Written Answers Nos. 79-86
79. Deputy Michael McGrath asked the Minister for Finance the impact on the percentage of the company owned by the State that the payment by AIB of the €280 million dividend preference share dividend due to the State in the form of additional ordinary shares; and if he will make a statement on the matter. [20548/13]
View answerAllied Irish Banks (AIB) announced on 24 April 2013 that the annual cash dividend of €280 million on the €3.5 billion 2009 Non Cumulative Preference Shares held by the National Pensions Reserve Fund Commission (NPRFC) on behalf of the Irish State, due 13 May 2013 will not be paid. As a result AIB becomes obliged to issue and allot ordinary shares to the NPRFC in accordance with the Bank's Articles of Association. The number of Bonus Shares to be issued will be calculated by dividing the unpaid dividend amount of €280m on the 2009 Preference Shares by the average price on an ordinary share over the period of thirty days trading immediately preceding the annual dividend date. The final amount of Bonus Issue of ordinary shares will therefore be announced in due course. However as the Irish State, through the NPRFC already own 99.8% of the ordinary shares of AIB, the increase in ownership as a result of these new bonus shares is likely to be marginal.
80. Deputy Éamon Ó Cuív asked the Minister for Finance if he has received a letter from Comhdhaíl Oileáin na hÉireann outlining the reasons that there should be a reduced local property tax on the offshore islands; his response to this letter and the reasons for same; and if he will make a statement on the matter. [20580/13]
View answerI confirm I have received the letter mentioned by the Deputy. The position is as follows. The Government decided that a universal liability should apply to all owners of residential property with a limited number of exemptions, in order to keep the rate of the tax as low as possible. There is no reduced rate for residents of islands per se.
The LPT is a self-assessed tax and it is a matter for the property owner, in the first instance, to calculate the tax due based on his or her assessment of the market value of the property. The charge to LPT is based on the chargeable value of the residential property and this is defined in the Finance (Local Property Tax) Act 2012 (as amended) as the price that the unencumbered fee simple of a residential property might be expected to fetch on a sale on the open market were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property.
The location of a property on an island is a factor which could be taken into account in determining its value.
Where a property owner makes their property valuation in an honest and reasonable manner, that valuation will not be challenged by Revenue, in accordance with its normal Customer Service Charter.
81. Deputy Pearse Doherty asked the Minister for Finance the right a citizen has to a bank account. [20600/13]
View answerCurrently any Irish citizen can open a bank account upon proof of address and identity. When opening a current bank account the bank is obliged to comply with identification requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Customers can present a wide range of forms of photographic identification and proof of address. Indeed the General Principles of the Consumer Protection Code requires that customers of regulated entities including banks are not prevented from accessing basic financial services. My Department recently piloted a Standard Bank Account and it is planned to roll out this product on a national basis by the end of 2013. The Standard Bank Account is a current bank account aimed at the financially excluded in Irish society. During the pilot period of the Standard Bank Account the participating banks dealt with customers who may not have had identification which met the ideal requirements but could use the alternative forms of identification that were acceptable under the Anti-Money Laundering Acts. Once this product is rolled out on a national basis this should further facilitate those wishing to open a bank account in Ireland.
At the European level, the European Commission are expected to publish in early May, legislative proposals referred to as 'The Bank Account Package', which aim to improve access to basic financial services and make other improvements to policies on bank accounts across Europe. A particularly relevant proposal which is expected in this Commission initiative is that access to a current bank account should become a right for all EU citizens. As Presidency of the European Council, Ireland will open discussions on this and my Department will give these proposals the necessary impetus they deserve.
82. Deputy Sean Fleming asked the Minister for Finance the number of mortgage accounts outstanding on primary dwelling homes by the banks and financial institutions; the number of mortgage accounts issued by retail credit firms; if he will provide the total number of primary dwelling home mortgages in the country; the total value of the balance on these accounts at the end of December 2012; the number and the percentage in arrears over 90 days divided between banks and financial institutions, retail credit firms and local authorities; if he will provide the names of the institutions referred to as retail credit firms; and if he will make a statement on the matter. [20602/13]
View answerThe Central Bank has information me that the number of mortgage accounts for both banks and retail credit firms and outstanding balances at December 2012 are as follows:
|
Banks |
Number of Accounts |
Outstanding Balance €(000) |
|
Total |
774,765 |
107,395,205 |
|
In arrears over 90 days |
86,422 (10·88%) |
15,662,222 |
|
Retail Credit Firms |
- |
- |
|
Total |
17,331 |
3,387,384 |
|
In arrears over 90 days |
8,066 (1·02%) |
1,792,726 |
The names of institutions referred to as retail credit firms are as follows:
- Haven Mortgage Limited
- Nua Homeloans Limited
- Pepper Financing Corporation Limited
- Secured Property Loans Limited
- Springboard Mortgages Limited
- Start Mortgages Limited
- Stepstone Mortgage Services Limited
I would refer the Deputy to the Central Banks website which contains detailed information and statistics on residential mortgage arrears and other relevant information.
