Seán Fleming
Ceist:121. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the capital gains tax rate to 35%; and if he will make a statement on the matter. [49287/12]
Amharc ar fhreagraThursday, 8 November 2012
Ceisteanna (121)
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 35% could be in the region of €80 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates 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.