Róisín Shortall (Dublin North West, Labour)
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Question 204: To ask the Minister for Finance further to the table produced in reply to Parliamentary Question No. 115 of 2 October 2008, if he will provide the figure for tax year 2006 and the provisional figure for tax year 2007. [3442/09]

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 2006 and 2007, 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 set out as follows.

The figure given for 2006 is an upward revision of a figure provided in the reply given on 2 October last. The revision was necessitated by new historical information becoming available in the interim.

The estimates are based on assuming that tax relief was allowed at the top income tax rate of 42% for 2006 and 41% for 2007 and the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers.

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.