Dáil Éireann Debate, Tuesday - 8 March 2005
219 Ms Burton asked the Minister for Finance the estimates Ireland has submitted for 2003 to the European Commission of the income from stallion fees that was exempt from tax under the tax relief scheme for such income; and if he will make a statement on the matter. [7520/05]
Amharc ar fhreagra223 Ms Burton asked the Minister for Finance the amount of the estimate for 2003 of the stallion income earned, as recently submitted by his Department to the European Commission. [7567/05]
Amharc ar fhreagraI propose to take Questions Nos. 219 and 223 together.
In relation to the cost of the exemption, the European Commission's directorate general for agriculture and rural development in their letter of 20 April 2004 to the Irish authorities sought, inter alia, information on the amounts concerned. If no detailed official statistics can be provided, then the Irish authorities are requested to give best estimates on the number of holdings concerned, the number of stallion nominations performed, the relevant tax brackets and the regular price paid for such nominations.
In response, the Commission was informed by the Irish authorities that, as the measure represented tax exempt income, there has been no requirement on those claiming the exemption to supply any details to the Revenue Commissioners of the amount of income involved. Therefore, the information requested on the cost was not available.
The Commission was also informed that this position changed with the introduction, through section 33 of the 2003 Finance Act, of an amendment to section 231 of the Taxes Consolidation Act 1997 which provided that the profits, gains or losses arising in this regard must be included in the annual return of income for the taxpayer even though the income or gains are exempt from tax. This requirement applies in respect of chargeable periods commencing on or after 1 January 2004. The Commission was also informed that this information, which will not be available in full until early 2006, will enable more reliable information to be determined as to the cost or otherwise to the Irish Exchequer of the exemption. Other statistical estimates as requested by the Commission in relation to numbers of stallions, numbers of stallion farms, nominations and fee ranges were obtained from industry sources and were provided to the Commission in addition to the tax rates applicable. However, this could not give the cost of the exemption as this can only be obtained on the basis of the individual returns for each taxpayer claiming the exemption.
Subsequently, a copy of the report by Indecon International economic consultants, Assessment of the Economic Contribution of the Thoroughbred Breeding and Horse Racing Industry in Ireland, was sent to the Commission at the end of September 2004. That report contained an estimate that the Exchequer cost of the exemption was in the region of €3 million, which was based on the consultants' own research and analysis. It was not an estimate prepared by the Irish authorities.
220 Mr. J. Higgins asked the Minister for Finance the reason employees of a company (details supplied) do not have to pay income tax here. [7542/05]
Amharc ar fhreagraI am unable to answer a parliamentary question about the tax affairs of an individual or a company, other than when the Deputy asking the question is asking it on behalf of the taxpayer. As it would appear that the Deputy is not asking the question with the consent of the company or employees concerned, I am unable to provide the information sought as the tax affairs of individuals or companies are confidential between them and the Revenue Commissioners.
However, I am assured by the Revenue Commissioners that they continually monitor the tax compliance position of all companies and their employees and take appropriate action where necessary.
For the information of the Deputy, there is provision in the income tax code for a remittance basis of taxation for Irish resident taxpayers who are foreign domiciled. Under this provision, which has been in existence since 1918, such persons pay Irish income tax only on that part of their foreign income which is remitted here.
