Written answers
Thursday, 26 September 2013
Department of Finance
Tax Reliefs Cost
Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
82. To ask the Minister for Finance if he will provide the most up to date list of discretionary tax reliefs and the revenue that would be saved, per measure, if these tax reliefs were standardised. [40268/13]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source
I am advised by the Revenue Commissioners that the deductions and reliefs which are allowable for tax at an individual’s marginal rate of income tax and for which estimates of cost can be provided are set out below together with estimated costs for the year 2010, the most recent year for which the necessary estimates are available. If relief for these deductions and reliefs was confined to the standard rate of income tax the saving to the Exchequer could be of the order of €800 million. This estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such a change or the economic effect of such a change. This applies in particular to the BES, Film Relief and Capital Allowances regime. The standard rating of employee pension reliefs would also have an impact on workers’ take home pay.
It should be noted that there have been changes since this period, i.e. some schemes have been abolished or modified and others have been introduced. For instance, as the Deputy will be aware, the BES was re-launched as the Employment and Investment Incentive, with changes to the amount of relief payable and types of companies that can qualify.
| Tax Relief Provision | Total 2010 Cost | Saving if Standard Rated |
|---|---|---|
| - | €m | €m |
| Person Taking Care of Incapacitated Taxpayer | 6.9 | 2.8 |
| Health Expenses (Nursing Homes) | 21.0 | 5.0 |
| Contributions Under Permanent Health Benefit Schemes, after Deduction of Tax on Benefits Received | 3.9 | 1.6 |
| Employees' Contributions To Approved Superannuation Schemes | 598.5 | 283.5 |
| Retirement Annuity Premiums | 180.1 | 78.5 |
| Personal Retirement Savings Accounts | 73.0 | 26.4 |
| Interest paid relating to borrowings for purposes such as acquiring an interest in a company or partnership or to pay death duties | 17.5 | 7.6 |
| Expenses Allowable to Employees under Schedule E | 66.5 | 23.3 |
| Retirement Relief for certain Sports Persons. | 0.3 | 0.1 |
| Revenue Job Assist allowance | 0.5 | 0.0 |
| Allowance for seafarers | 0.3 | 0.1 |
| Investment in Corporate Trades (BES) | 24.0 | 12.3 |
| Investment in Seed Capital | 1.8 | 0.8 |
| Stock Relief | 2.0 | 0.6 |
| Relief for expenditure on significant buildings and gardens | 3.9 | 1.9 |
| Donation of Heritage items | 0.2 | 0.2 |
| Donation of Heritage property to the Irish Heritage Trust | 0.0 | 0.0 |
| Donations to Approved Bodies (Income Tax only) | 50.0 | 20.0 |
| Donations to Sports Bodies (Income Tax only) | 0.4 | 0.2 |
| Capital Allowances (Income Tax only) | 704.2 | 277.4 |
| Rented Residential Relief- Section 23 | 22.9 | 11.7 |
| Investment in Films | 65.4 | 33.6 |
| Total | 1,843.1 | 787.6 |
Revenue Job Assist allowance is no longer available from 1 July 2013.
No comments