Brian Cowen (Laois-Offaly, Fianna Fail)

As the Deputy is aware, I announced in my Budget Statement that my Department and the Office of the Revenue Commissioners will undertake a detailed review of certain tax incentive schemes and tax exemptions in 2005. I subsequently announced in a press release on 6 January 2005 that my Department had advertised for two external consultancy studies to separately review area-based tax incentive schemes, such as urban, rural and town renewal, as well as the living-over-the-shop scheme, and sectoral property-based schemes, such as multi-storey carparks, park and ride, student accommodation, third level buildings, hotels, holiday cottages, nursing homes, private hospitals, sports injuries clinics, child care facilities and the countrywide refurbishment scheme.

I also made it clear at the time of the budget that the review will involve the examination by my Department and the Revenue Commissioners of certain other tax reliefs and exemptions and I specifically mentioned those for stallion and greyhound stud fees, woodlands and artists. Others which I have decided should be examined in the context of the review are the reliefs for interest on loans to invest in companies or partnerships, for significant buildings and gardens, for donations and patent income as well as some pensions reliefs, especially if these may be used by high earners to reduce their tax bills. Other incentives and reliefs are kept under review in the normal course by my Department.

With regard to the public consultation process, additional time was given where requested to allow social partners and others to finalise their submissions and some of these have been received recently by my Department. It is within the remit of the review to consider options for limiting the extent to which high income individuals can use these reliefs to reduce their tax liability and these were specifically sought in the invitation to submit to the consultation process.

The rules on residency are not a tax relief scheme as such and are therefore not included in the review of tax relief schemes that I announced in the 2005 budget. However, as already outlined to the House, I have asked the Chairman of the Revenue Commissioners to monitor the application of the current non-resident rules through examination of cases handled in the Revenue Commissioners large cases division, and to provide me with a report once this examination is complete.

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