Written Answers Nos. 128-149
128. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade if a person (details supplied) with their expertise in dealing with the Northern Ireland peace process has been able to assist efforts in respect of peace in Syria; and if he will make a statement on the matter. [47032/13]
View answerIreland is actively engaged on the many humanitarian, legal and political issues presented by the Syrian conflict and contributes to the formulation of international policies on Syria in many fora. Officials at all levels based in the Department of Foreign Affairs and Trade's headquarters and its network of missions abroad are involved in these efforts. I have repeatedly discussed international concerns over developments in Syria with fellow EU Foreign Ministers at meetings of the Foreign Affairs Council, at the UN General Assembly, as well as in bilateral meetings with other Foreign Ministers. Ireland's position of strong support for efforts to achieve a political resolution of the crisis and to address its dire humanitarian consequences for Syria and the wider region is very much in line with current international efforts and thinking, including that of the Holy See.
No invitation has been extended to Heads of Mission accredited to the Vatican to attend the meeting planned for 21 November referred to in the Deputy's question. I understand that the meeting referred to will be attended by His Holiness, Pope Francis, Patriarchs and Archbishops of the Eastern Churches, and is taking place in the context of a Congregation for Oriental Churches conference marking 50 years of Vatican II.
129. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide a list of the official visits made to Rome by a person (details supplied) since their appointment; with whom they have spoken in other parts of the Roman Curia; if the person met Irish officials in the Curia; the cultural initiatives that have been promoted by the Irish Government in the Roman Curia, the Cultural Institutions of the Holy See Vatican Library, Vatican Archives, Vatican Museums, Vatican Astronomical Observatories and the Academies of Science during this person's tenure; and if he will make a statement on the matter. [47033/13]
View answerThe Deputy will appreciate the necessity for Ambassadors to conduct official business with a degree of discretion, and for that reason I do not propose to provide a list of persons with whom the Ambassador has met since his appointment. However, I can assure the Deputy that I am satisfied with the range of the Ambassador's diplomatic contacts, both within the Secretariat of State and the Roman Curia more widely, in particular in the relevant Pontifical Councils and Congregations, including with Irish officials.
Ambassador Cooney has travelled to the Holy See on numerous occasions since the announcement of the Embassy closure in November 2011, the vast majority of which visits have taken place since he presented credentials in May 2012. In this context, the Ambassador has attended a full range of events, including the inauguration of Pope Francis to which he accompanied the President, and was present at the Pope's subsequent meeting with the Diplomatic Corps. During our Presidency earlier this year, for example, he hosted a meeting for European Union Heads of Mission at which the Holy See's Undersecretary for Relations with States was the guest of honour.
I am satisfied that the current arrangement for Ireland's representation at the Holy See is the most effective possible in light of the resource constraints faced by my Department.
130. Deputy Mattie McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the recourse or assistance available to the family of an Irish passport holder who is found dead in a foreign country and whose manner of death as outlined by that country's police is contradicted by a highly regarded and competent investigator; if there are any requirements on the Irish Government to take up the case on a government to government basis and insist on a new and impartial investigation into the entire circumstances of the Irish citizen's death; and if he will make a statement on the matter. [47055/13]
View answerI am aware of the case to which the Deputy refers, which occurred in Botswana in 2006. My Department through the Embassy of Ireland in Maputo and the Consular Assistance Section in Dublin has provided consular assistance to the family of the deceased following his death and throughout the subsequent investigations. I wish to advise the Deputy that following the 2007 report of the initial investigation by Botswana Police and an inquest held in the Coroners court in Mallow in 2007, the case was reviewed by the Botswana Department of Defence, Justice and Security. The Report of the Review issued in 2011 took account of the report of the private investigator, to which the Deputy refers. As the Deputy will appreciate, it is not appropriate for this Department to request a further investigation in this case, however, if the family wish to write a letter of complaint to the Botswana authorities, my Department will follow up on this. The family may wish to engage a lawyer in Botswana if they intend to pursue this case through the legal system in that country.
My Department remains available to provide consular assistance to the family.
131. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide in tabular form the partial year and the full year monetary effect of his Department's budget 2014 reductions to expenditure. [47078/13]
View answerThe Department of Foreign Affairs and Trade has responsibility for Vote 27 -International Cooperation, and Vote 28 - the Departmental vote. Budget 2014 provides a gross allocation to the Department in respect of both Votes in the sum of € 693 m, consisting of € 687 m in current expenditure and € 6.5 m in capital expenditure. The main monetary effect year-on-year therefore is a reduction in overall terms of € 22 m compared with the 2013 Estimate, as revised.
This is accounted for by the reduction in the overall allocation for Vote 27 in respect of Development Cooperation; the absence of provision under Vote 28 in respect of the EU Presidency following its successful completion in 2013; and reductions in pay affecting staff across both Votes in line with the terms of the Haddington Road Agreement.
The Department is currently in the process of finalising its detailed budgets and profiles for 2014 based on the needs of the programmes for which it is responsible and the overall allocations made on Budget Day.
132. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has raised with the Northern Ireland Secretary of State the serious issues relating to collusion outlined in the recent publication, Lethal Allies; and if he will make a statement on the matter. [47095/13]
View answerThe author of the book to which the Deputy refers kindly briefed my officials on the main conclusions shortly in advance of publication. Several of the murders mentioned would have been raised with the British side over the years, following representations from politicians and clergy in the area. We are now examining the text in detail and will consider further action in light of that examination. Dealing with the legacy of the past is an issue which is essential if we are to make greater progress towards reconciliation and a shared society. The Government supports the work of the Panel of Parties established by the First Minister and deputy First Minister to look at dealing with the past, with parades and with flags and emblems. When I met with the Independent Chair of the Panel Dr. Haass in Dublin last week we discussed how best to deal with the legacy of the past. I offered whatever support possible from the Irish Government to help him in his work.
My Department is in on-going contact with a number of victims' groups, including many of those who lost loved ones in the incidents set out in the book to which the Deputy refers. The grief and suffering they have had to endure unites them with the experience of thousands of other families who suffered loss and harm through violence. It is essential that, as we seek to move to a better future for all the people of this island, we acknowledge those who have suffered most from the conflict and work to build a reconciled society.
133. Deputy Barry Cowen asked the Minister for Finance if payments made under circular letter S.3/2007 of 22 January 2007 are subject to income tax; and if he will make a statement on the matter. [45682/13]
View answer147. Deputy Kevin Humphreys asked the Minister for Finance following budget 2014, if he will outline what the taxation treatment of the retirement gratuity payment for local authority councillors will be following the abolition of top slicing relief; and if he will make a statement on the matter. [45635/13]
View answerI propose to take Questions Nos. 133 and 147 together.
Circular letter S.3/2007 of 22 January 2007 sets out the payments made to local authority councillors on retirement.
Section 4 of the Finance (No. 2) Bill 2013 provides for the cessation of Top Slicing Relief in respect of any payments chargeable to tax under section 123 of the Taxes Consolidation Act 1997, which are made on or after 1 January 2014. All other reliefs or exemptions in relation to such termination payments continue to apply as appropriate.
Interpretation of tax law is a function of the Revenue Commissioners and I am informed by them that the payments to local authority councillors on retirement are taxable under section 123 of the Taxes Consolidation Act 1997 with the exemptions and reliefs provided for by way of section 201 and Schedule 3 to that Act. This is the same relief provided to all other employees in receipt of an ex-gratia payment on redundancy or termination of an office or employment.
Under section 201 an individual claimant is entitled to a basic exemption of €10,160 plus an additional €765 for each full year of service. Where the individual has no pension lump sum entitlement or has waived his or her right to that pension an increased exemption of €10,000 is also available under Schedule 3 of the Taxes Consolidation Act 1997. Otherwise the €10,000 figure is reduced by the actuarial (current use value) amount of that lump sum entitlement.
