Cowen set to review reliefs

By Fionnán Sheahan and Conor Keane

In recent weeks, it emerged that a group of millionaires, including artists such as U2, were paying no tax by availing of loopholes and investment schemes.

Mr Cowen said the bulk of the €8 billion cost of the major tax reliefs referred to recently were categories used by ordinary taxpayers and businesses.

Yet he acknowledged yesterday that the time was right to take a look at incentive relief. “Those using this particular group of reliefs, therefore, should realise that the concept of unlimited or unrestricted reliefs is no longer viable. I want to make sure that everyone makes an appropriate contribution to the State.

“I have directed my department, together with the Revenue Commissioners, to undertake a thorough evaluation of the effect of all relevant incentive reliefs and exemptions and to bring forward proposals which would achieve the balance I have referred to.” However, he added: “I am now making it clear that I intend to include appropriate follow-up measures in next year’s budget.”

Mr Cowen is also targeting in particular an estimated €200 million in tax avoidance measures for certain building and development projects.

His review will involve external consultancy work on the evaluation of a range of incentive schemes:

Urban renewal.

Rural renewal.

Town renewal

Living-over-the-shop.

Multi-storey car parks.

Park and ride.

Student accommodation.

Third-level buildings.

Hotels and holiday cottages.

Nursing homes.

Private hospitals.

Sports clinics.

Childcare facilities.

The review will also examine data due in relation to certain income exemptions:

Woodlands.

Stallions.

Greyhounds.

Artists.

The review of the tax incentive schemes and exemptions will be done by the Department of Finance and Revenue Commissioners.

“This review will evaluate their impact and operation including their economic and social benefits for the different locations and sectors involved and to the wider community,” the budget document says.

The opposition reacted angrily to the measures last night. “The stallions will be resting easy tonight, as will the millionaires who pay no tax,” said Labour finance spokesperson Joan Burton.