Dáil Éireann Debate, Tuesday - 12 July 2011
225 Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation when the next report of the high level group on business regulation is to be published; if he will outline the suggestions made by this group that have been implemented to date; if he will outline the savings to business that have been achieved by these suggestions; and if he will make a statement on the matter. [20103/11]
View answerThe High Level Group on Business Regulation was set up in 2007 to provide a fast-track mechanism for business to communicate specific, concrete red tape issues to the Government and follow through on their implementation. The Group works to identify the administrative burdens placed on businesses arising from regulation and to determine ways to reduce and simplify these burdens or eliminate them where they are unnecessary. The Group focuses mainly on the burdens on small and medium sized enterprises. To date, the Group has processed 48 red tape issues brought to its attention by business, and is continuing to seek practical solutions to a further 20 issues. Details of these 48 items at set out in Appendix A. In addition to this work, the High Level Group was involved in validating the administrative burdens identified with my Department in 2009 and 2010 as part of the target to reduce administrative burdens by 25% by 2012. My Department has already reduced measured burdens by 22%, or 90% of the target to be achieved, which represents an annual saving of almost €187 million for business. Details follow at Appendix B.
I expect I will be in a position to announce the initiatives that will make up the remaining 3% before the end of the year. Some of these reductions are as yet potential savings. Making them real savings requires businesses to adopt these newer, more simplified approaches that have been made available. All firms are encouraged to ensure they gain the full benefit of this work by reading the guidelines provided, and adopting the low cost options. There is no requirement for the High Level Group on Business Regulation to publish annual reports, although two reports have been published since 2007. In the future, updates on the work of the High Level Group will be published via the Department's website.
|
No |
Suggestion |
Status |
Savings |
|
1 |
CRO — Revenue — Electronic Signature |
Processed — The CRO has made the ROS signature available on all electronic forms from the end of 2010. |
€3.8m |
|
2 |
D/ETI — Employment PermitsThe documentation required to be granted a work permit in the first place must also be sent each time that permit is being renewed. Reduce the administrative burden associated with this |
Processed — The new back-office IT system has been completed. The significantly updated back office system was introduced on 1 November 2010. |
Not measured |
|
3 |
D/ETI — D/Justice- Employment Permits Applications and VisasThere is no communication between the Department of Enterprise, Trade and Employment and the Department of Justice and therefore, employers must contact both Departments to check the validity of student visas or residency stamps |
Processed — The working group was reactivated in 2010 to renew the examination of possible proposals for a single decision process, and to issue an interim report in 2011. |
Not measured |
|
4 |
CSO — Revenue —reduce duplicationMore use must be made of data content already submitted [to Revenue] |
Processed — There is ongoing constructive engagement between Revenue and the CSO regarding the enhanced use of Revenue’s administrative data for statistical purposes. |
Not measured |
|
5 |
D/ETI — Redundancy rebates— processing difficulties.Application processing times unacceptable. |
Processed — delays reduced — The treatment of Revenue offsets between the Department and Revenue have been standardized and Revenue has provided a standard form for completion on their website to facilitate offsets against redundancy rebates. |
€1.2m |
|
6 |
Consolidate CSO returns |
Being processed — This process is part of a wider integration process, integrating both short-term and structural datasets. |
Not measured |
|
7 |
CSO — questionnairesCSO should amend questionnaires to align more closely with company accounts |
Being processed — CSO is getting assistance from an accountant with this endeavour. When redesigned forms are complete it will seek the opinion of the High-level Group. It should be noted that in most cases the contents are not negotiable, in that CSO, on behalf of Ireland, is obliged to compile data (under EU law) to a strictly defined standard. |
Not measured |
|
8 |
Revenue — technical adjustmentsRevenue should develop the concept of “technical adjustments” whereby tax can be paid late without penalty or interest in the case where a transaction has been handled incorrectly in error |
Processed — Revised Code of Practice published, effective from October 1st, 2010.A technical adjustment will not attract a penalty where Revenue is satisfied that due care has been taken by the taxpayer, and the treatment concerned was based on an interpretation of the law, which could reasonably have been considered to be correct. |
