Written Answers Nos. 1 - 88
64. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade the basis upon which it was decided where to spend the public funding on promoting the Irish Presidency and if moneys were spent on any newspaper supplements or advertisements; and if he will make a statement on the matter. [33979/13]
View answer65. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if moneys were spent on promoting or outlining achievements during Ireland's EU Presidency after the Presidency was concluded; and if he will make a statement on the matter. [33980/13]
View answer67. Deputy Brendan Smith asked the Minister for Foreign Affairs and Trade the cost associated with publication of the special report on the Irish Presidency of the Council of the European Union in the Irish Independent on 5 July 2013, the Metro Herald on 2 July 2013 and any other similar publications, either online or printed, within the past month or planned; and if he will make a statement on the matter. [33988/13]
View answerI propose to take Questions Nos. 64, 65 and 67 together.
In the European Year of Citizens, we felt it important to keep Irish citizens informed on the developments of the Irish Presidency through a modest cost-efficient information campaign. An information feature was published in the Metro Herald on 9 January. Coinciding with the visit of the College of the European Commission to Dublin, the feature marked the start of the Presidency, the 40th anniversary of Ireland joining the EEC and the European Year of Citizens. It also drew attention to the Presidency website www.eu2013.ie as a source of ongoing information for the public about the Presidency and about Ireland in Europe. This feature cost €14,000 plus VAT. Metro Herald was again used for an information feature on 2 July to outline the results of the Presidency as it came to an end. To provide information beyond Dublin and the surrounding counties, a further information feature was published with a national newspaper, the Irish Independent, on 5 July. Each of these features cost €14,000 plus VAT.
These features were placed through the advertising agency which holds a framework contract for print advertising with the government; the agency was consulted as to the reach achieved by such features, the optimum timing for publication, the availability of specific dates and of course maximising value for money given the limited budget available. We secured 37 billboard posters for Dublin city centre from Dublin City Council as part of their scheme – there was no rental cost for these and minimal design cost as we reused the Presidency branding already developed. There was no online or broadcast advertising undertaken and no further publications are planned.
As is customary for an EU Presidency, a report outlining our legislative results over the six months was produced on 1 July. The cost incurred were €6,236.10 for the design of the 100-page report in four language versions and €3,891.96 for translation. This document, produced within a tight turnaround time, is available for download on the Presidency website at www.eu2013.ie in all four languages. There was also a limited print run of this report which was managed by the in-house printing capacity in the Department of Finance.
These modest outlays will be covered from within the Presidency budget in the Department of the Taoiseach. As you may be aware, the overall budget for the 2013 Presidency was set at €60 million, excluding security costs. This amounted to an overall figure in excess of 40% less than the cost of the 2004 Presidency. With some costs still to be determined, it is now clear at this stage that projected Presidency spending will come under the original Presidency budget of €60m. The revised projected Presidency spend is now €51m, a saving of at least €9m. As the Presidency concludes and as final payments are made, a full financial report will be published later this year setting out the final cost of the Presidency.
66. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will list the national and local newspapers that his Department would have placed articles in on a commercial basis in the past six months; and if he will make a statement on the matter. [33981/13]
View answerMy Department has not placed any articles on a commercial basis with any national or local newspapers in the past six months.
68. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade if there will be a further round of emigrant support programmes brought on stream later this year. [34000/13]
View answerThe 2013 grant round for the Department of Foreign Affairs and Trade’s Emigrant Support Programme closed on 20 February 2013. Since then applications received for 360 projects from 16 countries have been considered. The focus in 2013 will be on key frontline welfare and advisory services and on projects aimed at supporting new arrivals. I expect to be in a position to make announcements on this year’s grants shortly. I am pleased that, despite the difficult financial situation we face, the Government has maintained the 2013 funding for the ESP at €11.59 million, the same level as 2012. The next opportunity to apply for funding for the Emigrant Support Programme will be in early 2014.
69. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he will outline, in tabular form, the most recent visit that ambassadors and officials from his Department have taken from their various Embassies of Ireland, where they are permanently based around the world, to countries that particular embassies have secondary accreditation to other nations; the general guidelines that are issued from his Department for officials visiting countries where secondary accreditation is in place; and if he will make a statement on the matter. [34072/13]
View answerMy Department maintains a network of 73 overseas missions consisting of 56 Embassies, 7 multilateral missions, and 10 Consulates General and other offices overseas.Secondary accreditations are an important and cost-effective way of promoting Ireland in countries where we do not have a resident office and of maximising the reach of the Missions network. Thirty-five of our bilateral Embassies carry secondary accreditations in respect of one or more countries. In all some 85 countries are covered by these arrangements.
