Tax Yield

Questions (120)

Seán Fleming

Question:

120. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the rate of deposit interest retention tax from 30% to 33% and 35% respectively; and if he will make a statement on the matter. [49286/12]

View answer

Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the estimated yield to the Exchequer from increasing the Deposit Interest Retention Tax (DIRT) rate from 30% to 33% would be of the order of €60 million; and the yield from increasing the rate from 30% to 35% would be €100 million in a full year. This projection assumes no significant behavioural change by depositors or a change in interest rates applied by financial institutions to savings.

Tax Yield

Questions (121)

Seán Fleming

Question:

121. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the capital gains tax rate to 35%; and if he will make a statement on the matter. [49287/12]

View answer

Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 30% to 35% could be in the region of €80 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.

Tax Yield

Questions (122)

Seán Fleming

Question:

122. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from increasing the capital acquisitions tax rate to 35%; and if he will make a statement on the matter. [49288/12]

View answer

Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 5% to 35 %, based on the expected outturn in 2012, could be in the region of €45 million, assuming no change in the existing thresholds. This estimate is provisional and subject to revision.

It should be noted that this estimate is based upon an assumption that there would be no behavioural impact of this change, which could lead to a less than expected impact on Exchequer yield. In addition, the realization of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.

Tax Yield

Questions (123)

Seán Fleming

Question:

123. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from applying a 5% tax to National Lottery winnings above €1000; and if he will make a statement on the matter. [49289/12]

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Written answers (Question to Finance)

I am advised by the National Lottery that the total winnings over €1,000 in 2011 was of the order of €190 million. On this basis a tax or levy of 5% on National Lottery winnings over €1,000 would yield €9.5 million. For reasons of equity, a levy such as is proposed in the question might have to be imposed on winnings over €1,000 from other lotteries, which could affect fundraising by charities and sports clubs.

Section 5 of the National Lottery Act 1986 provides that the surplus from the National Lottery may be used for the following purposes: national culture, including the Irish language; the arts, within the meaning of the Arts Act 1951; the health of the community; and for such other purposes as the Government may determine. The following categories have been so determined: youth, welfare, national heritage and amenities. A levy might have a behavioural effect on participation and reduce the surplus available for these purposes.

National Lottery winnings are currently specifically exempted from Income Tax, Capital Gains Tax and Capital Acquisitions Tax. I do not propose at this time to introduce a tax such as is suggested by the Deputy.

Departmental Bodies

Questions (124)

Niall Collins

Question:

124. Deputy Niall Collins asked the Minister for Finance if he will provide in a tabular form the total list of quasi-Governmental organisations and agencies under his remit; if he will provide a list of quasi-Governmental organisations and agencies under his remit that have been abolished since March 2011 or are scheduled to be abolished and the date on which they are due to be abolished; the date on which the body was created; the name of the body; the 2012 Budget for the body; the number of employees of the body in 2012; the names of any outside consultants hired by the organisation since March 2011 and what future plans he has for the body. [49312/12]

View answer

Written answers (Question to Finance)

The information requested by the Deputy in relation to bodies under the aegis of my Department is contained in the following table. I am not aware of any plans to abolish these bodies in current year.

Name of Body

Date body set up

Budget for 2012 and

No of employees

Names of outside Consultants Employed by the body since Mar 2011

Financial Services Ombudsman Council

01/10/2004

Budget Nil

Employees Nil

Workplace

Solutions

Possible merger with Pensions Ombudsman review ongoing as part of the wider review.

Irish Financial Services Appeals Tribunal

The Irish Financial Services Appeals Tribunal was established by Part VIIA of the Central Bank and Financial Services Authority of Ireland Act 2003. The Members were first appointed by the President on the 25th of January 2007.

The Irish Financial Services Appeals Tribunal is composed of a Chairperson, a Deputy Chairperson and five lay members. The Tribunal retains a practising Barrister as a part time Registrar. It retains no other staff or employees.

The estimated Budget for 2012 is €289,752.00.

The Irish Financial Services Appeals Tribunal has not retained any outside consultants other than Messrs. Spain McQuillan, Chartered Accountants, for auditing services.

