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Tax Code.

Dáil Éireann Debate, Tuesday - 21 June 2005

Tuesday, 21 June 2005

Ceisteanna (303, 304, 305, 306, 307, 308)

Richard Bruton

Ceist:

324 Mr. Bruton asked the Minister for Finance the revenue to date raised by the non-indexation of capital gains tax; and the cost of restoring indexation of cost. [20598/05]

Amharc ar fhreagra

Freagraí scríofa

I am informed by the Revenue Commissioners that capital gains tax returns do not require the amount of indexation relief being claimed to be separately identified or the amount of indexation relief that would be appropriate if it had not been abolished. Accordingly, the specific information requested by the Deputy is not available.

Richard Bruton

Ceist:

325 Mr. Bruton asked the Minister for Finance the cost of introducing indexation in stamp duty of thresholds and bands. [20599/05]

Amharc ar fhreagra

I am informed by the Revenue Commissioners that the estimated cost of introducing indexation in stamp duty thresholds for residential and non-residential property, as well as mortgages, would be €8 million in a full year based on the yield for the first four months of 2005. The estimated cost is based on the indexation of the existing stamp duty thresholds for property and mortgages in line with an estimated average inflation rate in consumer price index terms of 2.5% for 2005 as indicated in my budget statement of 1 December 2004.

Richard Bruton

Ceist:

326 Mr. Bruton asked the Minister for Finance the cost of introducing indexation in all of the income tax credits and cut-off points. [20600/05]

Amharc ar fhreagra

I am informed by the Revenue Commissioners that the cost to the Exchequer, estimated by reference to 2005 incomes, of indexation of credits and bands in line with an estimated average inflation rate of 2.5% for 2005 over 2004 is approximately €245 million.

This estimate is based on indexation of the main personal tax credits, namely, single, married, widowed, lone parent and home carer, and the applicable standard rate bands as well as the exemption limits. The estimate is provisional, is likely to be revised and is rounded to the nearest €5 million.

Richard Bruton

Ceist:

327 Mr. Bruton asked the Minister for Finance the estimated value of credits and cut-off points had they been indexed up in accordance with the consumer price index since 2002. [20601/05]

Amharc ar fhreagra

It is assumed that the Deputy is referring to the main personal tax credits, the employee tax credit and the home carer tax credit, and the standard rate cut-off points associated with the main categories of earner.

Had indexation of these credits and standard rate cut-off points occurred as outlined by the Deputy, their values post-budget 2005 are set out in the following table.

Credit

Employee tax credit

715

Personal tax credit

1,648

Married tax credit

3,295

One parent family tax credit

1,648

Home carer credit

835

Standard rate cut-off points

Single person

30,352

Married basic cut-off point

40,108

Additional non-transferable cut-off point for second married earner

20,596

One parent family (including widowed parents)

34,688

These calculations assume a consumer price inflation rate of 2.5% for 2005; 2.2% for 2004 and 3.5% for 2003, namely, a cumulative rate of inflation of 8.4%.

Bernard J. Durkan

Ceist:

328 Mr. Durkan asked the Minister for Finance if a person (details supplied) in County Kildare will qualify for income tax relief in respect of the mother of his child and his other children; and if he will make a statement on the matter. [20611/05]

Amharc ar fhreagra

I have been advised by the Revenue Commissioners that the taxpayer has been requested to clarify whether he is married to the person mentioned in the Deputy's question. In the event that they are not married, there are no provisions within the tax Acts under which they could be treated as if married to each other for tax purposes.

Richard Bruton

Ceist:

329 Mr. Bruton asked the Minister for Finance the estimated cost of providing a 20% tax credit on expenditure on child care; the additional cost if this relief were made refundable; and the projected take up and cost of child care underpinning his Department’s estimate. [20616/05]

Amharc ar fhreagra

I am informed by the Revenue Commissioners that figures are not available to estimate with any accuracy the cost of introducing a tax credit for expenditure on child care. However, in my reply to the Deputy's earlier parliamentary question on tax relief for child care expenses, answered on 10 February 2005, it is tentatively estimated that if a tax credit of €1,200 per annum per child, or the equivalent of an annual allowance of €6,000 at the standard rate of tax, was introduced for all children under six years of age, the cost to the Exchequer would be in the region of €223 million in a full year. The number of taxpayers likely to benefit from such a measure is estimated at 141,000.

The additional cost if such a relief were made refundable would depend on the amount of expenditure involved, the liability of individual taxpayers and the impact on economic behaviour of making the relief a refundable tax credit. It is not possible at this point to estimate the cost of such a measure with any degree of certainty.

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