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Tax Code.

Dáil Éireann Debate, Tuesday - 21 June 2005

Tuesday, 21 June 2005

Questions (311, 312, 313, 314)

Gerard Murphy

Question:

332 Mr. G. Murphy asked the Minister for Finance if repayment of tax will issue to a person (details supplied) in County Cork; and if he will make a statement on the matter. [20695/05]

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Written answers (Question to Minister for Finance)

I am advised by the Revenue Commissioners that a repayment in respect of the year ended 31 December 2004 issued to the taxpayer on 27 May 2005.

Sean Fleming

Question:

333 Mr. Fleming asked the Minister for Finance the details of the exemption from income tax of disability pensions paid under the Army pensions Acts and any other exemptions from income tax of any other disability pension paid to other civil or public servants; and the details of the exemption from income tax of disability benefit and disability allowance granted by the Department of Social and Family Affairs. [20718/05]

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The tax treatment of the different types of income mentioned by the Deputy is as set out in the following table.

Nature of Income

Income Tax Status

Relevant legislation

Wound and Disability pensions payable under the Army Pensions Acts 1923-1980

Such part of the pension that is solely attributable to the wound or disability is exempt from income tax

Section 204 Taxes Consolidation Act 1997

Disability pensions payable to other civil or public servants

Taxable

Section 19 and 112 Taxes Consolidation Act 1997

Disability Benefit payable by the Department of Social & Family Affairs

Disability Benefit payable for the first 36 days (6 weeks) in a year of assessment is exempt from income tax Disability Benefit payable in respect of qualifying children is exempt from income tax All other amounts payable in the relevant year are taxable

Section 126 Taxes Consolidation Act 1997

Disability Allowance payable by the Department of Social & Family Affairs

This is a means tested payment which in practice is not taxed

Paudge Connolly

Question:

334 Mr. Connolly asked the Minister for Finance his plans for the future of the 2% motor insurance Government levy; if he proposes to remove it at any time in the future; the function or purpose of this levy; and if he will make a statement on the matter. [20774/05]

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The 2% stamp duty, levied on non-life insurance premia, is part of the stamp duty system and applies to most categories of non-life insurance business, including motor insurance. It was introduced in the Finance Act 1982 at 1% and was subsequently increased to 2% in 1993. This is a modest levy compared with that in other EU member states, most of which have such a tax which is generally levied at a significantly higher rate than in Ireland, typically between 9% and 15%.

The purpose of this non-life levy is to broaden the stamp duty base, thereby raising additional revenue. It is a significant source of revenue to the Exchequer and yielded €97.7 million in 2004 across all relevant categories of insurance. It is not possible to ascertain what portion of this relates to motor insurance premia. I have no plans to reduce or remove it.

Joe Callanan

Question:

335 Mr. Callanan asked the Minister for Finance the total cost to the Exchequer of introducing a waiver for VRT on MPVs. [20775/05]

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I am advised by the Revenue Commissioners that according to their data the amount of VRT paid in 2004 in respect of multi-purpose vehicles, MPVs, was €20 million. That amount is based on the classification as entered by the customer and may not be accurate in all cases.

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