Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

My question related to capital allowance for six years at 15%. Is that comparable to what is in place now? Are companies or individuals entitled to capital allowances if they construct a gymnasium, fitness centre or crèche at this stage? Are they entitled to claim capital allowances? That was my original question.

I also asked about anti-avoidance mechanisms. Let us suppose two people had a company, which consisted of myself and my wife, who was an employee. Let us suppose I decided to put an extension onto the back of the house and turned it into a nice gym, and we made use of the gym. Let us suppose the same applied to a larger company and the gym was being used. Let us suppose the space was constructed and the company was able to claim accelerated capital allowances for the building in which the gym was situated. In addition, the relief would be 100% for the gym equipment. What happens after three years if the gym closes and it becomes a store for the shop or supermarket that created it in the first place? How do we ensure that smaller businesses would not be able to twist it? I have in mind a scenario where only two or three people are working. How do we ensure such companies will be unable to abuse the provision?

One of the big problems with an amendment like this, which is rather detailed, is that it is coming on Report Stage and we cannot really scrutinise it. We are limited in the number of interactions. The proposed amendment does not say the facilities have to be for the sole purpose of the employees. Let us suppose there was a crèche or gym. I am keen to tease this out with the Minister. Let us suppose I own a company that makes widgets. Then, three miles down the road I decided to create a gym or fitness centre.

If there is a distance or space involved and I allow the use of the gym for my employees, I presume they will have use of the facility free of charge and will not incur a cost. This is not stated in the amendment. Let us say the employees are entitled to use the gym, is the employer allowed to charge other individuals for the use of the gym while at the same time availing of accelerated capital allowances?

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