Skip to main content
Normal View

Tax Code.

Dáil Éireann Debate, Wednesday - 26 January 2005

Wednesday, 26 January 2005

Questions (273, 274, 275, 276)

Martin Ferris

Question:

337 Mr. Ferris asked the Minister for Finance the number of first-time buyers in 2004 who were exempt from paying stamp duty; the number who paid at the 3%, 3.75%, 4.5%, 7.5% and 9% rates, respectively; the amount of revenue raised in each rate for first time buyers; the number of first-time buyers who paid stamp duty at the lowest rate in Dublin in 2004; and the number who paid stamp duty at the lowest rate in Mayo in 2004. [34126/04]

View answer

Written answers

As the Deputy will be aware, I changed the stamp duty rates for first-time owner-occupiers of second-hand property in the 2005 budget, which was announced on 1 December 2004. The table below outlines the old rates which were applicable up to 1 December 2004 as well as the new rates as applicable on or after 2 December 2004. It also shows relevant information available regarding the number of transactions and the stamp duty yield relating to first-time buyers who paid stamp duty in 2004, as provided to me by the Revenue Commissioners:

Thresholds

First-Time Buyer Rate Pre-Budget

Number of transactions for First-Time Buyers (Pre-Budget)

First-Time Buyer Rate Post-Budget

Number of transactions for First-Time Buyers (Post-Budget)

Stamp Duty Yield for First-Time Buyers

€190,501 to €254,000

3%

3,970

Exempt

n/a

€26.7m

€254,001 to €317,500

3.75%

2,542

Exempt

n/a

€26.5m

€317,501 to €381,000

4.5%

1,069

3%

35

€16.4m (4.5%) €0.4m (3%)

€381,001 to €635,000

7.5%

Unknown

6%

16

€0.4m

As stamp duty rates for property transactions exceeding €381,000, up to 1 December 2004, and for transactions exceeding €635,000, on or after 2 December 2004, were the same for all purchasers, it is not possible to distinguish first-time buyer transactions from other transactions in excess of those values.

Statistics on stamp duty transactions are not compiled by reference to the address of the property purchased and, accordingly, it is not possible to provide the information requested by reference to counties. Particulars of transactions where no stamp duty applies are not normally captured. Accordingly, it is not possible to provide reliable information in relation to exempt categories.

Richard Bruton

Question:

338 Mr. Bruton asked the Minister for Finance if he will consider waiving VAT charges (details supplied); and if he will make a statement on the matter. [34171/04]

View answer

The position is that charities and non-profit groups are exempt from VAT under the EU Sixth VAT Directive with which Irish law must comply. This means that such organisations do not charge VAT on the goods and services they provide and cannot recover VAT incurred on their input costs. Essentially, only VAT registered businesses which charge VAT are able to recover VAT. There is no provision to waive the VAT charges in respect of production costs for the CD or cassette as referred to in the question.

Dan Boyle

Question:

339 Mr. Boyle asked the Minister for Finance if he will consider a joint study between his Department and the Department of Social and Family Affairs on the advantages of refundable tax credits over current direct provision of the family income supplement. [34210/04]

View answer

The issue of paying family income supplement through the tax system was considered in late 2002 by a working group established under the Programme for Prosperity and Fairness to examine the role which refundable tax credits can play in the tax and welfare system. The group was made up of representatives of the social partners and was chaired by my Department.

A perception existed at the time that the take up of the FIS scheme was low, that it was not reaching intended beneficiaries to the extent that it might and that payment through the tax and payroll systems might help in that regard. The take up of the scheme had peaked at about 14,700 at the end of 1999 but had subsequently declined to 11,700 at end September 2002. However, the examination undertaken suggested that some of the perceived disadvantages for eligible persons under the existing system, for example, the need to make an application to a State agency, could apply equally to FIS paid through the tax and payroll systems. The examination also suggested that it would probably not prove feasible to introduce a system whereby FIS would be paid automatically to eligible persons through the tax and payroll systems because of the complexities involved for employers and for the Revenue Commissioners.

I understand that since 2002, the numbers availing of the scheme have risen significantly. Average annual numbers of claimants for the years 2002 to 2004 are 11,716, 12,265 and 13,508, respectively. In the week ending 14 January 2005, there were 14,637 claimants. The improved take up may be due to a number of factors, including generous increases in FIS income thresholds over successive budgets, an increase in the minimum weekly FIS payment to €20, expansion of the economy and greater flexibility in working arrangements.

Having regard to the improved level of take up, I do not see that there is a pressing need to carry out a further examination along the lines proposed by the Deputy.

Bernard Allen

Question:

340 Mr. Allen asked the Minister for Finance if he will examine the case of a person (details supplied) in County Cork; and if the Revenue Commissioners will examine this person’s tax allowances. [34223/04]

View answer

I am advised by the Revenue Commissioners that they have written to the person concerned requesting details of all employments, any other sources of income and P60 forms. When the information requested is received, Revenue will review the person's tax credits and ensure that the taxpayer is subject to the correct tax deduction. Any overpayment of tax for earlier years will be refunded.

Top
Share