Dáil Éireann - Volume 603 - 31 May, 2005

Written Answers. - Tax Code.

  220. Mr. McGuinness asked the Minister for Finance if he will consider introducing refundable tax credits; the cost if adapting the tax credit system in such a manner; and if he will make a statement on the matter. [18161/05]

  Mr. Cowen: I have no plans to introduce such credits. If limited to those on Revenue’s records, they would cost approximately €1.7 billion in a full year and considerably more if extended to everyone of working age irrespective of income or tax status.

  221. Mr. McGuinness asked the Minister for Finance the impact on Exchequer revenues of increasing corporation tax to 17.5%. [18163/05]

  Mr. Cowen: The full year gain to the Exchequer from increasing the current standard rate of corporation tax from 12.5% to 17.5% is tentatively estimated by the Revenue Commissioners to be in the region of €730 million. This estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such an increase. However, it should also be noted that Ireland’s low corporation tax, CT, rate plays an important role in attracting foreign direct investment to Ireland, thereby increasing employment here. We also must consider Ireland’s place in the new enlarged EU where CT rates are low in some new member states. Ireland must continue to remain competitive in this environment. For these reasons, there are no plans to increase our present low CT rate.

  222. Mr. Bruton asked the Minister for Finance the circumstances whereby a person or persons [683] would be unable to obtain relief on stamp duty for first-time buyers purchasing a second hand home in a case in which a parent or parents have provided funds toward the purchasing of the property or acted as financial guarantors; if this situation has been brought to his attention since the changes announced in Budget 2005 on the issue of stamp duty in December 2004; and if he will make a statement on the matter. [18227/05]

  Mr. Cowen: To avail of first-time purchaser relief, the purchaser — or where there is more than one purchaser, each of the purchasers — must not have previously purchased a house. A person would not be precluded from obtaining first-time buyer relief where a parent or parents provided funds by means of an unconditional gift toward the purchase of a house or where a parent or parents has acted as financial guarantor in relation to purchase moneys that are borrowed by his or her son or daughter in connection with the purchase. Where funds are provided by a parent or parents or where a parent or parents are party to any borrowings relating to the purchase, as a result of which the parent or parents take a beneficial interest in the house being purchased, the first-time buyer relief would not be available as the parent or parents would be regarded as a purchaser of the house together with their son or daughter.

  223. Mr. Wall asked the Minister for Finance if a person (details supplied) in County Kildare is entitled to a tax rebate; and if he will make a statement on the matter. [18229/05]

  Mr. Cowen: I am advised by the Revenue Commissioners that a review of this taxpayer’s liability will be completed for the three years ended 31 December 2004 on receipt of completed return of income forms that have been issued to the person’s home address.