In addition, Schedule 3 of the Taxes Consolidation Act 1997 provides for the Standard Capital Superannuation Benefit (SCSB) which be claimed where the SCSB as determined exceeds the basic and increased exemption. This relief is determined by reference to the average earnings of the claimant over the previous 36 months of employment, the SCSB is calculated as the average pay for the last three years multiplied by the number of complete years of service, and then divided by 15, less any pension lump sum entitlement.
Top Slicing relief, which continues to be available in respect of ex-gratia payments made up to 31 December 2013, is determined by reference to the average effective rate of tax charged over the 3 previous years of assessment on the taxable element of the ex-gratia payment, as compared to the tax payable on the same payment at the marginal rates of tax in the current year.
Top Slicing Relief will not be available where the payments to local authority councillors on retirement are made on after 1 January 2014.
134. Deputy Eoghan Murphy asked the Minister for Finance the reason a self-employed person pays more income tax than a PAYE earner when the Government is trying to incentivise entrepreneurial activity. [46000/13]
View answerFor the purpose of this reply, it is assumed that the Deputy is referring to entitlement to the PAYE tax credit. On that basis, the position is that the PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self-employed generally then had the advantage of paying tax on a preceding year basis. The argument was also made at the time that the general scheme of allowances for expenses discriminated against employees and in favour of other taxpayers. There have been some changes since 1980. For example, the self-employed now pay tax on a current year basis. In addition, the PAYE allowance has become a tax credit. However, significant timing benefits remain, depending on the accounting period used by the taxpayer. In addition, the expenses regime remains somewhat more liberal than that afforded to employees and therefore the self-employed can actually pay less tax when compared to a PAYE worker on the same income.
Notwithstanding the above, to extend the PAYE tax credit to the self-employed would also be extremely costly to achieve. However, as the Deputy is aware, I did announce in my Budget Speech a package of 25 measures costing over €500m to promote jobs and growth. I believe that these measures will assist new business and small business and provide support for employers in almost every sector.
135. Deputy Eoghan Murphy asked the Minister for Finance if he is considering making a distinction in the capital gains tax regime to incentivise entrepreneurial activity by way of returns to investors versus returns from investment in non-productive speculative activity. [46001/13]
View answer137. Deputy Eoghan Murphy asked the Minister for Finance the way planned changes to the capital gains tax regime for 2014 in terms of entrepreneurial relief are to be monitored over the course of 2014 in terms of their effectiveness. [46003/13]
View answerI propose to take Questions Nos. 135 and 137 together.
The CGT entrepreneurial relief provided for by Finance (No. 2) Bill 2013 will apply to active entrepreneurs who invest in new businesses, engaged in relevant trading activities (as defined), carried on by them personally or through qualifying companies controlled by them in which they are full-time working directors. The relief is intended to apply to productive enterprises that will generate employment and will not therefore apply to passive investors or to investments in passive activities.
The benefit of the proposed entrepreneur relief will arise on the ultimate disposal by qualifying entrepreneurs of the chargeable business assets in which they invest. These chargeable business assets must be held for a minimum of three years and the other applicable conditions must be satisfied to qualify for relief.
Taxpayers are required to include in their tax returns details of chargeable assets acquired each year. However, it will only be on a future disposal that entitlement to the relief can be determined. Accordingly, it will be 2017 at the earliest before any tax relief under this provision will arise. From 2017, the relief may be claimed by qualifying entrepreneurs in their tax returns. These returns will require appropriate details in relation to the relief so that statistical information will be available to establish the extent to which the relief is availed of.
136. Deputy Eoghan Murphy asked the Minister for Finance his views on whether the EIIS is too complicated and if he will provide an update on the changes that are planned to improve take-up of this scheme in 2014; and the way its effectiveness is to be measured throughout the year. [46002/13]
View answerThe Employment and Investment Incentive (EII) is a tax incentive which provides income tax relief for investment in certain corporate trades. Relief is initially available to an individual at 30%, with a further 11% tax relief available where it has been proven that employment levels have increased at the company at the end of the holding period. The EII commenced on 25 November 2011. Prior to this the Business Expansion Scheme (BES) was in operation. As part of Budget 2013 I announced a 10 point tax reform plan to help small business. One of the measures in this plan was the extension of the EII from its current expiration date of the end of 2013 to the end of 2020 in order to provide certainty to investors and companies.
