Written Answers Nos. 169-191
170. Deputy Pearse Doherty asked the Minister for Finance the point at which a person starts paying the universal social charge in annual income terms; and the cost to the State of taking all those earning the minimum wage out of the USC band. [45998/12]
View answerThe current minimum wage is €8.65 per hour. On an annualised basis, this is equivalent to €17,542 assuming a 39 hour working week. I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2013 incomes, of increasing the existing exemption threshold of €10,036 per annum for the Universal Social Charge (USC) to €17,542 per annum would be €131 million. This figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and may be revised.
171. Deputy Stephen S. Donnelly asked the Minister for Finance if he will calculate the return to the Exchequer of a 50% flat rate of tax on gambling profits, including lotteries and sweepstakes; and if he will make a statement on the matter. [46112/12]
View answerI am informed by the Revenue Commissioners that the relevant information available on the amount of gross income earned from gambling and betting activities is based on personal income tax returns filed by non-PAYE taxpayers and information on profits derived from corporation tax returns for the year 2010, the latest tax year for which the necessary detailed information is available. The estimated full year yield from applying a 50% flat rate of tax to the gross income from all sources returned by self-employed individuals engaged in these activities would be of the order of €14 million. If the 50% tax is intended to replace the existing liability to income tax the net yield would be approximately €10 million.
The corresponding full year yield from applying a 50% flat rate of tax to the trading income returned by companies engaged in these activities is estimated at €54 million. If the 50% tax is intended to replace the existing liability to corporation tax the net yield would be approximately €44 million. Figures are rounded to the nearest million. It is assumed that none of the tax credits, reliefs or deductions that are normally allowable under the rules of income tax and corporation tax would be allowed in applying the flat rate of tax.
The sector identifier used on the tax records is based on the 4 digit “NACE code (Rev. 1)” which is an internationally recognised economic activity code system. The NACE codes are not essential for the assessment and collection of taxes and duties and the correct allocation and maintenance of these codes is subject to the limit of available resources. NACE code classifications on tax records are compiled by reference to the primary area of economic activity reported by individual and corporate taxpayers on their own behalf and the taxes collected are allocated to those codes without reference to the precise economic activity which generated them.
While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analyses there will undoubtedly be some inaccuracies at individual level. This should be borne in mind when considering the information provided. The sectors identified for this reply represent the closest equivalents in the NACE code system to the sectors mentioned in the question.
172. Deputy Pearse Doherty asked the Minister for Finance if he will set out the fees that are typically obtained in a new issuance of €500 million of three month treasury bills by the National Treasury Management Agency, including legal and dealer fees. [46128/12]
View answer173. Deputy Pearse Doherty asked the Minister for Finance if he will set out the fees that are typically obtained in the redemption of €500 million of three month treasury bills by the National Treasury Management Agency, including legal and dealer fees. [46129/12]
View answerI propose to take Questions Nos. 172 and 173 together.
As the Deputy is aware the National Treasury Management Agency (NTMA) are implementing a strategy to re-enter the capital markets which involves the issuance of short-term bills. NTMA completed an auction of Irish Treasury Bills on 18 October 2012 selling the target amount of €500 million. Total bids received amounted to €1.8 billion which was 3.6 times the amount on offer. The Treasury Bills, which have a maturity of three months, were sold at an annualised yield of 0.70%. I am advised by the NTMA that there are no legal or dealer fees on top of the actual annualised interest rate paid on Irish Treasury Bills, either upon issuance or redemption. Relatively minor transaction settlement costs are paid to an intermediary bank, to cover the cost of settling Treasury Bills sold to the Primary Dealers through whom the Agency markets Irish government debt.
174. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the remaining programme funding to be provided to the State by the International Monetary Fund pursuant to its €22.5 billion funding commitment; if he will provide an estimate of the annual interest rate that will apply to the remaining programme funding yet to be provided by the IMF. [46130/12]
View answerTo date the International Monetary Fund has disbursed XDR* 15.79 billion, which is equivalent to €18.12 billion received by the Exchequer. The overall commitment is for €22.5 billion and this will continue to be disbursed on a quarterly basis until the programme ends at the end of 2013. Current market rates (which do not represent a forecast but rather market expectations) and assumed surcharges adjusted for the expected quota change, suggest that the total cost of funds on remaining IMF disbursements will be in the region of 4% over the standard 7.5 year weighted average life.
