Tuesday, 15 November 2011

Ceisteanna (137, 138, 139, 140)

Michael Creed

Ceist:

150 Deputy Michael Creed asked the Minister for Finance the value of outstanding tax reliefs available under the various tax construction schemes including section 23, student accommodation, hotel accommodation and so on; the amount of this relief drawn down in 2007, 2008, 2009 and 2010; the maximum and minimum relief availed of by individual taxpayers in each of these years under the various schemes; and if he will make a statement on the matter. [34697/11]

Amharc ar fhreagra

Michael Creed

Ceist:

151 Deputy Michael Creed asked the Minister for Finance if he has information regarding the level of outstanding mortgages on properties purchased under the various tax incentive construction schemes, including section 23, student accommodation and so on; the existing level of impairment on these mortgages; and if he will make a statement on the matter. [34703/11]

Amharc ar fhreagra

Michael Creed

Ceist:

152 Deputy Michael Creed asked the Minister for Finance the value of tax relief already availed of under the various tax incentive construction schemes, including section 23, student accommodation and so on; the profile of taxpayers that have already availed of their entitlements in this regard and the profile of taxpayers still holding this relief; and if he will make a statement on the matter. [34704/11]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Finance)

I propose to take Questions Nos. 150 to 152, inclusive, together.

I am informed by the Revenue Commissioners that for the tax year 2003 and earlier years claims for tax incentive schemes on property were aggregated in tax returns with other claims and could not be distinguished from other reliefs claimed. Accordingly, the specific information on costs for 2003 and earlier years are not available.

Provisions were included in the Finance Act 2004 to allow this data to be obtained separately in subsequent years. The relevant information for 2004-2008 is available from the Revenue Statistical Reports which are accessible on the Revenue website at www.Revenue.ie. The information is located in Table IT6, under the main chapter heading of Income Tax.

I am informed by the Revenue Commissioners that the relevant information in relation to the maximum claim, minimum claim and the tax cost associated with the claims for tax relief allowed in respect of the different types of property related tax schemes for the years 2007 to 2009, the latest year for which this information is available, is as outlined in the following tables. This is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years in question.

