Written Answers Nos. 230-243
230. Deputy Thomas Pringle asked the Minister for Finance further to Parliamentary Question No. 202 of 11 June 2013, if he will provide an update on the matter raised and any decisions made on foot of this report. [38520/13]
View answerI expect to present the Report on the Standard Bank Account Pilot Project to the Government very shortly. It will then be published on my Department's website. I will inform the Deputy when this has been done.
231. Deputy Catherine Murphy asked the Minister for Finance if he will consider the introduction of a tax on online gambling; and if he will make a statement on the matter. [38525/13]
View answerThe Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State. This means, for example, that a business which engages in online bookmaking and which accepts bets from people in this country will be liable for betting duty on those bets, irrespective of where that business is based. The existing betting duty (1%) will be applied to such bets. The Finance Act also provides for the taxation of Betting Exchanges under the new arrangements. However, the calculation of the tax will take account of their particular business model. In other words, a 15% tax on the commission will be charged. In addition, excise duties are being applied to the granting and renewal of remote bookmakers' and remote betting intermediaries' licences. The Betting (Amendment) Bill 2013, which will establish the regulatory framework for the licensing regime, was published in July. The Deputy will be aware that under the EU Technical Standards and Regulations Directive it was necessary to show the published Bill to the EU Commission and other Member States, which will take three months for clearance. This standstill period ends next month after which I hope to progress the Bill through the Dáil subject to scheduling agreement between the Whips. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill 2013 is enacted.
232. Deputy Catherine Murphy asked the Minister for Finance the dates on which funds from the Local Government Fund have been transferred to the Central Fund in 2013 under section 7 of the Motor Vehicles (Duties and Licences) Act 2013 and the amounts in each case; and if he will make a statement on the matter. [38526/13]
View answerThe Motor Vehicle (Duties and Licences) Act 2013 provides for the transfer of up to €150 million from the Local Government Fund to the Exchequer during 2013. The Act provides that in determining the payment, regard must be had to the balance in the Fund when all commitments have been met. The transfer is in respect of 2013 only. Some €46.5 million transferred to the Exchequer from the Local Government Fund in 2012 in two tranches -€23.5 million on 20 September 2012 and €23 million on 13 December 2012. There has been no transfer as yet for 2013. Last year was the first in which a payment to the Exchequer was made from the Fund. This is a balanced approach to meeting the needs of local authorities through the Local Government Fund and ensuring all sectors and sections of society make an appropriate contribution to tackling the financial situation.
233. Deputy Finian McGrath asked the Minister for Finance the amount of funding each bank has received for the specific purpose of dealing with distressed mortgage holders. [38534/13]
View answerIn early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed and data-driven evaluation of the possible loan losses that would be incurred by the banks in a severe, but not utterly implausible, stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK, taking into account projections in arrears and house prices etc. The results of this work were key inputs into the capital requirements identified in PCAR 2011, which totalled €24 billion. Total losses modelled under the stress scenario on Irish mortgages were €9 billion. This comprised €2 billion at BOI, €4.4 billion at AIB/EBS and €2.6 billion at PTSB. However, in the analysis there was never any specific provision made for the purpose of providing debt relief for distressed mortgages. Further details can be found at
http://www.centralbank.ie/regulation/industry-sectors/credit-institutions/Documents/The%20Financial%20Measures%20Programme%20Report.pdf.
234. Deputy Catherine Murphy asked the Minister for Finance his views on the introduction of a small tax on net assessable household wealth above a basic €1m allowance; if he will provide estimates of what such a tax set at 1% could return to the Exchequer; and if he will make a statement on the matter. [38547/13]
View answerWhile all taxes and potential taxation options are constantly reviewed, the Government has no current plans to introduce a wealth tax. In order to estimate the potential revenue from a tax on "net assessable household wealth", one would need to identify the wealth held by individuals, which is not possible from the data available at present. I am informed by the Revenue Commissioners that they have no statistical basis for compiling estimates in relation to a potential wealth tax. Although an individual’s assets and liabilities are declared in a limited number of specific circumstances - for example, after a death - Revenue states it is not in a position to link an individual's income to her or his financial assets. I am informed by the Central Statistics Office (CSO) that its institutional sector accounts do not give an indication of the number of households or persons classified by the categories of wealth they hold. These statistics are based on aggregate information collected from financial institutions and do not contain the demographic details which would enable such a breakdown of the statistics. While the CSO's institutional sector accounts show that households held approximately €126 billion on deposit in 2010, this is not broken down by income or wealth categories.
