Dáil Éireann - Volume 688 - 09 July, 2009

Written Answers. - Tax Code.

Deputy Joan Burton Deputy Joan Burton

Deputy Joan Burton asked the Minister for Finance the number of claims made for one-parent family credit, under section 462, Taxes Consolidated Act 1997 in each year from 2000 to 2009 inclusive; if he will provide an analysis of claims made by status of the claimant, such as widow-widower, lone parent, separated parent or divorced; and if he will make a statement on the matter. [29320/09]

Deputy Joan Burton Deputy Joan Burton

Deputy Joan Burton asked the Minister for Finance the number of claims made for one parent family credit, under section 462, Taxes Consolidated Act 1997 in each year from 2000 to 2009 inclusive, broken down by sex of the claimant; and if he will make a statement on the matter. [29321/09]

Deputy Brian Lenihan Deputy Brian Lenihan

  Deputy Brian Lenihan: I propose to take Questions Nos. 132 and 133 together.

I am informed by the Revenue Commissioners that the estimated numbers of income earners availing of the one parent family credit, under section 462, Taxes Consolidated Act 1997, broken down by personal status and by gender for the income tax years 2000/01 to 2009 inclusive are set out in the following tables to the extent to which they are available.

227

[227] Figures in the tables are rounded to the nearest fifty.

The numbers availing of the credit represent income earners who were in a position to absorb at least some of the one parent family tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil.

The figures for the years 2000/01 to 2006 inclusive are based on incomes data derived from income tax returns held on Revenue records and have been grossed up to an overall expected level to adjust for incompleteness in the numbers of returns on record at the time the data was extracted for analytical purposes. For the years 2007 to date the figures are estimates from the Revenue tax forecasting model using actual data for the year 2005 adjusted as necessary for income growth for the years in question.

The breakdown requested in relation to separated and divorced parents either could not be obtained or could not be obtained without conducting a protracted examination of the Revenue Commissioners’ records.

Deputy Joan Burton Deputy Joan Burton

Deputy Joan Burton asked the Minister for Finance the number of the claims made for one-parent family credit, under section 462, Taxes Consolidated Act 1997 in each year from 2000 to 2009 that were audited; the proportion of the claims examined that were rejected in each year; and if he will make a statement on the matter. [29322/09]

Deputy Brian Lenihan Deputy Brian Lenihan

  Deputy Brian Lenihan: I am advised by the Revenue Commissioners that credit claims and requests for refunds from PAYE taxpayers are checked on a tiered basis based on value. Larger claims are subject to a higher proportion of examination as they are thought to be higher risk. I am further advised that overall, about 1% of claims for all tax credits, including One Parent Family Credit, are verified in this way. Some claims may subsequently be selected for a verification check. Where it seems from the checks carried out that the claim is not valid, the credit will be withdrawn. Results of claims checked are recorded at case level, not centrally and are not credit specific. Consequently, it is not possible to provide the information requested.

I am also advised by the Revenue Commissioners that in taking this approach to PAYE credit claims, they are applying the principles of presumption of honesty and self-assessment to PAYE workers that have worked successfully for business taxpayers since 1988. Where credits (including one parent family credit) are claimed by self-employed taxpayers, this is done on the standard return of income. These returns are all subject to audit and compliance checks in the normal way.

Deputy Joan Burton Deputy Joan Burton

Deputy Joan Burton asked the Minister for Finance the amount of tax forgone by the granting of a deduction for interest against rents assessable under case V, schedule D in the years 2001 to date in 2009. [29325/09]

Deputy Brian Lenihan Deputy Brian Lenihan

  Deputy Brian Lenihan: I am informed by the Revenue Commissioners that based on personal income tax returns filed by non-PAYE taxpayers for the years 2003 to 2007, the latest year for which this information is available, the estimated amount of tax foregone by allowing a deduction for interest on borrowings to be offset against rental income assessable under Case V, Schedule D is set out in the following table.

The estimates are based on assuming that tax relief was allowed at the top income tax rate of 42% (up to 2006) and 41% (2007) the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers.

Corresponding suitable data is not available for the years 2001 and 2002. I am advised by the Revenue Commissioners that data for the tax year 2008 is not yet available as the appropriate income tax returns for that year are not due for filing until October and November 2009. It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return form 12 is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return form 11. This return is the source of the figures provided in this reply. Projections for income tax receipts are based on assumed movements in macro-economic parameters and not by reference to the costs of individual tax reliefs. Accordingly, I am not in a position to provide the data requested by the Deputy for the year 2009 in relation to this relief.

Dáil Éireann 688 Written Answers. Tax Code.

Questions

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