Pearse Doherty
Question:78. Deputy Pearse Doherty asked the Minister for Finance when a strategic investment bank will be established; and if he will make a statement on the matter. [47858/13]
View answerIreland Strategic Investment Fund Investments
Questions (78)
Written answers
As the Deputy will be aware, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the National Pensions Reserve Fund (NPRF). Using the Ireland Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create employment.
Officials of my Department are currently preparing the necessary legislation which I anticipate will be enacted early next year. Already, in the lifetime of this Government, the NPRF has established funds that support both strategic projects and a number that support SME financing. Further assessment of the need to create a Strategic Investment Bank over and above the contribution expected from the ISIF will be informed by the requirements of the economy once the Government’s key immediate objectives for the repair of the banking system have been completed.
Property Taxation Data
Questions (79)
Kevin Humphreys
Question:79. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown by payment type of the way persons paid their local property tax to the Revenue Commissioners in 2013 on a transaction basis including credit-debit cards, cheque or postal order, direct debit, deduction at source whether salary, social protection payment or agricultural payment, single debit authority or cash; and if he will make a statement on the matter. [47860/13]
View answerWritten answers
I am advised by the Revenue Commissioners that the most up-to-date breakdown of Local Property Tax (LPT) payment types for 2013 is published on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-stats-11-2013.pdf along with other key LPT data. With regard to payments made by deduction at source, I am advised by the Commissioners that a detailed breakdown by deduction from salary or government payments is not currently readily available. LPT Returns are still being filed and more detailed data and analysis will be published in due course. I am further advised that by the end of October 2013 approximately €215m had been transferred by Revenue to the Exchequer.
The breakdown of payment options shown at the link above is as follows:
|
Payment Options based on Amounts Collected to Date (2013 Returns) Payment Type |
% LPT Collected to Date |
% of Designated Liable Owners * |
|
Credit Card |
14.9% |
14.3% |
|
Debit Card |
36.7% |
39.5% |
|
Direct Debit |
10.7% |
12.9% |
|
Single Debit Authority |
24.1% |
16.0% |
|
Cheque |
6.0% |
|
|
Deduct at Source |
0.6% |
7.0% |
|
Service Provider |
7.1% |
10.3% |
|
Total |
100.0% |
100.0% |
* Note: A split between the Single Debit Authority and Cheque options is not available for designated liable owners.
Property Taxation Yield
Questions (80)
Kevin Humphreys
Question:80. Deputy Kevin Humphreys asked the Minister for Finance the expected yield from the local property tax for the liability that arises in 2013; the amount it is projected will be received in 2013 for the liability that arises in 2014; if he will clarify that the projected €300 million in 2013 from local taxes in the Exchequer tax revenue forecast on page C15 of the budget book includes payments for 2013 and 2014; and if he will further clarify of the €550 million projected yield in 2014, the amount of this figure that relates to late payments for 2013, and early payments for 2015; and if he will make a statement on the matter. [47861/13]
View answerWritten answers
Initial forecasts for Local Property Tax (LPT) receipts envisaged a yield of €250 million for 2013 and €500 million in 2014, a full year. In light of taxpayer payment patterns in respect of the 2013 liability, the anticipated yield for 2013 was increased to €300 million to take account of potential payments in respect of 2014. Because 2014 is the first full year of LPT, and because there are a number of one-off factors to be included, estimates are of necessity tentative. The 2014 forecasted yield for LPT of €550 million carries forward the assumption that observed taxpayer payment patterns will continue. It also takes account of 2014 yields most of which will be non-recurring, including the 2013 liabilities of local authorities, which were postponed into 2014; arrears and compliance activity by the Revenue Commissioners in relation to 2013 LPT and LPT yield arising from arrears of household charge. In this regard, I am advised by the Commissioners that while compliance activity will begin early next year, approximately €700,000 has already been paid since 1 July in respect of arrears of household charge/LPT and is included in the LPT Exchequer figures.
Question No. 81 answered with Question No. 61.
