Bernard Durkan (Kildare North, Fine Gael)
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Question 89: To ask the Minister for Finance notwithstanding his reply to previous parliamentary questions in the matter, the way it can be determined that a person (details supplied) in County Kildare is deemed not eligible for refund of interest paid to lending institutions on foot of money borrowed to meet capital gains tax requirements set out by the Revenue Commissioners, which was subsequently abandoned due to failure of contract given that they were without use of funds to the extent of €700,000 interest during the period in question; if these issues can now be reconsidered in view of the serious penalty imposed on the taxpayer; and if he will make a statement on the matter. [3200/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been informed by the Revenue Commissioners that the taxpayer, in this case, borrowed money to pay a Capital Gains Tax liability that arose from a disposal that was covered by a contract dated 24 March 2004. At the time the sale was due to close the purchaser withdrew from it and forfeited the deposits paid. Revenue received confirmation that the contract was rescinded on 24 March 2009. As a result of this, the Capital Gains Tax liability was recalculated to reflect the actual consideration received and a refund of Capital Gains Tax was made on 7 July 2009. There is no legislative basis whereby a taxpayer can receive a payment through the tax system to meet the cost of interest he paid on borrowings to meet a Capital Gains Tax liability.