Written Answers Nos. 139-160
139. Deputy Kathleen Funchion asked the Minister for Finance if he will reconsider the proposed end to the motor fuel subsidy on 31 March 2024, as planned (details supplied); and if he will make a statement on the matter. [8675/24]
View answerAs the Deputy will be aware, in 2022 in light of the acute impact rising prices were having on households and business, Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but following review and monitoring of fuel prices were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, I provided for a further extension until 31 March 2024 with a phased restoration legislated to occur in two final stages on 1 April 2024 and 1 August 2024.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.
To note national average prices have eased considerably from highs of over €2.00 per litre which we saw in 2022. As per the Central Statistics Office Consumer Price Index, average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre in October 2023 to approximately €1.69 per litre for diesel and €1.68 for petrol in January 2024. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 19 February 2024 was approximately €1.70 for both fuels.
In conclusion, I have no plans to postpone the excise restorations of 8cpl for petrol and 6cpl for diesel, the first phase of half these amounts ( 4cpl and 3cpl respectively) which is due to commence on 1 April 2024.
140. Deputy Neasa Hourigan asked the Minister for Finance the engagement his Department has had with Government colleagues regarding the Climate Action and Biodiversity (Mandates of Certain Organisations) Bill 2023; and if he will make a statement on the matter. [8730/24]
View answerAs part of the whole-of-Government approach to climate action, the Department of Finance is working with other government Departments and agencies in a co-ordinated manner in order to support the delivery of targeted reductions in overall greenhouse gas emissions by 2030, and to reach net-zero emissions by no later than 2050.
In relation to the Climate Action and Biodiversity (Mandates of Certain Organisations) Bill 2023, the Government's response is being led by my colleague, the Minister for Agriculture, Food and the Marine. While officials in my Department have had some limited engagement on this legislation, questions regarding the Government's response to the Bill should be directed to that Minister.
141. Deputy Paul Kehoe asked the Minister for Finance if consideration will be given to reopening the SBCI loans (details supplied), as well as the current funding that can be applied for; and if he will make a statement on the matter. [8816/24]
View answerAs the Deputy is aware, the Strategic Banking Corporation of Ireland plays an important role in supporting Irish businesses to access long-term, lower cost finance. A number of successful schemes are now closed to new applications, but Government Departments continue to work closely with the SBCI to develop and implement new schemes.
I am pleased to advise the Deputy that the Growth and Sustainability Loan Scheme (GSLS) launched on 19 September 2023. The GSLS is the successor scheme to the Future Growth Loan Scheme. The GSLS uses a counter guarantee from the European Investment Fund to make €500 million in competitively priced loans available to SMEs, including primary producers. Like the FGLS, the scheme provides for long term lending terms of up to ten years.
Loans under the GSLS, ranging from €25,000 to €3 million, can enable SMEs to make essential investments in their growth and resilience, and, in particular, climate action and environmental sustainability. At least 30% of the scheme’s lending capacity is directed towards these areas, which are crucial to Ireland’s sustainable transition, and benefit from a further ‘green’ interest rate discount.
Applications can be made online via the SBCI hub.
142. Deputy John McGuinness asked the Minister for Finance if an application for a refund of VAT relative to the purchase of a milk tank under TAMS 2, which was rejected by the Revenue Commissioners, will be examined again and paid in full to a person (details supplied); and if he will make a statement on the matter. [8832/24]
View answerThe VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, farmers can elect whether or not to register for VAT in respect of their farming business, and this affects how VAT incurred on their inputs (such as the purchase of farm equipment) is treated. Eligibility for grant funding under the Targeted Agricultural Modernisation (TAMS) scheme has no bearing on, nor interaction with, the application of VAT law, including The Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012).
Farmers who elect to register for VAT are obliged to account for VAT on their supplies and are entitled to claim a deduction for VAT incurred on inputs used for the purposes of their taxable supplies. Therefore, VAT-registered farmers would be entitled to reclaim the VAT incurred on farm equipment, including milk bulk tanks, and this should be done through their normal VAT returns.
Alternatively, farmers can remain unregistered for VAT and opt for the Flat-Rate Farmer’s Scheme. This Scheme is a simplification arrangement permitted under the Directive. It is designed to reduce the administrative burden for farmers by allowing unregistered farmers to be compensated on an overall basis for VAT on inputs, while remaining outside the VAT system, thereby avoiding the burdens associated with registration and filing. It allows such farmers to add a percentage charge (known as the “flat-rate addition”) onto the amount they invoice VAT-registered businesses whom they supply with agricultural goods and services in the course of their farming business. Unlike VAT-registered businesses, unregistered farmers are not entitled to a deduction for VAT incurred on individual inputs used in their farming business; instead, the Flat-rate Scheme permits them to charge and retain the flat-rate addition in order to compensate them, on an overall basis, for the VAT across all their inputs.
