John Gormley (Dublin South East, Green Party)
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Question 100: To ask the Minister for Finance if he intends to introduce measures to prevent high earners from achieving zero tax liability; and if he will make a statement on the matter. [29981/04]

John Perry (Sligo-Leitrim, Fine Gael)
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Question 109: To ask the Minister for Finance whether additional caps should be introduced in respect of certain tax reliefs in order that they not be used to eliminate the tax liability of high earning persons. [29920/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 100 and 109 together.

There are many reasons a person would have a nil liability. This can arise from the cumulation of tax relief for pension contributions, trading losses carried forward, capital allowances and various tax incentives. It must be accepted that, of their nature, tax reliefs, even where they can be justified for good public policy purposes, will reduce the tax bills of those in the higher income bracket.

I am conscious of the need to ensure equity in the tax system. This Government has reduced the tax burden for all taxpayers, particularly the lower paid, on an unprecedented scale. Since 1998, we have also taken effective measures to limit and refocus tax reliefs to ensure a proper balance is struck between the provision of particular incentives for good public policy reasons and the availability of opportunities for higher earners to reduce their tax exposure. I will continue this policy. To that end, all reliefs and incentives will be kept under review to ensure that they are fulfilling the purpose for which they were intended.

With regard to the steps I may take or measures I may be considering, I refer the Deputies to the long-standing practice of Ministers for Finance not to comment on what may or may not be contained in upcoming budgets. I do not intend to depart from that approach.