Written Answers Nos. 229-247
229. Deputy Michael McGrath asked the Minister for Finance his plans to assist people in difficulty when their mortgage is held with an institution not covered by the mortgage arrears resolution targets programme; and if he will make a statement on the matter. [18490/13]
View answerThe Deputy will be aware that the Central Bank recently announced new measures to address mortgage arrears, including the publication of performance targets for the main mortgage banks. The targets are set in relation to both Principal Dwelling Homes and Buy to Let mortgages. Performance targets have been set for: ACC; AIB; Bank of Ireland; KBC Bank Ireland; Permanent TSB; and Ulster Bank. The Central Bank has advised that these institutions cover the vast majority of the mortgage book in Ireland, accounting for around 90% of mortgages held and that it will examine whether it should extend the targets to other mortgage lenders in due course. The Central Bank also continues to engage with all regulated lenders to ensure that adequate mortgage arrears resolution strategies are in place.
The Central Bank’s Code of Conduct on Mortgage Arrears remains a key protection for those cooperating mortgage holders who are in difficulty in meeting their mortgage commitments. The Code provides, inter alia, that mortgage lenders should allow for a flexible approach in the handling of arrears and pre-arrears cases and that they should aim, as far as possible, at assisting the borrower who is in genuine difficulty having regard to the specific circumstances in individual cases. In particular, the Code provides that a lender’s Arrears Support Unit (ASU) must base its assessment of the borrower’s case on the full circumstances of the borrower including:
- the personal circumstances of the borrower;
- the overall indebtedness of the borrower;
- the information provided in the standard financial statement (SFS);
- the borrower’s current repayment capacity, and
- the borrower’s previous history.
The Code, which applies to all mortgage lending activities of all regulated entities, except Credit Unions, operating in the State, is currently being reviewed by the Central Bank of Ireland. The public consultation process has been completed and the Central Bank expects to publish the revised Code before the end of May.
Separately from this Central Bank action, the new personal insolvency system, in particular the new resolution frameworks provided for in the Personal Insolvency Act, will also shortly be available to borrowers who are in significant difficulty in their mortgage repayments. Utilising this process, the borrower will be in a position to consult an independent personal insolvency practitioner and where necessary to make a formal and realistic personal insolvency arrangement proposal to all eligible creditors, including a mortgage lender. In such a situation the creditors will be obliged to formally consider and vote on the arrangement as proposed by the debtor. In the event of a refusal by creditors, the debtor will also have access to the reformed bankruptcy framework, which has significantly reduced automatic discharge period to three years. I would also remind the Deputy that, under the mortgage advisory service developed by the Department of Social Protection, independent financial advice is available to borrowers who have been offered a long term forbearance option by the lender and a panel of around 2,000 qualified accountants is now in place to provide this service.
230. Deputy Bernard J. Durkan asked the Minister for Finance if he will clarify any recent changes in respect of VRT/VAT allowance on motor vehicles for persons with special needs; and if he will make a statement on the matter. [18506/13]
View answerI understand from the Revenue Commissioners, who administer the Disabled Drivers and Disabled Passengers scheme, that the changes to which you refer are changes which were made in 2012 to ‘administrative practice’, to ensure that the provisions of SI 353/1994 are being adhered to correctly. The provisions of the Scheme have been in force since 1994; unfortunately, prior to this administrative review, looser interpretation had been made, but it was decided to take a stricter interpretation of the existing terms of the Regulations than had heretofore been the case. There have been no more recent changes with regard to the scheme.
231. Deputy Martin Heydon asked the Minister for Finance the reason persons who pay off their mortgages early are being penalised by certain banks; his plans to address this issue; and if he will make a statement on the matter. [18544/13]
View answerFirstly, I must confirm to the Deputy that it is not appropriate for me to comment on the loan arrangements of a particular borrower. However, I have been informed by the Central Bank that Section 121 of the Consumer Credit Act 1995 permits a mortgage lender to apply an early redemption fee in certain circumstances, which includes breaking a fixed rate contract.
The Central Bank has indicated to me that when credit institutions provide fixed rate mortgages to customers, they utilise wholesale funding at a fixed rate to match the fixed credit they provide to customers. If interest rates fall, credit providers may be locked into accessing wholesale market credit at a higher rate than they can charge consumers in the retail market. As a result, a cost arises which is covered through the charging of a break cost. In the current environment, interest rates have fallen and as a result there is a differential between the interest rate that the credit provider has locked into for the funds supplied to customers and what they can charge to customers, for the remaining period of the fixed rate loan.
