Written Answers Nos. 206-224
206. Deputy Joan Collins asked the Minister for Finance in relation to the Finance (Local Property Tax) Bill 2012, Part 14, Offences and Penalties section 146, other than by court action whether Revenue has the authority to collect a penalty arising from (a) or (b) of section 146. [2287/13]
View answerSection 146 provides for a monetary penalty where a liable person fails to deliver a statement of particulars in relation to Local Property Tax to the Revenue Commissioners or, having submitted an incomplete or incorrect statement fails to remedy these defects within a reasonable time of being requested to do so. The amount of any penalty that may be imposed is equivalent to the Local Property Tax that is payable, but if that amount exceeds €3,000, any penalty is capped at €3,000. Where a penalty is imposed, it is treated as an amount of outstanding Local Property Tax and may be recovered in the same manner as such tax. While the Revenue Commissioners may choose to recover the amount of any penalty by means of court proceedings, they are not restricted to this method of recovery. A wide range of alternative methods of recovery, as provided for under Section 148 of the Finance (Local Property Tax) Act 2012, would also be available to the Revenue Commissioners. In all cases, any such recovery action would be preceded by a notification to the liable person that a penalty had been incurred and inviting voluntary payment.
Finally, any Local Property Tax or monetary penalty that remains unpaid will become a charge on the residential property to which it relates and will have to be discharged to the Revenue Commissioners on the sale or transfer of the property.
207. Deputy Kevin Humphreys asked the Minister for Finance the number of applications received by the Revenue in 2011 and 2012 respectively to move pension funds overseas, either to another EU country or elsewhere; if he will outline in his response the procedure for moving an Irish based pension fund abroad; if the Revenue must be informed; and if he will make a statement on the matter. [2291/13]
View answerThe transfer of an occupational pension scheme member’s pension fund benefits or a Personal Retirement Savings Account (PRSA) contributor’s PRSA assets to an overseas pension arrangement is permitted, subject to the transfer complying with the Department of Social Protection’s “Occupational Pension Schemes and Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations 2003” and Revenue rules. In that regard, there is no application process to Revenue or otherwise. A transfer can take place once it complies with the requirements of the Regulations and the rules without prior Revenue approval. Under the Regulations, in the case of occupational pension schemes, the facility to transfer only applies to a scheme member who is entitled under the Pensions Act 1990 to “preserved benefits” under the scheme - in other words to a scheme member whose service in the relevant employment has terminated.
I am informed by the Revenue Commissioners that it is the responsibility of all trustees to ensure full compliance with the requirements of the Regulations. In essence, the Regulations require that, prior to making any overseas transfer payments, the trustees and PRSA providers must be satisfied that:
(a) The member has requested a transfer.
(b) The overseas arrangement provides relevant benefits as defined by section 770 of the Taxes Consolidation Act, 1997.
(c) The overseas arrangement has been approved by the appropriate regulatory authority in the country concerned.
In practice, trustees and PRSA providers are required to obtain written confirmation to that effect from the trustees, custodians, managers or administrators of the overseas arrangement to which the transfer is to be made.
I am advised by the Commissioners that if the transfer is to another EU Member State, Revenue rules require the overseas scheme to be operated or managed by an Institution for Occupational Retirement Provision (IORPS), within the meaning of the EU Pensions Directive (known as the “IORPS Directive”), and to be established in a Member State of the European Communities which has implemented the IORPS Directive in its national law. The scheme administrator must also be resident in an EU Member State. In broad terms, the purpose of the IORPS Directive is to ensure that members and beneficiaries of occupational pension schemes are properly informed about the rules and financial position of the scheme and their rights under the scheme, and to ensure the efficient management and investment of scheme assets.
If the transfer is to a country outside the EU, under Revenue rules a transfer may not be made to a country other than the one in which the member is currently employed.
I am also advised by the Revenue Commissioners that in recent years two additional approval conditions have been introduced for all existing and new retirement benefit schemes and PRSAs in relation to overseas transfers. In late 2009, a condition was introduced to the effect that all overseas transfers under the provisions of the above mentioned Regulations may be made to facilitate bona fide transfers only, that is that they are not made with the primary purpose of circumventing Irish tax requirements. Early last year, in response to an apparent increase in requests to pension fund trustees and administrators for transfers of Irish pension funds abroad following newspaper advertisements encouraging such actions in order, for example, to access tax-free cash early, a further condition was introduced requiring a member of an occupational pension scheme or a PRSA contributor who directs the trustees of the scheme or the PRSA provider to make a transfer to an overseas scheme, to sign a declaration to the effect that the transfer conforms to the requirements of the Regulations and Revenue pension rules, is for bona fide reasons and is not primarily for the purpose of circumventing pension tax legislation and Revenue rules.
