Written Answers Nos. 237-256
237. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will consider the proposal made in correspondence (details supplied) regarding an excise on rebate of diesel; if he will take the necessary action; and if he will make a statement on the matter. [3831/13]
View answer248. Deputy Jim Daly asked the Minister for Finance if he will confirm that when the derogation to European Commission Energy Tax Directive 2003/96/EC ended, it applied in the same manner to all operators both public and private; and if he will make a statement on the matter. [4128/13]
View answer249. Deputy Pearse Doherty asked the Minister for Finance if he has any plans to extend the excise rebate on diesel for haulage companies as announced recently, to include bus and coach companies in the context of the Finance Bill in view of his comments that a fuel rebate system could not under EU law be restricted to Irish licenced hauliers but would have to be extended to all vehicles intended exclusively for the carriage of goods by road with a maximum permissible gross laden weight of not less than 7.5 tonnes, the rebate would have to include the carriage of passengers by a motor vehicle of category M2 or category M3 as defined in Council Directive 70/156/EEC; and if he will make a statement on the matter. [4130/13]
View answer258. Deputy John Halligan asked the Minister for Finance his views on a matter (details supplied) in relation to excise rebate on diesel. [4179/13]
View answerI propose to take Questions Nos. 237, 248, 249 and 258 together.
The 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 the 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. On the matter of the derogation that has ended, it is assumed that the Deputy is referring to the derogation that allowed for the application of a reduced rate of mineral oil tax to fuel used for the purposes of certain road passenger services. I can confirm that the rebate applied to services operated by both private and public operators and was abolished in 2008. I will be informing the European Commission of the rebate measure once it is introduced.
238. Deputy Michelle Mulherin asked the Minister for Finance the way that customers in each of the State controlled banks have been precluded from qualifying for the enhanced mortgage interest relief owing to the Christmas holiday arrangements of each of the lending institutions which did not allow the draw down of any loan cheque from approximately the middle of December 2012 to 31 December 2012; and if he will make a statement on the matter. [3833/13]
View answerI have been supplied with the following information by the State controlled banks.
AIB’s Central and Retail staff worked closely with its customers and their solicitors in ensuring loan conditions were satisfied to enable funds to be released by year end. Significant resources were provided in this regard and staff were deployed at evenings and weekends throughout the month and up to the close of business on December 31st to ensure that all funds were released on time where customers had fulfilled drawdown conditions. AIB can confirm that all fully satisfied mortgage drawdown requests were processed on time to avail of TRS and this resulted in AIB’s December mortgage drawdowns being approximately double its 2012 monthly average. For information, AIB electronically transfers drawdown funds directly to its customers’ solicitors accounts to ensure funds are immediately available.
PTSB
All requested loan cheques were issued prior to Christmas. None were required on the 30th and 31st December.
IBRC
IBRC does not issue any new mortgages.
239. Deputy Jack Wall asked the Minister for Finance the position regarding an application for incapacitated child credit certificate in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [3865/13]
View answerThe position is that, in this instance, the relevant legislation is Section 465 of the Taxes Consolidation Act, 1997. The section provides that the credit is available for a child under the age of 18 years, where there is a reasonable expectation that the child would be incapacitated from maintaining himself or herself when over 18 years of age. It is practice to request confirmation from a medical practitioner that this is the case. The person concerned has been requested to submit such confirmation. The credit will be allowed on receipt of this confirmation from a medical practitioner.
240. Deputy Michael McGrath asked the Minister for Finance if he will detail the policies being implemented by his Department on which he wrote to the EU / ECB / IMF troika; and if he will make a statement on the matter. [3882/13]
View answerAs the Deputy will be aware Ireland is in the final year of the EU-IMF Programme of Financial Support. The Programme is subject to a quarterly review mission with the three external partners, the EU, the ECB and the IMF (the Troika). It is at these review missions that discussions take place with regard to programme commitments which translate into the Programme documents which are updated and agreed after every mission. The review missions, the 9th of which begins today, involve a large number of technical meetings which are attended by officials from my Department, the Department of Public Expenditure & Reform and when appropriate from other Departments, the Central Bank and the NTMA. A wide range of topics are covered at these meetings, including financial reforms, structural reforms, economic developments and the progress of the Programme itself.
Following each review mission the external partners and the Irish authorities agree updated programme documents, specifically the Memorandum of Understanding on Specific Economic Policy Conditionality, the Memorandum of Economic and Financial Policies and the Technical Memorandum of Understanding. The programme documents outline the policies discussed with our external partners and detail the commitments which we have agreed to. Once the documents are finalised, the Letters of Intent are signed jointly by the Minister for Finance and the Governor of the Central Bank and are issued to the EU and the IMF, along with the accompanying programme documents. The Programme documents then go through an EU and IMF approval procedure and once approved these documents are laid before the Houses of the Oireachtas and placed on the Department of Finance website following their transmission.
