Dáil Éireann Debate, Wednesday - 13 July 2022
139. Deputy Ged Nash asked the Minister for Finance the tax reliefs exempted from the high-income individual restriction; the estimated additional yield if those reliefs were not exempted; and if he will make a statement on the matter. [38639/22]
Amharc ar fhreagraI am advised by Revenue that the list of the tax reliefs exempted from the High-Income Earner Restriction (HIER) and estimated cost of the relevant reliefs that are subject to the HIER for 2018 (the latest year for which data are available) can be found in the High Income Individuals’ Restriction Report which is available on the Revenue website at www.revenue.ie/en/corporate/documents/research/ror-2018-report.pdf.
As stated on page 6 of that report, normal business-related expenses, deductions for capital allowances on plant and machinery, business-related trading losses and losses from a rental activity that do not arise from the use of specified reliefs are not restricted. In addition, personal tax credits are not affected by the restriction.
I am advised by Revenue that it is not possible to assess the potential implications of the extension of the restriction to other reliefs, as some reliefs are not individually itemised in tax returns filed by relevant individuals.
Additionally, I would note that the purpose of the HIER is to limit certain specified reliefs so that the relevant cohort of high income taxpayers is paying a minimum effective rate of tax. The HIER analysis published by Revenue indicates that this outcome is already being achieved.
