Mary Upton (Dublin South Central, Labour)
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Question 217: To ask the Minister for Finance the progress made identifying ways of securing revenue from on-line gambling which originates here; when he expects to publish his recommendations; his views on whether this could be a new and important form of revenue; and if he will make a statement on the matter. [36793/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. Bets placed either on-line or over the phone are generally with out-of-State companies so applying betting duty is therefore problematic. 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 this area 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 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).

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 on-line/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.

Arthur Morgan (Louth, Sinn Fein)
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Question 218: To ask the Minister for Finance the cost to the Exchequer to introduce refundable tax credits for persons on incomes currently not benefitting from the tax credit system. [36804/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the most recent estimated cost of making the main personal and PAYE tax credits refundable when they are unused would be likely to be in excess of €3 billion annually. This estimate relates only to the cost of extending refundable tax credits to all those on the Revenue's tax files. If a refundable tax credit system were to be introduced, one would have to consider those who are not on the tax files, for example, those who are of employable age but not working, including those on social welfare. If such categories were eligible this would increase the cost significantly. Apart from the issue of cost, there would be a range of other policy and practical issues arising in introducing such a system.