Michael Healy-Rae (Kerry South, Independent)
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56. To ask the Minister for Finance if there are tax breaks, or development relief, available for council contributions; and if he will make a statement on the matter. [8480/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the Planning and Development Act, 2000 enables a planning authority, when granting a planning permission, to include conditions requiring the payment of a contribution in respect of

- public infrastructure, and

- facilities benefiting development in the area of the planning authority.

There is no specific tax relief provided in respect of contributions paid to a local authority as part of the process of obtaining planning permission.  However, where a person is carrying on a trade of dealing in and/or developing land, contributions made to a local authority will be deductible in calculating the taxable profits of the trade where those contributions relate wholly and exclusively to the activities of that trade.

Where a person constructs a building which qualifies for capital allowances as an industrial building under section 268, Taxes Consolidation Act (TCA) 1997, for example, a mill or a factory, any fees paid to a local authority for the provision of certain infrastructure and services that are directly related to that particular property can be included in the qualifying expenditure for capital allowances purposes.

Section 310, TCA 1997, provides that a person carrying on a trade is entitled to capital allowances in respect of contributions made by the trader, to a local authority, towards

- expenditure incurred by the authority on the provision of an asset for an approved scheme of effluent control, or

- the supply of water under a written agreement between the authority and the trader.

The scheme may be provided to service a particular premises or may service a number of premises, for example, an industrial estate.