Dáil Éireann Debate, Tuesday - 17 February 2009
168 Deputy Arthur Morgan asked the Minister for Finance the breakdown of the estimated €1 billion saving to the Exchequer referred to in the reply to Parliamentary Question No. 170 of 4 February 2009; if relief for these deductions and reliefs was confined to the standard rate of income tax; and if he will make a statement on the matter. [6012/09]
View answerI am advised by the Revenue Commissioners that a breakdown of the savings to the Exchequer, estimated to be of the order of €1 billion, from confining to the standard rate of income tax those deductions and reliefs which are allowable for tax at an individual's marginal rate is set out as follows for the year 2005, the most recent year for which the necessary detailed information is available except where otherwise stated. As I stated in my previous reply, this estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such a change or the economic effect of such a change. This applies in particular to the BES, Film Relief, Pensions Contribution Relief and Capital Allowances regime. The standard rating of employee pension reliefs would also have an impact on workers' take home pay.
|
Tax Relief Provision |
2005 Cost |
Saving to Exchequer if tax relief was confined to the standard rate of income tax |
|
€m |
€m |
|
|
Person Taking Care of Incapacitated Taxpayer |
1.8 |
0.8 |
|
Health Expenses |
134.0 |
55.0 |
|
Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received |
3.2 |
1.4 |
|
Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties. |
22.2 |
10.0 |
|
Expenses Allowable to Employees under Schedule E |
65.0 |
25.0 |
|
Donations to Approved Bodies |
34.0 |
15.7 |
|
Donations to Sports Bodies. |
0.2 |
0.1 |
|
Retirement Relief for certain Sports Persons. |
0.3 |
0.2 |
|
Revenue Job Assist allowance |
0.4 |
0.07 |
|
Allowance for seafarers |
0.4 |
0.1 |
|
Investment in Corporate Trades (BES) |
16.1 |
8.5 |
|
Investment in Seed Capital |
1.3 |
0.6 |
|
Stock Relief |
2.0 |
0.7 |
|
Relief for expenditure on significant buildings and gardens |
3.3 |
1.2 |
|
Donation of Heritage items |
5.8 |
1.9 |
|
Capital Allowances (Income Tax only) |
734.5 |
305.0 |
|
Rented Residential Relief — Section 23 |
239.7 |
125.6 |
|
Investment in Films |
15.7 |
8.2 |
|
Employees’ Contributions to Approved Superannuation Schemes* |
540.0 (2006) |
255.0 |
|
Retirement Annuity Premiums* |
380.0 (2006) |
196.0 |
|
Personal Retirement Savings Accounts* |
120.0 (2006) |
56.0 |
|
Total |
2,319.9 |
1,067.07 |
*Estimate of cost revised for 2006 as part of the work on the Green Paper on Pensions.
