Dáil Éireann Debate, Thursday - 23 April 2009
93 Deputy Seán Sherlock asked the Minister for Finance if he plans to implement a double taxation treaty to allow for the taxing of visiting rock bands and performers in view of the fact that they are levied in every other country in the world and revenue is being lost as a result of the failure to implement this tax; and if he will make a statement on the matter. [15967/09]
Amharc ar fhreagraThe question of introducing a withholding tax regime on income earned in Ireland by foreign artists was examined in the late 1980's/ early 1990's by my Department and the Revenue Commissioners. However, because of the small prospective yield at the time, the capacity of such a regime to discourage artists visiting Ireland and the administrative burden associated with collecting a relatively small yield, it was decided not to proceed. I have asked that the matter be reviewed given developments since the last review.
I understand that while many countries have arrangements for the taxation of foreign artists it is not universal. For example I am informed that Denmark and the Netherlands do not have such arrangements.
94 Deputy Finian McGrath asked the Minister for Finance if he will support a matter (details supplied). [15982/09]
Amharc ar fhreagraThe 2009 annual income levy rates are set out in the following table as contained in the Financial Resolution, passed on Budget night.
|
Part of aggregate income |
Rate of income levy |
|
% |
|
|
The first €75,036 |
1.67 |
|
The next €25,064 |
3.00 |
|
The next €74,880 |
3.33 |
|
The next €75,140 |
4.67 |
|
The remainder |
5.00 |
For PAYE taxpayers whose income is spread evenly throughout the year this equates to the rates set out as follows.
|
From 1 January 2009 to 30 April 2009 |
|
|
% |
|
|
The first €100,100 |
1 |
|
The next €150,020 |
2 |
|
The remainder |
3 |
|
From 1 May 2009 to 31 December 2009 |
|
|
% |
|
|
The first €75,036 |
2 |
|
The next €99,944 |
4 |
|
The remainder |
6 |
The financial resolution providing for the levy changes contained an anti-avoidance measure, the composite rate structure, to ensure that all taxpayers are treated equally. The purpose of the composite rate was to prevent those with the ability to control the payment of their income manipulating their drawings from their business in such a way as to avoid payment of the increased levies. Therefore, the annual rates come into play to ensure they pay their fair share.
The position is that before the budget, some firms were being advised to bring forward salaries and other payments simply to avoid the impact of increases in income tax levies. The composite rate contained in the financial resolution prevents these manipulations and ensures fairness in the system.