232. Deputy Pat Deering asked the Minister for Finance if the Revenue Commissioners will recalculate the liability for inheritance tax paid by a person (details supplied) in County Carlow in view of the current capital value of the inheritance in question; and if he will make a statement on the matter. [18707/13]
View answerI am advised by the Revenue Commissioners that under Section 9 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 inheritance tax is charged on the taxable value of the inheritance. Section 28 of the CATCA 2003 states that the taxable value of the inheritance is the market value of the inheritance at the valuation date. Section 30.4 of the CATCA 2003 outlines the basis for establishing the valuation date of an inheritance as the earliest of the following dates:
- The date on which a personal representative is entitled to retain assets for the successor;
- The date when the asset is so retained;
- The date of delivery, payment to the successor.
The Revenue Commissioners have no authority under this legislation to re-calculate inheritance tax that was assessed on the market value applying on the correct valuation date.
233. Deputy Pearse Doherty asked the Minister for Finance the amount of cash being held on balance by the National Treasury Managemnt Agency; the reason for this volume of this cash holding; if this cash is receiving any return for the State; the impact it would have on the interest spent on debt servicing, were the cash balance or a portion thereof be used to pay off the debt. [18719/13]
View answerAt end-March the Exchequer had €28.5 billion on hand in cash and deposits. The end-March cash position benefitted from the front-loaded market funding undertaken in the first quarter of the year - some â7.5 billion was raised from long-term Government bond issuance in the first quarter out of a planned total of €10 billion - as well as the proceeds of just over €1 billion from the sale of Bank of Ireland contingent capital notes in January. Funds in the Exchequer are used for all the ongoing payments necessary for running the State, which include debt redemptions. While the Exchequer had €28.5 billion on hand in cash and deposits at end-March, there was a €4.6 billion bond redemption on 18 April which has since reduced the cash position.
The State earns a return on these cash balances and deposits, which the NTMA manages in a prudent manner consistent with minimising risk and always having sufficient cash on hand to cover any volatility which might arise. Notwithstanding the progress made in stabilising and improving the public finances it remains the case that the State will continue to run large, though declining Exchequer deficits in the coming years. For example, Budget 2013 estimated the cumulative Exchequer deficit over the years 2013-2015 at close to €35 billion. While the sale of the Bank of Ireland contingent capital notes, sale of Irish Life and the replacement of the IBRC Promissory Note with long-term Government bonds will help to reduce this requirement, it will nonetheless remain significant.
In addition to these day-to-day costs and as referred to above, the Exchequer must have sufficient resources to repay debt redemptions, including the recent €4.6 billion Government bond repayment on 18 April and a €7.6 billion Government bond repayment in mid-January 2014. The continuing Exchequer deficits and debt redemptions must be adequately and prudently funded. Decisions on the level of cash reserves take account of various factors in addition to the cost of maintaining such reserves. These factors include the potential risks of not maintaining an adequate and prudent cash balance, including the risk that the Exchequer would be unable to meet its obligations and that market interest rates would possibly be higher than would otherwise be the case due to the perception that the State had a precarious liquidity position.
The State is well positioned to have 12-15 months of advance funding in place when the EU/IMF Programme comes to a conclusion at the end of 2013, a level of funding which the Troika have noted in their recent reports on Ireland's progress in implementing the terms of the Programme of assistance. It is necessary, for reasons of prudence and to assure investors that they will be repaid upon redemption, that the Exchequer maintains a sufficiently strong cash position at year end.
234. Deputy Shane Ross asked the Minister for Finance further to Parliamentary Question No. 336 of 16 April 2013, the way he has cast his vote for each of the resolutions individually due for decision at the Bank of Ireland AGM on 24 April 2013; if he has not yet cast his vote, the way he intends to cast it; and if he will make a statement on the matter. [18747/13]
View answerThe Deputy may be aware that I have recently written to Bank of Ireland, along with the other domestic Banks that have received State investment, instructing them to respond by the end of April outlining their strategy to deliver savings of 6%-10% of total remuneration costs. I do not consider it appropriate to endorse the Director’s Remuneration at Bank of Ireland in advance of receiving this response. I have decided, therefore, to abstain from voting on Resolution 2 – Consider the Report on Directors’ Remuneration. I can confirm for the Deputy that I have voted in favour of each of the other Resolutions.
