Some €1bn in lost tax due to reliefs, Noonan reports

Just more than €1 billion of taxable income was sheltered from tax through the use of various property reliefs, Minister for Finance Michael Noonan has confirmed.

In a written reply to Fianna Fáil’s finance spokesman, Michael McGrath, Mr Noonan said the figure totalled €574 million in 2012 and €450 million provisionally in 2013. Figures for last year are not yet available.

“The deputy should note that these are the claims for the year, rather than the actual tax cost, and that the claims may not be fully used in the year due to insufficient income being available to absorb the claim, or due to the impact of the high income earner’s restriction,” the minister added in his reply.

In addition, Mr Noonan said the Revenue Commissioners collected €22.1 million over the same two years from the 5 per cent property relief surcharge introduce on January 1st, 2012.

This comprised €10.7 million in 2012 and €11.4 million in 2013.

Mr McGrath also questioned the Minister about staff shortages within the unit of the Central Bank of Ireland that supervises the insurance sector.

Insurance regulation

Earlier this month,

The Irish Times

revealed that the Central Bank’s deputy governor,

Cyril Roux

, told the

Department of Finance

in March that it did not have enough powers or staff to effectively regulate the sector.

Mr Noonan said extensive work had been undertaken over a number of years as part of the Central Bank (Supervision and Enforcement) Act 2013 to provide the Central Bank with a generic consolidated power of direction, subject to the necessary constitutional safeguards regarding its grounds, scope and extent.

Mr Noonan said the issue of staffing was an "internal matter" for the Central Bank Commission.