Tax Yield

Questions (73)

Pearse Doherty

Question:

73. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if any of the following new rates were applied to the income earned in excess of €100,000: 42%, 43%, 44%, 45%, 46% and 47%. [35689/13]

View answer

Written answers (Question to Finance)

It is assumed that the Deputy is referring to the introduction of a third rate of income tax of either 42%, 43%, 44%, 45%, 46% or 47 % to be applied on the portion of taxable incomes in excess of €100,000 per annum. In addition, it is assumed that the threshold for the proposed new income tax rates 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 the new rates would be of the order of €52 million, €104 million, €156 million, €208 million €260 million and €312 million respectively. 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 estimates 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. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Universal Social Charge Yield

Questions (74)

Pearse Doherty

Question:

74. Deputy Pearse Doherty asked the Minister for Finance the additional Revenue that would be raised for the Exchequer if the universal social charge was increased on the portion of income over €100,000 for PAYE workers by 1%, 2%, 3%, 4%, 5% and 6%. [35690/13]

View answer

Written answers (Question to Finance)

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 by either 1%, 2%, 3%, 4%, 5% or 6% to all PAYE income earners income in excess of €100,000 would be of the order of €24 million, €47 million, €71 million, €95 million, €118 million and €142 million respectively. 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 new Universal Social Charge rates 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. This estimate is derived 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.

Banking Sector Issues

Questions (75)

Pearse Doherty

Question:

75. Deputy Pearse Doherty asked the Minister for Finance the position regarding the ongoing talks between EU officials and his Department on the future of Permanent TSB; and if he will make a statement on the matter. [35830/13]

View answer

Written answers (Question to Finance)

As I stated in response to a number of previous PQs a way forward for Permanent TSB was agreed with the Troika in April 2012 which envisaged it playing an important role in the future of Irish retail banking, being a more focused retail bank bringing an element of competition to the marketplace which has consolidated significantly since 2008. In this regard Permanent TSB submitted a Restructuring Plan to the European Commission in June 2012 and it is expected to be considered by EU officials before the end of this year. Given the passage of time since submission of the Restructuring Plan and changes in market circumstances (which include the ending of the Government’s eligible liabilities guarantee scheme, changes in base interest rates and other factors), the Directorate General for Competition (“DG Comp”) have requested updated financial forecasts from Permanent TSB. These forecasts are due to be submitted to DG Comp shortly. The request for updated financials is not unusual and the structure of the plan is broadly the same as that proposed in June 2012.

Banking Sector Issues

Questions (76)

Pearse Doherty

Question:

76. Deputy Pearse Doherty asked the Minister for Finance the fees paid by Permanent TSB to a consultancy firm (details supplied) or any other consulting agencies since 2009; and if he will make a statement on the matter. [35831/13]

View answer

Written answers (Question to Finance)

As the Deputy will be aware, notwithstanding the fact that the State is a significant shareholder in Permanent TSB, that institution is run on a commercial basis and I do not have a role in the day to day commercial decisions taken by the board and management of Permanent TSB, including in respect of the employment of external consultants and advisors. Separately, I am informed by Permanent TSB that it cannot disclose the fees paid (either to the consultancy firm whose details were supplied or to any other consultant) as arrangements entered into with individual firms are commercially sensitive. Permanent TSB has informed me that fees paid to consultants are subject to appropriate governance, including board approval where applicable.

Departmental Staff Rehiring

Questions (77)

Mary Lou McDonald

Question:

77. Deputy Mary Lou McDonald asked the Minister for Finance the number of retired civil or public servants that have been retained by his Department since January 2013 on a short-term contract, or on a consultancy basis, where normal abatement rules do not apply. [35844/13]

View answer

Written answers (Question to Finance)

In my Department no retired civil or public servant has been retained on a short term contract or a consultancy basis where normal abatement rules do not apply.

Haddington Road Agreement Savings

Questions (78)

Mary Lou McDonald

Question:

78. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide a yearly detailed breakdown of the sectoral measures and accompanying savings for the duration of the Haddington Road Agreement applicable in his Department and-or non-commercial State sponsored bodies under the aegis of his Department. [35861/13]

View answer

Written answers (Question to Finance)

Agreement will facilitate a reduction of €1 billion in the Public Service pay and pensions bill by 2016. In relation to my own Department, the savings arising under the Agreement have been incorporated in the Department’s Revised Estimate for 2013 and further details for 2014 and 2015 will be incorporated in the vote allocations in the context of the overall Estimates process. The measures applying to my Department and the relevant public bodies in my Ministerial area are set out in the relevant sectoral collective agreement under the Haddington Road Agreement, in this case the collective agreement for the Civil Service and NCSSB’s. In terms of my own Department, the relevant measures under this collective agreement, including, for example, the additional working hours and the pay reduction for those earning over €65,000, have been implemented from 1 July.

