Bernard Durkan (Kildare North, Fine Gael)
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Question 117: To ask the Tánaiste and Minister for Finance the expected returns to the Exchequer from the proposed carbon tax in a single year; if the level of this tax has been agreed; and if he will make a statement on the matter. [17248/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Programme for Government signals that a carbon tax/levy will be introduced over the lifetime of this Government. The matter of the introduction of a carbon tax is one of the issues to be considered by the new Commission on Taxation to be established under the Programme. Consequently, at this stage, the precise design of such a tax has yet to be determined. This will, of course, form an important part of the normal deliberative process of the Government in setting fiscal and environmental policy. Deputies will recall, however, that the Programme for Government indicates that the phasing-in of a carbon levy will be on a revenue neutral basis, so it is not intended that its introduction will lead to any net Exchequer revenue increase or net addition to the overall tax burden.

Emmet Stagg (Kildare North, Labour)
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Question 118: To ask the Tánaiste and Minister for Finance the volume of complaints received in relation to errors and problems in the statement of certificates of tax free allowances and tax credits; the length of time it takes for errors in tax certificates to be corrected; the volume of queries being dealt with through the on-line system; and if he will make a statement on the matter. [17181/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that they are not in a position to provide information on the volume of complaints in relation to tax-free allowances and tax credits. If a taxpayer requests an amendment to a Tax Credit Certificate this is not recorded as a complaint. Revenue have further advised that by the 9th February last, they had completed the bulk issue of 2,194,174 Tax Credit Certificates (TCCs) to PAYE taxpayers, reflecting the changes announced in the 2007 Budget. Revenue identified a small number of certificates that contained errors and these were rectified automatically.

A further 859,156 TCCs issued in the period to 21 June, 2007. These relate to cases where individual taxpayers have advised Revenue of changed circumstances, have requested reviews, have claimed additional credits and allowances or sought duplicate certificates. In general where a PAYE taxpayer requests changes to their tax credits or allowances an amended TCC will issue within 20 working days of the request being received.

In relation to the on-line self-service facility now available to PAYE taxpayers, Revenue have informed me that 67,823 transactions were carried out using this facility from 1 January to 3 June this year.

Martin Ferris (Kerry North, Sinn Fein)
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Question 119: To ask the Tánaiste and Minister for Finance his plans to increase restrictions on the use of specified tax reliefs by high income individuals. [17255/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In Budget 2006 I announced the introduction of a limit, with effect from 1 January 2007, on the use of tax reliefs, including certain exemptions, by some high-income individuals. Section 17 of Finance Act 2006 gave effect to this announcement. This measure was designed to address the issue of a small number of individuals with high incomes who, up to now, have been able to reduce their income tax liability to a very low level or to zero, mainly by means of the cumulative use of various tax incentive reliefs. Such individuals are no longer able to do so. This provision will ensure that such individuals who use listed tax incentive schemes will have an effective rate of income tax for each year of not less than about 20 per cent on the income sheltered by such schemes.

The method used to increase the tax rates at which these high income individuals pay tax, effectively addresses the equity concerns raised over the past number of years while at the same time, ensuring that the intended incentive effects of tax schemes will continue to be delivered.

Broadly, the reliefs restricted are those reliefs that have primarily been used by high income individuals to significantly reduce their tax liability. These are-

the various sectoral and area based property tax incentives,

certain exemptions including artistic income and patent royalties,

the reliefs for donations, and

certain investment incentive reliefs such as the Business Expansion Scheme, film relief and interest relief for investment in companies and partnerships.

The normal tax reliefs claimed by taxpayers such as medical expenses, trade union subscriptions, the personal tax credits and exemptions such as that for child benefit are not restricted. In addition, normal business expenses and deductions for capital allowances on plant and machinery, genuine business related trading losses and genuine losses from a rental business have not been restricted.

I do not intend to introduce any further restrictions on the use of specified tax reliefs at this time. I would point out, however, that Finance Act 2007 introduced technical amendments to the restriction which will help to ensure that the measure will work as intended. Included in these amendments are provisions to enable the Revenue Commissioners to seek whatever information may be necessary from individuals affected by the restriction, so as to ensure that Revenue are in a position to monitor and assess the impact of the restriction in terms of numbers affected, the additional tax paid and the nature of the reliefs restricted.