Written Answers Nos. 139-156
139. Deputy Sandra McLellan asked the Minister for Finance if he will provide a breakdown in tabular form of the amount of money raised from the local property tax in each local authority area in County Cork; and if he will make a statement on the matter. [38077/13]
View answer143. Deputy Catherine Murphy asked the Minister for Finance if he will publish the numbers of residents per city and county that have registered and paid the property tax in 2013; and if he will make a statement on the matter. [38780/13]
View answer144. Deputy Catherine Murphy asked the Minister for Finance if he will publish the numbers of residents in each town in County Kildare that have registered and paid the property tax in 2013; and if he will make a statement on the matter. [38781/13]
View answerI propose to take Questions Nos. 139, 143 and 144 together.
I am advised by the Revenue Commissioners that compliance data in relation to Local Property Tax (LPT) are only available broken down by city and county councils nationally, not by individual towns or by numbers of residents, and the most up to date figures available are published on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-preliminary-data.pdf. To answer Deputy McLellan’s question and as can be seen from the latest figures available at the link provided, the amount of LPT declared and paid for Cork City and County as of 23 July 2013 is as follows:
|
Local authority |
LPT declared as of 23 July 2013 |
LPT paid as of 23 July 2013 |
|
Cork City |
€ 5,330,718 |
€4,105,938 |
|
Cork County |
€19,549,739 |
€15,105,636 |
Work is ongoing to refine the LPT register and more up-to-date details will be published in due course. The Commissioners also advise that, as data are compiled on the basis of the number of properties, data in relation to the number of residents are not available.
140. Deputy Seán Kyne asked the Minister for Finance if he will outline the number and location of projects for which his Department has secured funding from the European Investment Bank in 2013; and the progress of the engagement between his Department and the Council of Europe Bank. [38091/13]
View answerTo date this year, the EIB Board of Directors has approved three loans for Irish projects. These include a €100 million loan to the Exchequer for the construction, extension and refurbishment of public school buildings on a nationwide basis; a €100 million loan for the University of Limerick for, inter alia, the construction of new medical, pharmaceutical and engineering facilities; and a loan for €118 million for Vodafone Ireland Ltd. As well as the above mentioned, a loan for €200 million has just been approved by the Board of Directors on 17 September 2013, for ESB in relation to its Renewable Network in the south-west region. In addition, the following loans which had been approved by the Board of Directors prior to 2013 were signed by the Bank and the relevant project promoter this year: a €100 million loan intermediated and matched by AIB to provide an additional €200 million for SMEs to support investment in a range of sectors including agribusiness, services, retail and manufacturing throughout the country; a loan of €72 million for the N11 PPP Roads; and a €90 million loan for Bord Gáis in relation to Onshore Wind Development at locations in Leinster, Munster and Connaught. Overall, funding from the EIB this year is set to improve upon 2012 levels.
With regard to the Council of Europe Development Bank (CEB), in March, 2013, the Bank approved loan applications by the National Development Finance Agency (NDFA) amounting to €41 million on behalf, respectively, of the Irish Prison Service and the Irish Youth Justice Service towards the part-financing of a new prison facility in Cork (€22.7 million) and a National Children Detention Facility at Oberstown, Co. Dublin (€18.3 million).
141. Deputy Andrew Doyle asked the Minister for Finance the font styles that are permitted to be used on Irish car registration plates; the date on which the last review of such fonts was conducted by the relevant authority; and if he will make a statement on the matter. [38267/13]
View answerI am informed by the Revenue Commissioners that Statutory Instrument (S.I.) No. 318 of 1992, Vehicle Registration and Taxation Regulations (as amended by Statutory Instrument No. 542 of 2012) prescribes the format, lettering, dimensions and technical specifications of registration plates to be displayed on vehicles in the State. Font styles not conforming to the style displayed on the registration plate illustrative diagrams are not permitted. I am further informed by the Revenue Commissioners that the current formatting was adopted when Revenue took over the registration function on 1 January 1993. There have been a number of developments in the 20 years since, including the addition of a digit in 1999 to cater for the increase in the number of registrations, the increasing use of character recognition technology and, most recently, the addition of a digit to provide for two registration periods per year. However, none of these changes have had any effect on the font style and there are no plans to carry out a review. Further information may be obtained on the Revenue website at the following link: http://www.revenue.ie/en/tax/vrt/leaflets/format-vehicle-registration-plates.html
142. Deputy Richard Boyd Barrett asked the Minister for Finance in view of the increase in commercial water charges next year when Irish Water add VAT to the bills, his plans to ensure that small and struggling businesses avoid this increase. [38443/13]
View answerAt present, work is underway on the overall structure of Irish Water, its financial model and the treatment of its function for taxation. The outcome of this work will determine the VAT treatment of water charges. I would draw to the Deputy’s attention that in the case where VAT is applied to the charge for water supplied to VAT registered businesses, those businesses would be entitled, under the normal VAT rules, to claim that VAT back. In such case, the imposition of VAT would not impact on small and struggling businesses.
