Lucinda Creighton (Dublin South East, Independent)
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16. To ask the Minister for Finance in view of the increase in property prices in many parts of the country, his views that capital acquisitions tax thresholds should be reviewed; and if he will make a statement on the matter. [41747/14]

Michael Noonan (Limerick City, Fine Gael)
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Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance. I assume the Deputy is referring to the "Group thresholds" for CAT.

For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free thresholdknown as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

The Group A tax free threshold of €225,000, applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

The Group B tax free threshold of €30,150, applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer, other than one covered by Group A.

The Group C tax free threshold €15,075, applies in all other cases.

Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold. These thresholds have been reduced in recent years as part of the effort to restore the public finances as taxes on capital are less harmful from an economic perspective than taxes on employment.

The property market continues to improve with positive developments which had been restricted to the Dublin area now manifesting in other areas of the country though not to the same extent in terms of price rises. I recognize, of course, that there are supply issues in certain areas of the Dublin property market.

The Group tax-free thresholds are kept under review, in the same way as other relevant tax provisions, and in this regard I will bear the Deputy's comments in mind for the future.

Joan Collins (Dublin South Central, United Left)
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17. To ask the Minister for Finance his plans to abolish relevant contract tax in relation to private building contracts, particularly on Government funded projects. [39262/14]

Michael Noonan (Limerick City, Fine Gael)
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It is not the function of the Tax Code or the Oireachtas to determine the employment relationship between parties. If the true relationship between parties is that of an employer/employee then the employer is required, under the Tax Code, to operate PAYE on payments made to the employee. If, however, the true relationship is not that of an employer/employee then, where the relationship relates to construction operations, as defined within the Tax Code, there is a requirement to operate the relevant RCT provisions. These provisions were placed on an electronic platform with effect from 1 January 2012.  I am informed by the Revenue Commissioners that the eRCT system is working efficiently and that it has removed substantially the vulnerabilities for fraud, mainly from bogus documentation, that attached to the previous paper based relevant contracts tax system. It is not proposed to abolish Relevant Contracts Tax.

I wish to advise the Deputy that the 'Code of Practice for Determining Employment or Self-Employment Status of Individuals', which is available of my Department's website, was created to assist both parties to an engagement including an engagement in the construction sector - in determining if a contract of engagement is, by its nature, either a 'contract of service' (that is, an employer and employee arrangement) or a 'contract for service' (that is, not an employer and employee arrangement). The Code of Practice for Determining Employment or Self-Employment Status of Individuals' is not a Revenue Code but rather was compiled with the assistance of the Irish Congress of Trade Unions / Department of Jobs, Enterprise and Innovation / National Employment Rights Authority / Department of Social Protection / Department of Finance / Small Firms Association / Irish Business and Employers Confederation / Construction Industry Federation / Revenue Commissioners.

I am further informed by the Revenue Commissioners that they are committed to tackling all forms of shadow economy activity including that which is described as 'bogus self-employment status'.  Their staff carry-out visits to a wide range of businesses, including temporary places of business such as building sites, as part of their on-going compliance operations. In some instances, such visits are undertaken jointly with other State agencies such as the Department of Social Protection and the National Employment Rights Authority.