Dáil Éireann Debate, Thursday - 4 October 2012
13. Deputy Seán Crowe asked the Minister for Finance the plans, if any, he has to publish the economic rationale for all existing tax reliefs and for all proposed tax reliefs being considered; and if he will make a statement on the matter. [42274/12]
Amharc ar fhreagraThe rationale for existing tax reliefs is already in the public domain. The Commission on Taxation included a comprehensive review of all tax expenditures then current in its 2009 Report, with a view to assessing their economic and social benefits. The Commission examined tax expenditures introduced in legislation up to and including Finance (No. 2) Act 2008 which had not been repealed by legislation up to Finance Act 2009.
Not many tax reliefs have been introduced since that time. However, when a relief is introduced or indeed amended or abolished, this is done via the Budget and Finance Bill process. In this way any such change is done in a public manner and the reasons, economic and otherwise, behind the proposed change are fully explained. If Deputies consider that more information is required than initially is being provided by the Minister, then Committee Stage of the Finance Bill provides an opportunity for more detailed analysis to be made. Records of these Oireachtas proceedings are themselves subsequently published.
Where a particularly major change is contemplated, an additional level of analysis is undertaken, frequently involving a consultation process.
An example of such work recently conducted by my Department would be the Economic Impact Assessment of Potential Changes to Legacy Property Reliefs. This assessment, undertaken last year and published by my Department, included a consultation paper, engagement from over 700 submissions and an analysis, enabled the Department to understand the possible legacy costs to the State as well as the impacts on individuals and economic sectors of a change in law relating to the use of these particular reliefs.
Another example, which is currently work in progress, is the Public Consultation on Section 481 Film Tax Relief. I published a consultation paper which set out preliminary analysis and data and invited interested parties to make submissions as part of an economic impact assessment of film tax relief. The impact assessment will enable the Department to better understand the benefits that may accrue to the exchequer as well as consequences for investors, the audiovisual industry, and the wider economy arising from potential changes to the relief.
I would add also that much of the preparatory work done by my Department in relation to tax policy options and choices generally is reflected in the papers prepared for and presented to the Tax Strategy Group. These papers are subsequently published on my Department’s tax policy website www.taxpolicy.gov.ie.
As regards proposed tax reliefs being considered, I can say that all reliefs come under review as part of the annual Budget and Finance Bill process but the Deputy will be aware that it is not the practice of the Minister for Finance to comment on possible changes in advance of Budget Day.
