Skip to main content
Normal View

Tuesday, 8 Oct 2013

Written Answers Nos 140-159

Revenue Commissioners Powers

Questions (140)

Dara Calleary

Question:

140. Deputy Dara Calleary asked the Minister for Finance if the Revenue Commissioners have legitimate powers to remove funds from the bank accounts of small farmers without their consent following their completion of Revenue form 12s; and if he will make a statement on the matter. [41847/13]

View answer

Written answers

Firstly, the Deputy will be aware that the debt collection environment continues to be very challenging for Revenue given the ongoing difficult financial environment. In that regard I am assured that Revenue is very conscious of the challenges that exist for some taxpayers in meeting their tax obligations in a timely manner. Its debt management caseworkers will always seek to work proactively with taxpayers and viable businesses that engage positively to agree mutually satisfactory arrangements to overcome temporary cashflow difficulties in preference to deploying enforcement options. However, where a business or taxpayer fails to meaningfully engage with Revenue, then I am fully supportive of the deployment of the necessary collection and enforcement measures to secure the taxes and duties due to the Exchequer. One of the enforcement powers available to Revenue to ensure timely tax collection is Attachment. This power is covered in legislation under Section 1002 of the Taxes Consolidation Act 1997, as amended. Section 1002 allows Revenue to either directly remove funds from any account held by a financial institution (including credit unions) in the name of a defaulting taxpayer, or, to instruct any third party that owes a debt to the defaulting taxpayer to pay those funds directly to Revenue.

I am informed by Revenue that it never deploys its enforcement powers, including Attachment, without giving the taxpayer every opportunity to engage and agree solutions. Debt management caseworkers always afford a defaulting taxpayer at least one opportunity to agree a mutually satisfactory arrangement before any enforcement activity is commenced. The enforcement process only commences when the caseworker has exhausted all other options to encourage voluntary compliance.

Finally, Revenue is always conscious that the use of Attachment Orders can have adverse consequences for taxpayers and the power is normally only deployed where other enforcement options have failed to secure the outstanding debt. For example, during 2012 Revenue only issued Attachment Orders in less than 3,000 cases out of a total of almost 30,000 cases enforced. I am assured by Revenue that it has strict guidelines in place, including authorisation at a senior level, to ensure Attachment is only used in appropriate circumstances.

Property Taxation Data

Questions (141, 142)

Barry Cowen

Question:

141. Deputy Barry Cowen asked the Minister for Finance if he will provide in tabular form a county breakdown of the total number of households who have made a property tax payment in 2013 to date; the total who have failed to make a payment; the percentage of households who are paying in instalments; the number of households who have availed of an exemption; the compliance rate to date; and if he will make a statement on the matter. [41875/13]

View answer

Barry Cowen

Question:

142. Deputy Barry Cowen asked the Minister for Finance if he will provide in tabular form a county breakdown of the total revenue raised by the residential property tax to date in 2013; and if he will make a statement on the matter. [41876/13]

View answer

Written answers

I propose to take Questions Nos. 141 and 142 together.

I am advised by the Revenue Commissioners that compliance data for the Local Property Tax (LPT) are compiled on the basis of the numbers of properties, and are broken down by City and County Councils nationally. The most up to date 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-stats-0913.pdf. Work is on-going to refine the LPT Register, and more detailed data will be published in due course.

I am further advised that by the end of September 2013 approximately €200m had been transferred by Revenue to the Exchequer.

The LPT statistics in local authority areas are available by percentage compliance rate rather than by the total number of households, and are as follows:

Local Authority

Compliance Rate (Approx.)

