgium |
2.6 |
2.4 |
2.5 |
2.6 |
2.7 |
2.8 |
2.6 |
N.A. |
N.A. |
|
Luxembourg |
5.8 |
5.0 |
5.3 |
5.3 |
5.2 |
5.8 |
5.7 |
5.7 |
N.A. |
|
Denmark |
5.8 |
5.9 |
5.4 |
5.8 |
6.1 |
5.9 |
6.2 |
5.1 |
N.A. |
|
Greece |
8.8 |
10.0 |
9.6 |
10.0 |
9.7 |
7.7 |
7.7 |
N.A. |
N.A. |
*Provisional estimates.
†Comparable figures for 1982 not yet available.
Note: (1) ‘Total Taxation' is defined in the Note to Table 1.
(2) The capital taxes category shown in this table conforms to the OECD category of ‘taxes on property' which includes rates, wealth tax, estate etc. duties, capital acquisitions tax and stamp duties other than companies capital duty. (Capital gains tax is included in the income tax category — see Table 1).
Source: Revenue Statistics of OECD Member Countries 1965-1981.
405.
asked the Minister for Finance (a) the number of farmers liable to income tax in the current tax year; (b) their average payment of income tax in 1981/82; and (c) the number of farmers who actually paid income tax in the last year for which data is available.
The following is the information requested:— (a) 43,700; (b) £549 (for 1982); (c) Not available.
Notes: (a) The number of farmers assessed to tax on their farming profits in the current income tax year, 1982/83, comprises some 35,800 fulltime farmers together with a further 7,900 (approximately) farmers who or whose spouses carry on another trade or business. (b) It is estimated that the receipt from farm income taxation in 1982 amounted to £24 million. This sum divided by the number of farmers assessed (43,700) gives the average payment quoted in the reply. Income tax on farming profits is collected with Schedule D tax generally and because of this cannot be separately distinguished. Accordingly the figure of £24 million is an estimate. Statistics of revenue receipts are, in general, prepared on a calendar (financial) year basis and it is for that reason that the 1982 estimate of receipts is used in calculating the figure at (b) in the reply. (c) Revenue records do not distinguish between liable and non-liable cases and therefore it is not possible to indicate how many farmers actually paid income tax without examining each individual case assessed. Such an examination — which would involve more than 43,000 cases — could not be carried out without the expenditure of undue time and resources.