Banking Sector Issues

Questions (79)

Pearse Doherty

Question:

79. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 220 of 2 July 2013, if he stands over the statement made in his response when he said that the Central Bank of Ireland was not aware of the Anglo tapes in view of the fact that the former chairperson of Irish Bank Resolution Corporation Alan Dukes has stated that all board papers of the bank were made available to the Central Bank of Ireland and his Department so that they knew or had the information at all times regarding the tapes; in view of the fact that the Government has acknowledged that his Department was aware of the tapes, if he maintains the accuracy of the statement that the Central Bank of Ireland was unaware of the tapes; and his views on the fact that the bank is only now investigating a potential regulatory breach at Anglo Irish Bank. [35869/13]

View answer

Written answers (Question to Finance)

I believe it is important to clarify that while the Department of Finance was aware that there were recordings of phone conversations in Anglo Irish Bank to the best of my knowledge the content of the specific tapes referred to was never raised with the Department. The Central Bank was also aware of phone recordings in the bank but I have been advised by the Central Bank that it was not aware of these tapes or the content contained therein. The Central Bank is carefully studying the various transcripts emerging. This is something that is viewed very seriously. The Central Bank will be liaising with the Gardaí in this regard and is also examining whether or not any breaches of regulatory requirements may have occurred arising from the information contained in the transcripts.

Ministerial Transport

Questions (80)

Niall Collins

Question:

80. Deputy Niall Collins asked the Minister for Finance the method used to calculate the cost of ministerial transport in 2010, 2011, 2012 and to date in 2013. [35913/13]

View answer

Written answers (Question to Finance)

In response to the Deputy’s Question as an from 1 May 2011 all Cabinet Ministers with the exception of the Taoiseach, the Tánaiste and the Minister for Justice and Equality now use their own cars on official business. Prior to this date transport for Ministers was provided via the Department of Justice and Equality. The annual estimated costs as per the Department of Justice and Equality for the provision of Ministerial transport was approximately €280,000 per annum. In relation to the use of my car for Ministerial travel, the total cost has been €272,461 for the period 01 May 2011 to date in 2013. This cost includes mileage ( which is to cover car related expenses) of €41,906, the salaries paid to two civilian drivers inclusive of Employer PRSI contributions which amounted to €170,094 and travel and subsistence paid to the drivers of €60,461. This amount is significantly below estimated annual cost under the previous domestic Ministerial transport regime for each Minister.

EU Directives

Questions (81)

Andrew Doyle

Question:

81. Deputy Andrew Doyle asked the Minister for Finance further to Parliamentary Questions No. 169 of 28 May 2013, and 72 on 11 July 2013, if he will detail the representations received by the Central Bank of Ireland from industry stakeholders and organisation regarding the Markets in Financial Instruments Directive regarding the expansion or watering down of the Directive; if he will provide a full list of the persons and organisations from whom these representations came; the number of meetings the Central Bank of Ireland have had with stakeholders and interested parties regarding MiFID; with whom they were held and the date on which they took place; and if he will make a statement on the matter. [35923/13]

View answer

Written answers (Question to Finance)

As an independent body, the central bank does not provide me with detailed reports on their consultations with industry on any matter and I do not oversee these processes. However, I would draw to your attention that MiFID II is not yet agreed and therefore any consultations the Central Bank might have on matters placed within their discretion by MiFID II, when agreed, have not taken place. I understand from the Central Bank that it adopts a general policy of transparency in relation to consultations and, therefore, in due course it can be expected to publish responses received in relation to any matter arising from MiFID II on which it initiates a public consultation. In addition, senior representatives are accountable to committees of this house in relation to such matters.

Fuel Laundering

Questions (82)

Éamon Ó Cuív

Question:

82. Deputy Éamon Ó Cuív asked the Minister for Finance the reason the licence fee for the sale of agricultural diesel has increased to €250; and if he will make a statement on the matter. [35938/13]

View answer

Written answers (Question to Finance)

The laundering of marked diesel and the distribution and sale of laundered fuel poses a serious threat to tax yield and to legitimate businesses. As part of the strategy to combat these illegal activities, all traders who deal in, or deliver, marked diesel or marked kerosene have, since 1 October 2012, been required to hold a marked fuel trader’s licence. This is an annual licence and it is subject to a payment of excise duty of €250. This is the same amount as has applied since 2001, to a licence for selling or delivering petrol or auto-diesel. I am informed by the Revenue Commissioners, who have responsibility for Mineral Oil Tax and the control of mineral oils for taxation purposes, that the introduction of the marked fuel trader’s license is a key component of their strategy in this area. A licence is subject to conditions set by Revenue, and it may be revoked for failure to keep to those conditions. In addition, new regulatory requirements have applied since 1 January this year for the keeping of mineral oils, including marked diesel and marked kerosene, at licensed premises or places, and for the proper documentation, reporting and recording of deliveries of mineral oil to and from those premises and places.