Not measured |
|
9 |
Revenue — D/Finance — Withholding taxAbolish [Professional Services] withholding tax |
Processed — not possible |
NIL |
|
10 |
Revenue — D/Finance — D/Justice — Sales/Retail LicencesReduce the administrative burden associated with these.With regard to the licensing of mineral oil, off-licences, wine and video, every year at renewal date the licence must be reapplied for and must be signed by the Company Secretary or Director. It has been suggested that, in order to improve efficiency, the requirement to fill in new forms would only apply if some element of the licence changed. Furthermore, it has been suggested that licence periods should be increased to 3 or 5 years |
Processed — Revenue’s role in relation to Excise Licenses is essentially administrative and, within the parameters of the existing law with effect from 29 June 2009, considerable streamlining has been applied to the Excise Licence application and renewal process. These developments reduce the administrative burden associated with Excise Licence obligations for up to 40,000 licence holders. All licence renewal forms have an automatic Tax Clearance facility applied to them and it is also possible for licence holders to renew and pay for their licence using the Revenue On-line Service facility. These developments have considerably improved excise license processing efficiencies. 67% of liquor licenses were renewed in October 2010, the peak period for liquor license processing, compared to 47% in October 2008. |
Not measured |
|
11 |
D/EHLG — Waste Collection PermitsNew regulations now allow waste collectors to apply for a single permit from one designated authority. |
Processed — being measured |
Being measured |
|
12 |
D/EHLG — Business User ForumsSmall Business Forum Report recommended the establishment of a “Business Users Forum” in each Local Authority in order to improve consultation and responsiveness to businesses. Have these been established? |
Processed — Each county/city council has established a Business Support Unit (or similar arrangement) to act as a point of contact for businesses to ensure co-ordinated response (e.g. planning, water and roads).County/City Councils have recently been asked to expand representation from the business sector (e.g. the local Chamber of Commerce, IBEC/Small Firms Association etc.) on the County/City Development Boards’ economic development subcommittees to enable them to act as Business Users Fora to improve consultation/responsiveness by local authorities and other relevant agencies to local businesses. |
Not measured |
|
13 |
D/SFA — PRSI classes and GuidanceCombine PRSI and Tax data for employees: PRSI classes should be simplified and clear guidance provided to employers; this should be combined with tax rates on the tax card. |
Processed — During 2010 a Steering Group, led by the Department of Finance, examined the universal social contribution proposal. The Steering Group discussions were informed by issues such as simplification of PRSI. Any changes to the PRSI system would be a matter for Government to consider in a Budgetary context. |
NIL |
|
14 |
D/ETI — RBE and CBIExamine risk-based enforcement in HSA, ODCE, and NERA. Benchmark against Revenue |
Processed — Report issued by Risk Based Enforcement Group |
Not measured |
|
15 |
D/ETI — Public Procurement(i) “Standardising tender documents across Departments and Local Authorities would reduce the administrative burden on businesses”;(ii) “Tenders should be acceptable in electronic format”;(iii) “Capping indemnity would reduce the cost of projects”;(iv) “Consider the sharing of Intellectual Property rights between public bodies and successful tenders”;(v) “Simplification of tendering procedures for SMEs”;(vi) “Stop increasing bureaucratisation of public service tendering, e.g. notarised documents are now being increasingly required at Expression of Interest stage and should only be required of someone who has actually won a tender and is about to sign a contract.” |
Processed — New Guidelines and website launched by NPS on 14/4/2011 |
Not measured |
|
16 |
CRO/XBRL |
Collaboration with the CSO and CRO will continue to ensure optimum cross-regulator value can be obtained from the XBRL filings; Revenue will implement XBRL for ROS filing by 2012. Revenue is working closely with the CSO and other agencies to ensure overall compatibility |
Not measured |
|
17 |
Revenue — RCTThe process regarding Relevant Contracts Tax should be simplified and a Regulatory Impact Assessment (RIA) carried out |
Revenue is implementing an eRCT facility, which will be available in 2012. |
Not measured |
|
18 |
CSO — Annual Services EnquiryThe detailed information which you require in this form could not be supplied by a small business person “Auditors services were hired to extract the relevant information from end of year accounts.Structures should be put in place to obtain data already held by Revenue and the CRO |