There are certain limited situations in which flat-rate farmers are specifically permitted to claim a refund of the VAT incurred by them on particular inputs. The Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012) allows refunds to be claimed on outlay incurred on:
- the construction, extension, alteration or reconstruction of farm buildings or structures;
- the fencing, draining and reclamation of farmland; and
- the construction and/or installation of qualifying equipment for the purpose of micro-generation of electricity for use in a farm business.
Outlay incurred by flat-rate farmers on the acquisition of equipment does not come within the scope of the refund order. However, where the installation of the equipment requires the alteration or reconstruction of a farm building or structure, the corresponding expenditure on the alteration or reconstruction of the building or structure, including equipment or elements of equipment permanently installed in the farm building or structure, may be allowed in certain circumstances. The equipment must be permanently installed in the farm building or structure and, once installed, cannot be removed without causing significant damage or destruction to the farm building/structure or to the equipment itself.
The claim in question (details supplied) refers solely to outlay on the purchase of a milk tank, and no works to alter or reconstruct the building were evident in the claim. Consequently, the claim was refused on the basis that the outlay being claimed does not come within the scope of the Refund Order. Claims that do not comply with the order cannot qualify for a refund of the VAT.
Should the claimant remain aggrieved by this decision, he may appeal it to the Tax Appeals Commission, which is an independent statutory body that hears and determines appeals against assessments and decisions of the Revenue Commissioners, including decisions to refuse claims under this Refund Order.
143. Deputy Darren O'Rourke asked the Minister for Finance the backlog in the appeals process for the primary medical certificate (details supplied) in 2020, 2021, 2022, 2023 and to date in 2024, broken down by county, in tabular form; and if he will make a statement on the matter. [8836/24]
View answerI have now formally appointed all five members to the new Disabled Drivers Medical Board of Appeal (DDMBA) and appeal hearings recommenced in the first half of December 2023.
I appreciate that it has taken far longer than anticipated to get to this point. In this regard four Expression of Interest campaigns have had to be run over 18 months to source the legislatively required five members. Officials have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
It is not possible to break down the waiting list by county but the Secretary of the Board has informed me that, as of 21 February 2024, there are 834 appellants on the waiting list. 334 appellants have been assessed since the appeals process recommenced. The Board has prioritised the waiting list using clinically-based criteria. They are working to address the backlog as quickly as possible.
144. Deputy Mairéad Farrell asked the Minister for Finance the number of contracts for service workers in RTÉ that have had tax deduced at source through PAYE by the Revenue Commissioners since 1980; and if he will make a statement on the matter. [8837/24]
View answer145. Deputy Mairéad Farrell asked the Minister for Finance the validation process used by the Revenue Commissioners to validate written RTÉ contracts for employment; and if he will make a statement on the matter. [8838/24]
View answerI propose to take Questions Nos. 144 and 145 together.
I am advised by Revenue that it is precluded under Section 851A of the Taxes Consolidation Act 1997 from commenting on the tax affairs of an individual, business or entity. Revenue is, therefore, not in a position to provide comment on the specific case or details referred to in the Deputy's questions.
Under the self-assessment system, which forms the basis of Revenue’s administration of the various Irish tax codes, including PAYE, Revenue do not validate individual contracts of employment offered by employers to employees. It is the responsibility of the employer to ensure that the appropriate contract i.e. a contract of service (i.e. an employment contract) or a contract for service (i.e. a contract based on the service provider being self-employed) is offered to the individual concerned at the time the contract is negotiated. Where an employer engages an individual on the basis of an employment contract, it is the responsibility of the employer to ensure that all payments made to the individual are processed through the payroll system with PAYE, PRSI and USC deducted from the payments and remitted to Revenue. Where a contract for service is appropriate, it is the responsibility of the self-employed individual to file a tax return under the self-assessment system and pay all income tax, USC and PRSI due.
Where, as a result of its ongoing compliance activities, Revenue identifies an employer who may be treating individuals who are, in fact, employees as self-employed, then Revenue will initiate an appropriate compliance intervention as set out in Revenue’s Compliance Intervention Framework. If misclassification of workers as self-employed is established, Revenue will seek to collect from the employer all PAYE, USC and PRSI, due in respect of all such individuals, including interest and penalties, if appropriate. Further details on Revenue's Compliance Intervention Framework is available at the following link: www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf
146. Deputy Paul Donnelly asked the Minister for Finance the number of WTE vacancies, by job title, in the Financial Services and Pensions Ombudsman as of 20 February 2024; the estimated full-year cost of filling each of those vacancies; and when each vacancy will be filled, in tabular form. [8866/24]
View answerThe Financial Services and Pensions Ombudsman (FSPO) is an independent, impartial, fair and free service that helps resolve complaints against financial service and pension providers from consumers and small businesses.
