Niall Collins
Ceist:117. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the date on which he was informed about the forthcoming visit of President Trump; and the details of same. [36731/18]
Amharc ar fhreagraState Visits
Ceisteanna (117)
Freagraí scríofa
It was announced on Friday 31 August by the White House that the US President proposed to visit Ireland in November as part of his trip to Europe to commemorate the end of the First World War.
The Tánaiste and Minister of Foreign Affairs and Trade was informed of the proposed visit of the US President on Wednesday 29 August. Discussions took place at official level between the US Administration and the Government on the proposed visit during and after the week of the announcement and were led by Ireland’s Embassy in Washington, D.C.
The proposed visit by the US President in November has since been postponed, with the US Administration citing scheduling reasons.
Ministerial Advisers Data
Ceisteanna (118)
Alan Kelly
Ceist:118. Deputy Alan Kelly asked the Tánaiste and Minister for Foreign Affairs and Trade the political advisers being used by senior and junior Ministers in his Department since the commencement of this Government; the commencement dates of the employment of each; and the cessation dates of same employment in cases in which that applies. [36699/18]
Amharc ar fhreagraFreagraí scríofa
Details of Political Advisers employed by my Department since the commencement of this Government are outlined in the following table.
Minister, Deputy Charles Flanagan
|
Special Advisor |
Date of Commencement |
Date of Cessation |
|
Sarah Kavanagh |
6 May 2016 |
15 June 2017 |
|
Tom Fabozzi |
27 May 2016 |
16 June 2017 |
Minister of State, Deputy Dara Murphy
|
Special Advisor |
Date of Commencement |
Date of Cessation |
|
Conor Gouldsbury |
6 May 2016 |
21 June 2017 |
Tánaiste, Deputy Simon Coveney
|
Special Advisor |
Date of Commencement |
Date of Cessation |
|
Caitriona Fitzpatrick |
14 June 2017 |
|
|
Christopher Donoghue |
4 December 2017 |
|
|
Matthew Lynch |
4 December 2017 |
Minister of State, Deputy Helen McEntee
|
Special Advisor |
Date of Commencement |
Date of Cessation |
|
Paul Fox |
11 September 2017 |
International Relations
Ceisteanna (119)
Maureen O'Sullivan
Ceist:119. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to establish a bilateral consultation mechanism with Nepal; and if he will make a statement on the matter. [37246/18]
Amharc ar fhreagraFreagraí scríofa
Ireland does not currently have plans to establish a bilateral consultation mechanism with Nepal. Ireland and Nepal, however, have strong and very friendly bilateral relations. The President of Ireland, Michael D. Higgins, attended the Nepal-Ireland friendship day ceremony in Dublin on 18 August, which I understand was an extremely successful event.
Ireland does not have a resident Embassy in Nepal, though our Embassy in New Delhi is also accredited to Nepal. As part of the Global Ireland project, we are currently exploring ways to enhance our bilateral co-operation and contact with countries with which we do not have strong historical links.
The Irish Ambassador in New Delhi recently visited Nepal and met with officials in the Foreign Ministry there. Officials in my department are in regular contact with the Embassy of Nepal in London, and will continue to work towards enhancing the bilateral relations between our countries.
Visa Applications
Ceisteanna (120)
Louise O'Reilly
Ceist:120. Deputy Louise O'Reilly asked the Tánaiste and Minister for Foreign Affairs and Trade if there is a facility for an Irish citizen applying for a visa for the Philippines to deal with a named official in his Department here rather than having to liaise with officials from the consulate in Manila; and if he will make a statement on the matter. [37302/18]
Amharc ar fhreagraFreagraí scríofa
The Department of Foreign Affairs and Trade does not have a role in regard to the issuance of visas for Irish citizens travelling to the Philippines. This is a matter for the Philippine authorities. In all circumstances citizens are advised to make contact with the closest Embassy or representative office of the country they intend to visit.