145. Deputy Nicky McFadden asked the Minister for Finance if the VAT rate of 9% for restaurant and catering services, hotel and holiday accommodation, admissions to cinemas, theatres, certain musical performances, museums and art gallery exhibitions, fairgrounds or amusement park services, the use of sporting facilities, hairdressing services, and printed matter will be maintained; if he will acknowledge the significant role this VAT rate plays in developing the food, tourism and hospitality sector; and if he will make a statement on the matter. [36797/13]
View answer165. Deputy Finian McGrath asked the Minister for Finance if he will keep the VAT rate at 9% in restaurants in order to save and develop employment. [37221/13]
View answer166. Deputy Ciara Conway asked the Minister for Finance if he will give a commitment to retaining the rate of VAT for the food, hospitality and tourism sector at 9 %; and if he will make a statement on the matter. [37235/13]
View answer194. Deputy Dominic Hannigan asked the Minister for Finance if he will confirm that the 9% VAT rate that is in place for the tourism sector will be maintained in Budget 2014; and if he will make a statement on the matter. [37696/13]
View answer208. Deputy John Halligan asked the Minister for Finance if he will make a commitment to keep the VAT rate at 9% to benefit the hospitality sector which will have a positive knock-on effect for all of those linked with the industry; and if he will make a statement on the matter. [37837/13]
View answer226. Deputy Tom Fleming asked the Minister for Finance if he will retain the VAT rate at 9% for the tourism and hospitality sector into 2014 and beyond and take into consideration the positive implications the decision to reduce the VAT rate has had on the industry in 2012 and 2013; and if he will make a statement on the matter. [38344/13]
View answerI propose to take Questions Nos. 145, 165, 166, 194, 208 and 226 together.
The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In line with best international practice it was introduced as a temporary measure and is due to expire at end December 2013, at which point it will revert to 13.5%. Retaining the 9% rate would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere. Any proposal to maintain the 9% VAT rate will be considered in the context of the Budget.
146. Deputy Joe McHugh asked the Minister for Finance in view of the registrations of just 126 motor homes here in 2013 compared with 1014 in 2009 and 880 in 2010, if he will review the performance of the sector with reference to price elasticity of demand and cross-price easticities as well as income factors; and if he will make a statement on the matter. [36855/13]
View answerMotor Homes or Motor Caravans have been liable to VRT since its introduction and were previously classified for VRT purposes as Category A, Category B or Category C vehicles, depending on the weight of the vehicle, and liable to VRT at the rate appropriate to their classification. Since 2011, however, following the adoption of a revised EU vehicle classification system for VRT Motor Caravans are classified as Category B vehicles and are liable to VRT at the 13.3% rate. There are no plans to review the VRT classification of these vehicles or the performance of the sector at this time.
147. Deputy Pearse Doherty asked the Minister for Finance the supports available from his Department to the aviation leasing industry including exemptions from VAT and other forms of taxation and an estimation of the value of the exemptions to the Exchequer and the number employed in this sector. [36901/13]
View answerIn relation to the taxation of the aviation leasing industry, I am informed by the Revenue Commissioners that the following treatment applies:
Corporation Tax
A company carrying on a trade of aircraft leasing would, similarly to any other company carrying on a trade, be charged to corporation tax in respect of its trading income at a rate of 12.5%. When computing its profits for an accounting period, any company is entitled to claim capital allowances in respect of the wear and tear on plant and machinery owned by it and in use for the purposes of its trade at the end of that accounting period. In the case of an aircraft leasing company, this means that the company could claim a capital allowance in respect of the cost of acquiring an aircraft. The allowance is granted over a period of 8 years at a rate of 12.5% per annum.
Stamp Duty
Section 113 Stamp Duties Consolidation Act 1999 exempts from stamp duty instruments for the sale, transfer, or other disposition , either absolutely or otherwise, of any ship, vessel or aircraft, or any part, interest, share, or property in any ship, vessel or aircraft. Section 85 Stamp Duties Consolidation Act 1999 (as amended by FA 2013) provides that stamp duty is not chargeable on the issue, transfer or redemption of an enhanced equipment trust certificate. An enhanced equipment trust certificate is defined as meaning “loan capital issued by a company to raise finance to acquire, develop or lease aircraft”
VAT
Irish VAT is not charged on lease payments in respect of an aircraft where the aircraft is effectively used wholly outside the EU.
