Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 100: To ask the Minister for Finance if he will report on his review of tax reliefs; and if he will make a statement on the matter. [7462/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I announced in my Budget Statement that my Department and the Revenue Commissioners will undertake a detailed review of certain tax incentive schemes and tax exemptions in 2005. This review will evaluate their impact and operation including their economic and social benefits for the different locations and sectors involved and the wider community. In addition, the review will examine the degree to which these schemes allow high-income individuals to reduce their tax liabilities.

The review of tax reliefs includes a special public consultation process seeking submissions on measures that could be introduced to balance the benefit of such reliefs with the extent to which these are used by high-earners to reduce their tax bill. The public consultation was advertised on 8 January 2005 and submissions should be made to my Department before 31 March 2005. I would welcome the views of public representatives, either individually or via the forum of the relevant Oireachtas committees and of the social partners in due course in relation to all these matters.

I announced in a press release on 6 January 2005 that my Department had advertised for external consultants to review certain tax incentive schemes. Tenders were invited from suitably qualified consultants to undertake two separate studies in economic, fiscal and social terms, as necessary, of the impact, operation, effectiveness and cost of 15 separate tax incentive schemes. The request for tenders was placed in the Official Journal of the European Union on 24 December 2004.

Seven tenders have been received in my Department and a decision on the awarding of the contracts will be taken by the end of March 2005. It is envisaged that the consultancy review of these various reliefs will be completed by the end of July 2005.

Finally, the review will also involve the examination by my Department and the Revenue Commissioners of certain other tax exemptions, for example, for stallions, woodlands, artists and patent income. The aim is to have all of these examinations completed by autumn 2005 so that the various issues can be examined in the context of the 2006 budget, in December 2005.