Dáil Éireann - Volume 446 - 02 November, 1994

Written Answers. - Taxation Statistics.

74. Mr. M. McDowell asked the Minister for Finance the estimated tax foregone on an annual basis in relation to special investments policies, special investment schemes and special portfolio investment accounts. [2561/94]

Minister for Finance (Mr. B. Ahern): I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested by the Deputy to be provided.

75. Mr. M. McDowell asked the Minister for Finance, in respect of VAT, the total estimated annual yield for the year 1994 to 1995 at 10 per cent, 12.5 per cent and 21 per cent. [2562/94]

Minister for Finance (Mr. B. Ahern): The latest information available relates to the calendar year 1994 and the estimated yields are £682 million at 12.5 per cent and £1,870 million at 12.5 per cent. The 10 per cent rate of VAT applies [1508] only to new homes, tourist accommodation and vehicle hire, which were contracted for prior to 25 February 1993. Consequently, the yield from the 10 per cent rate of tax would be negligible.

76. Mr. M. McDowell asked the Minister for Finance the full year cost to the Exchequer at 1994 and 1995 tax rates of mortgage interest relief, health insurance relief, artists exemption, relief on patent royalties, covenanted income relief, business expansion scheme relief, holiday cottages allowances and relief in relation to approved buildings. [2564/94]

Minister for Finance (Mr. B. Ahern): The following table sets out the information requested in so far as it is available:

Allowance/Relief

Estimated cost to the Exchequer (for 1994/95 except where indicated)

£m

Loan Interest

141.0

Medical Insurance

66.8

Artists Exemption

1.1 (91/92)

Patent Royalties

Not available

Covenants

41.3

Business Expansion Scheme

12.1 (93/94)

Holidays cottages

Not available

Approved buildings (heritage houses)

0.3 (93/94)

These figures are provisional and are likely to be revised.

77. Mr. M. McDowell asked the Minister for Finance the full year yield to the Exchequer at 1994 to 1995 tax rates of benefit-in-kind taxation. [2565/94]

Minister for Finance (Mr. B. Ahern): It is estimated that the overall yield from the taxation of benefits-in-kind in the tax year 1994-95 is of the order of £67 million.

78. Mr. M. McDowell asked the Minister for Finance the estimated yield in [1509] the years 1994 to 1995 of income tax under schedule E and under schedule D cases I and II, case III, case IV and case V. [2566/94]

Minister for Finance (Mr. B. Ahern): The relevant information available is the budget estimate of the yield for income tax in respect of the calendar year 1994. A breakdown of the constituents of that estimates is as follows:

Budget estimate of Income Tax yield in 1994

Heading

Amount

£m

PAYE(1)

3,202

Deposit interest retention tax(2)

120

Self-employed (including farmers

and other non-PAYE(3)

475

Total

3,797

Notes on table

(1) The figure for PAYE covers more than income tax on ordinary wages and salaries. It includes tax paid by directors of close companies who are akin to the self-employed as well as tax on “other income” of employees such as rent and other investment income. It also includes the tax paid under PAYE on the income from employment of self-employed individuals, including farmers.

(2) Basic data are not available which would enable the amounts of deposit interest retention tax referable to interest paid or credited to particular classes of taxpayers to be ascertained.

(3) This heading includes tax paid on income from trades and professions — including farming — together with tax paid on other income such as rent and other investment income. The figures also include relatively small amounts of tax resulting from direct assessments under Schedule E on employees. This tax is collected with tax from the self-employed and is not separately identified. It also includes withholding tax on professional fees.

The figures also take into account tax repayments made to exempt individuals and bodies, such as charities and pension funds, in respect of tax deducted at source, such as income paid under covenants, or of tax credits attaching to company distributions.

Figures of tax attributable to income assessed under the various case headings of Schedule D are included under the appropriate headings in the table. Statistics are not available which would [1510] enable these figures to be separately identified.

The estimated additional yield to income tax in 1994 under the tax amnesty is not included in the figures supplied. The tax amnesty is a separate category in the budget tables and it accounted for an estimated yield of £242 million in the budget arithmetic.

