John Perry (Sligo-Leitrim, Fine Gael)
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Question 95: To ask the Minister for Finance the property based tax reliefs for which no termination date has been set; and if he has requested any reviews of these or other reliefs by the Revenue Commissioners in the context of the forthcoming Budget and Finance Bill. [39182/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In Budget 2006, following a major review of existing tax reliefs involving both internal reviews and the employment of outside consultants I announced the termination, subject to certain transitional provisions, of the following reliefs; the urban renewal, town renewal and rural renewal schemes, and the special reliefs for hotels, holiday cottages, student accommodation, multi-storey car parks, third-level educational buildings, sports injuries clinics, developments associated with park and ride facilities and the general rental refurbishment scheme.

In line with the recommendations of the consultants, I retained the tax reliefs available for private hospitals, convalescent homes, registered nursing homes and childcare facilities. Finance Act 2006 introduced a new scheme for mental health centres but this has not yet been commenced.

In addition to the special property-based tax schemes covered by last year's reviews, Section 268 of the Taxes Consolidation Act 1997 provides for capital allowances for a range of buildings or structures. These are normal business related capital allowances rather than special incentive schemes.

The operation and impact of tax reliefs are monitored and/or subject to review on an ongoing basis as part of the normal work of my Department and the Revenue Commissioners. For example, the Revenue Commissioners have been carrying out a review of the operation of VAT on property and my Department, in conjunction with the Revenue Commissioners and the Department of Enterprise, Trade and Employment is examining the operation of the BES and Seed Capital schemes, which terminate this year unless renewed. I have also, for example, asked for an examination of the research and development tax credit, based on information to date of its operation. I will also expect to have the results of further examinations available to me in the coming months in relation to aspects of the operation of certain other reliefs.

However, given the recent completion of a major review of existing tax relief schemes I have not, at this stage, requested the Revenue Commissioners to carry out any further review on a similar scale of property-based schemes in the context of the forthcoming Budget and Finance Bill.