In addition to the extension of the scheme, I also announced the inclusion of hotels, guest houses and self-catering accommodation in the EII, subject to certain conditions.
In the recent Budget I also announced that the EII will be removed from the high earners' restriction for a period of three years in the hope that it will stimulate further investment in SMEs.
I do not consider the scheme to be too complicated. When the EII was introduced in 2011, it greatly simplified the application process when compared to the process that had been in place under the BES.
138. Deputy Eoghan Murphy asked the Minister for Finance if he has considered adapting the EIIS to make it more competitive similar to the EIS scheme in the UK. [46004/13]
View answerAccording to the UK Revenue website, the UK Enterprise Investment Scheme (EIS) provides 30% relief for investment in qualifying companies where shares are held for a minimum of three years. The Employment and Investment Incentive (EII) is broadly similar to the EIS. However, the level of tax relief available is more generous than the UK scheme.
The EII provides tax relief of 30% on investments made in small and certain medium-sized enterprises, including early stage enterprises, with the possibility of a further 11% tax relief at the end of the three year holding period. This additional 11% relief is not subject to the high earners' restriction.
In addition, as part of the recent Budget, I announced that the initial 30% relief will be removed from the high earners' restriction for a period of three years in order to encourage further investment in SMEs.
The incentive was previously known as the Business Expansion Scheme and was significantly amended in 2011 to target limited Exchequer resources towards job creation. As part of these changes, access to the incentive was made available to the majority of small and medium-sized companies.
139. Deputy Clare Daly asked the Minister for Finance the list of the National Asset Management Agency properties in the Dublin area. [46148/13]
View answerAs the Deputy may be aware, NAMA does not own or manage properties. NAMA's role is that of a secured lender and it is subject to similar legal requirements as other lenders that preclude it from disclosing details relating to properties owned by its debtors. NAMA does, however, publish a list of Receiver-controlled properties; this is available on its website, www.nama.ie, and is searchable by country/area.
140. Deputy Finian McGrath asked the Minister for Finance the position regarding single parents' allowance in respect of a person (details supplied) in Dublin 9; and if he will make a statement on the matter. [46335/13]
View answerAs the Deputy is aware, the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current One-Parent Family Tax Credit. Given the difficult fiscal environment it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary refocused in order that they can achieve the socio-economic objectives that are set for them. A system that allows multiple claims in respect of the same child is unsustainable.
The Commission on Taxation acknowledged that the One-Parent Family Tax Credit plays a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit will achieve such an outcome.
Allocation of childcare responsibilities is primarily for parents to agree. Practical implementation issues, such as that which you have raised, are being considered as part of the Finance Bill process.
141. Deputy Patrick Nulty asked the Minister for Finance the measures he will take to assist small businesses which will be faced with 13.5% VAT on their water bills from 1 January 2014; the action he will take to reduce this cost; and if he will make a statement on the matter. [46604/13]
View answerThe supply of water by local authorities is currently exempt from VAT. This VAT exemption will continue to apply to supplies of water made by Irish Water from 1 January 2014. In this context, there will be no additional VAT burden on water charges to small businesses by Irish Water.
142. Deputy Tom Fleming asked the Minister for Finance if he will provide in tabular form the number of bicycles grant aided in each county in the cycle to work scheme since the introduction of the scheme in 2009; and if he will make a statement on the matter. [47057/13]
View answerThe cycle to work scheme came into operation on 1 January 2009. With a view to keeping the scheme simple and reducing administration on the part of employers, there is no notification procedure for employers involved. Accordingly, the Revenue Commissioners do not have statistics on the uptake of the scheme. The scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation.
The purchase of bicycles and associated safety equipment by employers for employees or directors is subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records (e.g. delivery dockets, invoices, payments details, etc.). The employer is also obliged to keep all salary sacrifice agreements entered into between the employer and employees/directors, together with all signed statements from employees/directors regarding use of the bicycles and safety equipment.
