Edmund Burke once said, "To tax and to please, no more than to love and to be wise, is not given to men." As Finance Bills are primarily concerned with taxation, this logic might suggest that today's debate would be an occasion to be avoided. This is far from the case. I am very proud of my seven Finance Bills, reflecting as they do a core element of this Government's budgetary and economic policies which have delivered unprecedented economic progress and improved standards of living for this country.
We have achieved one of the best economic performances in the world in the past four years. Taking the years 1998-2001, the economy has grown in GDP terms by an annual average of 9.5%. Our debt to GDP ratio stood at 74% in 1996 before we came into office; at the end of 2001, it had fallen to 36%, the second lowest in the European Union.
The Government has been very effective in its stewardship of the economy. An achievement that will stand out is that more than 300,000 new jobs have been created since 1997. As a result, unemployment has fallen from 10.3% in 1997 to an estimated average of 4% for last year. Long-term unemployment has also fallen significantly. The slowdown in the economy, however, from mid-2001 has been associated with some high profile job losses and the unemployment rate has edged upwards slightly. In these circumstances it is essential that the economy remains competitive in order to be in a position to take full advantage of the global economic recovery.
As I have said before, the annual Finance Bill is major legislation that implements the tax changes announced in the budget and a range of other measures. This year, the Bill runs to 141 sections and six Schedules. I propose to outline the main provisions.
I do not subscribe to the view of the Houses of Parliament in England, which, on the abolition of income tax after the Napoleonic wars, decreed that all records and papers relating to the tax should be destroyed. I do feel, however, that high tax rates inhibit economic development and ultimately restrict tax revenues. A central objective of the Government in the area of personal taxation has been to move to a position where most income earners pay tax at no more than the standard rate. Before the Government came into office, a single person with an income above €17,270, or £13,600, per annum became liable at the top income tax rate. This was below the average industrial wage as it stood in the first half of 1997. We are now in a position, following the budget for 2002, where the same person will not pay tax at the higher rate until his or her income exceeds €28,000, or £22,052, comfortably above the average industrial wage today. The improvement has been brought about by the significant widening of the standard rate band over the last number of budgets. Section 2 of the Bill will give effect to a further widening of the band. This will move a further 57,000 taxpayers from the top rate of tax.
Section 3 gives effect to significant increases in basic tax credits resulting in further real progress towards our aim of exempting those on the minimum wages from the tax net. The increase of over 14% in the combined value of the personal and employee credits provided for in the Bill will mean that the entry point in the tax system for a single person will be over €209, or £165 per week, that is, 90% of the current minimum wage. This compares with an entry point of €98, or £77 per week, in the tax year 1997-98. A single income married couple in receipt of the home carer's credit will be exempt from tax on the first €22,350, equivalent to €430 per week.
Since 1997 the positive changes to the income tax system have removed 71,500 elderly people from the tax net. The increase in the exemption limits for those aged over 65 years, provided for in section 4, will mean that the limits have almost doubled since 1997, to €13,000 for single persons and €26,000 for married couples. The increases in credits provided for in the Bill, together with the increased exemption limits for the elderly, mean that over 79,000 people are being exempted from income tax altogether. Since the Government took office the number removed from the tax net has increased to a record 692,000, equivalent to 37% of all income earners. This compares with a figure of 380,000, or 25%, of income earners before the Government took office.
I previously improved the allowance for those who employ a carer to look after incapacitated individuals in the home. To continue the support of the tax system for the people concerned and acknowledge the increased costs in this area, this year, in section 5, I have increased the annual maximum allowed from €12,700 to €30,000, which can be claimed at the individual's marginal rate of tax.
One of the positive developments provided for in the Bill deals with medical expenses relief and is set out in section 9. At present relief is primarily aimed at individuals or family units with dependent relatives. Subject to a maximum threshold, claims can be made by an individual against tax at the marginal rate. One of the anomalies of the current arrangement is that it is not possible to claim in respect of expenses met for a family member who is not a dependent as defined by the existing legislation. This means, for example, that a person could not claim for expenses met for a brother or sister who is not a dependent.
There are other deserving cases also which ought to be brought within the scope of the relief, for example, elderly individuals aged 65 years or over or those permanently incapacitated. Section 9 takes the appropriate action in this regard.
Section 6 removes the €195 tax credit ceiling for services provided by local authority and private operations, other than for refuse collection services based on a tag system. This will allow a taxpayer to claim a tax credit for the full range of such services at the standard rate of tax.
