Tuesday, 14 December 2010
Department of Finance
Question 120: To ask the Minister for Finance if the phasing out of property based tax incentives by 2014, as set out in the National Recovery Plan and the Budget 2011, will ensure that those taxpayers subject to the minimum effective tax rate will not be able to derive financial benefit, through deferred tax relief, from these property incentives after 2014; and if he will make a statement on the matter. [47203/10]
As set out in my Budget 2011 speech and summary measures, a "guillotine" provision will ensure that all unused property-based capital allowances and section 23 reliefs are lost after 2014 and an impact assessment will be undertaken into the phased abolition and the "guillotine" provision. This impact assessment will include consideration of how restricted relief carried forward under the high earners restriction should be dealt with in the context of a "guillotine" provision for all unused property-based capital allowances and section 23 reliefs.
Question 121: To ask the Minister for Finance the amount Ireland has contributed to the International Monetary Fund in quotas and subscriptions in each of the years 2005, 2006, 2007, 2008, 2009 and to date in 2010; the position regarding subscriptions and quotas in view of the recent agreement with the European Central Bank, EU and International Monetary Fund; and if he will make a statement on the matter. [47132/10]
The majority of the International Monetary Fund's (IMF) financial resources are generated by the subscriptions of member states. Each member is assigned a quota, broadly based on its size relative to the world economy. A member's quota determines its maximum financial commitment to the IMF, its voting power, and has a bearing on its access to IMF financing. Quotas are denominated in Special Drawing Rights (SDRs*), the IMF's unit of account. A member must pay its subscription in full upon joining the Fund: up to 25 percent must be paid in SDRs or widely accepted currencies (such as the U.S. dollar, the euro, the yen, or the pound sterling), while the rest is paid in the member's own currency (in Ireland's case this is the euro).
Ireland's current IMF quota is SDR 838.4 million or 0.38%. Our quota level has been at this level for the years 2005 – 2010. A quarter of this is paid in SDRs, while the remainder remains a contingent liability on the Central Bank's balance sheet until drawn down by the IMF. It should be noted that quotas make funds available for use and the IMF can call on members at any time to contribute. Details of transactions on the Central Bank's IMF accounts are set out in the Annual Report on Ireland's Participation in the IMF and the World Bank (available at www.finance.gov.ie).
In 2008, a general review of quotas at the IMF took place. Once ratified, Ireland's holding will increase to 0.528% or SDRs 1,257 million. Furthermore, under the fourteenth review of quotas, the recent G20 Summit in Korea agreed to a set of proposals which will ultimately result in Ireland's quota being increased again to 0.724% or SDR 3,449.9 million. Ireland's quota level is not affected by the Joint EU/IMF Programme.
* At 24 November 2010 €1 = SDR 0.86547