Dáil Éireann Debate, Wednesday - 5 July 2006
197 Ms Burton asked the Minister for Finance further to Parliamentary Question No. 113 of 8 June 2006, if he will provide details to support the information in view of the fact that the average rate of tax paid by high wealth individuals increased from 24.3 percent in 2002 to 30.2 percent in 2003; and if he will make a statement on the matter. [26889/06]
Amharc ar fhreagraI am not clear what additional details the Deputy requires in relation to the information provided in my reply to question no. 113 of 8th June 2006.
However, I am advised by the Revenue Commissioners that the average rate of tax paid by high wealth individuals in 2002 and 2003 was arrived at by expressing the aggregate tax paid as a percentage of the aggregate income of the individuals concerned.
As explained in my earlier reply the aggregate income figures used is the figure before the deduction of certain reliefs, such as capital allowances and trading losses, but it does not include certain income such as artists' exempt income and patent income. It was not possible to include deposit interest retention tax ("DIRT") as tax paid in the computation of average rate for the years 2002 and 2003 whereas the related income has been included.
199 Ms Burton asked the Minister for Finance if, in respect of the Revenue Commissioners study of the effective tax rates of the top 400 earners for the tax year 2002 recently published, the effect the Christina O case had on the liabilities of the individuals concerned; and if he will make a statement on the matter. [26891/06]
Amharc ar fhreagraI am advised by the Revenue Commissioners that they do not comment on the tax affairs of specific taxpayers. In relation to the methodology used for the top 400 study, I am advised that in calculating the effective rate used in the study, the income figure used was the figure before deducting specific reliefs, such as capital allowances or trading losses. Speaking generally, ships or yachts which are used for the purposes of transporting either passengers or freight do qualify for capital allowances in the same way as other plant and machinery used for the purpose of a business.
