Tax Collection
Seanad Éireann — 2021-06-14
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Sean Fleming (FF), Laois-Offaly

The idea of having an option of which withholding tax to pay is not part of the system. The 20% withholding tax applies to vast areas, including ones people will have seen much discussion of, such as some investment funds. There was an exception made there and it was brought up to 25% for some particular categories but right across the board there is a 20% withholding tax rate and Revenue has said that by and large - I do not have the statistics to hand - that covers the liability for most people. There are many people who, when all the expenses of their businesses are taken into account, fall into the category where their maximum top tax rate is 20%. I understand some people will certainly be paying at 40% but I am told the vast majority of those receiving this would not be in that category when the expenses of the business are taken into account. I will say that should an individual believe his or her current tax liability will be higher than it was the previous year, he or she can choose to pay additional preliminary tax through the year. I know the Senator said that is not the normal way but many people run their lives by ordering only so much heating oil per month and pay it that way rather than a bill every time the lorry comes to fill the oil tank. People pay their electricity bill and many people pay their bills on a monthly basis, and there is provision there for circumstances where a person feels he or she has a requirement to do so. However, I am not in a position to say there can be that option for the 40%.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2021-06-14/debate/main
Retrieved: 2026-08-14T04:49:22+00:00
Sitting date: 2021-06-14