241. Deputy Robert Dowds asked the Minister for Finance if he will outline the methods of payment available to persons in relation to the property tax. [3933/13]
View answer283. Deputy Martin Heydon asked the Minister for Finance the position regarding the options for the payment of the property tax; if there is a facility to pay the tax by instalments; and if he will make a statement on the matter. [4523/13]
View answerI propose to take Questions Nos. 241 and 283 together.
I am advised by the Revenue Commissioners that during March 2013 property owners will receive their LPT return from Revenue together with an LPT booklet, which will provide details of the full range of payment options available to pay LPT. The LPT return must be submitted and payment details provided to Revenue by 7 May, if using the paper return, and by 28 May if using the online facility.
A range of payment options are available to pay LPT. Payment can be made in full by way of a Single Debit Authority which is the equivalent of an electronic cheque, online using a debit or credit card, or in cash through approved service providers. There will also be the option to pay LPT in equal instalments over the period 1 July to end December 2013. Instalment payments can be made by deduction at source from employment, occupational pension income or from certain payments from the Departments of Social Protection and Agriculture, Food and the Marine by direct debit or in cash through approved service providers. Revenue will announce details of the approved service providers as part of their information campaign in March.
The single debit authority payment will be deducted from the nominated bank account on 21 July 2013 while payments made by direct debit will commence on 15 July 2013 and will be deducted on 15th day of each month thereafter. Phased payment options made by way of deduction at source will commence from 1 July 2013 onwards and phased payments by cash through a service provider should be spread equally over the period 1 July to end December 2013. Finally, some owner-occupiers, subject to certain conditions, may qualify for full deferral or for partial deferral of 50% of the LPT due. In the case of partial deferral, a payment option must be selected on the LPT return to pay the balance of the LPT due.
242. Deputy Pearse Doherty asked the Minister for Finance if any of the covered institutions provided non-financial bonuses to their senior staff, such as shares, holidays, increased pension contributions, cars or other in the years 2009, 2010, 2011 or 2012. [3963/13]
View answerAs the Deputy will be aware officials in my Department and Mercer have been working on a remuneration review of the Covered Banks and do not currently have the information you have requested. My officials and the banks have provided a very significant level of detail on remuneration and pensions in the Covered Banks and other institutions in tight timeframes.The further more detailed information sought in this question is not available to my Department at the present time and the compilation of this information, particularly the historic element, is likely to delay completion of the Mercer Remuneration Report which is a Government priority. I have committed to publishing the details underpinning the review in view of the public interest in the matter. The report will provide a comprehensive and professional analysis of remuneration structures and levels across the Covered Banks both now and before the onset of the banking crisis. As part of the review process I will ask my officials to engage with the banks to agree an appropriate level of public disclosure relating to remuneration that ensures an appropriate balance between the public good and the commercial and data protection issues which arise for the Covered Banks.
243. Deputy Michelle Mulherin asked the Minister for Finance the number of intoxicating liquor licences that have lapsed for each year from 2002 until 2007 inclusive; the reasons the licences have lapsed; and if he will make a statement on the matter. [3977/13]
View answerI am informed by the Revenue Commissioners that the numbers of lapsed licences for each of the years 2002 to 2007 inclusive, is set out below under various categories. I am further advised by the Revenue Commissioners that traders are not obligated to inform Revenue as to why they have decided to let a licence that they hold lapse. Accordingly, the Revenue Commissioners are not in a position to comment on this matter.
