Seán Ó Fearghaíl
Question:52. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will consider extending the employment and investment incentive scheme beyond 2013; and if he will make a statement on the matter. [42226/12]
View answerEmployment Investment Incentive Scheme
Questions (52)
Written answers
The Employment and Investment Incentive, along with all tax reliefs and incentives are subject to regular review as part of the annual Budget and Finance Bill planning process. Any significant decisions taken by the Government in this regard are usually announced on Budget Day.
Tax Code
Questions (53)
Seán Ó Fearghaíl
Question:53. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he is considering proposals to bed down the research and development tax credit scheme; and if he will make a statement on the matter. [42227/12]
View answerWritten answers
I want to reassure the Deputy that there are no plans to remove the Research and Development (R&D) tax credit scheme. R&D and innovation are of vital importance in increasing economic activity in Ireland both in terms of domestic business sectors and in attracting Foreign Direct Investment, and this scheme forms an important part of Ireland’s corporate tax offering.
Financial Services Regulation
Questions (54)
Shane Ross
Question:54. Deputy Shane Ross asked the Minister for Finance the reason the Central Bank of Ireland did not advise clients of Custom House Capital of the problems that was brought to their notice so that the clients could have stopped investing with Custom House Capital; and if he will make a statement on the matter. [42234/12]
View answerWritten answers
I am advised by the Central Bank that where it was aware of information relating to client investments and had substantiated its concerns, it ensured that Custom House Capital advised affected clients and reviewed the information that was provided. I am further advised that in July 2011 the Central Bank received new information, previously unknown, which increased concerns regarding the integrity of client investments. The Central Bank, at that stage, sought the appointment of High Court Inspectors to fully investigate the affairs of the firm.
Financial Services Regulation
Questions (55)
Shane Ross
Question:55. Deputy Shane Ross asked the Minister for Finance the reason the Central Bank of Ireland should not compensate clients of Custom House Capital for moneys stolen from Pension Funds from March 2009 when they received information that Custom House Capital when not complying with the requirements of the Financial Regulator until July 2011 when they sought to seek the appointment of High Court Inspectors to investigate the affairs of the firm; and if he will make a statement on the matter. [42235/12]
View answerWritten answers
The compensation of investors is provided for in the Investor Compensation Act, 1998 and the investor compensation scheme is operated by the Investor Compensation Company Limited. There is no provision in legislation for the Central Bank to pay compensation in such circumstances. I am advised by the Central Bank that where it was aware of information relating to client investments and had substantiated its concerns, it ensured that Custom House Capital advised affected clients and reviewed the information that was provided. I am further advised that in July 2011 the Central Bank received new information, previously unknown, which increased concerns regarding the integrity of client investments. The Central Bank, at that stage sought the appointment of High Court Inspectors to fully investigate the affairs of the firm.
Financial Services Regulation
Questions (56)
Shane Ross
Question:56. Deputy Shane Ross asked the Minister for Finance if he will advise an increase in the compensation figure of €20,000 from the Investor Compensation Company Limited to €100,000 to match the guarantee for bank deposits; if they will backdate it to the same date for the introduction of the guarantee for bank deposits in order that clients of Custom House Capital can be compensated for the lack of supervision and regulation of the Financial Regulator / Central Bank of Ireland; and if he will make a statement on the matter. [42236/12]
View answerWritten answers
The basic requirements for investor compensation schemes are laid down in the EU Investor Compensation Directive, which has been transposed into Irish law as the Investor Compensation Act 1998. The Directive, including the level of compensation across the EU, is currently being reviewed by all Member States at EU level. A formal Commission proposal, published in 2010, is still under negotiation. The scheme currently in operation in Ireland, administered by the Investor Compensation Company Ltd., is funded from industry.
Tax Credits
Questions (57)
Michael McGrath
Question:57. Deputy Michael McGrath asked the Minister for Finance if he has given any consideration to the introduction of a tax credit for persons who are deaf similar to the blind person's tax credit; and if he will make a statement on the matter. [42238/12]
View answerWritten answers
Given the current budgetary constraints, I have no plans to introduce such a tax credit at this time.
Tax Code
Questions (58)
Joe Higgins
Question:58. Deputy Joe Higgins asked the Minister for Finance noting the Memorandum of the US Senate Permanent Sub-Committee on Investigations regarding US based multinational companies use of tax havens to avoid US taxes on profits derived from Intellectual Property and that Irish registered companies are central to this alleged tax evasion, if he will take action, including implementing recommendations of the Mahon Report to prevent Irish legal firms facilitating transparent tax evasion. [42253/12]
View answerWritten answers
The recently published report of the United States Senate Permanent Sub-Committee on Investigations of their hearing on Offshore Profit Shifting and the U.S. Tax Code gave prominence to the tax arrangements of two U.S. multinational corporations, both of which have operations in Ireland. The Report finds that U.S. multinational corporations are able to significantly reduce their tax liabilities by legal international tax planning arrangements - there was no allegation of fraud or evasion - and makes recommendations on how U.S. tax law could be improved. Ireland is not mentioned as a tax haven in the Report - and rightly so. The international community does not regard Ireland as a tax haven. Ireland has a comprehensive taxation system covering income, capital and indirect taxes. Tax Treaties with the United States and many other countries confirm our international standing. The January 2011 Global Forum Peer Review Report on Ireland’s legal and regulatory framework for transparency and exchange of information found that Ireland has an effective system for the exchange of information in tax matters and is fully compliant with OECD standards.
Ireland is bound by the same rules on State Aid, the Code of Conduct on Business Taxation, and rulings of the Court of Justice as all EU Member States. Ireland does not support harmful tax competition. Ireland continues to participate fully in the EU Code of Conduct Group, which addresses harmful tax competition, and in the OECD Forum on Harmful Tax Practices. The Mahon Report recommendations concerning the use of corporate vehicles for “corrupt purposes” do not appear to be relevant to circumstances where no fraud or evasion is alleged.