€ Million LPT Declared*

*€ Million LPT Collected

Carlow

88%

1.6

1.6

Cavan

88%

2.2

1.9

Clare

90%

5.0

4.3

Cork City

90%

5.5

4.7

Cork Co

89%

20.1

17.1

Donegal

84%

5.2

4.7

Dublin City

87%

39.9

32.4

DLR

92%

26.1

21.0

Fingal

91%

18.9

14.8

Galway City

89%

4.0

3.5

Galway Co

89%

7.1

6.3

Kerry

89%

7.0

6.2

Kildare

90%

10.7

8.6

Kilkenny

91%

3.7

3.2

Laois

89%

2.5

2.0

Leitrim

89%

1.0

0.9

Limerick City

88%

2.2

1.8

Limerick Co

90%

5.7

4.8

Longford

88%

1.0

0.9

Louth

84%

4.7

3.8

Mayo

89%

5.1

4.6

Meath

89%

8.6

6.9

Monaghan

90%

1.9

1.7

North Tipperary

91%

2.7

2.3

Offaly

89%

2.4

2.1

Roscommon

90%

2.0

1.8

Sligo

88%

2.6

2.3

South Dublin

90%

15.8

12.4

South Tipperary

91%

3.2

2.8

Waterford City

89%

1.6

1.3

Waterford Co

89%

3.0

2.5

Westmeath

90%

3.2

2.7

Wexford

90%

6.0

5.1

Wicklow

91%

8.4

6.8

Overall

90%

241.0

200.0

The statistics on payments by instalment are available by the percentage of LPT collected rather than by the percentage of households, and are as follows:

Payment Type

% LPT Collected to Date

Card (credit & debit cards)

53.1%

Direct Debit

8.3%

Single Debit Authority & Cheque

31.1%

Deduct at Source

0.5%

Service Provider

7.0%

-

100.0%

Revenue has received in excess of 25,000 claims for an exemption from LPT, which represents 1.6% of all properties returned.

NAMA Portfolio Issues

Questions (143)

Barry Cowen

Question:

143. Deputy Barry Cowen asked the Minister for Finance if the National Asset Management Agency, NAMA, has undertaken an audit of its property with a view to identifying suitable lands for transfer to sports groups; if he will provide in tabular form a county breakdown of the suitable properties; and if he will make a statement on the matter. [41880/13]

View answer

Written answers

NAMA advises me that, as the Deputy will be aware, NAMA has acquired loans and is not the owner of properties. The Agency’s role is that of a secured lender and NAMA is subject to similar legal requirements as other lenders that preclude it from disclosing details relating to its debtors and their properties. NAMA advises that individuals and groups who have an interest in a property that is related to a NAMA loan should make contact with the owner of the property. NAMA advises also that, where it is made aware of potential purchaser interest in a debtor’s property, it will work to facilitate engagement between the interested party and the debtor. It is primarily, therefore, a matter for sports and other community interests to identify properties within their local areas which may be suitable for their purposes.

IBRC Liquidation

Questions (144, 145, 146)

Catherine Murphy

Question:

144. Deputy Catherine Murphy asked the Minister for Finance the rights of the borrower in cases where a special liquidator or liquidator offers for sale a non-performing mortgage; if the borrower has the right to buy out their individual mortgage; if such sales are at the complete discretion of the liquidator; his views on whether this policy may close off an avenue of debt resolution to many individual borrowers; and if he will make a statement on the matter. [41885/13]

View answer

Catherine Murphy

Question:

145. Deputy Catherine Murphy asked the Minister for Finance if he will state the rights of the borrower in cases where a special liquidator or liquidator offers for sale a non-performing mortgage; the duties and responsibilities of the purchaser of said mortgages toward the borrower, particularly with regard to repayment frequency, term and interest rate; and if he will make a statement on the matter. [41887/13]

View answer

Catherine Murphy

Question:

146. Deputy Catherine Murphy asked the Minister for Finance if a borrower with a well-performing mortgage at a financial institution in special liquidation may offer to buy out this mortgage if it is offered for sale by the liquidator; if such sales are at the sole discretion of the liquidator or if there are particular procedures in place to assist the borrower in such situations; if he will indicate the full rights of the borrower in respect of same; and if he will make a statement on the matter. [41897/13]

View answer

Written answers

I propose to take Questions Nos. 144 to 146, inclusive, together.

