Written Answers Nos. 204-222
204. Deputy Kevin Humphreys asked the Minister for Finance the projected yield in a full year, over current rates, if stamp duty on residential property sales was increased so that it was levied at 2% on the value of sale between €500,000 and €999,999.99 and 4% on the balance over €1 million; if such a forecast uses 2013 sales as a base; and if he will make a statement on the matter. [40688/13]
View answerI am advised by the Revenue Commissioners that the full year yield to the Exchequer, in terms of the estimated outturn in 2013 from Stamp Duty on residential property, if the 1% rate of Stamp Duty on considerations of over €500,000 was increased to 2% would be €8.7 million; and if the 2% rate of Stamp Duty on considerations in excess of €1 million was increased to 4% would be €3.6 million.
205. Deputy Terence Flanagan asked the Minister for Finance if he will consider reversing excise duty increases on wine; and if he will make a statement on the matter. [40771/13]
View answerThe issue of excise rates on alcohol will be considered in the context of the forthcoming Budget.
206. Deputy Eoghan Murphy asked the Minister for Finance his views on a matter regarding universal social charge rates for those over 70 years of age (details supplied). [40850/13]
View answerAs the Deputy will be aware, when the USC was introduced in Budget 2011, those aged 70 years and over were not liable to the top rates of charge. The maximum rate of charge for such individuals was 4% irrespective of the level of their income, unless they had self-employment income in excess of €100,000 for a tax year, in which case the maximum rate was increased to 7% on the amount of income in excess of €100,000. However, given the current budgetary constraints and the need to raise revenue, the Government decided in Budget 2013 that the reduced rates of USC for those age 70 years and over, and medical card holders, with an income in excess of €60,000, would be discontinued from 1 January 2013. Although the introduction of a step effect is never ideal, it is necessary to achieve the desired yield. Similar step effects can also be seen for the threshold at which the 2% rate of USC applies.
It is important to point out that payments from the Department of Social Protection such as the State Pension are exempt from the USC. Furthermore, such payments will not be taken in to account in determining if an individual has exceeded the €60,000 threshold. This measure ensures equity between all citizens with incomes in excess of €60,000.
207. Deputy Brendan Griffin asked the Minister for Finance the amount of revenue that has been collected each year in tabular form since the introduction of the 80% tax rate on zoned land; and if he will make a statement on the matter. [40995/13]
View answer209. Deputy Pat Deering asked the Minister for Finance the amount of money that has been generated in windfall tax in the past three years. [41018/13]
View answerI propose to take Questions Nos. 207 and 209 together.
I assume the Deputies are referring to the windfall gains provisions in sections 644AB and 649B Taxes Consolidation Act 1997, introduced by section 240 National Asset Management Agency Act 2009 and amended by section 25 Finance Act 2010, which apply an 80% rate of tax to the 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 and 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/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.
208. Deputy Michael McCarthy asked the Minister for Finance if he will review an application in respect of a person (details supplied) for tax relief in relation to vehicles purchased for use by persons with disabilities; and if he will make a statement on the matter. [41008/13]
View answerThe initial application for a Primary Medical Certificate under the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994, is made to the Senior Medical Officer of the relevant local Health Service Executive administrative area. If the Primary Medical Certificate is refused, the person may appeal the refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin.
I understand the person appealed the decision of the Senior Medical Officer not to grant a Primary Medical Certificate and the appeal was subsequently refused by the Medical Board of Appeal. If the person wishes to apply again for a Primary Medical Certificate, the application to the Senior Medical Officer must be accompanied by a medical certificate from a registered medical practitioner indicating that the practitioner has formed the opinion that the medical condition of the person concerned has materially deteriorated since the previous application. I would point out that the Medical Board of Appeal is independent in the exercise of its functions.
210. Deputy Pat Deering asked the Minister for Finance his views on the SIMI's pre-budget swappage proposal in order to increase new car sales. [41037/13]
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.
211. Deputy Jack Wall asked the Minister for Finance when a person (details supplied) in County Kildare will receive their P21 for 2012; and if he will make a statement on the matter. [41046/13]
View answerI have been advised by the Revenue Commissioners that a PAYE Balancing Statement (P21) for 2012 and a refund cheque will issue shortly to the person concerned.
