Written Answers Nos. 166-188
166. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he will outline the full details regarding the upcoming rotation of Irish ambassadors that was recently approved; if he will list in tabular form the rotations that will take place in each embassy of Ireland; when he expects each of the rotations to occur; and if he will make a statement on the matter. [22884/13]
View answerThe information requested by the Deputy is contained in the table below. Rotation of Ambassadors normally takes place in late summer.
|
NAME |
CURRENTLY SERVING |
TRANSFERRING TO |
|
Michael Collins |
Washington |
Berlin |
|
Anne Anderson |
Permanent Mission to the United Nations, New York |
Washington |
|
David Donoghue |
HQ |
Permanent Mission to the United Nations, New York |
|
Rory Montgomery |
Permanent Representation to the European Union, Brussels |
Paris |
|
Paul Kavanagh |
Paris |
Beijing |
|
Declan Kelleher |
Beijing |
Permanent Representation to the European Union, Brussels |
|
Pat Hennessy |
Rome |
Abu Dhabi |
|
Bobby McDonagh |
London |
Rome |
|
Dan Mulhall |
Berlin |
London |
|
Patricia O’Brien |
Special leave (as Legal Counsel and Under Secretary General at the United Nations Secretariat in New York) |
Permanent Mission to the United Nations, Geneva |
|
Gerry Corr |
Permanent Mission to the United Nations, Geneva |
Bucharest |
|
Eoin O’Leary |
Permanent Mission to the OSCE, Vienna |
Moscow |
|
Philip McDonagh |
Moscow |
Permanent Mission to the OSCE, Vienna |
|
Eamonn McKee |
Seoul |
Tel Aviv |
|
Aingeal O’Donoghue |
Counsellor, Permanent Representation to the European Union, Brussels |
Seoul |
|
Joseph Hackett |
HQ |
Ambassador to the Political Security Committee, Brussels |
|
John Biggar |
HQ |
Sofia |
|
Dónal Denham |
HQ |
Helsinki |
|
Sonja Hyland |
HQ |
Mexico City |
167. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if Ireland has been invited to take part in celebrations in Croatia upon its accession to the European Union and becoming the 28th member state of the EU on 1 July 2013; the representatives who will be there on Ireland's behalf; and if he will make a statement on the matter. [22920/13]
View answerI am honoured to have been invited by the First Deputy Prime Minister and Minister for Foreign and European Affairs of Croatia, Ms. Vesna Pusiç, to attend the central celebration on the occasion of Croatia’s accession to the EU to be held in Zagreb on 30 June. Ireland very much looks forward to welcoming Croatia as the 28th Member State of the EU on 1 July.
168. Deputy Clare Daly asked the Minister for Finance the action he will take in view of the ECJ order that the refund of excise duty on fuel used by disabled drivers is unlawful and in breach of the excise directive. [22302/13]
View answerThe ECJ Judgement, which was made on 25 April 2013, declares that Ireland has failed to meet its obligations under the Energy Tax Directive by continuing to grant an exemption from excise duty on fuel used by disabled persons for motor vehicles. The implications of the Judgement and the options available to meet the requirements of the Directive are being examined by my Department.
169. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the reason there continues to be a death tax on intestate wills; and if he has any plans to change same. [22472/13]
View answerI assume that the Deputy is referring to the existence of inheritance tax which is part of Capital Acquisitions Tax (CAT). Tax is charged, subject to certain exemptions and reliefs, on the amount inherited by the donee, the person receiving the inheritance. CAT is long established and forms part of the tax system. Capital taxation is designed to apply a tax to the capital as distinct from the income of a person. The case for the taxation of capital rests mainly on considerations of equity and social justice. The object of the present system of capital taxation in Ireland, which consists of Capital Acquisitions Tax, Capital Gains Tax, Discretionary Trust Tax, Domicile Levy and now also Local Property Tax, is to ensure equity in the tax system and to reduce inequalities in the distribution of wealth.
The taxation of capital raises substantial tax revenue for the exchequer and is also preferable from the point of view of its impact on the economy to an increase in employment taxes such as income tax.
It is appropriate for CAT to be charged on an inheritance as provided for. I have no plans to abolish CAT.
