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Thursday, 25 Apr 2013

Written Answers Nos. 58 - 68

Carbon Tax Implementation

Questions (58)

Michael Healy-Rae

Question:

58. Deputy Michael Healy-Rae asked the Minister for Finance his views on carbon tax (details supplied); and if he will make a statement on the matter. [19582/13]

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Written answers

The carbon tax has been in place for all fuels other than solid fuels since 2010. As I was aware of the potential impact on lower income households, I chose not to introduce the carbon tax on solid fuels until after this winter period and I opted to introduce the tax in two phases i.e. €10 per tonne of CO2 from 1 May 2013 and a further €10 per tonne of CO2 from 1 May 2014 thus bringing the carbon tax on solid fuels in line with that on all other fossil fuels i.e. at €20 per tonne of CO2. The net effect of the €10 carbon tax from 1 May 2013 will be approximately €1.20 on a 40kg bag of coal and 26 cents on a bale of briquettes.

Data Protection

Questions (59)

Clare Daly

Question:

59. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 354 of 16 April 2013, if he make available a copy of the submission from a person (details supplied) stating their disapproval of a provision in the 2011 Finance Act, section 77, paragraphs 4 to 6. [19594/13]

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Written answers

As I stated in my previous reply to the Deputy on this matter I am aware of the issue raised. It has been under discussion between my officials, Revenue and the ODCE who are cooperating to implement an appropriate solution. Apart from direct contact between staff of the ODCE and my Department, the matter has also been noted in the 2011 Annual Report of the ODCE (page 15), available on their website. Therefore the issue, and the concerns of the former Director, are already in the public domain.

My Department does not have a record of a communication on this subject sent directly from Mr. Appleby to myself. Should the Deputy have any information that she wishes to make available to me I would be pleased to receive it.

Property Taxation Exemptions

Questions (60)

Clare Daly

Question:

60. Deputy Clare Daly asked the Minister for Finance the method by which home owners with pyrite may secure an exemption from payment of the local property tax. [19595/13]

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Written answers

As I advised in response to Parliamentary Question No. 85 on 17 April, Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three consecutive years from the charge to Local Property Tax (LPT) for residential properties that have been certified as having "significant pyritic damage". The methodology for the assessment of dwellings to establish significant pyritic damage will be prescribed in regulations to be made by the Minister for the Environment, Community and Local Government. I understand that the regulations are currently being finalised and will be published shortly.

I am advised by the Minister for the Environment, Community and Local Government that homeowners will be required to demonstrate significant pyritic damage in accordance with the recently published standard by the National Standards Authority of Ireland, IS 398 – Reactive Pyrite in sub-floor hardcore material – Part 1. This standard provides guidance on the building condition assessment, sampling and testing to be carried out to establish the presence of significant pyritic damage. To be eligible for an exemption from the LPT, a homeowner must obtain a certificate, from a competent person, confirming the presence of significant pyritic damage on the basis of a building condition assessment and having regard to the outcome of the testing and classification of the sub-floor hardcore material carried out in accordance with I.S. 398. Eligibility for an exemption will be determined by reference to the presence of significant pyritic damage in the relevant property concerned. Conscious of the need to reduce costs to affected homeowners, I understand that provision will be made in the Regulations being made by the Minister for the Environment, Community and Local Government for the use, where feasible, of test results from sampling and testing undertaken to classify the sub-floor hardcore material prior to the publication of I.S. 398. Such testing results must be validated by a competent person as being in accordance with, or equivalent to, I.S. 398. A building condition assessment will be required to be carried out by a competent person irrespective of when such testing is, or was, carried out.

A homeowner cannot claim the exemption until the relevant certificate has been issued. He or she should notify Revenue at that stage to claim the exemption. Special arrangements will apply in respect of 2013 and 2014 to facilitate homeowners in claiming an exemption. While homeowners who do not have the relevant certificate on the first liability date of 1 May 2013 (liability date for 2013), or by 1 November 2013 (liability date for 2014), will be required to pay LPT for those periods, they will be able to reclaim the tax paid if they obtain the certificate by 31 December 2013 and notify the Revenue Commissioners in writing on or before 31 January 2014. As an alternative to such retrospective treatment, they can opt to start the period of exemption from the liability date following the issue of the certificate.

