Mary Upton (Dublin South Central, Labour)
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Question 68: To ask the Minister for Finance if he will explain the rationale for changing payment dates with respect to corporation tax and capital gains tax; the expected impact of these measures on Government cashflow in 2009; and if he will make a statement on the matter. [38837/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 101: To ask the Minister for Finance if an assessment has been carried out on the administration cost that will be imposed on businesses by bringing forward the due dates for corporation profit tax and capital gains tax; and if he will make a statement on the matter. [39091/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 68 and 101 together.

In my Budget speech, I announced that the current single payment date for preliminary corporation tax for large companies (those whose corporation tax liability in their previous accounting period is more than €200,000) will be split into two instalments. This will apply to accounting periods commencing on or after Budget Day, 14 October 2008. The details of how the new arrangements will work are set out in the Summary of Budget Measures which forms part of the published Budget 2009 documentation.

The change to the preliminary tax payment dates will give rise to an estimated once-off cash flow gain to the Exchequer of €350 million in 2009. The change involving the bringing forward of the payment date in 2009 for individuals paying capital gains tax will generate a further €200 million in 2009 on a once-off basis. The rationale for these changes is the need to stabilise the public finances and all sections of the economy and community have to play their part in addressing the fiscal challenges we are facing.

As regards additional administration burdens on business, it should be noted that well over 90% of companies, that is small companies with a corporation tax liability of €200,000 or less in their previous accounting period will not be affected by the changes to the payment dates for preliminary corporation tax. Moreover, despite the need to secure substantial increases in tax revenue, the Budget was carefully structured so as not to worsen the competitive position of Irish business and to include measures to support jobs, encourage enterprise and enhance our productive capacity. These additional measures include: an increase in the rate of R&D tax credit from 20% to 25%, a remission of corporation tax and capital gains tax for new start up companies in their first three years of trading where their tax liability in any year does not exceed €40,000, and an extension of the deadlines for the online submission by businesses of tax returns and payments.

I should also make the point that the Revenue Commissioners have in recent years introduced many simplification measures designed to ease the compliance burden for business. The measures have involved legislative, administrative, operational and e-business aspects. A comprehensive programme to systematically consolidate and streamline the body of older legislation governing the various taxes and duties has made significant progress in streamlining and simplifying the regulatory environment for business. Less frequent filing obligations and increased registration thresholds introduced in recent years have reduced the administrative burden for thousands of small businesses. The development of the Revenue On-Line System (ROS) has also been acknowledged as a major contributor to the reduction of the administrative burden on business.

Reducing the administrative burden on business has been and continues to be a key priority for Revenue and their efforts in this area have been acknowledged by business representatives.

Jack Wall (Kildare South, Labour)
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Question 69: To ask the Minister for Finance if he intends for prospective carbon tax to be revenue neutral as set out in the programme for Government; and if he will make a statement on the matter. [38826/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Programme for Government includes a commitment to introduce a carbon tax/levy on a revenue neutral basis over the lifetime of the Government. This will, of course, form an important part of the normal deliberative process of the Government in setting fiscal and environmental policy.

The Deputy will be aware the matter of a carbon tax is being considered by the Commission on Taxation and the Commission is due to report by September 2009 at the latest.