Mairéad Farrell (Galway West, Sinn Fein)
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342. To ask the Minister for Finance the manner by which the Revenue Commissioners calculate tax forgone for those tax expenditures identified (details supplied); and if he will make a statement on the matter. [25817/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy may be aware that my Department publishes a report on Tax Expenditure Evaluation each year. The latest report was published on Budget Day 2024, and is available at: assets.gov.ie/static/documents/tax-expenditures-in-ireland-2024-report.pdf

In addition, my Department also published Tax Expenditures Evaluation – Updated Guidelines (available at: assets.gov.ie/static/documents/tax-expenditure-evaluation-updated-guidelines.pdf).

I am advised by Revenue that the Cost of Tax Expenditures publication, available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx. sets out the estimated cost to the exchequer of an extensive range of various tax credits, reliefs and deductions. I am advised by Revenue that a method statement for this publication has been published and can be accessed on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/methods/method-statement-costs-of-tax-expenditures-credits-allowances-and-reliefs.pdf. I am further advised by Revenue that there is not a single method by which an estimated tax cost is established for each item, but rather the methodology employed varies depending on the tax head and/or the type of the item in question, be it a tax credit, tax relief or deduction.

Mairéad Farrell (Galway West, Sinn Fein)
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343. To ask the Minister for Finance the different tax regimes notified to the EU Code of Conduct Group between 1998 and 2023, by year of notification and whether the tax regime was deemed to be harmful, in tabular form; and if he will make a statement on the matter. [25818/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The EU Code of Conduct (Business Taxation) was agreed by EU Member States in 1997. It is a non-binding, intergovernmental agreement which promotes fair tax competition both within the EU and beyond.

The Code covers measures which affect, or may affect, in a significant way the location of business activity in the European Union. This is known as the ‘gateway criterion’. Within the scope of the gateway criterion, the Code originally covered preferential measures. Preferential measures are those which provide for a significantly lower effective level of taxation than the level which is generally applicable in the Member State concerned.

In 2022, EU Member States agreed to expand the scope of the Code to include tax features of general application which create opportunities for double non-taxation or that can lead to the multiple use of tax benefits, in connection with the same expenses, amount of income, or chain of transactions. Tax features of general application must also meet the gateway criterion to be in scope of the Code.

Under the Code, EU Member States commit to not introducing new preferential tax measures and tax features of general application (jointly referred to as “tax measures”) and to roll back existing tax measures which are considered harmful.

In 1998, following the establishment of the Code of Conduct Group, the Group undertook an initial assessment of measures in existence in Member States. Five Irish tax measures were assessed as harmful at this time. Each of these measures pre-dated the establishment of the Code of Conduct Group and were subsequently abolished. Ireland has not introduced a new measure which has been assessed as harmful since the establishment of the Code of Conduct Group in 1998.

Set out below is a table of Irish measures assessed by the Code of Conduct Group from 1998 – 2023.