Property Taxation Collection

Questions (61)

Niall Collins

Question:

61. Deputy Niall Collins asked the Minister for Finance the way persons with more than one property who do not have access to a facility or know the way to pay online can pay the local property tax; if it can be paid manually; if he will advise on same; and if he will make a statement on the matter. [19612/13]

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Written answers

For property owners for whom e-filing is not practical, I am informed by the Revenue Commissioners that the legislation provides that another person may file on their behalf, and 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 to have her or his property details, PPSN and details of the bank account or other source from which she or he wishes the payment to be deducted. Although it will not be possible for multiple property owners to pay their LPT liability manually (by cash payments through approved payment service providers), there are a variety of other options available to pay their LPT liability in full or by phased payment. I am satisfied that the range of payment options available to these owners provide a great amount of flexibility in paying the tax. The Commissioners further advise that the LPT Helpline will advise the customer on the payment option that best suits her/his particular circumstances.

IBRC Liquidation

Questions (62)

Niall Collins

Question:

62. Deputy Niall Collins asked the Minister for Finance if he will provide, on a county basis, the number of insurance bond products that the insurance policy a developer has to have in place by condition of local authority, taken out by developers with Anglo Irish Bank-Irish Bank Resolution Corporation which are part of the liquidation process; if a local authority should seek to call in any of these bonds; and if he will make a statement on the matter. [19613/13]

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Written answers

I am advised that the Special Liquidators are not in a position to provide this information at present but that they are in the process of establishing the level of bonds/guarantees and indemnities entered into by IBRC (prior to liquidation) in favour of County Councils. I have been further advised that it is likely that any liabilities arising under those bonds, guarantees and indemnities are contingent claims against IBRC. Such claims, if called upon by the County Councils, will most likely rank as unsecured claims in the liquidation of IBRC. The Special Liquidators will be assessing on a case by case basis whether bonds should be renewed in order to protect, maintain or enhance the value of a loan or development as the key objective of the Special Liquidators is to maximise the value of IBRC’s assets.

Question No. 63 answered with Question No. 55.

Bank Charges

Questions (64)

Michael McGrath

Question:

64. Deputy Michael McGrath asked the Minister for Finance if he will provide details of changes made to bank fees and charges which were notified to the Director of Consumer Affairs prior to the enactment of the Consumer Credit Act 1995 and which the banks have yet to implement. [19634/13]

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Written answers

I, as Minister for Finance, have no statutory role in relation to the issues raised by the Deputy. I have been advised by the Central Bank that the information requested by the Deputy is not readily available. The Bank also informed me that they received this specific question from the Deputy at the Joint Oireachtas Committee on Finance, Public Expenditure and Reform hearing on Wednesday 10 April 2013. The Bank is currently preparing and compiling the required information which requires significant work to compile. The information will be provided by the Central Bank to the Deputy in the coming days.

Tax Collection Forecasts

Questions (65)

Eric J. Byrne

Question:

65. Deputy Eric Byrne asked the Minister for Finance the revenue raised from an increase in capital gains tax from 33% to 35%; and if he will make a statement on the matter. [19656/13]

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Written answers

I am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 33% to 35% could be in the region of €31 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.

Universal Social Charge Yield

Questions (66)

Eric J. Byrne

Question:

66. Deputy Eric Byrne asked the Minister for Finance the revenue raised from the extension of the 10% rate of universal social charge and PAYE taxpayers on incomes of more than €100,000; and if he will make a statement on the matter. [19657/13]

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Written answers

I am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, from extending the additional universal social charge of 3%, which is currently applicable to self-employed income in excess of €100,000, to all income earners at this level of income would be of the order of €71 million. The Universal Social Charge is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €100,000. The estimated yield is based on confining the extension of the 3% rate to the portion of income which is in excess of €100,000, that is, the increase is not applied to the portion of total income earned up to €100,000.

The figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.

Tax Collection Forecasts

Questions (67)

Eric J. Byrne

Question:

67. Deputy Eric Byrne asked the Minister for Finance the revenue raised from the introduction of a third rate of income tax of 48% on income of more than €100,000; and if he will make a statement on the matter. [19658/13]

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Written answers

It is assumed that the threshold for the proposed new tax rate 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 a new 48% income tax rate would be of the order of €365 million. 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.

This figure is an estimate 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. It is, therefore, provisional and subject to revision.

Tax Collection Forecasts

Questions (68)

Eric J. Byrne

Question:

68. Deputy Eric Byrne asked the Minister for Finance the revenue raised from an increase in DIRT for payments made annually from 33% to 35%; and if he will make a statement on the matter. [19659/13]

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Written answers

I am advised by the Revenue Commissioners that the estimated yield to the Exchequer from increasing the Deposit Interest Retention Tax (DIRT) rate from 33% to 35% would be of the order of €40 million in a full year. This projection assumes no significant behavioural change by depositors or a change in interest rates applied by financial institutions to savings.

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