Vol. 376 No. 5
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the operation of the exemption limits applied to compensation payments for loss of office in each year between 1980 and 1987, inclusive.
61.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of lump sum retirement benefits paid under superannuation schemes in each year between 1980 and 1987, inclusive.
68.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to relief to shareholders in Irish companies as designated by section 7 of the Finance Act, 1932, in each year between 1980 and 1987, inclusive.
69.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the relief for employees' contributions to approved superannuation schemes in each year between 1980 and 1987, inclusive.
70.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the tax relief on retirement annuities premiums paid by the self-employed in each year between 1980 and 1987, inclusive.
72.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to exemption of income derived from savings certificates, national instalment savings and index linked savings bonds in each year between 1980 and 1987, inclusive.
73.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of income of approved superannuation schemes and occupational pension schemes in each year between 1980 and 1987, inclusive.
74.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of Irish Government securities where the owner is not resident in Ireland in each year between 1980 and 1987, inclusive.
76.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the tax relief under profit sharing schemes in each year between 1980 and 1987, inclusive.
77.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the tax allowance to owner-occupiers in certain urban areas as designated by the Finance Act, 1986, under Schedules E and D in each year between 1980 and 1987, inclusive.
97.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to relief for investment in research and development for each year between 1980 and 1987, inclusive.
98.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to double allowance rent allowance for certain urban premises for corporations under corporation tax for each year between 1980 and 1987, inclusive.
99.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to (a) accelerated capital allowances and (b) other capital allowances for each year between 1980 and 1987, inclusive.
I propose to take Questions Nos. 60, 61, 68 to 70, inclusive, 72 to 74, inclusive, 76, 77 and 97 to 99, inclusive, together. The following table sets out the information requested in so far as it is available:-
Estimated cost to the Exchequer
|
1985-86 |
1986-87 |
||||||
|
Allowance or Relief |
1980-81 |
1981-82 |
1982-83 |
1983-84 |
1984-85 |
(provisional) |
(provisional) |
|
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
|
|
Investment in research and development (1) |
— |
— |
— |
— |
— |
— |
Nil |
|
Profit sharing schemes |
— |
— |
Nil |
0.75 |
1.25 |
3.5 |
not available |
|
Reduction of 20% on dividends and interest paid by certain Irish companies (Section 7, Finance Act, 1932) (2) |
0.3 |
0.4 |
0.5 |
— |
— |
— |
— |
|
Employees' contributions to approved superannuation schemes* |
14.0 |
17.5 |
24.0 |
28.0 |
40.0 |
41.8 |
44.0 |
|
Exemption of interest on savings certificates, national instalment savings and index-linked savings bonds |
1.2 |
1.4 |
2.6 |
1.3 |
1.8 |
not available |
not available |
|
Exemption of Irish Government securities where owner not ordinarily resident in Ireland* (3) |
16.0 |
15.5 |
14.7 |
15.1 |
18.0 |
20.0 |
not available |
|
Exemption of income of approved superannuation funds* |
30.0 |
35.0 |
40.0 |
42.0 |
45.0 |
53.0 |
not available |
|
Retirement annuity premiums by self-employed* |
10.0 |
10.5 |
12.6 |
14.6 |
16.2 |
16.2 |
not available |
|
Exemption of lump sum retirement benefits paid under superannuation schemes* |
not available |
not available |
not available |
not available |
40.0 |
45.0 |
39.5 |
|
Exemption of payments made as compensation for loss of office* |
not available |
not available |
not available |
not available |
4.2 |
5.2 |
6.25 |
|
Urban renewal (4) |
|||||||
|
Owner-occupied dwellings |
— |
— |
— |
— |
— |
— |
Nil |
|
Double rent allowance |
— |
— |
— |
— |
— |
— |
Nil |
|
Capital allowances |
|||||||
|
Accelerated* |
83.1 |
95.6 |
112.2 |
135.7 |
150.8 |
170.5 |
184.0 |
|
Other* |
33.5 |
47.5 |
71.5 |
82.5 |
93.2 |
114.0 |
126.0 |
*These estimates are very tentative and are subject to a wide margin of error.
