Written Answers Nos. 87-94
87. Deputy Michelle Mulherin asked the Minister for Finance where there is a delay on the part of the Revenue Commissioners issuing a notice of estimate in respect of the local property tax to a taxpayer, if flexibility will be shown to the taxpayer in relation to the difficulty such a delay poses in filing the Form LPT1 by the deadline; and if he will make a statement on the matter. [20652/13]
View answer92. Deputy Michelle Mulherin asked the Minister for Finance the delay in issuing the notice of estimate of local property tax in respect of some residential properties; the number of notices that have yet to issue; and if he will make a statement on the matter. [20686/13]
View answerI propose to take Questions Nos. 87 and 92 together.
A key aspect of the work undertaken by Revenue was the development of a comprehensive register of residential properties in the State. I am informed by the Revenue Commissioners that since 11 March 2013 Revenue has used this Register to issue LPT Returns and supplementary information to owners of 1.66 million residential properties. The bulk issue of LPT Returns is complete. However the register will continue to be updated as properties are identified and matched, for example from late payers of the Household Charge, amendments to records where the correct liable property owner is made known to Revenue, and as new sources of information on residential property owners are made available to Revenue.
As I have indicated to the House on a number of occasions, most recently in my reply to Question No. 240 on 23 April, liable persons who have not yet received an LPT Return from Revenue must still self-assess the amount of LPT due, complete and file their LPT Return by the relevant deadline, and pay the tax due. They should contact the LPT helpline 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. In my reply I also indicated that the logistics of ensuring that the chosen payment option can be activated in good time for the July payments dates determine the paper filing closing date of 7 May. The e-filing closing date of 28 May is the de facto extension.
The requirements to self-assess and file an LPT return even if a property owner does not receive a Return form from Revenue, and the telephone filing arrangements, were set out in national and local newspaper advertisements two weeks ago. I am satisfied that this range of filing and payment options provides property owners with the opportunity to meet their LPT obligations.
88. Deputy Joe McHugh asked the Minister for Finance if he will outline his plans for introducing carbon taxation on coal; if he has considered the implications of such a development on cross-Border imports; and if he will make a statement on the matter. [20668/13]
View answerSolid fuel carbon tax will be charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat.
I am advised by the Revenue Commissioners that the Air Pollution Act, 1987 (Marketing, Sale and Distribution of Fuels)(Amendment) Regulations 2011 (S.I. No. 270 of 2011), made by the Minister for the Environment, Heritage and Local Government, specifies the standards for coal placed on the market and extends the regulatory framework in relation to the distribution and sale of coal in the State. Under the Regulations, all coal suppliers are obliged to register with the Environmental Protection Agency and comply with sulphur content and packaging standards. In particular, the sulphur content of coal that may be sold in the State, which is not more than 0.7% sulphur by weight, is lower than that in Northern Ireland and therefore coal supplied to Northern Ireland standards for sale on that market may not be sold in the State. Compliance with the Regulations will be enforced by the Local Authorities.
The Revenue Commissioners, who are responsible for the collection of carbon tax on solid fuels, also advise me that on commencement of the carbon tax provisions under the Finance Act 2010, any Northern Ireland-based wholesaler of solid fuels selling into the market in Ireland will be obliged to register as a supplier and comply with the same regulatory requirements as wholesalers based in the State. Such suppliers will be obliged to make returns on solid fuels supplied in the State in the accounting period concerned and pay the amount of carbon tax due in respect of that supply.
89. Deputy Stephen S. Donnelly asked the Minister for Finance if he will release all materials in the possession of his Department and the Central Bank of Ireland which reference payments and redemptions made by the Government or Irish banks, from September 2008 onwards, to holders of senior bonds which were issued by covered Irish banks before the State guarantee, that is, payments of senior debt issued prior to September 2008, redeemed after September 2008 and reference the European Central Bank, for example, correspondence to or from the ECB on the matter of paying senior unguaranteed bondholders; and if he will make a statement on the matter. [20669/13]
View answerThe Deputy will be aware that my Department has already provided details of bonds held and redeemed by the covered institutions. The responses to PQ numbers 38256/12, 36107/12, 19595/12, 7451/12, 5160/12, 4207/12, 34441/11, provide a comprehensive list of the bonds, value date, maturity date etc. on an institution by institution basis for specific dates as well as the position in relation to the identity of bondholders. A response to PQ number 19875/13 sets out the position in relation to outstanding debt at the time of the IBRC liquidation indicates the treatment of such debt in the liquidation process. I will forward copies of the response for the Deputy's convenience.
The Deputy will also be aware that there were discussions with our external partners on the issue of payment to bondholders. I have advised the House on a number of occasions that our European partners expressed strong reservations about burden sharing with senior bondholders and the rationale for this position. I have also advised the House that the position is that there is no private sector involvement for senior bank paper or Irish Sovereign debt without the agreement of our external partners. This commitment has been agreed with our external partners and is now the basis on which Ireland’s future financing strategy is built. Finally, in this vein and in the time constraints of the PQ process, no correspondence to or from the ECB has been identified that relates specifically to paying senior unguaranteed bondholders.
