Michael Ring (Mayo, Fine Gael)
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Question 125: To ask the Minister for Finance if he will estimate the amount of tax forfeited in 2007 by virtue of the tax exemption on stud fees. [19590/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that data for the tax year 2007 is not yet available as the income tax returns for that year are not due for filing until October 2008 (by 17th November 2008 in the case of returns filed via ROS) and the bulk of corresponding corporation tax returns are not due for filing until September 2008. Based on information that has been received and collated to date for the tax year 2006 there were 185 claims for €90.9 million. This figure would correspond to a maximum Exchequer cost of the order of €22.5 million. Such income will now be subject to tax from 31 July 2008. The relevant information available is based on tax returns by individuals and companies of tax exempt profits, including distributions out of exempt income, from greyhound and stallion stud fees for the tax year 2006.

Michael Ring (Mayo, Fine Gael)
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Question 126: To ask the Minister for Finance if he will detail the evidence to justify the reason there should be a tax exemption for stud fees. [19591/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The bloodstock industry and the wider racing industry are important economic drivers in rural Ireland. Despite its small size, Ireland is the third largest producer of thoroughbreds in the world and accounts for 42% of total EU output. In recent years up to 70% of the world's top stallions have been located in Ireland. This sector has been built from a cottage industry and I am satisfied that the tax exemption regime in force since 1969 has made an important contribution to its growth. However, the Deputy may be interested to know that, as provided for in the 2006 and 2007 Finance Bills, the tax exemption will terminate with effect from 31 July this year. I believe that the industry is mature enough and strong enough to continue to thrive in the future.