National Treasury Management Agency (NTMA) (includes SCA, NewERA, NPRF, NDFA and NAMA)

3 December 1990

The net budget for 2012 for the NTMA (which includes the State Claims Agency, NPRF, NDFA, NAMA and NewERA) is €43.5 million

(A further budgeted €43.7 in NAMA-related costs will be reimbursed to NTMA by NAMA. NAMA’s costs are met from its operating income).

500 Staff as at 31 October 2012 (this includes 227 NAMA staff

Information in relation to outside consultants is currently being collated and will be forwarded to the deputy

SCA (State Claims Agency)

3 December 2001

-

-

NewERA (New Economy and Recovery Authority)

September 2011 initially on a non-statuary basis

-

-

NPRF (National Pensions Reserve Fund)

2 April 2001

Fees and Expenses of NPRF (other than the costs incurred by the NTMA in its role as manager of the fund, included in the NTMA budget above) are met from NPRF.

-

- NDFA (National Development Finance Agency)

1 January 2003

Fees and expenses incurred by the NDFA in the performance of its financing and advisory functions in relation to specific public investment projects are reimbursed by the relevant State authority to NTMA

-

National Asset Management Agency

21 December 2009*

* NAMA was established in December 2009 and its remit is expected to be concluded in 2020

Projected Direct Operating Costs

€167m**,

227 employees

** Over 50% of which reflect the cost of services outsourced to third parties mainly the Participating Institutions of AIB, BOI and IBRC.

Information in relation to outside consultants is currently being collated and will be forwarded to the deputy

Credit Union Advisory Committee

September 2010

2012 Budget:

€20,900

No employees

None

Commission on Credit Unions

May 2011 – March 2012 (CCU has completed its work)

2012 Budget:

€27,100.

No employees

None

Irish Bank Resolution Company Limited

15th January 2009 date of nationalisation of Anglo Irish Bank

€268m budget

1,031 employees

Cannot disclose due to commercial sensitivities

The Irish Fiscal Advisory Council

07th July 2011*

(created on an administrative basis)

*Note the Fiscal Council will be placed on a statutory basis upon passage of the Fiscal Responsibility Bill

Ceiling of

€650,000 for 2012

5 council and 3 employees

Dr. Robert Hagemannn - Commissioned report entitled Fiscal Rules for Ireland; a key input to the IFAC’s report Strengthening Ireland’s Fiscal Institutions.

Credit Union Restructuring Board

31/08/2012

€300,000 for 2012

-

Disabled Drivers Medical Board of Appeal

21/12/1989

2 employees.

€330,000

-

The Central Bank are currently collating information requested by the Deputy and will forward it directly to the deputy when the process is complete.

Tax Yield

Questions (125)

Joanna Tuffy

Question:

125. Deputy Joanna Tuffy asked the Minister for Finance the estimated additional tax yield if universal social charge was reformed (details supplied); and if he will make a statement on the matter. [49324/12]

View answer

Written answers (Question to Finance)

Unfortunately, it was not possible to collate the information required for this answer in the time allowed. I will provide the Deputy with the answer in writing shortly.

Universal Social Charge Payments

Questions (126)

Joanna Tuffy

Question:

126. Deputy Joanna Tuffy asked the Minister for Finance the number of persons paying the universal social charge (details supplied); and if he will make a statement on the matter. [49325/12]

View answer

Written answers (Question to Finance)

Unfortunately, it was not possible to collate the information required for this answer in the time allowed. I will provide the Deputy with the answer in writing shortly.

Tax Yield

Questions (127)

Joanna Tuffy

Question:

127. Deputy Joanna Tuffy asked the Minister for Finance the numbers of persons that avoid tax on the grounds of non domicile; the estimate of total tax foregone by the State in a full year from this exemption; the additional yields that have been achieved to the Exchequer following changes in Budget 2012; and if he will make a statement on the matter. [49326/12]

View answer

Written answers (Question to Finance)

Domicile is a complex concept of general law. It may, broadly, be interpreted as meaning residence in a particular country with the intention of residing permanently in that country. An individual acquires a domicile of origin on his/her birth. Whilst each individual has a domicile, that domicile may or may not be the country in which he or she is tax resident. An individual is not entitled to claim exemption from Irish tax solely by reason of being non-Irish domiciled. An individual’s liability to Irish tax is affected by an individual’s residence, ordinary residence and domicile. It is not possible to determine how much tax is foregone by reason of an individual claiming to be non-Irish domiciled.

