Burton jumps on the taxing issue on non-resident stallions

Dáil Sketch/Michael O'Regan: The non-resident stallion has joined the non-resident account as an item of political controversy…

Dáil Sketch/Michael O'Regan: The non-resident stallion has joined the non-resident account as an item of political controversy.

This was revealed when the Labour spokeswoman on finance, Ms Joan Burton, claimed that stallions could be non-resident for six-months a year, with their owners still benefiting from a tax break.

Addressing the Minister for Finance, Mr Brian Cowen, she added: "This tax break is in place at a time when pensioners pay tax on modest incomes. Are there tests of what constitutes six months non-residence for stallions? In particular, does the Cinderella rule apply?

"For example, if a stallion is out of the country before midnight, does that count as a full day?"

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Mr Cowen, looking up from his files with a half-smile, remarked: "I am taken by the obsession of the Labour Party with the stallion." The Independent TD for Dublin North Central, Finian McGrath, had more practical matters on his mind.

"Has the Minister tips for tomorrow's races?" he asked.

But Mr Cowen had none, or did not care to reply, perhaps overwhelmed by the complexities of the non-resident stallions.

He said that Indecon, regarded as a reputable team of consultants, had independently compiled a report on behalf of the Irish Thoroughbred Breeders' Association and Horse Racing Ireland."Indecon estimates the gross figure forgone is €3 million, although I do not say I agree," he added. "I will find out about the Cinderella clause, about which the deputy is worried, and whether a stallion must be out of the country before or after midnight.

"That does not make much sense, but I will inquire into it."

Ms Burton remarked: "It is important for non-resident taxpayers." The Minister replied dryly: "I did not know they had to be accompanied by a stallion." With the Taoiseach in London for talks with Tony Blair, it was left to the Tánaiste, Ms Harney, to take leaders' questions. The equine industry surfaced again in exchanges between her and the Labour leader, Mr Pat Rabbitte.

These centred on the ending of investigative work into certain Ansbacher-related companies under the Companies Act when Ms Harney was in the Department of Enterprise, Trade and Employment.

There was a belief, said Mr Rabbitte, that the investigation was not terminated because it had come to fruition, but rather because it might do so. An angry Ms Harney said that Mr Rabbitte was making serious allegations about her integrity, and warned that he had better have his facts right.

The Labour leader advised the Tánaiste "not to get up on her high horse", although he did not specify if it was a non-resident stallion. "Just because she is surrounded by sainthood?" pondered Mr Rabbitte.

"I am no more a saint than Mr Rabbitte," snapped Ms Harney.

It will be Mr Ahern's lot to take leaders' questions today, when he might well be reminded by the Opposition of the troubles of a former and serving minister.