Opposition parties are set to call for much tighter examination and control of tax reliefs and exemptions, in a range of amendments to the Finance Bill when the committee stage begins today.
Fine Gael will call for a formal system for monitoring of tax reliefs, while Labour will concentrate on seeking information from the horse-breeding industry, as well as calling for a new commission on taxation to examine the entire system, focusing particularly on reliefs and exemptions.
Mr Richard Bruton, the Fine Gael spokesman on finance, said more scrutiny of tax relief schemes was essential. Of 91 allowances given in the tax code, the Government only has firm estimates for the cost of 48, he pointed out in a statement.
Fine Gael will propose a requirement for an annual statement of the cost, impact and beneficiaries of tax reliefs, the introduction of a sunset clause - requiring a cost-benefit analysis to justify continuing any relief after a certain period - and a cap on the extent to which any taxpayer could benefit from the aggregate of tax reliefs.
Fine Gael will also call for a tightening up of the residency rules under which individuals avoid Irish tax by living overseas. The party's amendments would also provide automatic indexation within the income tax and capital gains tax codes, which would "remove the capacity of the Minister for Finance to raise taxation by stealth from these sources".
The Labour Party spokesperson on finance, Ms Joan Burton, is to table an amendment that would require persons claiming tax exemption on income from stallion fees to declare their earnings to the Revenue Commissioners for the past five years.
In last year's bill, Mr McCreevy introduced a provision requiring those claiming this exemption to declare their income from this year.
He has not yet given any indication that he would tax this income.
According to Ms Burton: "We believe that the beneficiaries of this exceptional generosity from the Fianna Fáil/PD government should also be required to declare their income over the past five years."
This would show the longer-term picture, she said, and "would also mean that any attempt to artificially 'deflate' income from stallion breeding for this year would become obvious."