* Special Drawing Rights
175. Deputy Pearse Doherty asked the Minister for Finance if he will provide an assessment of the savings that the State could make if it were to substitute the remaining programme funding yet to be provided by the International Monetary Fund with open market funding from the issuance of debt by the National Treasury Management Agency at current market rates. [46131/12]
View answerThe National Treasury Management Agency (NTMA) and my Department keep all aspects of the international markets under review. I am advised by the NTMA that, at current market rates, there would be no savings to the State by the substitution of open market funding raised by them (the NTMA) versus debt raised through the International Monetary Fund, done on a like-for-like basis.
176. Deputy Clare Daly asked the Minister for Finance his view on the fact that as some or all of the recapitalised banks were trading while insolvent, and were therefore in breach of the statutory obligations under Company law and otherwise, the actions that have been taken or are being taken with respect to such banks and the personnel involved. [46253/12]
View answerAs the Deputy will be aware, the Irish banks were required to raise €24.0bn in capital following the 2011 Prudential Capital Assessment Review (PCAR) in order to remain above a minimum capital target of 10.5% Core Tier 1 in the base scenario and 6% Core Tier 1 in the stress scenario. There are a number of tests for solvency set out in company law. These solvency tests must be distinguished from the requirements of PCAR (which tests capital adequacy). The concept of trading while insolvent is one of company law while the PCAR is a test which set down by the Central Bank. It is not the case that a bank which does not meet a capital adequacy requirement is automatically trading while insolvent. While the recapitalised banks required fresh capital to meet the various capital adequacy requirements set by the Central Bank it is not the case that those banks were trading while insolvent. Enforcement action in respect of breaches of company law are a matter for the Office of the Director of Corporate Enforcement.
177. Deputy Clare Daly asked the Minister for Finance in the context of the principle of equality before the law as a corner-stone of the constitution, if he will explain the way it is compatible with that Constitutional provision that mismanaged and insolvently operating banks were and are treated preferentially over and above other financially distressed private companies, businesses and persons; and the factors that make a private commercial bank different in nature to other private companies for the purposes of securing a bail-out courtesy of taxpayers. [46254/12]
View answerAs the Deputy will be aware the banks were not and are not trading while insolvent and the constitutional concept of equality (as per Article 40 of Bunreacht na hÉireann) relates to equality between citizens (as human persons). Government must make decisions for the common good and in this case, the State has agreed to provide the necessary support to the banks in order for them to continue to operate and fulfil their crucial role in the Irish economy.
178. Deputy Clare Daly asked the Minister for Finance with regard to the Central Bank of Ireland, the persons who owns and are shareholders in same; if it is State owned, privately owned or a combination of both; the names and details of directors and principal shareholders of the Central Bank, whether private individuals, corporations or otherwise; the persons who appoint the shareholders and directors; if owned and operated on behalf of the State, the persons who carry out this remit; the way such directors and shareholders appointed and to whom and in what manner are they accountable. [46255/12]
View answerThe Central Bank of Ireland is a statutory body; it was established in 1942 in accordance with the Central Bank Act 1942 and is now a constituent part of the European System of Central Banks (ESCB) established by European treaty. It is managed and controlled by the Central Bank Commission. The Minister for Finance is the sole subscriber to and holder of the Central Bank's capital. The Central Bank's surplus income is payable to the Exchequer in accordance with regulations made in accordance with section 32H of the Central Bank Act 1942.
The ex officio members of the Central Bank Commission are the Governor and the Secretary General of the Department of Finance, appointed by the Government; the two Deputy Governors, appointed by the Central Bank Commission and between 6 and 8 ordinary members appointed by the Minister for Finance.
The current members of the Commission are: The Governor, Prof. Patrick Honohan; The Deputy Governor (Central Banking), Mr. Stefan Gerlach;The Deputy Governor (Financial Regulation), Mr. Matthew Elderfield; The Secretary General, Department of Finance, Mr. John Moran; Mr. Michael Soden; Mr. Alan Ahearne; Ms. Blanaid Clarke; Prof. John Fitzgerald; Mr. Des Geraghty. In accordance with section 32L of the Central Bank Act 1942 (as amended by the Central Bank Reform Act 2010), the Central Bank submits a performance statement annually to the Minister for Finance which is then laid before the Houses of the Oireachtas. The Central Bank is independent in the exercise of its functions but the Governor and the Deputy Governors may be required to appear before committees of the Houses of the Oireachtas to address certain matters, including the Bank's annual regulatory performance statement.