235. Deputy Pearse Doherty asked the Minister for Finance further to recent reporting that the Revenue Commissioners has recovered €45.5m from 328 individuals relating to trusts in Channel Islands, Switzerland, Liechtenstein, Isle of Man, Cayman Islands and the Seychelles, if he will outline the way the Revenue Commissioners will document these recoveries in its quarterly reporting of tax defaulters. [18757/13]
View answerI am informed by the Revenue Commissioners that the yield recovered under the Trusts and Offshore Structures investigation to the end of 2012 is €46.66m from 351 persons. The investigation commenced on 1 September 2009 and a qualifying disclosure initiative was launched within the parameters of the Code of Practice for Revenue Audit. This initiative required persons with undeclared tax liabilities, in respect of settlements on trusts and other structures, to make a disclosure and pay the related tax, interest and penalty liabilities by 31 October 2009. Under the Code of Practice details of persons who made such a qualifying disclosure and paid the liabilities are not publishable in Revenue’s quarterly list of tax defaulters. Details of persons who did not make a qualifying disclosure but who were subsequently found, following investigations by Revenue, to have a liability, are publishable in the normal way in the list of tax defaulters, subject to the case meeting the criteria applying to publication as a tax defaulter. One of the publication requirements is that the settlement is €33,000 or higher (€30,000 in respect of liabilities arising between 1 January 2005 and 1 January 2010).
In total 94 people availed of the qualifying disclosure initiative and paid €17.58m in tax interest and penalties. These 94 people were not listed in the tax defaulters list. A substantial number of the cases are still under investigation and have made a payment on account to Revenue. These cases are therefore not yet settled. Of the cases settled, 35 were over the publication threshold and were published in Revenue’s quarterly list of tax defaulters. The following table sets out an analysis of the yield recovered under the Trust & Offshore structures investigations.
|
Trusts & Offshore Investigations |
Total |
Tax |
Interest & Penalties |
Cases |
|
Voluntary |
€17.58m |
8.00 |
9.58 |
94 |
|
Follow up phase |
€29.08m |
17.41 |
11.67 |
257 |
|
Total |
€46.66m |
25.41 |
21.25 |
351 |
236. Deputy Pearse Doherty asked the Minister for Finance if it remains the case that the National Asset Management Agency will acquire the unsold remaining loans at Irish Bank Resolution Corporation in August 2013, or if that date has slipped; and if he will make a statement on the matter. [18758/13]
View answerI have been informed that should a bid be received for a loan that is not equal to or in excess of the independent valuation received, the loan will transfer at the valuation amount to NAMA. Work in relation to the sale and transfer of loans to third parties is on-going. The Special Liquidators are unable to comment at this time as to when this work will be completed.
237. Deputy Pearse Doherty asked the Minister for Finance the fees payable to date to KPMG in its role as special liquidator of Irish Bank Resolution Corporation [18759/13]
View answerThe Special Liquidators have confirmed that fee notes have not yet been issued by them in relation to the liquidation of IBRC.
238. Deputy Pearse Doherty asked the Minister for Finance if he will explain the approach of Allied Irish Banks, in which he controls 99.8% of the shares and which transferred €1.1bn to its pension fund to address a deficit in August 2012, and Permanent TSB, in which he controls 99.5% of the shares, which has written to members of its pension scheme threatening to halt contributions to the pension scheme unless scheme members accept large reductions in benefits [18760/13]
View answerAs the Deputy will be aware all the staff pension schemes within the Covered Institutions are separate entities set up under Trust and managed by Trustees and the individual circumstances and issues arising can vary widely between the institutions. The level of benefits payable under each scheme reflects the historical nature of the scheme and its funding position. It is a matter for the Trustees in consultation with the relevant employer to restructure the schemes in order to address deficits arising.
As the Deputy will be aware there are Relationship Frameworks in place with both AIB and Permanent TSB which provide the basis on which the relationship between the Minister and AIB and Permanent TSB are governed. The Relationship Frameworks recognise that AIB and Permanent TSB remain separate economic units with independent powers of decision and that the Boards and management teams retain responsibility and authority for determining their institution’s strategy and commercial policies and conducting their day-to-day operations.
