Tax Yield.

Dáil Éireann Debate, Tuesday - 24 November 2009

Tuesday, 24 November 2009

Ceisteanna (134, 135, 136, 137, 138)

Ruairí Quinn

Ceist:

166 Deputy Ruairí Quinn asked the Minister for Finance the estimated yield in 2010 of a carbon tax imposed at a rate of €25 per tonne. [42942/09]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

As the Deputy will be aware the potential yield in 2010 of a carbon tax depends on a number of factors and assumptions including the coverage of the tax, the timing and phasing of its introduction, and the level of exemptions, if any, provided. These issues relate to a potential Budgetary measure. In that context I would point out that it is the usual practice for the Minister for Finance not to speculate or comment in advance of the Budget on what it will contain and I do not propose to deviate from that practice.

Ruairí Quinn

Ceist:

167 Deputy Ruairí Quinn asked the Minister for Finance the estimated yield in 2010 of a 1%, 2%, 3%, 4% or 5% increase in the rate of capital acquisitions tax. [42943/09]

Minister for Finance (Deputy Brian Lenihan)

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 1%, 2%, 3%, 4% or 5% could be in the region of €10 million, €20 million, €30 million, €40 million and €50 million respectively. However, it should be noted that this estimate is based upon an assumption that there would be no behavioural impact of such an increase, which could lead to a less than expected result from a change to the tax rate. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in theeconomy.

Jan O'Sullivan

Ceist:

168 Deputy Jan O’Sullivan asked the Minister for Finance the amount of revenue generated arising from memorandums of understanding (details supplied) with tobacco companies in 2007, 2008 and to date in 2009. [42946/09]

Charles Flanagan

Ceist:

184 Deputy Charles Flanagan asked the Minister for Finance the amount of revenue that has been generated arising from memorandums of understanding between his Department and tobacco companies in each of the years 2007, 2008 and to date for 2009. [43078/09]

Minister for Finance (Deputy Brian Lenihan)

I propose to take Questions Nos. 168 and 184 together.

I assume that the Deputy is referring to the Anti-Contraband and Anti-Counterfeit Agreements concluded between the European Community together with participating Member States and Philip Morris International (PMI) and Japan Tobacco International (JTI) on 9 July 2004 and 14 December 2007 respectively. These agreements provide a legal basis for co-operation between the European Anti Fraud Office, together with the Customs Services of the participating Member States and the tobacco manufacturers concerned in tackling the illicit trade in counterfeit and contraband cigarettes. This is implemented through a combination of sharing of information on counterfeit cigarettes and ensuring that legitimate product is not diverted into the illicit trade, through a combination of tracking and tracing consignments and carrying out due diligence checks on customers. The agreements also provide for both an upfront payment to be divided between the participating Member States and the European Commission and also payments in respect of certain qualifying seizures of cigarettes.

I am informed by the Revenue Commissioners that the payments received to date under these agreements are as follows:

2007 — No payments received.

2008 — €965,378.52 received on 5 September 2008 in respect of 2007 from JTI.

— €959,703.49 received on 24 December 2008 in respect of 2008 from JTI.

2009 — No payment received to date but payment is expected before the end of 2009 from JTI.

These payments are in respect of Ireland's portion of the phased payments due over 15 years under Article 8 of the JTI Agreement. Ireland is ineligible for similar payments from PMI because it did not accede to this Agreement until 19 April 2005.

No seizure payments, (i.e. payments in respect of seizures of genuine branded cigarettes of 50,000 cigarettes or more manufactured by the companies concerned that have not been released for consumption in the European Union) have been received from the companies concerned between 2007 and the present date. However one payment of €18,101.22 was received on 22 December 2006 in respect of a seizure of Philip Morris cigarettes made at New Ross, County Wexford on 6 December 2005. In addition to these agreements, Revenue also concluded a national Memorandum of Understanding with JTI on 4 November 2009 which provides for co-operation and exchange of relevant information. While no payments flow directly from this type of agreement, it is valuable in developing intelligence in the fight against tobacco smuggling.

Joe McHugh

Ceist:

169 Deputy Joe McHugh asked the Minister for Finance the Exchequer’s annual indirect taxation income on a county basis from 2005 to date in 2009 in tabular form; and if he will make a statement on the matter. [42948/09]

Minister for Finance (Deputy Brian Lenihan)

I am informed by the Revenue Commissioners that the exact information sought for indirect taxation on a county basis is not available. However, Revenue sheriffs, county registrars or their officers operate for the purposes of enforcement of tax debt within certain geographical boundaries known as a "bailiwick" which equates geographically with "county". Data on the net receipts of some taxes can be linked to bailiwicks to provide an estimated breakdown of receipts on a county basis.

The following table sets out the estimated breakdown of net receipts for VAT (Domestic) for the years 2005 to 2008 inclusive. Basic data is not recorded in such a manner as would enable a breakdown by county to be provided in respect of the yield from Customs, Excise and VAT at the point of Import. Corresponding figures for 2009 will not be available until some time after the end of the year.

Estimated breakdown of Vat (Domestic) collection by county for 2005-2008

County	2005	2006	2007	2008
	€m	€m	€m	€m
Carlow	66	77	87	75
Cavan	109	123	132	120
Clare	99	114	127	113
Donegal	131	147	161	146
Galway	333	374	395	343
Kerry	150	174	186	166
Kildare	349	415	434	407
Kilkenny	106	120	139	130
Laois	70	81	91	82
Leitrim	24	25	28	25
Limerick	284	301	309	286
Longford	34	39	41	34
Louth	237	247	246	213
Mayo	141	153	169	148
Meath	216	259	270	248
Monaghan	78	83	85	74
Offaly	73	84	98	84
Roscommon	58	65	72	69
Sligo	52	61	63	56
Tipperary	181	195	212	201
Waterford	133	143	146	131
Westmeath	108	124	150	122
Wexford	168	197	201	179
Wicklow	179	183	196	183
Dublin	6,146	6,675	7,141	6,713
Cork	850	931	1,080	1,066
Other/foreign	533	592	683	652
Totals	10,908	11,982	12,940	12,065

The liability of a trader to VAT is generally dealt with by reference to the location of the trader's registered office even though the economic activity may be carried on in another county.