Vol. 505 No. 5
70 Ms O. Mitchell asked the Minister for Finance the safeguards, if any, in place to ensure that developments availing of special tax benefits for the provision of nursing homes will continue in that use for a minimum period of time. [14095/99]
I assume that the special tax benefits that the Deputy is referring to are the capital allowances introduced by way of section 22 of the Finance Act, 1998. Section 22 provides for the granting of capital allowances in respect of capital expenditure on the construction, extension or refurbishment of buildings used as private, registered nursing homes and for such expenditure on the conversion of an existing building into such a nursing home. To qualify for the allowance the nursing home must be registered with a health board under the Health (Nursing Homes) Act, 1990.
Section 22 makes provision for these allowances to be clawed back if the building is sold or ceases to be a qualifying nursing home within ten years. This is to ensure that the nursing home will continue in use for a reasonable amount of time. Where a capital allowance is to be clawed back the person who claimed the allowance is obliged to include the clawback in his or her return of income for the relevant year in which the clawback is due.
I am informed by the Revenue Commissioners that claims to capital allowances in respect of such buildings and the continuing entitlement to such allowances are subject to Revenue audit procedures. The audit may be a verification audit, which is confined to verifying a particular item on the return, such as a claim to capital allowances. Alternatively, the entitlement to capital allowances may be verified as part of a comprehensive audit of the taxpayer's affairs. Information coming to the notice of the Revenue Commissioners regarding disposals of buildings would be monitored to ensure that the appropriate adjustments are made.