An Irish citizen wishing to apply for a visa for the Philippines should make contact with the Embassy of the Philippines in London, which can be reached at (+44) 20 7451 1780. Alternatively, the Honorary Consul of the Philippines in Dublin can be reached at Visas@PhilippineConsulate.ie
British-Irish Intergovernmental Conference
Ceisteanna (121)
Micheál Martin
Ceist:121. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the Intergovernmental Conference held in July 2018; the issues that were discussed; and if there has been a follow-up since same. [37316/18]
Amharc ar fhreagraFreagraí scríofa
A meeting of the British-Irish Intergovernmental Conference, BIIGC, took place in London on 25 July. I and the Minister for Justice and Equality, Deputy Charles Flanagan, represented the Government. The UK Government was represented by the Chancellor of the Duchy of Lancaster, David Lidington MP, and the Secretary of State for Northern Ireland, Karen Bradley MP.
The Conference was established under Strand Three of the Good Friday Agreement, bringing together both Governments to promote bilateral co-operation on matters of mutual interest within their competence. As detailed in the joint communiqué, we discussed legacy issues, security cooperation, East-West matters, political stability, and future meetings of the BIIGC.
At the meeting, we reviewed the ongoing progress towards implementation of the Stormont House Agreement legacy framework and the legislative measures that are being brought forward in Ireland to implement and support this. I also raised other legacy issues.
Both Governments recalled the commitments made in the 2015 Fresh Start Agreement to ending paramilitarism and looked forward to the first report of the Independent Reporting Commission.
On east-west relations, the conference committed to maintain the high levels of bilateral cooperation across a range of important policy areas and looked at where cooperation could be strengthened following the UK’s exit from the EU. Officials have been tasked with taking forward this area of work with a view to drafting proposals for future east-west co-operation.
Both Governments reiterated our strong support for the Good Friday Agreement and reaffirmed our shared commitment to the political institutions it established. We reaffirmed our joint commitment to securing the effective operation of power-sharing, devolved government in Northern Ireland, the resumption of the North/South Ministerial Council and the participation of Northern Ireland in the British Irish Council at the earliest opportunity.
It was agreed at the conference that both Governments would meet again in the autumn. Officials from across government, in coordination with my officials in the Irish Secretariat in Belfast, continue to follow up on the outcomes of the Conference.
Irish Aid
Ceisteanna (122)
Niall Collins
Ceist:122. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the reason for the inordinate delay by Irish Aid in the distribution of approved grants for 2018 to NGOs; the timeline by which he now expects these funds to be transferred to the grantees; the safeguards he plans to put in place to ensure that such delays do not occur in future years; and if he will make a statement on the matter. [37727/18]
Amharc ar fhreagraFreagraí scríofa
The Department of Foreign Affairs and Trade recognises the specific skill sets and expertise of civil society and the vital contribution that civil society makes across development co-operation overseas. Ireland has long been the OECD DAC, Development Assistance Committee, member which provides the greatest percentage of bilateral overseas development aid, ODA, to and through civil society organisations. In 2016, the Irish percentage was 43%, compared to an OECD DAC average of 15%. Indeed, in 2017, 51% of Ireland’s bilateral ODA, over €165 million was channelled to and through NGOs, an even higher percentage.
Accordingly, prudential management of these Irish Aid funds is imperative to optimise the benefits for the poorest and most vulnerable and to ensure accountability to the taxpayer. In particular, payments are dependent upon compliance with terms and conditions of grants, including receipt of satisfactory reports on previous funding and achievement of benchmarks. My officials continue to engage actively with all NGOs in receipt of Irish Aid funding in relation to fulfilment of requirements for remaining payments this year.
The Department has piloted a new grant management system across Irish Aid funds this year to ensure that programmes and projects funded by Irish Aid meet the increasing level of due diligence required both nationally and internationally. Given the wide range of grant programmes which Irish Aid administers, it is not correct to generalise about the timing of grants to all NGOs. Among due diligence requirements, grantees are required to maintain adequate levels of reserves and an appropriate level of dependency on Irish Aid. Timing of grant disbursal is dependent on a number of factors, not all of which are predictable, including quality of input received from applicants, percentage of successful applicants meeting their benchmarks in a timely manner as well as internal capacity within Irish Aid.