It was estimated at the time of the introduction of the scheme that approximately 7,000 employees would avail of it over the first five-year period of its operation at a cost of €0.4 million in a full year. However anecdotal evidence would suggest that the scheme has been considerably more successful than this. The exemption may apply only once in any five year period in respect of any employee.
143. Deputy Michael Healy-Rae asked the Minister for Finance his views on the local property tax (details supplied); and if he will make a statement on the matter. [47110/13]
View answer202. Deputy Michael McGrath asked the Minister for Finance the arrangements that apply for persons who wish to pay their local property tax liability for 2014 by credit card; if he will specify the relevant payment dates that apply to such persons; and if he will make a statement on the matter. [46491/13]
View answer214. Deputy Niall Collins asked the Minister for Finance the position regarding payment of the local property tax and the different payment dates for payment by credit/debit card, and the single debit authority option in March 2014; and if he will make a statement on the matter. [46815/13]
View answer215. Deputy Andrew Doyle asked the Minister for Finance the reason the Revenue Commissioners have set the date of the end of November for payment of the 2014 local property tax for the persons who pay by credit card; the penalties that will apply to persons who pay later than this date; if the Revenue Commissioners will consider extending the card payments deadline date beyond November until the end of the year, in line with dates for persons paying via other methods; and if he will make a statement on the matter. [46879/13]
View answer216. Deputy Brendan Griffin asked the Minister for Finance if he will extend the due date for the 2014 property tax liability in respect of persons who choose to make payment by cash, cheque and debit transfer; and if he will make a statement on the matter. [46881/13]
View answer229. Deputy Finian McGrath asked the Minister for Finance if he will clarify issues in relation to the local property tax; and if he will make a statement on the matter. [46999/13]
View answer232. Deputy Tom Fleming asked the Minister for Finance if he will intervene with the Revenue Commissioners to extend the closing date for the 2014 property tax returns by at least one month; if he will introduce flexible arrangements for stage payments for householders who may have opted for yearly once off payments in 2013 but now due to changes in financial circumstances and hardship for many of these householders that a more flexible option be granted to these people; and if he will make a statement on the matter. [47059/13]
View answer239. Deputy Róisín Shortall asked the Minister for Finance if he was informed of the decision to pre-charge home owners who pay by credit or debit card for the 2014 property tax; if he was not, the level in the Revenue Commissioners such a decision was taken and if he will indicate if he has met with the person or persons responsible since the decision was taken; if his attention has been drawn to the public outrage at such a decision and the deep public concern at the apparent absence of any forward planning or consideration of family budgeting in the pre-Christmas period; if he will instruct the Revenue Commissioners to push the deadline for such payments into the new year; and if he will immediately review all local property tax operations in the Revenue Commissioners with the aim of significantly improving customer service, planning, and guidance on the local property tax. [47101/13]
View answer252. Deputy Martin Heydon asked the Minister for Finance the reason certain payment methods, debit/credit card and cheque, for the 2014 local property tax require payment to be taken in 2013; the options that are available to property owners liable for the 2014 local property tax who wish their payment to be taken in 2014; and if he will make a statement on the matter. [47136/13]
View answerI propose to take Questions Nos. 143, 202, 214 to 216, inclusive, 229, 232, 239 and 252 together.
I am advised by the Revenue Commissioners that they recently wrote to over 960,000 property owners who paid their 2013 LPT by lump sum (i.e. by debit/credit card, cash, cheque/postal order or single debit authority) or by way of regular cash payments. In the letter, the Commissioners asked these property owners to reply to Revenue indicating their payment preference for 2014.
Letters were not sent to property owners who paid their 2013 LPT by deduction at source from salary/occupational pension or from certain Government payments or direct debit, or to those who opted to defer their full LPT liability or those who claimed an exemption, as all of these options will simply roll over and continue to apply for 2014. No action is required to be taken by these property owners, unless they wish to change to a different payment method for 2014.
