asked the Minister for Finance the estimated cost to the Government annually if it were to bring the concessionary (composite) rate of taxation on Irish building societies to a par with the British rate of composite taxation on British building societies.
Written Answers. - Building Society Taxation.
247.
The Irish composite rate (24.5 per cent) is 70 per cent of the standard rate of income tax (35 per cent). The British composite rate (22.5 per cent) is 68 per cent of the British basic rate of income tax (33 per cent).
The cost of reducing the Irish composite rate to the actual British rate of 22.5 per cent is estimated at £1.2 million. A reduction in the Irish composite rate to 23.8 per cent, that is, from 70 per cent to 68 per cent of the standard rate, is estimated to cost £0.5 million.
Under section 31 of the Corporation Tax Act, 1976, arrangements entered into by building societies and the Revenue Commissioners involving among other things, the fixing of a composite rate of tax must at all times aim at securing that the net amount of income tax becoming payable under the arrangments is, as nearly as may be, the same as it would have been if such arrangements had not been entered into by the societies. The fixing of the composite rate at a level which would not secure this result would require an amendment of section 31.
248.
asked the Minister for Finance the scales of tax relief for people who hold building society mortgages.
The rate of tax relief in respect of interest on building society mortgages depends upon——
(a) the taxpayers marginal rate of tax,
(b) the amount of taxable income chargeable at that rate,
(c) the amount of interest attracting relief, and
(d) which of a taxpayer's deductions and allowances one regards as attracting relief at the marginal rate.
249.
asked the Minister for Finance the number of building society mortgagees who at present qualify for tax relief.
No distinction is made in the statistics available to the Revenue Commissioners between the numbers of persons who have claimed building society mortgage interest relief, other mortgage interest relief and other interest relief. Consequently it is not possible to provide the information requested by the Deputy.