Joanna Tuffy
Question:60. Deputy Joanna Tuffy asked the Minister for Finance the estimated tax yield from the abolition of reliefs (details supplied); and if he will make a statement on the matter. [39607/12]
View answerWednesday, 19 September 2012
Questions (60)
Written answers
I assume the Deputy is seeking an estimate of the yield that would accrue to the Exchequer, should all of the tax reliefs specified for the purposes of the restriction of reliefs be abolished. The most recent report by the Revenue Commissioners analysing the high income individuals' restriction is in respect of the 2010 tax year. This report was published by my Department early last month and is available at http://www.taxpolicy.gov.ie. Table 3 of that report shows the total value of the underlying claims in respect of specified reliefs as being €373 million. For illustration, if the total abolition of the relevant reliefs is what the Deputy has in mind, the full year yield, in terms of the 2010 claims, estimated at an assumed rate of income tax at 41%, would be in the order of €150 million.
It would be important to undertake an evaluation of each individual specified relief and the socio-economic objectives which each was designed to encourage, before the abolition of any of the reliefs could be considered. It is also important to note that many of the specified reliefs have already been abolished. However, because of the nature of some of those reliefs, individuals have a right to claim them for a seven-year period. There are a number of legal considerations that would hinder the abolition of the reliefs during such run down periods.