I propose to take Questions Nos. 68 and 69 together.
I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of hotel capital allowances is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years 2004 to 2007, the latest year for which this information is available. The relevant figures of cost to the Exchequer are set out in the following table alongside the figures for numbers of claimants:
Costs to the Exchequer of Hotel Capital Allowances
Year
|
Tax Cost
|
Numbers of claimants
|
|
€m
|
|
2004
|
37.7
|
611
|
2005
|
67.0
|
1,038
|
2006
|
106.6
|
1,515
|
2007
|
118.0
|
1,893
|
The estimated relief claimed has assumed tax foregone at the 42% rate for 2004 to 2006 and 41% for 2007 in the case of individuals and 12.5% in the case of companies for all years. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax.
For the tax year 2003 and earlier years claims for tax incentive schemes on property were aggregated in tax returns with other claims and could not be distinguished from other reliefs claimed. Accordingly, the specific information on costs for 2003 and earlier years are not available. I am advised by Revenue that they are not in a position to provide data for 2008 and 2009 as the tax returns for those years are either being processed currently or are not yet due.
As regards projections for 2010, projections for income tax receipts are based on assumed movements in macro-economic parameters and not by reference to the costs of individual tax reliefs. Accordingly, I am not in a position to provide the projected cost data requested by the Deputy for the year 2010 in relation to the above-mentioned relief.
I have been informed by the Revenue Commissioners that the information requested on tax returns does not require the number of qualifying hotels to be specified or to distinguish between accelerated allowances and other capital allowances. Accordingly, the specific information requested by the Deputy in respect of these matters is not available.
It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return form 12 is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return form 11.