In budget 2005, I announced that I had directed my Department, together with the Revenue Commissioners, to undertake a thorough evaluation of the effect of all relevant tax incentive reliefs. This review will evaluate the impact and operation of certain incentive schemes, including their economic and social benefits for the different locations and sectors involved and to the wider community. In addition, the review will examine the degree to which these schemes allow high income individuals to reduce their tax liabilities. The review will involve external consultancy work on the evaluation of various property tax incentive schemes, including the urban, town and rural renewal schemes.
In addition to the above, as well as examining relevant international approaches, the review includes a public consultation process seeking submissions on measures that could be introduced to limit the extent to which reliefs and exemptions can be used by high earners to reduce or eliminate their tax bill. The deadline for receipt of these submissions was 31 March 2005 and my Department has received a significant number of submissions, including one from Sligo County Council. As the Deputy will appreciate this review process has just begun. It is, however, expected that this process will be complete by September 2005 to enable the conclusions of the review to be considered in the context of next year's budget.