Moving pension funds abroad in an effort to frustrate Irish tax rules would fall foul of these approval conditions and could ultimately result in approval being withdrawn which would have very significant consequences for any individual concerned.
Tax relief given on pension savings is intended to encourage individuals to save for the long-term with a view to providing them with an income in retirement. That is why our tax rules, like those in many other jurisdictions, set a minimum age from which benefits from pension savings can normally be accessed. It is important that these rules are not abused and that savings built up with the benefit of generous tax reliefs are not misused.
208. Deputy Kevin Humphreys asked the Minister for Finance if there has been any consideration of issuing sovereign debt bonds under non-domestic law such as in New York or the UK; and if future Irish Government Bonds issued this year will include collective action clauses; and if he will make a statement on the matter. [2292/13]
View answerI am informed by the National Treasury Management Agency (NTMA) that euro area countries issue their bonds under domestic law and this is the market standard for direct issuance. Certain NTMA borrowing programmes however are issued under non-Irish law. For example, the Global Medium-Term Note (GMTN) programme and the Euro Commercial Paper (ECP) programme are governed by English law, which is normal for this type of programme, while Ireland’s US Commercial Paper programme is governed by New York law. Ireland has also issued debt under German law. The Agency generally has no objection in principle to considering other foreign law to govern its debt and is guided rather by commercial and pragmatic considerations with a view to minimising the burden of the National Debt on the tax payer. With regard to the inclusion of Collective Action Clauses (CAC) in Irish Government Bonds issued this year, I am informed by the Agency that, following the conclusion of the European Council of 24-25 March 2011, a standardised and identical CAC including supplemental provisions was developed and agreed by the Economic and Financial Committee on 18 November 2011. In accordance with paragraph 3 of Article 12 of the ESM Treaty, the model CAC became mandatory for all new euro area government securities with a maturity above one year issued on or after 1 January 2013 and in a way which ensures the legal impact is identical in all Member States. This will be incorporated in any new issue of Irish Government Bonds. However, to ensure the smooth operation of the financial markets, it is possible to continue to issue or tap existing bonds which do not have CAC clauses. However, the degree to which a country can continue to issue existing bonds is limited. In 2013 the limit is 45% of the total face amount of all central government debt securities issued by that Member State.
209. Deputy Kevin Humphreys asked the Minister for Finance if he will provide in tabular form the amount escheated to the Intestate Estates Fund Deposit Account on an annual basis since 2006, and alongside for each year if he will outline the number of estates transferred and the value of disbursements made from it on an annual basis and if he will clarify what happens to non-liquid assets; and if he will make a statement on the matter. [2296/13]
View answerThe following is the information requested by the Deputy.
|
Year |
Payments in |
Number of Estates |
Payments out |
|
2006 |
€572,804.39 |
163 |
€40,526.58 |
|
2007 |
€222,713.99 |
8 |
€4,437,593.25* |
|
2008 |
€533,193.46 |
493 (est)** |
€89,274.86 |
|
2009 |
€371,286.90 |
187 |
€294,316.05 |
|
2010 |
€213,082.76 |
153 |
€87,340.57 |
|
2011 |
€227,507.10 |
149 |
€67,889.74 |
|
2012 |
€623,149.86 |
255 |
€103,715.45 |
* This includes €4.4m transferred to the Dormant Accounts fund under Section 36 of the State Property Act, 1954 as amended by Section 28 of the Dormant Accounts Act, 2001.
** The lodgment for 2008 includes an amount of €30,224.68 in respect of which the number of deceased persons is not available.
Section 73 of the Succession Act 1965 provides that where a person dies intestate and without known next-of-kin the estate of that person shall be taken by the State as ultimate intestate successor.
Where an estate falls to the State under Section 73 it is administered by the Chief State Solicitor under the direction of the Attorney General. Depending on the extent and nature of the estate this process may involve the extraction of letters of administration from the High Court and advertising for next-of-kin. When it is established that there are no known next-of-kin the proceeds of the estate are paid into the Intestate Estates Fund Deposit Account.
