Written answers

Thursday, 21 July 2011

7:00 pm

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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Question 130: To ask the Minister for Finance if he will detail the property tax reliefs that exist; their current annual cost to the State in tax forgone; and if he will make a statement on the matter. [22394/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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It is assumed that the Deputy is referring to the following two property-based tax incentive schemes that remain in the tax code: the scheme for Qualifying Specialist Palliative Care Units (subject to Commencement Order) and the Mid-Shannon Corridor Tourism Infrastructure Investment Scheme under which tax relief applies to qualifying expenditure incurred up to 31 May 2015. I am informed by the Revenue Commissioners that based on information regarding the cost of these schemes, which has been received and collated for the tax year 2009, the latest year for which data is available, the estimated annual cost to the Exchequer in terms of tax forgone is €0.2 million.

All other such property-based schemes have been terminated, subject to transitional arrangements for certain schemes where projects were already in the pipeline. However, due to their nature these "legacy" reliefs continue to impose ongoing costs on the Exchequer in terms of tax foregone.

I have initiated an economic impact assessment in relation to all the "legacy" property-based tax reliefs, and a public consultation is currently underway as the first stage in that process. The results of this assessment will be considered in the context of the forthcoming Budget.

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