During the years I have made a number of changes in the area of pensions. Most significantly, in 1999, I increased tax relief for contributions to personal pensions for the self-employed and abolished the requirement for them to purchase an annuity on retirement. In the Bill I am making further changes to encourage employees in occupational pension schemes to increase their level of pension cover. Under the existing rules, the maximum an employee who is a member of an approved occupational pension scheme can put aside in a tax efficient manner for his or her pension is 15% of his or her annual remuneration. I am increasing the tax relief limits from 15% to 30% depending on age in order that they mirror the limits that apply to pension contributions paid by the self-employed. This will enable many employees to improve their pensions, subject to the normal Revenue approval limits. It will especially benefit those employees who have insufficient service to obtain a full pension in the normal course.
In addition, I am liberalising the rules regarding retirement annuity contracts for the case where a self-employed individual becomes an employee and joins an occupational pension scheme. I am now providing that such individuals will no longer have to terminate the RACs but instead can continue with them in their new situations, but without tax relief. Furthermore, I am changing the rules to allow for the provision of a full pension for a spouse or, alternatively, children of the deceased pension scheme member instead of the maximum of two thirds of the member's entitlement, as at present. As announced in the budget, I have reduced the tax charge on repayments of pension contributions from 25% to the standard rate of income tax, currently 20%.
Section 12 provides for the introduction of a new scheme of relief from income tax on retirement on their direct sports earnings for Irish resident sportspersons involved in certain sports. Qualifying sportspersons will be entitled to a deduction from earnings from direct participation in certain sports of the order of 40% for up to ten years of assessment back to and including the tax year 1990/1, provided the sportsperson was resident in the State during these years. Eligible income under the scheme will arise from direct participation in the sport and will not include income accruing from sponsorship, advertising or endorsements. The relief can be claimed in the year in which the sportsperson ceases to be permanently engaged in that sport, provided that the individual is resident for tax in that year and will be given by way of repayment of tax.
My proposal has been portrayed in some quarters as a snub to the GAA and its top players. This is emphatically not the case. I am very well aware of the effort and commitment which the top GAA players make to training and preparation, as well as of the pleasure and enjoyment they give to the sporting public. These players have been described as élite athletes and I would not disagree with that description. There are, of course, sportsmen and women in other amateur codes whose dedication and commitment to their chosen sport is also impressive. The tax relief for retiring sportspersons is restricted to direct earning from participation in sport. It does not, nor can it, apply where no direct sports earnings exist. Once a link between tax relief and sports income is broken, it would become difficult, if not impossible, to stop its extension to persons engaged in sport primarily as a leisure activity rather than a competitive one. This would be very costly to the Exchequer.
I am more than happy to stand on my record of support for the GAA. Indeed, I came in for a fair amount of criticism when I granted the GAA the equivalent of over €25 million in 1998 to aid the redevelopment of Croke Park. The GAA is well treated in the tax code. The current tax exemption for the income of sports bodies was introduced in 1927 specifically for the games of gaelic football, hurling and handball. It was only in 1963 that it was extended to other sports.
Section 13 amends the provisions governing approved profit sharing schemes and employee share ownership trusts to allow existing ESOTs or APSSs to continue to benefit where a takeover occurs and the takeover company has no share capital or insufficient share capital to do a full ordinary share for share exchange.
Section 14 limits the use by private investors of relief available for expenditure on significant buildings. In order to combat the unintended use of this relief by passive individual investors, there will be an annual limit of €31,750 on the amount of losses that such investors can offset against their other income. This brings this relief into line with what applies generally for tax relieved investment in buildings.
Section 15 amends the rules for tax relief on ex gratia redundancy payments. At present, the basic income tax exemption limits for ex gratia redundancy payments are €10,160 or £8,000 plus €765 or £600 for each full year of service. The limits were increased to their present levels in 1999 and an individual may avail of this exemption each time he or she is made redundant.
In addition, on a once-only basis, the basic exemption may be increased by an additional €5,080 or £4,000 in a case where an individual is not a member of an occupational pension scheme or irrevocably gives up the right to receive a lump sum from such a scheme. If an individual receives, or is entitled to receive, a pension lump sum the additional exemption is then reduced by the amount of the pension lump sum. The section increases the value of the additional amount from €5,080 to €10,000 and modifies the restriction on its use so that it may be availed of by an individual every ten years.
