End of 36 year stud tax break
His warning came after Finance Minister Brian Cowen announced the 36-year-old tax-free status of income from stallions (and greyhounds) is to end on July 31, 2008.
The minister said his officials will enter discussions with the European Commission, with a view to introducing a new taxation regime appropriate to the equine industry.
One of the factors likely to be examined is the possibility of a net revenue loss for the Government if profits become liable to tax - because stallion owners would for the first time be able to claim write-offs for stud expenses such as capital costs, running costs, insurance and advertising.
There could be a big tax write-off for the estimated nine out of 10 new stallions which fail to pay their way.
One way of getting around this would be that generous tax allowances for horse breeders should replace the tax break.
The Government had been informed by the European Commission that the stallion tax regime is an illegal, anti-competitive state aid.
Ireland is the only European country to have such a tax concession.
GREYHOUND breeders fear that taxing of stud dog fees will depress the market for the top track and coursing performers which are purchased for future stud dog value.
As in the horse industry, Ireland is an exporter of greyhounds, mostly to Britain but also to the US, Australia and many European countries, and a slump in greyhound breeding could hit earnings in the industry, which employs about 8,500 people, mostly working at the greyhound tracks.
Already, Irish greyhound breeders are facing a more competitive market due to the growth in breeding by artificial insemination.
New artificial insemination regulations took effect in Ireland on December 1.