Servicing these concurrent responsibilities places significant additional demands on the Embassies concerned, which are mostly small. A large proportion has only two diplomatic officers. A number have multiple side accreditations extending over very wide geographic areas. Each of our embassies implements its own business plan which includes a programme of work to support relations with any countries of secondary accreditation, avail of suitable opportunities to promote Irish economic interests and provide consular assistance to Irish citizens. This programme may include a number of visits to the countries in question, as opportunities and needs arise, as well as other contacts.
The schedule of such visits is not maintained centrally and gathering and compiling the data requested by the Deputy in the time available would require a disproportionate diversion of scarce and diminishing staff resources from pressing priority Departmental business.
70. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the discussions he has had with his European counterparts regarding the current political crisis in Egypt; if the EU is proposing to adopt a common approach on this crisis; and if he will make a statement on the matter. [34128/13]
View answerI continue to follow developments in Egypt with great concern, not least the resulting loss of lives and hundreds of casualties which I deeply regret. In particular, it is important that the events of 7 July which resulted in considerable loss of life at the Republican Guard HQ in Cairo should now be thoroughly and impartially investigated. The situation in Egypt will be discussed at the Foreign Affairs Council due to take place in Brussels on 22 July which I will attend. Considerable discussion has already taken place at senior official level in recent days regarding the EU response to the crisis and how Europe can best contribute to bringing about a peaceful and democratic solution to the crisis. High Representative Ashton has also issued a number of statements on the situation, most recently on 8 July. As in my own statement of 4 July, the High Representative has emphasised that the immediate priority is for all sides to refrain from any recourse to violence and show restraint.
In common with other EU Partners, the Government strongly believes that the only solution to the situation with which we are now confronted in Egypt lies through promoting a fully inclusive process of political dialogue and reconciliation aimed at the swiftest possible restoration of democratic rule and civilian-led Government, following free and fair legislative and presidential elections. The interim President, Mr. Al-Mansour, has now proposed a road map for the restoration of the constitution and of normal democratic government which now needs to be discussed and agreed by all parties in Egypt. It also remains essential for all actors and those now in positions of responsibility in Egypt to commit to and ensure the full protection of basic human rights, fundamental freedoms and rule of law.
It is imperative for the interim Presidency and those in position of influence to reach out to all political forces, without any exclusion, and ensure all strands of Egyptian society can truly contribute to the building of a genuine democracy and improved economic circumstances. Conciliatory moves to defuse the current crisis, including the release of those detained for political reasons, are also essential. As I have stated previously, Egypt and its people are experiencing a difficult transition to democracy. Ireland and our EU partners, however, remain fully committed to providing whatever support it can to assist the Egyptian people along this path.
71. Deputy Sandra McLellan asked the Minister for Finance if he will maintain the current rate of 9% VAT for the restaurant sector; and if he will make a statement on the matter. [33946/13]
View answerAny proposals to maintain the 9% rate into 2014 will be considered in the context of Budget 2014.
72. Deputy Andrew Doyle asked the Minister for Finance further to Parliamentary Question No. 169 of 28 May 2013, if he will detail the representations received by him and his Department from industry stakeholders and organisation regarding the markets in financial instruments directive regarding the expansion or watering down of the directive; if he will provide a full list of the persons and organisations from whom these representations came; the number of meetings he and/or his Department officials have had with stakeholders and interested parties regarding MiFID; with whom they were held and the date on which they took place; and if he will make a statement on the matter. [33996/13]
View answerThe table lists the relevant details which the Deputy has requested. The Department was represented at the meetings by one or a number of officials on the MiFID Presidency team, and the Central Bank were represented at some of these meetings by one of more of its officials that were assigned to the MiFID team. Discussions on the MiFID Directive also arose in the course of various other general meetings held with representative groups.