170. Deputy Brendan Griffin asked the Minister for Finance the length of time for which the current list of unfinished housing estates will qualify for a waiver from the local property tax; and if he will make a statement on the matter. [22837/13]
View answerSection 10(2) of the Finance (Local Property Tax) Act 2012, as amended, provides that a residential property shall not liable to Local Property Tax (LPT) where it is situated in an unfinished housing estate, where such estate is contained in a list prescribed by the Minister for the Environment, Community and Local Government. The Minister has prescribed and published this list, which is set out in the schedule to the Finance (Local Property Tax) Regulations 2013. I stress that the decision as to whether an estate is on the list of unfinished estates is in the ambit of local authorities and the Department of the Environment, Community and Local Government and not in the ambit of the Department of Finance or the Revenue Commissioners. I have been advised by the Minister for the Environment, Community and Local Government that there will be no change to the list of prescribed unfinished housing estates for the current valuation period. Where a property situated in an unfinished housing estate within the list as prescribed by the Minister for the Environment, Community and Local Government is not liable to LPT on a valuation date, section 14(2) of the LPT legislation provides that such residential properties will be exempt until the next valuation date. Therefore any residential properties contained in the list of unfinished housing estates on 1 May 2013 will be exempt from LPT until the next valuation date (1 November 2016).
For those properties that are not exempt, the LPT is a self-assessment tax so it is a matter for the property owner to calculate the tax due based on her or his assessment of the market value of the property. The condition of the property and surrounding areas would be factors that property owners could take into account in valuing their properties.
171. Deputy Gerry Adams asked the Minister for Finance if there are any proposals to review the current qualifying criteria in respect of primary medical certificates; if his Department will consider revising the criteria to allow primary medical certificates to be issued on a shorter term basis, open to reviewing ongoing long-term medical conditions and associated levels of mobility; if there is a need to seek to include those affected primarily in childhood by medical conditions which currently cannot be diagnosed definitively as affecting mobility for the duration of a person's lifetime; and if he will make a statement on the matter. [22844/13]
View answerSection 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994) (as amended) provide for permanent relief from the payment of specified maximum amounts of VAT and VRT for persons registered under the scheme.
The disability criteria for eligibility for the tax concessions under this scheme are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get the Primary Medical Certificate, an applicant must be severely and permanently disabled and satisfy one of the following conditions:
a) be wholly or almost wholly without the use of both legs;
b) be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
c) be without both hands or without both arms;
d) be without one or both legs;
e) be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
f) have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer (SMO) for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. An unsuccessful applicant can appeal the decision of the SMO to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual.
There is no provision by which the Disabled Drivers Medical Board of Appeal can issue a primary medical certificate without reviewing the appellant although s/he can reapply locally after 6 months from the date of the first review with medical evidence of a deterioration in his/ her condition.
I have no plans at present to change the qualification criteria.
172. Deputy Sean Fleming asked the Minister for Finance if he will provide a list of persons liable for the local property tax that are not required to pay the 2013 tax until 2014; and if he will make a statement on the matter. [22158/13]
View answerI am advised by the Revenue Commissioners that, in accordance with section 851A of the Taxes Consolidation Act 1997, all taxpayer information held by the Commissioners is confidential and they are therefore precluded from providing a list of the persons liable for the Local Property Tax (LPT) who are not required to pay their 2013 LPT liability until 2014. However, the following may be helpful to the Deputy. The Finance (Local Property Tax) Act 2012 (as amended) provides that local authorities and approved housing bodies will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties are used to accommodate people who have special housing needs. Special housing needs refers to the provision of housing and support for people who have a particular need in addition to a general housing need to enable them to live in the community. Under an amendment which I introduced this year in section 7 of the Finance (Local Property Tax) (Amendment) Act 2013, local authorities and approved housing bodies will have until 1 January 2014 to pay their 2013 LPT on any properties which they are liable to pay the tax on.
Approved housing bodies operate in the voluntary and co-operative housing sector and are engaged in the provision of social housing for those who face difficulty in living in our communities. The Revenue Commissioners have had extensive contacts regarding the LPT obligations of these bodies either directly with the bodies themselves or indirectly through the Irish Council for Social Housing, which represents this sector.