212. Deputy Róisín Shortall asked the Minister for Finance if his attention has been drawn to the concerns of a company (details suppled) in Dublin 1, which has received an additional and unexpected VAT demand which impacts on the viability of the company; the approach of the Revenue Commissioners in respect of such VAT liability for all companies in this industry. [41049/13]
View answer218. Deputy Finian McGrath asked the Minister for Finance the position regarding a VAT bill in respect of a company (details supplied) in Dublin 1; and if he will make a statement on the matter. [41223/13]
View answerI propose to take Questions Nos. 212 and 218 together.
I am informed by the Revenue Commissioners that a Revenue audit was conducted on the firm in question. The audit identified a number of liabilities, including interest and penalties. These additional liabilities were accepted and agreed, in writing, by the proprietors. The principal component of the additional liabilities arose from the non-operation of VAT on the supplies of goods and services made by the firm. The particular goods and services as supplied by the firm in question are subject to VAT, and this applies to any operator that provide the same goods and service in the industry in question.
214. Deputy Eoghan Murphy asked the Minister for Finance if calculations of the cost of the 9% VAT reduction to the Exchequer at circa €350 million each year takes into account increased activity in the relevant sectors and the financial benefit to the economy in that same year, including not just money spent in these areas but revenue generated and also jobs created and the Exchequer benefit of this. [41086/13]
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. The measure was estimated to cost €120 million in 2011, €350 million in 2012, €350 million in 2013, and €60 million in 2014. The cost of the VAT reduction was offset by the 0.6% levy on pension fund, a measure which is due to expire next year. As the rate was introduced as a temporary, targeted measure, failure to revert the 9% rate to 13.5% would give rise to a significant annual Budget shortfall that would have to be found elsewhere.
After a sharp fall in activity in the years to 2011, some of the sectors impacted by the reduced VAT measure have experienced growth in employment. This is down to a number of factors, including the overall stabilisation in domestic demand over the period. The attractiveness of Ireland as a tourist destination has also been positively impacted by the improvement in price competitiveness due to inflation at or below the euro area average for the last five and a half years. It should be stressed that all factors, including the economic impact and the cost of the measure, are taken into consideration when analysing possible tax changes. Any proposal to maintain reduce the VAT rate from the 13.5% rate will be considered in the context of the Budget.
215. Deputy Patrick O'Donovan asked the Minister for Finance in relation to capital gains liability the exemptions available to a farmer (details supplied); and if he will make a statement on the matter. [41089/13]
View answerAs I pointed out in a previous reply to a PQ which was tabled by the Deputy in June of this year, I made provision in Budget 2013 for the following measure designed to assist farmers with consolidation of farm land. This measure followed on from measures in the previous year’s Budget which also supported farm expansion and the transfer of land. Section 48 of Finance Act 2013 provides for relief from capital gains tax on disposals of farm land for farm restructuring, subject to a Commencement Order, which I made on 6 June 2013. The terms of the relief are set out in Section 604B, Taxes Consolidation Act 1997.
The relief applies to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2015 where Teagasc has certified that a sale and purchase or an exchange of agricultural land was made for farm restructuring purposes. The initial sale or purchase, or the exchange, must occur in the relevant period and the subsequent sale or purchase must occur within 24 months of that sale or purchase. Full relief from capital gains tax will be given where the consideration for the purchase or the exchange is equal to or exceeds the consideration for the sale or the other land that is exchanged. Where the consideration for the purchase or the exchange is less than the consideration for the land that is sold or the other land that is exchanged, relief will be given in the same proportion that the consideration for the land that is purchased or exchanged bears to the consideration for the land that is sold or the other land that is exchanged.
Provision is made for the clawback of the relief where qualifying land in respect of which relief has been given is disposed of within 5 years of the date of the purchase or exchange of that land. A clawback does not apply where the disposal arises under a compulsory purchase order. It will be noted that this farm restructuring relief is subject to certain conditions being satisfied - including the land in question being “qualifying land” (insofar as Teagasc has issued a farm restructuring certificate in respect of the lands in question, that has not been withdrawn). Guidelines relating to the application for, and the issue of, a Farm Restructuring Certificate are available on the Department of Agriculture, Food and the Marine’s website.
