James Bannon
Question:108 Deputy James Bannon asked the Minister for Finance if he will remove VAT on local authority provided leisure activities; and if he will make a statement on the matter. [19745/10]
View answerThursday, 13 May 2010
Questions (109, 110)
Written answers
On 16 July 2009 the European Court of Justice ruled in case C-544/07 against Ireland, that Ireland should amend its VAT legislation to provide that services provided by State and public bodies, including local authorities, are in general subject to VAT. The Finance Act 2010 provided that such services will become taxable from 1 July 2010.
With regard to the definition of not-for-profit activity under VAT legislation; under the EU VAT Directive treating local authorities and State bodies as not-for-profit organisations is not possible. The Directive provides distinct and separate regulation for not-for-profit bodies and State bodies, including local authorities. It is not possible to exempt from VAT any activity of a State body, including a local authority, or indeed any other business, simply because it is not making a profit.
Nonetheless, provision was made in the Finance Act that VAT on the supply of sports and community-type facilities by public bodies will come into effect not on 1 July but by Ministerial order. This will allow for a more complete examination of the issues, including an analysis of how the new rules might best be implemented. In practical terms this means that, for the present, the supply by local authorities of football pitches, swimming pools, halls etc to local clubs and societies will not be subject to VAT.
Ciaran Lynch
Question:109 Deputy Ciarán Lynch asked the Minister for Finance the number of landlords eligible for tax relief on interest paid on borrowings to purchase investment properties on a county basis; and if he will make a statement on the matter. [19747/10]
View answerI am informed by the Revenue Commissioners that the relevant information available on numbers of claimants who claimed income tax relief for a deduction for interest on borrowings to be offset against rental income assessable under Case V, Schedule D is based on personal income tax returns filed to date by non-PAYE taxpayers for the year 2008, the latest year for which this information is available. On this basis the numbers of claimants are as set out in the following table.
The figures are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended. 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. This return is the source of the figures provided in this reply.
An estimated breakdown of the figures on a geographical basis is available on the basis of "bailiwick", meaning, in this case, the jurisdiction or boundaries within which Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt and which equates geographically with "county".
It should be noted that the county description applies to the claimant of the tax relief but is not necessarily the county in which the property to which the tax relief applies is situated.
The Deputy will no doubt be aware that the level at which interest repayments can be claimed against tax for residential rental properties was reduced from 100% to 75% in section 5 of the Finance Act 2009 at an estimated full year yield of €95 million.
|
County |
2008 |
|
Carlow |
979 |
|
Cavan |
1,391 |
|
Clare |
2,342 |
|
Donegal |
2,074 |
|
Galway |
6,590 |
|
Kerry |
2,854 |
|
Kildare |
5,721 |
|
Kilkenny |
1,799 |
|
Laois |
1,029 |
|
Leitrim |
563 |
|
Limerick |
3,624 |
|
Longford |
731 |
|
Louth |
2,057 |
|
Mayo |
2,621 |
|
Meath |
4,617 |
|
Monaghan |
1,035 |
|
Offaly |
1,208 |
|
Roscommon |
1,158 |
|
Sligo |
1,271 |
|
Tipperary |
3,038 |
|
Waterford |
2,235 |
|
Westmeath |
1,963 |
|
Wexford |
2,815 |
|
Wicklow |
3,430 |
|
Dublin |
33,388 |
|
Cork |
12,661 |
|
Other/foreign |
1,523 |
|
Total |
104,717 |