The leasing of aircraft to qualifying international airlines is subject to VAT at the zero rate. The aircraft must be used by an airline flying chiefly for reward on international routes. The lessor is entitled to deduct VAT incurred on the acquisition of the aircraft and other expenditure in connection with the leasing activity, subject to the usual restrictions. In such circumstances, the lessor will be in a continuous VAT repayment position.
A range of other services which lend support to the aviation leasing industry are also zero-rated for VAT purpose:
- the supply, repair, maintenance and hiring of equipment incorporated or used in aircraft flying chiefly for reward on international routes;
- the supply of goods for the fuelling and provisioning of aircraft flying chiefly for reward on international routes; and
- the supply of navigation services by the Irish Aviation Authority to meet the needs of aircraft flying chiefly for reward on international routes.
The 23% standard rate of VAT is applicable to other aviation leasing arrangements. In such cases, the lessor is entitled to deduct VAT incurred on the acquisition of the aircraft and on expenditure incurred in connection with the taxable leasing activity.
Cost to the Exchequer of these exemptions
There is no overall costing of the value of the Stamp Duty exemption referred to above. As indicated in my reply to the Deputy’s questions on the tax revenue generated by the aircraft leasing sector, the sector is in a net repayment position in respect of VAT as a result of the zero rating of services.
Numbers employed by the aircraft leasing industry
Surveys on the aircraft leasing industry in Ireland indicate that it supports around 1,000 direct employees and around 500 indirect employees in high-value employments.
148. Deputy Maureen O'Sullivan asked the Minister for Finance the reason a person (details supplied) pays more in PRD tax than on their superannuation; and if he will make a statement on the matter. [36908/13]
View answerPension Related Deduction (PRD) is not a tax. It is a deduction from the remuneration of public servants who are members of a public service pension scheme or who have an analogous arrangement. The implementation of the deduction would not be a matter for my Department or the Revenue Commissioners, but rather for the employer of the individual concerned. It is not however possible in the time available to identify the individual’s specific employer from the details provided. If the Deputy is in a position to provide such details to me, I will arrange for the query to be directed to the appropriate Minister for response though it might perhaps be best if the individual could, in the first instance, approach their employer directly.
149. Deputy Thomas Pringle asked the Minister for Finance the approach of the Irish Government to current proposals encompassing the ECB, the European Commission, the national Governments of the 28 Union and l7 Eurozone states in regard to a mechanism for the Financial Supervision of the Euro and the establishment of a Single Financial Resolution mechanism for the Euro; and if he will make a statement on the matter. [36918/13]
View answerIn May 2012 the Commission called for a banking union to restore confidence in banks and in the euro. This was reflected in the report on Economic and Monetary Union prepared by the Presidents of the European Council, the Commission, the Eurogroup and the European Central Bank. A complete banking union requires common supervision, deposit insurance, a common resolution framework and a common fiscal backstop. Earlier this year the first part of the Banking Union was put in place following agreement on the proposal for common supervision, the Single Supervisory Mechanism (SSM). The SSM will apply to the 17 euro-area Member States and is open to the non-euro-area Member States who wish to participate.
Following the adoption of the SSM the European Council called for the creation of a Single Resolution Mechanism (SRM) for banks covered by the SSM. This follows from the principle underpinning the banking union that where supervision is centralised it should be complemented with a centralised resolution authority. The SRM proposal consists of the Single Resolution Board and a Single Resolution Fund, financed by contributions from the financial sector. For legal reasons (as supervision is exercised by the ECB, resolution should be exercised by the same level of authority), the Commission will take the final decision to trigger resolution and the use of a single resolution fund. The SRM will apply the resolution tool-kit in line with the Bank Recovery and Resolution (BRR) proposal which is currently being negotiated at trilogue level.
Under, the proposal, a Single Resolution Board (SRB) would prepare and carry out the resolution of any bank in a Member State participating in the Banking Union. It would have broad preparatory powers and be responsible for the key decisions on how a bank would be resolved. The Board will involve the representatives of national resolution authorities of participating Member States, the ECB and the Commission, as well as an Executive Director and a Deputy Executive director.
I am working with ministers from the other Member States at the ECOFIN Council to bring about the SRM. My officials are engaged in technical negotiations on the proposal. Ireland welcomes the proposal for the SRM as the next essential step to complete the banking union. It will assist in achieving the objective established by the Heads of states and governments of breaking the link between the sovereign and the banking sector. It should apply to all banks in the participating Member States and have a credible backstop to ensure that national budgets are not exposed by decisions of the SRB.