I have been advised by the Special Liquidators that all contractual arrangements entered into by Irish Bank Resolution Corporation Limited prior to the appointment of the Special Liquidators remain in place and all debts owing to IBRC Limited (in Special Liquidation) remain due and enforceable.

The Special Liquidators confirm that all Borrowers can re- finance their borrowings at par with other lending institutions. The Special Liquidators confirm that the residential mortgage customers of IBRC Limited (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on mortgage arrears and other protections in Irish consumer law.

The Special Liquidators are taking professional advice on the appropriate method of disposing of loan assets and on the appropriate criteria for determining who should qualify to bid for loan assets. The Special Liquidators have begun writing to all IBRC borrowers to update them on the sale of their IBRC Loans and Collateral Obligations. Borrowers are also being provided with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Decisions concerning the sale and disposal of loan assets are a matter for the Special Liquidators and I have no role in the process.

Should a bid not be received by a qualified bidder that is equal to or in excess of the Valuation Price, then the asset/portfolio will transfer to NAMA. The valuation of all IBRC assets is to be completed by 30 November 2013 and the sale of all IBRC assets agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.

Tax Reliefs Availability

Questions (147)

Eoghan Murphy

Question:

147. Deputy Eoghan Murphy asked the Minister for Finance if he has considered introducing an exemption to capital gains tax along the lines of the entrepreneurs relief currently in place in the UK (details supplied). [41901/13]

View answer

Written answers

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, may be introduced in capital gains tax or other taxes. I will, however, bear in mind the Deputy’s suggestion in my preparations for the Budget.

VAT Payments

Questions (148)

Terence Flanagan

Question:

148. Deputy Terence Flanagan asked the Minister for Finance the way his Department ensures that it receives its complete entitlement of VAT from online sales; and if he will make a statement on the matter. [41909/13]

View answer

Written answers

I am advised by the Revenue Commissioners that online sales of goods and services to private individuals by Irish-based sellers are liable to Irish VAT and that the seller must account for the VAT on his/her VAT return. However, where an Irish-based supplier sells goods to private customers in other EU Member States, and the value of supplies to a particular Member State exceeds the relevant threshold for that Member State, then the Irish supplier must register and account for VAT in that Member State on those supplies. Similarly, suppliers in other Member States who supply goods to private customers in Ireland in excess of our threshold must register for VAT in Ireland and account to Revenue for the VAT on those supplies. The threshold is €35,000 in Ireland and as high as €100,000 in some Member States. The Revenue Commissioners are fully aware of the potential for tax evasion as a result of eCommerce and online trading generally. Revenue’s overall approach to managing compliance is to undertake a range of targeted interventions that are most appropriate for dealing with the specific risks presented in individual cases – including those trading online. Their work is also supported and enhanced with appropriate technology, including their Risk Evaluation Analysis and Profiling (REAP) risk identification system and the capture of data from multiple sources. One of these sources is trading information received from merchant acquirers, which contains indicators of cases involved in internet trading.

Revenue's extensive range of measures and activities, designed to address shadow economy activity, includes exploiting the potential of new and emerging technology towards the identification of tax evasion associated with online trading and business activity.

Tax Yield

Questions (149)

Kevin Humphreys

Question:

149. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if capital gains tax was increased from 33% to 35%, taking into account 2013 returns to date; and if he will make a statement on the matter. [41912/13]

View answer

Written answers

I am advised by the Revenue Commissioners that the full year yield to the Exchequer, based on the expected outturn in 2014, from increasing the CGT tax rate from 33% to 35% could be in the region of €28 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.

Tax Yield

Questions (150)

Kevin Humphreys

Question:

150. Deputy Kevin Humphreys asked the Minister for Finance the projected increased yield in a full year of increasing the domicile levy to €300,000; the additional yield of restricting the amount of income tax available as a credit for the domicile levy to €100,000; the additional yield if both measures were introduced in unison; and if he will make a statement on the matter. [41927/13]

View answer

Written answers

I am informed by the Revenue Commissioners that, on the basis of Domicile Levy returns filed for 2011, the latest year available, the full year yield on a straightforward arithmetic basis of an increase in the levy from €200,000 to €300,000 could be in the region of €1.5 million.

