Pat Rabbitte (Dublin South West, Labour)
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Question 152: To ask the Minister for Finance his views on reports by the Institute of Taxation that PAYE workers could be owed up to €1 billion in unclaimed tax relief and that about 40% of PAYE workers are unaware of their tax relief entitlements; if there are proposals to conduct an information campaign regarding claiming tax relief of the same size as the advertisement campaign conducted every year regarding making tax returns; and if he will make a statement on the matter. [3878/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume that the Deputy is referring in his question to certain statements made by officers of the Irish Taxation Institute before the Joint Committee on Finance and the Public Service on 17 January 2007: for example, during the course of those proceedings an officer of the ITI said that "we could be talking about a figure of up to €1 billion in unclaimed expenses".

I am not aware of the data or analysis upon which this estimate of €1 billion was based, or the claim that 40% of PAYE taxpayers are unaware of their tax relief entitlements. They appear to be largely a matter of conjecture.

The reality is that the vast majority of PAYE workers receive their full entitlements each year. These entitlements are, in the first instance, reflected in the Tax Credit Certificates issued to all employees at the beginning of each year. These certificates reflect the most up-to-date information Revenue has on an individual and they are accompanied by a leaflet giving details of the credits/reliefs to which taxpayers may be entitled. Taxpayers are encouraged to contact Revenue, or to make a self-service claim, if there are any omissions or errors on the certificate.

Where circumstances change in the middle of the tax year, for example, a marriage or a change of job, the employee will normally contact Revenue and arrange for a new tax credit certificate to issue. Many PAYE taxpayers wait until after the end of the tax year to claim due reliefs (for example medical expenses relief) or request balancing statements. The increasing volume of year-end claims in recent years indicates a growing awareness among PAYE taxpayers as to their entitlements.

From time to time Revenue runs public information campaigns in relation to both entitlements and the easiest ways to make a claim. For example, in 2006 the Revenue Chairman wrote to every person on the PAYE tax record telling them about the new on-line and other self-service options for employees. During August and September Revenue launched a nationwide campaign to encourage take-up of health-type reliefs, the bin charge credit and rent relief. The response to this campaign was encouraging and I am advised that Revenue will be running something similar again in 2007.

I should also mention in this connection that, as announced in the Budget, starting in 2007 credit institutions will be allowed to operate DIRT-free accounts for the over 65's and incapacitated persons; and all age-related credits and credit for trade union subscriptions will be given as far as possible automatically. Revenue are also looking at making arrangements so that the non reimbursed amounts paid on prescribed drugs under the drugs refund scheme can be automatically refunded at the person's marginal rate of tax. And for 2008, the plan is to move to giving automatic repayments in respect of certain hospital and other medical expenses. Other automatic relief options (such as in respect of nursing home payments) are also being explored.

Tommy Broughan (Dublin North East, Labour)
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Question 153: To ask the Minister for Finance if there are proposals to speed up the process for appealing tax bills after reports that it can take up to six years for an appeal to be processed; and if he will make a statement on the matter. [3886/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy will be aware that a taxpayer who is dissatisfied with a decision or assessment of the Revenue Commissioners has a right under tax law to appeal the decision or assessment to the Appeal Commissioners. This must be done within a limited period, which in the case of income tax, for instance, is 30 days. The Appeal Commissioners are appointed by the Minister for Finance under section 850 of the Taxes Consolidation Act 1997 and are independent of the Office of the Revenue Commissioners.

The responsibility for the management of tax appeals is shared between the Revenue Commissioners and the Appeals Commissioners. The full appeal process has a number of stages. I am informed by the Revenue Commissioners that Revenue practice is that cases that have been appealed are sent on to an appeal hearing only after every reasonable effort has been made to settle the case by negotiation without conceding any important point of principle. More important appeal cases are overseen by an Appeals Committee within Revenue to ensure a certain quality and standard in the cases taken and to ensure a consistent approach to the selection of cases for the higher courts.

I am further informed by the Revenue Commissioners that the length of time taken to process an appeal case in Revenue and bring it to the Appeal Commissioners is determined by the nature of the case rather than any general delays in dealing with the case in Revenue. Finalising a case for submission to the Appeal Commissioners is not just a matter for Revenue as the taxpayer is also centrally involved, both in providing information and in agreeing the grounds for appeal. There is also the point that in many cases, estimated assessments are raised and appealed while an audit is ongoing, usually in the absence of progress on the audit or where a fundamental difference appears that is unlikely to be resolved by agreement. The raising of an assessment may prompt further negotiations or submissions of outstanding material. By their nature such cases are difficult and take time to bring to a stage where they are ready for submission to the Appeal Commissioners. The taxpayer can at any stage appeal directly to the Appeal Commissioners if he or she feels that there is an undue delay within the Revenue Commissioners. Complaints in relation to delays are very rare.

