Wednesday, 23 Jan 2013

Written Answers Nos. 72-80

Greek Government Bonds

Questions (72)

Kevin Humphreys

Question:

72. Deputy Kevin Humphreys asked the Minister for Finance if Ireland has agreed to the arrangement whereby ECB profits on the holdings of Greek bonds under the securities market programme that have been received by national central banks will be returned to the Greek Central Bank; if he will outline the process by which this will take place; the profits the Central Bank of Ireland received from this in 2012 and the projected profits in 2013; and if he will make a statement on the matter. [3189/13]

Written answers

Minister for Finance

At end-November last year, Finance Ministers of euro area Member States – the Eurogroup – agreed to a number of measures to reduce the ratio of public debt to GDP in Greece. One of the measures was a commitment by Member States to pass on to Greece an amount equivalent to the income on the Securities Markets Programme holdings of Greek Government bonds accruing to their national central bank as from budget year 2013. From an Irish perspective, however, the Eurogroup decided that Member States under a full financial assistance programme are not required to participate in this scheme for the period in which they receive themselves financial assistance. Therefore, the issue of ring-fencing part of the Central Bank’s profits in 2012 or 2013 for Greece does not arise.

Question No. 73 answered with Question No. 71.

Departmental Staff Promotions

Questions (74)

Thomas P. Broughan

Question:

74. Deputy Thomas P. Broughan asked the Minister for Finance the number of promotions at each rank that were approved in the Revenue Commissioners for 2011 and 2012; and if he will make a statement on the matter. [3206/13]

Written answers

Minister for Finance

The Revenue Commissioners have provided me with the information in the following table in response to the Deputy’s question.

Table: Revenue Commissioners - Internal Promotions

Grade Level	2011	2012
Principal	2	13
Assistant Principal	1	33
Higher Executive Officer	25	33
Executive Officer	25	32
Staff Officer	13	16
Clerical Officer	0	1

The limited number of promotions in the Revenue Commissioners must be considered in the context of the significant reduction in numbers and loss of key skills since 2009. Revenue staff numbers have reduced from 6,581 in 2009 to 5,732 in 2012. I am advised by the Office of the Revenue Commissioners that they undertake regular workforce planning analyses to identify key posts and skills that require to be filled to enable them to deliver on their current and developing strategies. Notwithstanding the need to reduce public service numbers generally, an effective tax collection system is an essential element of our fiscal consolidation requirements. In recognition of the need to adequately resource Revenue and to address critical skills gaps, my colleague the Minister for Public Expenditure and Reform recently granted Revenue sanction to fill critical vacancies up to a new Employment Control Framework of 5,874. The Revenue Commissioners are required, in the first instance, to refer to the public service resource panel to fill vacancies. Where there are no redeployment staff available, or there are specific skills deficits, Revenue have sanction to fill posts by recruitment or promotion.

Question No. 75 answered with Question No. 71.

Tax Code

Questions (76)

Brendan Griffin

Question:

76. Deputy Brendan Griffin asked the Minister for Finance if struggling businesses who have settled with the Revenue Commissioners for penalties and interest and are paying back by installment will be accommodated in any way at times of the year that their turnover is reduced; his views on whether it is in the interest of the Revenue Commissioners and the State not to apply undue pressure that would cause such businesses to fail; if there is a process that a business person under pressure can engage in if they is finding the repayment schedule unworkable; and if he will make a statement on the matter. [3292/13]

Written answers

Minister for Finance

Revenue has a strong focus on making sure that every individual and business complies with the responsibility to pay the right amount of tax or duty including interest and penalties, which are due, in full and on time. That is an appropriate and correct focus for Revenue and one that I fully endorse. Delays in the collection of tax revenues properly due, adds to the level of Government borrowing and public debt interest and confers an unfair competitive advantage on non-compliant businesses. I know that Revenue is conscious of the difficult economic and financial climate that prevails and how this can pose challenges for businesses and individuals in being timely compliant. Revenue has responded to the difficult environment by encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise in order to find an agreed way through those difficulties and quickly restore voluntary timely compliance.

It must be remembered that the granting of an instalment arrangement is not something to which a taxpayer is entitled as a matter of right, and accordingly, it is very important that those businesses that have agreed an instalment plan with Revenue organise their financial affairs in such a fashion as to ensure that the terms of the agreement are honoured as agreed. However, in circumstances where a business or taxpayer finds the terms of the original phased payment agreement unsustainable due to an unexpected reduction in turnover then the business or taxpayer should make immediate contact with Revenue and outline alternative proposals. Provided that the underlying viability of the business is confirmed, which includes in particular capacity to pay current taxes, and where there is open and honest engagement by the business including a clear commitment to restore timely payment compliance within realistic timeframes, then Revenue may agree to restructure the original phased payment arrangement.

