Vol. 372 No. 6
asked the Minister for Finance the number of covenants in favour of private educational establishments approved by the Revenue Commissioners for the purpose of tax relief; if his attention has been drawn to the fact that the procedure is now widely used as an effective tax subsidy for fee paying private schools; and the cost in terms of revenue foregone to the Exchequer.
45.
asked the Minister for Finance the number of covenants in favour of children over 18 years approved by the Revenue Commissioners for the purposes of claiming tax relief; and the cost of this concession in terms of revenue foregone to the Exchequer.
It is proposed to take Questions Nos. 44 and 45 together. I am informed by the Revenue Commissioners that statistics are not available which would enable the precise information requested by the Deputy to be given.
The latest relevant statistics available are in respect of the income tax year 1985-86. For that year it is estimated that 6,200 persons qualified for tax relief in respect of all covenants effective in that year at a cost to the Exchequer of £3.9 million in tax forgone.
These figures relate, apart from some minor categories, to income covenanted to or for the benefit of individuals aged 21 years or over, to universities or colleges in the State for the purpose of enabling them to carry on research or assisting them to teach the natural sciences, and to schools in the State for the purpose of assisting them to teach the natural sciences. It would not be possible to distinguish the nature of the establishments in favour of which covenants were made without wide-ranging inquiries which could not be undertaken within the resources available to the Revenue Commissioners. Income tax relief on income covenanted to persons between 18 and 21 years of age became available in the 1986-87 tax year. Statistics in relation to that year, which ended on 5 April 1987, are compiled from figures supplied by inspectors of taxes in respect of finalised claims for that year. These statistics will not be available for some months.
