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46.
Irish Government Acts
On Tax Exemptions
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09/02/2003 |
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The
Irish Government has compromised on the issue of ending the tax exemptions
enjoyed by studs and stallion owners, but perhaps only temporarily.
The Irish Government, under increasing pressure to end the tax free status
stallions owners have enjoyed in Ireland since 1969, has decreed that breeders
and studs will have to return details of their income from stud fees to the tax
authorities.
However such income will remain exempt from tax for at least another two years.
Ireland’s 2003 Finance Bill, handed down by the Minister for Finance
Charlie McCreevy on February 7, contains provisions not previously mentioned in
last December’s budget and included a covering statement suggesting that the
stallion tax exemption is likely to be reviewed.
The statement said: “The Minister noted that in his Budget speech he said he
would keep all tax incentives and expenditures under review.
“There are many provisions in the tax code which allow different types of
income to be exempt from tax.
“Only some of these require the recipients to make a return of the exempt
income to the Revenue Commissioners.
“The relevant legislation is now being changed to provide for the return of
such information in the case of stallion fees, forestry and greyhound stud
fees.”
McCreevy has been criticised for not ending the stallion tax exemption which
many believe has outlived its original purpose of stimulating the Irish breeding
industry and should be replaced by a tax on profits from stud fees.
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