10 July 2013
Details of representations received and meetings held regarding MiFID/MiFIR
|
Name of Organisation |
Date of Written Submission |
Date of Meeting (if held) |
|
Agency for Cooperation of Energy Regulation |
8 April, 28 May 2013 |
|
|
Alternative Investment Management Association |
30 Nov 2012 |
|
|
Association for Financial Markets in Europe |
2012: Sept 2013: 18 Jan, 26 Feb, 13 Mar, 16 Apr |
6 Dec 2012 6 Mar 2013 |
|
Association Francaise des Marches Financiers |
26 April 2013 |
|
|
Barclays |
9 Nov, 12 Dec 2012 |
26 Oct 2012 |
|
Bats Chi-X |
5 Dec 2012 |
|
|
Blackrock |
16 May 2013 |
20 Dec 2012 |
|
BNY Mellon |
26 Oct 2012 |
26 Oct 2012 |
|
British Banking Association |
22 Nov 2012 27 Feb 2013 |
|
|
Business Europe |
5 Dec 2012 |
|
|
Caisse de Depots |
12 Nov 2012 |
|
|
Commodity Markets Council |
22 Oct, 20 Feb |
|
|
Deutsche Borse |
19 Dec 2012 |
|
|
DONG Energy |
14 Feb 2013 |
12 Mar 2013 |
|
EEX, ICE-Endex, Nasdaq OMX, Powernext |
4 Jan, 21 May 2013 |
|
|
Electricity Association of Ireland |
19 Feb 2013 |
|
|
EuroFinuse |
20 Feb, 4 Apr 2013 |
|
|
European Banking Federation |
2012: 20 Nov, 26 Nov, 2013: 4 Jan |
|
|
European Federation of Financial Advisers and Financial Intermediaries |
2 May 2013 |
|
|
European Fund and Asset Management Association |
12 Dec 2012 |
|
|
European Private Equity and Venture Capital Association |
5 Dec 2012 |
|
|
European Savings Bank |
21 Mar 2013 |
4 Dec 2012 |
|
Federation of European Securities Exchanges |
2012: 7 Nov, 20 Nov 2013: 18 Feb, 25 Mar |
12 Nov 2012 |
|
FIA European Trading Association |
2012: 26 Jul, 6 Nov , 14 Nov 2013: 18 Feb, 22 Mar |
12 Nov 2012 |
|
Fidelity Worldwide Investment |
18 Dec 2012 |
|
|
Food Drink Europe |
2 May 2013 |
|
|
FTI Consulting / Citadel |
30 Nov 2012 |
17 Jan 2013 |
|
Futures and Options Association |
2 Oct 2012 |
30 Jul 2012 |
|
Goldman Sachs |
25 Jan 2013 |
|
|
ICE Clear Europe |
12 Dec 2012 9 Apr 2013 |
|
|
Independent Index Providers |
8 April 2013 |
|
|
International Association of Oil and Gas Producers |
9 Jan 2013 |
25 Oct 2012 |
|
International Emissions Trading Association |
Feb 2011 (date of position paper) |
|
|
International Federation of Industrial Energy Consumers |
6 July 2012 |
|
|
International Swaps and Derivatives Association |
2012: 3 Sept, 11 Oct, 16 Oct, 29 Oct 2013: 15 Jan, 9 April, 13 May |
11 July 2012 |
|
Investment Company Institute |
8 Mar 2013 |
|
|
Irish brokers – Davy, Goodbody, Investec, Dolmen |
11 Jun 2013 |
18 Jun 2013 |
|
Irish Stock Exchange |
29 Aug 2012 8 Mar, 11 Jun 2013 |
12 July 2012 28 Feb, 18 Jun 2013 |
|
ITG |
19 Jul 2012 |
|
|
JP Morgan |
2 Oct 2012 |
|
|
Knight Capital rep group of brokerage firms |
30 April 2013 |
|
|
London Stock Exchange |
2012: 19 Jul, 23 Oct, 2013: 14 Feb, 27 Mar, 6 Jun |
10 Oct 2012 |
|
Managed Funds Association |
29 May 2012 |
|
|
Morgan Stanley |
22 Jan 2013 |
|
|
Nasdaq OMX |
8 Oct, 21 Nov 2012 |
|
|
NYSE Euronext |
2012: 7 Dec, 2013: 26 Feb, 2 April, 25 Apr, 30 May. |
12 Dec 2012 |
|
Oxfam |
23 Mar 2012 |
|
|
SOMO – Centre for Research on Multinational Corporations |
Nov 2012 |
|
|
SSE Ireland |
19 Mar 2013 |
|
|
State Street |
20 Feb 2013 |
|
|
Swiss Bankers Association |
14 Sept 2013 |
|
|
Tradeweb |
27 Sept 2012 6 Feb 2013 |
|
|
Trayport, Shell, Exxonmobil, BG |
1 Feb 2013 |
|
|
Union Asset Management Holding |
2 Oct 2012 |
|
|
Wholesale Market Brokers Association |
18 Oct 2012, 15 May 2013 |
30 Nov 2012 |
73. Deputy Joe McHugh asked the Minister for Finance the numbers of new motor-homes that have been registered in 2009, 2010, 2011, 2012 and to date in 2013; if he will consider reviewing the decision by the previous Government to introduce VRT in respect of motor-homes; and if he will make a statement on the matter. [34017/13]
View answerI am informed by the Revenue Commissioners that the following numbers of Motor Homes or Motor Caravans have been registered in the years 2009 to 2013 to date:
|
- |
2009 |
2010 |
2011 |
2012 |
2013 |
|
New |
202 |
250 |
37 |
34 |
27 |
|
Used |
812 |
630 |
270 |
247 |
99 |
|
Total |
1014 |
880 |
307 |
281 |
126 |
Motor Homes or Motor Caravans have been liable since the introduction of VRT, but prior to 2011 they were classified for VRT purposes as Category A, Category B or Category C vehicles, depending on the weight of the vehicle, and were liable to VRT at the rate appropriate to their classification. Since 2011, Motor Caravans are classified as Category B vehicles and are liable to VRT at the 13.3% rate. There are no plans to review the VRT classification of these vehicles.
