Emmet Stagg (Kildare North, Labour)
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Question 70: To ask the Minister for Finance the tax and VAT issues surrounding the new private sector venture for elderly people in their homes, known as comfort keepers, for the users and providers; and if he will make a statement on the matter. [19275/06]

Liz McManus (Wicklow, Labour)
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Question 124: To ask the Minister for Finance the tax and VAT issues surrounding the private sector venture for elderly people in their homes, known as comfort keepers, both for the users and providers; and if he will make a statement on the matter. [15456/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 70 and 124 together.

The position is that homecare services provided directly by the Health Service Executive (HSE) do not generally come within the scope of VAT, as Public Bodies are not regarded as taxable persons. This means that they do not charge VAT on the services they provide and cannot recover VAT incurred on their input costs.

The package of services aimed at older people, announced by the Tánaiste in the 2006 Budget, is based on the pilot homecare packages in place and will deliver a wide range of services. The packages are delivered through the HSE, by a range of providers including the HSE itself, voluntary groups and the private sector. Homecare packages will consist of a mixture of grants, contracted care services, therapeutic input and equipment and other such community services as identified in the needs assessment as being necessary to facilitate the older person to remain living in their own home.

However, where homecare services are provided for by private companies for a consideration in the course or furtherance of business, the provider may be obliged to register and account for VAT at the appropriate rate depending on the type of service they provide. Homecare provided to individuals consists of a variety of services which may be liable to VAT at different rates. The current VAT treatment of such services is in accordance with EU Sixth VAT Directive with which Irish VAT law must comply.

However, my Department is examining in consultation with the Department of Health and Children the scope within the relevant EU Directives to exempt the provision of such services from VAT in the future.

Seán Ryan (Dublin North, Labour)
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Question 71: To ask the Minister for Finance if his Department's attention has been drawn to the fact that some foreign executives are restructuring their remuneration using options or preference shares to bypass the ending of the remittance system; and if he will make a statement on the matter. [19277/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy is probably aware, the aggregate value of remuneration packages of executives, be they Irish or foreign, may consist of a number of items other than cash including, for example, a company car, shares or medical benefits.

The structuring or restructuring of such remuneration packages is a matter for employees and their employers. Indeed, the restructuring of a remuneration package may occur for reasons totally unconnected with tax matters. For example, the restructuring of a remuneration package can arise where a company wishes to retain, over the long term, the services of a valued employee.

As regards the receipt by an employee from his/her employer of shares or options on shares in the employer's company, in common with all employees (including executives, whether foreign or Irish), the employee is obliged to account directly to Revenue for the Irish tax due rather than through the PAYE system.

The changes to the remittance basis of taxation came into effect from 1 January last so it is early days yet to assess whether there has been any significant tax-driven restructuring of remuneration packages.

Brendan Howlin (Wexford, Labour)
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Question 72: To ask the Minister for Finance his views on the widespread use of avoidance mechanisms in respect of development land and stamp duty; if his Department or the Revenue Commissioners have carried out an examination of the actual and potential loss of stamp duty revenue to the Government and the impact of stamp duty avoidance mechanisms on house purchasers and others acquiring property; the estimated cost of avoidance mechanisms; the number of deals in which avoidance mechanisms are involved; and if he will make a statement on the matter. [19265/06]

Michael D Higgins (Galway West, Labour)
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Question 107: To ask the Minister for Finance the implications from a tax avoidance point of view, particularly in regard to stamp duty, of the practice in the construction industry of the use of licences to build as opposed to the traditional transfer of development land; if he has an estimate of the amount of construction activity organised using this mechanism; if he has an estimate of tax losses as a consequence of this practice; and if he will make a statement on the matter. [19291/06]

Gerard Murphy (Cork North West, Fine Gael)
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Question 137: To ask the Minister for Finance the issues which are being reviewed in assessing whether the exemption from stamp duty on site values should apply where developers build houses on the basis of a licence to build from the landowner; and if he will make a statement on the matter. [19403/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 72, 107 and 137 together.

Stamp Duty is a charge on documents, which are mostly legal documents, used in the transfer of property. Where a property is purchased, stamp duty is charged on the conveyance or transfer effecting change of legal ownership of the property concerned.

If there is no conveyance, there is no stamp duty. A builder or developer can, therefore, obtain a licence from a vendor to build on land owned by the vendor without incurring a stamp duty charge at that stage of the venture. Once the buildings, whether commercial or residential, are completed, the conveyances or transfers of such properties (i.e. both land and buildings) to purchasers are chargeable to stamp duty in the normal manner, unless specific exemptions are available to the purchasers.

The number of cases involved is not available as there is no requirement on a builder or developer to submit any documents to Revenue for stamping in relation to a building licence arrangement.

Taking account of the proliferation of developments generally in recent times, and in the context of its targeted project in the construction sector in 2006, the Revenue Commissioners are reviewing the use of licensing and similar arrangements, as part of their audit and compliance programmes. The review, as with Revenue's overall approach to its business, will focus on risk.

I have asked Revenue to let me know the outcome of their review and I will decide what action, if any, is required bearing in mind the effect on the housing market and the cost to the Exchequer.