Following approval of the FSPO’s Workforce Plan 2024-2026 in December 2023, the sanctioned staff complement in the FSPO was increased from 90.2 to 128.
I have been informed by the FSPO that as at 20 February 2024, the number of staff (Full Time Equivalent) is 92. Arising from the approval of the Workforce Plan, there are 36 further roles to be recruited. The recruitment plan, which includes anticipated on-boarding dates and the full year cost to the FSPO, based on the anticipated on-boarding dates, is set out below.
|
Role Title |
Vacancies |
Anticipated Onboarding Date |
Full year to FSPO (year 2024) based on anticipated start date (at mid-point of scale) |
|
Assessment Officer |
3 |
May-24 |
€114,941 |
|
Investigation Officer |
5 |
May-24 |
€191,569 |
|
Admin Support - Investigation Services |
1 |
May-24 |
€38,314 |
|
Legal Services Officer |
2 |
May-24 |
€76,628 |
|
HR Manager |
1 |
Jun-24 |
€43,585.67 |
|
Strategy Manager |
1 |
Jun-24 |
€43,585.67 |
|
Assistant to Deputy Ombudsman |
1 |
Jun-24 |
€43,585.67 |
|
Customer Experience and Innovation Manager |
2 |
Jun-24 |
€87,171.34 |
|
Investigation Manager |
5 |
Jun-24 |
€217,928.34 |
|
Registrar of Providers |
1 |
Jun-24 |
€43,585.67 |
|
Legal Services Manager/Team Lead |
2 |
Jun-24 |
€87,171.34 |
|
Decision Drafters |
6 |
Jun-24 |
€365,368.49 |
|
Senior Dispute Resolution Manager |
1 |
Jun-24 |
€60,900.58 |
|
Financial Controller |
1 |
May-24 |
€69,600.67 |
|
Chief Information Officer |
1 |
Jul-24 |
€68,130.50 |
|
Senior Manager, ICT |
1 |
Sep-24 |
€34,797.00 |
|
Registration Officer |
1 |
Jul-24 |
€17,662 |
|
Deputy Ombudsman |
1 |
TBC |
€58,930.71 |
|
Totals |
36 |
€1,663,455 |
147. Deputy Paul Donnelly asked the Minister for Finance when he last spoke formally with the UK Chancellor of the Exchequer. [8867/24]
View answerSince becoming Minister for Finance, I have engaged with the UK Chancellor of the Exchequer, Jeremy Hunt on a number of occasions; the first being a visit to London just a few weeks following my appointment. These engagements provide an excellent opportunity to discuss matters of mutual interest, including the economic and fiscal outlook at national, regional and global levels; as well as opportunities and challenges which we face.
These engagements are complemented by engagement by officials in my Department and their counterparts at HM Treasury, which takes places on a regular basis and at various levels up to the most senior management figures.
This ensures open channels and strong relationships to facilitate cooperation. Overall, there is an excellent bilateral relationship between my Department and HM Treasury, which reflects the deep and wide-ranging bilateral relationship with the UK. I look forward to further opportunities to engage with Chancellor Hunt, to build on the long-standing cooperation between our countries and economies.
148. Deputy Paul Donnelly asked the Minister for Finance if funding will be made available in 2024 to purchase three additional mobile baggage scanner vans for the Revenue Commissioners; and if he will seek EU funding to cover these costs. [8868/24]
View answerI am advised by Revenue that it currently operates 3 mobile container x-ray scanners, 1 x-ray backscatter van and 1 mobile baggage scanner van. In addition, Revenue has recently completed a tender for a second mobile baggage scanner van which will be based in Dublin but deployed in various locations nationwide as operational requirements dictate. This van is due for delivery in mid-2024 and has been purchased with financial assistance from the European Commission’s Customs Control Equipment Instrument (CCEI). It is expected to remain in service for at least 10 years.
I am also advised by Revenue that it keeps its operational requirements under continuous review, having regard to ongoing risk evaluation and evolving operational needs.