Tax Credits
Questions (82)
Pearse Doherty
Question:82. Deputy Pearse Doherty asked the Minister for Finance in relation to the home renovation incentive scheme in budget 2014, if a claim to qualify may be made based on the aggregate value of works over a year or less. [47912/13]
View answerWritten answers
As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit. The threshold can be reached by carrying out several jobs; it does not have to be as a result of a single job. Therefore, any qualifying job undertaken can be included in order to reach the €5,000 threshold.
VAT Rate Application
Questions (83)
Brendan Griffin
Question:83. Deputy Brendan Griffin asked the Minister for Finance if he will extend the 9% VAT rate to tour guides in the private sector to allow them compete with Bus Éireann tour guides who enjoy this rate; and if he will make a statement on the matter. [47940/13]
View answerWritten answers
I am advised by the Revenue Commissioners that it is precluded from commenting on, or disclosing details about, a named taxpayer. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Primarily, it must be in agreement with the EU VAT Directive 2006/112/EC. Tour guide services which consist of the provision of information on cultural, historical and contemporary heritage to tourists at places of interest are currently liable to VAT at the rate of 13.5%, in accordance with the Article 118 of the VAT Directive. It is not possible to apply a rate of 9% to tour guide services as Article 118 of the Directive provides that only a rate of 12% or higher may apply to such services.
The transport of passengers including tourists and their accompanying baggage qualify for VAT exemption under paragraph 14(3) of Schedule 1 to the VAT Consolidation Act 2010 and Article 371 of the VAT Directive. In certain circumstances, tour guide services may be ancillary to the transport of passengers and in other circumstances they may be distinct supplies of transport and tour guide services. The circumstances of each case would require examination to determine the correct VAT treatment.
Household Charge Collection
Questions (84)
Patrick O'Donovan
Question:84. Deputy Patrick O'Donovan asked the Minister for Finance the way a person (details supplied) in County Wexford may pay the outstanding household charge; and if he will make a statement on the matter. [47951/13]
View answerWritten answers
I am advised by Revenue that where the Household Charge for 2012 has not been paid or has only been part paid by 1 July 2013, then the outstanding amount including late payment penalties is increased to €200 and converted to Local Property Tax (LPT). In the specific case to which the Deputy refers, if the person was the owner of the property on the ‘ownership date’ of 1 May 2013 then she is liable for the €200 ‘converted’ charge and the liability is payable in full before the sale of the property can be completed.
The person can pay the outstanding liability by logging onto the LPT website at www.revenue.ie and following the payment instructions. Alternatively, she can send her payment directly to the Office of the Collector-General, LPT Branch, P.O. Box 1, Limerick. If she chooses to pay by cheque, she should include a covering note and clearly mark her Property ID number on the cheque.
Comprehensive guidance relating to LPT in the context of the sale or transfer of ownership of residential property has been provided to solicitors and is available on the LPT website at http://www.revenue.ie/en/tax/lpt/sale-transfer-property.html.
Living City Initiative
Questions (85)
Gerald Nash
Question:85. Deputy Gerald Nash asked the Minister for Finance if he will consider designating Drogheda, County Louth under the terms of the living city initiative; and if he will make a statement on the matter. [48009/13]
View answerWritten answers
The Living City Initiative is a pilot scheme, designed to encourage people back to the centre of Irish cities to live in historic buildings and encourage the regeneration of the retail heartland of central business districts. The initial pilot will be a targeted scheme to enable an assessment to be made as to the effectiveness of the scheme.
The Living City Initiative was announced as part of Finance Bill 2013. I stated at the time that the proposed scheme would be subject to a full ex-ante cost benefit analysis and would require State Aid approval from the European Commission. The cost benefit analysis was recently presented to my Department and has been published on the Department's website. On foot of the recommendations contained in this independent report, I made an announcement in my 2014 Budget Statement that I was proposing to extend the Initiative to include designated areas of four other cities. I do not intend to extend the scope of the Initiative beyond the six cities identified.
Following the receipt of the report, an application for EU State Aid approval will be submitted shortly to the European Commission and the evidence presented in the cost benefit analysis will form part of this application. The Initiative can not be commenced until EU State Aid approval is received.
