Written Answers Nos. 168-179
168. Deputy Michelle Mulherin asked the Minister for Finance the criteria the Revenue Commissioners apply when establishing whether or not two residential properties with shared services operating as one household are one unit or not for the purposes of the local property tax charge on the owner; and if he will make a statement on the matter. [26906/13]
View answerBased on the information provided by the Deputy it is not possible to give a definitive reply. However, by way of general information, the following may be of relevance. Local Property Tax (LPT) is a self-assessed tax and is chargeable in respect of a building, or a part of a building, that is in use, or suitable for use, as a dwelling. A single building may contain several separate residential properties within it, for example, a building containing apartments. Where an individual residential property within a building is suitable for use as dwelling in its own right, i.e. a self- contained dwelling, it should be valued as a single residential property for LPT purposes. In the example of a block of apartments each apartment would be treated as a separate residential property for the purposes of LPT and an LPT Return should be filed for each apartment. Where a building contains units that are not suitable for use as dwellings in their own right, such as a bedsit, the building as a whole should be valued for LPT purposes and one LPT Return can be filed.
Whilst the strict legal position is that any self-contained dwelling, such as a granny flat, is treated as a separate residential property that will incur a separate LPT liability, Revenue recognises that certain types of dwelling that are an integral part of a larger building may be difficult to value and sell on the open market. Therefore Revenue will give a liable person the option of valuing a granny flat as part of the overall building where the liable person in relation to both parts of the building is the same. However, where there is a different liable person in relation to the granny flat and the rest of the building, the granny flat should be valued separately for LPT purposes. This treatment also applies to other similar types of dwelling that are an integral part of the overall building such as converted garages and side extensions.
169. Deputy Peter Mathews asked the Minister for Finance his views on a matter (details supplied) in respect of the defined benefit pension scheme; and if he will make a statement on the matter. [26913/13]
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. It would not be appropriate for me to comment on the implications for an individual arising out of any proposed restructuring by Permanent TSB of its defined benefit pension schemes. I understand that a proposal by the company to the trustees in relation to the defined benefit pension schemes is in the process of referral to the Labour Court for discussion with interested parties.
170. Deputy Róisín Shortall asked the Minister for Finance if he will request Revenue to arrange for a partial refund of the local property tax (details supplied) in Dublin 11 arising from the home owner mistakenly paying the Revenue estimate amount which they now realise does not correspond to the true value of their home and they have effectively been over-charged; and if he will make a statement on the matter. [26928/13]
View answer171. Deputy Róisín Shortall asked the Minister for Finance the reasons Revenue has not responded to a letter issued to them on 11 April and again on 30 April 2013 from a person (details supplied) in Dublin 9 in relation to the mistaken over-valuation of a property and the need to make an adjustment; and if he will ensure that the correspondence is replied to and that the necessary adjustment is made and the associated payment reduced. [26929/13]
View answer173. Deputy Róisín Shortall asked the Minister for Finance the position regarding an application to defer the local property tax in respect of a person (details supplied) in Dublin 12; if he will provide confirmation that an application has been received and processed in respect of this person; the confirmation being provided, if any, for such applications, the way it is proposed to address this matter; and if he will make a statement on the matter. [26948/13]
View answerI propose to take Questions Nos. 170, 171 and 173 together.
I am informed by the Revenue Commissioners that Local Property Tax (LPT) Returns, personalised letters and an LPT Guide issued earlier this year to owners of 1.69 million residential properties either by post or by way of their ROS (Revenue Online Service) inbox. I previously outlined in my response to Parliamentary Question No 74 of 30 May 2013 (26457/13) that the Revenue Commissioners had confirmed that at the end of the extended LPT filing deadline on 29 May 2013, 1,539,822 LPT Returns had been filed. I am further informed that this number is now in excess of 1.55 million.
I understand that the Chairman of the Revenue Commissioners recently advised the Joint Oireachtas Commitee on Finance and Public Service Reform that over 400,000 LPT returns were filed in the final few days. She also advised that over 150,000 work items relating to the LPT register need to be processed, including for example correspondence and emails. Processing these returns and work items will take some time to complete.
Given these volumes, the Deputy will appreciate that it will not be practicable in all instances to identify and locate individual cases in the time allowed, without conducting a protracted examination of the Revenue Commissioners’ records, which would be prohibitive in terms of the resources required.
