Minister’s Brief

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3.1.3 Tax Policy Division Description This Division is responsible for all aspects of tax policy, domestic and international. It works closely with the Office of the Revenue Commissioners, OECD and the EU on tax matters. It analyses policy proposals and drafts and prepares legislation, including the Finance Bill. Assistant Secretary - Gary Tobin Ireland’s Tax Burden and its Distribution The primary function of the tax system is to finance public expenditure. Taxation and public spending can also contribute to public policy objectives such as economic growth, equity and sustainable development. Taxes influence economic activity through their effects on decisions by households and firms on investment, savings, labour market participation and employment. These decisions are affected not only by the level of taxes but also by how taxes are designed and combined to generate revenues. Notwithstanding this economic role, financing the needs of the State remains the primary function of taxation. The OECD has produced a hierarchy that ranks taxes on the basis of impacts on economic growth. This suggests that corporate income taxes are the most economically harmful type of Page 28 of 184
tax, followed by personal income taxes and then consumption taxes, with recurrent taxes on immovable property the least harmful. At an overall level, there is no proven link between economic growth and the total tax burden. In a European context, while over the past two decades European economies with low tax burdens have tended to have higher growth rates this is more related to the convergence growth rates of new member states. Measured as a proportion of Gross Domestic Product (GDP), Ireland has a relatively low tax burden by European standards according to the latest data. In 2014 total taxes were 30.5% of GDP compared to the EU-28 average of 37.1%. However, given the exceptional gap between GDP and Gross National Product (GNP) in Ireland a hybrid measure taking GNP plus 40 per cent of the gap between GDP and GNP brings the tax take share to 33.2%. If social security contributions (SSC) are excluded from the comparison (given the stronger insurance character of these systems in other EU countries compared with Ireland), the tax take at 24.7% of GDP is marginally below the EU-28 average of 25.6%. As a percentage of the hybrid measure this rises above the EU average to 26.9%. Exchequer Tax Receipts 2015 €1,268 m €469 m Income Tax Valued Added Tax €18,359 m €11,944 m €6,872 m €5,292 m €327 m Corporation Tax Excise Duty Stamps Capital Gains Tax €669 m €400 m Local Property Tax Capital Acquisitions Tax Customs 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2015 Exchequer Tax Receipts, €m Page 29 of 184
Page 1 and 2: Minister’s Brief 2016 s Page 1 of
Page 3 and 4: 3.2.1.1 Policies on Mortgage Arrear
Page 5 and 6: 1. Introduction For the purposes of
Page 7 and 8: 2.1 Economic and Fiscal Directorate
Page 9 and 10: 2.2 Finance and Banking Directorate
Page 11 and 12: 3. Detailed Briefing Page 11 of 184
Page 13 and 14: 3.1.2 Economic Division Description
Page 15 and 16: Detail: Economic Outlook Pr
Page 17 and 18: 3.1.2.2 Microeconomic analysis unde
Page 19 and 20: changes in the relevant tax base) a
Page 21 and 22: 3.1.2.3 Economic coordination inclu
Page 23 and 24: 3.1.2.4 Budgetary/fiscal policy, go
Page 25 and 26: Assessment of compliance with SGP o
Page 27: was a deviation from the fiscal rul
Page 31 and 32: Tax Strategy Group - What Does It D
Page 33 and 34: Detail: Income Tax Policy Income Ta
Page 35 and 36: Credit in 2014 - that credit was of
Page 37 and 38: INCOME TAX INCENTIVES Agri-Taxation
Page 39 and 40: Marine taxation In Budget 2016, a r
Page 41 and 42: Detail: Indirect Tax Policy Tax Hea
Page 43 and 44: outcomes, then it was proportionate
Page 45 and 46: More fundamental threats to tobacco
Page 47 and 48: 3.1.3.4 Finance Bill co-ordination,
Page 49 and 50: ise in both equity markets and prop
Page 51 and 52: Tax Head 2007 (€m) 2013 (€m) 20
Page 53 and 54: 3.1.3.5 International taxations, co
Page 56 and 57: fully in line with the new OECD req
Page 58 and 59: 3.1.5.1 EU Economic Governance issu
Page 60 and 61: At EU level, the Governance section
Page 62 and 63: 3.1.5.2 EU-IMF Post Programme Monit
Page 64 and 65: 2. EU Funding Mechanisms/ Programme
Page 66 and 67: Detail: The EU Strategy Unit manage
Page 68 and 69: 3.1.5.4 International Relations Uni
Page 70 and 71: 3.1.5.5 Permanent Representation of
Page 72 and 73: 3.2 Finance and Banking Directorate
Page 74 and 75: 3.2.1.1 Policies on Mortgage Arrear
Page 76 and 77: available is €1.8 million. Initia
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3.2.1.2 Policies on Central Bank po
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deemed necessary, it may be prefera
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Detail: Key Initiatives to achieve
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5. Majority of credit requests cont
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3.2.2 Financial Services Division D
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A further group is reviewing the re
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financing would be available to cov
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o Cumulative impact of financial le
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3.2.2.2 National and EU policy and
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Securities The draft EU Prospectus
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In addition a full view of the fina
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"packaging", wrapping or bundling t
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3.2.3 Shareholding Management Unit
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3.2.3.1 State’s Banking Investmen
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3.2.3.2 State’s shareholding in A
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sheet continues to contract, albeit
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3.2.3.4 NAMA Specialist - Declan Re
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Detail: NAMA Background As part of
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3.2.3.5 IBRC (in special liquidatio
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In February 2013 the Irish Bank Res
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3.2.3.6 State’s shareholding in P
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PTSB’s return to profitability ha
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Credit Union Restructuring Board (R
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3.2.3.8 Management of all legal mat
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3.2.4.1 Risk and Financial Stabilit
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• development and maintenance of
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epresented and an Industry Advisory
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3.2.4.1 Management of FoI and PQ pr
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3.2.4.1 Liaison with the Attorney G
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3.2.4.2 Management of the Accountan
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Future Developments The vote accoun
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3.2.5 International Financial Insti
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Key Points: International Monetary
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with the delegation led by Second S
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assistance to the developing world.
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In addition to capital contribution
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would be the Minister for Finance o
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3.3 Corporate Page 165 of 184
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supported by OPW and a number of ex
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3.3.2. Corporate Affairs Descriptio
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member, the Department has a Busine
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ability of both electronic files an
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3.3.3. Human Resources Division Des
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Detail: 1. Organisational Structure
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effectively to improve and deliver
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The Department is currently reviewi
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Erosion of income tax base did not
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Minister’s Brief

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