Notes on Table:
(1) Relief from income tax was introduced for certain investment in research and development under Chapter III of the Finance Act. 1986. No claim for relief was allowable before 1 January 1987.
(2) This relief was terminated with effect from 6 April 1983.
(3) The estimates relate to the cost of exemption from income tax of the interest earned on the securities in question.
(4) Relief from income tax and corporation tax was introduced under Chapter V of the Finance Act, 1986, to promote urban renewal and redevelopment in certain areas.
General Note:
The estimates given are on the basis that the application of tax:
(a) would not have altered activity in the affected areas;
(b) in one area would not have affected receipts in other areas, and;
(c) would not have resulted in other costs to the Exchequer.
All of these simplifying assumptions are unlikely to be correct. The figures given cannot, therefore validly be summed and do not give an accurate indication of the amount of tax which might be raised in the future were any of the areas in question to become liable to tax.
62.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of compensation payments for physical or other injury in each year between 1980 and 1987, inclusive.
63.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of foreign pensions in each year between 1980 and 1987, inclusive.
64.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of casual gambling winnings for each year between 1980 and 1987, inclusive.
79.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of patent royalties under (a) income tax and (b) corporation tax for each year between 1980 and 1987, inclusive.
80.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax on income arising from stallion fees under Schedule D in each year between 1980 and 1987, inclusive.
82.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from (a) income tax (b) corporation tax of payments made by the Minister for Labour under (i) the Employment Incentive scheme (ii) the Employment Maintenance scheme (iii) the Employers' Temporary Subvention scheme and (iv) the Employers' Employment Contribution scheme for each year that the particular scheme has been in operation.
83.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from (a) income tax and (b) corporation tax of payments made by the Industrial Development Authority under the Industrial Development (No. 2) Act, 1981 for each year between 1981 and 1987, inclusive.
85.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption of Government securities from the capital gains tax for each year between 1980 and 1987, inclusive.
86.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the deferment of tax under the capital gains tax arising from roll over relief for each year between 1980 and 1987, inclusive.
87.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the deferment of tax under the capital gains tax arising from relief for replacement of business assets for each year between 1980 and 1987, inclusive.
88.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the deferment of tax under the capital gains tax arising from relief for assets that are compulsorily purchased by a Government authority for each year between 1980 and 1987, inclusive.
89.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption limits under the capital gains tax for the disposal of a business, farm or share in a family company for each year between 1980 and 1987, inclusive.
90.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption limits under the capital gains tax, of disposals of an interest under a settlement for each year between 1980 and 1987, inclusive.
93.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the deduction of interest payments on loans from corporation tax for each year between 1980 and 1987, inclusive.
94.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from corporation tax of industrial and provident societies for each year between 1980 and 1987, inclusive.
95.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from corporation tax of agricultural and fishery co-operatives for each year between 1980 and 1987, inclusive.
100.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to assessing tax for the self-employed on the basis of the profits for the preceding year for each year between 1980 and 1987, inclusive.
102.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the waiver of tax on marginal coal mines that have applied for a reduction of tax on their profits for each year since 1974 to date.
103.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the loss in interest on late tax payment owing to the grace period for (a) corporation tax and (b) income tax under Schedule D for each year between 1980 and 1987, inclusive.
I propose to take Questions Nos. 62 to 64, inclusive, 79, 80, 82, 83, 85 to 90, inclusive, 93 to 95, inclusive, 100, 102 and 103 together. Statistics are not recorded in such a manner as would enable the information requested by the Deputy to be provided. Such information either could not be obtained or could not be obtained without undertaking inquiries which could be carried out only at a disproportionate cost.
65.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the health expenses relief in each year between 1980 and 1987, inclusive.