83. Deputy Sean Fleming asked the Minister for Finance if cohabiting partners can share their tax credit and tax bands in order that a cohabiting couple will not be disadvantaged in comparison to the civil solidarity pact available in France or other countries where a cohabiting couple can file joint assessment for taxes in the same manner as married couples; and if he will make a statement on the matter. [20604/13]
View answerThe position is that current tax legislation does not recognise civil solidarity pacts such as are available in France or other countries. Where a couple is cohabiting rather than married or in a civil partnership they are treated as separate and unconnected individuals for the purpose of income tax. Each partner is a separate entity for tax purposes and, therefore, cohabiting couples cannot file joint assessment tax returns or share their tax credits and tax bands in the same manner as married couples. The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy vs. Attorney general (1980), which held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income.
However, a cohabiting couple where both partners are working get, in total, the same tax credits as a married couple or couple in a civil partnership (i.e. €3,300). In addition, the same amount of income is subject to tax at the 20% rate (i.e. €32,800 each). This equates to the €65,600 threshold in the case of a married couple or couple in a civil partnership.
If both cohabitants earn in excess of the standard rate band (i.e. €32,800), then they both pay tax at 41% on any income in excess of €32,800. Married couples or couples in a civil partnership where both work get the same treatment.
The difference between the two groups is the ability of married couples or civil partners to transfer certain tax credits such as the personal/married credits and part of the tax bands, i.e. the tax band of €65,600 available to married couples or couples in a civil partnership with two incomes in 2013 is transferable between spouses up to a maximum of €41,800. This is of benefit where one of the individuals earns less than the 20% tax threshold of €32,800 or where one of the individuals has no income.
84. Deputy Sean Fleming asked the Minister for Finance if he will ensure that the your guide to local property tax and how to pay and file document is amended to clarify that persons may pay by cheque and the completed LPT return with the cheque attached for the full amount can be sent to the LPT branch, PO Box 1, Limerick; and if he will make a statement on the matter. [20607/13]
View answerThe Revenue Commissioners have made a wide range of payment options available, which means liable persons can choose a method of payment that suits their circumstances. The Local Property Tax (LPT) can be paid by way of phased payments or in full – for example, by way of a Single Debit Authority which is the equivalent of an electronic cheque. The Single Debit Authority option is available to all liable persons whether they complete the paper or electronic LPT Return. I am informed by the Revenue Commissioners that those who submit a paper LPT Return can also choose to pay their LPT liability by cheque. The LPT booklet accompanying the letters and LPT Returns that recently issued to liable persons explains on page 15 that payment of LPT can be made in full by cheque. Customers are instructed to include the cheque when submitting their Return to the LPT Branch, PO Box 1, Limerick. Further guidance for those who elect to pay their LPT liability by cheque is available on the Revenue website, including advice to customers to include their Property ID and PPSN on the back of cheque. I understand that some property owners have already paid in full by cheque.
I am satisfied that the Revenue Commissioners have put a significant amount of information into the public domain on payment options and both the LPT Return and booklet covers this in some detail. It is also open to any property owner who has a query on any aspect of the various payment options to call Revenue's dedicated LPT Helpline on 1890 200 255.
85. Deputy Sean Fleming asked the Minister for Finance the number of persons deemed non resident for tax purposes in the Revenue records; and if he will make a statement on the matter. [20608/13]
View answerI am advised by the Revenue Commissioners that for the tax year 2011, the latest year for which figures are available, the number of persons who have filed tax returns indicating that they are non-resident for tax purposes is 12,073. It is important to note that the circumstances of individuals who are non-resident for tax purposes but who file tax returns can vary widely. They include, for example,
- Irish nationals who have moved abroad for work reasons but who retain their home here (their tax return is generally only in respect of rental income on their Irish home);
- foreign nationals who never resided here but who have investments (including property) here;
- foreign nationals who worked here for a period and who may have acquired Irish tax residence for that period (for example, individuals who worked here on a temporary assignment) may retain an Irish tax liability, after ceasing to be resident, in respect of investments made in Ireland during their period of residence.
86. Deputy Pearse Doherty asked the Minister for Finance the guidelines that exist for banks regarding lodgements they can refuse to accept, that is, packs of coins under a certain value or coins as part of priority lodgments for businesses.; and if he will make a statement on the matter. [20634/13]
View answerI, as Minister for Finance, have no statutory role in relation to regulated financial institutions refusing to accept lodgements of packs of coins as raised by the Deputy. It is a commercial matter for each institution concerned how it conducts individual transactions. However, I have been advised by the Central Bank that Section 10 of the Economic and Monetary Union Act 1998 states that: "no person, other than the Central Bank of Ireland and such persons as may be designated by the Minister by order, shall be obliged to accept more than 50 coins denominated in euro or in cent in any single transaction."