|
Licence Type |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
Beer & Wine Retailer's Off Licence |
1 |
|||||
|
Cider Retailer's Off Licence |
||||||
|
Publican's Licence (6-Day) |
||||||
|
Publican's Licence (7-Day Ordinary) |
32 |
28 |
14 |
6 |
4 |
2 |
|
Publican's Licence (Ordinary) Hotel - 1902 Act (Public Bar) |
3 |
|||||
|
Publican's Licence (Ordinary) Hotel - 1902 Act. (Resident's Bar) |
||||||
|
Publican's Licence (Ordinary) Hotel - BF - 1902 Act (Public Bar) |
6 |
13 |
2 |
2 |
1 |
|
|
Publican's Licence (Ordinary) Hotel - BF - 1902 Act (Resident's Bar) |
2 |
2 |
||||
|
Publican's Ordinary Railway Refreshment Rooms Licence |
||||||
|
Special Restaurant Licence |
3 |
1 |
1 |
|||
|
Spirit & Beer Retailer's Off Licence |
1 |
|||||
|
Spirit & Wine Retailer's Off Licence |
||||||
|
Spirit, Beer & Wine Retailer's Off Licence |
3 |
|||||
|
Wholesaler Dealer in Beer |
1 |
|||||
|
Wholesaler Dealer in Beer & Spirits |
1 |
|||||
|
Wholesaler Dealer in Beer & Wine |
1 |
|||||
|
Wholesaler Dealer in Beer & Wine Retailer's Off Licence |
||||||
|
Wholesaler Dealer in Beer, Wine & Spirits |
2 |
1 |
1 |
|||
|
Wholesaler Dealer in Spirits & Spirits Retailer's Off Licence |
||||||
|
Wholesaler Dealer in Wine & Spirits, & Wine Retailer's off Licence |
||||||
|
Wholesaler Dealer in Wine & Wine Retailer's Off Licence |
2 |
|||||
|
Wine Retailer's Off Licence |
13 |
7 |
2 |
244. Deputy Michael McGrath asked the Minister for Finance the amount of loans maturing under the EU / IMF programme in each year from 2015 in tabular form; and if he will make a statement on the matter. [4106/13]
View answerThe data requested by the Deputy is set out in the table below which has been supplied by the National Treasury Management Agency (NTMA) and is also available on the NTMA’s website. The table shows the amounts maturing under the EU/IMF programme in each year from 2015. The figures reflect the position as at end-December 2012, at which point just under €56 billion of the €67.5 billion in external funding available under the EU/IMF programme had been drawn down. The figures in the table do not reflect the agreement at the recent Eurogroup and ECOFIN meetings to examine the extension of maturities on EU/IMF Programme EFSF and EFSM loans.
|
Year of Maturity |
EU/IMF & Bilateral Facilities as at end-December 2012 * |
|
- |
Amount maturing |
|
- |
€m |
|
2015 |
6,854 |
|
2016 |
6,144 |
|
2017 |
3,161 |
|
2018 |
7,059 |
|
2019 |
5,892 |
|
2020 |
4,398 |
|
2021 |
5,559 |
|
2022 |
3,683 |
|
2023 |
0 |
|
2024 |
0 |
|
2025 |
0 |
|
2026 |
2,000 |
|
2027 |
1,000 |
|
2028 |
2,300 |
|
2029 |
0 |
|
2030 |
0 |
|
2031 |
0 |
|
2032 |
3,000 |
|
2033 |
0 |
|
2034 |
0 |
|
2035 |
0 |
|
2036 |
0 |
|
2037 |
2,800 |
|
2038 |
0 |
|
2039 |
0 |
|
2040 |
0 |
|
2041 |
480 |
|
2042 |
1,500 |
* The figures in the table are unaudited figures and include the effect of currency hedging transactions. Rounding can affect totals.
245. Deputy Michael McGrath asked the Minister for Finance if he has asked the IMF to consider extending maturities of loans to Ireland in a manner similar to the consideration being given to extending loans from the EFSF and EFSM; and if he will make a statement on the matter. [4107/13]
View answerIn 2010 the IMF approved a programme under the Extended Fund Facility (EFF) to Ireland amounting to SDR 19.5 billion, which equates to €22.5 billion, as part of the overall EU/IMF programme of financial support. The IMF Executive Board has made a decision on the appropriate amortization schedule for EFF programmes with any member country of the IMF. This decision provides that repayments be made in 12 equal six-monthly instalments, within an outside range of four to ten years after each such disbursement. Ireland’s amortisation schedule reflects the parameters established by the IMF Executive Board. It is not the IMF’s practice to extend repayment schedules, and we have not made such a request.
At the end of the eighth EU/IMF review mission, in October, I indicated that we would be discussing the measures necessary for a successful exit with the Troika. Discussions with Troika officials on exit options will be part of the ninth review mission, which started today. All options will be considered in the light of what is appropriate for Ireland, including the terms and conditions attaching to them. Evidently this will require further consideration and no decisions have been taken to date.
246. Deputy Michael McGrath asked the Minister for Finance the preconditions which apply in order for Irish Government bonds to be eligible for purchase under the ECB's outright monetary transactions; and if he will make a statement on the matter. [4108/13]
View answerThe European Central Bank (ECB) has legal personality under public international law, and is fully independent in the carrying out of its functions. This independence is enshrined in the EU Treaties. The ECB has stated that Outright Monetary Transactions (OMT) will be considered for future cases of EFSF/ESM macroeconomic adjustment programmes or precautionary programmes. They may also be considered for Member States currently under a macroeconomic adjustment programme when they are regaining bond market access.