CSO have taken sole traders off the ASI list — only 4 of the variables they require are available from Revenue data and they have introduced an ASI for small business which is quite basic in its request for information. |
€2m reduction in all surveys since 2007 |
|
19 |
CRO-Revenue Annual ReturnsCRO and Revenue are working together to find ways of reducing duplication of data submitted |
An information note has been produced by CRO to help companies who wish to change their Annual Return Date (ARD) and can be found at Paragraph 7 “How does a company alter its ARD” of Information Leaflet No. 22, “Filing an Annual Return in the CRO” which can be found at http://www.cro.ie/en/downloads-information-leaflets.aspx. |
€28m |
|
20 |
D/ETE — Weekly Work MaximumConsideration to be given to averaging the weekly work maximum over 12 months |
The European Commission, who first tabled proposals for an amending Directive, will reflect on the unsuccessful conclusion to Conciliation and consider the next steps. |
NIL |
|
21 |
D/ETE — HSA— Health and Safety Sectoral Codes and Step-by Step GuidesThe Health and Safety Authority should issue new sectoral codes in plain language for small companies, outlining a step-by-step guide to the safety statement and other H&S issues. |
This is an area of ongoing work for the Health and Safety Authority. A number of guides and guidelines have already been produced — the various Safe Systems of Work Plans (SSWP); Codes of Practice under the Safety, Health and Welfare at Work Act 2005; further Guidelines, Checklists and a Toolkit for Small Business on the “Simple Safety” series.The BeSMART tool has also been produced which is likely to bring savings of at least €64m per annum |
BeSMART and other initiatives to save business €106m per annum |
|
22 |
CSO Point of ContactEach Department should have a liaison officer as a point of contact with the CSO. |
The CSO DG has written to Government Departments. Nominations for Liaison Officers have been received. |
Not measured |
|
23 |
CSO Quarterly Earnings SurveysReduce the administrative burdens associated with this activity |
The Earnings, Hours and Employment Costs Survey (EHECS) is the main quarterly survey on earnings and employment costs in businesses. The CSO plans to reduce the sample size of this survey. This will result in a reduction in the number of small enterprises included in the sample and will therefore reduce the overall burden on business. The reduced sample size came into effect from the Q2 2009 reference period.The CSO has worked with a number of payroll software providers in modifying their software to meet the requirements of the EHECS. The modified software enables businesses to automatically generate reports in response to the survey. Once the initial set-up has been done, use of this software should result in significant reductions in burden for businesses. The software is currently available from software providers. |
Not measured |
|
24 |
CSO— Vehicle Destinations FormCSO form on vehicle destinations very onerous |
The EU largely determines the data required. Given the increasing demands for spatial-transport data in general and freight data in particular it is very difficult to see any way of cutting back in this area. |
NIL |
|
25 |
CSO — ASICSO: why is Annual Services Inquiry necessary in addition to quarterly surveys |
ASI data collection is governed by a number of EU regulations.Further, a new overarching piece of legislation concerning structural business statistics has recently been passed by the European Council and should come into effect this year. This legislation will increase the data demands that Ireland is required to provide to the European Commission and the European Central Bank. |
NIL |
|
26 |
CSO — ProdcomProdCOM form does not take account of format in which data is held |
Requirements of ProdCOM are defined by an EU Council Regulation. |
NIL |
|
27 |
Revenue-Revenue WebsiteTechnical guidance available on the Revenue website should be time-stamped and obsolete content removed |
A new version of the website was launched in December 2008. The new website has been designed to make accessing information and services as easy and intuitive as possible. Information and services are now gathered in logical clusters under the primary headings: Personal Tax; Business & Self Assessment; Tax Practitioners; Customs; Taxes & Duties; and Online Services. The content is extensively cross-referenced and navigation and search facilities have been substantially improved. Work is ongoing on the updating of duty and tax manuals. |
Not measured |
|
28 |
Revenue-D/Finance-VAT Returns(i) Paying VAT on a monthly or two-monthly basis causes problems for firms’ cashflow.(ii) Revenue are the only people who always get paid; can Revenue allow more time;Dealing with this on a cash receipts basis is a simple solution(ii) Abolish VAT on an accruals basis |