179. Deputy Clare Daly asked the Minister for Finance in relation to default insurance on banking loans, if this is normal practise; if there is a legal regulation or any rule of enforcement stating that a bank must insure its loans against default; with whom is this insurance policy in place; if there is any legal regulation for financial institutions and banks to retain a provision fund or deposit account to clear defaulted loans; if yes, what is the regulation, if no, is it common practice to set up such accounts regardless and time limit within which a bank must clear defaulted loans. [46256/12]
View answerI am advised by the Central Bank, that there is no requirement on financial institutions, legal or otherwise, to avail of such insurance. International accounting rules that apply to financial institutions dictate that financial institutions provide for bad or doubtful debts. Carrying these loans with a provision against them for the expected loss provides leeway for the distressed borrower to regularise their situation and may result therefore in the financial institution recovering more than had been provisioned for.
In 2011, the Central Bank of Ireland published Impairment Provisioning and Disclosure Guidelines in relation to the development and application of impairment provisioning frameworks. The paper sets out the policies, procedures and disclosures which institutions should adopt for their loan asset portfolios which are subject to impairment review in accordance with International Accounting Standards. These guidelines are available on the Central Bank website.
180. Deputy Clare Daly asked the Minister for Finance with regard to general issues around bank license necessary for operation here, where copies of the licenses, and licence conditions under which banks function, are available; if licence conditions for non-Irish banks operating here are different than domestic banks; if it is possible to trade as a bank without a licence; the person responsible for monitoring compliance with licence conditions; the legal consequences for banks and their customers of a breach of license conditions; if agreements entered into while a bank is operating in breach of one or more conditions of its licence are legally binding; if a bank selling loans and mortgages while insolvent is in breach of the conditions of its licence; the date on which the review of licence conditions took place; where copies of the banking licences of those banks now technically in public ownership are available to members of the Oireachtas for examination. [46257/12]
View answerThe Central Bank is responsible under statute for issuing bank licences and subsequently regulating the compliance of credit institutions with conditions imposed on their respective licences. As Minister for Finance I would have no role in reviewing licence conditions imposed by the Central Bank in its regulatory capacity. I have been informed by the Central Bank that it does not comment on the individual licence conditions imposed on specific credit institutions and that once a licence is issued it becomes the property of the relevant credit institution and thus the Central Bank retains no right to publish copies. Copies are kept by the Central Bank but they are not available for examination. However, pursuant to Section 12(1) of the Central Bank Act 1971, the Central Bank publishes a full list of authorised credit institutions and their status on its website.
The Central Bank does not impose any general restrictions on foreign credit institutions operating in Ireland. However, the Central Bank has the power to impose specific licence conditions on any domestic or foreign credit institution licensed to operate in Ireland. Each individual application for a licence is considered and treated on an individual basis to determine which conditions will apply.
Section 7 of the Central Bank Act 1971 (as amended) provides that ‘Subject to the provisions of this Act, a person, other than a Bank, shall not, in or outside the State, carry on banking business or hold himself out or represent himself as a banker or as carrying on banking business or on behalf of any other person accept deposits or other repayable funds from the public, unless he is the holder of a licence’. Under section 58 of the Central Bank Act 1971, contravention of section 7 is an offence. Therefore it is not possible to operate as a bank in the absence of a licence without committing an offence.
The Central Bank is responsible for monitoring whether or not credit institutions are complying with any conditions imposed on their respective licenses. Credit Institutions are also responsible for monitoring their compliance with licence conditions and reporting any breaches to the Central Bank.
The Central Bank may impose conditions on the licence of a bank pursuant to section 10 of the Central bank Act 1971. The failure by a bank to comply with a condition which the Central Bank has imposed is a serious matter as reflected in the consequences of such a failure, these include:
a) section 58 of the Central Bank Act 1971, provides that the contravention of such a condition is a criminal offence and may, on summary conviction, lead to a fine not exceeding €1,270 or to a imprisonment for a term not exceeding 12 months or both or, on conviction on indictment, to a fine not exceeding €63,500 or to imprisonment for a term not exceeding 5 years or both;
b) The Central Bank may utilize its administrative sanctions powers under section 33AQ of the Central Bank Act 1971 which could expose the bank to a sanction of €5,000,000.
c) Furthermore, the Central Bank (Supervision and Enforcement) Bill 2011 provides that such a sanction may include suspension or revocation of a banking licence.