Tax Credits
Questions (86)
Gerald Nash
Question:86. Deputy Gerald Nash asked the Minister for Finance if he will consider including in the Finance (No. 2) Bill 2013 requirements around improvements to energy efficiency under the tax rebate on home improvements scheme; and if he will make a statement on the matter. [48010/13]
View answerWritten answers
As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.
There is no specific requirement to improve the energy efficiency of the residence, but works which are grant-aided by the SEAI under the Better Energy Homes Scheme will also qualify for the incentive. Three times the amount of the grant will be deducted and any additional expenditure will attract the tax credit of 13.5%.
Tax Exemptions
Questions (87)
Gerald Nash
Question:87. Deputy Gerald Nash asked the Minister for Finance if he will bring the eligibility criteria for the relief scheme for the long-term unemployed, 15 months in receipt of certain social welfare payments, in line with the eligibility criteria for the back to work enterprise allowance 12 months in receipt of certain social welfare payments; and if he will make a statement on the matter. [48011/13]
View answerWritten answers
As the Deputy is aware, I announced the Start Your Own Business incentive in the recent Budget. This incentive is an exemption from Income Tax for individuals who have been long-term unemployed and start a new, un-incorporated business. An exemption from Income Tax will be provided on profits up to a maximum of €40,000 for the first two years of trading. However, USC and PRSI will continue to be payable. If a loss is incurred then loss relief will be available in the normal manner.
The business must be un-incorporated i.e., the individual must be a sole trader. In order to claim this relief, the individual must file a tax return notwithstanding that there may be no liability to tax. In the Budget speech I stated that the individual must have been unemployed for a period of at least 15 months prior to establishing the business. However, as I stated in my opening speech at Second Stage of the Bill, I have decided to reduce the qualifying period of unemployment to 12 months. This will be dealt with in a Committee Stage amendment.
Tax Credits
Questions (88)
Mary Mitchell O'Connor
Question:88. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will consider reversing the decision to abolish the one-parent family tax credit to the non-resident parent and reform this tax credit to non-resident parents; and if he will make a statement on the matter. [48014/13]
View answerWritten answers
As the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) 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 OPFTC 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 OPFTC. 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, as can happen with the OPFTC, 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. However, having listened carefully to the views expressed by colleagues and Deputies, I have asked my officials to explore how the credit could be used by another individual, where the primary carer chooses not to, or cannot, claim it and accordingly I will be bringing forward an amendment at Committee Stage.
Tax Credits
Questions (89)
Brendan Griffin
Question:89. Deputy Brendan Griffin asked the Minister for Finance if he will consider extending the income tax credit for the home renovation scheme announced in budget 2014 to persons in receipt of pensions; and if he will make a statement on the matter. [48016/13]
View answerWritten answers
As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.
As the relief is being made available by way of tax credit, only individuals who have a tax liability will be in a position to avail of the incentive. However, any pensioner who has an occupational pension and pays tax on that pension will be able to qualify. The credit is payable over two years in order that individuals who may pay small amounts of tax can avail of it. In addition, any unused credit may be carried forward to future years.
Tax Credits
Questions (90)
Richard Boyd Barrett
Question:90. Deputy Richard Boyd Barrett asked the Minister for Finance if he will explain the changes in tax credits in respect of a person (details supplied) in County Dublin. [48018/13]
View answerWritten answers
I am informed by the Revenue Commissioners that the person in question had been in receipt of the One Parent Family Tax Credit for a number of years. It subsequently came to Revenue’s attention that he had been residing with his partner for the years concerned. Consequently, the credit was withdrawn from the person concerned in accordance with section 462 (2)(c) of the Taxes Consolidation Act 1997, which stipulates that the credit does not apply for any year of assessment in the case of cohabitants.