173. Deputy Sean Fleming asked the Minister for Finance the reasons that identical houses in private estates may have different values attributed to them for the local property tax in situations where the local authority is the owner of some of these houses and under the planning and development acts, Part 5, social and affordable housing scheme and these houses are to fall into the lowest valuation band of €0-€100,000 for the period up to and including 2016; if identical houses side by side in the same estates can be valued at this amount or are they required to value their houses at a higher level; and if he will make a statement on the matter. [22159/13]
View answerThe expert group which advised on the design of a property tax, the Thornhill Group, considered whether local authorities should be liable as property owners for the Local Property Tax (LPT). Notwithstanding the economic arguments in favour of liability, the group on balance did not favour creating a circular flow of payments. However, the Government felt there could be issues of equity and proportionality in the differing treatment of privately owned properties and properties that are occupied by local authority tenants. While reform of the local authority differential rents system would contribute to horizontal equity between local authority tenants and low income owners, anomalies could arise in cases where local authorities own and rent out a property in an otherwise privately owned housing estate. The tenant in such a local authority property would not be subject to the LPT, but the owners of other properties would be subject to it. The Deputy may be aware that the Household Charge was not payable in respect of houses owned by local authorities. My intention in making local authorities liable for the payment of LPT was to address such anomalies. Section 7 of the Act therefore provides that local authorities will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities. Residential properties purchased under the various local authority shared ownership schemes will also be subject to LPT, and in these cases, the individual(s) who purchased the residential property from the local authority will be liable to pay the tax.
In response to submissions from local authorities, approved housing bodies and the Department of Environment, Community and Local Government, section 17 of the Act was amended to deem the chargeable value of local authority properties would fall into the first valuation band of €0 to €100,000 for the first valuation period, from 2013 to 2016. This will result in a charge to LPT for each property of €45 for 2013 and €90 for 2014 to 2016. The payment of the local authorities’ 2013 liability as also been deferred until January 2014. This provision will not apply to residential properties purchased under the local authority shared ownership schemes, only to properties owned by local authorities and those owned by bodies standing approved for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act 1992.
The provision was introduced as a transitional provision to give local authorities and approved housing bodies time to put structures and processes in place for dealing with LPT.
Privately owned residential properties will be subject to the standard valuation mechanism set out in the legislation.
174. Deputy Sean Fleming asked the Minister for Finance the situation regarding the capital gains tax payable by a landowner who transfers a site to a relation for no consideration; the liability that attaches to the person who transfers the site and the liability that attaches to the person who receives the site; and if he will make a statement on the matter. [22160/13]
View answerThe transfer of a site for no consideration is a disposal for capital gains tax purposes by the transferor. The legislation relating to transfers for no consideration specifies that such a transfer is treated as if it were for a consideration equal to the market value of the site at the date of the transfer. The transferor is liable to capital gains tax in respect of the transfer of the site if a chargeable gain arose between the time that he or she acquired the site and the time of its disposal. The transferee does not have a liability to capital gains tax in respect of the transfer. However, he or she might have a liability to gift tax in respect of the transfer. Any capital gains tax paid by the transferor in respect of the transfer is allowed as a credit against the gift tax payable, but the credit is clawed back where the asset is disposed of within 2 years of the gift. In addition, a liability to stamp duty arises on the transferee in respect of the transfer. It should be noted that there is an exemption from capital gains tax where an individual transfers a site to his or her child (including a child of his or her civil partner or a foster child in certain circumstances) to enable the child to build a house on the site to be occupied as that child’s only or main residence. The value of the site must be less than €500,000 and the area of the site must be less than 0.4047 hectare. If the child disposes of the site or part of the site without a house having been built on the land, then the chargeable gain that was exempted is treated as accruing to the child at the time of the disposal.