66.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the relief on permanent health insurance schemes in each year between 1980 and 1987, inclusive.
67.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the tax relief on covenants in each year between 1980 and 1987, inclusive.
71.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the tax relief on life assurance premiums in each year between 1980 and 1987, inclusive.
It is proposed to take Questions Nos. 65 to 67, inclusive, and 71 together. The information requested was provided on 7 April 1987 in my reply to a parliamentary question tabled by Deputy Tomás Mac Giolla for answer at that time (Official Report, Volume 371, columns 1473-1476).
The only changes in the information given in that reply relate to figures which were provisional or unavailable at that time. Revised estimates or newly available figures as appropriate are as set out in the following table:
Cost to the Exchequer.
|
Allowance or relief |
1985-86 |
1986-87 |
|
£ million |
£ million |
|
|
(Provisional) |
||
|
Life assurance |
28.9 |
32.2 |
|
Covenants |
3.9 |
7.0 |
75.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of interest paid by credit unions in each year between 1980 and 1987, inclusive.
Interest paid by credit unions is not specifically exempt from income tax.
78.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of investment and other bonds under (a) income tax and (b) corporation tax, as designated by the Central Fund Act, 1965, in each year between 1980 and 1987, inclusive.
I assume that the Deputy is referring to Exchequer Bills. For a period prior to January 1984, the excess of the amount received on redemption of such Bills over the amount paid for them at the time of issue was considered exempt from income tax except where it fell to be taken into account in computing for tax purposes the profits of a trade. This exemption was removed by section 28 of the Finance Act, 1984, in respect of Exchequer Bills issued after 25 January 1984 except where a tender had been submitted on or before that date. I am informed by the Revenue Commissioners that statistics are not maintained in such a manner as would enable them to estimate the cost to the Exchequer in terms of tax forgone of the exemption which existed before January 1984.
81.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the exemption from tax of investment income of approved unit trust schemes in each year between 1980 and 1987, inclusive.
There is no exemption provided for the investment income arising to approved unit trust schemes. In certain circumstances tax is not imposed on unit trusts where all the unit holders are exempt charities or superannuation funds. There is no additional cost to the Exchequer as a result of this treatment.
84.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the general exemption relief under the capital gains tax for each year between 1980 and 1987, inclusive.
The full cost to the Exchequer of this exemption is tentatively estimated at £3 million in 1987. Statistics are not recorded in such a manner as would enable the information to be provided for the years 1980 to 1986.
Such information could not be obtained without undertaking an inquiry which could be carried out only at a disproportionate cost but it is estimated that the cost in each of those years would not have been greater than £3 million.
91.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the operation of inflation indexing for allowable deductions under capital gains tax for each year between 1980 and 1987, inclusive.
To determine accurately the precise information requested by the Deputy would require identification of the cases involved and an individual examination of all the capital gains tax returns of such cases. Such an examination could be carried out only at a disproportionate cost.
However, it is tentatively estimated that the full cost to the Exchequer of this relief, in respect of the chargeable gains of individuals, is £10 million in 1987. It is estimated that the cost for any of the previous years requested by the Deputy would not exceed £10 million. The chargeable gains of companies arising from disposals of assets are, in general, charged to corporation tax and not to capital gains tax. Revenue statistics are not compiled in such a manner as would enable the cost of this relief attributable to companies to be estimated.
92.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the operation of thresholds under the capital acquisitions tax for each year between 1980 and 1987, inclusive.
I have been advised by the Revenue Commissioners that, in relation to capital acquisitions tax, thresholds of £10,000, £20,000, £30,000 and £150,000 applied between the years 1980 and 1987 to the taxable values of gifts and inheritances taken by a beneficiary, the actual threshold applicable depending on the relationship of the particular beneficiary to the disponer. The majority of gifts and inheritances are, because of these thresholds, exempt from tax, and where tax is clearly not payable, the Revenue Commissioners do not seek a return of his gift or inheritance from the beneficiary. Consequently, figures are not available which would enable the information sought to be given.