The Deputy may be aware that the management of tax appeals was examined by the C&AG and included in his 2006 report. In a random sample of cases it was found that the time taken between receipt of the appeal in the Revenue Commissioners and referral to the Appeal Commissioners generally varied from less than 1 month to 27 months. In one case, the time taken was 79 months but this case was held up pending the outcome of other cases. I am informed by the Revenue Commissioners that cases under appeal are closely monitored to ensure that there is no undue delay in finalising such cases.

Where a taxpayer remains dissatisfied following a decision of the Appeal Commissioners he or she may request a complete rehearing of the case in the Circuit Court. With the exception of cases involving capital acquisition tax and excise duty, this option is not open to Revenue. A point of law arising from a decision of the Appeal Commissioners may be referred to the High Court or the Supreme Court, if necessary, by way of case stated at the request of either party to an appeal.

Brendan Howlin (Wexford, Labour)
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Question 154: To ask the Minister for Finance the position in relation to the clawback provisions in respect of stamp duty; the number of occasions the clawback has been exercised; the number of properties in relation to same; the amount of stamp duty involved; the reason for the clawback being applied; if the Financial Regulator has issued guidelines to financial institutions regarding advising buyers of this potential clawback; and if he will make a statement on the matter. [3866/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that between 4 April 2006 and 1 February 2007 there were 537 instances where various stamp duty reliefs which had been granted were clawed back. The total yield from the clawbacks amounted to €4,262,466. Generally each clawback referred to only one property. The clawbacks were in respect of 5 reliefs as follows:

Farm Consolidation, Section 81B Stamp Duties Consolidation Act (SDCA) 1999: 1 case — yield €1,050. The relief is given to full time farmers who exchange land in order to consolidate their farms. The relief is clawed back if the land or part of the land is disposed of within 5 years from the date of execution of the deed of transfer. The relief is in the form of zero rate of stamp duty where the lands exchanged are of equal value.

Young Trained Farmer, Section 81 SDCA 1999: 12 cases — yield €64,696. The relief is given to persons who at the date of execution of the deed have attained certain agricultural and educational standards or who subsequently attain such standards. This relief was clawed back as the lands or part of the lands the subject of the relief were disposed of within 5 years from the date of execution of the instrument without the proceeds from the disposal being used in acquiring other lands within a period of one year of the date of the disposal. The relief is in the form of a zero rate of stamp duty.

New dwelling house/apartment with floor area certificate, Section 91 SDCA 1999: 350 cases — yield €2,928,349. This relief is granted where the property has a floor area of less than 125 square metres, is occupied by the purchaser or by some person in right of the purchaser and is clawed back if the purchaser is in receipt of rent from the dwelling house/apartment other than rent received under the rent-a-room scheme within 5 years of the date of execution of deed. The relief is in the form of a zero rate of stamp duty.

New dwelling house/apartment with no floor area certificate, Section 92 SDCA 1999: 57 cases — yield €476,788. The relief is granted where the property has a floor area of greater than 125 square metres, is occupied by the purchaser or by some person in right of the purchaser and is clawed back if the purchaser is in receipt of any rent from the dwelling house/apartment other than rent received under the rent-a-room scheme within 5 years of the date of execution of the deed. The relief is applied by charging duty only on the value of the site or one quarter of the total value of the site plus building agreement, less VAT, whichever figure is the greater or on one quarter of the total consideration, less VAT where a completed house is being purchased.

First-time purchaser, Section 92B SDCA 1999: 117 cases — Yield €791,583. This relief is granted where the purchaser or purchasers at the date of execution of the deed had not individually or jointly with any other person, or persons, previously purchased another dwelling house or apartment or part of another dwelling house or apartment. The relief is granted to owner occupiers or where the property is occupied by some person in right of the purchaser and is clawed back if the purchaser is in receipt of any rent from the dwelling house/apartment other than rent under the rent-a-room scheme within 5 years of the date of execution of the deed.

I am not aware that the Financial Regulator has issued guidelines in this matter but this would be primarily an issue for the solicitors acting for the individuals concerned, who I would expect, would advise their clients of the appropriate legal requirements and exposures in this context.

Michael D Higgins (Galway West, Labour)
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Question 155: To ask the Minister for Finance the number of stud farms or operations which completed returns in relations to earnings and so on in respect of stallions; the final number of returns made in this respect; the average, the highest, and the lowest income and profit for tax purposes reported; and if he will make a statement on the matter. [3891/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The relevant information available is based on returns by individuals and companies of tax exempt income arising from stallion stud fees for the tax year 2004.

I am advised by the Revenue Commissioners that the number of such returns was 129 with the average exempt income reported at €222,119 and the lowest at €245. There were 8 returns of stallion stud fees in excess of €1 million. Data is available only on gross, not net, income in the returns. Such income will now be subject to tax from 31 July 2008 and stallion income was included in the horizontal measure in Finance Act 2006 on minimum tax rates.