The Deputy also asks what happens to non-liquid assets. Once it is established that there are no known next of kin who might be entitled to inherit an estate, non-liquid assets are sold, where this is possible, and the proceeds are paid into the intestate estates fund.
The amount outstanding in the Intestate Estates Fund Deposit Account as at 31 December 2012 was €2.56m.
210. Deputy Stephen S. Donnelly asked the Minister for Finance if his attention has been drawn to the fact that Permanent TSB is using an autodial facility to phone customers with distressed loans several times per day; if he condones such actions; and if not, if he will immediately instruct PTSB to desist; and if he will make a statement on the matter. [2500/13]
View answerAs the Deputy will be aware Permanent TSB manages its distressed loan portfolio from a dedicated Asset Management Unit (AMU) which Permanent TSB informs me has been developed in line with best international practice especially for this purpose. I have been informed by the bank that, while the AMU is built around the bank’s customer services team, as part of its operations the unit does employ what is commonly referred to as an auto dialler. This is an automated phone system which manages a large volume of outbound and inbound calls. Permanent TSB assures me that this system has played a key role in helping the bank to prevent many customers from falling into arrears.
Permanent TSB informs me that management of the AMU is responsible for establishing the operational protocols governing the use of the auto dialler and ensuring that they comply with the Code of Conduct on Mortgage Arrears (CCMA) particularly in respect of the number of calls made to individual customers and the timing of such calls.
The bank’s management also informs me that a review of the system’s records has demonstrated that the system operates within all the relevant regulations relating to the level of engagement which a bank may have with a customer in arrears.
As per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF and the Relationship Framework agreed with Permanent TSB I recognise that the bank remains a separate economic unit with independent powers of decision. A copy of the Relationship Framework can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/
The Board and management team retain responsibility and authority for determining the bank’s strategy and commercial policies and conducting its day-to-day operations. I will ensure that the investment in the bank is managed on a commercial basis and will not intervene in day-to-day management decisions of the bank.
211. Deputy Derek Keating asked the Minister for Finance his plans to maintain the reduced rate of VAT introduced as part of the jobs plan into 2014. [2502/13]
View answerI provided assurance to the tourist industry that the 9% rate will continue throughout 2013 as currently legislated for. Any proposals to maintain the 9% rate into 2014 will be considered in the context of Budget 2014.
212. Deputy Stephen S. Donnelly asked the Minister for Finance if the excise rebate on diesel announced in Budget 2013 for haulage companies will be extended to passenger transport companies; if excluding transport companies from this is in violation of any EU law; and if he will make a statement on the matter. [2568/13]
View answerThe proposal to introduce an auto-diesel excise duty relief for licensed road hauliers that I announced in the Budget is confined to licensed and tax compliant hauliers. However, I have received a number of submissions from, and on behalf of, private coach operators seeking to have this relief extended to them. I will consider these proposals and the level of the rebate in the context of the Finance Bill. It is worth noting that one of key arguments for introducing a rebate for the haulage industry is the fact that a large quantity of fuel purchased by this industry is purchased abroad thus generating no tax revenue for the State. A rebate should encourage hauliers to start purchasing their fuel in Ireland thus offsetting some of the costs involved. Such an argument does not exist for the most part for the coach industry.
The fuel rebate scheme proposed is governed by the terms of Council Directive 2003/96/EC of 27 October 2003 which limits its application to auto diesel used in defined categories of road vehicles.
213. Deputy Terence Flanagan asked the Minister for Finance the assessment he has made of EU policies for the promotion of economic growth; and if he will make a statement on the matter. [2583/13]
View answerAt the outset I want to stress that growth and jobs is a key theme of the Irish Presidency of the European Union. A number of initiatives are being implemented at EU level in order to boost growth. I believe the cumulative impact of all of these measures will be positive in terms of supporting economic activity in the EU at this difficult juncture.
For instance, Heads of State or Government in the EU agreed on a compact for growth and jobs at the European Council on 28th and 29th June. This involves action by both Member States themselves and at EU level in order to boost growth, investment and employment.
Measures to be implemented at the national level include the full implementation of the country-specific recommendations from the European Semester, including the pursuit of differentiated and growth-friendly fiscal consolidation, the restoration of normal lending to the economy and the promotion of competitiveness.