The ECB has also stated that a necessary condition for OMT is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme. Such programmes can take the form of a full EFSF/ESM macroeconomic adjustment programme or a precautionary programme (Enhanced Conditions Credit Line), provided that they include the possibility of EFSF/ESM primary market purchases. The ECB will seek the involvement of the IMF for the design of the country-specific conditionality and the monitoring of such a programme.
The ECB notes that its Governing Council will consider OMT to the extent that they are warranted from a monetary policy perspective as long as programme conditionality is fully respected, and terminate them once their objectives are achieved or when there is non-compliance with the macroeconomic adjustment or precautionary programme. The ECB’s Governing Council will decide on the start, continuation and suspension of OMT, following a thorough assessment, in full discretion and acting in accordance with its monetary policy mandate. I believe the ECB’s announcement regarding its OMT programme is a significant development and is viewed as such by the financial markets.
247. Deputy Michael McGrath asked the Minister for Finance the discussions he has had with the troika in respect of the possibility of putting in place precautionary funding lines when the Ireland EU-IMF programme concludes; and if he will make a statement on the matter. [4109/13]
View answerIreland is entering the final year of our EU/IMF programme of financial assistance and we are preparing to exit that programme. At the end of the eighth, EU/IMF review mission, in October, I indicated that we would be discussing the measures necessary for a successful exit with the Troika. This discussion will be initiated during the ninth review mission, which started today. All options will be considered in the light of what is appropriate for Ireland, including the terms and conditions attaching to them. Evidently this will require further consideration and no decisions have been taken to date.
250. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 99 of 20 December, 2012 and in respect of the part of the question dealing with tax breaks on rental income from foreign property, if he will provide a breakdown by country of the location of the foreign properties with details of the amount of tax foregone by country; the rationale for continuing the regime whereby approximately €70 million of tax revenue each year is lost through allowing landlords to offset interest on borrowings against the rental income derived from properties outside the State; the benefits to the State of continuing this tax break; if any cost-benefit analysis has been undertaken of this tax break and if unpublished will he now publish same; and if he will consider using the Finance Bill to eliminate this tax break. [4133/13]
View answerI am informed by the Revenue Commissioners that as the information furnished in income tax returns in relation to foreign rental income does not require the location of these properties to be identified it is not possible to provide a breakdown of the properties in question by country of location as requested by the Deputy. I am also advised by the Commissioners that the legislative provision which allows a deduction for interest on borrowings used for the purchase, improvement or repair of rental property outside the State (section 71(4) of the Taxes Consolidation Act 1997 (TCA 1997)) was introduced by Finance Act 1974, and provides a similar deduction in respect of interest for the owners of such property as applies in respect of owners of rental property in the State (section 97(2)(e) TCA1997).
Rental income received by a property owner who is resident or ordinarily resident in the State from property outside the State is taxable here under the provisions of the TCA1997. As such, taxable rents from property outside the State form part of the property-owner’s total taxable income and are subject to tax here at the applicable rates in force when the charge to tax arises, currently 20% and 41% for income tax and 25% for corporation tax. They are also subject to the Universal Social Charge in the hands of an individual.
Discontinuing the existing interest deduction for properties outside the State could fall foul of EU law on grounds of discrimination in that different tax treatments would apply here for some residents of the State as compared with other residents of the State. In addition, it would likely fall foul of EU law in terms of restricting the free movement of capital within the Union. In those circumstances, discontinuing the interest deduction for foreign rental property could not be contemplated without a similar abolition of the deduction for all rental property owners. Such a move would have broader economic impacts, for example, by acting as a disincentive to potential investors in the Irish residential property market at a time when stabilisation and normalisation of the market is desirable.
251. Deputy Michael McGrath asked the Minister for Finance in view of the usefulness of his carbon tax relieving measures for environmentally friendly heat and power cogeneration in Finance Act 2012, when it is proposed to designate competent authorities under Section 81(g) of the Finance Act 2012 to review and approve systems appropriate to the relief; and if he will make a statement on the matter. [4136/13]
View answerI have decided that that the Commission for Energy Regulation should be the designated authority for the relief set out in Finance Act 2012 and CER has acceded to my request to perform this function. The process of designation is underway and a number of issues are being finalised between Revenue and the Commission for Energy Regulation so that the relief can be applied.
