Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance the plans, if any, he has to publish the economic rationale for all existing tax reliefs and for all proposed tax reliefs being considered; and if he will make a statement on the matter. [14456/13]

Michael Noonan (Limerick City, Fine Gael)
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The rationale for existing tax reliefs is already in the public domain. The Commission on Taxation included a comprehensive review of all tax expenditures then current in its 2009 Report, with a view to assessing their economic and social benefits. The Commission examined tax expenditures introduced in legislation up to and including Finance (No. 2) Act 2008 which had not been repealed by legislation up to Finance Act 2009.

Not many tax reliefs have been introduced since that time. However, when a relief is introduced or indeed amended or abolished, this is done via the Budget and Finance Bill process. In this way any such change is done in a public manner and the reasons, economic and otherwise, behind the proposed change are fully explained. If Deputies consider that more information is required than initially is being provided by the Minister, then Committee Stage of the Finance Bill provides an opportunity for more detailed analysis to be made. Records of these Oireachtas proceedings are themselves subsequently published.

Where a particularly major change is contemplated, an additional level of analysis is undertaken, frequently involving a consultation process.

An example of such work recently conducted by my Department would be the Economic Impact Assessment of Potential Changes to Legacy Property Reliefs. This assessment, undertaken in 2011 and published by my Department, included a consultation paper, engagement from over 700 submissions and an analysis, enabled the Department to understand the possible legacy costs to the State as well as the impacts on individuals and economic sectors of a change in law relating to the use of these particular reliefs.

Another recent example is the Public Consultation on Section 481 Film Tax Relief. I published a consultation paper which set out preliminary analysis and data and invited interested parties to make submissions as part of an economic impact assessment of film tax relief. Twenty responses were received and published on my Department’s tax policy website (), along with the results of the review.

The impact assessment has enabled my Department to better understand the benefits that may accrue to the Exchequer as well as consequences for investors, the audiovisual industry, and the wider economy arising from changes to the relief and indeed such changes were included in Finance Bill 2013 currently before the Seanad.

This year I announced a comprehensive review of the R&D Tax Credit, which is currently being undertaken by my Department. The terms of reference for this review have been published on the Department’s website and interested parties are encouraged to make a submission. It is intended that the results of this review will be published in due course.

A list of all public consultations carried out by the Tax Policy Unit of my Department can be viewed on my Department’s tax policy website. I would add also that much of the preparatory work done by my Department in relation to tax policy options and choices generally is reflected in the papers prepared for and presented to the Tax Strategy Group. These papers also are subsequently published on my Department’s tax policy website.