Taxpayers to be given reminders on relief

THE Revenue is to write to all taxpayers who have not claimed any tax relief in the past four years.

The correspondence aims to draw people’s attention to the reliefs that are available to them – such as on medical expenses – Finance Minister Paschal Donohoe told an Oireachtas Finance Committee, but the measure received a lukewarm welcome by Sinn Féin’s Pearse Doherty.

Mr Doherty said that it narrows down the number of taxpayers who will be contacted.

The Donegal TD added that there was a need to examine a more consumer-friendly way of highlighting reliefs that are available.

He also called for the tapering out of tax credits for those on higher incomes.

“There are 10,000 people who earn an average of over €500,000 each. It is not appropriate to subsidise their high-income tax. They should not be getting a tax break above €3,300, it’s unjustifiable,” he said.

In response to this, Mr Donohoe said that such a move would have a negative impact on tax. “I believe we have highly effective tax rates available already, and if we take the effective tax rate even higher for people on certain levels of income it will affect decisions made in the economy,” he said.

“There are a certain group which earn more, they pay more tax and should pay more tax,” he added.

He added that 1pc of the top earners in the country pay 22pc of total income tax and USC in the State.