175. Deputy Heather Humphreys asked the Minister for Finance if he will outline the rationale behind the valuation bands of the local property tax; if consideration was given to introducing more gradual bands than €50,000; and if he will make a statement on the matter. [22174/13]
View answerThe 1982 and 2009 Commissions on Taxation, and the Thornhill Group, which advised on the design of the Local Property Tax, recommended the grouping of property values into broad bands. Grouping properties into valuation bands, with the rate applying at the mid-point of the bands – in effect creating fixed sum and certain charges for each band – can ease the valuation challenges. In devising the bands, a balance should be struck between the width of the bands and avoiding substantial liability differences between adjacent bands. The wider the band, the easier it is to carry out a self-assessment, but very wide bands run the risk of creating inequities between taxpayers as well as compliance challenges. The 2009 Commission on Taxation proposed five bands of €150,000 width up to €750,000; from €750,000 to €1 million; from €1 million to €1.5 million; and assessment on actual value over €1.5 million. The Thornhill Group recommended the creation of a sufficient number of taxation bands to allow property owners to place their properties in an appropriate valuation band with reasonable confidence. Taking account of all aspects, the Thornhill Group recommended an initial band of €0 to €100,000; bands of €50,000 in width for properties valued between €100,001 and €1,000,000; and no banding on properties over €1 million with the tax liabilities determined on the self-assessed actual value. These bands are significantly narrower than the proposals of the 2009 Commission. The Government accepted the recommendation of the Thornhill Group.
While there may be anomalies for properties that are valued close to the edge of the bands, this is unavoidable no matter what bands are chosen, and as indicated above narrower bands would make it more difficult for taxpayers to decide the correct band for their property. I am satisfied the current system of valuation bands strikes a good balance between ease of assessment and a smooth progression of liabilities between the valuation bands.
176. Deputy Mattie McGrath asked the Minister for Finance if his attention has been drawn to the difficulties being experienced by householders who have not received their local property tax return form and who do not have Internet access; if he will extend the deadline for paper returns to the 27 May to ensure that all householders making an effort to pay and who do not have access to the Internet are not put under undue pressure when they have not received the form (details supplied); and if he will make a statement on the matter. [22175/13]
View answer219. Deputy Tom Fleming asked the Minister for Finance if he will intervene with the Revenue Commissioners regarding the frustration of some members of the public who are experiencing difficulties communicating with Revenue to pay the local property tax (details supplied); if he will direct the Revenue to review its administrative process for the final three weeks of registering of the property tax, provide additional staff to man the hotline phone number and additional staff to respond to requests for forms for those who did not receive theirs in the post; if he will provide additional appropriate assistance for the many persons who are not computer literate to register online and also appropriate assistance for any person unable to read or write; and if he will make a statement on the matter. [22907/13]
View answerI propose to take Questions Nos. 176 and 219 together.
The Revenue Commissioners have responsibility for all administration, collection, enforcement and audit aspects of the Local Property Tax (LPT). The Ministers and Secretaries (Amendment) Act 2011 puts the independence of the Revenue Commissioners in the performance of their functions on a fully statutory basis.
As I have indicated to the House on a number of occasions, most recently in my reply to Parliamentary Questions Nos. 87 (20652/13) and 92 (20686/13) on 1 May, 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. In my previous replies I also indicated that the logistics of ensuring that the chosen payment option can be activated in good time for the July payment date determines the closing date for paper return filing of 7 May 2013. The e-filing closing date of 28 May 2013 is the de facto extension.
While the due date for filing paper Returns has now passed, a number of options are available to property owners for filing their Returns electronically by the 28 May filing deadline. Depending on the customer’s requirements, one of the following options will address their particular needs. 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 an LPT Return online on their behalf. A further option includes contacting the LPT helpline on 1890 200 255 (mobile phone users can contact the helpline on 01 702 3049) to file a Return online. Where, due to recent publicity about the attempted mis-use of credit card details, a property owner does not wish to give their credit or debit card details over the phone, if they own a single property, they can file online through the LPT helpline and opt to make their payment through deduction at source from their salary, occupational pension or pension from the Department of Social Protection, by cheque or in cash to one of three service providers. It should also be noted that the credit card holder will not be held liable where the card is used without their proper authorisation.
Furthermore, property owners who either have no internet access or are unable to read or write can also visit their local Revenue office where computers and assistance to file online will be available.
