Almost a year after it was announced in last year’s budget, the Minister for Finance, Brian Lenihan, has told me that not a single cent has yet been raised from the €200,000 per annum levy on tax exiles.

The Minister also confirmed to me (reply below) that the first payments under the levy will not fall due until the end of October 2011.

Some of the social welfare cuts announced in the budget on December 9th were actually implemented before the end of that month, but the modest additional contribution that tax exiles are being asked to make will not come into effect for almost two years. This says all that needs to said about Fianna Fail’s priorities when it comes to deciding who should first be asked to make a financial contribution to sorting out the economic mess.

We know from the Revenue Commissioners that there are up to 7,000 so-called ‘high net worth individuals’, including many multi-millionaires, who are technically living abroad but who continue to do business in this country and live here for long periods during each year. This enables them to legally evade carrying their fair share of the tax burden.

The Labour Party has been pushing for many years for action to make sure that these super-wealthy individuals pay their fair share. For instance, last year in our pre-budget submission, Labour proposed that tax exiles be asked to make a €100m contribution. We regarded last year’s budget measure as inadequate, but at least it was a step in the right direction. But now we find that even this modest proposal is not going to take effect for two years.

Everyone knows that we are facing the most severe budget in the history of the state and it will require very severe measures in order to try to undo the shocking damage done to the Irish economy by Fianna Fail.

The molly-coddling of tax exiles by Fianna Fail must be ended. This budget must contain specific measures to ensure that tax exiles are made to pay their fair share and made to pay it promptly.

DÁIL QUESTION

NO 100

To ask the Minister for Finance in view of the expiry of the relevant 31 October deadline for self-declaration, if he will provide an update on the implementation of further measures announced in Budget 2010 with respect to the treatment of non-residents for tax purposes; the revenue that has been raised from these measures to date; the amount of revenue he expects these measures to yield in 2011; the number of non-residents for tax purposes these measures have affected; according to the most recent figures at his disposal, how many such non-residents are there; and if he will make a statement on the matter.

– Róisín Shortall. (Nominated by: Joan Burton).

REPLY

Minister for Finance ( Mr Lenihan) :

The Domicile Levy is charged on an individual:

* who in any year is Irish domiciled and an Irish citizen,

* whose worldwide income in the year exceeds €1m,

* whose Irish located property in the year is greater than €5m, and

* whose liability to Irish income tax for the year is less than €200,000.

The Levy will be charged for 2010 and subsequent years, but the payment for each year can be made at any time up to 31 October in the year following the valuation date, which is 31 December of each year. The first valuation date will be 31 December 2010 and the tax return and payment of the Levy for 2010 will not be due until 31 October 2011. No revenue will therefore be raised from the Domicile Levy in 2010.

As yet, no one has “self-declared” for the Domicile Levy for the tax year 2010. This is because it is not possible to establish whether the levy applies to an individual for a particular tax year until after the end of that year.

At this stage it is not possible to estimate the amount of revenue that may be raised from the Domicile Levy in 2011. Because of the absence of reliable data, neither is it possible at this stage to estimate the number of non-residents that are likely to be chargeable to the Domicile Levy.

I am assuming that the reference by the Deputy to “further measures announced in Budget 2010 with respect to the treatment of non residents for tax purposes” is a reference to the Domicile Levy introduced by section 150 of the Finance Act 2010.