Passport Applications Administration
Ceisteanna (123, 124)
Pearse Doherty
Ceist:123. Deputy Pearse Doherty asked the Tánaiste and Minister for Foreign Affairs and Trade the primary and secondary legislation which stipulates that a civil birth certificate is required for first passport applications; and if he will make a statement on the matter. [37754/18]
Amharc ar fhreagraPearse Doherty
Ceist:124. Deputy Pearse Doherty asked the Tánaiste and Minister for Foreign Affairs and Trade if it is planned that SAFE level 2 shall be accepted as documentary evidence of both identity and citizenship replacing the need for applicants to submit civil birth certificates for the purpose of making a first-time passport application; and if he will make a statement on the matter. [37755/18]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 123 and 124 together.
SAFE Level 2, SAFE2, registration is a process that allows a person to verify their identity for a number of public services provided by specified bodies.
The Public Services Card and the relevant issuing process, which is managed by the Department of Social Protection, requires SAFE2 registration and verification. SAFE2 is secure & robust and gives a high degree of assurance regarding the identity of the holder.
The Passport Service currently requires evidence that first time adult applicants and those seeking to replace lost, stolen or damaged passports issued prior to 2005 are holders of a PSC. This measure has been an important step in protecting against fraud and identity theft and in upholding the integrity of the Irish passport.
All passport applications are subject to the provisions of the Passports Act 2008. The Act provides, among other things, that a person must be an Irish citizen before a passport can be issued to him/her. In order to meet this legal requirement, each person must demonstrate an entitlement to Irish citizenship in his or her passport application. The PSC does not verify citizenship.
Section 7 of the Act requires that the Minister be satisfied as to a person’s identity and that the person is an Irish citizen before issuing a passport to that person. Section 7(2) provides as follows: “The Minister may require an applicant for a passport to provide such information as the Minister may require for the purposes of the application and to produce to him or her such documents as he or she considers necessary or expedient to enable him or her to perform the functions of the Minister under this Part.”
Foreign Policy
Ceisteanna (125)
Paul Murphy
Ceist:125. Deputy Paul Murphy asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the call by the European Commission President in his state of the Union address to the European Parliament to move to qualified majority voting in specific areas of the EU's external relations; and if he will make a statement on the matter. [37793/18]
Amharc ar fhreagraFreagraí scríofa
In his “State of the Union” address to the European Parliament on 12 September 2018, the President of the European Commission, Jean-Claude Juncker, gave a wide-ranging speech in which he touched on numerous issues. One of these, following on from his address of 2017, was a request to Member States to examine if there are foreign policy decisions in certain areas that could be taken by qualified majority voting.
Decisions on the EU’s Common Foreign and Security Policy are taken by the Council acting unanimously. As President Juncker has pointed out, there is provision in the Lisbon Treaty for decisions to be taken by qualified majority voting, provided that all Member States agree to this. Ireland would study any such proposals, if they were to emerge, very closely to ensure that the careful balance enshrined in the Treaty on European Union is fully respected.
Brexit Staff
Ceisteanna (126)
Micheál Martin
Ceist:126. Deputy Micheál Martin asked the Minister for Finance if he or his officials have discussed the need to recruit up to 1,000 officials for Brexit with his British counterpart. [35453/18]
Amharc ar fhreagraFreagraí scríofa
The priorities of the Irish Government are represented as the collective interests of the EU27 during the ongoing Brexit negotiations. We actively engage with the European Commission Taskforce and EU Brexit Preparedness Unit. The chief negotiator for the EU, Michel Barnier, leads discussions with the UK on behalf of the EU27. In light of the shared EU approach, Ireland do not negotiate directly with the UK.
In the course of normal international relations I meet with Chancellor Hammond and engage constructively on the strong relationship between our countries, we discuss the importance of trade between the two economies, and the many areas of common interest shared by Ireland and the UK.
During those discussions, I have reiterated to the Chancellor that the Irish Government fully respects the unity of the EU27 during negotiations and emphasised the importance our Government attaches to doing everything possible to make progress in the Brexit negotiations.
