Arthur Morgan
Ceist:368 Deputy Arthur Morgan asked the Minister for Finance the amount that would be saved if all discretionary tax reliefs were standardised. [34438/09]
Amharc ar fhreagraTuesday, 6 October 2009
Ceisteanna (273, 274)
Freagraí scríofa
I am advised by the Revenue Commissioners that the deductions and reliefs which are allowable for tax at an individual's marginal rate of income tax and for which estimates of cost can be provided are set out below together with estimated costs for the year 2006, the most recent year for which the necessary detailed information is available. If relief for these deductions and reliefs was confined to the standard rate of income tax the saving to the Exchequer could be of the order of €1,100 million.
This estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such a change or the economic effect of such a change. This applies in particular to the BES, Film Relief and Capital Allowances regime. The standard rating of employee pension reliefs would also have an impact on workers' take home pay.
|
Tax Relief Provision |
2006 Cost |
|
€m |
|
|
Person Taking Care of Incapacitated Taxpayer |
2.8 |
|
Health Expenses* |
167.2 |
|
Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received |
3.1 |
|
Employees’ Contributions To Approved Superannuation Schemes |
543.3 |
|
Retirement Annuity Premiums |
435.9 |
|
Personal Retirement Savings Accounts |
56.4 |
|
Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties. |
31.1 |
|
Expenses Allowable to Employees under Schedule E |
71.2 |
|
Donations to Approved Bodies |
49.5 |
|
Donations to Sports Bodies. |
0.3 |
|
Retirement Relief for certain Sports Persons. |
0.2 |
|
Revenue Job Assist allowance |
0.3 |
|
Allowance for seafarers |
0.3 |
|
Investment in Corporate Trades (BES) |
21.4 |
|
Investment in Seed Capital |
1.2 |
|
Stock Relief |
2.0 |
|
Relief for expenditure on significant buildings and gardens |
6.2 |
|
Donation of Heritage items |
5.7 |
|
Capital Allowances ( Income Tax only) |
796.8 |
|
Rented Residential Relief — Section 23 |
252.4 |
|
Investment in Films |
36.4 |
|
Total |
2,483.7 |
*For 2009, Health Expenses Relief has already been standard rated, with the exception of nursing home expenses. The majority of the saving in relation to this item will accrue to the Exchequer from 2010.
Arthur Morgan
Ceist:369 Deputy Arthur Morgan asked the Minister for Finance the impact on the Exchequer of the withdrawal of the tax on insurance policies. [34439/09]
Amharc ar fhreagraAt present the taxation of insurance policies is as follows:
(i) 1% life insurance levy
(ii) 3% non–life insurance levy
In addition, a stamp duty is charged on insurance policies. The life insurance levy was only introduced part-way through 2009. At the time of the Supplementary Budget, the estimated full year impact on the Exchequer from the withdrawal of the life insurance levy is €140 million. The estimated full year impact on the Exchequer from the withdrawal of the non-life insurance levy is €107 million. The estimated full year impact on the Exchequer from the withdrawal of stamp duty on insurance policies, other than life assurance policies, is €2 million.
It should be noted that a private health insurance levy introduced in the new health insurance (Miscellaneous Provisions) Act 2009, is balanced by a new tax relief at source in respect for persons aged over 50 with health insurance. The overall impact of this measure on the Exchequer is intended to be revenue neutral.