Section 16 extends the business expansion scheme and the seed capital scheme for a further period of two years. The existing company limit for these schemes is being increased to €750,000. This initiative will further facilitate companies, particularly small and start-up companies, in raising funds.
Section 17 provides for the reintroduction of mortgage interest relief as a deductible expense in calculating tax on rental income from residential property with effect from 1 January 2002. While the Government has made a number of changes in the taxation of the residential property market over the last number of years, circumstances have now changed and the presence of investors is required to secure the future supply of housing to meet accommodation needs. This change, together with the stamp duty change in sections 109 and 110, has already had an effect in restoring confidence in the housing market with positive implications for employment and output in the construction sector.
Sections 23 and 24 deal with extensions to the deadlines for qualifying expenditure in relation to a number of tax incentive schemes for property investment. I understand that projects planned under these schemes have been delayed for a variety of reasons and I hope that the time extensions granted will allow these projects to progress to completion by the new deadlines. The existing 31 December deadline for relief for multi-storey car parks, the urban renewal and rural renewal schemes will be extended until 31 December 2004. Deadlines for the relief for student accommodation are being extended to 30 September 2005 and for the park and ride scheme until 30 June 2004.
In relation to the business elements of both the urban and the rural renewal schemes, the extensions to the deadlines are subject to approval by the European Commission under EU state aid rules. No such EU approval process will be necessary for the residential elements of these schemes.
Section 25 makes a number of amendments to both the Urban Renewal Act, 1998 and the Town Renewal Act, 2000 to allow the Minister for the Environment and Local Government to extend the rented residential relief to certain areas which were originally designated under both the town and urban renewal schemes for owner occupier relief only. These measures will have the effect of extending the relief for rented residential investors to an overall total of 1,785 sites in the areas designated under both schemes. Of these, a total of 1,125 sites will be for new build development sites. It is hoped that, with the restoration of relief for borrowings for residential investors, this measure will increase the level of the provision of rented residential accommodation in the areas designated under both schemes.
Section 27 provides for the removal of some of the restrictions on the availability of capital allowances under the town renewal scheme which were introduced in the Finance Act, 2001, in respect of expenditure incurred on or after 6 April 2001 on the refurbishment of industrial and commercial buildings in qualifying areas. These restrictions were introduced subject to the conclusion of discussions with the European Commission on the outstanding state aid issues concerning the scheme. These outstanding issues have now been resolved with the European Commission and this section removes the restrictions. This change means that all qualifying refurbishment projects under the scheme can now avail of the incentives in respect of eligible expenditure incurred since 6 April 2001. I am confident that this change will provide a boost to the 100 small towns throughout the country that have designated sites included under this scheme.
Section 28 provides for the abolition of the restriction on the amount of deductible motor car running expenses for corporation tax or income tax purposes. These expenses include expenditure on fuel, insurance, tax and repairs. The expenses in question are those incurred in the course of a business or employment and the restriction is a somewhat artificial and cumbersome one that has outlived its usefulness. The abolition of the limit will take effect in relation to such expenses incurred in an accounting period or basis period ending on or after 1 January 2002.
Section 29 makes a number of amendments to the special profit deferral arrangement and 100% stock relief that is available to farmers who receive compensation as a result of disease eradication measures. The two year period during which farmers can avail of this measure is to be extended to four years in respect of disposals which arise on or after 21 February 2001. Section 30 extends the definition of qualifying quota that can qualify for relief under the scheme of capital allowances for the purchase of milk quota. This relief is to be available in respect of any purchase of milk quota by active producers purchased on or after 1 April 2000. However, as before, the amount of the relief available is capped at the price set for the milk quota year by the Minister for Agriculture, Food and Rural Development for the purposes of the purchase of milk quota under a milk quota restructuring scheme.
Section 32 amends the legislation providing for a scheme of capital allowances in respect of expenditure incurred on the construction or refurbishment of buildings used as private hospitals so as to streamline the provisions and improve the potential take-up of the scheme.
