I am informed by the Revenue Commissioners that the case relates to the availability of capital allowances for taxi licences. Provision was made for such allowances recently in section 51 of the Finance Act, 2001. Section 51 provides for a five year write-off of expenditure incurred on a taxi licence on or before 21 November 2000 at 20% per annum. Where the expenditure was incurred on or before 21 November 2000 it is deemed to have been incurred on 21 November 1997 or, if later, on the date the trade commenced.
The focus of the measure is to provide relief in respect of the cost of acquiring a licence to be used by the owner-operator of a taxi. Relief is not denied where the taxi owner-operator rents the vehicle to others on a part time basis. The measure does not give relief in respect of licences used by the owner for full-time rental.