Jack Wall
Question:228 Mr. Wall asked the Minister for Finance his views in regard to a submission (details supplied); his plans to allay the concerns expressed; and if he will make a statement on the matter. [25697/03]
Written Answers. - Tax Code.
Jack Wall
Question:229 Mr. Wall asked the Minister for Finance his views in regard to a submission (details supplied); the action he is willing to take to address the matter; and if he will make a statement on the matter. [25699/03]
Jack Wall
Question:230 Mr. Wall asked the Minister for Finance his views in regard to a submission (details supplied); and if he will make a statement on the matter. [25700/03]
Jack Wall
Question:231 Mr. Wall asked the Minister for Finance his views in regard to a press statement (details supplied) in regard to the effects of the removal of section 481 of the Taxes Consolidation Act 1997; and if he will make a statement on the matter. [25701/03]
Charlie O'Connor
Question:232 Mr. O'Connor asked the Minister for Finance the action he proposes to take to respond to the strong campaign by the film industry in respect of its concerns regarding the section 481 tax incentive; if his attention has been drawn to the case made by an organisation (details supplied) that the quality of Irish films has improved enormously over the past couple of years; if his attention has further been drawn to the huge public concern in this matter; and if he will make a statement on the matter. [25758/03]
I propose to take Questions Nos. 228 to 232, inclusive, together.
Tax relief for the film industry was first introduced in 1984 under the business expansion scheme and has continued in various forms for the past 19 years. This makes it one of the longest running sector specific tax reliefs in the economy and has seen an Exchequer contribution in terms of tax foregone in the order of €265 million in the past ten years alone. It should be noted that this relief has continued over time against a backdrop of the widening of the tax base and the reduction of rates generally. In budget 2003, I referred to the generally accepted principle that such reliefs narrow the tax base and that a widened tax base is the price that must be paid to retain the current low tax rates. Consequently, all tax reliefs must be subject to ongoing review. In that context I announced in the budget that a number of these reliefs across a range of sectors including film relief would not be extended beyond 31 December 2004.
I am aware of the views of many in the film sector that have been expressed either directly to me by way of representations or indirectly through the media, with regard to the economic and social impacts of the termination of this relief in December 2004. The Minister for Arts, Sports and Tourism has forwarded to me a copy of a study reviewing the relief that was commissioned jointly by his Department and the Irish Film Board. I have asked officials from my Department to examine this study. However, as things stand, the position with regard to the 31 December 2004 termination date for this relief remains unchanged.