However, I am assured by Revenue that work is progressing rapidly. Direct contact is being made with taxpayers, including the cases raised by the Deputy, as items are being cleared. This has already been done in relation to the details supplied in question Reference No. (26928/13). In that case I am advised by the Revenue Commissioners that a refund of LPT does not arise. A member of the LPT Branch has contacted the person in question who confirmed that he paid the correct amount of LPT but selected a higher band on the LPT Return in error. Revenue has confirmed to me that the person in question is happy that his LPT payment and filing details are correctly reflected and the matter is resolved.
172. Deputy Pearse Doherty asked the Minister for Finance the reason persons with two or more properties are liable in 2013 for payment of non-principal private residence and local property tax; his views on whether this is a double taxation; the reason the fees are not consolidated; if he will explain the difference in the fees; and if he will make a statement on the matter. [26915/13]
View answerThe Non-Principal Private Residence (NPPR) Charge, which is a matter for the Minister for the Environment, Community and Local Government, is an annual charge of €200 introduced by the Local Government (Charges) Act 2009, as amended by the Local Government (Household Charge) Act 2011. It applies to a residential property which is not used as the owner’s sole or main residence, with limited exemptions. The Local Property Tax (LPT) is payable in respect of all residential properties, subject to certain exemptions. It is administered by the Revenue Commissioners. Liability for the LPT arises where a person owns a residential property on the liability date which is 1 May 2013 for the year 2013 and, for subsequent years, 1 November in the preceding year (that is, the liability date for 2014 is 1 November 2013). The tax will be based on the chargeable value (market value) of a residential property on the valuation date.
The inter-Departmental Group chaired by Dr. Don Thornhill on the design of a property tax (the “Thornhill Group”) recommended that the NPPR should be absorbed into the LPT as a separate supplemental tax, in addition to the LPT at the standard level applying to non-principal private residences. The Government did not accept this recommendation. The NPPR Charge will be collected in 2013, when a half-year LPT applies, but will be discontinued thereafter. The Government decided to extend the NPPR Charge into 2013 to ensure as smooth a transition as possible for local authorities pending the introduction of the full LPT. As the Government had decided that the NPPR Charge would only apply for one further year, it made sense for the NPPR Charge and the LPT to be administered separately.
As set out in the Local Government (Charges) Act 2009, as amended, liability to pay the NPPR is determined on the basis of ownership of the property in question on the "liability date", which is 31 March for 2013. The LPT does not come into effect until 1 July 2013.
The Household Charge and the NPPR charge co-existed in 2012 and certain properties would have been liable to both charges.
Question No. 173 answered with Question No. 170.
174. Deputy Dominic Hannigan asked the Minister for Finance the amount of revenue that would be gained if there was a 1% increase in income tax on those who are earning over €65,000; and if he will make a statement on the matter. [26971/13]
View answerIt is assumed that the threshold for the proposed new income 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 third rate of income tax of 42%, to be applied on the portion of taxable incomes in excess of €65,000 per annum, would be of the order of €87 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.
These figures are 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. They are, therefore, provisional and subject to revision.
175. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 80 of 21 May 2013, when he expects the Central Bank of Ireland's administrative sanctions procedure into historic lending practices at Irish Nationwide Building Society to conclude. [26972/13]
View answerI have been advised by the Central Bank that the investigation is on-going but that for legal reasons, including the Bank’s confidentiality obligations pursuant to section 33AK of the Central Bank Act 1942, no further details can presently be disclosed.
176. Deputy Thomas P. Broughan asked the Minister for Finance his plans to invite fresh expressions of interest for all the positions of Council Member on the Financial Services Ombudsman Council when the term of the current council expires on 28 October 2013. [26982/13]
View answerI will give consideration to the mechanism for making appointments to the Council at an appropriate time in advance of the expiry of the current Council’s term.
177. Deputy Thomas P. Broughan asked the Minister for Finance his plans to review the remuneration given to the Financial Services Ombudsman Council which is currently €21,600 per annum for the chairman and €12,600 per annum for board members; his views on whether the €486,000 paid personally to council members during the period 2008 to 2013 by way of fees is excessive; and if he will make a statement on the matter. [26983/13]
View answerFirstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions. I have no role in the day to day workings of the office.
The Government at its meeting on 5 May 2009 approved a 10% reduction of fees paid to non-executive chairpersons and members of the boards of State Bodies. The Financial Services Ombudsman Council fees were revised down following the Government Decision with Council members receiving €12,600 and the Chairperson receiving €21,600.