Both AIB and Permanent TSB are independent institutions with independent pension fund trustees and they may adopt different approaches to address deficits in their pension funds. The Deputy will also be aware that the asset transfer to AIB’s pension scheme was directly linked to the bank’s Early Retirement and Voluntary Severance programme and was essential for the bank to be able to fund these plans. It was not connected with addressing any existing deficit in the bank’s pension fund. The Deputy will also be aware that the Minister, on behalf of the Government, has directed the Covered Institutions, including AIB and Permanent TSB to come up with plans to deliver savings of 6-10% of total remuneration costs, following the Mercer report.
239. Deputy Pearse Doherty asked the Minister for Finance following the Econfin statement on 12 April 2013, if he will set out, in tabular form, the old maturity of debt owing to the European contributors to the programme finance bailout together with the applicable interest rates, and the new maturities and new interest rates if different [18761/13]
View answerAt the Ecofin and Eurogroup meetings in Dublin earlier this month, EU and Euro-area Finance Ministers agreed in principle, subject to national procedures, to lengthen the maturities of the EFSF and EFSM loans to Ireland and Portugal by increasing the weighted average maturity of the loans by 7 years. This is also conditional on continued successful programme implementation being confirmed by the Troika together with the 9th review of the Irish adjustment programme and the 7th review of the Portuguese programme. The 9th review of Ireland’s programme has now completed all approval stages by both the IMF and the EU.
The Ministers also noted that the extension would smooth the debt redemption profile of both countries and lower their refinancing needs in the post-programme period. The detailed implementation of the extension remains to be agreed. The effect of this will depend on the mix of loans extended and the maturities involved. This will be agreed between the NTMA, the EFSF and the EFSM.
Given the above, the table below (the information in which is available on the NTMA’s website) shows only the existing maturity of EFSF and EFSM loans. The bilateral loans are not affected by this agreement.
The interest rates for the EU facilities are already provided at or close to their cost of funds, and these rates are not affected by this decision on maturities.In terms of the EFSF, €6.7 billion of Ireland’s EFSF loans are at fixed interest rates which were based on matched EFSF bond/loan structures. As a result of changes to the EFSF’s structure which removed the direct link between specific bond issues and programme countries, the balance of Ireland’s disbursed EFSF loans, currently €5.5 billion, are part of a pooled system whereby all programme countries pay the same interest rate. The pooled interest rate is calculated daily and is based on the EFSF’s cost of funds in managing the pool. This can be characterised as the weighted average cost of its bond and bill issuance. As at 31 March 2013 the blended interest rate on Ireland’s EFSF loans was 2.66%.
Exceptionally, Ireland has one EFSF loan tranche of €1.27 billion which is considered to be part of the pool but has a fixed interest rate until February 2015, at which point it will roll at the pooled interest rate.
The effective interest rate on Ireland’s EFSM loans is based on the EFSM’s cost of funds when it issues bonds. Such issuance is matched against the loans. Some of its matched issuance can be spread across both Ireland and Portugal. As at 31 March 2013, the blended interest rate on Ireland’s EFSM loans was 3.10%.
As at 31 March 2013, the overall blended interest rate on Ireland’s programme loans was 3.32%.
EFSF/EFSM Liabilities Outstanding at end-March 2013
Liabilities outstanding at end March 2013 on EFSF/EFSM loans
|
Lender |
Nominal Loan Amount* |
Date of Draw Down |
Maturity Date |
Term from Date of Drawdown |
|
European Financial Stabilisation Mechanism (EFSM) |
EUR 5.00 billion |
12-Jan-11 |
04-Dec-15 |
4.9 yrs |
|
EUR 3.40 billion |
24-Mar-11 |
04-Apr-18 |
7.0 yrs |
|
|
EUR 3.00 billion |
31-May-11 |
04-Jun-21 |
10.0 yrs |
|
|
EUR 2.00 billion |
29-Sep-11 |
04-Sep-26 |
14.9 yrs |
|
|
EUR 0.50 billion |
06-Oct-11 |
04-Oct-18 |
7.0 yrs |
|
|
EUR 1.50 billion |
16-Jan-12 |
04-Apr-42 |
30.2 yrs |
|
|
EUR 3.00 billion |
05-Mar-12 |
04-Apr-32 |
20.1 yrs |
|
|
EUR 2.30 billion |
03-Jul-12 |
04-Apr-28 |
15.8 yrs |
|
|
EUR 1.00 billion |
30-Oct-12 |
04-Nov-27 |
15.0 yrs |
|
|
EFSM EUR Equivalent Total |
€21.70 billion |
12.4 yrs weighted average life |
||
|
European Financial Stability Facility (EFSF) |
EUR 4.19 billion** |
01-Feb-11 |
18-Jul-16 |
5.5 yrs |
|
EUR 3.00 billion |
14-Nov-11 |
04-Feb-22 |
10.2 yrs |
|
|
EUR 1.27 billion |
12-Jan-12 |
04-Feb-15 |
3.1 yrs |
|
|
EUR 2.80 billion |
03-Apr-12 |
03-Apr-37 |
25.0 yrs |
|
|
EUR 0.48 billion |
19-Jul-12 |
19-Jul-41 |
29.0 yrs |
|
|
EUR 1.00 billion |
23-Aug-12 |
23-Aug-19 |
7.0 yrs |
|
|
EFSF EUR Equivalent Total |
€12.74 billion |
11.7 yrs weighted average life |
Notes :
Rounding can affect totals.