74. Deputy Clare Daly asked the Minister for Finance if he is satisfied that Allied Irish Banks has a valid licence in accordance with the Central Bank Act 1942 and is lawfully entitled to accept deposits. [34076/13]
View answerI have been informed by the Central Bank that Allied Irish Banks plc holds a banking licence under Section 9 of the Central Bank Act, 1971. This licence allows the bank to conduct banking business. As defined in the Act, “banking business” means business which consists of—
(a) the business of accepting deposits payable on demand or on notice or at a fixed or determinable future date, but excluding deposits with a trader from persons employed by him in his trading business or from his customers in the normal course of his trading business and deposits or instalments in respect of the letting or selling of goods under a hire-purchase agreement or a credit-sale agreement, or
(b) the business aforesaid and any other business normally carried on by a bank.
75. Deputy Heather Humphreys asked the Minister for Finance the number of instances of fuel laundering detected in counties Cavan, Monaghan, Louth, Meath and Donegal for each of the past five years; the number of these cases that were brought to court; the number of convictions arising from these cases; and if he will make a statement on the matter. [34077/13]
View answerI am advised by the Revenue Commissioners that the numbers of fuel laundries detected in the relevant counties for each of the past five years are detailed in the Table. One person found at the oil laundry detected in Donegal in 2011 was prosecuted at Letterkenny Circuit Court on the 29th January 2013 and received a two-year custodial sentence. A second oil laundry prosecution brought before Monaghan District Court on the 20th May 2013 was dismissed on a legal technicality. There are ten oil laundry cases where the Director of Public Prosecutions has directed trial on indictment and which are currently before Monaghan, Dundalk and Trim Circuit Courts. The DPP decided against a prosecution in relation to another case. Prosecution files have been prepared and currently under consideration in respect of two further cases while prosecution files are being prepared in respect of another ten cases. The remaining case forms part of an on-going Garda investigation.
|
Year |
Cavan |
Donegal |
Louth |
Meath |
Monaghan |
Total |
|
2009 |
0 |
0 |
0 |
0 |
0 |
0 |
|
2010 |
0 |
0 |
0 |
0 |
2 |
2 |
|
2011 |
0 |
1 |
1 |
1 |
6 |
9 |
|
2012 |
1 |
0 |
7 |
0 |
3 |
11 |
|
2013 (to date) |
0 |
0 |
2 |
0 |
2 |
4 |
|
Total |
1 |
1 |
10 |
1 |
13 |
26 |
76. Deputy Finian McGrath asked the Minister for Finance if a final report on strengthening the credit union movement has been provided to the troika and the proposals the report contains; and if he will make a statement on the matter. [34097/13]
View answerThe Commission on Credit Unions produced its final Report in March 2012, making recommendations regarding the strengthening of the regulatory framework of credit unions, including more effective governance and regulatory requirements. The key recommendations are in relation to sector restructuring, the details of the new legislative and regulatory framework, and new governance requirements for credit unions. These recommendations informed the preparation of the Credit Union and Co-operation with Overseas Regulators Act 2012. The Act implements over 60 of the recommendations of the Final Report of the Commission on Credit Unions, which was agreed over a nine-month period by all Commission members, including credit union representatives. Although the Troika are familiar with the Commission’s Report, no separate report on credit unions was requested by the Troika.