I have been informed by the Financial Services Ombudsman that a total of €530,183 has been paid to the Financial Services Ombudsman Council for the period 2008 to 31 March 2013. The details are as follows:-
|
Year |
Fees Paid to Council Members |
|
2008 |
€131,333 |
|
2009 |
€100,800 |
|
2010 |
€97,200 |
|
2011 |
€95,100 |
|
2012 |
€84,600 |
|
2013 |
€21,150 |
The setting of fees for non-executive chairpersons and members of the boards of State Bodies is a matter for my colleague the Minister for Public Expenditure and Reform. I have been informed that he has no plans at present to review the fees.
178. Deputy Michael Lowry asked the Minister for Finance if he will provide an update on the measure introduced in Budget 2013 to provide capital gains tax relief to enable farm restructuring or the swapping of farm land; if EU approval has been given for this measure; if not when such approval is expected; the steps being taken to secure an approval; if he will ensure that any such swaps or transfers undertaken since 1 January will be eligible for this relief; and if he will make a statement on the matter. [26998/13]
View answerSection 604B Taxes Consolidation Act 1997, introduced by Section 48 Finance Act 2013, provides for a capital gains tax relief for farm restructuring, subject to a commencement order to be made by the Minister for Finance, as EU State Aid approval is required for the relief. This approval has recently been received and the commencement order will be made shortly.
The relief will apply to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2015 where Teagasc certifies that the transactions are made for farm restructuring purposes. The first sale or purchase, or the exchange, of agricultural land must occur in the period from 1 January 2013 to 31 December 2015 and the subsequent sale or purchase of such land must occur within 24 months of that sale or purchase and on or after 1 January 2013.
179. Deputy Michael McGrath asked the Minister for Finance the proportion of completed local property tax returns which corresponded with the Revenue assessment of the value of the property; the property where the completed return was lower than the Revenue assessment and the proportion where the valuation was higher; the cumulative impact on the total revenue expected from these changes; and if he will make a statement on the matter. [27037/13]
View answer181. Deputy Pearse Doherty asked the Minister for Finance the number of local property tax returns that have been received from each county as a percentage of eligible properties; if he will provide a breakdown for each county of the number of returns that were electronic and the number made by hand. [27077/13]
View answer194. Deputy Andrew Doyle asked the Minister for Finance further to Parliamentary Question No. 74 of 30 May 2013, if he will provide a breakdown of the figures of the returns in each rate band; the total amount of money they have received for the number of properties in each rate band; and if he will make a statement on the matter. [27583/13]
View answerI propose to take Questions Nos. 179, 181 and 194 together.
I am informed by the Revenue Commissioners that Local Property Tax (LPT) Returns, personalized letters and an LPT Guide issued earlier this year to owners of 1.69 million residential properties either by post or by way of their ROS (Revenue Online Service) inbox. I previously outlined in my response to Parliamentary Question No 74 of 30 May 2013 (26457/13) that the Revenue Commissioners had confirmed that, at the end of the extended LPT filing deadline on 29 May 2013, 1,539,822 LPT Returns had been filed. I am further informed that this number is now in excess of 1.55 million.
I understand that the Chairman of the Revenue Commissioners recently advised the Joint Oireachtas Commitee on Finance and Public Service Reform that over 400,000 LPT returns were filed in the final few days. She also advised that over 150,000 work items relating to the LPT register need to be processed, including for example correspondence and emails. Given these volumes, processing returns and work items will take some time to complete. Even if it were practicable to do the detailed analysis required to answer the Deputies questions now, until a significant proportion of this work has been completed, the analysis would not be very sound. I am advised by the Revenue Commissioners that they will make relevant data publicly available as soon as possible.
The Budget estimate prepared by my Department for Local Property Tax projected an overall yield of €250 million in 2013 and €500 million in 2014, and I am advised by the Revenue Commissioners that they are confident that these estimates will be achieved. At the end of May over €121m had already been transferred by Revenue to the Exchequer, which is a very significant sum given that payment of the tax is not due until 1 July 2013. Further payments will be collected between July and December 2013 as the various phased, and other, payment options available to property owners are met. The Deputies will be aware that the Finance Local Property Tax (Amendment) Act 2013 provided that payments for 2013 from local authorities and social housing associations will not be due until on or before 1 January 2014.
