Dáil Éireann Debate, Thursday - 21 July 2011
68 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the cost of income tax revenue foregone by granting relief of 75% to landlords for allowable mortgage interest relief as an expense against rental income for the tax year 2009 and at 100% for the tax years 2007 and 2008. [22016/11]
Amharc ar fhreagraAs the Deputy has noted the level at which interest repayments can be claimed against tax for residential rental properties was reduced from 100% to 75% in section 5 of the Finance Act 2009. I am informed by the Revenue Commissioners that based on personal income tax returns filed by non-PAYE taxpayers the amount of tax foregone by allowing a deduction for interest on borrowings to be offset against all rental income assessable under Case V, Schedule D is as set out in the following table:
|
Tax year |
Interest Relief (Rental) €m |
Rate |
|
2007 |
877 |
100% |
|
2008 |
1,150 |
100% |
|
2009 |
730 |
75% |
These estimates are based on assuming that tax relief was allowed at the top income tax rate of 41% and the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers.
The figures for 2009 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.
It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return form 12 is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return form 11. This return is the source of the figures provided in this reply.
69 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the cost of corporation tax revenue foregone by granting relief to property holding companies for allowable mortgage interest relief as an expense against rental income for the tax years 2007 to 2009. [22017/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that as the rental income of companies is returned as net of interest on borrowings the figures for interest are not separately distinguished in corporate tax returns. There is, therefore, no basis on which an estimate of the cost of corporation tax revenue forgone could be provided.
70 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the total cost effect/income tax foregone by granting the home carers’ tax credit for the years 2007 to 2010. [22018/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the most recent years for which final information is available on the cost to the Exchequer of the home carer tax credit is for the income tax years 2007 and 2008. The relevant figures are as follows:
|
Tax Year |
Estimated cost to the Exchequer €m |
|
2007 |
69 |
|
2008 |
80 |
In addition, provisional estimates, on a preliminary basis, of the cost to the Exchequer of the home carer's tax credit for the income tax years 2009, and 2010 are as follows:
|
Tax Year |
Estimated cost to the Exchequer €m |
|
2009 |
75 |
|
2010 |
71 |
The figures for 2009 to 2010 are estimates from the Revenue tax forecasting model using actual data for the year 2008, adjusted as necessary, for income and employment growth for the years in question and are therefore provisional and subject to revision. The figures are rounded to the nearest million as appropriate.
71 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the value of income tax foregone or deferred for share options under the deferred payment scheme available under S.128A. [22019/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the detailed information requested by the deputy regarding share options under the deferred payment scheme is not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records.
72 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the total value of share options exercised by persons here for the tax years 2007 to 2009 and the relevant taxable gains on same. [22020/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the gains associated with the tax payments made in 2007, 2008 and 2009, arising from the exercise of share options were €312 million, €239 million and €129 million respectively. Information on the total value of share options exercised is not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records.
73 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the cost effect/income tax foregone by the rent-a-room relief scheme for the tax years 2007 to 2009. [22021/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the most recent year for which the necessary detailed statistical information is available, in relation to the rent-a-room scheme, is the income tax year 2008. The estimated cost of the scheme to the Exchequer for that year was €5.6 million. The cost of the scheme for the 2007 tax year was €4.7 million.
74 Deputy Pearse Doherty asked the Minister for Finance if he will quantify the cost effect/income tax foregone by the interest relief claimed for acquiring an interest or share in certain companies or partnerships. [22022/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the most recent year for which final information is available on the cost to the Exchequer of income tax relief for interest relief claimed for acquiring an interest or share in certain companies or partnerships is the income tax year 2008. The cost to the Exchequer in that year is estimated at €48.5 million.
75 Deputy Pearse Doherty asked the Minister for Finance the potential for tax revenue saved by placing an earnings cap of €100,000 on pension contributions with relief only granted at 20%. [22024/11]
Amharc ar fhreagraI assume that the Deputy is referring to the current annual earnings cap of €115,000 which operates to limit the level of tax-relieved personal pension contributions in any one year. The annual earnings cap acts, in conjunction with age-related percentage limits of annual earnings, to put a ceiling on the annual amount of tax relief an individual taxpayer can obtain on pension contributions. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — retirement annuity contracts (RACs) and personal retirement savings accounts (PRSAs) — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers.
There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, the Revenue Commissioners inform me that the combined estimated full year yield to the Exchequer from reducing the current annual earnings cap of €115,000 to €100,000 and confining tax relief to the standard rate of 20% in respect of individual contributions to occupational pension schemes, RACs and PRSAs would be about €500 million.
The latest full historical data available in this regard is in respect of the tax year 2008.