149. Deputy Mairéad Farrell asked the Minister for Finance further to Parliamentary Question No. 131 of 17 February 2021, the value of section 50 tax expenditures provided to purpose-built student accommodation in each of the years 2000 to 2010, and 2019 to 2022, in tabular form; and if he will make a statement on the matter. [9070/24]
View answerInformation in relation to Section 50 tax expenditures provided to purpose-built student accommodation for the years 2011-2021 are published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
I am advised by Revenue that the estimated tax cost of claims under the ‘Student Accommodation Scheme’ for the years 2004 to 2010 and 2019 to 2021 are as set out in the tables below.
|
Year |
Cost €m |
|
2004 |
83.8 |
|
2005 |
58 |
|
2006 |
64.3 |
|
2007 |
42 |
|
2008 |
23.5 |
|
2009 |
19.1 |
|
2010 |
19.2 |
|
Year |
Cost €m |
|
2019 |
6.4 |
|
2020 |
5.4 |
|
2021 |
3.9 |
Revenue have also advised that data is not available for the years 2000-2003. Data for 2022 will be available later this year once tax returns for 2022 have been fully processed and analysed.
150. Deputy Colm Burke asked the Minister for Finance the annual increases in the retail price of the most popular price category MPPC for a 20-pack of cigarettes since 2011; the portion of the increase related to taxes; the portion of the increase due to price rises by the tobacco industry, in tabular form; and if he will make a statement on the matter. [9099/24]
View answer151. Deputy Colm Burke asked the Minister for Finance the estimated revenue that would be raised annually if tobacco taxation were to be increased annually on a pro-rata basis so that all packs of 20 cigarettes cost at least €20 by 2025; and the estimated revenue that would be raised annually if an equivalent annual tobacco tax on roll-your-own cigarettes was introduced; and if he will make a statement on the matter. [9100/24]
View answerI propose to take Questions Nos. 150 and 151 together.
I am advised by Revenue that the table below shows the annual increases in the retail price of the most popular price category (MPPC) for a 20 pack of cigarettes since 2011, together with the portions related to tax increases and trade increases.
|
Year |
MPPC 1 January € |
Tax Increase € |
Trade Increase € |
Total Increase € |
MPPC 31 December € |
|
2011 |
8.55 |
0.25 |
0.10 |
0.35 |
8.90 |
|
2012 |
8.90 |
0.28 |
0.12 |
0.40 |
9.30 |
|
2013 |
9.30 |
0.10 |
0.10 |
0.20 |
9.50 |
|
2014 |
9.50 |
0.40 |
0.10 |
0.50 |
10.00 |
|
2015 |
10.00 |
0.50 |
0.00 |
0.50 |
10.50 |
|
2016 |
10.50 |
0.50 |
0.30 |
0.80 |
11.30 |
|
2017 |
11.30 |
0.50 |
0.20 |
0.70 |
12.00 |
|
2018 |
12.00 |
0.50 |
0.20 |
0.70 |
12.70 |
|
2019 |
12.70 |
0.50 |
0.30 |
0.80 |
13.50 |
|
2020 |
13.50 |
0.30* |
0.20 |
0.50 |
14.00 |
|
2021 |
14.00 |
0.70** |
0.30 |
1.00 |
15.00 |
|
2022 |
15.00 |
0.50 |
0.30 |
0.80 |
15.80 |
|
2023 |
15.80 |
0.75 |
0.20 |
0.95 |
16.75 |
|
2024 |
16.75 |
0.00 |
0.00 |
0.00 |
16.75*** |
*The tax increase in 2020 of €0.30 aggregates an increase of €0.50 in excise in October 2020 and a €0.20 reduction in VAT from 23% to 21% on 1 September 2020.
**Includes the increase of €0.50 in excise in October 2021 and the increase of €0.20 in VAT to 23% on 1 March 2021.
***The latest price for the MPPC is €16.75 (February 2024).
In relation to Question 9100/24, I am advised by Revenue that the estimated revenue impact of potential changes in rates of taxation, including estimates for the full year yield from changes in duties on packs of 20 cigarettes and on roll-your-own tobacco, are available on page 25 of its Ready Reckoner for calculating the likely impacts of potential changes to taxes or duties. It is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. The Deputy should note that, in calculating the yield estimates for changes to the duties on packs of cigarettes, the Ready Reckoner estimates assume pro-rata increases in other tobacco products.
152. Deputy Colm Burke asked the Minister for Finance the number of persons successfully prosecuted for tobacco and-or cigarette smuggling in 2022, 2023 and for the year to date in 2024, in tabular form; and if he will make a statement on the matter. [9101/24]
View answer153. Deputy Colm Burke asked the Minister for Finance the resources he is currently allocating to the Revenue Commissioners and the new or improved enforcement actions that are being taken to combat illicit tobacco smuggling; and if he will make a statement on the matter. [9102/24]
View answerI propose to take Questions Nos. 152 and 153 together.
