Written answers

Tuesday, 23 November 2004

10:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 144: To ask the Minister for Finance his views on the fact that tax relief and tax avoidance measures cost the State €8.4 billion in foregone taxes each year; and if he will make a statement on the matter. [29980/04]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I assume the Deputy is referring to information on the estimated cost of certain major tax incentives-expenditures recently supplied to the Oireachtas Joint Committee on Finance and the Public Service by the Office of the Revenue Commissioners. It is not correct to characterise as tax avoidance the legitimate use of such provisions, most of which are well established and reflect accepted principles of taxation reliefs.

Among these major tax incentives-expenditures, some of the reliefs estimated to have substantial costs in terms of tax foregone include relief for superannuation contributions, the exemption of child benefit from income tax, the special savings investment accounts as well as stamp duty, capital gains tax and mortgage interest relief for owner occupiers. It is widely acknowledged that there are legitimate and reasonable reasons for tax reliefs as a general principle and few would argue that these tax relief provisions have not made a significant contribution to the economic life of the country.

I will, of course, continue to keep all reliefs and incentives under review to ensure that they are fulfilling the purpose for which they were intended.

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