Séamus Kirk (Louth, Fianna Fail)
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Question 239: To ask the Minister for Finance if the provision of courtesy transport by publicans is an allowable expense for tax purposes; and if he will make a statement on the matter. [12578/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the running costs of providing courtesy transport by a publican would be allowed as a deduction for tax purposes where those costs are incurred wholly and exclusively for the purposes of the publican's trade and where customers using the transport service are not charged for it. Any part of the running costs attributable to the private use of the vehicle would not be allowable.

I am also informed by the Revenue Commissioners that capital allowances would be available against the capital cost of providing a vehicle which belongs to a publican and which is to be used in the provision of such a transport service for the purposes of his or her trade. The amount of expenditure qualifying for allowances is subject to an upper limit or cap. This cap which stood at €23,000 for 2006 is increased to €24,000 for 2007. Subject to the cap, expenditure on a vehicle may be written off over 8 years at the rate of 12.5% per annum. Where a vehicle qualifies for capital allowances and is used both for business and private purposes, the allowances are not available for the element of private use and the expenditure on the vehicle must be apportioned between the business and private uses.