Written answers

Thursday, 16 December 2010

5:00 am

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 166: To ask the Minister for Finance further to Parliamentary Question No. 20 of 8 December 2010, if he will provide a breakdown of interest allowed for tax purposes in respect of the construction and property development sectors for each tax year from 2000; and if he will make a statement on the matter. [48038/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy is seeking information on the amount of interest on borrowings claimed as a deduction for corporation tax by companies in the property or construction sectors for year 2000 and onwards.

As indicated in my reply of 8 December to parliamentary question number 46635/10 information in relation to interest claimed as a deduction is so far available only for the tax years 2007 and 2008. In corporation tax returns for 2007 interest claimed by these companies was just over €1 billion, with an assumed associated maximum tax cost of approximately €129 million as indicated in the earlier reply. The corresponding interest claimed in corporation tax returns for 2008 was just over €1.3 billion, assuming an associated maximum tax cost of approximately €165m.

This information is not available for years prior to 2007 because the source of the data, which is the inclusion of extracts from all company accounts within corporation tax returns, was not a requirement for all companies prior to 2007.

The sector identifier on the tax records that is used to identify the property or construction sectors is based on the 4-digit NACE code (Rev. 1), which is an internationally recognised economic activity code system.

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