Payment Options
As I have informed the House on numerous occasions in the past, the LPT provides for a range of payment options and property owners can choose the one that best suits their particular circumstances. I am advised that no matter how the LPT charge for 2013 was paid, property owners can choose any of the available options to pay their 2014 liability and can decide whether to pay the tax in full or to spread payments over the course of 2014. Property owners can:
- Spread their payments evenly throughout 2014 by way of direct debit or deduction from salary, pension or Government payment (direct debits commence on 15 January 2014);
- Spread their payments by making regular payments, weekly or monthly, throughout 2014 at service providers listed (An Post, Payzone and Omnivend);
- Pay in full by Single Debit Authority (like a cheque) which will be debited by Revenue on 21 March 2014;
- Pay in full by 1 January 2014 through service providers listed (An Post, Payzone and Omnivend);
- Pay by cheque or postal order by 1 January 2014;
- Pay in full now by debit/credit card.
LPT Legislation
Section 119 of the Finance (Local Property Tax) Act 2012 (as amended) sets out the dates for payment of the Local Property Tax (LPT). For the year 2014, the payment due date is 1 January 2014. The legislation also makes provision for property owners to pay the tax for 2014 in equal instalments over the period 1 January 2014 to end December 2014.
I am further advised by the Revenue Commissioners that there is no requirement on any property owner to pay their LPT for 2014 before 1 January 2014. I can also absolutely state that no penalties apply if a person does not pay before then as the tax is not due until 1 January 2014. The only action a property owner is required to take now is to decide on their payment method for 2014 and submit the payment instruction to Revenue by the relevant due date (which is 7 November 2013 for paper filers, or 27 November 2013 for on-line filers) and this is clearly stated in the letters recently issued by the Commissioners. The date of 7 November is provided for in the LPT legislation (the 27 November date is a concession on Revenue’s part, in accordance with their normal arrangements for online filers). The legislation requires property owners to advise Revenue of their payment method. Notice is required to put the necessary arrangements in place to ensure that phased payments by way of deduction at source from employment or occupational pension income or from certain payments from the Departments of Social Protection and Agriculture, Food and the Marine will start in January 2014 and spread payment of the full LPT liability evenly over the course of 2014.
Regarding the comparisons made in Question No. 46999/13 between the payment arrangements for LPT and those for the self-employed, I am advised that the reference to June/July is incorrect. I am also advised that the range of options available are similar except that LPT provides significantly more flexibility by facilitating monthly direct debit payments or weekly/monthly deduction at source and cash payment options.
Communications
I would like to take this opportunity to assure the Deputies that the process for 2014 is much simpler than 2013 because there is no need for property owners to assess the value of their properties. Property owners are only required to confirm how they intend to pay the tax for 2014. This was clearly indicated in the letters that issued recently. As part of Revenue's public communications campaign, an information advertisement was included in the national and local papers during the last two weeks of October. In addition, the Revenue website includes a dedicated page outlining what property owners are required to do for 2014. Revenue spokespeople have also taken part in a large number of national and local media interviews and continue to do so. The Commissioners have also issued a briefing note to all parliamentary assistants of Oireachtas Members providing clarification on what property owners are required to do now and the range of payment options that are available for paying the tax.
Lump sum payments by Debit/Credit Card
Much of the recent public and political comment has focussed on the fact that one of the payment options available, i.e. payment on-line by debit or credit card results in immediate deduction of the liability on the day the transaction is made. This has led to assertions that Revenue is requiring payment to be made during 2013 for a 2014 liability. This is emphatically not the case and neither is it the case that payment by debit/credit in 2013 is the only option available to property owners who wish to pay in full in one single payment. Those who opt to pay the tax by debit or credit card have up to 27 November 2013 to choose this payment option online. Revenue have informed me that they are getting queries from the public as to why they do not retain credit/debit card details for a number of weeks. The answer is that in line with data protection requirements and more specifically best practice in relation to data retention, Revenue does not and should not retain debit/credit card details for longer than is necessary to process and validate the payment and therefore cannot postpone the deduction of LPT until 2014 for this payment method.