2007

Scheme

Tax Cost

Maximum Claim

Minimum Claim

€m

€m

Urban Renewal

109.3

See Note

1

Town Renewal

34.6

See Note

1

Seaside Resorts

8.0

0.5

1

Rural Renewal

48.6

See Note

1

Multi-storey car parks

9.6

See Note

1

Living over the Shop

3.0

0.5

3

Enterprise Areas

2.8

See Note

1

Park & Ride

1.4

0.6

1

Holiday Cottages

12.4

See Note

8

Hotels

118

See Note

1

Nursing Homes

18.3

See Note

531

Housing for the Elderly/Infirm

2.6

0.3

3,449

Hostels

0.7

0.6

4,047

Guest Houses

Negligible

Negligible

1

Convalescent Homes

0.5

0.1

381

Qualifying (Private) Hospitals

12.1

1.2

1,253

Qualifying Sports Injury Clinics

1.8

0.6

19,582

Buildings Used for Childcare Purposes

9.8

See Note

6

Mental Health Centres

Negligible

Negligible

See Note

Student Accommodation

42.0

See Note

1

2008

Scheme

Tax Cost

Maximum Claim

Minimum Claim

€m

€m

Urban Renewal

84.5

See Note

1

Town Renewal

23.7

See Note

1

Seaside Resorts

5.7

0.4

1

Rural Renewal

34.2

See Note

2

Multi-storey car parks

6.6

See Note

3,657

Living over the Shop

2.5

See Note

1

Enterprise Areas

2.5

0.3

1

Park & Ride

0.7

0.5

1

Holiday Cottages

10.8

0.6

44

Hotels

114.7

See Note

1

Nursing Homes

19.4

See Note

405

Housing for the Elderly/Infirm

3.0

0.3

134

Hostels

0.7

0.6

4,047

Guest Houses

0.1

0.1

7,538

Convalescent Homes

0.5

0.1

381

Qualifying (Private) Hospitals

12.3

0.8

11

Qualifying Sports Injury Clinics

1.5

0.3

5,852

Buildings Used for Childcare Purposes

12.0

See Note

1

Mental Health Centres

Negligible

See Note

See Note

Student Accommodation

22.7

See Note

1

2009

Scheme

Tax Cost

Maximum Claim

Minimum Claim

€m

€m

Urban Renewal

93.1

See Note

1

Town Renewal

18.3

0.7

1

Seaside Resorts

5.3

0.3

1

Rural Renewal

28.0

See Note

1

Multi-storey car parks

5.2

See Note

69

Living over the Shop

1.7

0.5

1792

Enterprise Areas

2.1

0.3

1100

Park & Ride

0.8

0.5

69

Holiday Cottages

13.9

See Note

210

Hotels

102.1

See Note

127

Nursing Homes

21.6

See Note

1

Housing for the Elderly/Infirm

2.8

0.4

783

Hostels

0.30

0.2

7240

Guest Houses

0.10

0.1

815

Convalescent Homes

0.5

0.2

381

Qualifying (Private) Hospitals

12.5

See Note

6418

Qualifying Sports Injury Clinics

1.5

0.2

14823

Buildings Used for Childcare Purposes

12.5

See Note

529

Mental Health Centres

Negligible

See Note

See Note

Student Accommodation

19.1

See Note

57

Registered Caravan Parks

0.2

See Note

See Note

Mid Shannon Corridor

0.2

0.5

15720

The estimated relief claimed has assumed tax forgone at the 41% rate in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax.

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11).

Corresponding data cannot yet be provided for 2010 as the tax returns for this year are either not yet due or are still being processed.

The information provided in tax returns on the annual amounts of claims for property-based tax reliefs is not sufficiently detailed to provide a basis for deriving an estimate of the value of outstanding reliefs available under the various tax construction schemes. I am not therefore in a position to provide the information requested by the Deputy in this regard.

My Department produced a detailed Consultation Paper as part of an economic impact assessment of potential changes to the "legacy" property-based tax reliefs, which contains information on the profile of tax payers availing of such schemes. Based on preliminary data provided by the Revenue Commissioners the Paper, which is available on the Department of Finance's Tax Policy website www.taxpolicy.gov.ie, provides an analysis of claims and investor income levels including the table below, which shows the share of claims by tax unit within five income groupings.

Income level

2007

2008

Less than €100,000

43%

44%

€100,000 — €150,000

17%

18%

€150,000 — €200,000

11%

11%

€200,000 — €275,000

9%

9%

Greater than €275,000

20%

18%

Table: Percentage of claimants by income band

It is anticipated that the results of the impact assessment process will be available for consideration in the context of the forthcoming budget.

The Central Bank collates and analyses data on the mortgage market. I have been informed that they do not have this data according to tax relief status. Their Statistics Department does not collect the credit data at that level of breakdown. The only reliable breakdown available is owner-occupier versus buy-to-let (BTL) mortgages, and this is publicly available in the Central Bank's Financial Measures Programme Report published earlier this year and available on their website www.centralbank.ie.

In addition the Deputy might note that a number of these property-based schemes were reviewed by Indecon Economic Consultants and Goodbody Economic Consultants as part of the overall review of property and area based tax incentives in 2005. These reports were published on 6 February 2006 and are available on the Department of Finance's Tax Policy website.

Note:

Because of the Revenue Commissioners' obligation to observe confidentiality in relation to the taxation affairs of individual taxpayers, a figure for the highest and in some cases the lowest amount of relief claimed under some of the schemes is not provided. This is due to the small numbers of returns with amounts exceeding that level.

Question No. 153 answered with Question No. 147.

Denis Naughten

Ceist:

154 Deputy Denis Naughten asked the Minister for Finance the cost to the Exchequer of the farm consolidation tax relief in the last available full year which expired last June; the projected annual cost of reinstating the scheme; his plans to re-establish the scheme; and if he will make a statement on the matter. [34708/11]

Amharc ar fhreagra

I am advised by the Revenue Commissioners that the latest available information on the cost of stamp duty relief for farm consolidation is estimated at close to €0.5 million for calendar year 2010, in respect of all stamped deeds of transaction. It is not possible to predict the cost of reinstating this measure as cost would depend on take up. The scheme of Stamp Duty relief for farm consolidation expired on 30 June 2011. The figure for 2011 is not yet available. Stamp duty relief for farm consolidation was a State Aid and would require EU approval if reintroduced. I have no plans at this time to reintroduce this scheme. It would appear the scheme did not have the intended effect of encouraging farm consolidation, given the low level of take up — there were only 115 applicants in total between 2005 and 2010.