Tom Parlon (Laois-Offaly, Progressive Democrats)

That is reviewed by the Department of Finance and the Government in advance of each budget. Steps have been taken to strengthen the system of costing tax reliefs and to improve the information available, having regard to the need to maintain as much simplicity as is practical in the tax return system. These changes involved legislation in the Finance Acts 2003 and 2004.

As the Senator is aware, the Finance Act 2003 requires returns of income and losses in respect of exempt activities, such as bloodstock relief for stallions and greyhounds and for commercially managed woodlands. Changes underpinned by the legislative provisions of the Finance Act 2004 have been made to tax forms to enable information to be gathered on property-based schemes. Recently introduced reliefs such as the research and development tax credit have been accompanied by specific provisions, which will enable their costs to be maintained.

This extra information is required for the collection of statistical data which will be given to the Government by the Revenue Commissioners. The data is now being made available and will give new information with regard to particular stallion schemes. I read a report published by the industry that shows a different complexion on the stallion scheme to those held by the Senator's party. Senator John Paul Phelan stated he has no problems with this independent report. When the Department and the Minister evaluate the scheme it will be on a factual basis and a balanced decision can be taken at that time with regard to the value of that relief and others.