Jimmy Deenihan (Kerry North, Fine Gael)
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Question 176: To ask the Minister for Finance the total cost paid by the State in grants, tax reliefs, allowances and all other means to facilitate the development of hotels in Ireland from 2004 to date in 2010; the cost on an annualised basis; the cost of taxes forgone in that period due to reliefs granted to facilitate the developments of hotels in Ireland from 2004 and to date in 2010; the cost on an annualised basis, the number of hotels developed here as a result of all grants, allowances, taxes forgone and other means in the period 2004 to date in 2010; and if he will make a statement on the matter. [39827/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of the property related tax relief for the development of hotels is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years 2004 to 2008, the latest year for which this information is available. These are set out in the following table. The figures are composite costs for both commercial and residential property reliefs.

Cost to the Exchequer of Hotels

I should also point out that the provisions of section 23 Finance Act 2010 severely curtails the amount of tax reliefs that can be used to reduce the income tax liability of those on high incomes. These provisions ensure that, in addition to the income levy, those with high incomes and using reliefs will have an effective income tax rate of about 30%. This measure applies to a list of specified reliefs, including most of the area and sectoral based property incentive schemes, the use of all of which has been curtailed as a result of this change.

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11). The estimated relief claimed has assumed tax forgone at the 41% rate for 2008 in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax. The figures for 2008 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.

Projections for income tax receipts are based on assumed movements in macro-economic parameters and not by reference to the costs of individual tax reliefs. Accordingly, I am not in a position to provide the projected cost data requested by the Deputy for the year 2010 in relation to the above-mentioned reliefs.

Jimmy Deenihan (Kerry North, Fine Gael)
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Question 177: To ask the Minister for Finance the total cost to the Exchequer in grants, tax reliefs or other payments given, and taxes forgone, of the provision of student accommodation from 2004 to date in 2010; and if he will make a statement on the matter. [39829/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As Minister for Finance I have responsibility for the scheme of capital allowances introduced to support the construction of student accomodation. My Department is not involved in the payment of grants for the provision of student accommodation. Section 50 Finance Act 1999 introduced a scheme of tax relief for rented residential accommodation for third level students. The relief provided for a deduction of 100% of the construction, conversion or refurbishment expenditure, which could be off-set against all Irish rental income – whether derived from the premises in question or from other lettings. The purpose of the relief was to increase the supply of quality accommodation for third level students and the scheme was very successful in that respect. The scheme was abolished by Finance Act 2006 with a final termination date of 31 July 2008 for qualifying capital expenditure.

I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of the property based tax relief for the provision of student accommodation is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years 2004 to 2008, the latest year for which this information is available. These are set out in the following table.

Cost of tax relief for provision of Student Accommodation

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11). The estimated relief claimed has assumed tax forgone at the 41% rate for 2008 in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax.

The figures for 2008 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended. Since tax returns from non-PAYE taxpayers for the tax year 2009 are only now being required to be made, data is not available on which to provide costings for that year or for 2010.

I should also point out that the provisions of section 23 Finance Act 2010 severely curtails the amount of tax reliefs that can be used to reduce the income tax liability of those on high incomes. These provisions ensure that, in addition to the income levy, those with high incomes and using reliefs will have an effective income tax rate of about 30%. This measure applies to a list of specified reliefs, including most of the area and sectoral based property incentive schemes, the use of all of which has been curtailed as a result of this change.

Jimmy Deenihan (Kerry North, Fine Gael)
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Question 178: To ask the Minister for Finance the total cost to the State of the development of private hospitals, including all tax reliefs, allowances, taxes forgone and all other such costs, since 2004 and to date in 2010; and if he will make a statement on the matter. [39830/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As Minister for Finance I have responsibility for the scheme of capital allowances introduced to encourage the construction or refurbishment of buildings used as private hospitals. This scheme was introduced in Finance Act 2001 and came into effect in May 2002. Capital allowances are available in respect of capital expenditure incurred on the construction or refurbishment of a building coming within the definition of a qualifying hospital set out in section 268 (2A) of the Taxes Consolidation Act 1997.

As announced in the Supplementary Budget in April 2009 and reflected in section 8 Finance Act 2009, the scheme of capital allowances for private hospitals was terminated on 31 December 2009 along with certain other health-related capital allowances schemes, subject to transitional arrangements for pipeline projects.

I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of the tax relief for the development of private hospitals is based on personal income tax returns filed by non-PAYE taxpayers for the years 2004 to 2008, the latest year for which this information is available. These are set out in the following table.

Cost of tax relief for the provision of private hospitals

It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11). The estimated relief claimed has assumed tax forgone at the 41% rate for 2008 in the case of individuals. The figures shown correspond to the maximum Exchequer cost in terms of income tax.

The figures for 2008 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended. Since tax returns from non-PAYE taxpayers for the tax year 2009 are only now being required to be made, data is not available on which to provide costings for that year or for 2010.

I should also point out that the provisions of section 23 Finance Act 2010 severely curtails the amount of tax reliefs that can be used to reduce the income tax liability of those on high incomes. These provisions ensure that, in addition to the income levy, those with high incomes and using reliefs will have an effective income tax rate of about 30%. This measure applies to a list of specified reliefs, including most of the area and sectoral based property incentive schemes, the use of all of which has been curtailed as a result of this change.