Michael Ring (Mayo, Fine Gael)
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Question 113: To ask the Tánaiste and Minister for Finance if he will confirm that the Revenue Commissioners have decided that from 18 March 2008 penalties will no longer be applied when calculating tax liabilities for deceased persons and their estates. [13961/08]

Michael Ring (Mayo, Fine Gael)
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Question 114: To ask the Tánaiste and Minister for Finance if, in view of the decision by the Revenue Commissioners not to charge penalties on the estates of deceased non-compliant tax payers from 18 March 2008, he will request the Revenue Commissioners to repay such penalties imposed on estates processed prior to that date. [13962/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 113 and 114 together.

I am advised by the Revenue Commissioners that they have, with effect from 18 March 2008, implemented revised arrangements regarding the recovery of penalties in tax settlements involving deceased persons. Where the taxpayer dies before a settlement has been agreed with Revenue, Revenue will not seek recovery of any penalty element from the deceased's personal representatives (and will discontinue proceedings for recovery of such penalty if they have been initiated).

I am advised that settlements finalised before 18 March 2008 will not be reopened by Revenue. These negotiated settlements, made in good faith by both parties, will generally have involved unreserved letters of offer and acceptance and are considered to be binding.

I should point out that where a settlement that includes a penalty element has been agreed between Revenue and a deceased taxpayer prior to his/her death (or where a penalty has been awarded in proceedings finalised prior to the taxpayer's death), and that penalty remains unpaid or not fully paid as at the date of death, Revenue will continue to proceed against the personal representatives of the deceased for the recovery of that unpaid penalty. There is no change to existing Revenue practice in these particular circumstances.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 115: To ask the Tánaiste and Minister for Finance when the accelerated capital allowances for certain energy efficient equipment set out in Section 46 of the Finance Act 2008 will take effect; and the person who will determine the list of eligible equipment. [14040/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In Finance Act 2008, I introduced a new tax initiative to encourage the use of energy efficient equipment by companies for their business. This accelerated capital allowance incentive will allow companies to claim the full cost of specified energy efficient equipment against their profits in the year of purchase. Expenditure must be above a certain minimum amount for each class of technology covered by the scheme. The incentive will be confined to new energy efficient equipment purchased by companies and it will not apply to equipment that is leased, let or hired.

The incentive will come into effect by order when EU State-aid approval is obtained. The process of applying for State-aid approval from the EU Commission is currently being progressed by my Department and the Department of Communications, Energy and Natural Resources. While the approval issue is not entirely within our control, the aim is to expedite matters as soon as possible.

The energy efficiency criteria to be met by eligible equipment and the specified eligible products under the three classes of technology covered by the incentive (motors and drives, lighting and building energy management systems) will be published in a list established by order of the Minister for Communications, Energy and Natural Resources (with the approval of the Minister for Finance). The list will be maintained by Sustainable Energy Ireland. Issues relating to the criteria and the publication of the list of equipment eligible for the incentive are matters for my colleague, the Minister for Communications, Energy and Natural Resources.

Finally, I should make the point that the incentive will run for a period of 3 years from the date when the first order establishing the list of energy efficient equipment is made. Energy-efficient equipment purchased in the period between 31 January 2008 (including that date) and the date of the first order will qualify under the scheme, provided the equipment purchased in that period is on the list established by that first order.