Dáil Éireann - Volume 650 - 12 March, 2008

Written Answers. - Tax Yield.

Deputy Richard Bruton asked the Tánaiste and Minister for Finance the amount of revenue received from the construction industry each year over the past ten years reflecting the amount of VAT, site, labour and profit taxes. [10815/08]

  Deputy Brian Cowen: I am informed by the Revenue Commissioners that, as the information furnished on tax returns does not generally require the yield from a particular sector or sub-sector of economic activity to be identified, the precise figures of net yield of tax revenues from the construction industry cannot be readily identified. Information in relation to VAT, Income Tax and Corporation Tax can, however, be provided as to the estimated gross amounts of taxes paid (i.e. before allowing for repayments) by taxpayers in the construction industry.

In considering this data, it is important to bear in mind the specific assumptions that have been made and are set out in the notes under the table below. Also, it is important to bear in mind that the figures provided are estimates. Finally, the figures given below are revisions to figures provided in reply to earlier Parliamentary Questions. The revisions are as a result of the updating of tax records, such as amending relevant codes, having a retrospective effect on historical figures for tax yields. The gross yield of VAT (not including VAT on imports), PAYE/PRSI, Income tax non-PAYE and Corporation tax from taxpayers in the construction industry within the tax head is estimated as follows:

Tax head

2004

2005

2006

2007

€m

€m

€m

€m

VAT

2,041

2,465

2,977

3,043

PAYE/PRSI

1,878

2,161

2,378

2,610

Income Tax non-PAYE

244

341

469

445

Corporation Tax

404

496

610

582

The figures for 2007 are preliminary and subject to revision. Data for previous years is not readily available.

Notes:

These figures are gross receipts as provided by the Revenue Commissioners and differ slightly from the Exchequer receipts.

“Income Tax (non-PAYE)” includes direct Income Tax and PRSI payments received from self-assessed taxpayers and the estimated Relevant Contracts Tax not offset to other taxes, attributable to the construction industry but excludes certain “deduction” taxes such as Deposit [194] Interest Retention Tax, Withholding Tax on professional fees, Dividend Withholding Tax as well as yields from audit and other back duty settlements. The sector identifier used on the tax records is based on the 4 digit “NACE code (Rev. 1)” which is an internationally recognised economic activity code system. The NACE codes are not essential for the assessment and collection of taxes and duties and the correct allocation and maintenance of these codes is subject to the limit of available resources. While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analyses there will undoubtedly be some inaccuracies at individual level. This should be borne in mind when considering the information provided. The figure provided for the estimated gross yield from the construction industry has been expanded to include the yield from activities and businesses which are related, either in whole or in part, to the construction sector. An example of these would be architecture, engineering and the manufacture of products used in construction, but not real estate activities.

Stamp Duty

The breakdown of yield from Stamp Duty on residential and non-residential property for the years 1998-2007 is set out in the following table:

Year

Residential Property

Non-Residential Property

€m

€m

1998

213

174

1999

263

288

2000

282

392

2001

265

406

2002

349

317

2003

528

547

2004

752

709

2005

945

1,056

2006

1,311

1,679

2007

1,018

1,363