Michael Noonan (Limerick City, Fine Gael)

The Deputy will be aware that the Office of the Revenue Commissioners is the main source of statistics and data on tax incentives and expenditure. However, Revenue's primary functions are the administration of the tax system and the collection of tax. The extraction of statistical information flows from those primary functions.

In Part 8 of its report the Commission on Taxation reviewed 115 tax expenditures that were in place at the time. Of these, costings were provided for 73 expenditures and it is accepted that Revenue were not in a position to provide tax cost estimates for 42 of the tax expenditures examined in the report. One key reason for this is that many of the tax reliefs in question relate to incomes which are tax exempt and not required to be returned to Revenue, for example, those of credit unions, sports bodies and charities. Others are constituent parts of larger tax reliefs where estimates of cost are only compiled by Revenue at aggregate level. In situations such as these the detail at sub-aggregate level is either not sought or provided in annual tax returns or is not separately captured on the computer system which generates the statistics. Another reason for the limited data is where new reliefs had been recently introduced and the relevant tax returns were not due until after the publication of the commission's report.

In recent years, the Department of Finance and the Office of the Revenue Commissioners have worked closely to identify mechanisms for enhancing the level of information captured in respect of tax reliefs, and significant progress has been made in that direction. However it is necessary to balance the need of the Exchequer for statistical information with the desire to minimise, as far as possible, the administrative burden placed on individual taxpayers and on the business community.

In addition the Revenue Commissioners have made major advances in data capture and in the e-filing of tax returns to create a supportive environment for acquiring tax-based statistical data. The development of e-filing was the specific recommendation of the Commission on Taxation in respect of securing additional data relating to tax expenditures.

As regards these 42 tax expenditures I can now provide additional information in respect of nine. Five have been abolished including long-term care policies, BIK exemption for employer-provided art objects in a heritage building or garden, accelerated capital allowances for farm buildings for the control of pollution, payments made to National Co-operative Farm Relief Services Limited and payments made to its members, and investment allowances in respect of mining exploration expenditure and plant and machinery.

There are four further measures which Revenue has been able to provide cost estimates for, namely, stamp duty exemption for single farm payment entitlements, estimated at €2,845; palliative care units, for which no claims were allowable as the scheme was not commenced; relief for investment in renewable energy generation, namely, €100,000; and the mid-Shannon corridor tourism infrastructure investment scheme, namely, €700,000.

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