Emmet Stagg (Kildare North, Labour)
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Question 320: To ask the Minister for Finance when a refund of tax will issue to a person (details supplied) in County Kildare. [10102/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that an application for refund of Relevant Contracts Tax was received from the accountant acting on behalf of the taxpayer on 22 January 2007. The accountant instructed Revenue to retain the said amount pending further instructions. Revenue awaits further instructions from the accountant regarding the treatment of the refund.

Jack Wall (Kildare South, Labour)
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Question 321: To ask the Minister for Finance if there is provision within the Finance Acts for a parents' council of a primary school (details supplied) in County Kildare to recoup the VAT payments on sports equipment that it purchased for the school children; and if he will make a statement on the matter. [10103/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that bodies supplying educational services and non-profit organisations are exempt from VAT under the EU VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 322: To ask the Minister for Finance if it is possible for relatives managing the affairs of a person in institutional care to place stocks and shares belonging to that person in some form of trust in order that they could be used to pay for their care without being subject to capital gains tax on disposals against which nursing home expenses are not allowable; and if he will make a statement on the matter. [10114/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the Capital Gains Tax (CGT) Acts do not contain provisions which allow for stocks and shares held in a trust, in the circumstances outlined, to be sold free of CGT.

The transfer of the stocks and shares into a trust is treated, for CGT purposes, as a disposal by the owner at market value. The resultant gain or loss is computed by reference to their original cost and market value at the time of transfer. After deducting the first €1,270 of annual gains the owner is chargeable to CGT at 20%. Gains arising on subsequent disposals are chargeable on the trustees. These are computed on the excess of the sale price over the market value when the stocks were transferred to the trust. The annual exemption does not apply to trustees.

Gains arising on the disposal of assets held by a person as nominee or bare trustee for the beneficial owner are treated as if they were made by the beneficial owner.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 323: To ask the Minister for Finance the basis for calculation of flat rate expenses in the tax code; and if he will ensure that more recent occupations are treated equitably with those that already have these reliefs. [10139/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that, under Section 114 Taxes Consolidation Act 1997, employees have a statutory entitlement to claim a tax deduction in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of their employment. This, therefore, is the statutory basis for granting tax relief in respect of expenses to employees.

I am further informed by the Revenue Commissioners that, instead of each employee submitting his/her claims for tax relief in respect of allowable expenses, there is a long standing practice going back over 40 years under which Revenue and staff representatives bodies, including trade unions, agree the amount of expenses that are tax deductible for a category or group of employees. Such agreed rates have become known as "flat rate expenses". Such arrangement has a number of advantages for employees. For example, they can be assured that they are represented as regards their claim and they do not have to submit individual claims.

As regards ensuring the more recent occupations are treated equitably, this is a matter for the Revenue Commissioners. However, I am informed by the Revenue Commissioners that they are not aware of claims of inequitable treatment as regards the flat rate expenses arrangement. If, however, the Deputy has a case in mind, the Revenue Commissioner assure me that they are more than willing to examine the matter. If the Deputy will give details to my office, the matter will be passed to the Revenue Commissioners for examination.

Arthur Morgan (Louth, Sinn Fein)
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Question 324: To ask the Minister for Finance his views on removing VAT from life saving defibrillators, which are recommended to be made available in public places and at all sporting venues; if he has the power to do so; and when he will announce such a tax removal. [10165/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As the majority of defibrillators were not subject to the zero rate on 1 January 1991 it is not possible to apply the zero rate to the supply of such products. Implantable defibrillators are subject to the zero rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate of VAT that can apply to the supply of defibrillators is the Standard VAT rate of 21%.

Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 325: To ask the Minister for Finance if the Government plans to exempt older persons trading down their property from stamp duty; and if he will make a statement on the matter. [7479/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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If tax concessions were introduced for persons wishing to trade down, it would have the effect of increasing the supply of larger (and generally more expensive) houses. This would be of benefit to people at the top end of the market. However, the demand for property at the lower end of the market would increase as the older person trading down sought a smaller house and this would adversely affect first-time buyers in particular, who would have to compete for such houses with a larger number of purchasers.

Anyone that sells their principal private residence is exempt from capital gains tax. If the house has been occupied for the full period of ownership, full exemption applies. Otherwise, the relief granted is in proportion to the period of occupation over the entire period of ownership. This relief is of very significant benefit to the taxpayer and would facilitate people with large homes trading down.