Dáil Éireann Debate, Tuesday - 1 February 2005
54 Mr. Gilmore asked the Minister for Finance the amount in tax relief claimed under the business expansion scheme for the past year for which figures are available; the nature of the cost benefit analysis which is planned of the BES; and if he will make a statement on the matter. [2468/05]
View answerI am informed by the Revenue Commissioners that the estimated cost of the business expansion scheme for 2004 is in the region of €22 million. As the Deputy will be aware, in budget 2005, I announced that my Department, in conjunction with the Revenue Commissioners, would undertake a detailed review of certain tax incentive schemes and tax exemptions this year. There are a number of elements to the review which is already under way. It will evaluate the impact and operation of certain incentive schemes and exemptions, including their economic and social benefits for the different locations and sectors involved and to the wider community, including external consultancy work on the evaluation of property based tax incentive schemes. It will examine the degree to which these schemes allow high income individuals to reduce their tax liabilities. As well as examining relevant international approaches, the review will also include a consultation process seeking submissions on measures that could be introduced to balance the benefit of such reliefs and the extent to which such incentives and exemptions are used by high earners to reduce their tax bill.
The review will also incorporate an examination by the Department and the Revenue Commissioners of data that are due to come to hand in late 2005 in relation to certain exempt income, that is, woodlands, stallions and greyhounds as well as data already available on other exemptions, for example, for artists and on other tax incentive schemes, including the BES and SCS.
Obviously, in examining the data on the BES and SCS, consideration will be given to the fact that these schemes have already been examined in detail prior to budget 2004 and have been extended to 31 December 2006. The issues covered as part of the examination of the schemes prior to budget 2004 are set out in TSG paper 03/16 which can be found on my Department's website www.finance.irlgov.ie.