77. Deputy Michael McGrath asked the Minister for Finance if the banks subject to the mortgage arrears resolution targets programme have reported on their compliance with the targets set for 30 June 2013, when the targets will be set for completion of agreements between borrowers and lenders; and if he will make a statement on the matter. [34117/13]
View answerThe Central Bank has advised me that over the coming period, the Bank will commence publication of additional statistics, designed to provide more information on the level of progress in relation to mortgage arrears resolution. One such additional measure will be the number of newly agreed loan modifications during each reference quarter. This will be captured for both temporary and permanent restructure types. A second additional measure will be the performance of restructured loans. Reporting performance against specific resolution targets, as well as the full suite of KPI’s published by the Central Bank on a quarterly basis, should provide a more complete measure of progress in addressing arrears cases.
Regarding the specific reporting of the targets set out in the Mortgage Arrears Resolution Targets document published last March, section 3.3 of that document sets out the specific reporting requirements by the individual institutions. Institutions are also required to report their performance against public targets on a quarterly basis to the Central Bank. These returns are due to be submitted to the Central Bank not later than 22 working days after quarter end. Regarding the setting of targets for concluded solutions, this matter is under active consideration by the authorities and it is planned to publish targets on concluded solutions in Q3 as per MOU provisions.
78. Deputy Michael McGrath asked the Minister for Finance his plans to address the pension deficit at the Central Bank of Ireland; and if he will make a statement on the matter. [34118/13]
View answerI am informed by the Central Bank that the Central Bank of Ireland Superannuation Scheme has sufficient assets to meet all of its liabilities as prescribed by the Pensions Act. This has been confirmed by the scheme’s actuaries every year since the superannuation scheme was established in 2008 and they continue to monitor the solvency of the scheme on a regular basis. The Central Bank’s superannuation scheme is a funded pension scheme established under the Central Bank and Financial Services Authority of Ireland Act, 2003.
79. Deputy Dan Neville asked the Minister for Finance if persons who are council tenants, have inherited a house which is not habitable as a family unit and they need to obtain a mortgage and planning permission to extend the house have an entitlement to mortgage allowance as vacating tenants moving to private ownership; will they have to either buy or build in the new house to become eligible for mortgage allowance. [34133/13]
View answerI assume the Deputy is referring to mortgage interest relief. On that basis, the position is that mortgage interest relief is not available in respect of interest paid on loans taken out on or after 1 January 2013, except in two specific circumstances which are set out below:
1. Interest paid on a loan taken out in 2013 to construct a home on a site, but only where such site was bought by way of a loan, which itself qualifies for mortgage interest relief, and which was taken out in 2012.
2. Interest paid on a loan to repair, develop or improve a home but only where loan approval was in place in 2012 and part of such loan was drawn down and used in 2012 and the remainder will be used in 2013.
Also, before relief for mortgage interest will be granted, any necessary planning permission must have been in place on or before 31 December 2012. Based on the information provided by the Deputy, it would appear that neither of the circumstances outlined above would apply in this particular scenario.
80. Deputy Aodhán Ó Ríordáin asked the Minister for Finance in July 2011, in response to a parliamentary question, in which he stated that the profits earned from the provision of stallion stud services in the income tax and corporation tax returns for 2009 were €500,000 for income tax and €4 million for corporation tax, if he will supply the corresponding profit figures for 2010, 2011 and 2012. [34162/13]
View answer81. Deputy Aodhán Ó Ríordáin asked the Minister for Finance in July 2011, in response to a parliamentary question, in which he stated that the profits earned from the provision of stallion stud services in the income tax and corporation tax returns for 2009 were €500,000 for income tax and €4 million for corporation tax, if he will quantify the amount of tax paid to the Exchequer on these profits. [34163/13]
View answer82. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will quantify the income tax paid on the profits earned from the provision of stallion stud services in the years 2010, 2011 and 2012. [34164/13]
View answer83. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the amount of tax generated by the Exchequer from stallion fees for each of the years, 2008 to 2012 inclusive, since the introduction of the current scheme for taxation of stallion profits and gains on 1 August 2008. [34165/13]
View answer84. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will identify the amount of tax revenue to the Exchequer foregone as a result of the current scheme for the taxation of stallion profits and gains introduced on 1 August 2008. [34166/13]
View answer85. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the reason the Revenue Commissioners do not specifically identify tax collected under the current scheme for the taxation of stallion profits and gains introduced on 1 August 2008, which has enabled many stallion owners to shelter tax and, as a result, pay no tax or very little tax to the Exchequer. [34167/13]
View answer86. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the reason he has no visibility of the amount of tax collected and foregone under the current scheme for the taxation of stallion profits or gains introduced on 1 August 2008. [34168/13]
View answer87. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will request the Revenue Commissioners to provide a report with an analysis of the tax paid by corporate and individual stallion owners for the duration of the current scheme for the taxation of stallion profits or gains introduced on 1 August 2008. [34169/13]
View answer88. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the reason he has no visibility whatsoever of the contribution of revenues to the Exchequer as a result of taxation legislation covering stallion profits and gains, particularly in view of the scale of the horse breeding sector here. [34170/13]
View answerI propose to take Questions Nos. 80 to 88, inclusive, together.
