Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 196: To ask the Minister for Finance if, in view of the recommendations of the report of the Commission on Taxation, changes will be made to the capital acquisitions tax; and if he will make a statement on the matter. [6676/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Commission on Taxation recommended the reduction of Capital Acquisitions Tax (CAT) business relief and agricultural relief from 90% to 75%, and an overall cap on the reduction via these reliefs of €3 million (Recommendations 8.70 and 8.71). The Commission also recommended that the two reliefs be amalgamated (recommendation 8.72). In the context of Budget 2010 and Finance Bill 2010 the Government considered these and other recommendations of the Commission but it was decided not to address these matters at this stage. The Finance Bill, which was published last Thursday, 4 February, contains proposals to reform and modernise the administration of CAT, including provisions that certain complex reliefs, including business relief and agricultural relief, can only be claimed electronically. This is in line with recommendation 5.42 of the Commission on Taxation report, that taxpayers should be required to file returns electronically where detailed data is needed to evaluate tax expenditures.