Seán Sherlock (Cork East, Labour) | Oireachtas source

In the context of taxation, the imposition of increased betting duty could have an unintended consequence. Large chains of betting shops are able to absorb betting duty through a reduction in profit rather than passing the cost to consumers and some can cross-subsidise it through their online profits. For the information of the officials who are with the Minister of State, an examination of the accounts of a small betting shop over a two-year period show that it will have a betting duty liability of over €340,000 for each year, an amount that significantly greater than its profit margin. An unintended consequence of the increase, if it is not passed on directly to the consumer, is that the smaller outlets will suffer but the bigger operators will quite easily absorb it into their cost base. I ask that this be addressed or that there be an indication by the Government regarding how the measure will work because we must try to speak for the smaller, independent high-street outlets, particularly the intergenerational or family interests which are rapidly going out of business because their cost base is increasing dramatically.

Section 51 looks a little like a sop to the Minister for Transport, Tourism and Sport, Deputy Ross. Some €320,000 of an inheritance will now be tax free, up from €310,000, at an annual cost of €8.1 million. If the extra €10,000 were taxable at 33% under capital acquisitions tax, this would yield €3,333 per transaction. Dividing the €8.1 million annual cost by that €3,333 yield per transaction indicates that approximately 2,430 people will benefit annually from this tax cut. One can bet that these individuals are in the top tiers of society in terms of income and wealth. It will not be ordinary people who will benefit from this measure but, rather, those who have real wealth.

On capital acquisitions tax, section 50 seems to deal with tax avoidance such that people with a beneficial interest in a dwelling held by a trust will not be able to avail of a tax exemption on inheritance tax. It would be good to know more about that provision. Is there routine tax avoidance by wealthy individuals who own multiple properties and set up such discretionary trusts to avoid their children being subject to inheritance or gift taxes? I would like to hear more on this proposal.

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