Written answers
Thursday, 14 April 2016
Department of Finance
Tax Relief Data
Pearse Doherty (Donegal, Sinn Fein)
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89. To ask the Minister for Finance further to his reply to Parliamentary Question No. 308 of 26 May 2015 to provide the composition of the €480 million of discretionary non-pension deductions and reliefs in tabular form; and if he will make a statement on the matter. [6399/16]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the table below presents the tax cost (€770m) of the deductions and allowances in question, which are currently allowable for tax at an individual's marginal rate of income tax, the cost were these to be confined to the standard rate (€479m) and the resulting difference or saving to the Exchequer (€291m).
A breakdown of the deductions and allowances is provided in tabular form below for 2012.
| Tax Relief Provision | Current Tax Cost (Marginal Rate) 2012 €m | Estimated Tax Cost (Standard rate) 2012 €m | Estimated Saving 2012 €m |
|---|---|---|---|
| Income Tax Capital Allowances | 579.3 | 376.8 | 202.46 |
| Allowable Expenses | 70.9 | 42.7 | 28.23 |
| Investment in Films | 58.5 | 28.5 | 29.96 |
| Donations to Approved Bodies (Income Tax only) | 45.71 | 22.1 | 23.57 |
| Interest paid: Other | 15.18 | 8.3 | 6.93 |
| Total (rounded) | 770 | 479 | 291 |
These figures were based on data from 2012 returns, the Deputy may be interested in more up-to-date figures based on data from 2013 returns which are outlined in the table below.
| Tax Relief Provision | Current Tax Cost (Marginal Rate) 2013 €m | Estimated Tax Cost (Standard Rate) 2013 €m | Estimated Saving 2013 €m |
|---|---|---|---|
| Income Tax Capital Allowances | 546.5 | 376.8 | 169.7 |
| Allowable Expenses | 70.9 | 43.6 | 27.3 |
| Donations to Approved Bodies (Income Tax only) | 44.1 | 26.2 | 17.9 |
| Interest paid: Other | 15.2 | 5.0 | 10.1 |
| Total | 677 | 452 | 225 |
In relation to film relief, the Deputy will be aware that the Income Tax scheme for investment in film was replaced in January 2015 by a new scheme of Corporation Tax relief to Film Producer Companies. This means that savings in relation to standard rating would not materialise in the context of the new scheme. While this was included in the initial calculation for 2012 in response to the earlier Parliamentary Question (and left in the above figures 2012 for consistency), this is not included in the 2013 figures.
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