Richard Bruton (Dublin North Central, Fine Gael)
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Question 519: To ask the Minister for Finance if his attention has been drawn to the lengthy delays in the refund of stamp duty on share transactions where the shares are sold within 20 days; the value of refunds outstanding; and the duration of time over which they have been outstanding. [25458/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that reclaims in relation to share transfers that have been executed electronically through the CREST operating system are currently in arrears to 2 August 2005. Every effort has been made to process reclaims that have been correctly presented with all supporting evidence in a speedy manner and substantial progress has been made in reducing what was previously a four to six month backlog.

Reclaims are submitted for various reasons one of which relates to the relief for closing of transactions under section 73 of the Stamp Duties Consolidation Act 1999. Stamp duty is repayable on shares purchased if the shares are re-transferred on sale within 25 days of the date of the earliest contract and if both contracts were intended to be settled on the same day. It is assumed this is the relief referred to in the Deputy's question. Revenue have advised me that there are 64 such reclaims on hands since 2 August 2005, representing 658 individual transactions and totalling approximately €658,000. Revenue has further informed me that the position regarding reclaims submitted prior to 2 August 2005 is that they have either been (a) processed, (b) queried with the claimant or (c) withheld due to compliance issues of the claimant.

In the case of reclaims that have been queried there are various reasons this might happen. It could be that the basis for the reclaim is unclear; insufficient supporting evidence has been provided; the amount being reclaimed is greater than amount paid; the reclaim is in incorrect currency; the transaction identity provided is invalid, etc. In the case of queried reclaims, they are back with the claimant to be resolved and nothing can happen with them until they are properly re-submitted.

In the case of withheld reclaims there have been issues of compliance by certain member firms of the Irish and London stock exchanges, in particular regarding section 75 of the Stamp Duties Consolidation Act 1999 where exemptions have been claimed by member firms but the reports required under the section have not been submitted or have been submitted in an incomplete manner. The absence of these reports does not allow the Revenue Commissioners to verify the entitlement to claim the exemption or to quantify what underpayments, if any, have arisen.