Section 11 of the Central Bank Act 1971 sets out the grounds for revocation of a bank licence including if the holder becomes unable to meet his obligations to his creditors or suspends payments lawfully due.
In the event of a customer being affected by a credit institution operating in breach of regulatory requirements, that customer has in the first instance the option of seeking redress from the institution in question. Failing that or if the customer is not satisfied with the outcome, there is the option of bringing the dispute to the Financial Services Ombudsman or the Courts.
I propose to shortly bring forward amendments at Committee Stage of the Central Bank (Supervision and Enforcement) Bill which will introduce greater clarity for customers seeking compensation for losses arising from the failure of a credit institution to comply with its obligations.
The Central Bank Act 1971 does not deal with the question of the validity of any contract entered into by a bank in breach of the requirement to hold a banking licence and the consequences of such would have to be assessed by the Courts on the face of each case before them.
181. Deputy Stephen S. Donnelly asked the Minister for Finance if he will calculate the return to the Exchequer of a 1 cent levy on all SMS messages sent nationally; and if he will make a statement on the matter. [46264/12]
View answerI am informed by ComReg that just over 12.6 billion SMS messages (that is, outgoing SMS traffic) were sent in the 12 months to the end of June 2012. On the face of it, this would imply a potential yield of €126m from a 1 cent levy on SMS messages. However, this yield cannot be directly inferred from the SMS traffic figure, as the levy’s imposition could result in considerable behavioural impact among consumers, and could have significant implications for the charging arrangements of providers.
While any additional revenue would be welcome in the current circumstances, wider social and economic factors which may militate against the introduction of a further tax on text messages would also have to be taken into account. It must also be borne in mind that mobile phone calls and text messages are already subject to VAT at 23%. An additional flat rate levy of the order referred to by the Deputy on text messages could significantly increase the overall rate of taxation on accounts, particularly given that the average monthly spend per user is of the order of €35.
182. Deputy Kevin Humphreys asked the Minister for Finance when he intends to commence Section 31A of the Stamp Duties Consolidation Act 1999, inserted by Finance (No. 2) Act 2008 section 82 which was intended as an anti-avoidance measure; the reasons it has not been commenced; the estimated foregone revenue on an annual basis from 2008 to present as a result of it not being commenced; and if he will make a statement on the matter. [46327/12]
View answerI am advised by the Revenue Commissioners that Section 31A of the Stamp Duties Consolidation Act 1999 makes provision, subject to the section being commenced, for a charge to Stamp Duty where land is purchased and a conveyance or transfer of the land is not executed at the time the sale is closed. Under the provision, a Stamp Duty charge would attach to the contract or agreement for sale where the vendor receives a payment amounting to 25% or more of the purchase price concerned. Section 31A of the Stamp Duties Consolidation Act 1999 was subject to a commencement order on the basis that it would be prudent to consider the state of the housing and property market before the provision is put into place.
The previous Government commissioned an independent study of the potential effects that such a provision may have on the market. Of particular importance is that the report indicates that it would have led to a rise in land prices, with a knock-on increase in house prices, especially for first-time buyers, and possibly risked exacerbating the down-turn in the property market. The independent study examined Section 31A of the Stamp Duties Consolidation Act 1999 as inserted by section 110 Finance Act 2007. This was repealed by section 82 Finance (No. 2) Act 2008, which inserted a similar provision to the original section 31A provision.
The commencement of Section 31A of the Stamp Duties Consolidation Act 1999 is kept under constant review and has to take into account circumstances in the housing and property markets. There is currently no requirement to make Stamp Duty returns to the Revenue Commissioners in respect of these transactions as they are not liable to Stamp Duty. There is therefore no specific data on which to accurately estimate any revenue forgone as a result of the provision not being commenced. However, having regard to the fall in Stamp Duty rates, the reduction in property values and inactivity in the property market it is estimated that any revenue foregone is minimal.
