Written Answers. - Commission on Taxation Recommendations.

Tuesday, 16 February 1988

Dáil Eireann Debate
Vol. 377 No. 9

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70.

Mr. J. Bruton: Information on John Bruton  Zoom on John Bruton  asked the Minister for Finance the present position in regard to the establishment of a central inquiry office in Dublin for tax matters as recommended by the Commission on Taxation and announced by his predecessor.

Minister for Finance (Mr. MacSharry): Information on Raymond MacSharry  Zoom on Raymond MacSharry  In the current difficult economic circumstances it is not feasible to implement this recommendation at the present time.

71.

Mr. J. Bruton: Information on John Bruton  Zoom on John Bruton  asked the Minister for Finance the present position in regard to a freephone system to enable tax-payers to contact the Revenue Commissioners from anywhere in the country for the price of a local phone call, as recommended by the Commission on Taxation.

Minister for Finance (Mr. MacSharry): Information on Raymond MacSharry  Zoom on Raymond MacSharry  In the current difficult economic circumstances it is not feasible to implement this recommendation at the present time.

72.

Mr. J. Bruton: Information on John Bruton  Zoom on John Bruton  asked the Minister for Finance the cost to the Exchequer of implementing the following concessions contained in the Report of the Commission on Taxation: (a) taxing interest only on the basis of the extent to which the interest exceeds the rate of inflation; and (b) the introduction of a head of household credit in cases in which a [2177] dependent adult relative is resident with the claimant, the credit to be equal to the difference between credit-allowance for single and married persons.

Minister for Finance (Mr. MacSharry): Information on Raymond MacSharry  Zoom on Raymond MacSharry  If interest income were taxable only to the extent that nominal interest rates exceeded the rate of inflation, the loss from taxation of deposit interest is estimated to be of the order of £85 million in a full year at current inflation and interest rates. There would be some other losses of revenue the extent of which cannot be quantified in the time available for answering this question.

If an allowance equal to the difference between the married and single allowances were introduced for taxpayers with dependent adult relatives, the net cost is estimated at £27 million in a full year for the tax year in 1988-89.

It is assumed that the existing dependent relative allowance of £110 would be abolished as part of this measure.


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