Enda Kenny (Mayo, Fine Gael)
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Question 101: To ask the Tánaiste and Minister for Finance the cost to the Exchequer of tax relief for the development of private child care facilities; and if he will make a statement on the matter. [28903/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that information on the scheme of tax relief for the development of private childcare facilities was for the first time specified and separately included in personal income tax returns for the tax year 2004, which were filed in October, 2005. Based on the information that has been received and collated for the 2004 tax year, a total of €9.2 million was included in 132 claims for capital allowances for the construction of buildings used for certain childcare purposes. This figure would correspond to a maximum Exchequer cost in the order of €3.9 million for these returns in terms of income tax foregone.

I should point out, however, that Revenue were concerned at preliminary indications that in some instances the new, separately categorised data on exempt income and property incentives may not have been correctly entered on the 2004 Income Tax returns. Revenue has engaged with the tax practitioner bodies in order to ensure that this situation is rectified for future years. Corresponding data available for the 2005 tax year indicates that a total of €12.8 million was included in 232 claims for capital allowances for the construction of buildings used for certain childcare purposes. This figure would correspond to a maximum Exchequer cost of the order of €5.4 million for these returns in terms of income tax forgone. Data for the 2006 tax year is not yet available as the income tax returns for that year were not due for filing until October, 2007.