I understand that, following discussions between the Department of Public Enterprise and Reform, the CSO and the Central Bank, the CSO has commenced a “Household Finance and Consumption Survey”, which will collect information on household wealth. The first results of this survey will be available in 2014. The data to be collected by the CSO as part of its Household Finance and Consumption Survey is not being collected for the purposes of calculating the potential yield from a wealth tax but to collect general information on the financial situation and behaviour of households. I would also say that Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company on the disposal of an asset (CGT) or the acquisition of an asset through gift or inheritance (CAT). However, they are not annual taxes on an individual’s wealth. The rate of both these taxes is 33%, which I increased from 30% in Budget 2013. I also reduced the CAT group tax-free threshold for gifts and inheritances by 10%, following a number of reductions in recent years. The introduction of a wealth tax could have a negative impact on receipts from CGT and CAT.
The Domicile Levy introduced in Budget 2010 also constitutes a form of wealth tax. The levy is currently charged on an individual who is Irish-domiciled whose world-wide income exceeds €1 million, whose Irish-located property is worth more than €5 million, and whose liability to Irish income tax was less than €200,000. The levy applies for the tax year 2010 and subsequent years. It is payable on a self-assessment basis on or before 31 October in the year following the valuation date, which is 31 December of each year. In Budget 2012 I expanded the application of the Domicile Levy by removing the citizenship condition. Finally, given that asset values increase and decrease over time and in the context of recent economic circumstances, they may have declined considerably in many cases. Thus, if the value of an asset or of an individual’s wealth is measured at a particular time, there is no guarantee that the asset value or the individual’s wealth will remain at that level or increase from that point. This would make it difficult to predict the potential yield from a wealth tax and would have to be borne in mind in terms of its consistency as a source of revenue.
235. Deputy Catherine Murphy asked the Minister for Finance in respect of existing business and agricultural reliefs on capital acquisitions tax, his views on reducing the discount given on market value before the tax is ordinarily calculated from the present 90% as a revenue-generating measure; and if he will make a statement on the matter. [38548/13]
View answerCAT agricultural relief takes the form of a reduction in the market value of the agricultural property - currently by 90% - for the purposes of establishing the appropriate group tax-free thresholds and determining whether a CAT liability arises on a transfer. In order to qualify for CAT agricultural relief, an individual receiving a gift or inheritance of agricultural property must qualify as a farmer. For the purpose of the relief, a farmer is an individual at least 80% of whose assets constitute agricultural property. CAT agricultural relief has increased over the years from an original reduction of 50% when CAT was introduced in 1975. The relief will be withdrawn if the agricultural property is sold or compulsorily acquired within six years of or, in certain circumstances, ten years of the gift or inheritance unless the proceeds are reinvested in other agricultural property. CAT business relief takes the form of a reduction in the taxable value of the relevant business property - currently by 90% - for the purposes of establishing the appropriate group tax-free thresholds and determining whether or not a CAT liability arises on a transfer. The relief will be withdrawn if within six years of the gift or inheritance the assets cease to qualify as a relevant business property, unless this is because of bankruptcy or if the company is wound up bona fide due to insolvency. The relief will also be withdrawn if within six years of the gift or inheritance, the business or any business that replaced it is sold, redeemed or compulsorily acquired unless the business is replaced within one year by other relevant business property. Preparations for Budget 2014 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment on what changes, if any, are being considered in this relief or any other tax relief.
236. Deputy Marcella Corcoran Kennedy asked the Minister for Finance if a property can qualify for the exemption from the local property tax for permanently and totally incapacitated persons under the Finance (Local Property Tax) Act 2013 (details supplied); and if he will make a statement on the matter. [38631/13]
View answerI am advised by the Revenue Commissioners that section 10 (as amended) of the Finance (Local Property Tax) Act 2012 provides that a permanently and totally incapacitated person is exempt from payment of LPT where the property in question is occupied as his or her sole or main residence and where he or she has received a personal injury compensation or is a beneficiary under a qualifying trust. I am further advised that section 15A (as amended) of the Act 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 the Housing (Adaptation Grants for older people and people with disabilities) Regulations 2007 or Regulation 4 of the Housing (Disabled Persons and Essential Repairs Grants) Regulations 2001. The reduction in market value is limited to the lesser of the value attributable to the adaptation work carried out on the property or the maximum grant payable under the relevant local authority scheme. Where such circumstances arise, Revenue must be notified in writing of the chargeable value attributable to the adaptation and any relevant documentation, including that relating to the payment of the grant, must be submitted. The circumstances in the case as outlined by the Deputy indicate that there is no entitlement to exemption under section 10 of the Act but there may be entitlement to relief under section 15A. Unfortunately, the Deputy has not provided sufficient details to enable Revenue to fully determine the entitlement or to make direct contact with the representatives of the person in question. An official from the LPT Unit will make direct contact with the Deputy’s office in the coming days in regard to the outstanding issues.
