Dáil Éireann Debate, Tuesday - 28 February 2006
120 Mr. Broughan asked the Minister for Finance his views on the recently published Goodbody Economic Consultants review of area based tax incentive renewal schemes; the action he intends to take as a result of the report; and if he will make a statement on the matter. [7857/06]
Amharc ar fhreagra132 Mr. Rabbitte asked the Minister for Finance his views on the recently published internal review of certain tax schemes; the action he intends to take as a result of the report; and if he will make a statement on the matter. [7854/06]
Amharc ar fhreagra140 Mr. Gilmore asked the Minister for Finance his views on the recently published Indecon review of property based tax incentive schemes; the action he intends to take as a result of the report; and if he will make a statement on the matter. [7858/06]
Amharc ar fhreagraI propose to take Questions Nos. 120, 132 and 140 together.
In my 2005 Budget Statement I announced that a review of a broad range of tax incentive schemes would be undertaken in 2005. The review process included studies by external consultants Indecon and Goodbody Economic Consultants, as well as internal reviews by officials from the Department of Finance and the Office of the Revenue Commissioners, with the involvement of other Departments as appropriate. In the budget 2006 documentation, summaries of the recommendations of the various reviews were published. The full reviews were published by my Department in three volumes on 6 February 2006.
I have outlined in my Budget Statement and, extensively, in discussions on the Finance Bill, a wide range of actions which I am taking arising directly from this review process. For example, arising from the recommendations of the external consultants, a range of property-based tax incentive schemes are being discontinued, subject to transitional measures to avert any undue negative impact on the construction sector. A number of other tax schemes are to be retained or reintroduced, subject to amendments in some cases, and a horizontal measure is to be introduced from 1 January 2007 to limit the extent to which high earning individuals can shelter income from taxation in any one year. I am pleased that the Government's initiative in these reviews has yielded results both in terms of identifying reliefs which are to be phased out as well as those which should be maintained.
The general findings and recommendations arising from the review of tax schemes will be taken into account as appropriate in the context of the ongoing policy formulation process.
