Written Answers. - Tax Reliefs.

Joan Burton

Question:

102 Ms Burton asked the Minister for Finance the total estimated cost to the Exchequer in terms of tax foregone of the new Revenue ruling for public private partnerships such as the building of the Kilcock motorway; and if he will make a statement on the matter. [19240/03]

I set out in detail the tax treatment applied by the Revenue Commissioners in such cases in my reply to an earlier question in the House on 28 May. This treatment is not new or unusual and is in line with the treatment of normal trading activities and is in accordance with relevant accountancy standards. That tax treatment has been applied to the PPPs completed to date.

The same treatment would be applied outside of a public private partnership arrangement if a similar arrangement existed between two private parties. In this sense there is no tax foregone over and above what would have arisen from the application of normal tax rules.

Joan Burton

Question:

103 Ms Burton asked the Minister for Finance the estimated tax foregone to the Exchequer through property based reliefs (details supplied) giving the figures for income tax, corporation tax and capital allowances as appropriate in respect of each year since 1997; and if he will make a statement on the matter. [19241/03]

I am advised by the Revenue Commissioners that the relevant information available is as follows:

Income Tax and-or Corporation Tax

Allowance Relief

Estimated costs to the Exchequer

1997

1998

1999

2000

2001

€m

€m

€m

€m

€m

Multi-storey car parks

n/a

n/a

3.5

2.5

2.5

The term n/a used in the table denotes not available. These estimates are particularly tentative and subject to a considerable margin of error.
I am informed by the Revenue Commissioners that tax relief for rural renewal, town renewal, living over the shop, airports, hotels, nursing homes, private convalescent homes and housing units for the aged and infirm are not currently captured in such a way as to provide a dedicated basis for compiling estimates of cost to the Exchequer. Claims for these reliefs are aggregated in tax returns with other claims, such as with industrial buildings allowances generally or with other capital allowances. They do not distinguish between the reliefs claimed in respect of different schemes. Accordingly, the specific information is not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records.

Joan Burton

Question:

104 Ms Burton asked the Minister for Finance the estimated tax foregone to the Exchequer through property based reliefs (details supplied) giving the figures for income tax, corporation tax and capital allowances as appropriate in respect of each year since 1997; and if he will make a statement on the matter. [19242/03]

I am advised by the Revenue Commissioners that the relevant information available is as follows:

Income Tax and-or Corporation Tax

Allowance Relief

Estimated costs to the Exchequer

1997/98

1998/99

1999/00

2000/01

2001

€m

€m

€m

€m

€m

Significant Buildings and Gardens

1.9

1.9

3.9

n/a*

n/a

*N/a denotes not available.
I am informed by the Revenue Commissioners that tax relief for child care facilities, student accommodation, third level institutions, private hospitals, sports injury clinics and park and ride facilities are not currently captured in such a way as to provide a dedicated basis for compiling estimates of cost to the Exchequer. Claims for these reliefs are aggregated in tax returns with other claims, such as with industrial buildings allowances generally or with other capital allowances. They do not distinguish between the reliefs claimed in respect of different schemes. Accordingly, the specific information is not readily available and could not be obtained without conducting a protracted investigation of the Revenue Commissioners' records.

Joan Burton

Question:

105 Ms Burton asked the Minister for Finance the estimated tax foregone to the Exchequer through farming reliefs (details supplied) in respect of each year since 1997. [19243/03]

I am advised by the Revenue Commissioners that the relevant information available is as follows:

Income Tax and Value Added Tax

Allowance/Relief

Estimated costs to the Exchequer

1997

1998

1999

2000

2001

2002

€m

€m

€m

€m

€m

€m

Stock relief*

2.3

1.7

2.3

2.1

1.9

1.9

Flat rate farmers (VAT)

