McCreevy Tax Changes Revealed In Ireland

by Jason Gorringe, Tax-News.com, London

10 February 2003

Outlining the content of the 2003 Finance Bill, which will give effect to many of the tax changes announced in the Budget last December, Irish Finance Minister, Charlie McCreevy observed that the ingenuity of tax advisors 'knows no bounds'.

According to a report from the Business World national news service, Mr McCreevy on Thursday announced his intention to close several tax loopholes in addition to those mentioned in the budget. Under the new rules, horse and greyhound breeders will be obliged to submit tax returns to the Revenue Commissioners in order to allow the government to calculate how much revenue is lost per year in tax relief to this sector.

Wealthy investors will reportedly no longer be permitted to offset their tax liability against investment in a commercial building following the closure of the 'sale of rental income from buildings' loophole, and investors in film projects and oil exploration also stand to lose certain tax perks.

However, measures designed to compensate taxpayers who have overpaid their taxes were also introduced on Thursday, following scathing criticism from Ombudsman Kevin Murphy last year. According to the Irish Examiner: 'Mr Murphy said the Revenue Commissioners had failed to compensate people for the loss of value in money wrongly held by them for several years'.

In last week's Finance Bill, Mr McCreevy announced that taxpayers who are overcharged by the Revenue will henceforth be paid interest on the amount.

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