* Euro equivalents are translated at the reporting date exchange rates, taking account of the effect of currency hedging transactions. The net euro amount received by the Exchequer was €57.3 billion after adjustment for below par issuance, deduction of a prepaid margin (Note 3), and the effect of foreign exchange transactions.
** A prepaid margin of €0.53 billion was deducted from the EFSF loan of €4.19 billion drawdown on 1 February 2011 giving a net liability of €3.66 billion. This margin prepayment will be refunded to Ireland in 2016. The total net liability of €57.44 billion included in the National Debt (€166.17 billion at end March 2013) takes account of this reduction.
240. Deputy Michelle Mulherin asked the Minister for Finance if he will consider extending the closing date for filing local property tax returns to facilitate all those people who have still had no communication from the Revenue Commissioners, many of whom are unable to use or have no access to a computer or the internet; and if he will make a statement on the matter. [18773/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) provides that a liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which will be 1 May 2013 for the year 2013. The Act also provides that owners of multiple properties must file their LPT returns online. A key aspect of the work undertaken by Revenue was the development of a comprehensive register of residential properties in the State. This register is being used to issue correspondence to property owners and work is still in progress to ensure, as far as possible, that all property owners will be contacted. The process to issue LPT Returns and supplementary information to the owners of in excess of 1.62 million residential properties has been ongoing since last month and is almost complete.
However, LPT is a self-assessed tax and therefore liable persons are obliged to calculate the tax due based on their assessment of the market value of their property, file their return by the relevant deadline and pay the tax due. This obligation applies to all owners whether or not they receive a return form from Revenue. They should contact the LPT helpline at 1890 200 255 or they can login to LPT online at www.revenue.ie and file a return by clicking on the "I have not received a Property Pin" tab.
The Deputies will be aware that Revenue has provided a wide range of payment options for LPT, including payment by instalments by direct debit or deduction at source. The closing date of 7 May for paper filing of LPT Returns has been chosen with a view to the logistics of ensuring that the chosen payment option can be activated in good time for the July payment dates. The e-filing closing date of 28 May is the de facto extension to the filing date for paper LPT Returns. The online system is secure and user friendly, with built in calculators and easy access to guidance.
For property owners for whom e-filing is not practical, the legislation provides that another person may file on their behalf, and Revenue has made it clear on several occasions that they can visit their local Revenue office where computers and assistance to e-file will be available. In addition, Revenue has made arrangements for property owners to pay and file by telephone via the LPT helpline 1890 200 255. To avail of this option, the caller needs their property details, PPSN and details of the bank account or other source from which they wish the payment to be deducted.
The requirements of a property owner to self-assess and file an LPT return even if he or she does not receive a form from Revenue, and the telephone filing arrangements, have been set out in national and local newspaper advertisements last week. I am satisfied that this range of filing and payment options provides property owners with the opportunity to meet their LPT obligations, and I do not propose to extend the closing date.
241. Deputy Michael McCarthy asked the Minister for Finance if he will confirm if a person who holds a US passport and an Irish passport is eligible to buy shares in financial institutions in the State; if he will advise on the eligibility criteria that would apply in such cases; and if he will make a statement on the matter. [18802/13]
View answerWhere the ownership of a financial institution is in the form of shares quoted on a stock exchange it would be open to a person as described by the Deputy to purchase shares in that financial institution. However the Deputy may be interested to note that in certain cases the Central Bank’s prior approval is required where an individual or legal entity seeks to undertake an acquiring transaction which represents 10% or more of the capital or of the voting rights or which makes it possible to exercise a significant influence over the management of that institution. In such a situation the Central Bank will assess the proposed acquirer in line with the criteria as set out in Statutory Instrument 206 of 2009.
