Pearse Doherty
Ceist:256. Deputy Pearse Doherty asked the Minister for Finance the estimated return to the Exchequer in a full year by increasing the rate of capital gains tax from 30% to 40%. [38289/12]
Amharc ar fhreagraTuesday, 18 September 2012
Ceisteanna (256)
Freagraí scríofa
I am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 30% to 40% could be in the region of €160 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and large increases in rates such as are contemplated in the question may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.