Revenue Complaint and Review Procedures
Questions (91)
Richard Boyd Barrett
Question:91. Deputy Richard Boyd Barrett asked the Minister for Finance the course of action a person may take if they complain to the Revenue Commissioners about their treatment in a public office and if they are not satisfied with the response they get. [48019/13]
View answerWritten answers
The Revenue Commissioners devote a great deal of time and effort to providing a top quality service to customers. Their objective is to apply the law in a fair, consistent and sensible manner and to treat people in an even-handed way, presuming their honesty and giving them respect and courtesy. Where issues arise between a customer and Revenue the experience is that most can be resolved in the normal course of business by dealing with the Revenue officer handling the case and/or the supervisor. However, to deal with circumstances where the issue cannot be resolved in this way the Revenue Commissioners have put in place formal procedures - “Revenue Complaint and Review Procedures” (Leaflet CS4). These procedures provide customers with an open and transparent mechanism for making a complaint and for seeking a review if the customer is not satisfied with the response they receive to the complaint. Leaflet CS4 is available on the Revenue Commissioner’s website http://www.revenue.ie/en/about/custservice/cs4.pdf.
Tax Code
Questions (92)
Dara Murphy
Question:92. Deputy Dara Murphy asked the Minister for Finance if he will bring forward the pay and file return date to either the end of June or August going forward; and if he will make a statement on the matter. [48023/13]
View answerWritten answers
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, 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 closed on Friday last, 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.
Universal Social Charge Application
Questions (93)
Robert Troy
Question:93. Deputy Robert Troy asked the Minister for Finance the reason a person's rate of universal social charge has not been lowered despite requesting twice that the Revenue Commissioners review same. [48028/13]
View answerWritten answers
The standard rates of Universal Social Charge for 2013, for P.A.Y.E. workers are: 2% on the first €10,036 of income; 4% on the next €5,980; 7% on the balance. In the case of an individual with a medical card and income of €60,000 per annum or less, the Universal Social Charge rates for 2013 are: 2% on the first €10,036 of income; 4% on all income over that amount.
I advised by the Revenue Commissioners that the person in question has a medical card and is correctly paying Universal Social Charge at the rate of 2% on the first €10,036 and 4% on the balance of his income.
Property Taxation Exemptions
Questions (94)
Michael McGrath
Question:94. Deputy Michael McGrath asked the Minister for Finance if he will arrange for the Revenue Commissioners to cease deducting the local property tax from a person's wages (details supplied) in County Cork as this person qualifies for an exemption as a first-time buyer. [48030/13]
View answerWritten answers
I am advised by Revenue that, in the case to which the Deputy refers, the deduction from wages was not in respect of the person’s primary residence, which is exempt from Local Property Tax (LPT). The person in question was linked to a second property on the basis of records imported by Revenue from another Government agency database during the development of the Property Register. It is now evident that the person was registered with this agency to pay certain charges in relation to the second property but was not in fact the owner. It has since been confirmed that the property belongs to the person's parents and was duplicated on the Property Register.
I am further advised that the LPT Return which issued in March 2013 indicated to the person that he was a multiple property owner. Revenue received no contact from the person disputing the accuracy of his records and a compliance letter subsequently issued on 29 July 2013 in respect of the second property. The letter clearly requested that if he was not the liable owner that he immediately notify Revenue. The letter also advised that “deduction at source” would commence in the absence of a response. Revenue received no response from the person until 20 September 2013 when he telephoned to confirm that he did not own the property and that his parents were the liable persons. Unfortunately an instruction to deduct LPT from his salary had already issued to his employer.
On foot of the person's telephone contact, Revenue amended the Property Register and issued a revised instruction to his employer to cease deductions. The employer subsequently confirmed that deductions had ceased from 1 October. A refund of €50.50 is due to the person and I am assured that it will issue to him in the coming days. Finally, Revenue has acknowledged that the linkage of the second property to the person in question during the development of the Property Register was an error. However Revenue did communicate strongly during the initial stages of LPT that errors in the compilation of the Property Register were inevitable given the scale of the task. Revenue also clearly requested anybody who received incorrect information in regard to their properties to contact the LPT Helpline immediately to avoid unnecessary compliance interventions. Unfortunately in this instance the person delayed making contact and as a consequence compliance activity commenced.