Pearse Doherty
Ceist:122 Deputy Pearse Doherty asked the Minister for Finance the current point of entry to the PAYE tax net; and if he plans to lower same. [24485/11]
Amharc ar fhreagraTuesday, 20 September 2011
Ceisteanna (94, 95, 96, 97, 98)
Freagraí scríofa
The entry point to taxation for PAYE income earners is determined by a number of factors such as the age of an individual, marital status and dependent children. On that basis, the entry point to income tax for the most common categories of PAYE income earners are set out in the following tables:
|
Category |
Entry Point to PAYE Taxation |
|
Single Individual |
€16,500 |
|
Married one-earner couple with no children |
€24,750 |
|
Married one-earner couple with children |
€28,800 |
|
Category |
Entry Point to PAYE Taxation |
|
Single Individual |
€18,000 |
|
Married one-earner couple (no children) |
€36,000 |
As the Deputy is aware, the Government has initiated a Comprehensive Review of Expenditure to provide the Government with a set of decision options to meet the overall fiscal consolidation objectives and re-align spending with the Programme for Government priorities.
When this review is complete, the Government will examine the findings and, based on these findings and consultation with the Troika, will introduce fiscally neutral changes to the detail of the EU/IMF Programme of Financial Support for Ireland while maintaining the overall commitment to fiscal consolidation.
Pearse Doherty
Ceist:123 Deputy Pearse Doherty asked the Minister for Finance his view on refundable tax credits; and if he will give an annual estimated cost to the Exchequer of providing refundable tax credits to those in receipt of wages less that €17,500 per annum. [24486/11]
Amharc ar fhreagraI am advised by the Revenue Commissioners that based on annual incomes below €17,500 per annum on Revenue income tax records, as returned by or on behalf of income earners for the income tax year 2009, the latest year for which the necessary detailed data is available, the cost to the Exchequer of making the main personal and PAYE tax credits refundable when they are unused by these income earners is estimated to be of the order of €1.4 billion per annum. This estimate relates only to the cost of extending refundable tax credits to all those on the Revenue's tax files. If a refundable tax credit system were to be introduced, one would have to consider those who are not on the tax files, for example, those who are of employable age but not working, including those on social welfare. If such categories were eligible this would increase the cost significantly.
The estimate of cost takes into account all income earners, both employees and self-employed, whose total gross income from all sources is below €17,500 per annum. This is composed of income from employment and self-employment as well as all other sources of tax liable income such as pensions, benefits, dividends and investments.
In addition to the issue of cost, there would be a range of other policy and practical issues arising in introducing such a system.
Anne Ferris
Ceist:124 Deputy Anne Ferris asked the Minister for Finance his views on whether members of the Craft Council of Ireland will avail of the reduction in the VAT rate for their labour intensive crafts; and if he will make a statement on the matter. [24513/11]
Amharc ar fhreagra
Seán Kyne
Ceist:140 Deputy Seán Kyne asked the Minister for Finance his plans to reduce the VAT applied on labour-intensive products produced by crafts-persons which would recognise the importance of such an indigenous, often rural based industry. [24977/11]
Amharc ar fhreagraI propose to take Questions Nos. 124 and 140 together.
The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. I understand that the major sectors within the Irish craft industry are pottery, glass, jewellery, textiles and furniture. Annex III does not provide for a reduced rate of VAT to be applied to these goods, which are consequentially subject to the standard VAT rate of 21%.
Brendan Griffin
Ceist:125 Deputy Brendan Griffin asked the Minister for Finance if he will guarantee that the Revenue Commissioner in all districts will return all Relevant Contract Tax Deductions, RCTD 35% on application for entitlements in the respective year; and if he will make a statement on the matter. [24634/11]
Amharc ar fhreagraI am advised by the Revenue Commissioners that Relevant Contracts Tax (RCT) is a withholding tax mechanism for contractors carrying out relevant operations in the construction, forestry and meat processing sectors. The governing legislation obliges a person (the principal contractor) to retain 35% of the amount payable to subcontractors in the absence of a Revenue authorisation (C2) and a related Payments Card. Where tax is deducted, the principal contractor gives the subcontractor a Form RCTDC, which the subcontractor uses to claim credit for, or repayment of, the tax withheld. A subcontractor makes a claim for repayment of RCT by submitting one or more Form(s) RCTDC in respect of an income tax month or any number of income tax months. As a withholding tax, the tax deducted by the principal contractor is available for offset against the subcontractor's tax liability, primarily Income Tax and Corporation Tax, but also against other taxes such as Value Added Tax and employers' PAYE/PRSI. Once these liabilities have been satisfied, any balance of tax in credit may be refunded to the subcontractor.