Dáil Éireann Debate, Tuesday - 15 July 2014
234. Deputy Pearse Doherty asked the Minister for Finance the partial and full-year cost to the Exchequer of reducing windfall tax from 80% to 60%, 50% and 40%, respectively, for development land disposals. [31254/14]
Amharc ar fhreagraThe windfall tax rate of 80% applies to the portion of the profit or gain on a disposal of land which is attributable to a "relevant planning decision" a rezoning, where both the rezoning and the disposal of land giving rise to the windfall happen after 30 October 2009; or a "material contravention" decision by a Local Authority, where both the decision and the disposal happen after 4 February 2010. I am informed by the Revenue Commissioners that on the basis of the Form 11 Income Tax returns and Corporation Tax returns for 2010-2012 (the latter being the latest tax year for which the necessary information is available), there is no record of any such profits or gains having been returned. The windfall gains provisions were introduced primarily to discourage overheating of the property market by way of speculative transactions involving rezoned land rather than as a revenue raising measure. There is no reliable basis for estimating the impact on revenues to the Exchequer from reducing the 80% rate to 60%, 50% and 40% respectively for development land disposals.