106.1

119.2

138.1

153.0

172.7

163.2

VAT incurred on farm buildings and drainage

42.5

37.9

27.2

35.8

30.1

31.1

*These figures are the estimated costs of renewing the general 25% stock relief for farmers and the special incentive stock relief of 100% for certain young trained farmers. They are particularly tentative and subject to a considerable margin of error.
Figures for profit deferral and stock relief in respect of the compulsory disposal of livestock under a disease eradication scheme approved by the Minister for Agriculture, Food and Rural Development are not available but were estimated to be in the region of €600,000 in 1995 when the scheme was introduced.
**The figures shown cover repaid claims by those farmers who were not registered for VAT, or flat rate farmers, and who paid VAT in relation to the construction, extension, alteration or reconstruction of farm buildings and structures or on land drainage or land reclamation.
I am informed by the Revenue Commissioners that claims for tax relief on averaging of farm profits and renting of farm land either could not be obtained or could not be obtained without conducting an extensive investigation of the Revenue Commissioners' records.

Joan Burton

Question:

106 Ms Burton asked the Minister for Finance the estimated tax foregone to the Exchequer through tax reliefs (details supplied) in respect of each year since 1997; and if he will make a statement on the matter. [19244/03]

I am advised by the Revenue Commissioners that the relevant information available is as follows:

Income Tax

Allowance/Relief

Estimated costs to the Exchequer

1997/98

1998/99

1999/00

2000/01

2001

2002

€m

€m

€m

€m

€m

€m

Artists Exemption

19.8

24.5

29.9

n/a

n/a

n/a

Employee participation schemes:

Profit sharing scheme

23.7

33.7

30.7

31.0

n/a

n/a

Approved Share Option Scheme*

35.4

19.6

4.9

7.8

n/a

n/a

n/a denotes not available.
*Terminated in 1992.
Some of the estimated costs are provisional and may be revised.
I am informed by the Revenue Commissioners that claims for tax relief in respect of compensation payments for personal injuries are not captured in such a way as to provide a basis for compiling estimates of cost to the Exchequer.
In relation to tax relief on retirement relief for certain sportspersons, I am informed by the Revenue Commissioners that statistics are not currently available which would enable the information requested to be provided. This scheme was introduced relatively recently. Taxpayers claiming the relief have been requested to indicate their participation in their annual returns of income forms. Even with this information it will be some time before comprehensive statistics are available.
As regards employee participation schemes such as savings related share options, employee share ownership trusts and the new scheme for approved share options, introduced in 2001, Revenue informed me that on the basis of information received to date no significant costs to the Exchequer appear to have arisen. As the schemes mature over time Revenue will be in a position to monitor the position and identify costs as they emerge.
In the case of profits arising from commercially managed woodlands and from stallion and greyhound stud fees taxpayers are, at present, not required to include income arising from this source in their tax returns. Therefore, the information sought by the Deputy on costs is not available. I have stipulated in the Finance Act 2003 that returns of income must be made for stallion and greyhound stud fees and commercially managed woodlands for chargeable periods commencing on or after 1 January 2004.

Joan Burton

Question:

107 Ms Burton asked the Minister for Finance the estimated tax foregone to the Exchequer for reliefs (details supplied) giving the figures for income and corporation tax as appropriate in respect of each year since 1997; and if he will make a statement on the matter. [19245/03]

I am advised by the Revenue Commissioners that the relevant information available is as follows:

Income Tax-or Corporation Tax

Allowance/Relief

Estimated costs to the Exchequer

1997/98

1998/99

1999/00

2000/01

2001

2002

€m

€m

€m

€m

€m

€m

BES

56.4

31.4

30.0

16.8

15.1

20.7

Seed Capital

1.4

2.0

1.1

1.0

1.2

1.4

Films

22.9

34.3

24.2

29.2

11.3

21.5

Seafarers Allowance

0.1

0.1

n/a

n/a

n/a

Charitable Donations to Approved Bodies

12.7*

n/a

Interest on Loans

18.5

18.4

10.2

n/a

n/a

n/a

n/a used in the table denotes "not available".
*Provisional, and related only to PAYE taxpayers.
The estimates shown for 2001 are in respect of the short income tax year 2001 falling between 6 April 2001 and 31 December 2001.
As regards tax relief for the deduction of foreign earnings, donations to sports bodies, investment in life assurance undertakings and offshore life and collective investment products and the rent a room scheme, I am informed by the Revenue Commissioners that statistics are not currently available which would enable the information requested by the Deputy to be provided.