I dealt comprehensively with the issue of profits and tax yields from the thoroughbred breeding industry in my replies to Questions Nos. 157 to 160, inclusive, on 18 November last year and Question No. 177 on 9 December last.
In these replies, I explained that there was a range of variables associated with the stallions industry and that profits from a number of activities within the thoroughbred breeding sector are not separately identifiable. As a result, it is unwise to draw any firm conclusions from the figures supplied.
The Deputy will be aware that the figures supplied related only to profits for income tax and corporation tax purposes and took no account of the overall contribution made by the sector in terms of employment taxes and VAT. I am advised by the Revenue Commissioners that these amounts may not include gains from the sale of stallions, nor does it include profits earned from the provision of stallion stud services that are owned by syndicates as these are not regarded as having been earned in the course of a trade. It is not possible to state the amount of any profits associated with these activities as they are not separately captured on tax returns.
As to plans to increase the tax contributions from the thoroughbred breeding industry, I have no plans for changes in this area at this time.