As to difficulties being experienced by people attempting to contact the LPT helpline at 1890 200 255, I am assured by Revenue that only a small number of access issues have been reported since the service commenced on 6 March in comparison to the very high volumes of satisfied callers. Since commencement, the helpline has handled in excess of 300,000 calls, with peak days experiencing 15,000 – 20,000 calls. Any difficulties that may have been experienced by some people were clearly as a result of the high volumes on particular days coming up to the 7 May deadline for paper filers. In response to the demand, Revenue extended the opening hours of the helpdesk from 9am/5pm to 8am/8pm on weekdays and commenced Saturday opening from 9am to 5pm. Extra operators were also deployed to ensure that the necessary resources were in place to deal with the very high volumes of calls. Revenue will continue to monitor the situation and make whatever adjustments are necessary to ensure there is sufficient capacity on the helpline to meet demand up to the 28 May filing deadline. Details of the LPT helpline’s extended opening hours for the period prior to this deadline are already posted on the Revenue website.
Given the range of options that have been made available by Revenue to assist people experiencing any difficulty in meeting their LPT obligations, and the fact that owners of residential properties have already filed in excess of 700,000 returns and utilised the different payment options, I am very satisfied with the current arrangements that Revenue has in place. Therefore, I do not propose, nor is it practicable given the logistics involved, to extend the closing date or consider that any changes to Revenue’s procedures are required in the run-up to the online LPT Return filing date.
177. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 73 of 2 May 2013, if he will set out the incomes and income tax distributions in a format matching the income bands in a table in the published reports he refers to in his reply and citing the table title, in order that a reliable comparison can be made with previous years; and if he will make a statement on the matter. [22231/13]
View answerAs requested by the deputy I have been provided by the Revenue Commissioners with reformatted tables of projected income levels and numbers of income earners for the income tax years 2011 and 2012 and these are as follows. The design of these tables is consistent with the format of the “Totals” section of Table IDS 1 in the “Income Distribution Statistics” chapter that is included in each of their Statistical Reports for 2009, 2010 and 2011 and which are available on the Revenue website at www.revenue.ie.
It should be noted that the income ranges shown in the tables relate to Gross Income as defined in Revenue Statistical Reports.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised.
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.
All Income earners for Income Tax Year 2011 (provisional)
|
Gross Income Range |
Gross Income |
Numbers |
Income Tax |
|
€ |
€ |
€ |
|
|
0 - 10,000 |
1,777,478,929 |
402,848 |
510,487 |
|
10,001 - 12,000 |
830,651,208 |
75,414 |
1,511,514 |
|
12,001 - 15,000 |
1,552,305,944 |
114,861 |
4,551,157 |
|
15,001 - 17,000 |
1,226,851,746 |
76,658 |
4,212,652 |
|
17,000 - 20,000 |
2,372,601,139 |
128,197 |
33,453,349 |
|
20,001 - 25,000 |
4,685,801,212 |
208,370 |
137,303,478 |
|
25,001 - 27,000 |
2,009,153,888 |
77,330 |
84,502,457 |
|
27,001 - 30,000 |
3,023,483,900 |
106,147 |
152,308,768 |
|
30,001 - 35,000 |
5,138,447,500 |
158,357 |
320,534,508 |
|
35,001 - 40,000 |
5,315,918,518 |
142,038 |
452,610,389 |
|
40,001 - 50,000 |
9,092,446,317 |
203,632 |
1,027,785,257 |
|
50,001 - 60,000 |
7,298,420,282 |
133,560 |
1,027,593,592 |
|
60,001 - 75,000 |
8,536,665,735 |
127,627 |
1,376,446,571 |
|
75,001 - 100,000 |
8,926,010,458 |
104,238 |
1,713,692,758 |
|
100,001- 150,000 |
7,685,672,072 |
64,677 |
1,759,247,959 |
|
150,001 - 200,000 |
3,046,558,751 |
17,819 |
784,039,591 |
|
200,001 - 275,000 |
2,301,516,484 |
9,926 |
613,192,221 |
|
Over 275,000 |
5,767,654,034 |
10,929 |
1,629,868,135 |
|
Overall Total |