242. Deputy Sandra McLellan asked the Minister for Finance the amount of money generated from VAT annually; if he will provide a breakdown of the way that the money is spent; and if he will make a statement on the matter. [18816/13]
View answerThe Department of Finance has a publicly available databank on its website with comprehensive tax data where information on annual yields can be found (http://databank.finance.gov.ie/). For information, the following table lists the annual amounts of VAT receipts received over the period 2009-2012.
|
2009 €million |
2010 €million |
2011 €million |
2012* €million |
|
|
Value Added Tax |
10,670 |
10,101 |
9,741 |
10,171 |
*2012 VAT receipts are unaudited figures and are subject to revision
Source: Department of Finance
Tax revenues are not generally assigned to particular areas of expenditure. Rather they are available, along with non-tax revenues, capital receipts as well as moneys sourced from borrowing to fund overall expenditure.
243. Deputy Billy Timmins asked the Minister for Finance further to Parliamentary Question No. 178 of 26 March 2013 regarding the Mercier Report (details supplied); and if he will make a statement on the matter. [18861/13]
View answerI have noted the points made in the correspondence supplied. I share the frustrations outlined both on individual and collective levels that our citizens are now experiencing – in many cases not resulting from their own actions. Furthermore, I stated in my previous reply, (ref no. 14807/13 of 26th Mar 2013) I acknowledge the sacrifices and changes made by bank employees to date at all levels and recognise that this has been achieved without major industrial unrest in what is a critically important sector.
However, the Government has taken the decision that with the remaining Covered Institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. I have sought plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains. This is essential if they are to return to profitability, be in a position to support the economy and repay the State’s investment through a return to private ownership.
244. Deputy Finian McGrath asked the Minister for Finance if he will provide in tabular form the number of civil/public servants under the remit of his Department who earn more than €500,000, between €400,000-€500,00, €300,000 - €250,000, €250,000 - €200,000, €200,000 - €150,000, €150,000 - €100,000, €100,000 - €80,000, €80,000 - €60,000, €60,000 - €40,000 and less than €30,000. [18869/13]
View answer245. Deputy Finian McGrath asked the Minister for Finance if he will provide in tabular form the number of politicians under the remit of his Department who earn more than €500,000, between €400,000 and €500,00, €300,000 to €250,000, €250,000 to €200,000, €200,000 to €150,000, €150,000 to €100,000, €100,000 to €80,000, €80,000 to €60,000, €60,000 to €40,000 and less than €30,000. [18878/13]
View answerI propose to take Questions Nos. 244 and 245 together. The following table sets out the salary bands in respect of my Department.
|
Earnings Band |
Number of employees |
|
0-10K |
26 |
|
10-20K |
19 |
|
20-30K |
72 |
|
30-40K |
72 |
|
40-50K |
40 |
|
50-60K |
36 |
|
60-70K |
3 |
|
70-80K |
34 |
|
80-90K |
33 |
|
90-100K |
10 |
|
100-115K |
9 |
|
125-150K |
6 |
|
150K-200K |
2 |
|
200K-250K |
1 |
The Revenue Commissioners have provided me with the following information in relation to the earnings of Revenue staff serving on 31/12/2012. The figures are net of any voluntary surrender of salary under Section 483 of the Taxes Consolidation Act, 1997.
|
Earnings band in 2012 (€k) |
Number of employees |
|
> 200 |
0 |
|
150-200 |
3 |
|
100-150 |
74 |
|
80-100 |
179 |
|
60-80 |
600 |
|
40-60 |
2,383 |
|
30-40 |
1,546 |
|
<30 |
1,335 |
The table for the Appeals Commissioners is as follows:
|
Earnings band in 2012 (€k) |
Number of employees |
|
> 200 |
0 |
|
150-200 |
2 |
|
100-150 |
0 |
|
80-100 |
0 |
|
60-80 |
0 |
|
40-60 |
1 |
|
30-40 |
0 |
|
<30 |
2 |
Details for the Disabled Drivers Scheme are as follows:
1 WTE earns between €150,000 - €200,000
1 WTE earns between €40,000 - € 60,000
Details for the Irish Fiscal Advisory Council are as follows:
Number of persons between €100,000 – €80,000: 1 person
Number of persons between €60,000 – €40,000: 2 people
National Treasury Management Agency
The National Treasury Management Agency (NTMA) provides asset and liability management services to Government. Businesses managed by the NTMA include borrowing for the Exchequer and management of the National Debt, the State Claims Agency, the New Economy and Recovery Authority, the National Pensions Reserve Fund and the National Development Finance Agency. It assigns staff to the National Asset Management Agency and also provides it with business and support services and systems. All NAMA staff are employees of the NTMA.
