Dáil Éireann Debate, Wednesday - 5 July 2017
79. Deputy Thomas P. Broughan asked the Minister for Finance the annual cost of section 481 tax relief since it was introduced; if he will provide a cost benefit analysis of this tax expenditure in 2015 and 2016; and if he will make a statement on the matter. [31676/17]
View answerI am advised by Revenue that prior to 2015, the Film Relief scheme, provided for by Section 481 Taxes Consolidation Act (TCA) 1997, operated by giving relief to individuals and companies investing in the film industry. The information in respect of the tax cost and number of investors who claimed relief under section 481 for the years 2004 to 2014 is available on the Revenue Commissioners webpage at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
With effect from 2015, the scheme provides direct support to film producer companies in the form of a tax credit. However, where an application was received up to and including 14 December 2014, it was processed under the previous scheme. Investors availing of the old scheme can choose the year in which to claim their relief. The provisional number of claimants of the tax credit in 2015 is 1,102 with a cost to the Exchequer of €69.7 million. Data for 2016 are not presently available.
As a requirement under the Department of Finance tax expenditure guidelines (http://budget.gov.ie/Budgets/2015/Documents/Tax_Expenditures_Oct14.pdf) reliefs such as section 481 are required to be reviewed periodically. A full analysis and review of the relief will be undertaken in line with the tax expenditure guidelines.
