Ned O'Keeffe (Cork East, Fianna Fail)
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Question 147: To ask the Minister for Finance if he will arrange to have a P21 issued in respect of persons (details supplied) in County Cork. [40693/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Revenue Commissioners have advised that a P21, 2005, issued to the persons in question on 3 October 2006 and that a duplicate has issued dated 28 November 2006.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 149: To ask the Minister for Finance the cost of reducing the 42% tax rate to 40% for all taxpayers, for making that reduction apply to income between €32,000 and €42,000 for a single person with corresponding bands for other categories, and for making that reduction apply to income between €32,000 and €52,000 for a single person with corresponding bands for other categories of taxpayer. [40756/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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By reference to the 2007 Pre-Budget ready reckoner prepared by the Revenue Commissioners the full year cost to the Exchequer of reducing the top rate of income tax by two percentage points is estimated to be €457 million. The ready reckoner is available on my Department's website, at www.finance.gov.ie

It is assumed that the thresholds for the proposed new tax bands mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples.

I am advised by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2006 incomes, of the introduction of each of these 40 per cent rate bands could be of the order of €135 million, and €215 million, respectively, depending on how the bands were structured. However, given the current band structures, there would be major issues to be worked out as to whether such a new rate could be integrated into the current system and whether it could be operated in practice. The cost estimates are provisional and subject to revision.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 150: To ask the Minister for Finance if he will ask the Revenue Commissioners to reissue a tax refund cheque to a person (details supplied) in Dublin 7 which was inadvertently issued to another person with the same name. [40757/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that a replacement refund cheque for €980 will issue within the next 10 days. The address on record is now correct.

Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 151: To ask the Minister for Finance the yield to the Exchequer from companies whose corporation tax for the first accounting period does not exceed €50,000; if he will continue with the June 2002 arrangement on preliminary corporation tax to help small and medium enterprise start-ups; and if he will make a statement on the matter. [40758/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the yield in corporation tax to the Exchequer from companies whose corporation tax liability for their first accounting period did not exceed €50,000 was approximately €22 million. This estimate is by reference to corporate profits earned in accounting periods ending in 2004, the latest year for which the relevant figures are available.

I presume that the arrangement to which the Deputy refers concerns the concessionary treatment by the Revenue Commissioners of certain companies allowing them to pay two instalments of preliminary corporation tax in one payment.

"Preliminary tax" is a payment on account of final liability. Changes were introduced in Budget 2002 which brought forward the date for payment of preliminary corporation tax from six months after the end of the accounting period to one month before the end of the accounting period. These changes were phased in over a transitional period from 2002 to 2005 during which time companies paid their preliminary corporation tax in two instalments. The first instalment was payable one month before the end of a company's accounting period and the second instalment was payable six months after the end of the accounting period. Revenue's concessionary practice allowed certain companies (whose corporation tax liability for their start-up period did not exceed €50,000) to pay all of their preliminary tax in the second of the two instalments during the transitional period. This practice was set out in detail in Revenue's publication Tax Briefing No. 48. When the 2002 to 2005 transitional period ended, the tax was no longer payable in two instalments and, as a direct result, the concessionary practice no longer applied. In respect of first or "start-up" accounting periods ending in 2006, all companies are required to pay their preliminary corporation tax one month before the end of their accounting period.

I am conscious of the contribution made to the economy by small and medium-sized enterprises but I do not comment at this time of year on matters connected with the Budget.

Jerry Cowley (Mayo, Independent)
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Question 153: To ask the Minister for Finance his views on allowing companies holding conferences here to reclaim their VAT in view of the fact that this is common practice in other countries and that hotels here would receive an increase in lucrative international conference business; and if he will make a statement on the matter. [40772/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy will be aware from previous replies to similar questions on this issue, I want to make sure any such relief can work and does not open up the VAT system to other very costly demands. The examination of the matter is ongoing and I will consider it in the context of the forthcoming Budget.