Dáil Éireann Debate, Tuesday - 18 September 2012
257. Deputy Pearse Doherty asked the Minister for Finance the estimated return to the Exchequer in a full year from raising the rate of capital acquisitions tax from 30% to 40% and reducing the thresholds by 25%. [38290/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 10% to 40 %, based on the expected outturn in 2012, could be in the region of €100 million, assuming no change in the existing thresholds. The additional full year yield from existing taxpayers from reducing the existing thresholds by 25% and applying the proposed rate of 40% to the additional amounts thus brought into charge is estimated at €50 million.
Revenue do not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net.
These estimates are based on transactions recorded in 2010, the latest year for which the necessary detailed information is available. It should be noted that these estimates are based upon an assumption that there would be no behavioural impact of these changes, which could lead to a less than expected impact on Exchequer yield. In addition, the realization 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 the economy.
