Seán Sherlock (Cork East, Labour)
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Question 59: To ask the Tánaiste and Minister for Finance his views on introducing legislation that would add registered veterinary premises to the definition in section 268 of the Taxes Consolidation Act 1997 to enable veterinary practitioners to avail of the industrial buildings allowance; and if he will make a statement on the matter. [5698/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I have indicated previously, while I am a supporter of properly focused, clearly defined specific tax reliefs, such reliefs narrow the tax base. A broad tax base is the price that must be paid to keep tax rates low and low tax rates benefit businesses generally in this country, including that of veterinary practitioners. Any proposal for new tax reliefs has to be considered in this context. At this point I have no plans to introduce a new tax break for the provision of financial assistance to registered veterinary practitioners for the upgrading of their practice premise. Veterinary practitioners can qualify for wear and tear allowances on plant and machinery used in their business in the normal way.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 60: To ask the Tánaiste and Minister for Finance if, in view of his changes to the VAT code in the Finance Bill 2008, he will make similar changes to the level of VAT charged to community groups for the purchase of defibrillators; and if he will make a statement on the matter. [5832/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume the Deputy is asking for the rate of VAT applied to the supply of defibrillators to be reduced. The Deputy should be aware that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. Accordingly, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer.

In relation to the VAT rate that applies to defibrillators, the position is that under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators. Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate which in Ireland is 21%.

Willie Penrose (Longford-Westmeath, Labour)
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Question 61: To ask the Tánaiste and Minister for Finance the tax allowances and credits due to a person who is the father of three children and is living with the mother of the said three children, which partner is not employed outside of the home; if that person is entitled to tax credits for said three children. [5842/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am assuming in this case that the Deputy's question refers to an unmarried cohabiting couple with children. On that basis, I am informed by the Revenue Commissioners that the main tax credits and reliefs available to a person in the circumstances set out in the question are as follows:

the single person's tax credit of €1,830;

the employee tax credit of €1,830 (assuming the individual is in PAYE employment); and

relief in respect of health expenses for himself and his 3 children and, for the tax year 2007 onwards, for his partner. For the three years prior to 2007, any claim in this regard would be subject to a de minimis deduction of €125 if the claim is for one qualifying person or €250 if the claim is for more than one qualifying person.

The first €35,400 of his income is taxable at 20% and the balance is taxable at 41%.

I am further informed by the Revenue Commissioners that, other than the incapacitated child tax credit, there are no tax credits available in respect of children and that the one parent family tax credit is not due in cases where a parent is cohabiting with a partner as man and wife.

Joan Burton (Dublin West, Labour)
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Question 62: To ask the Tánaiste and Minister for Finance if, in relation to the exemption from capital gains tax enjoyed by sporting and certain other bodies provided that no portion of the body's income or property is paid or transferred, directly or indirectly, by way of dividend, bonus or otherwise howsoever by way of profit, to the members, the use by such a body of the capital sum paid to it in connection with a land swap deal for the purposes of subsidising membership fees at a rate that would otherwise be uneconomic and unsustainable could be held to amount to a return of profits by the body to its members and so be in breach of the rules relating to the exemption from CGT for such bodies; and if he will make a statement on the matter. [5892/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the exemption from Capital Gains Tax (CGT) for sporting bodies is contained in Sections 235, 610 and Schedule 15, Paragraph 37, Taxes Consolidation Act 1997. Section 235 gives an Income Tax exemption to sporting bodies, which have been approved by the Revenue Commissioners on the basis that the body was established for, and exists for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the proportion of the income of the approved body as has been, or will be, applied to the sole purpose mentioned above. This approval may be withdrawn.

The CGT exemption is given to an approved body to the extent that the proceeds of any disposal (or if greater, the consideration) are applied to the sole purpose of Section 235. The specific circumstances surrounding a situation where the proceeds of a land swap were used to reduce membership fees would have to be considered in the context of that case in order to examine what the implications would be for CGT (and perhaps Income Tax) exemptions, and on the body's approval status.