Martin Ferris (Kerry, Sinn Fein)
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59. To ask the Minister for Finance the tax policy logic in forfeiting CGT at 33% in view of the fact that the effective income tax rate is 27%; and his views on whether it is appropriate that the Revenue Commissioners' resources should be deployed in circumstances which will result in a cost to the Exchequer if they are successful in sustaining their position. [1614/17]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy's question would appear to suggest that Revenue should, or indeed could, analyse a transaction and select a tax treatment based on the maximum potential yield for the Exchequer.  This is most certainly not the case. It would also be unfair to taxpayers in the event that they ended up paying more to the Exchequer than actually required by the law.

The Revenue Commissioners, as I have said already, are a statutorily independent body, charged with collecting the taxes lawfully owing to the Exchequer, and they do so in accordance with the legislation enacted by these Houses of the Oireachtas. 

The deployment of Revenue resources is a matter entirely for Revenue.  I would again reiterate that I have been advised by Revenue that the position being adopted by Revenue is in accordance with long established taxation principles that consideration received which is directly related to produce sold, whether in the form of cash or shares, is subject to taxation as income.  In this case, the Revenue Commissioners are interpreting and implementing tax law as it stands and they have assured me that there has been no departure from existing policy and interpretation.

Where there are different views as to the correct tax treatment of any particular item or transaction an appeal may be made to the Tax Appeal Commission where the matter will be adjudicated on, in the first instance, by a Tax Appeal Commissioner. Where the issue relates to a point of law the matter can be further appealed, by either party, to the superior courts.

Deputies will be aware that officials of the Revenue Commissioners appeared before the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on 7 December last, and engaged fully with the questions of members of both this house and the Seanad on this issue.  I understand that, during that appearance, Revenue committed to facilitate the appeals process should a taxpayer raise an appeal to the independent Tax Appeal Commission.  Furthermore, Revenue also confirmed that there would be no action by Revenue in the interim period to seek to collect the tax liability in the assessment raised by Revenue while appeal processes are underway.

I believe that it is incumbent on this House to allow these legal due processes to take place in accordance with the law.