150. Deputy Colm Keaveney asked the Minister for Finance in view of the special case of prize bonds, if he will consider raising the anti money laundering requirement purchase threshold from €25 to €100 in order that a balance may be achieved between convenience of purchase for customers and the need to counter money laundering; and if he will make a statement on the matter. [36923/13]
View answerEuropean legislation has been adopted to protect the financial system and certain professions and activities from being misused for money laundering and financing of terrorism purposes. The anti-money-laundering obligations applicable in Ireland derive from the Third EU Money-Laundering Directive. The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 was enacted in July 2010 to transpose the Third Money Laundering Directive (2005/60/EC) and its Implementing Directive (2006/70/EC) into Irish Law. Part 4 of the Criminal Justice Act 2010 sets out the obligations of “designated persons” in relation to customer identification. One such obligation set out in the Act is the obligation to conduct customer due diligence, prior to the establishment of a business relationship. Customer due diligence refers to the identification of customers and that of any beneficial owners of financial products associated with the customer.
An Post and the Prize Bond Company are deemed to be a “designated person” under the Criminal Justice Act 2010 as they fall within the definition of a “financial institution ”. In light of this, An Post and the Prize Bond Company are required to comply with the relevant provisions of the Act in relation to the sale of Prize Bonds to customers. This means, in practical terms, that customer due diligence must be conducted on all purchases of prize bonds, irrespective of value.
The extent to which any particular person or product may be exempted from the customer due diligence requirements of the Act is determined by reference to the Act having regard to the underlying Directives. The Central Bank of Ireland has no discretion to exempt certain firms from the requirement to comply with the Act. In light of these considerations, I am exploring with the National Treasury Management Agency (NTMA) and my colleague the Minister for Justice whether or not exemptions available under the Directives may be applied to small value purchases of prize bonds facilitated on behalf of the State by An Post and the Prize Bond Company.
151. Deputy Tony McLoughlin asked the Minister for Finance if consideration will be given to the current VAT rate on coal, based on the fact that there remains a price differential of 7.5% in terms of VAT between this Country and Northern Ireland and furthermore that the price difference from 1 May 2014 will be €52.67 per tonne due to proposed increases in carbon taxes (details supplied); and if he will make a statement on the matter. [36968/13]
View answerWith regard to the VAT rate applicable to supplies of coal, any change in VAT rates must be in compliance with EU VAT law, with which Irish VAT law must comply. The EU VAT Directive provides that coal, in general, should apply at the standard VAT rate of a Member State, which in Ireland is 23%. However, the VAT Directive has a number of derogating provisions whereby Member States may maintain a tax rate applicable at a certain date even though such supplies would ordinarily be supplied at the standard rate. The UK can apply the 5% rate to coal and other fuels used for residential purposes on the basis that they had a zero VAT rate in place for those supplies on 1 January 1991. This provision also allows Ireland to apply the zero VAT rate to certain foodstuffs, children’s clothes and shoes, and certain medicines on the basis that the VAT rate in force on 1 January 1991 was zero. However, it is not possible for Ireland to apply a zero rate or 5% rate to coal, as we did not apply a zero rate to coal on that date. Nonetheless, as Ireland applied a reduced VAT rate to coal on 1 January 1991, this allows us to continue to apply a reduced rate to coal, but only where the rate is 12% or more. In this context, the only means of reducing the VAT rate on coal would be through a general reduction in the 13.5% VAT rate, which would be excessively costly to the Exchequer. The application of carbon tax on solid fuels does give rise to a price differential with Northern Ireland, but the supply of solid fuel in the State is strictly controlled under regulations made by the Minister for the Environment, Community and Local Government and the commencement of solid fuel carbon tax, with effect from 1 May 2013, was announced on that basis in Budget 2013.
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, Community 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, coal merchants supplying coal products in the State, including those based in Northern Ireland, are obliged to register with the Environmental Protection Agency and comply with sulphur content and packaging standards applicable to coal sold in the State. These standards differ to those applying in Northern Ireland. 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 the standard which applies in Northern Ireland. Therefore, coal supplied in Northern Ireland, to standards applicable in that market, do not meet the fuel standards applicable in the State and may not be sold in the State. Compliance with the Regulations is enforced by the Local Authorities.