Section 33 provides for a scheme of capital allowances for the construction or refurbishment of housing units for the aged or infirm which are associated with registered nursing homes. The housing units must fulfil certain conditions. For instance, each unit must contain a nurse call system linked to the registered nursing home and the development must have an on-site caretaker. The scheme should act as an incentive for the provision of suitable residential accommodation in caring for elderly persons who are no longer able to live alone without some level of care but who do not as yet need to transfer to full nursing home residence. I am pleased that in the Dáil Committee, Deputies from all sides warmly welcomed this new scheme which I regard as meeting a particular need in the overall framework for care of the elderly. The house and any building in which it is comprised must be designed and constructed to meet the needs of persons with disabilities, including in particular persons who are confined to wheelchairs.
Section 34 provides for a scheme of capital allowances in respect of capital expenditure incurred on the construction or refurbishment of buildings used as private sports injury clinics. In order to qualify for the allowances, the sole or main business of the clinic must be the diagnosis, alleviation and treatment of sports-related injuries. The clinic must provide day-patient, in-patient, out-patient and surgical services and in-patient accommodation of at least 20 beds and must contain an operating theatre or theatres and on-site diagnostic and therapeutic services.
Section 35 extends the qualifying period of the scheme for capital allowances in respect of expenditure incurred on certain buildings used for third level education from 31 December 2002 to 31 December 2004. This scheme has made a useful contribution to the development of important educational infrastructure and its continuation should benefit the delivery of high quality third level education facilities.
Section 41 provides for a scheme of tax relief on donations to certain sports bodies for the funding of capital projects. During last year's debate on tax relief for donations to charities I undertook to examine whether a similar relief could be given for donations to sports bodies. The changes I have made to the charitable donations area have been broadly welcomed by the charitable sector and I am happy to extend the same principle to donations for capital sports projects. I have always been positively disposed towards giving tax relief for donations to sports bodies and am confident that this new scheme will act as an important incentive for the continuing development and improvement of sports facilities throughout the State. The provisions contained in this section of the Bill represent, in my view, a sensible approach to providing such relief. Eligibility for the relief will centre on two key criteria: the sports body must be an approved sports body and the donation must be for the purposes of a capital project costing under €40 million.
Section 42 extends the qualifying period for tax relief for corporate investment in certain renewable energy projects from 17 March 2002 to 31 December 2004. This extension is subject to clearance by the European Commission from a state aid perspective and will come into operation by way of a commencement order following such clearance.
Section 53 gives effect to my budget announcement that a tonnage tax method for calculating the profits of shipping companies for the purposes of corporation tax would be introduced. Tonnage tax makes available an alternative method for shipping companies to calculate their profits for corporation tax purposes. If a shipping company wishes to remain subject to the normal corporation tax rules for the calculation of its profits, it may do so. Profits once calculated using the tonnage method are subject to the 12.5% rate of corporation tax the same as the profits of a shipping company calculated by reference to the normal rules. The tonnage tax profits are arrived at by reference to the tonnage of the ships used in the shipping trade. Subject to clearance by the European Commission from a state aid perspective, the tonnage tax will come into operation by way of a commencement order. This provision is aimed at providing a level playing field for Irish shipping companies vis-à-vis those in other EU member states with similar rules.
Section 54 allows for some easing in the rules regarding the offset of losses on trading income activities against profits made on non-trading income activities. This is in response to requests made by tax practitioners in relation to the over strictness of the current rules.
Section 58 gives effect to the budget measure that the payment date for preliminary tax is being brought forward to one month before the end of the accounting period – an advance of seven months. This brings the provision for the payment of corporation tax more in line with the general practice in other EU and OECD countries and in line with the rules for the payment of income tax. The measure is being introduced over a transitional period and will be fully effective for accounting periods ending after 2005 when 90% of final liability will be payable one month before the end of the accounting period. Any balance of tax due will, as at present, remain payable within one month of the issue of the tax assessment by the Revenue Commissioners. It may be more difficult for a small company accurately to assess its potential corporation tax liability for the year. Accordingly, provision is being made to allow small companies to pay either 90% of the current year's liability or 100% of the previous year's tax liability.
A company will be treated as a small company if the corporation tax liability for the previous corresponding period does not exceed €50,000. Corporation tax payable on any capital gains in the last month, which could be difficult to predict, does not have to be included in the 90% provided a top-up payment is made one month after the end of the period. Capital gains tax retirement relief applies where a person aged 55 years or over disposes of business assets by way of sale or gift, subject to certain conditions.
Section 59 provides that personally held business assets, that is, those held outside a family company, will also be eligible for retirement relief, subject to certain conditions, including the condition that these assets must be disposed of together with the family company to the same person or persons. This facility already applies in the case of capital acquisitions tax business relief.