The NTMA business model is specifically designed to carry out commercial and market-facing functions while being funded from the Exchequer (except in the case of NAMA which reimburses the NTMA from income generated). Under the NTMA business model, its remuneration structure is such that there are no general pay grades and no pay scales and all staff are on individually-negotiated contracts.
The NTMA publishes information on salaries by salary band in its Annual Report. The 2012 Annual Report is scheduled for publication in July 2013. Salary band information was updated by the NTMA in information provided to the Dail Public Accounts Committee last December. That information is set out as follows:
NTMA Salaries by Salary Band 31 October 2012
|
NTMA (excluding NAMA) |
NAMA |
Total |
|
|
Up to €50,000 |
92 |
26 |
118 |
|
€50,001 to €100,00 |
122 |
108 |
230 |
|
€100,001 to €150,000 |
34 |
71 |
105 |
|
€150,001 to €200,000 |
14 |
18 |
32 |
|
€200,001 to €250,000 |
3 |
1 |
4 |
|
€250,001 to €300,000 |
5 |
1 |
6 |
|
€300,001 to €400,000 |
2 |
2 |
4 |
|
€400,001 to €500,000 |
1 |
0 |
1 |
|
Total |
273 |
227 |
500 |
Notes: The public service pension deduction is applied to NTMA employees.
All fifteen NTMA employees whose salaries exceeded €200,000 agreed to the Minister for Finance’s request of December 2011 that they waive 15% of salary or such amount of salary as exceeds €200,000 if application of the full 15% reduction would bring their salary to below €200,000. These reductions are reflected in the above table.
246. Deputy Finian McGrath asked the Minister for Finance the number of persons here earning in excess of €100,000; and the estimates of income generated if the tax rate for this group were to be increased by 1%, 2%, 5% and 10%. [18880/13]
View answerI am advised by the Revenue Commissioners that the number of income earners earning gross income in excess of €100,000, estimated by reference to projected incomes for 2013, is 108,700. It is assumed that the Deputy is referring to the introduction of a third rate of income tax of either 42%, 43%, 46% or 51% to be applied on the portion of taxable incomes in excess of €100,000 per annum. In addition, it is also assumed that the threshold for the proposed new income 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. On that 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 the new rates would be of the order of €52 million, €104 million, €260 million and €520 million respectively.
However, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners. 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 the Revenue Statistical Report 2011. It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
247. Deputy Martin Ferris asked the Minister for Finance if persons paying property tax through the post office are subject to a transaction charge. [18892/13]
View answerI am advised by the Revenue Commissioners that Local Property Tax (LPT) can be paid through three different approved payment service providers - An Post TaxPay, Payzone and Omnivend. The appointed service providers have extensive nationwide outlets and can process payment of LPT either in full as a single payment or by phased payments on a weekly or monthly basis as best suits individual needs. The imposition of transaction charges is at he discretion of the individual service providers. I am advised that An Post levies a charge of €1 per transaction; Payzone levies a charge of 75 cent per transaction for payments up to €50, €1 per transaction for payments between €50.01 and €100 and €2 per transaction for payments over €100; and Omnivend charges a fee of 4% per transaction.
In regard to phased payments I am further advised by the Revenue Commissioners that there are two other options available. First, with effect from 1 July 2013 payment of LPT can be made by way of deduction at source from employment, occupational pension income, or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine. This option does not incur any fees or charges and facilitates payment of LPT in even amounts across the year in question.
Second, phased payments can also be made by way of direct debit from the property owner’s current account in a bank or other financial institution, including a credit union. In these cases the direct debit deductions will commence on 15 July 2013 and will be deducted on the 15th day of each month thereafter. Normal direct debit fees charged by financial institutions will apply to these payments.
