Eamon Gilmore
Ceist:48 Mr. Gilmore asked the Minister for Finance if he will give the average amount of tax paid by a PAYE employee, a self employed person and a farmer over each of the past five years. [27996/00]
Written Answers. - Tax Yield.
Following is the information requested:
Average income tax payments 1995-to-1999 (estimated)
|
Average tax payment made by |
|||||
|
(a) |
(b) |
(c) |
(d) |
||
|
PAYE |
PAYE |
Farmers |
Other Self-employed |
||
|
£ |
£ |
£ |
£ |
||
|
1995 |
3,980 |
3,048 |
932 |
3,617 |
|
|
1996 |
4,242 |
3,226 |
1,009 |
3,898 |
|
|
1997* |
4,487 |
3,456 |
1,089 |
4,647 |
|
|
1998* |
4,685 |
3,614 |
985 |
5,066 |
|
|
1999* |
5,289 |
3,825 |
1,067 |
5,637 |
*Provisional – subject to revision.
The amounts paid by each sector must be seen in the context of the relative numbers of taxpayers in the PAYE and self-employed, including farming, sectors.
Notes on table(a), (b) PAYE figures:
(i) Income tax collected through the PAYE mechanism covers more than income tax on ordinary wages and salaries. It includes tax paid by directors of close companies who are akin to the self-employed as well as tax on "other income" of employees such as rent and other investment income. It also includes the tax paid under PAYE on the income from employment of farmers and other self-employed individuals.
(ii) The average tax payment for each year in column (a) is obtained by dividing the net receipt of PAYE tax in each calendar year by the number of taxpaying units effectively liable to tax in the income tax year in which the calendar year ends e.g. the 1995 net receipt is divided by the number liable to tax in 1995-96. This numberexcludes income earners on the PAYE tax record who are exempt from tax.
The average tax payment for each year in column (b) is obtained by dividing the net receipt of PAYE tax in each calendar year by the total number of income earners on the PAYE tax recordincluding those who are exempt from tax.
(c) Farming figures:
(i) In calculating the figures in this column the estimated net receipt of income tax paid by full-time farmers has been divided by the number of full-time farming tax units assessed to tax for the year of assessment in which the calendar year ends e.g. the 1995 receipt is divided by the number assessed for the year 1995-96. These numbersexclude cases who are not required to file annual tax returns and whose position is reviewed periodically because their incomes are clearly too low to attract a tax liability on an individual basis.
(ii) The figures for averages do not take into account the tax attributable to the farming profits of farmers who, or whose spouses, carry on another trade or profession. Farm tax represents a fraction of their overall tax liability and the emerging average farm tax payments could not be regarded as representative of the normal average tax yield from the farming sector.
(iii) Income tax on farming profits is collected with Schedule D tax generally and because of this it cannot be precisely distinguished. Accordingly, the figures shown for tax payments by farmers are estimated.
(d) Other Self-employed figures:
(i) The figures contained in this column are obtained by dividing the estimated net receipt of income tax in each calendar year from tax units whose main source of income is from self-employment, other than full-time farming, by the estimated number of those units assessed to tax in the year of assessment in which the calendar year ends as explained in note (i) for column (c).
These numbersexclude cases who are not required to file annual tax returns and whose position is reviewed periodically because their incomes are clearly too low to attract a tax liability on an individual basis.
General Notes(i) A married couple who has elected or has been deemed to have elected to have the income of both spouses assessed on the husband is counted as one tax unit.
(ii) Some figures in the columns differ from those given previously. This due to more accurate information becoming available in the meantime.
(iii) Receipts of deposit interest retention tax and dividend withholding tax are not included in the calculations. Basic data are not available which would enable the amounts of these taxes referable to interest paid or credited to particular classes of taxpayers to be ascertained.