I am assured that Revenue is committed to targeting the illicit tobacco trade and implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco products, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
The smuggling of tobacco products has a transnational and cross border dimension and, in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, I am advised that Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF), and international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
I am pleased to say that Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2023, Revenue had 5,164 seizures of cigarettes with an estimated value of €55.7m and 1,673 seizures of tobacco with an estimated value of €7.7m.
A breakdown of the number of persons successfully prosecuted for tobacco and/or cigarette smuggling in 2022, 2023 and year to date 2024 are provided in the following table.
|
Year |
Summary Prosecutions |
Indictable Prosecutions |
|
2022 |
20 |
4 |
|
2023 |
40 |
7 |
|
2024 YTD |
6 |
1 |
As Revenue is a fully integrated tax and customs administration, I am advised that it is not possible to disaggregate the resources deployed, or funding dedicated, at any given time to combat tobacco smuggling. However, Revenue’s Investigation, Prosecution and Frontier Management Division which has, inter alia, responsibility for trade facilitation, anti-smuggling and anti-evasion, investigation and prosecution, has just under 1,100 staff as at 31 January 2024. Resources allocated to such work are adjusted and realigned in response to changes in the level of risk in different sectors.
Finally, the Government has ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade. I am satisfied that the current legislative framework provides an effective basis for undertaking and continuing its important work in this area. I am assured that Revenue is very alert to the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer, and commend Revenue and all the relevant State agencies for their work in tackling this form of criminality.
154. Deputy Violet-Anne Wynne asked the Minister for Finance if he will clarify a point of policy (details supplied); and if he will make a statement on the matter. [9118/24]
View answerIn relation to the constituent's entitlement to tax reliefs in respect of student fees and rent paid, the following matters are relevant.
Section 473A of the Taxes Consolidation Act 1997 provides for tax relief on third-level tuition fees where an individual incurs “qualifying fees” in respect of an “approved course”.
I am advised by Revenue that qualifying fees mean tuition fees, but do not include administration fees or examination fees, student centre or union levies or accommodation costs.
A list of approved colleges and courses is published on Revenue’s website each year and can be found at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/approved-colleges-and-courses.aspx
All approved courses provided by publicly funded or duly accredited universities and institutions in other European Union Member States or in the United Kingdom are approved for the purposes of this relief.
The maximum amount which can qualify for relief is €7,000 per course per academic year, and when determining the amount eligible for relief the following amounts must be deducted:
• any portion of tuition fees that are or will be met directly or indirectly by grant, scholarship, employer contribution or other similar means; and
• the first €3,000 paid in respect of a full-time course or €1,500 paid in respect of a part-time course.
To qualify for tax relief an undergraduate course must:
• be carried out in an approved college, and
• last a minimum of two academic years.
To qualify for tax relief a postgraduate course must:
• be carried out in an approved college,
• last a minimum of one academic year but no longer than four academic years, and
• lead to a postgraduate award based on either a thesis or an examination.
Provided all the conditions set out above are met, the undergraduate course and the masters undertaken in Scotland would be eligible for tax relief.
Taxpayers have four years in which they can claim for an expense and receive a tax refund. For example, claims for the 2020 tax year must be made by 31 December 2024.
A claim for tax relief on tuition fees is made by filing an Income Tax Return. For all taxpayers Revenue provides a free, quick and easy to use facility to file an Income Tax Return. For PAYE taxpayers this is done through myAccount with self-assessed taxpayers using ROS.
Further information on filing an Income Tax Return can be found on Revenue’s website as follows:
• for PAYE taxpayers: www.revenue.ie/en/jobs-and-pensions/end-of-year-process/index.aspx
• for self-assessed taxpayers: www.revenue.ie/en/online-services/services/common/file-an-income-tax-return.aspx
Further information and guidance on tax relief for tuition fees can be found on Revenue’s website, available at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx .
The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997, is an income tax credit which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
The purpose behind the rent tax credit, introduced as a temporary measure, is to assist as part of the overall response to the accommodation shortage in the private rented residential sector in the Republic of Ireland. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs and who do not receive any other housing supports from the State. Owing to this, the eligibility criteria for the credit specify that the rental property concerned must be a residential property located in the State.
As such, neither students attending university outside the State nor their parents are currently entitled to the Rent Tax Credit in respect of rent which they have paid for accommodation outside the State.
As the Deputy will appreciate, in designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind the measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
155. Deputy Louise O'Reilly asked the Minister for Finance his views on the inclusion of expenditure incurred on research and development activities undertaken in the green technology space for the research and development tax credit. [9272/24]
View answerThe research and development (R&D) corporation tax credit, as provided for in Part 29 of the Taxes Consolidation Act 1997, is available to companies, including companies operating in the green technology space, which are within the charge to Irish tax and which incur expenditure on qualifying R&D activities. The legislation is supplemented by the Taxes Consolidation Act 1997 (Prescribed Research and Development Activities) Regulations 2004 which set out the categories of R&D activities which may qualify for the credit.