237. Deputy Tom Fleming asked the Minister for Finance the reason disabled drivers who purchase second hand vehicles are disallowed from participating in the disabled drivers and passengers tax relief scheme when VRT has previously been paid to the previous owner; and if he will make a statement on the matter. [38639/13]
View answerI am informed by the Revenue Commissioners that if the VRT on a vehicle has been fully refunded at an earlier date under the scheme, there is no residual VRT available to be refunded on a subsequent sale to a second qualifying person and this should be reflected in the price of vehicle at the time of resale.
238. Deputy Robert Troy asked the Minister for Finance if he plans to leave VAT at 9%. [38742/13]
View answerThe 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.
239. Deputy David Stanton asked the Minister for Finance the amount of windfall gains tax taken in by the Revenue Commissioners each year respectively since its introduction; and if he will make a statement on the matter. [38791/13]
View answerI assume the Deputy is referring to the windfall gains provisions in sections 644AB and 649B of the Taxes Consolidation Act 1997, as introduced by section 240 of the National Asset Management Agency Act 2009 and amended by section 25 of the Finance Act 2010, which apply an 80% rate of tax to profits or gains from land disposals where those profits or gains are attributable to a relevant planning decision by a planning authority rather than to any value attributable to the work of the landowner. "Relevant planning decision" is defined in the provisions as meaning (i) a change in the zoning of land in a development plan or local area plan from non-development land-use, that is from agricultural, open space, recreational or amenity use or a mixture of such uses, to development land-use, that is to residential, commercial or industrial uses or a mixture of such uses, or from one development land-use to another, including a mixture of such uses, and (ii) a material contravention decision by a planning authority in relation to a development plan. In the case of rezonings, the 80% rate applies where there is a disposal of land following its rezoning where that rezoning takes place on or after 30 October 2009. In the case of material contravention decisions, the 80% rate applies where there is a disposal of land following a material contravention decision where that decision is made on or after 4 February 2010.
The 80% tax rate applies in respect of disposals by individuals or companies as part of their land dealing or developing trade or as the disposal of a capital item. It only applies to the part of the profits or gains that is attributable to the relevant planning decision. Any part of the profits or gains that is attributable to other factors, such as construction operations on the land or the expectation that the land would be rezoned, or benefit from a material contravention decision in the future (‘hope value’), continues to be taxed at the normal income tax, corporation tax or capital gains tax rates, as appropriate. I am informed by the Revenue Commissioners that on the basis of the available details from corporation tax and income tax returns for 2009, 2010 and 2011, the latest year for which the necessary details are available, there is no record of any such profits or gains having been returned. However, the Commissioners have indicated that the existing database does not include details of capital gains returned via the CG1 tax return because these are not captured in electronic format and, consequently, that if windfall profits have been returned using this medium, it is not possible to centrally identify the relevant details.
240. Deputy Andrew Doyle asked the Minister for Finance the steps his Department intend to take to ensure semi-State bodies and other organisations and bodies under the remit of his Department advertise vacant positions through the Public Appointments Service and publicjobs.ie that is in a clear and transparent manner; and if he will make a statement on the matter. [39253/13]
View answerThe Public Appointments Service already advertises a large number of public service posts on publicjobs.ie when requested to by the relevant body. My Department promotes the availability of this service to public service bodies on an ongoing basis. Filling of vacancies in State Agencies and Commercial Semi-State Bodies is often a matter for individual organisations and Boards. The Public Appointments Service would be pleased to discuss the facility of advertising of vacancies on publicjobs.ie with any State Agency or Organisation. More specific information requested by the Deputy regarding filling of vacancies in my Department is outlined in the following table:
|
Name of Body |
Are vacant positions currently advertised through the Public Appointments Service? |
Are there any proposed measures due to be put in place to ensure vacancies are advertised through the Public Appointments Service? |
|
Irish Fiscal Advisory Council |
Vacancies are advertised through PAS, following procedures and sanction set by DoPER. |
As per the Fiscal Responsibility Act, “the Irish Fiscal Advisory Council may appoint persons to be members of staff of the Council, on such terms that are determined by the Council with the prior consent of the Minister of Finance given following consultation with the Minister for Public Expenditure and Reform.” Recruitment procedures are directed by DoPER, including consultation and advertising with PAS for any vacancies arising. |
|
Credit Union Restructuring Board (ReBo) |
Yes. ReBo has recently advertised 3 Job specifications, all of which were advertised by the PAS on publicjobs.ie. |
The ReBo Recruitment and Selection procedures are currently being drafted and will incorporate a requirement to advertise all positions on publicjobs.ie. |
|
Central Bank of Ireland |
No. |