In considering the table, it should be borne in mind that the PAYE sector accounts for the vast majority of taxpayers.

79. Mr. M. McDowell asked the Minister for Finance the average rate of tax or the proportion of gross income taken by taxation for a single person, married couples and widowed persons in the year 1994 to 1995. [2567/94]

Minister for Finance (Mr. B. Ahern): The information requested by the Deputy can be derived from the statistics contained in table 37 of the statistical report of the Revenue Commissioners for 1992, which relate to the income tax year 1990-91.

The most recent year for which the corresponding detailed information is available is 1991-92. In that year, the average rates of income tax by reference to gross income for single, married and widowed persons were as follows:

Tax as % of gross income

%

Single:

21.9

Married:

21.1

Widowed:

17.9

80. Mr. M. McDowell asked the Minister for Finance, in respect of the tax year 1994 to 1995, the total amount of personal income which was exempt, the subject of allowances and relief, taxed at the rate of 27 per cent and taxed at the rate of 48 per cent [2573/94]

[1511] Minister for Finance (Mr. B. Ahern): The information requested, provisionally estimated by reference to the income tax year 1994-95, is as follows in so far as it is available:—

Income Category

Estimated amount for 1994-95 (Provisional)

£m

(a) Income of individuals who are exempt from tax, together with,

6,683(1)

(b) Income of taxpayers which is not liable to tax because of exemption limits, allowances and reliefs

(c) Income taxable at 27 per cent(2)

7,423

(d) Income taxable at 48 per cent

3,350

(1) A breakdown between categories (a) and (b) is not available.

(2) Category (c) includes the income of taxpayers who are likely to benefit from marginal relief.

These figures are provisional and are likely to be revised.

81. Mr. M. McDowell asked the Minister for Finance the estimated full year cost for the year 1994 to 1995 of reducing the standard rate of income tax to 20 per cent and 48 per cent to 40 per cent. [2574/94]

Minister for Finance (Mr. B. Ahern): The relevant information available is in respect of the income tax year 1994-95. Reduction of the standard rate of income tax to 20 per cent would cost £503 million in a full year. Reduction of the 48 per cent rate of income tax to 40 per cent would cost £268 million in a full year. These figures are provisional and are likely to be revised.

82. Mr. M. McDowell asked the Minister for Finance, in respect of the year 1994 to 1995, the total number of couples in respect of whom married [1512] allowances were claimed; the number of taxpayers claiming single allowances only; and the number of persons claiming widowed persons allowances. [2575/94]

Minister for Finance (Mr. B. Ahern): The total numbers of income tax payers in respect of whom the married, single and widowed person's allowances will be allowed in the income tax year 1994-95 are estimated as follows:

Married

420,000

Single

443,000

Widowed

55,000

Included in these numbers are some 105,000 married, 31,000 single and 4,000 widowed taxpayers who are likely to benefit from marginal relief. These figures are provisional and are likely to be revised.

83. Mr. M. McDowell asked the Minister for Finance the estimated full year cost to the Exchequer in the year 1994 to 1995 of increasing the 27 per cent band by £1,000 for a single person and by £2,000 for a married person. [2576/94]

Minister for Finance (Mr. B. Ahern): The full year cost to the Exchequer, estimated by reference to the income tax year 1994-95, arising from the change mentioned in the question is £97 million. This figure is provisional and is likely to be revised.

84. Mr. M. McDowell asked the Minister for Finance the estimated full year gain to the Exchequer in the year 1994 to 1995 which would accrue if married persons were taxed separately as single persons. [2577/94]

Minister for Finance (Mr. B. Ahern): If it is assumed that all married couples would be affected, whether or not both spouses are earning, the estimated full year again to the Exchequer, in terms of the 1994-95 income tax year, of the [1513] change mentioned in the question would be of the order of £620 million to £650 million.

If the change is confined to married couples where both spouses are earning, the gain to the Exchequer would depend upon the precise breakdown of taxable income between the spouses. A tentative estimate would put the gain in the order of £30 million to £60 million. It is not possible to provide a more precise estimate.