I am assuming that the reference to changes in Budget 2012 refers to the amendment to the Domicile Levy legislation announced in Budget 2012 and implemented in section 136 Finance Act 2012. The Domicile Levy was introduced in the Finance Act 2010 and was charged on an individual: who in any year was Irish domiciled and an Irish citizen; whose worldwide income for the year exceeds €1m; whose Irish located property in the year is greater than €5m, and whose liability to Irish income tax for the year is less than €200,000.

Where a relevant person has paid Irish income tax for a year that person is entitled to a credit for the income tax paid in calculating the amount of the domicile levy for that year.

The amendment introduced in section 136 Finance Act 2012 removed the requirement to be an Irish citizen. The affect of this amendment is that persons who meet the other criteria will be liable to the levy whether or not they are Irish citizens. The returns for the tax year 2012 will be the first returns affected by the amendment. These returns are due to be filed on or before 31 October 2013 or in the case of persons filing their income tax returns using the Revenue Online System (ROS) on or before 15 November 2013. I am informed by the Revenue Commissioners that as the filing deadline has not expired it is not possible at this point to determine how many persons this measure will affect for the tax year 2012.

Tax Reliefs Application

Questions (128)

Joanna Tuffy

Question:

128. Deputy Joanna Tuffy asked the Minister for Finance the numbers of persons who used the artist exemption in the years 2011 and 2012 in respect of their earnings; the total tax foregone to the State in those years on the basis of that exemption; and if he will make a statement on the matter. [49327/12]

View answer

Written answers (Question to Finance)

I am informed by the Revenue Commissioners that the latest relevant available information relates to the income tax year 2010. In that year, an estimated 2,350 claimants availed of the artists’ exemption scheme at an estimated cost to the Exchequer of €9.6 million. It should be noted that this figure takes account of the high income individuals' restriction which took effect for the first time in 2007. The impact of the measure in the income tax year 2010 was to reduce the value of the income tax relief under the artists' exemption by €8.3 million. The high income individuals' restriction was originally provided for in section 17 of Finance Act 2006 and was significantly tightened in Section 23 of Finance Act 2010. Individuals are now subject to the restriction where they have adjusted income of €125,000 and claim specified tax reliefs of €80,000 or more. Those subject to the full restriction now pay an effective income tax rate of 30% in addition to PRSI and Universal Social Charge.

Employment Investment Incentive Scheme

Questions (129)

Eoghan Murphy

Question:

129. Deputy Eoghan Murphy asked the Minister for Finance if he has considered an enterprise investment scheme as is operated in the UK whereby an investor in an early-stage enterprise can claim back up to 50% of their investment through tax reliefs. [49339/12]

View answer

Written answers (Question to Finance)

I assume the Deputy is referring to the Seed Enterprise Investment Scheme (SEIS), which the UK introduced to supplement its Enterprise Investment Scheme (EIS). The SEIS provides a higher rate of relief for qualifying investments in early stage enterprises, than is available under EIS and was introduced with effect from the 6th of April this year. We have a similar incentive to the EIS called the Employment and Investment Incentive (EII), which commenced on 25 November 2011, following the receipt of State Aid approval from the European Commission. The EII provides tax relief of 30% on investments made in small and certain medium-sized enterprises, including early stage enterprises, with the possibility of a further 11% in tax relief at the end of a three year holding period. The incentive was previously known as the Business Expansion Scheme and was significantly amended to target limited Exchequer resources towards job creation. As part of these changes, access to the incentive was made available to the majority of small and medium-sized companies (SMEs).

Figures from the Revenue Commissioners show that the level of funding raised by SMEs under the Business Expansion Scheme has been declining since 2008. This could be related to the economic downturn or to a lower appetite for risk among investors. It is too early to say whether the changes brought about by the introduction of EII will have the desired affect and halt such decline. However, the peak period for raising investments under EII is November/December and a better picture of the impact of the changes should be available next year.

