Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

Question 217: To ask the Tánaiste and Minister for Finance if he has proposals to ensure that the fuel rebate in respect of the school transport service continues into the future; and if he will make a statement on the matter. [1311/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The 2003 EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States. In the Irish context, these derogations allowed for reduced rates to apply to fuel used for public transport services which includes school transport services.

While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission, who are the deciding authority, have to date refused all such requests. The Commission maintain that, in keeping with the EU Energy Tax Directive, Member States must withdraw the existing excise reliefs. The Commission's decision was published on its website in March 2007. At the Commission's behest my officials have indicated that Ireland will avail of the forthcoming Finance Bill to make the necessary legislative changes to conform with the Directive.

In the case of public passenger transport services, including school transport services, the Department of Transport and other relevant line Departments, in conjunction with my Department, are exploring alternative non-tax support mechanisms that could be put in place where appropriate to maintain the assistance currently being provided, subject of course to compatibility with EU State Aid requirements. In the interim the reduced rates applicable to fuel used will be maintained.

Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 218: To ask the Tánaiste and Minister for Finance the threshold for inheritance tax between siblings; when this level was last increased; and his views on increasing the threshold for the transfer of property to a sibling under the capital acquisitions tax code. [1382/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The Capital Acquisitions Tax (CAT) code includes group thresholds, below which CAT does not arise. The relationship between the person who provides the gift/inheritance (i.e. the disponer) and the person receiving the gift/inheritance (i.e. the beneficiary) determines the tax-free threshold applicable to the inheritance (the group threshold).

There are three categories of relationship under which an individual can get relief from CAT. The group thresholds applying to a gift or inheritance for 2008 are set out in the table below.

Any other gifts/inheritance that might have been received within the same group by an individual since 5 December 1991 are also taken into account when applying the thresholds for the purposes of calculating CAT. If the total value of all inheritances and gifts received since this date is above the relevant threshold, then a 20% CAT will apply on the difference.

As regards increasing the thresholds, the Deputy should note that these are increased on an annual basis in accordance with the CSO Consumer Price Index and I have no current plans to change this.