96.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to relief for investment in corporate trades for each year between 1980 and 1987, inclusive.
The relief for investment in corporate trades was introduced by the Finance Act, 1984. In respect of the income tax years 1984-85, 1985-86 and 1986-87, the information requested by the Deputy was provided on 24 November 1987 in my reply to a parliamentary question tabled by Deputy Tomás Mac Giolla for answer at that time (Official Report, Volume 375, column 1487).
101.
asked the Minister for Finance the cost or estimated cost in terms of revenue foregone to the Exchequer due to the failure to charge interest on late payments of health contributions and the youth employment levy for each year between 1980 and 1987, inclusive.
It is assumed that the Deputy is referring to collection of the youth employment levy and health contribution from self-employed persons.
I am informed by the Revenue Commissioners that there is no statutory provision for charging interest on later payments of health contributions and youth employment levy by self-employed persons. Accordingly records of payment are not kept in a way which allows for any estimate of the yield if interest had been chargeable.
104.
asked the Minisster for Finance the total balance outstanding and the amount likely to be collected in unpaid taxes for the following tax categories: (a) corporation tax, including corporation profits tax (b) income tax under Schedule E (c) income tax under Schedule D (d) VAT (e) PRSI (f) capital gains tax (g) capital acquisitions tax (h) health contributions (i) youth employment levy (j) residential property tax (k) customs and excise duties and (l) stamp duties for the last available date.
Statistics are not available which would enable the precise information requested by the Deputy to be given. Each year tables are compiled by the Revenue Commissioners showing as at 31 May the total of balances on their records for the various taxheads. The commissioners also furnish estimates for those taxheads of amounts included in the balances which are likely to be collected when all the statutory processes for determining appeals and securing payment of the tax have been completed.
The following table sets out a summary of those tables:
Summary of tables as at 31/5/1987
|
Taxhead |
Balances on Revenue records |
Likely to be paid after 31 May 1987 |
|
(1) |
(2) |
(3) |
|
£ million |
£ million |
|
|
Income tax (non-PAYE) |
1,414 |
197 |
|
PAYE |
96.6 |
37.9 |
|
PRSI |
117.3 |
46.7 |
|
Corporation tax |
1,141 |
182 |
|
Capital gains tax |
115 |
12 |
|
Capital acquisitions tax |
14.7 |
14.7 |
|
Taxes now abolished (surtax, corporation profits tax and wealth tax) |
6.3 |
0.9 |
|
Health contributions, Youth Employment levy and Income levy |
124 |
15 |
|
Value Added Tax |
784.9 |
185 |
|
Residential property tax |
2.2 |
2.2 |
|
Customs and Excise¹ |
Nil |
Nil |
|
Stamp Duties² |
Nil |
Nil |
|
Total |
3,816.0 |
693.4 |
¹Generally speaking, outstanding balances are not a feature of customs and excise duties as duty is either secured or paid before dutiable goods are released from official control. Exceptionally some small arrears of duty can temporarily arise from time to time in the case of some of the minor excise duties where traders fail to fulfil payment arrangements exactly on time.
²The system under which stamp duties are operated does not give rise to the development of an arrear.
The figures in the summary indicate the latest statistics available as regards the information sought by the Deputy. The balances on record do not, however, represent amounts of tax which were due for payment at 31 May 1987. The bulk of the entries relate to assessments which were still under appeal or in respect of which appeals were, at the time, about to be lodged. As the appeals are heard and settled in the normal course of the year's cycle the balances on record as tax will be adjusted downwards in the vast bulk of cases. The aggregate of tax likely to be collected was arrived at on the basis of work in progress and includes assessed but not due for payment on 31 May 1987. By way of example corporation tax due for payment in the latter half of 1987 is included. The estimates contained in the aggregate are based on Revenue experience.