For accounting periods commencing on or after 1 January 2024, the R&D corporation tax credit is available at a rate of 30% of allowable expenditure. For accounting periods commencing before this date, the rate of the credit is 25%.
The company must undertake qualifying R&D activities within the European Economic Area (EEA) or the UK and, in the case of an Irish tax resident company, the expenditure must not qualify for a deduction for the purposes of tax in another territory.
In making a claim for the R&D corporation tax credit, companies must satisfy two tests: the activity must be a qualifying activity (a science test) and the amount of the claim must be based on R&D expenditure incurred (an accounting test).
For the activities to be qualifying R&D activities, they must be systematic, investigative or experimental activities in a field of science or technology and involve one of the following research categories:
• Basic research,
• Applied research, or
• Experimental development.
• In addition, the R&D activities must seek to achieve a scientific or technological advancement and involve the resolution of scientific or technological uncertainty.
• The R&D corporation tax credit is available in respect of expenditure incurred wholly and exclusively in the carrying on by the company of qualifying R&D activities.
• In relation to the Deputy's query on expenditure incurred on research and development activities undertaken in the green technology space, there are no sectoral restrictions on the R&D tax credit so it is available in respect of expenditure on R&D activities undertaken in the green technology space where the qualifying criteria are met.
• Full information regarding the R&D corporation tax credit, including the categories of activities which may qualify for the credit, is available in Revenue’s published Tax and Duty Manual on the Research and Development (R&D) Corporation Tax Credit, which can be accessed on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-29/29-02-03.pdf
156. Deputy Richard Bruton asked the Minister for Finance the process through which the Revenue Commissioners estimate tax that may have been overpaid by PAYE workers (details supplied); and, in particular, whether this is based on an assumption about tax allowable expenses claimed by these individuals, or by applying some inference about these taxpayers from the claims made by others. [9280/24]
View answerI am advised by Revenue that the estimation of tax overpaid by PAYE taxpayers is based on the total of all Preliminary End of Year Statements (PEOYS) where an overpayment of tax is indicated.
The PEOYS is made available to all PAYE taxpayers at the end of each tax year and sets out the provisional tax position for that particular year, indicating whether the correct amount of tax and/or USC has been paid based on information, such as income and credits/reliefs, already on Revenue records.
Revenue have confirmed that, where a PAYE Income Tax Return is not completed, it is not possible to confirm the final tax position as individual circumstances differ and additional credits or reliefs may be available and additional income may be declared.
157. Deputy Cian O'Callaghan asked the Minister for Finance the method the Revenue Commissioners use for calculating yearly interest rates on local property tax; the reason behind fluctuating rates; if the Revenue Commissioners are required to inform homeowners of increasing or decreasing interest rates each year; the way for homeowners to challenge increased interest rates; and if he will make a statement on the matter. [9326/24]
View answerI am advised by Revenue that property owners who fail to comply with their Local Property Tax (LPT) obligations are subject to a range of collection and enforcement options including the charging of interest on late payments. Where LPT remains unpaid, taxpayers are informed in writing that interest will apply on the late payment.
The current interest rate for late payments of LPT, which has not been amended since the introduction of LPT in 2013, is 8% per annum (0.0219% per day). The interest is calculated using the following formula: T x D x R, where T is the LPT payable which remains unpaid, D is the number of days (including part of a day) in the period during which the LPT remains unpaid, and R is the rate of 0.0219%. Consequently, interest will continue to increase on a daily basis until the LPT is paid.
Exceptionally, a reduced interest rate of 3% per annum (0.008% per day) is currently available where a property owner has qualified for a deferral of the LPT due. Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) includes arrangements whereby a person may opt to defer, or partially defer, payment of LPT if certain conditions are met. This current rate was introduced on 1 January 2022, where previously it was 4% per annum (0.011% per day).
158. Deputy Catherine Murphy asked the Minister for Finance if he has engaged with the Central Bank and-or the Revenue Commissioners in respect of online tax agents acting on behalf of PAYE customers; if he will clarify the regulations tax agents must comply with; and if his attention has been drawn to tax agents taking excessive fees in respect of their acting role. [9348/24]
View answerI am advised by Revenue that, while the majority of PAYE taxpayers who file returns now do so themselves, a taxpayer may engage an agent to act on their behalf. This is a commercial and professional engagement between the taxpayer and the agent. However it does not remove the responsibility on the taxpayer to ensure that any claim made on their behalf is correct.
