Richard Bruton (Dublin North Central, Fine Gael)
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Question 88: To ask the Minister for Finance the way in which he will present to the Dáil the detailed reports emerging from the present review of various aspects of the tax code. [26653/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy is aware, I announced in my Budget Statement that my Department and the Office of the Revenue Commissioners are undertaking a detailed review of certain tax incentive schemes and tax exemptions in 2005.

Two external consultancy firms have been examining the area-based and sectoral property tax incentive schemes. The review also involves the examination by my Department and the Revenue Commissioners of certain other tax reliefs and exemptions, especially if these may be used by high earners to reduce their tax bills. These reviews are scheduled to be completed in time for consideration in the context of the 2006 budget and Finance Bill. I am not in a position to indicate the likely publication date for these studies.

Billy Timmins (Wicklow, Fine Gael)
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Question 89: To ask the Minister for Finance the action taken over recent months in relation to the EU's challenge to tax relief on stud fees. [26679/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The stallion stud fee exemption was introduced in the Finance Act 1969 and amended in 1985. The stallion relief was included as part of annual reports on aid granted in Ireland to the agriculture sector sent by the Department of Agriculture to the Commission in 1982 and on a number of subsequent occasions. The Commission wrote to the Irish authorities on 24 June 2003 stating that a complaint had been received in relation to the relief and asked that full details on the exemption be sent to the Commission in order for it to be assessed as a potential State aid.

In a subsequent letter of 6 January 2005 to the Irish authorities, the Commission indicated that it had come to a preliminary conclusion that the stallion tax exemption would seem to constitute an aid scheme that is not compatible with the Common Market. The letter set out the Commission's reasoning and, against that background, invited Ireland to submit comments within one month together with any concrete proposals regarding how the scheme in question could be brought in line with Article 87 of the EC Treaty.

Officials from my Department and the Department of Agriculture and Food met with officials from the Commission Directorate General for Agriculture and Rural Development on 23 February 2005.

I, along with my colleague, the Minister for Agriculture and Food, met with the EU Commissioner for Agriculture and Rural Development in Brussels on 12 May last on this matter. At this meeting, I outlined the background to the relief and the development of the industry in Ireland over the past 30 years setting out the contribution of the horse breeding industry here to employment and economic activity particularly in rural areas. I also made the point to the Commissioner that while I fully understood the Commission's obligation to examine the relief on foot of the complaint it had received, it would be worthwhile if the broader European and international aspects of this issue were taken into account. In particular, I asked that care should be taken not to disadvantage the Irish horse breeding industry, which is recognised as being a cornerstone of the wider European industry, relative to competitors from around the world.

I have reported on these discussions to my colleagues in Government and further correspondence with the Commission has been continuing over recent months, with the most recent communication being a letter from me to the EU Commissioner for Agriculture and Rural Development on 28 September 2005. However, the issues involved in relation to the tax exemption for stallion stud fee income are still under consideration. In the normal course, any proposals for change in tax exemptions are considered in the context of the annual budget.