Revenue(i) In 2007, Revenue introduced less frequent filing of VAT3 returns for small traders. Cases whose annual VAT liability is €3,000 or less per annum, now file VAT3 returns twice a year. Cases whose annual VAT liability is between €3,001 and €14,400 per annum, file VAT3 returns three times a year. The changes currently benefit over 90,000 traders. Revenue regularly reviews the VAT liability of cases, examines its customer base and transfers traders to the less frequent filing programme where eligibility criteria are met.(ii) There are approximately 65% of traders currently accounting for VAT on the Cash Basis. A person or business applying for VAT registration who wishes to use the Cash Basis rather than the Invoice Basis must apply at the time of registration, in writing, for permission. Alternatively, application may be made to the local Revenue District subsequently, again in writing, to change from the Invoice Basis to the Cash Basis. If a trader is found to be eligible for the Cash Basis he/she will be notified of the date from which the accounting procedures have changed. The trader will be liable to account for VAT on all cash received on and after the approved date of change, but will not have to account for sales for which he/she had already accounted while on the Invoice Basis.Revenue has recently reiterated its long-standing message to business that there should be an early and full engagement with Revenue when problems start to emerge in meeting tax payment obligations. Revenue’s approach to individuals and businesses experiencing tax payment difficulties is set out on our website www.revenue.ie 1. D/Finance(ii) Many small businesses already avail of the cash receipts basis of accounting for VAT.Anything that improves firms cashflow situation in relation to the payment of tax, disimproves the Exchequer’s cashflow situation.The proposal is already in place for many SMEs. VAT is normally accounted for on the basis of invoices issued regardless of whether of not the trader has been paid for the supply in that period. However, SMEs with an annual turnover of €1million or less can avail of the cash basis of accounting which provides traders with the option to account for VAT on a cash receipts basis. This means that the trader is not required to pay VAT until payment for the supply is actually received. The VAT cash accounting option assists a significant number of firms and focuses in particular on small firms in the critical area of cash flow.The manner and frequency of VAT returns is determined by EU VAT law, with which Ireland must comply. In this context, cash-basis accounting arrangement cannot be used to replace the normal VAT arrangements across the board. |
€5.4m |
|
29 |
Revenue—VAT Issues (a)Existing compliance records should be recognised when VAT registration applications are made |
• The customer service standard that applies to VAT registration is 100% within 10 working days.• The standard for other registrations is 100% within 5 working days.• Issues regarding delays experienced are examined when raised with Revenue. |
Not measured |
|
30 |
Revenue—VAT Issues (b)Simplification of the revenue system is necessary in some cases; e.g. S4A relief. This relates to delays with the VAT registration process and possible inability to avail of S4A shift |
The Section 4A Relief referred to in the suggestion has been repealed. |
Not measured |
|
31 |
Revenue—VAT Issues (c) The process for handling requests for tax registration and VAT numbers should be improved. Registrations applied for by accounting firms should be fast-tracked; account should be taken of due diligence already undertaken under money-laundering regulations, etc |
The e-registration project has been deferred due to budgetary constraints. |
NIL |
|
32 |
Revenue — Visits to Start-up BusinessesRevenue visits to start up businesses should be re-instated |
Revenue cannot commit to visiting every new business. However Revenue is willing to support new start-ups with information sessions, etc. ROS marketing, District, and Collector General staff regularly attend conferences aimed at business groups (either organised by Irish Taxation Institute, Local Enterprise Groups, etc) in order to deliver our key message. Revenue also supports and liaises with IPASS/Payroll clerks, MABS, Citizens’ Information, etc.Revenue regularly attends conferences (e.g. ITI and Local Enterprise Group, meets with agents, payroll association etc. Further, it has a stand at the Ploughing Championships every year that deals with a significant volume of enquiries. |
Not measured |
|
33 |
Revenue — Reward for use of ROSCompanies should be rewarded for use of ROS. There should be incentives for using the on-line tax system; e.g., by way of a one month extension |
• Phased implementation of mandatory e-filing commenced from 1 January 2009.• As an incentive to encourage the take up of ROS services, with effect from 1 January 2009 the dates for paying and filing RCT, PREM, VAT and CT via ROS have been extended to the 23rd day of the month (in comparison with paper filers which have filing dates of the 14th (RCT, PREM), 19th (VAT) and 21st (CT), respectively). |
Not measurable |
|
34 |
