Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - Tax Reliefs.

Séamus Hughes

Question:

85 Mr. Hughes asked the Minister for Finance the cost of reducing the capital gains tax rate from 26 per cent on a graduated basis depending on the length of ownership shares in private companies on a basis of nil tax if shares are held for 20 years or longer; 15 per cent if held for 15 years or longer; and the amount of capital gains paid for each of the past five years on the disposal of shares in small private companies whose turnover is less than £10 million and whose profits are less than £1 million. [3061/97]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that basic data are not available which would enable the information requested by the Deputy to be provided. Information is not recorded in such a manner that would enable capital gains tax paid in respect of the disposal of shares in small private companies to be readily identified.

By way of indicative information, a reduction by one percentage point of the lower rate of capital gains tax on the disposal of qualifying shares in certain companies held for more than three years is estimated to cost about £0.2 million in a full year. This estimate is tentative and does not take into account any possible behavioural change on the part of taxpayers as a consequence of such a reduction.

To obtain the information requested by the Deputy, it would be necessary to carry out a detailed examination of all the relevant documentation. Such an exercise could be carried out only at a disproportionate cost.