Pearse Doherty (Donegal, Sinn Fein)
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296. To ask the Minister for Finance the estimated revenue raised, in first and full-year terms, by introducing the rate of commercial stamp duty from 7.5 to 12.5 percent, excluding agricultural land. [35238/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Department of Finance has opened its pre-budget costings service, which is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.

Pearse Doherty (Donegal, Sinn Fein)
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297. To ask the Minister for Finance the revenue raised by increasing the rate of commercial stamp duty from 7.5 to 10 and 12.5 percent, respectively, while increasing the farm consolidation relief accordingly, in first and full-year terms. [35239/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Department of Finance has opened its pre-budget costings service, which is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.

Pearse Doherty (Donegal, Sinn Fein)
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298. To ask the Minister for Finance the estimated revenue generated in first and full-year terms of reducing the Standard Fund Threshold to €1.5 million; and if he will make a statement on the matter. [35241/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Department of Finance has opened its pre-budget costings service, this is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.

Pearse Doherty (Donegal, Sinn Fein)
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300. To ask the Minister for Finance the estimated revenue raised by introducing a 25% and 50% cap, respectively, on corporation tax loss relief utilised in a single year by NAMA participating banks, and separately, by all banks, in first and full-year terms. [35250/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware, loss relief for corporation tax is a longstanding feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years, and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.

With respect to the banks in which the State has, or previously had, a shareholding, the value of these tax losses to the State is realised through share sales. The banks’ share prices recognise a certain value for the tax losses and, as such, the State receives value for the balance of tax losses as sell-downs complete.

I am advised by Revenue that the estimated revenue which could be raised by introducing a 25 percent and 50 percent cap, respectively, on corporation tax loss relief utilised in a single year by NAMA-participating banks and by all banks would be dependent on future profitability, and therefore cannot be estimated. Information can be provided in respect of the years 2019 to 2021 (the most recent year for which data are available), and is set out below. However I would note that, having regard to its confidentiality obligations under s851A of the Taxes Consolidation Act, 1997 (as there are only two remaining NAMA-participating banks), Revenue is not able to provide a breakdown between NAMA-participating banks and all banks.

The estimated amount that could have been raised in the last three years through the imposition of loss restrictions covering all banks is presented in the table below:

I would note that State aid implications would need to be considered if a targeted restriction were proposed on the banking sector, or indeed any other specific sector.

The Deputy will be aware that, in 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach on the subject of both bank losses and corporation tax losses more generally (see www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). The technical note considered in some detail the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or “sunset clause” on loss relief, for Irish banks, for the wider banking sector, or for the corporate sector as a whole.