Tax Code
Ceisteanna (127)
Joe Carey
Ceist:127. Deputy Joe Carey asked the Minister for Finance his plans to exempt or reduce the rate of VAT charged in the delivery of community development projects with a view to maximising the direct spend on communities (details supplied); and if he will make a statement on the matter. [37004/18]
Amharc ar fhreagraFreagraí scríofa
Community development projects are generally exempt from VAT. Exemption from VAT means that they do not charge VAT on any goods or services they supply and also cannot claim deductibility on the VAT they pay on inputs related to their service.
The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish law must comply. VAT is charged on the basis of the good or services being supplied. It is not possible to apply VAT on the basis of the nature of the consumer.
However, in line with my Budget 2018 announcement, a VAT compensation scheme for charities will be introduced in 2019 in respect of VAT expenses incurred in 2018. Where community development projects are registered as charities, they may qualify under the scheme. The compensation scheme provides that charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5m. Details of the scheme as announced last year can be found in the following link:
http://www.budget.gov.ie/Budgets/2018/Documents/VAT_Compensation_Scheme_For_Charities.pdf
While the high level principles of the scheme were published on Budget Day in 2017, the parameters of the operation of the scheme are currently being progressed so that guidelines for charities can be published in advance of the 2019 commencement date.
Ministerial Meetings
Ceisteanna (128)
Joan Burton
Ceist:128. Deputy Joan Burton asked the Minister for Finance if he will report on his forthcoming meeting with a person (details supplied). [37417/18]
Amharc ar fhreagraFreagraí scríofa
I met with Dr Kevin Hassett, Chair of the White House Council of Economic Advisors, on 11 September 2018. Among the issues we discussed were the recently published corporation tax roadmap, Ireland-US trade, and Brexit. I raised the issue of the Aughanish alumina refinery, and outlined its importance. We also spoke about the strong and enduring ties between Ireland and the United States.
Ministerial Advisers Data
Ceisteanna (129)
Alan Kelly
Ceist:129. Deputy Alan Kelly asked the Minister for Finance the political advisers being used by senior and junior ministers in his Department since the commencement of this Government; the commencement dates of the employment of each; and the cessation dates of same employment in cases in which that applies. [36698/18]
Amharc ar fhreagraFreagraí scríofa
I wish to inform the Deputy that the special advisers used by senior and junior Ministers in the Department of Finance since the commencement of this Government are outlined in the table. My special advisers are employed in the Department of Finance and the Department of Public Expenditure & Reform.
|
Minister or Minister of State |
Name of Special Adviser |
Commencement Date of Special Adviser |
Cessation Date of Special Adviser |
|
Paschal Donohoe, Minister for Finance and Public Expenditure & Reform |
Deborah Sweeney |
06/05/2016 |
N/A |
|
Paschal Donohoe, Minister for Finance and Public Expenditure & Reform |
Stephen Lynam |
06/05/2016 |
16/03/2018 |
|
Paschal Donohoe, Minister for Finance and Public Expenditure & Reform |
Ed Brophy |
12/02/2018 |
N/A |
|
Michael D'Arcy, Minister of State (with special responsibility for Financial Services and Insurance) |
Barry Harrington, Civil Servant |
12/02/2018 |
N/A |
|
Deputy Michael Noonan, former Minister for Finance |
Mary Kenny |
10/03/2016 |
14/06/2017 |
|
Deputy Michael Noonan, former Minister for Finance |
Sean Kinsella, Civil Servant |
13/06/2016 |
14/06/2017 |
Motor Insurance
Ceisteanna (130)
Michael McGrath
Ceist:130. Deputy Michael McGrath asked the Minister for Finance when he expects to sign the commencement order for the Insurance (Amendment) Act 2018; the reason it has taken this long to sign the order; when he expects the next payment from the insurance compensation fund; and if he will make a statement on the matter. [36996/18]
Amharc ar fhreagraFreagraí scríofa
The Insurance (Amendment) Bill, was signed into law on 24 July 2018 and therefore is operational from that date. The Act provides for a separate commencement of Part 4 – Motor Insurers Insolvency Compensation Fund. The necessity for this staggered approach is to allow the Motor Insurance Bureau of Ireland, MIBI, adequate time to put arrangements in place for this new Fund. The Deputy should note that I signed the necessary commencement order late last week and have provided for a 1 December 2018 commencement date.
