I am aware of the Budget Oversight Committee's ongoing work in the area of tax expenditures, and the publication of a report on the topic earlier this month. The Committee had met with representatives of my Department and Revenue on January 22nd 2019. It had also met separately with the Parliamentary Budget Office (who have also done considerable work in the area of tax expenditures), and with the economist Dr. Micheál Collins from the School of Social Policy in UCD.
The Budget Oversight Committee Report acknowledges that estimates of revenue foregone can be different due to different definitions of what is included in tax expenditure. The Parliamentary Budget Office aggregate cost estimate is in the region of €5 billion based on the Department of Finance classification which is narrower and is aligned with an OECD’s definition of tax expenditure.
The work on tax expenditures review is a continuous process. The 2017 tax strategy group paper on the topic noted significant advances have been made in the analysis of tax expenditures. There is the Department’s 2014 tax expenditure guidelines, a comprehensive analytical process for evaluations and ex-ante evaluations of proposed new tax incentives. All tax expenditures that commenced post 2014 have been subject to sunset clauses.
With regards to the eight recommendations made in the Report by the Committee, they are currently being considered by my Department, and by Revenue.