Government’s tax take from stud farms trebles

The Government’s annual corporate tax take from the operators of stallion stud services increased almost three fold from a low base to €6.4m in the latest figures available.

According to figures provided by the Finance Minister Michael Noonan, the corporate tax take of €6.4m in 2012 from the provision of stallion stud services wasalmost three times the figure of €2.2m in in 2011.

The late Charlie Haughy introduced the exemption of profits from stallion stud services in 1969 and it remained in place until its abolition in 2008. Mr Noonan has now confirmed that since the exemption was abolished the exchequer has received €15.5m in corporate tax from stallion operators over five years between 2008 and 2012.

During the same five-yearperiod, the stallion owners have paid out an additional €3.7m in income tax.

Mr Noonan provided the figures in response to a written Dáil question from Deputy Pat Rabbitte who asked the taxation contribution from stallion income “from the highly successful thoroughbred stud operations here which have generated hundred of millions of euros in income for many leading owners over the past five years”.

In his response, Mr Noonan said: “In interpreting these figures it is important to bear in mind that they are profits as opposed to the total fees earned by an owner. Income tax and corporation tax are charged on profits.”