80,587,638,117 |
2,162,628 |
11,123,364,843 |
All Income earners for Income Tax Year 2012 (provisional)
|
Gross Income Range |
Gross Income |
Numbers |
Income Tax |
|
€ |
€ |
€ |
|
|
0 - 10,000 |
1,765,045,500 |
400,125 |
526,693 |
|
10,001 - 12,000 |
824,063,021 |
74,800 |
1,559,097 |
|
12,001 - 15,000 |
1,540,366,291 |
113,970 |
4,552,652 |
|
15,001 - 17,000 |
1,217,524,832 |
76,084 |
4,303,117 |
|
17,000 - 20,000 |
2,353,236,584 |
127,134 |
33,595,707 |
|
20,001 - 25,000 |
4,657,950,173 |
207,116 |
137,114,083 |
|
25,001 - 27,000 |
2,006,080,358 |
77,202 |
84,606,720 |
|
27,001 - 30,000 |
3,012,980,639 |
105,764 |
152,131,448 |
|
30,001 - 35,000 |
5,118,907,036 |
157,744 |
320,201,781 |
|
35,001 - 40,000 |
5,303,801,141 |
141,691 |
453,384,034 |
|
40,001 - 50,000 |
9,100,605,135 |
203,817 |
1,031,079,033 |
|
50,001 - 60,000 |
7,320,079,368 |
133,954 |
1,033,634,792 |
|
60,001 - 75,000 |
8,562,660,772 |
128,001 |
1,383,586,347 |
|
75,001 - 100,000 |
8,980,652,097 |
104,875 |
1,726,184,120 |
|
100,001- 150,000 |
7,771,459,491 |
65,395 |
1,779,859,644 |
|
150,001 - 200,000 |
3,069,413,309 |
17,959 |
791,037,828 |
|
200,001 - 275,000 |
2,338,184,015 |
10,089 |
622,300,141 |
|
Over 275,000 |
5,875,110,578 |
11,109 |
1,660,195,477 |
|
Overall Total |
80,818,120,340 |
2,156,829 |
11,219,852,714 |
178. Deputy Helen McEntee asked the Minister for Finance in view of the publication of the Mercer report and his recommendations to the covered institutions that they reduce their cost base by between 6% and 10%, if his attention has been drawn to fact that a covered institution (details supplied) will ask for a significant contribution from its pension schemes; and if he will make a statement on the matter. [22238/13]
View answer187. Deputy Michael McGrath asked the Minister for Finance if he has received formal replies to the Mercer report from each of the State supported banks; the actions that are now planned to implement the report; and if he will make a statement on the matter. [22361/13]
View answer211. Deputy Tom Hayes asked the Minister for Finance if he will confirm that pension entitlements for former employees of Permanent TSB will not be affected as part of the cost cutting measures aimed at reducing the costs by 10% at the bank; and if he will make a statement on the matter. [22745/13]
View answerI propose to take Questions Nos. 178, 187 and 211 together.
I can confirm that the three covered institutions responded with their individual strategies by the due date of 30 April as requested by the Government. All three institutions have put forward pension changes to varying degrees as part of their respective overall responses.
I am constrained as to what I can say at present due to commercial sensitivities and perhaps, more critical at this stage, industrial relations concerns as the normal protocols continue and need to be respected and observed by all parties.
I would encourage all sides to engage in these discussions proactively through the appropriate forums in view of the serious and critical consequences for all concerned.
179. Deputy Terence Flanagan asked the Minister for Finance his views on correspondence (details supplied) regarding an increase in EBS mortgages; and if he will make a statement on the matter. [22250/13]
View answerWhile the Government is acutely aware of the increasing financial stress that some households are facing in the current environment, ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial matter for the management and the Board of the Institution. As the Deputy will be aware the Relationship Framework with AIB provides that the State will not intervene in the day-to-day operations of the bank or their management decisions. This framework is published on the Department of Finance website. I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. Neither the Central Bank nor the Department of Finance has a statutory function in relation to interest rate decisions made by individual lending institutions at any particular time. It should also be noted that the Relationship Framework references decisions regarding pricing as being commercial decisions for the banks.