I am also informed that, based on claims for the Income Tax credit in excess of €100,000 contained in the relevant tax returns, it is estimated that the additional yield from restricting the Income Tax credit against the Domicile Levy to €100,000 would be approximately €55,000. If the two measures were introduced together, the total additional yield could be of the order of €1,555,000.

The Domicile Levy is a charge on anyone

- who in any year is Irish domiciled;

- whose worldwide income in the year exceeds €1m,

- whose Irish located property in the year is valued greater than €5m, and

- whose liability to Irish income tax for the year is less than €200,000.

Various factors, including falls in asset values and income, may reduce the numbers liable to pay the levy. Therefore an increase in the amount of the levy or a reduction to the Income Tax available as a credit against the levy may not of themselves increase the yield.

Tax Yield

Questions (151)

Kevin Humphreys

Question:

151. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if the principal private residence exemption from CGT was removed for all house sales above €500,000 and €1 million respectively, or for the portion above respectively; and if he will make a statement on the matter. [41928/13]

View answer

Written answers

I am informed by the Revenue Commissioners that, as information on the value of capital gains arising from the disposal of principal private residences is not required in capital gains tax returns, there is no dedicated basis for separately identifying the yield that would arise from the removal of the principal private residence exemption from capital gains tax for all house sales above €500,000 and €1 million respectively. Accordingly, the specific information requested by the Deputy is not available.

Tax Yield

Questions (152, 153)

Kevin Humphreys

Question:

152. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if the CAT agricultural relief was reduced to 80%, to 75%, or with a cap of €3 million, and then the yield if a cap of €3 million was applicable to both 80% and 75% rates respectively; and if he will make a statement on the matter. [41929/13]

View answer

Kevin Humphreys

Question:

153. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if the CAT business relief is reduced to 80%, to 75%, or with a cap of €3 million; and what the yield if a cap of €3 million was applicable to both 80% and 75% rates respectively; and if he will make a statement on the matter. [41930/13]

View answer

Written answers

I propose to take Questions Nos. 152 and 153 together.

I am informed by the Revenue Commissioners that on the basis of 2012 data, the latest available, the estimated full year yield from reducing Agricultural Relief from Capital Acquisitions Tax (CAT) from 90% to 80%, would be in the region of €8 million; the estimated yield from reducing the relief from 90% to 75% would be in the region of €12 million.

The estimated yield from reducing Business Relief from CAT from 90% to 80% would be in the region of €12.5 million; the estimated yield from reducing the relief from 90% to 75% would be in the region of €19 million.

It should be noted that these estimates are tentative because some of the potential yield from reducing these reliefs could be offset by taxpayers availing of exemption from group thresholds that would otherwise remain unabsorbed. They are also based upon an assumption that there would be no behavioural impact from such changes, which could lead to a less than expected result from a change to the tax base.

In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets which are currently occurring in the economy.

I am informed by the Revenue Commissioners that it is not possible to estimate the yield from imposing a cap on the qualifying amount for the business and agricultural reliefs for Capital Acquisitions Tax as the data in relation to these reliefs is not available in a form that would allow such estimates to be made. Accordingly, the specific information requested by the Deputy in this regard is not available.

Tax Yield

Questions (154)

Kevin Humphreys

Question:

154. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if for the purposes of determining CAT, an individual's liability could only be reduced with respect to the application of the group tax free thresholds or agricultural and business reliefs but not both; and if he will make a statement on the matter. [41931/13]

View answer

Written answers

I am informed by the Revenue Commissioners that figures are not captured in such a way as to provide a dedicated basis for compiling an estimate of the gain to the Exchequer from the change mentioned in the question. Accordingly, the specific information requested by the Deputy is not available.