Given the immediacy of payment using a debit/credit card, Revenue decided to make this information point explicitly in the letters that issued recently and also to highlight the relative attractiveness from a cashflow point of view of the other 2014 payment options.
Other lump sum payment options – Single Debit Authority
All property owners with a debit card and most with a credit card also have a bank account. If a property owner wishes to pay in full in one payment in 2014 they have the option to make a single payment from their bank account on 21 of March 2014. For homeowners who wish to pay by lump sum, this is the most advantageous option. To do this property owners should select the option entitled "Single Debit Authority", which is the second option, when filling out their property tax return online or fill in the form included in their paper return with their bank account details and sort code and return to the Revenue Commissioners. The Commissioners advise that the single debit authority payment option is drawn on a person's current account in the same way as a debit card payment is and is available to all current account holders. Property owners who opt for this method have an extended payment date to 21 March 2014.
Of course, property owners who opted to pay by lump sum in 2013 have the option of changing to payment by instalments for 2014.
Payment by Cheque/Postal Order
Issues have also been raised with regard to paying the tax by cheque/postal order. The Commissioners have confirmed that property owners may send their cheque/postal order with their LPT1A Payment Instruction form to Revenue by 7 November 2013, or alternatively, they may send their cheque/postal order separately to Revenue on or before the 1 January 2014. The taxpayer should enter the Property ID on the back of the cheque to ensure that the cheque is matched to the property. I am advised that a detailed "Frequently Asked Question" covering this point is available on the Commissioners' website at www.revenue.ie.
Revenue Administration
All matters related to the administration of LPT, and all other taxes and duties, are for the Revenue Commissioners to determine. In relation to the concerns expressed by some Deputies regarding Revenue's administration of LPT, Revenue resourcing is subject to the same constraints as all other Government Departments and Offices but I am assured that Revenue has the same resources available for administering LPT now as when the first payment of LPT was due. A key component of its strategy to manage the customer contact element of the project will continue to be the operation of a dedicated LPT Helpline at 1890-200-255. This service, which is operated by a private sector call handling company on behalf of Revenue is the primary point of contact for customers and is supported by a team of internal Revenue experts for more complex queries.
Revenue has confirmed to me that the volume of callers to the Helpline has been heavy since the issue of the 2014 LPT notifications and the volumes are being constantly monitored by Revenue. I am informed that extra resources have already been deployed today to the service to ensure waiting times are kept to the minimum. Revenue has also confirmed that it has deployed extra resources to its internal support service to cater for the more complex queries. At this point there are 180 agents fully deployed to telephone call handling with a further 80 staff dealing with correspondence. In addition, where callers leave a message with their contact details for a callback, significant numbers of these are being handled out of hours by LPT staff. I am assured by the Commissioners that the telephone situation is already showing signs of settling down but that they have made contingency plans to further increase the capacity of the helpline, if required, as the weeks progress.
The introduction of Local Property Tax, amounting, as it does, to the largest extension of the self-assessment system in the history of the State, represents a very great administrative challenge for Revenue. Revenue has handled this challenge very well to date and has successfully answered in excess of 560,000 telephone calls and replied to in excess of 200,000 letters or emails since March 2013. I want to again commend Revenue for the excellent work it has done in taking LPT from concept to a fully functioning tax in such a short period of time, including the enacting of legislation, the building of a brand new property Register, the provision of customer service to such a large volume of taxpayers and critically the lodgement of in excess of €215m to date to the Exchequer.
I do not need to remind Deputies that the Revenue Commissioners are independent in the application of the taxes and customs Acts. Their primary role is to administer the tax and customs systems in accordance with laws passed by this House, and to secure the taxes and duties for the Exchequer which are necessary to run the country. In that context, I regularly meet the Chairman of the Revenue Commissioners and I am fully satisfied that consideration has been and continues to be given by Revenue to the matters raised in all of these Questions. In particular, I am satisfied that Revenue highlighted in all their communication that there are easy ways to pay LPT in 2014, especially phased payments but they need to be set up in advance to work smoothly for the property owners concerned. Furthermore, I understand the Chairman will be meeting the Joint Oireachtas Committee on Finance, Public Expenditure and Reform on Thursday next in relation to the administration of LPT, as she has done in the past.
