Skip to main content
Normal View

Tax Collection

Dáil Éireann Debate, Thursday - 7 November 2013

Thursday, 7 November 2013

Questions (76, 87, 89, 90, 91, 92, 93, 94, 95, 96)

Michael McCarthy

Question:

76. Deputy Michael McCarthy asked the Minister for Finance if his attention has been drawn to concerns relating to the possibility that the date of the pay and file income tax return deadline will be brought forward; the effect of such a change on cash flows for income tax payers and small and medium-sized businesses; the challenges for the professionals who complete and file tax returns on their behalf, for seasonal operations, particularly agricultural and tourist related operators; his views on the impact of this proposal on the current excellent level of compliance and the need to ensure that taxpayers, business groups, tax advisers and accountants are consulted on any proposed changes. [47559/13]

View answer

Michael Healy-Rae

Question:

87. Deputy Michael Healy-Rae asked the Minister for Finance his views on whether the proposed June option would be unworkable for taxpayers and for the profession, that is, for all practices whether small, medium or large; and if he will make a statement on the matter. [47627/13]

View answer

Michael Healy-Rae

Question:

89. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47634/13]

View answer

Michael Healy-Rae

Question:

90. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47635/13]

View answer

Michael Healy-Rae

Question:

91. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47636/13]

View answer

Michael Healy-Rae

Question:

92. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47637/13]

View answer

Michael Healy-Rae

Question:

93. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47638/13]

View answer

Michael Healy-Rae

Question:

94. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47639/13]

View answer

Michael Healy-Rae

Question:

95. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47640/13]

View answer

Michael Healy-Rae

Question:

96. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the pay and file consultation period; and if he will make a statement on the matter. [47641/13]

View answer

Written answers

I propose to take Questions Nos. 76, 87 and 89 to 96, inclusive, together.

Under the regulations known as the “Two-Pack” which were formally adopted on 30th May 2013, a common budgetary timeline is being introduced for all Euro Area member states. Specifically:

- the draft budget for central government and the main parameters of the draft budgets for all the other sub-sectors of the general government must be published by the 15th of October each year;

- draft budgetary plans in a common format must be submitted by all Euro area Member States not in a programme of assistance; and

- the budget for the central government must be adopted or fixed upon and published by the 31st of December each year.

In light of these requirements, the Government decided to bring Budget Day forward from the first week in December to on or before the 15th of October from now on. Accordingly, I presented Budget 2014 on Tuesday last, 15th October. The Government also decided that the Finance Bill should complete its passage through the Oireachtas by the 31st of December each year. One of the most critical elements of the Budget process is the accuracy of systems for forecasting potential revenue yield in the year in question prior to the Budget actually taking place.

In the context of a December Budget Day, the availability prior to the Budget of information on cumulative tax yields to the end of November gave a high degree of certainty to the estimation of potential outturn for the year. For example, cumulative tax yield to the end of November 2012 was €33.8bn, which represented 92% of the full year outturn of €36.6bn. On the other hand, cumulative yield to end September, at €26.1bn, represented only 71.3% of the eventual outturn.

The scope for unanticipated events which would lead to either a higher or lower than projected outturn is considerably increased in the context of an October Budget. In addition the ability to project future yield is compromised. Consequently, measures which would result in improvements in the availability of information or increases in the proportion of total yield already available prior to the Budget have to be considered. The main areas where scope exists to introduce such improvements relate to the income tax Pay & File arrangements and on 11th October I initiated a consultation process on a revision of the existing arrangements.

I am aware of the concerns that have been raised and will consider the results of this consultation process, which closes on Friday next, 8th November, when drafting, as a Committee Stage amendment to the forthcoming Finance Bill, the necessary measures. I would reiterate that changes to the Pay and File regime are necessary as a result of the move to an earlier Budget Day, following the adoption of the Two-Pack and will provide increased certainty around the annual tax take. I would encourage all those who hold views on the proposed changes to engage with my Department via the consultation process. Full details are available on our tax policy website, www.taxpolicy.gov.ie.

Top
Share