Michael McGrath (Cork South Central, Fianna Fail)
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165. To ask the Minister for Finance the position regarding the review of betting duty; when he expects it to be completed; and if he will make a statement on the matter. [5345/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The increase in the betting duty rate from 1% to 2%, and the betting intermediary duty rate from 15% to 25%, came into effect on 1 January 2019. It is too early to draw any conclusions on the impact of these increases.

Receipts from betting duty represented less than 1% of all excise receipts in 2017 and this is also likely to be the case in for 2018. In addition, unlike other excisable commodities, there is no VAT applied on betting transactions. I have outlined why I consider the betting sector needs to make a fair contribution to the Exchequer.

In any discussion on betting duty, we must acknowledge the raised public consciousness of the problem of gambling in society. While problem gambling can result in the problem gambler, and their family, bearing the severest of economic and of course personal costs, the social costs of problem gambling can extend to their employers and to public institutions in the health, welfare and justice systems, such costs ultimately borne by taxpayers. I have outlined my view that this needs to be better reflected within the betting duty regime.

During the course of the Finance Bill process I agreed to review an alternative proposal put forward by the betting sector following the announcement of increases in betting duty in Budget 2019, and I acknowledge that small independent bookmakers may have difficulty competing with larger bookmakers with retail and/or online operations. My officials are currently considering this proposal, including the compatibility of a core element with EU rules, and will set out analysis and options in relation to betting duty at the Tax Strategy Group (TSG) meeting in July. The TSG Papers will be published on the Department's website shortly afterwards.

Pearse Doherty (Donegal, Sinn Fein)
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166. To ask the Minister for Finance the scope that exists to allow foster children who have been fostered for a long term by foster parents to avail of group A status under capital acquisitions tax, CAT, rules; and if he will make a statement on the matter. [5364/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by Revenue that, for capital acquisitions tax purposes, the relationship between the deceased person (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which capital acquisitions tax does not arise. The Group A threshold (currently €320,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer.

A foster child is treated as a child of the disponer and can avail of the Group A threshold in the following circumstances:

- in respect of a gift or an inheritance from a foster parent with whom he or she has lived, and who has cared for and maintained the child at his or her own expense, for a cumulative period of at least 5 years before the child’s 18th birthday,or

- in respect of an inheritance from a foster parent where, prior to the inheritance, the child had been placed in the care of the foster parent under the Child Care (Placement of Children in Foster Care) Regulations 1995, or the Child Care (Placement of Children with Relatives) Regulations 1995.

Therefore, the current position is that certain children in informal long-term foster care arrangements can avail of the Group A tax-free threshold as can children who are the subject of short-term formal fostering arrangements.