...But The Top 400 Earners In Ireland Only Pay An Average Of 25% Tax

By Colm Heatley

Ireland's top 400 earners make 715M Euro a year between them, or almost 2M Euro each per year, but pay tax at just 25%.

That is almost the same rate of tax as workers earning the national average wage pay.

The top earners in Ireland are supposed to pay 42% in income tax, however the figures, published for the first time ever, show that they are able to take advantage of generous tax reliefs on property and other investments.

The figures, released by the Deparment of Finance, show that on total combined income from slaries, investments and property, the top 400 earners paid income tax of just under 174M Euro on a total income of 715M Euro.

In effect they can decide their own tax liability, with the help of well paid professional advisers.

Last month the Revenue Commissioner's published its survey which showed that 43 people who earned 1M Euro in 2002 paid tax of less than 5%.

The low level of tax paid by the rich has provoked controversy in Ireland, which was shown last month to allocate one of the smallest budgets in the EU for health, education and social welfare - despite the sustained economic boom.

Labour party finance spokeswoman Joan Burton, who requested the figures, said they are a sign of the massive gulf between rich and poor in Ireland.

"These extraordinarily wealthy people are likely to have made significant amounts of money from the sustained property boom that the country has experienced," said Ms Burton.

She added that ten of the top 400 earners had 2.18M Euro in extra income under the Artist's tax exemption law.

"The paid no tax at all on this income.

"Assuming it would have been taxed at 42% they therefore saved an extra 915,000Euro in tax.

"The tax authorities are shielding very important information from the public gaze.

"The very wealthy like to be very private and the Revenue Commissioners are complying with their wishes".

A breakdown of the figures show that almost 210M Euro was paid out in directors' salaries to the top earners, 175M Euro was made by the self-employed top earners, including hospital consultants, barristers and a further 55M Euro was derived from rental income.

Another 273M Euro came from distributions, investments and other PAYE income.