Written answers

Tuesday, 17 February 2009

9:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 168: To ask the Minister for Finance the breakdown of the estimated €1 billion saving to the Exchequer referred to in the reply to Parliamentary Question No. 170 of 4 February 2009; if relief for these deductions and reliefs was confined to the standard rate of income tax; and if he will make a statement on the matter. [6012/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that a breakdown of the savings to the Exchequer, estimated to be of the order of €1 billion, from confining to the standard rate of income tax those deductions and reliefs which are allowable for tax at an individual's marginal rate is set out as follows for the year 2005, the most recent year for which the necessary detailed information is available except where otherwise stated. As I stated in my previous reply, 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 Provision2005 CostSaving to Exchequer if tax relief was confined to the standard rate of income tax
€m€m
Person Taking Care of Incapacitated Taxpayer1.80.8
Health Expenses134.055.0
Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received3.21.4
Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties.22.210.0
Expenses Allowable to Employees under Schedule E65.025.0
Donations to Approved Bodies34.015.7
Donations to Sports Bodies.0.20.1
Retirement Relief for certain Sports Persons.0.30.2
Revenue Job Assist allowance0.40.07
Allowance for seafarers0.40.1
Investment in Corporate Trades (BES)16.18.5
Investment in Seed Capital1.30.6
Stock Relief2.00.7
Relief for expenditure on significant buildings and gardens3.31.2
Donation of Heritage items5.81.9
Capital Allowances (Income Tax only)734.5305.0
Rented Residential Relief — Section 23239.7125.6
Investment in Films15.78.2
Employees' Contributions to Approved Superannuation Schemes*540.0255.0
Retirement Annuity Premiums*380.0196.0
Personal Retirement Savings Accounts*120.056.0
Total2,319.91,067.07
*Estimate of cost revised for 2006 as part of the work on the Green Paper on Pensions.

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