Written Answers. - Parliamentary Debates - Houses of the Oireachtas

Questions— 14 February 2012. Written Answers
Tax Yield
180. Deputy Ciarán Lynch asked the Minister for Finance the value of legitimate green diesel
fuel transactions recorded for the years 2010 and 2011; the current monitoring system for the
sale of green fuel; if there is any record or database of purchasers of green diesel and quantities
purchased per transaction; if he will provide an estimate of the loss in quantity and cost in
revenue due to fuel laundering for the years 2010 and 2011; and if he will make a statement
on the matter. [8401/12]
Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commissioners
that the quantities of marked diesel for which mineral oil tax was paid in 2010 and 2011
were 1.226 billion litres and 1.155 billion litres respectively, and the net mineral oil tax receipts
for those years in respect of that fuel were €51.04 million and €50.49 million. Premises or places
from which marked diesel is sold or delivered, other than tax warehouses or certain small-scale
operations, are required to be approved by the Revenue Commissioners in accordance with
the Mineral Oil Tax Regulations 2001 (S.I. No. 442 of 2001). Those Regulations also require
the keeping of specified records of stocks, sales and movements of fuels by mineral oil traders.
The Finance Bill 2012 proposes to enhance the supervision and control of the mineral oils
supply chain by requiring that, in future, any person dealing in marked mineral oils will have
to be licensed by the Revenue Commissioners to do so. It is envisaged that this important
change will be complemented by amendments to the Mineral Oil Tax Regulations that will lay
down new requirements for the recording and reporting of transactions by mineral oil traders.
The Deputy will appreciate that it is not possible to estimate accurately the loss to the
national Exchequer from particular activities in the shadow economy such as fuel laundering.
It is clear, however, that illegal activity in the fuel market is significant, and that it poses a
threat to the tax yield and to legitimate business. Combating it will, therefore, continue to be
a priority for the Revenue Commissioners, and the legislative action that is being taken will
provide additional support for them in this important work.
Tax Code
181. Deputy Seán Kyne asked the Minister for Finance in view of the financial difficulties
arising from the extraordinary economic and financial situation being experienced by persons
who purchased a second residential property as a means of securing funds for retirement and
so forth, if he will consider increasing the amount claimable of mortgage interest against tax
from 75% to 100%, particularly as the cost of running a non-residential property is a legitimate
business expense. [8411/12]
Minister for Finance (Deputy Michael Noonan): As the Deputy notes an individual who
rents out their residential property may be allowed a deduction (subject to certain conditions)
in computing the taxable rents from that letting of 75% of the interest accruing on money
borrowed to purchase, improve or repair that property. The level at which interest repayments
could be claimed against tax for residential rental properties was reduced from 100% to 75%
in April 2009 as part of an urgent revenue-raising package aimed at stabilising the public
finances. The restriction, which applies to interest accruing on or after 7 April 2009, significantly
reduced the cost of this relief to the Exchequer.
I am informed by the Revenue Commissioners that the amount of tax foregone in 2009 (the
most recent year available) by allowing a deduction for interest on borrowings to be offset
against all rental income assessable under Case V, Schedule D for both residential and commercial
property was estimated at €745 million. Increasing the relief for residential properties to
100% could result in an additional annual cost to the Exchequer of the order of €100 million.
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