The Deputy will appreciate that it is not possible to retrieve and assess all relevant materials in the possession of my Department in the timeframe provided by the Parliamentary Question (PQ). However, if further information is required the Deputy could write directly to me or my Department detailing his requirements and the matter will be considered.
90. Deputy Andrew Doyle asked the Minister for Finance if he will provide an outline of the Central Bank of Ireland's new national payments plan; if he intends to abandon one cent and two cent coins; if he has identified a town where the pilot scheme is not carrying such coins; if he intends to put roundings to the nearest five cent on a statutory footing; if he has examined similar schemes in other jurisdictions that have worked; and if he will make a statement on the matter. [20676/13]
View answerIn 2011, I requested that the Central Bank examine ways to improve Ireland’s payment infrastructure. The Central Bank established a Steering Committee which prepared and submitted the National Payments Plan to me. Government subsequently approved the plan in April 2013. A copy has been sent to all TDs and Senators and is available online at http://www.centralbank.ie/paycurr/paysys/Documents/National%20Payments%20Plan%20-%20Final%20Version.pdf. The National Payments Plan will target improving consumer payments systems, modernising business payments, promoting electronic payment methods, reducing costly cheque usage, increasing the efficiency of the use of cash and ensuring that Ireland meets its commitments under the Single European Payments Area Regulation. The National Payments Plan outlines that if Ireland were to match best practice in Europe, savings of up to €1 billion per annum could be made to the economy. This would result in better value for the customer, lower back-office administration cost for Government, lower administration cost for business and lower operating costs for financial institutions.
On the specific query that the Deputy has raised, the National Payments Plan has made a recommendation that issues surrounding the use of one and two cent coins in Ireland will be investigated. The National Payments Plan does not envisage that one and two cent coins would be abandoned; they would remain legal tender.
The Steering Committee intends to trial the use of a rounding convention in a pilot project. The location for the pilot project has not yet been identified. The rounding convention that will be trialled in the pilot is entirely voluntary on the part of both consumers and retailers. A change in the legal tender status of these coins requires action at EU level. Consideration of this issue is currently ongoing at EU level but discussions have not yet concluded. Any action to roll out nationally will be done fully in consultation with our EU partners.
In developing the National Payments Plan, the Steering Committee examined other jurisdictions in the EU and also outside the EU. The pilot project will be developed along the lines of the approach adopted in The Netherlands, which has substantially reduced the use of one and two cent coins. This involves retailers and customers voluntarily agreeing to a rounding convention, which avoids the use of one and two cent coins without banning their use. A decision on whether or not to roll this out nationally would be taken by Government only following completion of the pilot.
91. Deputy Regina Doherty asked the Minister for Finance if he will request An Post to facilitate the payment of the local property tax through An Post savings stamps;; and if he will make a statement on the matter. [20685/13]
View answerThe Savings Stamps Scheme is a matter for An Post. I am advised by An Post that the scheme is a facility for customers to save up amounts for the sole purpose of making a deposit to a Post Office Savings Scheme, and that Savings Stamps are primarily bought by school children in schemes operated by many primary schools. Savings Stamps cannot be redeemed for cash or used as a payment method for any other service. Accordingly, the Savings Stamps Scheme cannot be used to pay Local Property Tax (LPT). I do not propose to request that An Post change the scheme. Local Property Tax (LPT) can be paid through An Post TaxPay, as well as through two other approved payment service providers, 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, subject to the payment of transaction charges for the service.
Other phased payments options are available. 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. 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.
93. Deputy Brendan Griffin asked the Minister for Finance if a medical expenses tax refund will issue in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [20725/13]
View answerI am advised by the Revenue Commissioners that the medical expenses claim submitted by the person concerned for 2012 has been processed and a refund will issue shortly. The refund being issued will be adjusted to take account of a small amount of tax due for 2011 and was previously notified to the taxpayer.
94. Deputy Patrick Nulty asked the Minister for Finance if there are any exemptions to the property tax for persons with disabilities who have had to have their homes adapted; if he will outline the exemptions available; and if he will make a statement on the matter. [20727/13]
View answerI refer the Deputy to my detailed reply to similar questions, No. 115 on 27 March (15664/13) and No. 231 on 16 April (16212/13). The Finance (Local Property Tax) Act 2012 (as amended) provides two potential measures of relief from Local Property Tax (LPT) for persons who have a disability. Section 10B provides an exemption for permanently incapacitated individuals, while section 15A provides for a reduction in chargeable value for properties adapted for use by disabled persons. Section 10B of the Act provides that an exemption from the charge to LPT may apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals.
Where an exemption cannot be claimed under section 10B of the Act, an incapacitated person may, in certain circumstances, qualify for a reduction in the market value of their property. Section 15A of the Act provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority. Full Details are available on www.revenue.ie.
