asked the Minister for Finance if his attention has been drawn to the fact that persons arranging bank loans, in order to avail of the budget incentive scheme, to pay all agreed tax liability to the Revenue Commissioners before 30 September 1988 will not get a tax allowance on the interest paid in such loans; if so, if he will request the Revenue Commissioners to change the regulations to make such a provision; and if he will make a statement on the matter.
Written Answers. - Budget Tax Incentive Scheme.
52.
I am advised by the Revenue Commissioners that as the interest on a bank loan arranged by a person for the purposes of availing of the budget incentive scheme is not interest wholly and exclusively laid out or expended for the purposes of a trade, profession or any other qualifying purpose, no tax relief would be available in respect of such interest. The introduction of such a tax allowance would require amending legislation and I do not propose to introduce such legislation. The Deputy will appreciate that persons qualifying for the incentive to clear arrears of tax receive a waiver of appropriate interest and penalties. I consider that it would be unjustified to give a further concession to such persons in the form of the tax allowance envisaged by the Deputy.