Olivia Mitchell (Dublin South, Fine Gael)
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Question 96: To ask the Minister for Finance if he will consider a "Beckham tax", a favourable income tax rate to incentivise high-earning foreign job creators and persons with unique or scarce skills to relocate here; and if he will make a statement on the matter. [13866/11]

Michael Noonan (Limerick City, Fine Gael)
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Section 825B of the Taxes Consolidation Act 1997 (which has effect for the 2009 tax year onwards) provides relief to certain individuals who are not Irish domiciled and who, before they came to the State, had been living and working in a country with which the State has a double taxation agreement. This is sometimes referred to as the Special Assignment Relief Programme. The provision applies where the individual is sent by his or her foreign employer to work in the State for that employer or for an associated company of that employer and continues to be paid from abroad. Under the provision, such individuals may have the tax on the income from the foreign employment that is attributable to duties of that employment exercised in the State reduced to the greater of the tax due on either (a) €100,000 plus 50% of the income of the employment over that amount; or (b) the income from that employment remitted to the State (any tax deducted by the employer via the PAYE system is deemed to be a remittance).

The provisions only apply if tax under the PAYE system has first been deducted in respect of the income of the non-Irish sourced employment attributable to the performance in the State of the duties of that employment. If an individual makes a claim for repayment of tax under this section, and subsequently remits to the State more income from the employment, he or she will be liable to repay any tax refunded to Revenue. Under the present scheme, which was introduced by the previous Government, there is no requirement for the qualifying individuals to have unique or scarce jobs skills. As with all tax incentives and reliefs, the provisions of the current scheme will be reviewed as part of the annual Budget and Finance Bill process.

Tommy Broughan (Dublin North East, Labour)
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Question 97: To ask the Minister for Finance the key conditions of the cost benefit analysis carried out by him into the cut in VAT rate to 9% for the hospitality and other sectors of the economy; the number of jobs it is anticipated that will be delivered from this element of the jobs initiative over the next three to four years; and if he will make a statement on the matter. [13882/11]

Michael Noonan (Limerick City, Fine Gael)
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As announced under the Jobs Initiative, a second reduced VAT rate of 9% is to be introduced on a temporary basis in respect of certain services and goods mainly related to tourism for the period 1 July 2011 to the end of 2013. Specifically, the 9% rate will apply to restaurant and catering services; hotel and holiday accommodation; various entertainment services such as admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions and fairgrounds or amusement parks, the use of sporting facilities; hairdressing services; and printed matter such as brochures, maps, programmes, leaflets, catalogues, newspapers and magazines. In reducing the VAT burden on activities related to the tourism industry, this measure is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector.

Given that it is difficult to estimate the effectiveness of VAT reductions on increasing labour, the focusing of this measure on the tourism sector is designed to optimise its effectiveness in leading to employment growth. The measure to be successful requires the reduction in VAT to be passed on to consumers through a reduction in prices in the tourism sector. With this in mind, the VAT change announced in the Jobs Initiative will be kept under review and evaluated before end 2012 in order to determine its effectiveness in aiding the industry. If it is shown that the VAT reduction has little or no effect in aiding the industry then the measure is open to being reformed or abolished.