183. Deputy Joe Higgins asked the Minister for Finance the impact in increased revenue from the introduction of three new tax bands of a rate of 50% for tax cases of more than €100,000, a rate of 60% for income of more than €135,000 and a rate of 70% for income of more than €200,000; the amount of extra income tax that would be raised; and the estimated effective tax rate paid by these different groupings as a result. [46354/12]
View answerIt is assumed that the threshold for the proposed new tax rates mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. In addition, it is assumed that the 3 new tax rates and bands proposed would be integrated in the current tax system together rather than in isolation. On the above basis, I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of the introduction of a new rates and bands would be of the order of €1.1 billion. However, given the current band structures, major issues would need to be resolved as to how in practice such new rates could be integrated into the current system and how this would affect the relative position of different types of income earners.
It is not possible to measure in a precise manner the impact that changes to tax rates and tax bands, which are based on taxable income values, will have on effective tax rates, which are normally measured by reference to gross income, because these income types are, generally speaking, not comparable. However, an indicative measure can be derived by examining the effect of the proposed changes on the average effective tax rate on all earners with gross incomes exceeding €100,000. On that basis the proposed changes would give rise to average effective income tax rate of 31.1% compared with a rate of 25.6% under the existing system.
The figures refer to income tax only, excluding USC and PRSI. These figures are estimates from the Revenue tax-forecasting model using latest actual data for the year 2010, adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and subject to revision. It should be noted that Gross Income is as defined in Revenue Statistical Report 2010.
184. Deputy Joe Higgins asked the Minister for Finance the impact of treating capital tax gains the same as other source of incomes subjected to income tax, universal social charge and PRSI. [46355/12]
View answerA schedular system of taxation operates in Ireland, as in many other countries, under which income is grouped into separate schedules for tax assessment purposes. Different rules apply for calculating taxable income under each schedule and for determining the timing of the charge to tax. Any change to treat capital gains on asset disposals as income subject to income tax would have fundamental implications for the schedular system. In the case of income tax, for example, a system of allowances, rate bands and tax credits are in place, the extent of the availability of which depends on the personal circumstances of each taxpayer. Income is charged to tax on a graduated basis at rates of 20% and/or 41% depending on whether an individual is single, married, a single earner couple or a two earner couple. The result is a highly progressive system with individuals paying more tax as they earn more income.
Capital Gains Tax (CGT) is chargeable on gains made on the disposal of assets. Persons are chargeable to CGT on such gains for a year depending on their residence and domicile. Gains subject to CGT are generally less recurring events for the majority of individuals than annual income chargeable to income tax. The first €1,270 of an individual’s net gains for a year (that is gains minus current year losses and losses brought forward from earlier years) is exempt from CGT with the balance taxed at a standard rate of 30%. The standard rate of CGT has increased from 20% to 30% in recent years. The non-recurring nature of many capital gains and the equitable treatment, under an income tax system which taxes income as it arises in a single year, of gains accrued over a number of years from the periodic disposal of capital assets are some of the considerations inherent in the Deputy’s question.
It should also be noted that income earned from capital assets (e.g. rental income from property or dividend income from investments) is liable to income tax and USC etc in the hands of an individual. The taxation system therefore imposes a charge to income tax, and consequently imposes PRSI and USC, where any income arises, whether that income is in the form of pay or emoluments of an individual or profits from an investment.
Any decision to apply higher taxes to gains from asset disposals would have to consider, among other things, the negative implications for ongoing investment in productive assets. To impose a charge equivalent to income tax, USC and PRSI on capital disposals is also likely to lead to other behavioural impacts with an effect on the transfer of ownership of assets, possibly leading to stagnation in the market in terms of such transfers, as assets will pass on death rather than by disposal. Charging capital gains to income tax will raise the question of when relief would be granted for capital losses.
Finally, I am informed by the Revenue Commissioners that the yield from applying income tax, USC and PRSI to capital gains would depend on the individual circumstances of each affected taxpayer such as the amount of each gain, the amount of other income, the marital status and the PRSI class. There would also be an uncertainty about the behavioural changes on the part of taxpayers, as outlined above, where a significant increase in the tax rate on gains may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield would have to be treated with caution.
185. Deputy Joe Higgins asked the Minister for Finance the impact of the extra amount of income raised if corporation tax was increased to 15%, 17.5%, 20% and 21.8%. [46356/12]
View answerThe Taoiseach, myself and other members of the Government have repeatedly expressed the Government’s commitment to the retention of the 12.5% rate. In that context, I must state that this is a hypothetical exercise. It is possible to provide an estimate on a straight line arithmetic basis. However in reality it is impossible to estimate the level of additional tax revenue that would be realised due to behavioural change on the part of taxpayers as a result of such a measure which would be a significant factor.
