Joan Burton (Dublin West, Labour)
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Question 60: To ask the Minister for Finance the amount of tax forgone by the granting of a deduction for interest against rents assessable under Case V, Schedule D in the years 2001 to 2008 inclusive. [26403/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that based on personal income tax returns filed by non-PAYE taxpayers for the years 2003 to 2006 inclusive, the latest year for which this information is available, the estimated amount of tax foregone by allowing a deduction for interest on borrowings to be offset against rents assessable under Case V, Schedule D is as set out as follows.

The estimates are based on assuming that tax relief was allowed at the top income tax rate of 42% and the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers.

Corresponding suitable data is not available for the years 2001 and 2002. 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. Company returns of rental income are net of interest on borrowings and the figures for interest are not separately distinguished in those returns.

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return form 12 is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return form 11. This return is the source of the figures provided in this reply.