At an EU level, policies to promote growth include a renewed emphasis on deepening the Single Market and reducing the regulatory burden. In addition, an important measure is the mobilisation of EUR120 billion - about 1 per cent of EU gross national income - to boost European growth. These funds will be made available via EU structural funds, European Investment Bank lending, and the 2020 Project Bonds initiative, which entered its pilot phase last November. Constituting part of these efforts is a EUR10 billion paid-in capital increase for the EIB, a substantial boost to its lending capacity.
It is also worth pointing out the progress that has been made in terms of the European financial sector, in recognition of the important role this sector plays in terms of supporting growth in the EU.
Finally, considerable progress has been made at a euro area level to put the single currency on a more solid footing. For instance, the establishment of the European Stability Mechanism and the ECB’s announcement of Outright Monetary Transactions have helped restore confidence, while the enhanced system of governance will have a positive impact on economic activity.
214. Deputy Pat Deering asked the Minister for Finance if he will indicate agricultural contractors in the diesel rebate scheme in his deliberations on the Finance Bill. [2609/13]
View answerIreland, as with other countries, has experienced an increase in fuel prices. This increase is an international phenomenon. Fuel prices are driven by a number of factors including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty in Northern Africa and the Middle East with potential supply disruptions. However, fuels prices have receded in recent times from highs experienced last year. Contractors using such machinery in the course of farming work are entitled to use Marked Gas Oil (MGO). The current excise duty including the carbon charge on MGO is 10.23 cents per litre, this compares to 47.9 cents per litre in respect of auto-diesel. In terms of VAT, the reduced VAT rate of 13.5% applies to MGO and the standard VAT rate of 23% applies to auto-diesel. MGO is therefore taxed more favourably compared to auto-diesel. I will not be introducing a tax rebate for users of MGO.
215. Deputy Pearse Doherty asked the Minister for Finance if the Irish Bank Resolution Corporation, in which he is the sole shareholder of 100% of the shares, has a banking licence; the specific requirements of such a licence for IBRC; the person who issued IBRC with a banking license; and the date on which its banking licence was renewed [2733/13]
View answerIBRC has confirmed that it has a banking licence which was issued by the Central Bank of Ireland (“CBI”) on 19th May 1987 and which remains in effect today. As a licensed credit institution, IBRC is subject to the CBI's Licensing and Supervision Requirements for Credit Institutions along with a wide range of other legal and regulatory obligations.
216. Deputy Pearse Doherty asked the Minister for Finance if the Irish Bank Resolution Corporation, in which he is the sole shareholder of 100% of the shares, has a bank account or bank accounts; with whom, and the number of bank accounts IBRC has, the terms and conditions of these accounts; and if IBRC has an overdraft facility, the interest rate and the surcharge interest rate on IBRC's bank account or bank accounts [2734/13]
View answerIBRC has informed me that the bank maintains a variety of bank accounts with correspondent banks across a variety of currencies. These accounts are used to enable customer loan repayments, derivative settlements, payment of supplier invoices, foreign currency settlements, etc. At 31 December 2012 IBRC maintained approximately 30 active bank accounts with correspondent banks. All bank accounts maintained by IBRC are operated on negotiated commercial terms.
217. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding an exemption from the property tax of houses adversely affected by radon gas. [2741/13]
View answerExemptions from the Local Property Tax are only applicable in the circumstances provided for in the legislation. I have no plans to exempt properties adversely affected by radon gas from the tax.
219. Deputy John Deasy asked the Minister for Finance the revenue that will be generated by the property tax in each county and the overall amount projected throughout the country. [2850/13]
View answerAccording to Budget estimates the Local Property Tax is expected to generate an overall yield of €250 million in 2013 and €500 million in 2014. I am advised by the Revenue Commissioners that it is not possible to provide a breakdown of these estimates on a county basis until Local Property Tax returns are filed and payments made by liable persons.
220. Deputy Robert Dowds asked the Minister for Finance his views on issuing every household who pays property tax with an annual receipt outlining the way their money was spent; and if he will make a statement on the matter. [2888/13]
View answerWhile I believe that there is considerable merit in making more information available to members of the public about the sources of Exchequer income and its expenditure, I must be conscious of the costs and practicalities of issuing every household who pays Local Property Tax with an annual receipt. I believe that transparency is to be welcomed. If people are better informed then they will better understand the need for current levels of taxation. It will also serve to enhance public knowledge of the extent of spending on our vast range of public services and, indeed, provide an increased understanding of their cost.
