Written answers
Wednesday, 4 February 2009
Department of Finance
Tax Yield
9:00 pm
Arthur Morgan (Louth, Sinn Fein)
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Question 170: To ask the Minister for Finance the yield from standardising the tax relief if all discretionary tax relief schemes were made available only at the standard rate. [3746/09]
Brian 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, Pensions Contribution Relief and Capital Allowances regime. The standard rating of employee pension reliefs would also have an impact on workers' take home pay.
Tax Relief Provision | 2005 Cost |
€m | |
Person Taking Care of Incapacitated Taxpayer | 1.8 |
Health Expenses | 134.0 |
Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received | 3.2 |
Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties. | 22.2 |
Expenses Allowable to Employees under Schedule E | 65.0 |
Donations to Approved Bodies | 34.0 |
Donations to Sports Bodies. | 0.2 |
Retirement Relief for certain Sports Persons. | 0.3 |
Revenue Job Assist allowance | 0.4 |
Allowance for seafarers | 0.4 |
Investment in Corporate Trades (BES) | 16.1 |
Investment in Seed Capital | 1.3 |
Stock Relief | 2.0 |
Relief for expenditure on significant buildings and gardens | 3.3 |
Donation of Heritage items | 5.8 |
Capital Allowances ( Income Tax only) | 734.5 |
Rented Residential Relief — Section 23 | 239.7 |
Investment in Films | 15.7 |
Employees' Contributions to Approved Superannuation Schemes* | 540.0 (2006) |
Retirement Annuity Premiums* | 380.0 (2006) |
Personal Retirement Savings Accounts* | 120.0 (2006) |
Total | 2,319.9 |
*Estimate of cost revised for 2006 as part of the work on the Green Paper on Pensions. |
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