The four tricks the super rich use to avoid paying tax
Smart Money: High income PAYE taxpayers pay at a higher rate than the wealthiest
Just how do the super-rich do it? Photograph: iStock
Figures from the Revenue Commissioners show that many of the State’s wealthiest people pay relatively little income tax here. We will look at the four main ways they achieve this. Analysis of the figures shows on average this group pays a lower percentage of tax on their income than higher-earning PAYE taxpayers. And many use tax arrangements, reliefs and allowances to declare extraordinarily low amounts of income for tax in the Republic.
Ireland has what is called a highly progressive income tax system – the burden rises sharply as income rises. The average taxpayer pays income tax at an effective rate of just over 16 per cent – meaning this is the percentage of their income taken in taxes.