Under the provisions of the Insurance (Amendment) Act 2018, revised arrangements are now being put in place for the ongoing administration and management of the ICF. Under the new arrangements, the State Claims Agency can make an application to the High Court in accordance with the amended legislation, no more than once in any 3 month period. While no date has been fixed for the next payment, I am informed by the State Claims Agency that preparatory work is underway in respect of further settled claims as well as the balance owing of 35% to any third-party motor claimants who have been already paid 65%, with a view to making an application before the end of October.
Disabled Drivers and Passengers Scheme
Ceisteanna (131)
Michael McGrath
Ceist:131. Deputy Michael McGrath asked the Minister for Finance the position in relation to service providers that are registered as charities availing of the disabled drivers and disabled passengers tax concession scheme in circumstances in which the vehicle will be used for the purposes of transporting service users with disabilities; and if he will make a statement on the matter. [37020/18]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that Statutory Instrument No. 353 of 1994, Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994, as amended by Statutory Instrument No. 55 of 2018, sets out the requirements for an organisation to qualify for a repayment of Vehicle Registration Tax and VAT under the Disabled Drivers scheme.
Regulation 2 provides that a qualifying organisation for the Scheme must be a charitable organisation within the meaning of the Charities Act 2009 (No. 6 of 2009), that is:
(a) entered in the register of charitable organisations under Part 3 of that Act, and
(b) whose purpose is to provide services to persons with disabilities, and
(c) in furtherance of that purpose, is engaged in the care and transport of disabled persons.
An applicant organisation must satisfy each of the provisions above and the adapted vehicles must be used to transport persons who hold a primary medical certificate issued following assessment for eligibility under regulation 3, medical criteria.
For vehicles to qualify for repayment they must be adapted in line with the requirements of regulation 12 to allow for the safe transport of disabled persons.
Corporation Tax
Ceisteanna (132)
Pearse Doherty
Ceist:132. Deputy Pearse Doherty asked the Minister for Finance the estimated budgetary impact of the corporation tax roadmap; the breakdown of same in the circumstances applicable; and if he will make a statement on the matter. [37165/18]
Amharc ar fhreagraFreagraí scríofa
On 5 September, I published Ireland’s Corporation Tax Roadmap, available on my Department’s website via the following link: https://www.finance.gov.ie/wp-content/uploads/2018/09/Corporation-Tax-Road-Map-fin.pdf. This roadmap takes stock of the changing international tax environment, outlines the actions Ireland has taken to date and the further actions that will be taken over the coming years to ensure that our corporation tax code is line with international best practices.
This roadmap also includes details in relation to the transposition of the Anti-Tax Avoidance Directives, ATADs, and actions to be taken with regard to the recommendations from the Review of Ireland’s Corporation Tax Code, undertaken by Mr Seamus Coffey. The commitments outlined in the roadmap are primarily about introducing measures to limit aggressive tax planning. To that extent, the commitments are not expected to have any cost to the Exchequer.
The Budget 2019 commitments set out in the roadmap include legislation to be introduced in Finance Bill 2018 to introduce controlled foreign company, CFC, rules, with effect from 1 January 2019. The purpose of CFC rules is to discourage the artificial diversion of income to low tax jurisdictions. As such they are not designed primarily to raise Exchequer revenue, but rather to modify taxpayer behaviour.
The final legislative steps required to allow Ireland to complete the ratification of the BEPS multilateral instrument will also be taken in Finance Bill 2018. The changes introduced to the application of Ireland’s tax treaties are primarily anti-avoidance in nature and are aimed at stopping international tax planning strategies known as treaty shopping. It is not possible to estimate the potential budgetary impact from the changes that will be made to the application of Ireland’s tax treaties.