Revenue-TariffsOral information by Revenue in respect of tariffs should be prohibited; only written information should be permitted |
Staff in Revenue’s Customs Division receive telephone queries on an ongoing basis and are generally in a position to give an opinion as to the correct classification based on the information provided by the trader. This is a valuable customer service and is of considerable assistance to traders despite the fact that on rare occasions an opinion delivered in this way and without sight of the goods may prove to have been incorrect. For this reason, it is standard practice to caution traders that this is not an appropriate mechanism where doubt exists or greater certainty is required.Where the classification is unclear or where a trader requires a greater degree of certainty as to their exposure to duty, there is a facility known as Binding Tariff Information (BTI). The BTI process is explained on their website2 |
NIL |
|
35 |
D/Finance-Revenue—Tax Clearance Certs Ensure that all public sector organisations accept online TCCs |
Revenue:In 2003, Revenue introduced a TCC on-line verification facility as a customer service initiative to expedite contract and payment processing by public bodies. The facility allows public bodies and applicants to view a current TCC on line, with the permission of the applicant, through the use of a tax number and PIN number supplied by Revenue to the applicant. Revenue issued a letter to all Government Departments in December 2007 to increase the awareness of the availability of the on-line TCC verification facility among public bodies. In addition the TCC on-line application and on-line verification facility is prominently positioned on the home page of Revenue’s redesigned website.The e-Tenders website guidelines have now been revised to include information on the online verification system.D/Finance: Will further promote this measure in public procurement guidance. |
€300,000 |
|
36 |
D/EHLG—Risk-based Enforcement in the Waste SectorEnforcement should be risk-based. |
Under the implementation of the RMCEI-EU recommendation on inspections-local authorities and the Office of Environmental Enforcement now carry out risk-based inspections. |
Not measured |
|
37 |
D/EHLG-Coordination between Waste Sector RegulatorsThere should be better co-ordination between regulators across the whole waste sector. |
This is being done. |
Not measured |
|
38 |
D/EHLG-EPATarget for Reduction of Administrative BurdensThe EPA should consider setting an overall target for reducing the regulatory burden on businesses in Ireland; as in Denmark and the UK |
To be pursued by the High-Level Group, Department of the Environment, Heritage and Local Government and the EPA in the context of the overall Government 25% reduction target. |
Not measured |
|
39 |
D/Transport— HGV Cordon PermitsHGV cordon permits in Dublin city must be applied for daily. Can this not be made weekly, monthly or annually? Often the vehicles using the cordon are making regular and frequent known trips to city centre retail premises |
The HGV Strategy has been very successful at reducing the number of HGVs in the city while still allowing city centre business to operate, at this point Dublin City Council would be reluctant to change the way the system operates, however, they are prepared to meet with any interested parties to discuss how the system could be made easier to use, while not compromising its effectiveness.Changes to the current system would undermine the policy objectives underpinning the HGV Cordon Permits system.Any further relaxation of administrative requirements in this area has the potential to run counter to the stated policy objectives of the HGV Management Strategy. |
NIL |
|
40 |
D/Taoiseach—Regulatory Impact Assessments & Administrative BurdensRIAs are very important; they need proper attentionDFurther progress needs to be made in relation to RIA, in particular in relation to the issues of quality and publication |
Ongoing engagement with Departments through the RIA Network and through the RIA Helpdesk will help to address both quality and publication issues. Revised RIA Guidelines are available at http://www.betterregulation.ie/eng/Revised_RIA_Guidelines.pdf. Comments made by business and other stakeholders on published RIAs and queries as to why RIAs have not been published should also be effective in driving improvements. |
NIL |
|
41 |
D/Transport—Road Haulage PermitsThe Road Safety Authority plans to introduce a centralised permit system for the movement of wide and long loads |
The Minister for Transport made new Regulations that came into operation on 4th May 2009. These Regulations introduce a streamlined permit system to be administered by An Garda Siochana for the movement of wide and long vehicles on the major interurban routes and to Cork, Ringaskiddy and Rosslare Ports. |
Not measured |
|
42 |