I am informed by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2012 profits, of increasing the standard rate of corporation tax from 12.5% to 15%, 17.5%, 20% and 21.8% is tentatively estimated on a straight line arithmetic basis to be about €675 million, €1,350 million, €2,025 million and €2,511 million respectively.
While this estimate is technically correct it does not take into account any possible behavioural change on the part of taxpayers as a consequence. In terms of an increase in the 12.5% rate, estimating the size of the behavioural effects is difficult but they are likely to be relatively significant. An OECD multi-country study found that a 1% increase in the corporate tax rate reduces inward investment by 3.7% on average. On this basis, it would take only a 2.5% increase in the rate (to 15%) to decrease Ireland’s inward investment by nearly 10%. This assumes the average applies across the board but in fact the effect is likely to be more extreme for Ireland.
The very major importance of maintaining the standard 12.5% rate of corporation tax to Ireland’s international competitive position in the current climate must also be borne in mind. Ireland, like other smaller member states, is geographically and historically a peripheral country in Europe. A low corporate tax rate is a tool to address the economic limitations that come with being a peripheral country, as compared to larger core countries. Ireland’s low corporation tax rate plays an important role in attracting foreign direct investment to Ireland and thereby increasing employment here. Recent research by the OECD also points to the importance of low corporate tax rates to encourage growth.
Further, it would be difficult to justify such a move in the context of Ireland’s stated position that we will not change our corporation tax strategy. Even a marginal change would undermine both our long held stance on this issue and the certainty of business, domestic and international, in our resolve to maintain that position.
186. Deputy Joe Higgins asked the Minister for Finance the amount that a tax on uninvested profits of corporations domiciled here after deducting corporation would raise at various rates of 10%, 20%, 25%, 30%. 40% and 50%. [46357/12]
View answerI am informed by the Revenue Commissioners that specific information on the amount of uninvested profits of companies is not available from corporation tax returns. There is therefore no basis on which an estimate of the Exchequer yields from the changes mentioned in the question could be provided.
187. Deputy Joe Higgins asked the Minister for Finance the schedule of interest payments and repayments of bonds in relation to sovereign debt in 2013; and if he will provide a breakdown by amount and to whom the payments are made. [46358/12]
View answerThe data requested by the Deputy, which has been provided by the NTMA, is provided in the table below. The estimates in this table are calculated on the basis of the end-September 2012 government bond debt position and will of course be subject to change. I would also like to make the Deputy aware that the data provided relates only to Government bonds, and does not include principal or interest payments related to other debt instruments, such as EU/IMF Programme funding, Treasury Bills and retail debt products.
With regard to the ownership of Government bonds, the manner in which they are settled and registered does not allow for the identification of individual holders. The Central Bank of Ireland, which is the registrar for Irish government bonds, identified a split of 27% domestic and 73% foreign holders at the end of June 2012.
|
Date |
Principal |
Interest |
Total |
|
€ millions |
€ millions |
€ millions |
|
|
15/01/2013 |
303.9 |
303.9 |
|
|
20/01/2013 |
5.9 |
5.9 |
|
|
18/02/2013 |
166.9 |
166.9 |
|
|
13/03/2013 |
634.2 |
634.2 |
|
|
20/03/2013 |
1.0 |
1.0 |
|
|
18/04/2013 |
5616.2 |
280.8 |
5897.0 |
|
18/04/2013 |
468.6 |
468.6 |
|
|
18/04/2013 |
531.4 |
531.4 |
|
|
20/05/2013 |
12.7 |
12.7 |
|
|
18/06/2013 |
339.2 |
339.2 |
|
|
20/07/2013 |
1.7 |
1.7 |
|
|
18/08/2013 |
0.6 |
0.6 |
|
|
20/09/2013 |
19.6 |
19.6 |
|
|
18/10/2013 |
219.0 |
219.0 |
|
|
18/10/2013 |
416.5 |
416.5 |
|
|
18/10/2013 |
400.8 |
400.8 |
|
|
18/10/2013 |
452.7 |
452.7 |
|
|
5,616.2 |
4,255.6 |
9,871.8 |
Source: NTMA
Rounding may affect totals
188. Deputy Brendan Griffin asked the Minister for Finance the percentage of persons in work who are earning €100,000 or more; the number of persons this equates to in real terms; the percentage of the total income earned in the State that these persons represent; the percentage of the State's total tax on incomes that is paid by these persons; the number in real terms and percentage of persons in work who pay no tax on income; and if he will make a statement on the matter. [46373/12]
View answerI am advised by the Revenue Commissioners that the information requested, estimated by reference to projected incomes for 2013, is as follows insofar as it is available:
1. Income earners over €100,000
|
- |
Total |
|
Numbers earning over €100,000: |
108,700 |
|
% of overall numbers of earners: |
5% |
|
% of overall gross income earned: |
24% |
|
% of overall tax liability: |
44% |
2. Tax exempt income earners
|
- |
Total |
|
Numbers earning: |
841,000 |
|
% of overall numbers: |
39% |
* Percentages are rounded to the nearest percentage point.