Sections 57 and 58 deal with CGT reliefs in the case of a compulsory purchase order of farmland for road construction for road widening purposes. The sections extend roll-over relief and early retirement relief to include land that was leased at the time of the CPO provided it had been actively farmed and was leased for less than five years prior to the disposal.
Sections 64 to 83, inclusive, relate to betting duty, including provisions to consolidate and modernise the betting duty legislation. The existing legislation in this area, some of which dates back to 1926, has been supplemented and amended over time to the extent that it has become very fragmented and disjointed. The opportunity is now being taken to streamline existing provisions and to introduce a new collection system. Section 67 confirms the budget decrease in the rate of excise duty on bets from 5% to 2% with effect from 1 May 2002. The 5% rate has applied since 1999.
The reduction in the rate is specifically targeted at safeguarding the Irish betting industry by reducing the incentive for Irish bookmakers to move offshore, in particular to the UK. This section also includes a change in the definition of the amount of the bet to clarify the taxation of spread betting on a unit basis. Section 68 provides for a new exemption for tote bets placed in registered bookmaking premises. Section 71 allows the bookmaker to absorb and pay the betting tax rather than charge it to the customer. Section 78 includes the imposition of a new charge of €2,000 where premises are re-registered following de-registration. These and the other changes in the Bill continue the process of updating excise law undertaken in recent Finance Acts.
Sections 84 and 85 provide that all applicants for a permit required to operate amusement machines in public places must produce a tax clearance certificate. There is also a provision for the imposition of an excise duty of €100 on the issue or renewal of such a permit. Section 86 provides that a tax clearance certificate is required when applying for various intoxicating liquor licences. Section 87 consolidates and standardises Revenue officers' powers of entry and search of premises for excise purposes by the inclusion of premises in which bets are accepted and by clarifying powers of detention. Sections 88 to 90, inclusive, confirm the budget increases in rates of excise duty on tobacco, petrol, auto diesel, cider and perry. Section 89 also confirms the budget provision for a higher rate of duty, to apply from 1 March 2002, on auto diesel with a higher sulphur content. Sections 91 and 92 extend both the repayment period and time limit for claims for repayment of mineral oil tax on heavy oil and liquid petroleum gas used for various purposes.
Partial relief from mineral oil tax by way of repayment is provided for in certain road passenger services. The current criteria apply to a person who carries on a passenger road service or provides a school transport service. In recognition of the importance of tourism to the economy and the key role played by coach tourism in this area, section 93 adds a new category of tour coaches used for extended group tours to the road passenger service section. The Bill provides that the extension of the relief, and the current relief, will be for those who can produce tax clearance certificates.
Sections 99 to 110, inclusive, deal with VAT. There are some significant changes in the VAT treatment of property transactions in the Bill. Sections 99 and 100 are aimed at preventing the use of VAT property avoidance schemes. These schemes have become a feature of the VAT system in recent years. I am anxious that such schemes are closed down when they are discovered and where there is a feasible way of doing so. Section 99 aims to prevent misuse of the valuation system to reduce the amount of VAT that should be paid on the development of property by exempt entities. It was possible to have a reduced value for such properties due to the non-commercial nature or location of the properties involved.
The Bill as initiated introduced the concept of "economic value" which provided that if the VAT value of the property and its development is less than the VAT value of the leasehold interest being disposed of, then the deductibility claimed on the acquisition and development of the property is clawed back. In this way, the measure ensured that VAT chargeable is at least equal to the VAT input credit already claimed from the Exchequer.
Following representations from interested parties that the definition in the Bill as initiated could create difficulties for genuine property transactions, the definition of "economic value" was modified on Committee Stage in the other House. The Bill now allows a reduction in the amount identified as the "economic value" in certain cases. The reduction applies where a person who is not the developer creates a smaller lease out of a longer lease, that is, the creation of a 20-year lease out of a 35-year lease. It will also apply in the case of a surrender or assignment of the remainder of the lease. I believe that these modifications satisfy the need to prevent avoidance activities, but allow for genuine transactions to be carried on unhindered.