It must be remembered that in order to fund mortgages the bank must borrow at current wholesale and deposit rates which are currently higher than the ECB base rate and the bank must ensure that the rate it lends at is economically sustainable and provides a return for the bank and ultimately the State as its shareholder. It would not be fair for 2.1 million taxpayers to subsidise 138,000 owner occupier mortgages, especially when the vast majority of these mortgage holders can afford to pay their mortgages.
I understand that the Central Bank of Ireland pays attention to the effect of any increases in the standard variable rate, on mortgage arrears and would no doubt be concerned if banks were exacerbating their arrears problem and as such impairing their on-going viability, from such actions.
180. Deputy Sean Fleming asked the Minister for Finance if State bodies, State agencies and public bodies should be required to get a tax clearance certificate ffrom persons who purchase assets from them to ensure assets formerly owned by the State are not going into the black economy in view of the fact that there is a requirement for tax clearance certificates to be available for people who are receiving payment from a public body in many cases; and if he will make a statement on the matter. [22267/13]
View answerA Tax Clearance Certificate is a written confirmation from Revenue that a person's tax affairs are in order at the date of issue of the Certificate. As the Deputy has noted, the requirement to produce a Tax Clearance Certificate usually arises in the context of a person seeking State money, e.g. Government contracts or grants. They can also be required when obtaining licences, e.g. an excise licence or road transport licence, or in other cases such as where the Standards in Public Office Act, 2001 applied tax clearance requirements to persons elected to the Dail or Seanad, judicial appointees and senior office appointees. However, the disposal of State assets to which the Deputy refers is primarily a matter for my colleague, Minister Howlin.
181. Deputy Joanna Tuffy asked the Minister for Finance if it is possible to apply for a full or partial exemption or waiver in respect of a private residence that has had works carried out to the property to adapt the house for an occupier that has a disability as part of the housing adaption for people with a disability grant scheme; and if he will make a statement on the matter. [22271/13]
View answerI am advised by the Revenue Commissioners that Section 10B of the Finance (Local Property Tax) Act 2012, as amended, provides that a permanently and totally incapacitated person is exempt from payment of LPT where the property is occupied as his/her sole or main residence and where he/she has received a personal injury compensation or is a beneficiary under a qualifying trust. If the exemption does not apply, section 15A of the Act as amended provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person, as defined within Section 2 of the Disability Act 2005, where the adaptation has been grant-aided or approved for grant aid by a local authority under either of the following:(1) Housing (Adaptation Grants for older people and people with disabilities) Regulations 2007; or (2) Regulation 4 of the Housing (Disabled Persons and Essential Repairs Grants) Regulations 2001.
The person with the disability must occupy the property as his or her sole or main residence after the adaptation is completed. The reduction in value is limited to the lesser of the chargeable value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property.
Full Details are available on www.revenue.ie. I refer the Deputy also to my detailed reply to similar questions, No. 115 on 27 March (15664/13) and No. 231 on 16 April (16212/13).
182. Deputy Terence Flanagan asked the Minister for Finance the number of banks and businesses that have closed in the International Financial Services Centre over the past three years; the names of the banks; the reason they closed; and if he will make a statement on the matter. [22277/13]
View answerIt is difficult to clearly demarcate which banks participate in international financial services activity based solely on location in the International Financial Services Centre. Fifteen banking licences were revoked by the Central Bank since 2010. These are set out below. All of the revocations were at the request of the banks. The rationale for the revocation is a commercial decision for each of banks involved. The seven banks marked with an asterisk had their head office address in the IFSC.
2010
- First Active plc. 31 March 2010
- EAA Bank Ireland plc.* 16 December 2010
- Postbank Ireland Limited 20 December 2010
- Bank of Scotland (Ireland ) Limited 31 December 2010
2011
DePfa-Bank Europe plc.* 02 February 2011
Pfizer International Bank Europe* 07 July 2011
Irish Nationwide Building Society 28 July 2011
ABN AMRO Retained Custodial Services (Ireland) Limited 29 July 2011
BNY Mellon International Bank Limited* 20 December 2011
2012
IBRC Mortgage Bank 25 July 2012
Commerzbank Europe (Ireland)* 26 September 2012
Zurich Bank* 14 December 2012
2013
Goldman Sachs Bank (Europe) plc. 18 January 2013
The Bank of New York Mellon (Ireland ) Limited* 01 February 2013
Irish Bank Resolution Corporation Limited 07 February 2013
I have no information on non bank licences in the IFSC.
