Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 249: To ask the Minister for Finance the position regarding a claim in respect of a person (details supplied). [48530/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that they met with the taxpayer in question on the 21 December 2010 and that an agreement has been reached to the satisfaction of the taxpayer.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 250: To ask the Minister for Finance if tax compliant details of a company (details supplied) can be provided to this Deputy. [48539/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that the tax affairs of any individual/business are a confidential matter between that individual/business and the Revenue Commissioners. Accordingly, no details of compliance with statutory taxation requirements can be supplied to any third party, other than the authorized tax advisor, without the express approval of the individual/business. In general, payment of grants requires that the contractor/supplier holds a current tax clearance certificate. Persons intending to avail of a grant should therefore ensure that the contractor holds a current tax clearance certificate that will not expire before the anticipated completion of the work.

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 251: To ask the Minister for Finance if he will apply the stamp duty changes on the acquisition of residential property introduced by him to those who completed house purchases in the period 1 November 2010 up to budget day and who paid a substantially greater sum by way of stamp duty than they would have incurred had such houses purchases been completed after budget day; his views that such relief was provided for stamp duty changes introduced in 2007 in order to avoid unfairness and the reason such relief was not provided on this occasion. [48540/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Stamp Duty reforms announced in the Budget have two aims: stimulation of the property market and commencing the necessary infrastructure for the commitment in the National Recovery Plan to introduce a Site Value Tax. As a result of the changes, Stamp Duty at a rate of 1% where the property value is under €1m and 2% on the excess above €1m, will now be payable on all residential property transactions. I have put in place a transitional arrangement: where a binding contract has been entered into before 8 December 2010, and the effect of this measure would increase the Stamp Duty otherwise chargeable, Stamp Duty can be calculated and charged under the old regime, so long as the instrument effecting the transfer of the property is executed before 1 July 2011.

I have no plans to make the changes suggested by the Deputy. The overall transaction costs for property transfers are now much lower than in recent years because of the decline in property values. I am aware that there will always be winners and losers in a situation such as this, but unfortunately this will happen no matter what date is chosen to commence any new measure. For example, if I followed the Deputy's suggestion and allowed individuals who completed house purchases after 1 November 2010 to avail of the new residential property Stamp Duty rates announced in the Budget, an individual who completed a property transaction on or before 31 October would not benefit. These persons might then seek a change to the date which would lead, in time, to further requests for changes to the date.

In 2007 it had been signalled before the election that First Time Buyer relief from Stamp Duty would be extended to all first time buyers. If this change had not been backdated to its original announcement, anyone who could have benefitted from the change would not have bought property until the proposal was eventually enacted. No indication that a change was imminent was given before the change announced in Budget 2011.

Niall Collins (Limerick West, Fianna Fail)
Link to this: Individually | In context

Question 252: To ask the Minister for Finance if stamp duty is applicable to a transaction (details supplied); and if he will make a statement on the matter. [48550/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Section 83A of the Stamp Duties Consolidation Act 1999 provides for an exemption from Stamp Duty where a parent transfers a site to a child to enable the child construct a dwelling house for use as his or her only or main residence. The value of the site must not exceed €500,000 and the size of the site must not exceed 1 acre (excluding the area of the house). As the Deputy is aware, I announced in Budget 2011 a major reform of the charge to Stamp Duty on residential property transactions, which applies to all instruments executed on or after 8 December 2010. These changes have simplified the system by lowering the rates applicable and abolishing a number of exemptions and reliefs, including Site to Child relief. The "Site to Child" relief from Capital Gains Tax is unaffected by the Budget changes. In the case of the transfer of a site from a parent to a child which takes place on or after 8 December 2010, Stamp Duty is chargeable on the value of the site transferred. The normal Stamp Duty liability arising on the transfer of a site valued at €60,000, at the rate of 4%, is €2,400. However, where the parties are related, as is the case here, the duty payable is restricted to 50% of the duty that would otherwise be payable. This liability is, therefore, reduced by 50% to €1,200 because of the parent/child relationship.

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 253: To ask the Minister for Finance his plans to introduce supports or incentives to attract video game producers here through a BITES scheme or through the extension of the scope of the research and development tax credit; and if he will make a statement on the matter. [48553/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

As I announced in the recent Budget, the Business Expansion Scheme (BES) will be replaced by the new Employment and Investment Incentive (EII) once the approval of the European Commission has been received. Under the new incentive, the lifetime limit that can be raised by companies will be increased from €2 million to €10 million, and the amount that can be raised in any twelve month period will be increased from €1.5 to €2.5 million. The certification requirements will also be simplified. Full details of the new incentive will be set out in the forthcoming Finance Bill. It would be expected that video game producers would qualify for the new incentive, as indeed they would for the existing BES, which will continue to operate until the new incentive has been approved by the European Commission.

In regard to extending the scope of the research and development (R&D) tax credit, the scheme already applies to basic research, applied research and experimental development. The R&D expenditure must be in a field of science or technology and involve systematic, investigative or experimental activities. The qualifying activities must also seek to achieve scientific or technological advancement and involve the resolution of scientific or technological uncertainty.

Video games are essentially software development and would be a field of science and technology for the purposes of the scheme. If they satisfy the science test (an advance in a field of science and technology), which is the basis for most R&D incentive schemes in other countries too, they would qualify for the relief.