Richard Bruton (Dublin North Central, Fine Gael)
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Question 292: To ask the Minister for Finance the reason for implementing section 12 of the Finance Act 2005; the additional costs which arise for State employees living abroad; the number of State employees who have been certified as tax exempt under section 12; the value of the tax exemption of State employees to date; if section 12 applies retrospectively; and if he will make a statement on the matter. [26305/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Section 12 of the Finance Act 2005 provides for the Minister for Finance, in consultation with the Minister for Foreign Affairs or a relevant other Minister, to certify as exempt from taxation certain allowances which provide compensation to officers of the State for the extra costs of having to live outside the State in order to perform their duties. The provision is aimed mainly at civil servants attached to diplomatic missions but it also covers members of the Garda Síochána and the Permanent Defence Force on certain overseas postings. The purpose of the provision was to give a statutory basis to a de facto position where these allowances were treated as exempt from tax by the State. It is also in line with the general international practice of exempting such allowances from tax.

The additional costs for State employees posted abroad vary from one foreign location to another but may arise in respect of differences in costs of living, extra costs in the performance of duties, accommodation costs and additional expenses relating to the care and education of children. There are approximately 340 officers of the State, mainly officers of the Department of Foreign Affairs, who are in receipt of allowances covered by the exemption.

The tax treatment of these allowances reflects the fact that they are calculated to cover the additional costs incurred by officers of the State who are posted abroad. Section 12 clarifies the tax position of such officers but does not give rise to any additional Exchequer costs. The question of retrospection did not arise as the provision gave legal effect to an existing long-standing practice.

Paul McGrath (Westmeath, Fine Gael)
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Question 293: To ask the Minister for Finance the number of nursing homes which availed of the capital allowances on an annual basis since December 1997. [26325/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 294: To ask the Minister for Finance the amount of capital allowances claimed by nursing homes each year since December 1997. [26327/05]

Paul McGrath (Westmeath, Fine Gael)
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Question 295: To ask the Minister for Finance the number of nursing homes where capital allowances have been clawed back as a result of the building ceasing to be a qualifying nursing home for each year since 1997. [26328/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 293 to 295, inclusive, together.

Capital allowances for the construction of private nursing homes were introduced in Finance Act 1998. I am informed by the Revenue Commissioners that they are not in a position to estimate the number of nursing homes which have benefited from this tax incentive. This is because the normal self-assessment tax return form does not distinguish between capital allowances claimed in respect of private nursing homes from those claimed in respect of other buildings entitled to capital allowances. Consequently, it is not possible for Revenue to indicate the level of take up of this specific incentive. Similarly, the Revenue Commissioners have no information on the numbers of nursing homes where capital allowances have been clawed back.

As part of ongoing commitments to improve the quality of information available on the costs of tax expenditures generally, the Revenue Commissioners have introduced a number of changes to certain tax forms which will yield additional information regarding the cost of various reliefs and the number of taxpayers availing of them. Provisions were included in the Finance Act 2004 to underpin these changes. This will provide better data in this area and enable fuller estimates of the tax forgone to be made over time. Consultancy studies nearing completion will also provide significant additional data in this regard.

The capital allowances were introduced in Finance Act 1998 with effect from 3 December 1997. The latest information from the Department of Health and Children is that the number of beds in private nursing homes increased from 6,932 at the end of 1997 to 13,178 in December 2003. The new capital allowances incentive for nursing homes would have caused some of this increase in bed capacity but the Department of Health and Children does not have any information on this matter.