Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

207. To ask the Minister for Finance the amount of revenue that has been collected each year in tabular form since the introduction of the 80% tax rate on zoned land; and if he will make a statement on the matter. [40995/13]

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

209. To ask the Minister for Finance the amount of money that has been generated in windfall tax in the past three years. [41018/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 207 and 209 together.

I assume the Deputies are referring to the windfall gains provisions in sections 644AB and 649B Taxes Consolidation Act 1997, introduced by section 240 National Asset Management Agency Act 2009 and amended by section 25 Finance Act 2010, which apply an 80% rate of tax to the profits or gains from land disposals where those profits or gains are attributable to a relevant planning decision by a planning authority rather than to any value attributable to the work of the landowner.

“Relevant planning decision” is defined in the provisions as meaning (i) a change in the zoning of land in a development plan or local area plan from non-development land-use, that is from agricultural, open space, recreational or amenity use or a mixture of such uses, to development land-use, that is to residential, commercial or industrial uses or a mixture of such uses, or from one development land-use to another, including a mixture of such uses, and (ii) a material contravention decision by a planning authority in relation to a development plan. In the case of rezonings, the 80% rate applies where there is a disposal of land following its rezoning where that rezoning takes place on or after 30 October 2009 and in the case of material contravention decisions, the 80% rate applies where there is a disposal of land following a material contravention decision where that decision is made on or after 4 February 2010.

The 80% tax rate applies in respect of disposals by individuals or companies as part of their land dealing/developing trade or as the disposal of a capital item. It only applies to the part of the profits or gains that is attributable to the relevant planning decision. Any part of the profits or gains that is attributable to other factors, such as construction operations on the land or the expectation that the land would be rezoned, or benefit from a material contravention decision in the future (‘hope value’), continues to be taxed at the normal income tax, corporation tax or capital gains tax rates, as appropriate.

I am informed by the Revenue Commissioners that on the basis of the available details from corporation tax and income tax returns for 2009, 2010 and 2011, the latest year for which the necessary details are available, there is no record of any such profits or gains having been returned. However, the Commissioners have indicated that the existing database does not include details of capital gains returned via the CG1 tax return because these are not captured in electronic format and, consequently, that if windfall profits have been returned using this medium, it is not possible to centrally identify the relevant details.