The Central Bank of Ireland manages its own recruitment campaigns. Roles filled through open campaigns are advertised on the Central Bank of Ireland website. |
|
Irish Financial Services Appeals Tribunal (IFSAT) |
The Registrar is appointed by the Tribunal. |
This will be assessed should future vacancies arise. |
|
Financial Service Ombudsman Bureau (FSOB) |
The FSOB advertises the positions of Financial Services Ombudsman and Deputy Ombudsman with Public Appointments Service and publicjobs.ie in a clear and transparent manner. |
|
|
Office of the Revenue Commissioners |
The Revenue Commissioners recruit through the Public Appointments Service. |
Also through their own recruitment licence granted by the Commissioners for Public Service Appointments (CPSA). Where Revenue recruit using their own recruitment licence the vacancies are publicly advertised in compliance with the codes of practice prepared by the CPSA. Revenue uses its own recruitment licence to fill critical skills in a number of specialised areas. For example Revenue is currently running an open competition for senior specialists, at Principal Level, in the area of Corporate and International Taxation. This competition was advertised in the national press, revenue.ie and is advertised on the Public Appointments Service website. |
The National Treasury Management Agency (NTMA) operates with a commercial remit to provide asset and liability management services to Government. Businesses managed by the NTMA include borrowing for the Exchequer and management of the National Debt, the State Claims Agency, the New Economy and Recovery Authority, the National Pensions Reserve Fund and the National Development Finance Agency. The NTMA assigns staff to the National Asset Management Agency and provides it with business and support services and systems. It also has a number of staff on secondment to the Department of Finance’s Banking Shareholder Management Unit. The NTMA competes with the private sector to recruit staff with necessary specialist and commercial skills and expertise to provide these services. It utilises a range of recruitment methods including advertisement on its websites, newspaper advertisements and recruitment agencies to fill positions. This recruitment model has proven highly successful and has, for example, enabled the NTMA to recruit over 280 staff to NAMA since NAMA's formal establishment in December 2009.
241. Deputy Mary Lou McDonald asked the Minister for Finance the full year saving to the Exchequer if all commercial semi State CEO's pay under the aegis of his Department were reduced by 10%; and if he will make a statement on the matter. [39263/13]
View answer242. Deputy Mary Lou McDonald asked the Minister for Finance the full year saving to the Exchequer if all non-commercial State sponsored bodies CEO salaries under the aegis of his Department were reduced by 10%; and if he will make a statement on the matter. [39272/13]
View answer243. Deputy Mary Lou McDonald asked the Minister for Finance the full year saving to the Exchequer if all State agency board members fees, non commercial State sponsored bodies and commercial semi State companies, under the aegis of his Department were reduced by 25%; and if he will make a statement on the matter. [39282/13]
View answerI propose to take Questions Nos. 241 to 243, inclusive, together.
The information requested by the Deputy is as follows: I announced in June of this year that it is planned to dissolve the National Treasury Management Agency Advisory Committee, the State Claims Agency Policy Committee, the National Development Finance Agency Board and the National Pensions Reserve Fund Commission and to replace them with an over-arching National Treasury Management Agency Board. The necessary legislation is currently being drafted. The NAMA Board is remunerated from NAMA’s operating income, not from the Exchequer. Total remuneration paid to members of the NAMA Board was €405,000 in 2012. The salary of the CEO of ReBo - the Credit Union Restructuring Board - post Haddington Road agreement is €85,127 per annum. If a 10% cut was applied to this, it would result in a saving of €8,512 per annum. ReBo has a Chairman and 10 ordinary board members. The Chairman has an annual fee of €11,970 and the ordinary board has annual fee of €7,695. The estimated annual savings would be €22,230 if a 25% cut was applied to fees.
It is important to note that the figures for the Irish Fiscal Advisory Council are calculated based on the maximum cost possible. As is policy, no fees are paid to members of the Irish public service, and as such, at present, this affects the Chair and one Council Member, who do not receive fees. Thus the total fees cost relates to a calculation of the maximum applicable. The fees payable to Council Members are based on those payable to Directors of Category 2 Non-Commercial State-Sponsored Bodies, which are set from time to time by the Department of Public Expenditure and Reform. The relevant fees for the chair are €20,520. The fees are not payable to members of the Irish public service. Given that the Chair Fees are €20,520, if 10% was deducted from Chair’s pay in the event that the Chair was employed outside of the Irish public service, the savings would be €2,052. The Irish Fiscal Advisory Council does not have a CEO, but we have answered for their Chair.
Revenue is not a commercial or non-commercial Semi-State Board and there are no board member fees. The Irish Financial Services Appeals Tribunal is not Exchequer funded. The Central Bank of Ireland is not Exchequer-funded. The Financial Services Ombudsman Council determines the levies and charges payable for the performance of services provided by the Financial Services Ombudsman. These levies are charged by industry. The Credit Union Advisory Council has a Chairman and 5 ordinary board members. The Chairman has an annual fee of €3,705 and the ordinary members have annual fees of €2,470. The estimated savings would be €4,013 per annum if a 25% cut was applied to fees.