Finally, I am very pleased to note that in excess of 50,000 property owners have already filed and selected their payment option for LPT 2014, with some 56% using the online facility. I am also informed that the full range of payment options are being selected by property owners and it is clear that they are making their own decisions on the payment option that best suits themselves.
144. Deputy Pearse Doherty asked the Minister for Finance if he will consider introducing a measure to provide exemption for vehicle registration for personal security reasons for those living in Border areas who may need to retain their northern registration plate while travelling across the Border; and if he will make a statement on the matter. [45621/13]
View answerI have no plans to amend VRT for those living on border areas. It is an offence, under Section 139 of the Finance Act, 1992 to be in possession of an unregistered vehicle in the State unless the person found in possession of it is a person whose normal residence is outside the State or the vehicle is the subject of an exemption. A person who is not an authorised person who brings a non-State registered vehicle into the State, which is not exempt, is required to complete the registration of the vehicle not later than 30 days following its arrival in the State.
145. Deputy Michelle Mulherin asked the Minister for Finance his views on the sales process pursued by the National Asset Management Agency such as in the Irish Bank Resolution Corporation loan sale offers where the market generally does not bid what NAMA expects to be bid; the person who is accountable to the taxpayer for setting the valuation or reserve price; and if he will make a statement on the matter. [45623/13]
View answerI would remind the Deputy that, as Minister for Finance, I have no role in relation to individual transactions, including those relating to the sale of property, approved by NAMA in line with its statutory commercial mandate. In managing its commercial mandate, NAMA must make a professional assessment, for each of thousands of transactions, as to whether any particular proposed transaction is ultimately in the taxpayers' best interests, as opposed to the interests of other parties. In that respect, I have stated previously that I am satisfied with NAMA's progress to date. The Deputy may wish to note that, in the four years since its inception, NAMA has overseen the sale of loans and property with a value of close to €10bn. This includes the sale of over 7,000 individual properties. The generation of €10bn in assets sales and a further €4bn in non-disposal income, mainly rental income, means that NAMA is firmly on course to meet its first major debt repayment target, that is, the repayment of €7.5bn of Senior Bonds by the end of 2013.
146. Deputy Gerald Nash asked the Minister for Finance if he will ensure that provision will be made in the forthcoming finance Bill to ensure that the single parent tax credit may be utilised by the parent with joint custody who earns the lower amount; and if he will make a statement on the matter. [45629/13]
View answerAs the Deputy is aware, the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current One-Parent Family Tax Credit. Given the difficult fiscal environment it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them. A system that allows multiple claims in respect of the same child is unsustainable.
The Commission on Taxation acknowledged that the One-Parent Family Tax Credit plays a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit will achieve such an outcome.
Allocation of childcare responsibilities is primarily for parents to agree. Practical implementation issues are being considered as part of the Finance Bill process.
148. Deputy Pearse Doherty asked the Minister for Finance the number of persons formerly eligible for one parent family tax credit that are ineligible for the single person child carer tax credit; the number of this group that are male; and the number of this group that are female. [45653/13]
View answerAs the Deputy is aware, the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current One-Parent Family Tax Credit. I am advised by the Revenue Commissioners that based on the most up to date data it is estimated that up to 15,400 individuals may be affected by the restriction of the restructured credit to the principal carer. However, ultimately it will depend on the circumstances of each individual carer and the allocation of childcare responsibilities, which is primarily for parents to agree.
Practical implementation issues are being considered as part of the Finance Bill process.
149. Deputy Pearse Doherty asked the Minister for Finance the savings that will be made from the replacement of the one-parent family tax credit with the single person child carer tax credit. [45654/13]
View answerI am advised by the Revenue Commissioners that based on the most up to date information available, it is estimated that the expected yield from replacing the One-Parent Family Tax Credit with the Single Person Child Carer Tax Credit from 1 January 2014 will be €18 million in 2014 and €25 million in a full year.