D/SFA—Social Welfare(i) Claimants say they are being told not to take up jobs until social welfare paperwork, currently running 4 weeks behind schedule, is completed(ii) Form-filling around short-time is onerous; and employer normally ends up doing most of this work(iii) What are Directors’ rights as employees in cases of liquidation in regard to PRSI; can they claim redundancy?; this is a grey area; need a set of clear guidelines |
(i) Those who take up work before their jobseekers’ claim is processed will be paid any outstanding payments up to the date of the commencement of any period of employment.(ii) The requirement that an employer individually stamp weekly payment dockets for customers working on a casual or short-term basis has been removed.The number of forms to be completed has also been reduced.(iii) In relation to redundancy payments only those directors who have been insurable at Class A, i.e. employees of the company, will have redundancy entitlements. |
NIL |
|
43 |
D/SFA—Short term working rulesShort-time working rules currently don’t allow people work 4 days; this should be allowed |
The application of the jobseekers payment scheme conditions to workers who are not employed on a full-time basis is being kept under review. |
NIL |
|
44 |
D/ETE—Single WindowForfás and Jacobs & Associates have carried out a study of the administrative costs of importing and exporting in Ireland |
The Forfas report concludes that the cost/benefit of proceeding with a single window does not support further action at present. The study found that businesses consider the administration around importing and exporting to be relatively straightforward. |
NIL |
|
45 |
D/EHLG—Widening the Scope of EnforcementThe scope of enforcement needs to be widened beyond regulated facilities and collection services if the perception of sham regulation or paper regulation is to be avoided |
To be kept under review. |
NIL |
|
46 |
CSO—Reduction of EU requirementsNegotiate reduction in EU statistical requirements. |
This is not a realistic objective. The CSO already does all it can, in a European context, to influence the reduction of burdens on business. Furthermore, national users are demanding the same broad data. |
NIL |
|
47 |
D/ETE-Revenue—Redundancy Rebates Offset against Tax LiabilityAny employer who has made staff redundant could offset the 60% refund due to them against any tax liability which arises, whether PAYEConsider the addition of a tick-box on the original RP50 form, to authorise DETE to pay Revenue directly |
Under Redundancy legislation, a rebate is paid to the employer in instances where the employer has paid his employee(s) their statutory redundancy lump sum. It is very important therefore that the paying authority, tangible evidence that the employer is in agreement with having the rebate cheque made out instead in favour of the Revenue Commissioners. The only real evidence for this is a letter from the company. Even if, in IT investment terms a tick box solution was possible, it is unlikely that this would provide sufficient cover legally as anyone could tick a box on a form. There is also, quite apart from the issue of legal cover or that of IT investment involved, the fact that it is too late for the applications already in the system for which the offset option would be most at issue as these applications are already lodged. Overall, the requirement which was born out of a need to facilitate employers, of sending a letter and cc’ing this to Revenue, would not appear to be over-onerous. Any counter measure to be developed — be that IT related or otherwise — would potentially work to the detriment of employers in terms of imposing further delays in the Redundancy processing area. Revenue Update 2010 Where a business/individual is awaiting a statutory redundancy rebate and has particular difficulties in meeting their tax obligations because of a delay in receiving the payment, Revenue has put in place an arrangement where the business/individual provides authorization for payment of redundancy rebate direct to Revenue.The Redundancy Rebate arrangements are available on Revenue’s Website at http://www.revenue.ie/en/about/foi/s16/collection/debt- management/redundancy-rebates.pdf. |
€1.2m |
|
48 |
CSO—Revenue — VIESReduce (EU) VIES (VAT) frequency of returns. |
The VIES return has a critical part to play in the fight against VAT fraud. The EU Council adopted a Directive, effective from 1 January 2010, which increases the frequency of some VIES returns, i.e. monthly returns are now required from a trader whose intra-Community supplies of goods in any quarter exceeds €100,000 (threshold will be €50,000 from 1 January 2012). Over 1,700 traders have changed from quarterly to monthly filing and the majority file electronically using Revenue’s On-line System (ROS). Revenue is continuing to encourage those who file paper returns to file via ROS. In addition, there is a new requirement for a trader who supplies services to business customers in other Member States to file VIES returns on a quarterly basis from 1 January 2010. The implementation of this requirement is progressing on time with over 600 traders currently registered. |
Not measured |
