Proinsias De Rossa
Question:65 Proinsias De Rossa asked the Minister for Finance the estimated cost to the Exchequer of tax foregone in respect of tax relief on section 84 type loans in each of the five years from 1988.
Written Answers. - Cost of Tax Relief.
Following is the information requested which has been estimated by the Revenue Commissioners:
"Section 84" loans — estimated cost to the Exchequer
|
Year |
Estimated Cost* |
|
£ million |
|
|
1988 |
112 |
|
1989 |
120 |
|
1990 |
140 |
|
1991 |
131 |
|
1992 |
105(provisional) |
*These estimates are very tentative and are subject to a wide margin of error.
The figures of cost include preference share financing which is a minor element in the total. The figures are gross figures, and do not take account of the yield from the levy on section 84 loan interest which was introduced in 1986. This levy yielded £18.5 million in 1988, £24.9 million in 1989, £27 million in 1990, £20.2 million in 1991, and £11.6 million in 1992.
The Deputy will be aware that measures were taken in the 1989, 1990, 1991 and 1992 Finance Acts to restrict the growth of section 84 lending. As the cost figure provided for 1992 relates to accounting periods ending not later than 31 March 1992 it would only partially reflect the effect of the 1992 Finance Act measures.