216. Deputy Seán Kyne asked the Minister for Finance if consideration will be given to the revision of the current licence plate registration system for vehicles to enable the purchaser of a pre-owned vehicle to have that vehicle re-designated to that person's county of residence for an appropriate and reasonable fee; and if he will make a statement on the matter. [41108/13]
View answerThe issue of amending the current registration plate system was considered as part of the VRT/Registration plate review process undertaken by my Department in 2012. All relevant stakeholders (Environment, Transport, the Gardai, RSA, NRA) were consulted at the time and none were in favour of the proposal. Issues raised at the time were that it would be overly cumbersome, require significant administration and ongoing maintenance as a vehicle could have multiple change of marks and would pose significant difficulties around traceability of vehicles. It was largely felt that any departure from the traditional (since 1904) ‘one vehicle one number plate’ approach would place overall accuracy levels of the NVDF (National Vehicle and Driver File) at risk and consequently present additional problems in the management of the national fleet and the collection of motor tax as well as the identification of vehicles in connection with road traffic accidents and traffic offences. In addition, substantial monies are collected annually from tolling charges and road traffic penalties and permanent number plates associated with vehicles is an essential component to ensure that these systems are able to function.
217. Deputy Seán Kyne asked the Minister for Finance if he will consider reducing the rate of VAT applied to the purchase of motor cycle helmets in the interests of road safety; and if he will make a statement on the matter. [41109/13]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT Directive does not make specific provision for a reduced or zero rate to apply to safety equipment, including motorcycle helmets, and as such they are subject to the standard VAT rate, which is currently 23%.
219. Deputy Aengus Ó Snodaigh asked the Minister for Finance the number of persons who have opted to defer payment of the property tax; and the percentage of those liable for which this accounts. [41228/13]
View answer220. Deputy Aengus Ó Snodaigh asked the Minister for Finance if he will provide a breakdown by underlying social welfare scheme of the number of persons who have deferred payment of the property tax. [41229/13]
View answerI propose to take Questions Nos. 219 and 220 together.
I am advised by the Revenue Commissioners that the most up to date Local Property Tax (LPT) figures, including the percentage of properties for which exemptions and deferrals were claimed, are published on the Commissioners website at http://www.revenue.ie/en/tax/lpt/lpt-preliminary-data.pdf. Work is on-going to refine the LPT Register, and more detailed and up-to-date data will be published in due course. The Commissioners have advised that a breakdown by underlying social welfare scheme of the number of persons who have deferred payment of LPT is not available. The Commissioners further advise that liable persons were only required to provide these details to Revenue where they chose to pay the tax by deduction at source from their Department of Social Protection payment.
221. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on all regulatory impact statements carried out on Bills in his Department since this Government took office to date; if he will list these Bills in tabular form; and if he will make a statement on the matter. [41594/13]
View answerThe information requested by the Deputy is contained in the following table.
|
Bill Title |
Details of RIA carried out |
|
Central Bank (Supervision and Enforcement Bill) 2011. The Bill was enacted as the Central Bank (Supervision and Enforcement) Act 2013 in July 2013. |
A Regulatory Impact Analysis (RIA) was undertaken on this Bill in July 2011 prior to the Bill being published. |
|
Credit Union Bill 2012 The Bill was enacted on the 19th December 2012 as the Credit Union and Co-operation with Overseas Regulators Act 2012 |
A Regulatory Impact Analysis was carried out on the Credit Union Bill 2012. |
|
Fiscal Responsibility Act 2012. |
A Screening Regulatory Impact Analysis was completed for the Fiscal Responsibility Act 2012, prior to the publication of the General Scheme of the Bill on 26th April 2012. |
* The General Scheme set out the draft legislation that would implement key provisions of the Stability Treaty, subject to the will of the Irish people. The Irish people voted to ratify the Stability Treaty or, to give it its full title, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, in a referendum held on 31st May 2012. Subsequent to the referendum, the Bill passed all stages in the Oireachtas, and was signed on 27th November 2012. This Act was commenced end December 2012.
222. Deputy Dara Murphy asked the Minister for Education and Skills the reasons persons (details supplied) were not awarded the FETAC course results; the reason this class has to repeat the examinations; the steps FÁS is taking to prevent this happening in the future; and if he will make a statement on the matter. [40477/13]
View answerI am informed that the company in question delivered a FETAC Level 5 Healthcare Assistant Traineeship training course in Cork City ending in November 2012, under contract to FÁS. I understand that the assessment of provisional results submitted for certification processing by FÁS has been found, when externally authenticated, not to meet the required grade standard. Seventeen affected learners were informed and repeat tuition and support was provided which commenced on 9th September to assist learners meet the required standard, under a high level of scrutiny from FÁS. The company in question is currently on "Amber" status on the FÁS National CTTL (Contracted Training Tender List) meaning that the Contractor cannot tender or contract for further work with FÁS as a result of breach of contract.