183. Deputy Terence Flanagan asked the Minister for Finance the number of taxpayers earning more than €100,000 per annum; the amount of tax they pay; the percentage this is of the total tax take; and if he will make a statement on the matter. [22278/13]
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. In addition, the income tax liability for this cohort it is estimated at €5,077 million which represents 44% of the expected income tax yield in 2013. Numbers are rounded to the nearest hundred, tax liability amount is rounded to the nearest million, and percentage of tax liability is rounded to the nearest percentage point.
It should be noted that the figure for tax and percentage tax yield only relate to income tax and do not take account of additional liability to PRSI and Universal Social Charge.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised.
It should be noted that Gross Income is as defined in the Revenue Statistical Report 2011. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
184. Deputy Michael McGrath asked the Minister for Finance if operators are permitted to use marked gas oil rebated fuel in agricultural tractor and trailer combinations used for the general carriage of goods by road for hire or reward; and if he will make a statement on the matter. [22285/13]
View answerI am advised by the Revenue Commissioners that marked gas oil may be used in agricultural tractor and trailer combinations regardless of the purpose for which these vehicles are being used. The question of the use of such vehicles for the general carriage of goods by road for hire or reward is a matter for the Minister for Transport, Tourism and Sport.
185. Deputy Clare Daly asked the Minister for Finance if he will intervene with the Permanent TSB in order to ensure that workers' pension benefits are protected under the defined benefit scheme and to ensure that those accountable for bad investment decisions and under funding are held accountable rather than the innocent members of the scheme. [22312/13]
View answerAs the Deputy will be aware the pension arrangements for the staff of Permanent TSB are a matter for the management of that company and for the trustees of the relevant pension schemes. I understand that the proposal by the company to the trustees concerning the defined benefit pension schemes may be referred to the Labour Court although that would be an issue for the various interested parties.
As the Deputy will appreciate there are a number of factors that led to deficits arising in the defined benefit schemes at Permanent TSB. The first priority must be to reach a resolution to the issue.
186. Deputy Kevin Humphreys asked the Minister for Finance the reason a person who signed up online to pay the local property tax by direct debit has had the payment debited when the forms indicate that the payment would not be due until 21 July; and if he will make a statement on the matter. [22347/13]
View answerI am advised by the Revenue Commissioners that, from the information provided by the Deputy, the payment option in question is most likely the ‘once off’ debit instruction that allows customers pay the liability in full on 21 July 2013. This option also includes the flexibility for customers to make the payment earlier than 21 July if they so wish by inputting a specific date. The Revenue Commissioner state that if the Deputy supplies details concerning the person in question they will investigate the exact circumstances and revert.
188. Deputy Pearse Doherty asked the Minister for Finance the minimum adjustment that would be required to be made in budget 2014 to meet the original agreed deficit target as set out in the troika programme. [22364/13]
View answerUnder the Excessive Deficit Procedure a maximum General Government deficit of 5.1% of GDP is allowed for 2014. The consolidation path as set out in the Medium Term Fiscal Statement, published in November 2012, contained an adjustment of €3.1 billion to be implemented in 2014 which is consistent with achieving the target. However, as the Deputy is aware, there have been a number of developments in the intervening period, the most significant of which relates to the promissory note restructuring. It is estimated that this restructuring lessens the amount that will have to be borrowed in 2014 by approximately €1bn.
Following on from these developments and based on the purely technical assumption that the benefits of the promissory note deal will be used for deficit reduction purposes next year, our Stability Programme Update (SPU), published in April, forecast a General Government Deficit of 4.3% of GDP for 2014.
Budget 2014 will be announced on the 15th of October 2013 and in the preceding weeks and months, as further information is available, Government policy on Budget 2014 measures will be finalised. I will not be drawn into speculation at this time, on the composition of the next budget.
Any consolidation measures announced in Budget 2014 will continue to be implemented in as fair and equitable way as possible while fostering economic growth.
