Written Answers. - Parking Spaces.
Eric J. Byrne
Question:
10
Mr. E. Byrne
asked the
Minister for Finance
if his attention has been drawn to the fact that short-term parking spaces built with the aid of tax incentives are in some cases being rented in corporate blocks as long-term parking spaces; the proposals, if any, he has to discourage this trend; and if he will make a statement on the matter.
[4014/97]
I am informed by the Revenue Commissioners that the conditions governing the availability of capital allowances in respect of expenditure incurred on the construction or refurbishment of multi-storey car parks are different depending on the location of the car park. These arrangements can be distinguished as follows:
1. The Customs House Docks Area: Sections 41 and 42 of the 1986 Finance Act require that any car park in this area be "...wholly in use for ...members of the public generally...". Therefore, capital allowances will not apply if parking spaces are rented in corporate blocks on a long-term basis.
2. The Temple Bar Area: Section 55 (1) of the 1991 Finance Act requires that the car park be "...wholly or mainly in use for ...members of the public generally...". In this context, provided that no more than 49 per cent of spaces are available for renting on a corporate basis, the Revenue Commissioners accept that the term "mainly" is satisfied.
3. Other Designated Areas: Section 41 of the 1994 Finance Act allows relief on the construction or refurbishment of a "qualifying premises". Under the terms of this section, a car park is a qualifying premises. There is no requirement that spaces be made available for the public generally as a condition to granting relief.
4. All other areas: Section 41B of the 1994 Finance Act provides capital allowances for multi-storey car parks, either inside or outside the designated areas, where the relevant local authority certifies that the car park has been developed in accordance with criteria laid down by the Minister for the Environment. The legislation also states that the car park should be "...wholly in use for ... members of the public generally ...". Therefore, capital allowances will not apply if parking spaces are rented in corporate blocks on a long-term basis.
Any capital allowances claimed are subject to audit by the inspector of taxes. The law permits the withdrawal of relief if the claim to capital allowances is not justified. The Revenue Commissioners are not aware of any breaches of the conditions along the lines referred to by the Deputy. If the Deputy has specific information that a particular car park is not in use in accordance with the conditions imposed by legislation, he should forward the details to Direct Taxes Administration, Incentives Branch, Dublin Castle, who will have the matter investigated.
