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26.
Irish Breeders Defend Tax Exemptions
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07/08/2002 |
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The “sweetheart”: tax arrangements Irish breeders have enjoyed for more than 30 years is under threat from calls for the Irish Government to end the tax exemption for income earned by stallions at stud.
Leading breeders have reacted predictably to the call from the opposition Labour Party to end their special tax status by stressing the importance of the exemption to the Irish economy.
There is no question the special tax status has enabled Ireland ‘s studs, led by Coolmore, to stand the best stallions in the world and build the breeding industry in that country into the equal of kentucky.
The exemptions were introduced by Ireland’s former Taioseach Charles Haughey in 1969 when he abolished tax on stallion fees, the catalyst for the growth of Coolmore into the biggest breeding organisation in the world.
However the current economic situatioin in Ireland, which has seen big cuts in public expenditure as tax revenue has fallen below budget, has led to the Labour Party call for an overhaul of the tax benefits enjoyed by the thoroughbred industry.
The Labour Party's finance spokesman Pat Rabbitte said: “A tax system ought to be a just one. However, under this exemption enormous benefits have been conferred on a few people in the industry, and that’s not right.
“At a time when tax receipts are down, we need to review the entire area.”
However Ireland’s Finance Minister Charlie McCreevy dismissed Rabbitte’s proposal.
Jock O'Connor, chairman of the Irish Thoroughbred Breeders' Association, has defended the tax exemptions.
"The tax exemption has served Ireland very well and it has meant that a small country like ours enjoys the pre-eminent position in Europe.
"It has also meant that the best stallions are available to all breeders in the country and so everybody gains from it.
"It has helped to strengthen the whole bloodstock industry which people should not forget is a taxable industry."
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