Report Examines Tax Breaks For Irish Bloodstock Industry

by Jason Gorringe, Tax-News.com, London

27 July 2004

A report compiled by Indecon Economic Consultants on behalf of the Irish horse racing industry has suggested that the amount of money generated by the breeding of racehorses in the Republic far outweighs the tax breaks afforded to the sector.

The exemption of stallion fees from tax amounts to a tax break of around EUR3 million for the Irish bloodstock industry. However, the tax exemption has come under increasing scrutiny of recent years, with some politicians and observers keen to see it abolished altogether.

In its report, Indecon suggested that the bloodstock industry makes a gross contribution to the Irish economy in the region of EUR330 million, and pays around EUR37.5 million in tax. It went on to add that the 300 racing meetings held in Ireland each year generate some EUR110 million in consumer expenditure, and that in 2003, betting turnover on-course topped EUR227 million.

Representatives of the racing industry have warned that the loss of the tax breaks on breeding stallions could cause the loss of a significant amount of this revenue, as owners move their horses to countries with more sympathetic tax regimes.

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