252. Deputy Michael Lowry asked the Minister for Finance if his attention has been drawn to a case relating to stamp duty and the transfer of farming land (details supplied) in County Tipperary; if he will make an exemption in this case; and if he will make a statement on the matter. [4137/13]
View answerI am informed by the Revenue Commissioners that based on the information provided they are unable to locate any documentation relating to the two parties concerning the property mentioned. If the Deputy can provide a reference number, a further search will be made to retrieve the documentation and a comprehensive reply will issue. The person concerned or the Deputy may contact the Dublin Stamping District, Dublin Castle Dublin 2, telephone number 01 - 8589394 who will provide assistance on the matter.
254. Deputy Noel Grealish asked the Minister for Finance the discussions that are ongoing between his Department and insurance companies regarding flood insurance cover for people whose homes flooded in the past. [4168/13]
View answerAt the outset, it should be noted that the issue of flood cover and its unavailability is one which I am familiar with. I am also very conscious of the difficulties that the absence of such cover can causes to householders. The Deputy will be aware, that the issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are accepting. These are often considered on a case by case basis and it is important to be clear that neither the Government nor the Central Bank has any influence over this matter. Consequently I am not in a position to direct insurance companies to provide flood cover to specific individuals.
However, I appreciate the issue the Deputy has raised and believe that there are a number of avenues that can be explored in order to try and resolve this matter satisfactorily. Firstly, individuals can contact the Irish Insurance Federation which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at iis@iif.ie. Furthermore, if there is not a satisfactory outcome as a result of this approach, then there is the option of referring the matter to the Financial Services Ombudsman who deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers. The Office can be contacted at http://www.financialombudsman.ie/ and is a free service to the complainant.
It should be noted that the Office of Public Works is committed to doing all it can to alleviate the impact of flooding through the provision of defences and by taking steps to manage and reduce flood risk in the future through a strategic and sustainable approach under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This commitment is underpinned by a very significant capital works investment programme which, along with expenditure on maintenance of arterial drainage schemes, will see up to 250 million euro being spent on flood relief measures over the next five years.
In addition because of the difficulties currently being experienced by householders in certain areas in accessing flood insurance, the OPW has had a number of meetings with the Irish Insurance Federation (IIF). The discussions are aimed with a view to reaching agreement on a sustainable system of information sharing in relation to completed flood alleviation schemes and works undertaken by the OPW or, in certain instances, by local authorities with OPW funding, and where the standard of protection afforded by these works could be verified. This should lead to flood cover being available to those in areas where remedial works have been satisfactorily completed.
255. Deputy Noel Grealish asked the Minister for Finance when he proposes to provide for local property tax to be deductible from rental income; if he will clarify his statement that it will be introduced on a phased basis; if primary legislation or ministerial order is required, and if it is the former, the legislative vehicle that he will use; if he will also consider extending the expense status for the 2013 tax year only of the other local service charges for the remainder of their existence; and if he will make a statement on the matter. [4171/13]
View answerThe Thornhill Group, the inter-departmental group, chaired by Dr Don Thornhill, established to consider the structures and modalities of a property tax, recommended that owners and not occupiers be the liable persons for the local property tax. This was also the view of the 2009 Commission on Taxation. The Thornhill Group recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. This is not provided for in the Finance (Local Property Tax) Act 2012; it is the intention of the Government to introduce such a provision on a phased basis but the manner in which this will happen has not been decided. Such change would be provided for by primary legislation.
I am advised by the Revenue Commissioners that the Household Charge and the Non-Principal Private Residence (NPPR) Charge are not allowable deductions from rental income for tax purposes. There will be no Household Charge in 2013 and there are no plans to change this position in respect of the NPPR charge for the 2013 tax year.
256. Deputy Noel Grealish asked the Minister for Finance if he will consider whatever legislative or ministerial order changes are required to allow individual private landlords to be considered as operating a business, rather than being treated as recipients of unearned income; and if he will make a statement on the matter. [4172/13]
View answerI am advised by the Revenue Commissioners that under existing legislation income tax is charged under Schedule D of the Taxes Consolidation Act 1997 in respect of a number of sources of income, which are classified into five separate Cases. Under this provision, rent received by landlords (individuals and companies) from property in the State is chargeable to tax under Case V, while income from trading activity in the State is chargeable under Case I. To make the change suggested by the Deputy, that is to treat the generation of rental income as a trading business, would require a legislative change to effectively reclassify rental income as trading income for tax purposes. A major consequence of such a move would be the removal of the current ring-fence on rental losses which restricts the set-off of such losses solely to rental profits of future years. Allowing such losses to be set side-ways against other income of landlords would reduce overall tax receipts.
