Pearse Doherty (Donegal South West, Sinn Fein)
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Question 78: To ask the Minister for Finance the number of persons who paid capital acquisitions tax in the years 2005, 2006, 2007, 2008, 2009 and 2010; and if he will analyse the numbers in each year based on whether they fell within group threshold A, B or C. [20802/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the information available in respect of numbers of persons who paid Capital Acquisitions Tax is as follows:

A breakdown for 2009 by Group Threshold A, B and C of numbers who paid Capital Acquisitions Tax is as follows:

Details from returns are not maintained in such a way as to provide a basis for compiling this information for earlier years.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 79: To ask the Minister for Finance the estimated cost of the tax foregone for thresholds A, B and C to capital acquisitions tax for the years 2005, 2006, 2007, 2008, 2009 and 2010. [20803/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 80: To ask the Minister for Finance the likely additional yield of capital acquisitions tax in the years 2009 and 2010 if the thresholds had been €200,000 for group A and €20,000 for groups B and C. [20804/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 81: To ask the Minister for Finance the likely additional yield of capital acquisitions tax in the years 2009 and 2010 if the thresholds had been €250,000 for group A and €25,000 for groups B and C. [20805/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 79 to 81, inclusive, together.

I am advised by the Revenue Commissioners that the relevant information on the cost of tax foregone in respect of group thresholds for Capital Acquisition Tax (CAT) is only available for the year 2009. The estimated tax foregone in that year for group threshold A is €134m, group threshold B €79m and group threshold C €17m. It is assumed the Deputy is asking for the potential yield if there were no tax free thresholds and gifts and inheritances were taxable in full. Revenue do not receive information on gifts and inheritances which currently do not have to be declared so it is not possible to estimate the potential yield if such benefits were brought into the tax net.

The group tax free threshold amounts for 2009 and 2010 were: - From 1 January 2009 to 7 April 2009: €542,544 for group A, €54,254 for group B and €27,127 for group C. - From 8 April 2009 to 31 December 2009: €434,000 for group A, €43,400 for group B and €21,700 for group C. - From 1 January 2010 to 7 December 2010: €414,799 for group A, €41,481 for group B and €20,740 for group C. - From 8 December 2010 to 31 December 2010 (and to date) the thresholds are €332,084 for group A, €33,208 for group B and €16,604 for group C.

The additional yield from reducing the thresholds for CAT to €250,000 for Group A and €25,000 for Groups B and C, as compared with the actual thresholds, is estimated to be of the order of €97 million for 2009 and €75 million for 2010. On the same basis the corresponding yields from reducing the thresholds to €200,000 for Group A and €20,000 for Groups B and C are estimated to be €121 million for 2009 and €100 million for 2010.

The proposed group C threshold of €25,000 is greater than the group C thresholds which applied in practice from 8 April 2009 to 31 December 2010 (and to date). The proposed group C threshold of €20,000 is greater than the actual group C threshold for the period 8 December 2010 to 31 December 2010 (and to date). Implementing these thresholds would have given rise to an Exchequer cost, not a yield, amounting to €2.5 million in 2009 and €3.6 million in 2010 if the Group C threshold had been €25,000; and €0.2 million in 2010 if the Group C threshold had been €20,000.

All estimates are based on transactions recorded in 2009. It should be noted that these estimates are based upon an assumption that there would be no behavioural impact of the suggested changes, which could lead to a less than expected result from a change to the tax base. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets which are currently occurring in the economy.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 82: To ask the Minister for Finance the effect to the capital acquisitions tax yield in tax forgone for the years 2005, 2006, 2007, 2008, 2009 and 2010 of the following exemptions: dwelling house, heritage property, retirement benefits and charities. [20806/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that estimates of the cost to the Exchequer of Capital Acquisitions Tax (CAT) forgone arising from reliefs for dwelling houses, heritage property, retirement benefits and charities are as shown in the following table to the extent that they are available:

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 83: To ask the Minister for Finance the estimated additional tax yield arising in 2011 if the imputed distribution from approved retirement funds (details supplied) was set up. [20807/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 84: To ask the Minister for Finance the current number of approved retirement funds in existence; and the number of funds falling within each of the following categories (details supplied). [20808/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 127: To ask the Minister for Finance the estimated total value of approved retirement funds on which the 0.6% pension levy does not apply. [21049/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 128: To ask the Minister for Finance the number of approved retirement funds created in the State since their inception; and the average value of each ARF. [21050/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 83, 84, 127 and 128 together.