Revenue has no role regarding the level of fees charged by an agent or advisor or how those fees are collected. This is a matter between the agent or advisor and the taxpayer. Taxpayer should familiarise themselves with the terms of any agreement with their agent or advisor.
Revenue’s website contains guidance for taxpayers on what it means when they appoint an agent to deal with their tax affairs. This guidance is available at the following link: www.revenue.ie/en/jobs-and-pensions/tax-agent-tax-service/index.aspx
I am further advised by Revenue that the agent authorisation process is comprehensive and includes the following steps:
• When an individual taxpayer signs up with an agent, they provide that agent with personal information, including their PPS number, date of birth and signature.
• The appointed agent then uses this information to complete the relevant Authorisation Form and sends copies to both Revenue and the taxpayer concerned. Form PAYE A1 authorises an agent to act on a taxpayer’s behalf, while Form PAYE A2 authorises an agent to receive tax refunds directly on a taxpayer’s behalf.
• On receipt of this form, Revenue will issue written correspondence to the taxpayer at the address on their Revenue record, informing them that Revenue has been advised by the named agent that they are now acting on the taxpayer’s behalf.
• Where a Form PAYE A2 has been submitted to Revenue, a second letter is issued to the same address, advising the taxpayer that the bank details on their Revenue record have been updated.
• The correspondence issued to the taxpayer by Revenue advises the taxpayer to contact Revenue immediately if there are any issues with the changes made.
• Where a refund is claimed online, Revenue will transfer the refund directly to the bank account details on the individual’s Revenue record.
• Where a Form PAYE A2 has been submitted and the taxpayer has not contacted Revenue to advise that the updated bank account details are incorrect, the refund will issue to the taxpayer’s appointed agent in line with the taxpayer’s authorisation. In some cases, the agent may deduct their fee from the refund before paying the balance of the amount to their client.
Revenue allocates a Tax Agent Identification Number (TAIN) as part of an administrative process by which a tax agent or transaction advisor can be identified as an intermediary that acts on behalf of those taxpayers who have opted to appoint that particular agent or advisor to deal with their tax affairs on their behalf.
Revenue's Tax and Duty Manual (TDM) Part 37-00-04b provides guidance for tax advisors and agents acting on behalf of taxpayers, including information on how to register for a TAIN. There are no prerequisite criteria and being recognised as an agent does not confer any approval or endorsement by Revenue of an agent’s qualifications, experience or other ability to act as a tax agent. The recently updated TDM is available on Revenue’s website at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf
I am further advised by Revenue that it engages with all customers who contact it with a complaint regarding an agent. Such complaints are fully investigated by Revenue and so any taxpayers with concerns about their interactions with a tax agent or advisor should be advised to contact Revenue through MyEnquiries.
While the Central Bank of Ireland has no remit over tax agents or intermediaries, I am advised that Revenue operates an Agent Compliance Program, which involves investigating customer complaints with agents, thereby providing assurance that agents are adhering to the process outlined in the TDM and, if there is any deviation, agreeing remedial actions to address this. In that regard, although Revenue cannot comment on individual taxpayers or entities, Revenue has advised that it carried out 14 site visits to PAYE agents in the period 1 September 2022 to 31 December 2023.
In relation to matters raised recently in the media, Revenue has advised me that, where it has been able to identify the individuals concerned, it is following up with them. It also advises me that from the 8 February 2024, it has provided detailed replies to media queries raised with it. Revenue further advises that it regularly reviews its processes for agents and the matters raised in recent weeks will be considered as part of its agent compliance strategy.
Finally, it is worth noting that, in recent weeks, an extensive information campaign was launched to raise awareness among PAYE taxpayers about Revenue’s quick, easy, and free to use myAccount service, which taxpayers can use to finalise their tax position. As of 23 February 2024, PAYE taxpayers have filed more than 800,000 PAYE Income Tax Returns for 2023, of which over 547,000 were eligible for and received refunds amounting to €410 million in respect of the 2023 tax year. Of these returns, approximately 85% were filed directly by the taxpayer.
159. Deputy Michael Moynihan asked the Minister for Finance the number of home buyers in each county who have availed of the help-to-buy scheme since July 2020, by county, in tabular form; and if he will make a statement on the matter. [9349/24]
View answerThe Help to Buy (HTB) initiative announced in Budget 2017 is an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. With a view to increasing the supply of new housing and stimulating demand, the relief is only available in respect of new builds.
In the July 2020 stimulus plan, the scheme was amended so that the level of support available to first-time buyers was increased to the lesser of €30,000, increased from €20,000, or 10%, increased from 5%, of the purchase price of a new home or self-build property; or the amount of income tax and deposit interest retention tax paid in the four years before the purchase or self-build. The scheme was extended in its enhanced form in Budget 2021. The help-to-buy scheme was extended in the Finance Act 2022 for a further two years to the end of 2024, and again in Finance Act 2023 for a further year to the end of 2025.
