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Dáil Éireann díospóireacht -
Wednesday, 3 May 1995

Vol. 452 No. 3

Written Answers. - Tax Relief on Covenant.

Liam Aylward

Ceist:

82 Mr. Aylward asked the Minister for Finance if he will review the case of a person (details supplied) in County Kilkenny whose tax relief on his covenant has been reduced in view of the 5 per cent income restriction announced in the budget. [8035/95]

I have been advised by the Revenue Commissioners that, in accordance with the provisions of the 1995 budget, relief in respect of a deed of covenant has been granted to the taxpayer at the rate of 5 per cent of his total income for the tax year 1995-96.

As you are aware, the Government decided to extend the 5 per cent of income restriction which applied to tax relief on covenants between a parent and child to all covenants with effect from 6 April 1995 with the exception of those in favour of the permanently incapacitated. This change was introduced as part of the restructuring of State support for third-level education and also to curb the growing cost of covenant tax relief to the Exchequer.
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