Taxation (Hansard, 15 March 1994)

§ Mr. Boyes
To ask the Chancellor of the Exchequer if he will produce tables showing(a) the proportion of Government and social contribution income coming from indirect taxation and (b) the top rates of income tax in each other European Union member state.

§ Mr. Dorrell
The information is as follows:

Indirect taxes as a proportion of total taxes and social security contributions, 1991¹(per cent.) Top rate of income tax (per cent.)

Belgium 27.0 ³55

Denmark 35.9 65

France 33.4 56.8

Germany 31.7 ⁴53

Greece 51.8 40

Ireland 43.9 48

Italy 30.1 ⁵51

Luxembourg n.a. 50

Netherlands 26.7 ⁶60

Portugal n.a. 40

Spain ²31.8 56

United Kingdom 39.4 40

¹ Source: Data derived from OECD statistics. Includes some taxes within OECD classification, 4,000, property. For details see "Economic Trends", February 1994.

² In 1990.

³ At present, increased by a surcharge taking the effective rate to 56.5 per cent. Local authorities levy a further surcharge on top, taking the effective rate to around an average 60 per cent.

⁴ For business income, can be up to 58 per cent.

⁵ In addition, a local income tax at a nationwide rate of 16.2 per cent. is levied on income from business activities and investments.

⁶ In addition, a municipal income tax is imposed on income from business activities. The rate varies according to municipality, but takes the effective rate to around 55 per cent.

§ Mr. Matthew Taylor
To ask the Chancellor of the Exchequer how many staff are working in the areas of(a) capital gains tax, (b) schedule D tax, (c) corporation tax, (d) pay as you earn and (e) national insurance contributions.

§ Mr. Dorrell
Excluding staff employed on central administration, in other supportive roles and those in certain specialist offices the table sets out the total numbers 569W of Inland Revenue staff working within its network of local offices for the most recent year for which data are available—1992–93. The table shows how many were working in the areas of (a) capital gains tax, (b) schedule D tax, (c) corporation tax and (d) schedule E tax. Under (d) figures have been provided for schedule E tax rather than as PAYE as PAYE is simply a mechanism for collecting schedule E tax. Resource usage on national insurance contribution work is incidental to mainstream tax work and not separately recorded.

Number

Capital gains tax 833

Schedule D 19,664

Corporation tax 3,236

Schedule E 27,065

Total 50,798

	Indirect taxes as a proportion of total taxes and social security contributions, 1991¹(per cent.)	Top rate of income tax (per cent.)
Belgium	27.0	³55
Denmark	35.9	65
France	33.4	56.8
Germany	31.7	⁴53
Greece	51.8	40
Ireland	43.9	48
Italy	30.1	⁵51
Luxembourg	n.a.	50
Netherlands	26.7	⁶60
Portugal	n.a.	40
Spain	²31.8	56
United Kingdom	39.4	40
¹ Source: Data derived from OECD statistics. Includes some taxes within OECD classification, 4,000, property. For details see "Economic Trends", February 1994.
² In 1990.
³ At present, increased by a surcharge taking the effective rate to 56.5 per cent. Local authorities levy a further surcharge on top, taking the effective rate to around an average 60 per cent.
⁴ For business income, can be up to 58 per cent.
⁵ In addition, a local income tax at a nationwide rate of 16.2 per cent. is levied on income from business activities and investments.
⁶ In addition, a municipal income tax is imposed on income from business activities. The rate varies according to municipality, but takes the effective rate to around 55 per cent.

	Number
Capital gains tax	833
Schedule D	19,664
Corporation tax	3,236
Schedule E	27,065
Total	50,798