The roadmap also enumerates further commitments to action over the next 12 to 24 months arising from the ATADs and from the Coffey recommendations, including the introduction of anti-hybrid and anti-reverse hybrid rules; an exit tax; an interest limitation ratio; updating of transfer pricing rules; and further work on mandatory disclosure rules, dispute resolution and implementation of the International Mutual Assistance Bill.
It will not be possible to estimate the budgetary impact of such measures until the process of designing the measures is significantly further advanced. As I outlined in the roadmap, the confluence of the OECD BEPS outcomes and the most significant US tax reform in recent history is likely to lead to significant changes in the structure of multinationals over the next number of years. The purpose of the programme of changes set out in the Roadmap is to ensure that Ireland remains on a sustainable path for growth and investment in this rapidly-changing international tax environment.
Hospital Consultant Contracts
Ceisteanna (133)
Pearse Doherty
Ceist:133. Deputy Pearse Doherty asked the Minister for Finance the impact of the issue the financial contractual obligations to consultants being honoured operating under the 2008 consultants' contract will have in budget 2019; and if these moneys are factored into the base when calculating available fiscal space. [37171/18]
Amharc ar fhreagraFreagraí scríofa
I can advise the Deputy that the settlement results in a payment of €31 million in relation to 2018 and an annual ongoing cost of €62 million from 1 January 2019.
Therefore the incremental cost in 2019 is the increase of €31 million, €62 million minus €31 million, in 2019 over 2018.
There is no effect thereafter as it will be in the expenditure base.
As I stated in the Summer Economic Statement, as the economy approaches full employment fiscal space is increasingly an inappropriate concept. The Government will instead focus on maintaining a sensible fiscal stance to ensure steady and sustainable improvements in living standards.
Tax Credits
Ceisteanna (134)
Pearse Doherty
Ceist:134. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the existing tax credit for rent paid to private landlords for 2019. [37220/18]
Amharc ar fhreagraFreagraí scríofa
I assume the Deputy is referring to the rent tax credit, which was a credit available to those paying for private rented accommodation. This included rent paid for flats, apartments or houses. It did not include rent paid to local authorities. The credit was only available to a person who was renting on 7 December 2010 and ceased to be available after 31 December 2017.
As the Deputy may be aware, historic numbers availing of the rent tax credit - rent paid in private tenancies - and the cost associated with the provision of this credit, are available on Revenue’s website in tabular form for the years 2004 to 2016 at the following link:
https://www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
In 2016, the most recent year for which data are available, the credit cost €13.7 million.
Home Renovation Incentive Scheme
Ceisteanna (135)
Seán Haughey
Ceist:135. Deputy Seán Haughey asked the Minister for Finance if an analysis has been undertaken on the effectiveness of the home renovation incentive; if this scheme will be extended beyond 2018; and if he will make a statement on the matter. [37229/18]
Amharc ar fhreagraFreagraí scríofa
In accordance with the relevant provisions of the Taxes Consolidation Act 1997, the Home Renovation Incentive is due to expire at the end of this year. As with all such time limited incentives, I will consider the future of this measure in the context of my preparations for the forthcoming Finance Bill. As part of that work, my officials are carrying out the appropriate ex-post evaluation of the incentive having regard to the criteria set out in my Department's tax expenditure guidelines.
Tax Clearance Certificates
Ceisteanna (136)
Michael McGrath
Ceist:136. Deputy Michael McGrath asked the Minister for Finance the position regarding an application for a tax clearance certificate by a person (details supplied) in County Cork. [37231/18]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that an application for tax clearance was made by the person concerned on 7 March 2018 but as there was and remains an outstanding Capital Acquisitions Tax Return, CAT IT 38, and any payment, if due, for the period 1 September 2016 to 31 August 2017, it was not possible to provide tax clearance and they were advised accordingly.
The person concerned should file the CAT return and make any payment that may be due and they can then reapply for tax clearance. If they require any assistance, they should contact Revenue’s helpline at 1890 203070.
