Róisín Shortall (Dublin North West, Labour)
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Question 271: To ask the Minister for Finance the rationale behind applying capital gains tax on pensioners who get a small windfall, when their overall income, including the total gross amount of the windfall, falls short of the €15,500 tax exemption limit for over 65s; if he will take measures to correct this anomaly; and if he will make a statement on the matter. [27114/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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A charge to capital gains tax, CGT, arises in respect of chargeable gains accruing on the disposal of assets. Such gains are computed in accordance with the provisions of the Capital Gains Tax Acts. The charge extends to individuals, companies and unincorporated bodies of persons. CGT has no connection with income which is the basis for income tax. The CGT liability of an individual is computed, irrespective of age, by reference to the chargeable gain on the disposal which is essentially the excess of the sale proceeds, net of incidental costs of sale, over the allowable costs of acquisition, if any, of the shares being sold. The legislation also provides that the total amount of chargeable gains arising in a tax year is arrived at after deducting any allowable losses accruing to that individual in that year together with any unused allowable losses from disposals of assets chargeable to CGT in any previous year. If there were no other chargeable gains in the year, this gain is then reduced by the annual personal exemption of €1,270. The net chargeable gain is then taxable at 20%.

As the Deputy is aware, it is not the practice to comment in the lead-up to the annual budget and Finance Bill on the intention or otherwise to make changes in taxation.

Mary Upton (Dublin South Central, Labour)
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Question 272: To ask the Minister for Finance if the Revenue Commissioners could contact the family of a person (details supplied) in Dublin 6W as they are anxious to settle the liability arising from the First Active share pay-out to their late father; if his attention has been drawn to the long delays in contacting the Revenue phone line provided to deal with First Active claims; and if he will make a statement on the matter. [27138/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that an official from their office has been in touch with the person concerned regarding this matter. I am informed that lo-call numbers were provided to deal with queries from former shareholders in First Active plc who made gains arising from its buy-out in January of this year. The provision of these lo-call numbers was one of a series of initiatives undertaken by Revenue to inform First Active shareholders of the capital gains tax implications which arose from the take-over of the company. Among other initiatives, the Revenue Commissioners decided to write to each of the former shareholders, as many would not ordinarily be expected to be familiar with capital gains tax provisions. The letters informed them of a potential tax liability arising from the disposal of the shares and how to make the consequent payment. Extensive material was placed on the Revenue Commissioners' website to enable former shareholders to calculate any resultant CGT liability. This included responses to the most frequently asked questions and an on-line CGT calculator. Material was placed on Aertel. The Revenue Commissioners set up special lo-call 1890 helplines in each of the Revenue regions to enable the former shareholders to speak directly to a tax official. Details of the relevant numbers were included in the letter that issued to the former shareholders.

I am informed by the Revenue Commissioners that they are aware that delays in getting through to these lines occurred from time to time. The Revenue Commissioners regret any such delays and assure me that every effort was made to minimise the inconvenience to the public. For example, the helplines include a pre-recorded message that is intended to answer the more frequently occurring inquiries. I also understand that additional staff were deployed to deal with these queries as the number of phone calls increased. However, there is a limit to the additional staff who can be deployed as significant resources are necessary at this time of year to assist people with general pay and file matters. I am assured that the measures taken recently have significantly reduced the level of delays. Nevertheless, the Revenue Commissioners continue to monitor the situation.

Jack Wall (Kildare South, Labour)
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Question 275: To ask the Minister for Finance his plans to reduce new motor taxation in budget 2005; and if he will make a statement on the matter. [27191/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume the Deputy is referring to vehicle registration tax. Any change in the rates of vehicle registration tax is normally considered in the context of the annual budget. As is normal, I do not comment on such matters in advance of the budget. Matters in connection with annual road tax are the responsibility of the Minister for the Environment, Heritage and Local Government.