asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of stallion fees from the general rate of value-added tax for the years 1984-1985, 1985-1986 and 1986-1987.
Written Answers. - Stallion Fees.
23.
As recipients of the fees in question are not required to make VAT declarations in respect of such fees and as reliable statistics in relation to those fees are not available from other sources it is not possible to furnish the information requested.
24.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of stallion fees from taxation under Schedule D or any other relevant Schedule for the tax years 1984-1985, 1985-1986 and 1986-1987.
Section 18 of the Finance Act, 1969, as amended by section 14 of the Finance Act, 1985, provides, inter alia, that the profits or gains arising to the owner of a stallion at stud in the State from the sale of services of mares by the stallion or to the part-owner of such a stallion from the sale of such services or of rights to such services are not to be taken into account for any purpose of the Income Tax Acts. Stallion fee income arising to an Irish bloodstock breeder who is a part-owner of a foreign-based stallion is also exempted where the share has been acquired and is held by him in order to service mares owned by him.
There is no obligation on an individual to include stallion fee income which has benefited from the exemption in a return of his total income and, accordingly, statistics are not available which would enable an estimate to be given of the cost of the exemption.