Applications for the help-to-buy scheme may be made on a provisional basis as first-time buyers seek to clarify their entitlements in advance of commencing the purchase of a property. An application will only progress to the claim stage if and when the applicant decides to purchase a property that is eligible for the scheme. It is at the claim stage that the property address details become available.
I am advised by Revenue that the number of help-to-buy claims approved since 1 July 2020, broken down by county, are set out in the table below, along with the number of applicants associated with these claims. These figures include data in relation to both purchases and self-builds.
|
Property County |
Number of Claims |
Number of Applicants |
|
Carlow |
294 |
512 |
|
Cavan |
261 |
475 |
|
Clare |
474 |
854 |
|
Cork |
3,746 |
6,902 |
|
Donegal |
568 |
1,007 |
|
Dublin |
3,756 |
6,909 |
|
Galway |
1,343 |
2,430 |
|
Kerry |
354 |
647 |
|
Kildare |
3,707 |
6,860 |
|
Kilkenny |
504 |
925 |
|
Laois |
722 |
1,312 |
|
Leitrim |
82 |
153 |
|
Limerick |
806 |
1,451 |
|
Longford |
84 |
157 |
|
Louth |
1,110 |
2,016 |
|
Mayo |
560 |
1,018 |
|
Meath |
2,791 |
5,154 |
|
Monaghan |
302 |
549 |
|
Offaly |
494 |
905 |
|
Roscommon |
234 |
430 |
|
Sligo |
228 |
390 |
|
Tipperary |
414 |
745 |
|
Waterford |
693 |
1,258 |
|
Westmeath |
410 |
748 |
|
Wexford |
1,019 |
1,822 |
|
Wicklow |
1,183 |
2,198 |
|
Totals |
26,139 |
47,827 |
*Data as at 23rd February 2024
160. Deputy Michael Moynihan asked the Minister for Finance the number of taxpayers currently claiming the rent tax credit, by county, in tabular form. [9350/24]
View answerThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
I am advised by Revenue that the Rent Tax Credit statistics currently available refer only to claims by PAYE taxpayers. Data on claims by self-assessed taxpayers are not yet available. Statistics covering all taxpayers will be available in quarter 2 2024.
Claims in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2024, PAYE taxpayers had the option of claiming the rent tax credit due to them as rent is incurred through Revenue’s myAccount service or at the end of the year through their Income Tax return.
Rent Tax Credit claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
I am advised that as of 22 February 2024, 518,372 Rent Tax Credit claims have been made by 333,309 taxpayer units.
Data for claims relating to PAYE taxpayers are set out by county in the table below.
|
County |
Number of taxpayer units claiming RTC |
||
|
|
2022 Year of Assessment |
2023 Year of Assessment |
2024 Year of Assessment |
|
Carlow |
2,414 |
1,885 |
324 |
|
Cavan |
2,195 |
1,784 |
288 |
|
Clare |
3,332 |
2,648 |
510 |
|
Cork |
30,079 |
23,069 |
4,417 |
|
Donegal |
3,344 |
2,647 |
514 |
|
Dublin |
124,900 |
100,960 |
19,837 |
|
Galway |
18,935 |
13,804 |
2,832 |
|
Kerry |
4,077 |
3,163 |
496 |
|
Kildare |
9,446 |
7,548 |
1,440 |
|
Kilkenny |
2,830 |
2,302 |
449 |
|
Laois |
2,086 |
1,612 |
336 |
|
Leitrim |
865 |
617 |
119 |
|
Limerick |
12,983 |
9,477 |
1,777 |
|
Longford |
1,544 |
1,245 |
205 |
|
Louth |
3,637 |
3,074 |
600 |
|
Mayo |
3,844 |
3,079 |
605 |
|
Meath |
4,990 |
4,277 |
759 |
|
Monaghan |
1,872 |
1,553 |
280 |
|
Offaly |
2,210 |
1,802 |
342 |
|
Roscommon |
1,728 |
1,401 |
280 |
|
Sligo |
3,091 |
2,239 |
439 |
|
Tipperary |
4,654 |
3,729 |
666 |
|
Waterford |
5,143 |
4,091 |
804 |
|
Westmeath |
3,855 |
3,099 |
585 |
|
Wexford |
4,172 |
3,278 |
609 |
|
Wicklow |
3,232 |
2,611 |
515 |
|
Not currently available |
4,257 |
4,371 |
1,264 |
|
Total |
265,715 |
211,365 |
41,292 |