Tax Code
Ceisteanna (137)
Michael Healy-Rae
Ceist:137. Deputy Michael Healy-Rae asked the Minister for Finance the reason buses for transporting persons with disabilities are not exempt from paying VAT (details supplied); and if he will make a statement on the matter. [37293/18]
Amharc ar fhreagraFreagraí scríofa
The Value-Added Tax (Refund of Tax) (No. 15) Order, 1981 enables VAT paid on qualifying goods, such as aids and appliances constructed or adapted for use by a disabled person, to be refunded where the goods are purchased for the exclusive use of disabled persons suffering a specified degree of disablement. Motor vehicles are excluded from this Order because the qualifying provisions for the Disabled Drivers and Passengers Scheme provide for a refund of VAT and residual vehicle registration tax for qualifying disabled drivers, passengers and organisations.
Non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive. This means that they do not register for VAT and cannot recover VAT incurred on goods and services that they purchase. This non-entitlement to VAT deductibility is a general feature of VAT exemption and there is no provision in either European law or Irish VAT law to allow a zero-rating or exemption for supplies of this nature. VAT is a tax on consumption and is applied to supplies being made by a person and not to supplies received by them. In this context, it is not possible under EU VAT law, with which Irish VAT law must comply, to introduce a VAT exemption based on services received, or on the basis of the recipient of a service, nor is it possible to allow for zero rating of such supplies.
However, in line with my Budget 2018 announcement, a VAT compensation scheme for charities will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5 million. While the high level principles of the scheme were published on Budget day in 2017, the parameters of the operation of the scheme are being progressed so that guidelines for charities can be published in advance of the 2019 commencement date.
In relation to the aforementioned Disabled Drivers and Passengers Scheme, Section 92 of the Finance Act 1989 and Statutory Instrument No 55/2018 set out the criteria under which charitable organisations can claim a repayment of VRT and VAT paid on specially constructed or adapted vehicles under the Disabled Drivers and Passengers Scheme.
To qualify under the scheme, an organisation must be a charitable organisation within the meaning of the Charities Act 2009 (No. 6 of 2009), that is –
(a -entered in the register of charitable organisations under Part 3 of that Act, and
(b- whose purpose is to provide services to persons with disabilities, and
(c- in furtherance of that purpose, is engaged in the care and transport of disabled persons.
An applicant must qualify under all the conditions outlined above and adapted vehicles must be used to transport persons who are severely and permanently physically disabled and who hold a Primary Medical Certificate.
Tax Reliefs Eligibility
Ceisteanna (138)
Michael Healy-Rae
Ceist:138. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter regarding the case of a person (details supplied); and if he will make a statement on the matter. [37328/18]
Amharc ar fhreagraFreagraí scríofa
Section 472AA of the Taxes Consolidation Act (TCA) 1997 affords tax relief to people who set up a new business after 12 months of unemployment. New business in the context of the legislation is defined as a trade or profession which is set up and started by a qualifying person between 25 October 2013 and 31 December 2018.
The relief does not apply in circumstances where a trade or profession was previously carried on by another individual to which a person has succeeded or, where the activities were previously carried on as part of another person's trade or profession.
The person in question does not qualify for the relief because he started a business that was the same as had previously been carried out in the same premises, i.e. it was a trade ‘the activities of which were previously carried on as part of another person’s trade or profession’ . The fact that the premises may have been closed for a period of time does not alter the position.
Revenue has confirmed that it will make direct contact with the person to explain why he does not qualify for the relief. Revenue will also advise him on how to lodge an appeal with the independent Tax Appeals Commission, TAC, should he continue to be dissatisfied.
Tax Settlements
Ceisteanna (139)
John McGuinness
Ceist:139. Deputy John McGuinness asked the Minister for Finance if an appeal in relation to the tax affairs of a person (details supplied) will be determined without delay in view of the fact that the ability of the business to tender effectively is being affected; the rationale behind the decision to set the rate of RCT at 35%; and if he will make a statement on the matter. [37406/18]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that it is involved in discussions with the person in question and their tax advisor in relation to a number of issues that still require clarification.
Once the outstanding issues are fully resolved it will be possible for Revenue to further review the 35% RCT rate.
Revenue has also advised me that it is not aware of any Appeal awaiting determination in respect of the person’s tax affairs.