152. Deputy Andrew Doyle asked the Minister for Finance the percentage sharehold that the Government has in the Bank of Ireland; and if he will make a statement on the matter. [37016/13]
View answerAs stated in the published financial statements of Bank of Ireland as at 30 June, 2013 (page 96), the State holds 15.13% of the Ordinary Stock of Bank of Ireland. There has been no change to the State’s holding of the ordinary stock in Bank of Ireland since the recapitalisation of the bank and the associated disposal to a consortium of investors, in 2011. As of September 9th 2013, the shares were valued at 23.5c per share, putting a total value of €1,060m on the State’s equity investment. This represents an increase of 106% year to date and reflects the market’s response to the substantial progress the bank has made in returning itself to profitability.
153. Deputy Michelle Mulherin asked the Minister for Finance the amount being spent by the National Treasury Management Agency on a yearly basis on surveillance both inside and outside the jurisdiction; and if he will make a statement on the matter. [37034/13]
View answerThe National Treasury Management Agency (NTMA) has advised that, excluding the National Asset Management Agency, the only applicable expenditure is incurred by the State Claims Agency (SCA). The NTMA is designated as the SCA when performing the claims management and risk management functions delegated to it under the National Treasury Management Agency (Amendment) Act 2000. As part of its functions in relation to the management of claims against the State, the SCA has checks carried out, in certain cases, to assist in the identification of any fraudulent claims. The SCA incurred expenses of €160,000 in relation to these services in 2012. At the end of 2012 the SCA had 5,755 active claims under management with an estimated outstanding liability of €1.1 billion.
154. Deputy Michelle Mulherin asked the Minister for Finance the nature and means of surveillance and searches being undertaken by National Asset Management Agency and service providers on its behalf of the developers or other persons who owe money to NAMA; and if he will clarify that confirmation has been obtained from service providers that they are acting within the law in this regard; and if he will make a statement on the matter. [37035/13]
View answerNAMA advises that it carries out asset searches in certain circumstances with the view to compiling full information on a debtor’s assets and liabilities and to recover for the taxpayer assets that some debtors have omitted to disclose in their Statement of Affairs to NAMA. NAMA advises that asset searches are typically carried out by searching various public registers and this information is compiled into an asset search report. NAMA advises that the asset search report comprises information that is publicly searchable and publicly available in various jurisdictions as appropriate. As previously advised, the contractual position with NAMA is that service providers are, in the conduct of asset searches, obliged to operate fully within the applicable laws in the appropriate jurisdictions in which the searches are undertaken and NAMA advises that its service providers have confirmed that this is the case.
155. Deputy Andrew Doyle asked the Minister for Finance if discussions have been held between officials in his Department on reintroducing a car scrappage scheme in the coming twelve months; if discussions have taken place with other Departments; and if he will make a statement on the matter. [37050/13]
View answerMy Department has received a pre-Budget submission from SIMI which includes, among other things a proposal for a swappage scheme. All such proposals will be considered in the context of the forthcoming Budget.
156. Deputy Andrew Doyle asked the Minister for Finance further to Parliamentary Question No. 111 on 18 July 2013; his views that the IBAN format for account identification will be suitable for the single euro payments area in view of the fact that the traditional means of account identification here such as Bank's National Sort Code and Account Numbers will no longer be used; his views that both Bank Identifier Code and IBAN will continue to enable easy and burdenless transactions and financial dealings for both consumer and businesses here working with the United States of America; and if he will make a statement on the matter. [37058/13]
View answerThe International Bank Account Number, (IBAN) uniquely identifies an individual account, at a specific financial institution, in a particular country. The banks in all countries in the European Economic Area and in most states of the Middle East, North Africa and Caribbean have implemented the IBAN format for account identification. The IBAN contains a combination of information including the National Sort code (NSC), the account number and elements from the Bank Identifier Code (BIC) system. In Ireland the IBAN is 22 characters long. Currently in Ireland the banks use a routing system based on the NSC (National Sort Code) and account number. For international transfers the NSC is replaced by a BIC (Bank Identifier Code). BICs are usually 8 digits but can be up to 11 digits long and identify the beneficiary's bank. For example Bank of Ireland’s BIC is BOFI IE2D whereas AIB’s is AIBK IE2D.
Under the Single European Payments Area (SEPA) from 1 February 2014 consumers and business will have to use the IBAN and BIC for account identification purposes and for making transactions. The IBAN and BIC are contained on every bank statement issued in Ireland. As the IBAN contains the national sort code and bank account number already in use in Ireland and contains the elements of the BIC, it contains sufficient information to route a payment efficiently to a destination bank (whether local or overseas) while also containing information about the exact account at that bank branch. As such it is suitable to allow the efficient conducting of business. The United States of America is one of a number of countries that do not use IBAN at present. It is unlikely that the US will move to the IBAN standard in the near future and as such there will be no change for consumers and businesses here transacting with consumers or businesses in the United States of America.