The introduction of any scheme that would provide higher tax relief for investments in certain companies could have the capacity to skew investments towards such companies. This could work to the detriment of other equally deserving companies that need to raise risk capital investments. Ultimately, the priority of the Government is to incentivise investments where they are most likely to create jobs. Therefore, I am inclined to be cautious as regards implementing further changes to the tax incentives available for such investments at the current time.

Banking Sector Remuneration

Questions (130)

Michael McGrath

Question:

130. Deputy Michael McGrath asked the Minister for Finance if he will outline any additional payments, made by the covered banks to their employee pension schemes since 2007 that fall outside of normal employer contributions; and if he will make a statement on the matter. [49352/12]

View answer

Written answers (Question to Finance)

I have been advised by the Banks that unfortunately this it has been impossible to collate this information within this short timeframe. I will forward this information to the Deputy as soon as it is made available to me.

Alcohol Sales

Questions (131)

Damien English

Question:

131. Deputy Damien English asked the Minister for Finance if he will provide in tabular form the total number of inspections by Revenue and Customs for under age alcohol selling, sale of alcohol outside opening hours, valid license and duty paid on Stock in 2009, 2010, 2011 and to date in 2012; the number of compliant inspections; the number of cases brought and the number of convictions as a result of these cases; the total cost of these inspections for each year; and if he will make a statement on the matter. [49361/12]

View answer

Written answers (Question to Finance)

I am advised by the Revenue Commissioners that inspections for under age alcohol selling and the sale of alcohol outside opening hours are a matter for the Garda Síochána. I understand the Minister for Justice will provide this information to the Deputy directly. The main thrust of Revenue’s compliance programmes in relation to licensing is to target persons for enquiry who do not hold appropriate valid licences in respect of the activities that they carry on. In addition, checks are carried out on businesses selling alcohol products to ensure that all stock is correctly duty paid.

Regarding the total cost of these inspections for each year, inspections form part of Revenue’s overall compliance programmes, and a separate breakdown of costs in relation to alcohol licensing activities is not available.

Unlicensed Alcohol Trading

Year

Number of Inspections

No. of Cases brought to Court

No. of Convictions

2009

434

86

72

2010

1288

82

71

2011

1081

80

77

01/01/2012 -31/10/2012

895

109

102

Trading in Non Duty Alcohol Products

Year

Number of Inspections

No. of Cases brought to Court

No. of Convictions

2009

570

28

21

2010

1179

36

32

2011

964

14

8

01/01/2012 -31/10/2012

442

10

10

Public Sector Staff Increment Payments

Questions (132, 133, 140)

Mary Lou McDonald

Question:

132. Deputy Mary Lou McDonald asked the Minister for Education and Skills the net saving to the Exchequer if all vocational educational committee pay was capped at €100,000. [49129/12]

View answer

Mary Lou McDonald

Question:

133. Deputy Mary Lou McDonald asked the Minister for Education and Skills the gross saving to the Exchequer if all vocational educational committee pay was capped at €100,000. [49130/12]

View answer

Mary Lou McDonald

Question:

140. Deputy Mary Lou McDonald asked the Minister for Education and Skills the gross and net saving to the Exchequer if all vocational educational committee employee pay was capped at €100,000. [49127/12]

View answer

Written answers (Question to Education)

I propose to take Questions Nos. 132, 133 and 140 together.

My Department does not generally hold information relating to the salaries of individual VEC employees, who are paid by the VECs and, accordingly, the information requested by the Deputy is not readily available. Officials of my Department have requested from the VECs information relating to gross salaries of the relevant employees. This will be used to determine the gross saving to the Exchequer, were pay for employees of VECs to be capped at €100,000. The information will be forwarded to the Deputy as soon as it is available. My Department will not be in a position to provide details of the net savings to the Exchequer, as requested because this would require an examination of the tax and other statutory deductions applicable for each individual employee in question and would therefore involve an inordinate amount of administrative time to compile.