In requesting the numbers of persons in real terms, I assume the Deputy has in mind the presentation of the numbers in terms of full-time equivalents to adjust for those income earners who are earning for less than a full year. As the basic tax data does not distinguish between full-time earners and part-time earners it is not possible to supply the numbers in terms of full-time equivalents.
It should be noted that the figures for tax and effective tax rate only relate to income tax and do not take account of additional liability to PRSI and Universal Social Charge. The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised. It should be noted that Gross Income is as defined in the Revenue Statistical Report 2010. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
189. Deputy Brendan Griffin asked the Minister for Finance the amount of depreciation related tax allowances claimed by the corporate sector for the five most recent years for which these figures are available; and if he will make a statement on the matter. [46389/12]
View answerI am informed by the Revenue Commissioners that the available information is the estimated cost of all capital allowances claimed by companies on the corporation tax returns for the tax years 2006 to 2010, the latest year for which the necessary detailed information is available. Figures of these costs are as set out in the following table. The cost shown for each year is based on the cost of tax relief allowed in the specified tax year and does not include the cost for capital allowances which cannot be absorbed in the first year of claim because of insufficient profits but are carried forward as losses into future years. The costs relate to claims for expenditure on plant and machinery, industrial buildings, rental properties and other miscellaneous capital allowances.
|
Tax Year |
Estimated Tax Cost of Corporate Capital Allowances |
|
2006 |
€1,240m |
|
2007 |
€1,155m |
|
2008 |
€1,183m |
|
2009 |
€1,277m |
|
2010 |
€1,557m |
190. Deputy Michael McGrath asked the Minister for Finance the forbearance options offered by each of the covered banks in respect of customers in difficulty with their mortgage repayments; if the Central Bank of Ireland has requested that information in relation to forbearance options is made available in an accessible format to customers; and if he will make a statement on the matter. [46401/12]
View answerIn addition to the forbearance measures provided for in the revised code of conduct on mortgage arrears, each of the covered banks have or are developing, having regard to individual circumstances, a range of further options under the MARS process in respect of their customers experiencing difficulty with their mortgage. While each bank will have its own particular suite of options, the overall range of measures provided or to be provided by the covered banks includes options such as term extensions, split mortgages, deferred interest scheme, trade down, mortgage to rent and voluntary sale/surrender (or a combination of some of these). In relation to any forbearance offer made by the covered banks, or indeed by any other regulated mortgage lender, under the MARS process the Central Bank advises that chapter 4.21 of the Consumer Protection Code will apply and it requires that ‘Prior to offering, recommending, arranging or providing a product, a regulated entity must provide information, on paper or on another durable medium, to the consumer about the main features and restrictions of the product to assist the consumer in understanding the product. To the extent that the contract for the provision of the product is a distance contract for the supply of a financial service under the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004, the Regulations apply in place of the requirement set out in the first sentence of this provision.
191. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland is updating its code of conduct on mortgage arrears to reflect the provisions of the Personal Insolvency Bill; and if he will make a statement on the matter. [46402/12]
View answerThe Central Bank has informed me that it will commence a review of the Code of Conduct on Mortgage Arrears in the first quarter of 2013. The Central Bank would normally conduct a review a reasonable time after implementation and the Code will require updating due to the proposed introduction of both the Personal Insolvency Arrangement insolvency framework and longer term mortgage resolution options. The review will take into consideration recent developments that may be relevant to the issue of mortgage arrears, including all relevant Acts of the Oireachtas.