These four questions all relate in one way or another to Approved Retirement Funds or ARFs. There is no requirement on qualifying fund managers who hold ARFs on behalf of the individuals entitled to the assets in those funds to provide data to my Department or to the Revenue Commissioners in relation to the value of assets in ARFs or on the numbers of ARFs held by them. I am not, therefore, in a position to provide the statistical data on ARF values and numbers requested by the Deputy.

As regards the imputed or notional distribution from ARFs, Budget and Finance Act 2006 introduced this measure at a rate of 3% of the value of the assets of an ARF on 31 December each year, which distributions are taxed at the ARF owner's marginal income tax rate. Funds actually drawn down from ARFs by ARF owners are already subject to tax at the marginal rate and such draw downs are credited against the imputed distribution in the year to arrive at a net imputed amount, if any, for the year. This measure was introduced to encourage the use of ARFs as intended – that is to fund an income stream in retirement.

The rate of notional distribution was increased in Budget and Finance Act 2011 to 5% and the increase applies to asset values at 31 December 2010 and future years.

Since detailed data on ARF values and numbers are not available to my Department, for the reason already explained, I am not in a position to provide an estimate of the additional tax yield based on the incremental ARF value and notional distribution rate approach set out in the details supplied with the question. I have indicated previously that I intend to examine, as part of my preparations for Budget 2012, how best to amend the existing arrangements insofar as higher value ARFs are concerned while ensuring that more modest ARFs are protected.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 85: To ask the Minister for Finance the amount of tax forgone in the years 2008 and 2009 and his estimate of the tax lost in 2010 due to the writing down of the value of land and property purchased during the property bubble and held as trading stock by property developers. [20809/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that taxable profits and allowable losses of a trade are computed in accordance with generally accepted accounting practice, subject to such adjustments as are required by tax legislation. Under generally accepted accounting practice, the value of land and property held by property developers as trading stock should be stated in the accounts at the lower of cost or net realisable value. The fall in land and property values in recent years has resulted in some property developers writing down the value of land and property held as trading stock in their accounts thereby resulting in a trading loss or a reduction in taxable profits. However, as the amount of any trading loss or reduction taxable profits that is attributable to such write-downs in land or property values is not separately shown in the income tax or corporation tax returns of developers, it is not possible to estimate the amount of tax foregone as a result of such accounting adjustments.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 86: To ask the Minister for Finance the number of audits carried out by the Revenue Commissioners to verify the revised valuations of property or land held by property developers in 2008, 2009, 2010 and to date in 2011. [20810/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 87: To ask the Minister for Finance the number of trained valuers or other property professionals employed by the Revenue Commissioners to carry out tax audits where property valuations are an issue. [20811/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 86 and 87 together.

I am informed by Revenue that cases are selected for audit based on the risks in the case. Revenue carried out the following number of audits specifically in the 'Development and Selling of Real Estate' sector and the results are as follows:

2008 - 465 audits - €33.8 million yield

2009 - 377 audits - €27.6 million yield

2010 - 318 audits - €22 million yield

These figures do not include losses restricted following Revenue intervention which, in 2010, amounted to €1.58 million.

The risks associated with the write-down of property values is one of the risks that is considered in the audit of cases in this sector. Revenue does not directly employ valuers or property professionals for the purpose of carrying out audits. Where professional valuation services are required in the course of an audit, Revenue has recourse to a panel of professional valuation services set up following a public tendering procedure.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 88: To ask the Minister for Finance the amount of tax forgone in 2008, 2009, 2010 and to date in 2011 by the State as a result of incorporated bodies' claiming losses against profits earned in a previous year. [20812/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 89: To ask the Minister for Finance the amount of tax refunded in 2008, 2009, 2010 and to date in 2011 as a result of companies' setting current year losses back to a previous profitable year. [20813/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 88 and 89 together.

I am informed by the Revenue Commissioners that information in relation to tax losses claimed by companies against profits earned in a previous year is derived from corporation tax returns filed for the years 2008 and 2009. Data for the year 2010 is not yet available.

On the basis of information derived from corporation tax returns for 2008, the amount of trading losses carried back for offset against profits earned in a previous year is €1,573 million. The corresponding figure for carry back of trading losses in 2009 against profits earned in a previous year is €868 million.

Figures of corporation tax refunds to companies arising from carry-back of trading losses cannot be separately identified from refunds issued for other reasons.

The Deputy may wish to note the report on Revenue – Loss Reliefs that is contained in Chapter 17 of the Report of the Comptroller and Auditor General, Accounts of the Public Service, 2009.