Enda Kenny (Mayo, Fine Gael)
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Question 198: To ask the Tánaiste and Minister for Finance the number of persons registered as availing of tax exile status in the country; if he has plans to provide conditions whereby a greater proportion of the tax forgone might be available to the country; and if he will make a statement on the matter. [34134/07]

Enda Kenny (Mayo, Fine Gael)
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Question 199: To ask the Tánaiste and Minister for Finance the conditions and criteria that apply for persons who are availing of tax exile status; and if he will make a statement on the matter. [34135/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 198 and 199 together.

I am assuming that the reference by the Deputy to 'persons who are availing of tax exile status' is a reference to Irish domiciled individuals claiming to be non-resident for tax purposes. I am advised by the Revenue Commissioners that the 2005 income tax year was the first year for which it was possible to capture the number of returns of income and gains made by persons based outside the State who are not resident here for tax purposes. There were 3,030 individuals in that category in 2005. Returns for 2006 were due to be filed by 31st October 2007 (or, in the case of returns made on ROS, Revenue's on-line system, by 15 November 2007). The statistics from these returns are not yet available.

Under the 1994 Finance Act rules a person is regarded as resident in the State for tax purposes in a tax year if he or she spends: (a) 183 days in the State in that year, or (b) 280 days in aggregate in that tax year and the preceding tax year. An individual who is present in the State for 30 days or less in a tax year will not be treated as resident for that year unless he or she elects to be resident. Also, a day will only count if the individual is present in the State at the end of the day. However even if an Irish domiciled person establishes non-residence he or she remains liable to Irish tax on income arising in Ireland (e.g. income from directorships, a trade or profession, rented properties etc.). The only income which escapes Irish tax for individuals in this category is income arising elsewhere in the world outside Ireland.

As regards gains, Irish domiciled non-resident individuals remain liable to Irish capital gains tax on disposals of land, buildings or shares deriving their value from these assets and certain other assets such as minerals in the State or other assets related to exploitation of such minerals. They are not liable to Irish capital gains tax on assets outside this category e.g. shares or equities in companies not deriving their value primarily from land, buildings etc. The tax residency rules were last updated in the 1994 Finance Act. These rules are similar to the rules that apply in many other developed countries and these are constantly kept under review.

Michael Creed (Cork North West, Fine Gael)
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Question 200: To ask the Tánaiste and Minister for Finance if private child care facilities that provide an education module both for pre-school and after school can have part of their premises exempted from rate liability; and if he will make a statement on the matter. [34176/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Valuation Act, 2001 which came into effect on 2 May 2002 provides that all buildings used or developed for any purpose including constructions affixed thereto are rateable. In regard to the Valuation Act, 2001, I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Act, and that I, as Tánaiste and Minister for Finance, have no function in decisions in this regard.

The basic premise under the Act is that all interests (including buildings) are rateable unless expressly exempted under schedule 4. Schedule 4 of the Valuation Act 2001 outlines the categories of property and the various uses that are deemed to be non rateable under the Act. Paragraphs 10 (education) and 16 (charitable purposes) are two areas in that schedule which may be relevant to the rateability of child care facilities. Accordingly, purpose-built childcare buildings designed and used to make profit are rateable as commercial buildings. Houses which have been adapted for commercial use in a dedicated area (i.e. converted garage for exclusive use as childcare) are rateable, for that specific area.

The Valuation Act, 2001 maintains the long-standing position that commercial facilities — including all private childcare facilities such as play schools, pre-schools, crèches and Montessori schools — are liable for rates. It was not intended that the Valuation Act 2001 would expand or contract the valuation base.

The rateable valuation of commercial property is based on net annual value (NAV) i.e. the rental value of the property. Any individual ratepayer who has concerns about the valuation of their property or of any part thereof, including its rateability or the method of calculation may, on payment of a statutory fee of €250, apply to the Valuation Office for a revision of the valuation. If dissatisfied with the outcome, they may appeal to the Commissioner of Valuation in the first instance and subsequently to the independent Valuation Tribunal. There is also a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.