Tax Yield

Questions (155)

Kevin Humphreys

Question:

155. Deputy Kevin Humphreys asked the Minister for Finance the projected yield in 2014 if the pension levy of 0.6% was extended for a year; and if he will make a statement on the matter. [41932/13]

View answer

Written answers

The 0.6% levy on pension fund assets was introduced in 2011 for a period of 4 years in order to pay for the Jobs Initiative introduced by the Government in that year. The levy will therefore apply for a further year in 2014 for that purpose. On its introduction, the projected yield from the levy was estimated at €470 million in each of the 4 years. The actual yield can vary from year to year due, for example, to fluctuations in pension fund asset values.

Additional Voluntary Contributions

Questions (156)

Michael Healy-Rae

Question:

156. Deputy Michael Healy-Rae asked the Minister for Finance the take up of access to discretionary pension contributions; the figures to date; and if he will make a statement on the matter. [41947/13]

View answer

Written answers

Finance Act 2013 provided members of occupational pension schemes with a three-year window of opportunity from 27 March 2013 during which they could opt to draw down, on a once off basis, up to 30% of the accumulated value of additional voluntary contributions (AVCs). Administrators of AVC funds (including PRSA administrators) are required to provide, within 15 working days of the end of each quarter, commencing with the quarter ending on 30 June 2013, certain statistical information to Revenue in relation to AVC pre-retirement transfers or encashments made during the quarter in question.

I am advised by Revenue that the returns for the first quarter ended 30 June 2013 are as follows:

Transfers

No./€

Number of transfers made

3,949

The aggregate value of the transfers made

€27,439,465

The tax deducted from the aggregate value of the transfers made

€10,822,070

It is too early at this stage to comment on the outturn for the year.

Tax Yield

Questions (157, 158, 159, 166, 167, 168)

Sean Conlan

Question:

157. Deputy Seán Conlan asked the Minister for Finance the estimated total revenue that will be generated by VAT on the construction industry in 2014 from private sector sources; and if he will make a statement on the matter. [41983/13]

View answer

Sean Conlan

Question:

158. Deputy Seán Conlan asked the Minister for Finance the total amount of revenue generated by VAT on the refurbishment and resale of older houses in 2012 and 2013; and if he will make a statement on the matter. [41984/13]

View answer

Sean Conlan

Question:

159. Deputy Seán Conlan asked the Minister for Finance the estimated amount of revenue that will be generated by VAT on the refurbishment and resale of older houses in 2014; and if he will make a statement on the matter. [41985/13]

View answer

Sean Conlan

Question:

166. Deputy Seán Conlan asked the Minister for Finance the total revenue generated by the VAT on the construction industry in 2012 and 2013; and if he will make a statement on the matter. [42025/13]

View answer

Sean Conlan

Question:

167. Deputy Seán Conlan asked the Minister for Finance the total revenue generated by VAT on the construction industry in 2012 and 2013 which came from private sector sources; and if he will make a statement on the matter. [42026/13]

View answer

Sean Conlan

Question:

168. Deputy Seán Conlan asked the Minister for Finance the estimated total revenue that will be generated by VAT on the construction industry in 2014; and if he will make a statement on the matter. [42027/13]

View answer

Written answers

I propose to take Questions Nos. 157 to 159, inclusive, and 166 to 168, inclusive, together

I am informed by the Revenue Commissioners that the total yield of domestic VAT revenue attributed to the construction industry as a whole in 2011, which is the latest year for which the necessary detailed data is available, is estimated to be of the order of €92 million. It should be noted that this receipt figure is net of any refunds of tax that were repaid during the year. Equivalent figures for 2012 and 2013 are not yet available.

I am also informed by the Revenue Commissioners that, as the information furnished on VAT returns does not require the yield from a particular sector or sub-sector of economic activity to be identified, it is not possible to estimate the VAT yield for the specific activities mentioned by the Deputy in his questions.

Regarding projected figures for 2014, I would point out that projections for tax receipts are based on assumed movements in macro-economic parameters and not by reference to the expected yields from particular sectors or sub-sector of economic activity. Accordingly, I am not in a position to provide the projected figures requested for 2014.

Top
Share