I commend Revenue for the work that it has done in that regard and in the practical support and assistance it is providing to viable businesses. I am aware that tax practitioners and representative bodies have recognised Revenue’s efforts in this regard also. If the Deputy has a particular case in mind, I would advise the person or business to contact Revenue immediately.

Departmental Staff Rehiring

Questions (77)

Pearse Doherty

Question:

77. Deputy Pearse Doherty asked the Minister for Finance the number of officials in his Department that have moved into jobs in the financial sector in the last two years and the cooling off period which was applied to these officials during their moves. [3356/13]

Written answers

Minister for Finance

No officials from my Department have moved into jobs in the financial sector. I understand that three members of my Department’s Shareholder Management Unit, seconded to my Department from the NTMA, who resigned from the NTMA subsequently took up employment in the financial sector. The position in respect of the Head of the Shareholder Management Unit is as I set out to the Deputy in the House last week. In the case of the other two employees they served the notice provided for in their contracts. All employees of the NTMA are subject to section 14 of the National Treasury Management Agency Act, 1990 which prohibits an employee from disclosing any information obtained while carrying out their duties as employees of the NTMA. NTMA employees are also subject to the Official Secrets Act. Contravention of the NTMA Act and the Official Secrets Act is a criminal offence and the prohibition on disclosing confidential information applies indefinitely and extends to former employees.

Tax Code

Questions (78)

Róisín Shortall

Question:

78. Deputy Róisín Shortall asked the Minister for Finance if he will provide a full breakdown of the tax liability in respect of a person (details supplied) in Dublin 9; the reason a recent small sum was deducted at source in this particular case and on what basis. [3357/13]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the person in question has been in contact with his local Tax District and following clarification regarding his own and his spouse’s pensions from the Department of Social Protection, an amended tax credit certificate issued on 15 January 2013. The certificate outlines his tax credits and the reduction in respect of the pensions. Any tax over deducted since 1 January 2013 will be repaid by his pension provider.

Tax Code

Questions (79)

Róisín Shortall

Question:

79. Deputy Róisín Shortall asked the Minister for Finance if he will provide a full breakdown of the tax liability in respect of a person (details supplied) in Dublin 9; the reason a recent small sum was deducted at source in this particular case and on what basis. [3358/13]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the spouse of the person in question has been in contact with their local Tax District. Following clarification regarding their pensions from the Department of Social Protection and her spouse’s occupational pension, an amended tax credit certificate issued on 16 January 2013. The certificate outlines the person’s tax credits and the reduction in respect of the pensions. The person’s pension provider was also notified on 16 January 2013 that he is exempt from the Universal Social Charge. Any over deduction since 1 January 2013 will be repaid by the pension provider.

Illicit Trade in Tobacco

Questions (80)

Damien English

Question:

80. Deputy Damien English asked the Minister for Finance further to Parliamentary Question 224 of 19 October 2010, if he will detail by year the number of persons who have telephoned Revenue’s cigarette smuggling hotline since its introduction; if he will detail the number of Revenue staff manning the hotline and the cost of operating the hotline; if he will provide a breakdown by region of the origin of calls to the hotline; the number of these telephone calls which have directly led to cigarette seizures; the value of these cigarette seizures; the number of convictions resulting from these seizures; and if he will make a statement on the matter. [3362/13]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the number of calls received through their tobacco hotline in 2010, 2011 and 2012, were 197, 97 and 137, respectively. Revenue’s experience is that very few calls are specific enough to lead directly to seizures, but in the relevant years 9, 4 and 5 seizures respectively were as a direct result of calls to the hotline. It has not been possible in the time available to establish the value of resulting seizures, or subsequent convictions in respect of them. The tobacco freefone operates on a twenty-four hour, seven-day basis and is monitored by an intelligence unit in the Revenue Commissioners’ Investigations & Prosecutions Division. As this work is undertaken as an integral part of a broad range of intelligence-related functions, it would not be possible to provide information on the specific staff resource allocated to, or the operating costs of, the tobacco hotline. As virtually all information received through the tobacco hotline is provided anonymously, it would not be possible to provide a breakdown by region of the calls received. I am informed by the Revenue Commissioners that they regularly remind trade groups in particular of the availability of the hotline, and will again, in the context of the Hidden Economy Monitoring Group, draw their attention to the kind of information that is useful.