Written answers

Tuesday, 6 October 2009

9:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 374: To ask the Minister for Finance the amount that would be saved by the Exchequer if mortgage interest relief for landlords was abolished. [34444/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The level at which interest repayments can be claimed against tax for residential rental properties was reduced from 100% to 75% in section 5 of the Finance Act 2009 at an estimated full year yield of €95 million. On this basis the saving from full abolition of the tax relief would be of the order of € 285 million in a full year.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 375: To ask the Minister for Finance the return to the Exchequer of a 5% increase in DIRT. [34445/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the yield to the Exchequer from increasing the DIRT rate by five percentage points is estimated at €145m in a full year.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 376: To ask the Minister for Finance the return to the Exchequer of an increase in betting shop profits from 2% to 10%. [34446/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed the Deputy is referring to Betting Duty. The amount of Betting Duty paid in 2008 was €36.6m and the estimated yield in 2009 is around €31m. As the rate of Betting Duty in those years was 1 per cent, one could at first glance assume that the yield from a 10 per cent rate would be in the order of ten times those amounts. However, such a figure would not be realised. It is likely that a Betting Duty rate of 10 per cent would have a detrimental affect on the betting industry.

As the Deputy may be aware, due to pressure on the betting sector, I decided to defer the introduction of the increase in the betting duty provided for in Finance (No. 2) Act 2008 pending a review. Accordingly, the Finance Act 2009 contains a provision for continuing the existing betting duty rate of 1% unless and until an order is made bringing the 2% rate into effect, or alternative betting taxation arrangements are enacted. This decision is based on the premise that the betting sector will engage in constructive discussions about putting in place a fair and workable tax base for the sector. Such discussions will, inter alia, touch on issues such as online/phone betting, which is largely untaxed, and look at proposals that could potentially bring this area into the tax net, if possible, while also protecting Irish employment in the sector.

To this end my officials, in conjunction with the Office of the Attorney General, the Office of the Revenue Commissioners and the Department of Justice, Equality and Law Reform, are looking at the scope to overcome legal and operational difficulties in the area of internet gambling and will continue to do so, on an ongoing basis.

In addition, my Department is working closely with the Department of Justice, Equality and Law Reform which has initiated a review in order to provide the Government with options for a new and comprehensive legal and organisational framework governing gambling architecture in the State. The review, amongst other things, will consider:

· the recommendations contained in the Report Regulating Gaming in Ireland,

· the existing law regulating gaming lotteries and other forms of gambling in the jurisdiction,

· international developments, in particular the experience of the UK's Gambling Commission,

· developments in relation to remote gambling (e.g. via the internet and mobile phones).

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