The Local Property Tax will be collected by the Revenue Commissioners. However, they do not issue statements to the vast majority of taxpayers and as part of their modernisation programme they are actively working to reduce the incidence of such statements. The core mission of the Revenue Commissioners is the collection of taxes and duties, and the implementation of customs controls. It has no function in decisions relating to the allocation or expenditure of Government funds arising from taxes received. The proceeds of the Local Property Tax will accrue to local authorities and will support the provision of local services. How this will be spent will vary from local authority to local authority and this information will not be readily available to Revenue. Any requirement on Revenue to gather, analyse and provide details of how taxes were spent would be adding the burden of a non-core function on an already fully engaged office and could prove to be a drain on limited resources. Decisions about the allocation of resources for local services would primarily be matters for my colleague, the Minister for the Environment, Community and Local Government and for the local authorities themselves.
Turning to the question of distributing statements, the most obvious and efficient mechanism to distribute any proposed statements to individuals is by way of an electronic interface. However, in order to protect taxpayer confidentiality, any electronic system containing taxpayer information and data must be properly secured and accessible only through secure passwords and other protections. Although Revenue has a number of online systems, they are designed for the declaration and collection of tax. They would require extensive and expensive development to reconfigure for use in the distribution of the data outlined in this parliamentary question.
Not all taxpayers have, or indeed want, access to Revenue's online facilities. Accordingly, in these cases, Revenue will be obliged to print and then post the data and information to individual taxpayers. The operational costs involved in this can be significant.
Furthermore, Revenue has found that in the past the distribution of unsolicited information has sometimes surprised many taxpayers and caused needless concern. This gave rise to substantial increases in phone calls, letters and personal callers to Revenue offices. These, often simple information or explanatory enquiries, resulted in the diversion of experienced staff away from essential tax compliance related functions.
Taxpayers should be as well-informed as possible about where their money goes. It is appropriate also that they should have confidence that their money is used wisely, by a Government which focuses on efficiency and effectiveness. Having said that, I am not satisfied that the benefits to be derived from implementing a system of issuing every household who pays Local Property Tax with an annual receipt outlining the way the tax was spent would outweigh the costs and administrative burden involved.
221. Deputy Billy Kelleher asked the Minister for Finance the number of immediate or extended family members employed by his Department; the names and remuneration in each case; and if he will make a statement on the matter. [2899/13]
View answerNo family members and or related party members are employed in my Department.
222. Deputy Joe O'Reilly asked the Minister for Finance the reason a company (details supplied) in County Cavan that has applied for a 2205 classification cannot be facilitated in obtaining this, in view of the fact that the jobs of 12 people are at stake here; and if he will make a statement on the matter. [2924/13]
View answerI am advised by the Revenue Commissioners that they are examining the classification of an alcoholic product presented by the company in question and have sought the assistance of the State Laboratory as part of this process. The Commissioners expect to complete this examination within the next two to three weeks and advise their classification decision to the company.
223. Deputy Joanna Tuffy asked the Minister for Finance the number of persons currently employed by the Commission for Energy Regulator; the number of staff who received performance related payments for the years 2010, 2011 and 2012; the overall amount paid out each year; the average amount paid to each employee and his policy on such payments; and if he will make a statement on the matter. [2966/13]
View answerThe Commission for Energy Regulation was initially established as the Commission for Electricity Regulation under the Electricity Regulation Act, 1999. The name was changed to the Commission for Energy Regulation and the functions expanded by the Gas (Interim Regulation) Act, 2002. Under that Act, its remit was expanded to include the regulation of the natural gas sector. The Commission is an independent statutory body and I, as Minister for Finance, have no role in its operation or oversight.
224. Deputy Patrick Nulty asked the Minister for Finance the number of mortgage arrears, home repossessions and foreclosures in the State for the years 2000 to 2011, aggregates in tabular form by quarter; and if he will make a statement on the matter. [3000/13]
View answerThe Central Bank of Ireland compiles and publishes data on a quarterly basis on mortgage arrears, repossessions and mortgage restructures. The Central Bank commenced the publication of such data for the quarter ending September 2009 in respect of principal dwelling (PDH) mortgages and from September 2012 also in respect of “buy to let” (BTL) mortgages. The Central Bank has advised that this data is available on the Central Bank website and the latest data is available on the following pages http://www.centralbank.ie/polstats/stats/mortgagearrears/Pages/releases.aspx
http://www.centralbank.ie/polstats/stats/mortgagearrears/Documents/data.xls.