Profits or gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by a stallion or from the sale of rights to such services have been taxable since 1 August 2008. Previously, these profits were exempt from income and corporation tax. Figures for the profits earned from the provision of stallion stud services were required to be returned in income tax and corporation tax returns from the year 2009 onwards. The figures thus entered are as set out in the following table for the tax years 2009 to 2011, the most recent available.
Profits earned from the provision of stallion stud services
|
Tax Year |
Income Tax Returns €m |
Corporation Tax Returns €m |
|
2009 |
0.5 |
4.0 |
|
2010 |
0.7 |
2.3 |
|
2011 |
0.7 |
2.2 |
In interpreting these figures it is important to bear in mind that they are profits as opposed to the total of the fees earned by an owner. The fees represent turnover, as opposed to profits. Income tax and corporation tax are charged, of course, on profits or gains rather than turnover. In calculating the profits or gains, stallions are treated as stock in trade which means that income from stud fees and profits or gains on the sale of the stallions are fully taxable in the hands of both corporate and individual owners.
In computing profits, a write-off over 4 years of the “initial value” of the stallion is allowed as a deduction for tax purposes. This reflects the fact that some stallions have a short nomination life and also takes into account that the majority of stallions are unsuccessful at stud. The impact of the deduction on taxable profits during the write-off period is directly related to the success, or otherwise, of the stallion. Without this provision the cost of a stallion would, under normal rules, be allowed as a deduction upon its disposal or death.
The “initial value” of a stallion is its market value on the later of 1 August 2008 (i.e. the date the profits became taxable) or when it is purchased for, or appropriated to, stud activities. For this purpose, “market value” is the price the stallion would fetch on the open market or, where the purchaser and vendor are not connected and the transaction is at arm’s length, the price actually paid.
The Deputy has referred to the “amount of tax revenue foregone as a result of the current scheme for the taxation of stallion profits”. However, as I have outlined, the profits or gains from this activity – as opposed to the turnover- are taxable in the same way as for other activities the profits or gains of which are liable to income tax or corporation tax.
The Deputy has also asked about the contribution to tax revenues arising from the taxation of these profits or gains. However, as I advised Deputy McGrath in my reply of 11 June last (PQ Ref No. 27413/13), I am informed by the Revenue Commissioners that as statistics on income tax and corporation tax receipts do not generally distinguish between the yields from different sources of income, the figures of tax yields from stallion stud profits are not separately identifiable. All taxpayers, both individual and corporate, can have a number of sources of income, and can avail of a variety of different deductions and reliefs, all of which affect the final tax liability. In addition the profit figures shown above may themselves be reduced by capital allowances or losses to which that taxpayer may be entitled. Therefore, it is not possible to infer from these figures the amount of tax that is generated solely from the taxation of these profits or gains.
Income tax and corporation tax are self-assessed taxes. Full details of deductions claimed in calculating profits are not required when a return is being filed. Should a taxpayer be selected for audit, then these details have to be provided. It is not clear what purpose would be served by requiring a detailed analysis of the deductions made in arriving at the profits or gains from stallions.
Finally, I do not propose to ask the Revenue Commissioners to provide a report analysing the tax paid by corporate and individual stallion owners since August 2008. The Commissioners keep the general operation of the tax system under constant review using both statistical information and information gathered from audits and other interventions with taxpayers. Horse breeding and stud farming are subject to a similiar system of income tax on profits as other sectors and are subject to the same compliance programmes by the Commissioners as any other sector.