Section 100 aims to prevent the use of the break-up of a VAT group as a way of avoiding VAT on immovable property which had been brought into the group and for which deductibility had already been claimed. Section 101 introduces mechanisms to address the issue of payment of VAT by non-resident performers and mobile traders when they operate in the State. These replace existing mechanisms which had to be replaced by virtue of the adoption of an EU directive on the treatment of fiscal representatives. Section 103 provides for the increase in the standard rate of VAT from 20% to 21% announced in the budget. This increase from 1 March 2002 will provide necessary additional revenue for the Exchequer.
Sections 113 and 114 give effect to the budget realignment of the investor stamp duty rates for transfers of new and second-hand residential property with those for owner occupiers, other than first-time buyers, purchasing second-hand residential property. As I indicated earlier, this measure, together with others, was designed to encourage investment in the provision of rented residential accommodation.
Sections 116 to 122, inclusive, deal with capital acquisitions tax. Existing provisions provide that where a farmer has obtained 90% agricultural relief for CAT purposes on the gift or inheritance of certain farmlands and these lands are subsequently acquired from the farmer under a compulsory purchase order within six years of the transfer, the CAT relief given will be clawed back unless the lands are replaced within four years by other agricultural property. Section 116 provides for this period for replacement for such cases to be extended to six years.
Section 121 brings the base date for aggregation for gifts or inheritances liable for CAT forward from 2 December 1988 to 5 December 1991. This measure takes effect for all gifts or inheritances taken on or after 5 December 2001, as announced in the budget. Certain tax liabilities can be discharged by way of a donation of an approved heritage item to the national collections. Section 124 increases the annual limit for all objects given in a year from €3.8 million to €6 million as well as providing other amendments to improve the operation of the scheme.
Sections 126 to 135, inclusive, deal with Revenue powers, penalties and administration. These measures implement recommendations in the final report of the sub-committee of the Committee of Public Accounts on DIRT and strengthen the penalties regime for failure to make a tax return. They also strengthen Revenue powers in a number of areas. The main provisions are as follows. The penalty for failure to account properly for DIRT or dividend withholding tax will be made a tax geared penalty, that is, it will be a percentage of the amount underpaid. Tax evaders will no longer be able to escape tax geared penalties simply by failing to make a tax return. Revenue's power to obtain a court order to obtain information from financial institutions is being extended to make it more easily available in Customs and Excise investigations. This is particularly targeted at cigarette smuggling. The range of records which can be accessed in a tax audit is being extended and dividend withholding tax is being brought within Revenue's power of audit. Publication of the names of tax defaulters where the settlement figure is greater than €12,700 is being extended to include Customs and Excise settlements. Existing provisions on tax clearance are being converted into a generally applicable procedure covering applications for tax clearance for whatever reason other than those already specifically catered for. Tax clearance provisions are being extended to all liquor licences and permits for public places in which amusement machines are located.
Other changes are also being introduced to arrangements in these areas. Where an under payment of tax arises from a relatively minor default on the part of the taxpayer, specifically where the penalty element is 15% or less, the case will not be published. Such cases will be confined to situations where the nature of the default is merely "insufficient care" on the part of the taxpayer. If there is gross carelessness or deliberate default, the case will be published. Also, the basis for calculating the interest charged by Revenue on unpaid tax and paid by Revenue on overpaid tax is being altered from a monthly to a daily basis.
Senators will be aware that I indicated in my budget speech that I expect to receive certain funds this year from the Central Bank. In other EU member states the economic benefit of coin issuance goes to the member states rather than to their central banks. In Ireland, we have up to now left this economic benefit with the Central Bank, even though the role of the Central Bank in relation to coin issue is that of agent of the Minister. This is an anomaly vis-à-vis European practice so I am bringing Irish practice into line with the norm by providing that these moneys should come to the Exchequer. I have consulted the European Central Bank about this provision and it has no objection.
Section 137, therefore, empowers the Minister for Finance to direct the Central Bank to pay into the Exchequer the accrued net proceeds arising from the issue of coin. Senators will be aware that I recently sponsored legislation to reunite holders of dormant funds in bank accounts with their own money. I am, with this provision, reuniting the Exchequer with some money of its own.
In my time as Minister, in my various Finance Bills, I have made fundamental changes to the tax system. I have delivered reduced tax rates across the board – income tax, corporation tax and capital taxes – and made the overall system fairer. I have also provided the Revenue Commissioners with resources, both in terms of manpower and statutory powers, to carry out their duties.
I hope the House has benefited from the outline I have given of the provisions in the Bill. I look forward to the debate on the Bill which I commend to Seanad Éireann.
