Written answers

Thursday, 25 September 2008

5:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 28: To ask the Minister for Finance the additional revenue that would be collected by the Exchequer if all discretionary tax relief schemes were made available at the standard rate. [31313/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the deductions and reliefs which are allowable for tax at an individual's marginal rate of income tax and for which estimates of cost can be provided are set out below together with estimated costs for the year 2005, the most recent year for which the necessary detailed information is available except where otherwise stated. If relief for these deductions and reliefs was confined to the standard rate of income tax the saving to the Exchequer could be of the order of €1,000 million. This estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such a change or the economic effect of such a change. This applies in particular to the BES, Film Relief and Capital Allowances regime. The standard rating of employee pension reliefs would also have an impact on workers' take home pay.

Tax Relief Provision2005 Cost
€m
Person Taking Care of Incapacitated Taxpayer1.6
Health Expenses134.0
Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received2.8
Employees' Contributions To Approved Superannuation Schemes*430.0 (2006)
Retirement Annuity Premiums357.7
Personal Retirement Savings Accounts42.2
Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties22.2
Expenses Allowable to Employees under Schedule E65.0
Donations to Approved Bodies34.0
Donations to Sports Bodies0.2
Retirement Relief for certain Sports Persons0.2
Revenue Job Assist allowance0.4
Allowance for seafarers0.4
Investment in Corporate Trades (BES)16.1
Investment in Seed Capital1.3
Stock Relief2.0
Relief for expenditure on significant buildings and gardens3.3
Donation of Heritage items5.8
Capital Allowances (Income Tax only)734.5
Rented Residential Relief — Section 23239.7
Investment in Films15.7
Total2,109.1
*Estimate of cost revised for 2006 as part of the work on the Green Paper on Pensions

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