Michael Healy-Rae
Question:53. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the local property tax; and if he will make a statement on the matter. [48566/13]
View answerProperty Taxation Administration
Questions (53, 57)
Michael Healy-Rae
Question:57. Deputy Michael Healy-Rae asked the Minister for Finance further to Parliamentary Question No. 161 of 7 November 2013, his views on correspondence (details supplied) regarding the local property tax; and if he will make a statement on the matter. [48574/13]
View answerWritten answers
I propose to take Questions Nos. 53 and 57 together because they relate to the same queries.
I am advised by the Revenue Commissioners that the following is the position on the issues raised.
The Local Property Tax (LPT) was introduced as a half year charge for 2013, with 2014 being the first full year of the tax. The due dates for paying LPT are set out in legislation. The due date for paying the 2013 LPT was on or before 1 July 2013. The due date for payment of the liability for 2014 and future years is on or before 1 January.
The full year charge for LPT is 0.18% of the mid-point of the valuation band for each property, where the property is value is under €1 million. (For properties valued over €1 million, the rate is 0.18% on the first €1 million and 0.25% on the excess, with no banding applied.) In the case raised by the Deputy the full year charge for both properties is a total of €810, the charge on the first property being €585 and on the second being €225. The half-year charges were each rounded down to €292 and €112 respectively. The letter advised the person concerned that a detailed breakdown of the liability per property was available online through www.revenue.ie using the Property ID and PIN provided on the letter.
LPT is chargeable on residential properties in the State. In most cases the owner of the property is liable. In the context of a rented property, the landlord is liable where the property is let for a period of less than twenty years.
The LPT legislation provides a return date of 7 November for liable persons to advise Revenue of their payment option. The Deputy may be aware that Revenue has extended the paper filing deadline by one week to 14 November. The online filing date has been extended by Revenue to 27 November. These deadlines are to ensure there is sufficient time to set up direct debits or other phased payment arrangements in time to start in 1 January.
The person in question was issued with a letter that set out his liability for 2014 and requested him to confirm to Revenue his chosen payment method for 2014. This does not mean that he is required to pay his 2014 LPT liability before 1 January 2014 unless he chooses to do so. The only requirement is for him to confirm his payment method online by 27 November. As the person in question is a multiple property owner he is obliged to pay and file online, therefore his payment options are: - Spread payments evenly throughout 2014 by way of direct debit (direct debits commence on 15 January 2014);
- Spread payments evenly throughout 2014 by way of deduction from salary, pension or Government payment;
- Pay in full now by debit/credit card.
- Pay in full by single debit authority (like a cheque), which will mean the bank account will be debited by Revenue on 21 March 2014.
Should the person wish to continue paying his LPT liability using Single Debit Authority, he should access his online account via www.revenue.ie using his Property ID and PIN numbers and complete the mandate as instructed. I can confirm that if he uses the Single Debit Authority option his account will not be deducted until 21 March 2014, unless he specifies an earlier payment date.
Questions about how revenues from the LPT are used should be directed to my colleague, the Minister for the Environment, Community and Local Government.
Tax Credits
Questions (54)
Seán Kyne
Question:54. Deputy Seán Kyne asked the Minister for Finance if consideration will be given to retaining a shared but reduced one parent family tax credit to mitigate against hardship which may arise for responsible non-cohabiting parents, particularly fathers and which would be more in keeping with the desire of Government to afford recognition to all family types. [48570/13]
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 child care 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. However, I have no plans to retain a shared but reduced One-Parent Family Tax Credit.
Tax Reliefs Application
Questions (55)
Seán Kyne
Question:55. Deputy Seán Kyne asked the Minister for Finance if, notwithstanding the provisions of sections 472D and 766 of the Taxes Consolidation Act of 1997 and sections 13 and 21 of the Finance No. 2 Bill 2013, consideration will be given to the introduction of a more direct tax relief incentive by which the first portion of a reward paid to employees of companies based in Ireland for registering a patent for an innovation would be tax-free, as such a measure would reward creativity in the business sector and harness the job creation potential of innovations for this country. [48571/13]
View answerWritten answers
As the Deputy has noted, the main tax incentive for innovation in Ireland is the R&D Tax Credit which gives a company a tax credit of 25% for expenditure on qualifying R&D. As was highlighted in the Report of the Review of the R&D Tax Credit 2013, which is available on the tax policy website at http://taxpolicy.gov.ie/wp-content/uploads/2013/11/131015-FINAL-VERSION-FOR-WEB-Review-of-RD-Tax-Credit-2013_web.pdf, this is a very competitive regime by international standards and has been very successful at incentivising investment in R&D in Ireland and supporting employment in Ireland. The proposal from the Deputy seems similar to the Patent Income Relief scheme which was previously available in Ireland, and which was abolished in 2010. The decision to abolish this relief was made following consideration of a recommendation to this effect in the Report of the Commission on Taxation (2009). The Commission on Taxation was of the view that the exemption for patent income was not an effective measure in incentivising enterprises to engage in research and development activities in Ireland and that it had been used instead as a tax-efficient means of remunerating employees and directors.
The R&D Tax Credit regime provides a more direct and effective incentive for enterprises to innovate and invest in R&D activities. The scheme has been enhanced considerably in recent years to make it one of the most competitive of its kind anywhere in the world, and has been most successful in this regard, as was confirmed by the 2013 Review.
Further, the “key employee” element of the R&D Tax Credit was introduced in 2012 to allow the benefit of this tax credit to be transferred to an individual employee in certain circumstances, and may reward employees for innovation in the way suggested by the Deputy. This element of the regime is only in its early stages but is gathering momentum and is viewed very positively by innovative firms: according to our independent survey of R&D active firms, which was conducted as part of the 2013 Review, over 70% of firms surveyed are positively disposed to the key employee provision.
Finally, I would like to address the broader issue and to assure the Deputy that my Department is always looking at ways that the tax code may be used to incentivise innovation in Ireland. As was noted in the recent 2013 R&D Report, the responsibility for developing a policy environment that fosters innovation cuts across a number of Departments, including the Department of Jobs, Enterprise and Innovation, the Department of Public Expenditure and Reform as well as my own Department. As tax is only one method of incentivising innovation, this report has recommended that the relevant Departments work closely together to make sure that the policy outcomes of each different government support are aligned.
Question No. 56 answered with Question No. 48.
Question No. 57 answered with Question No. 53.
Courses Accreditation
Questions (58)
Charlie McConalogue
Question:58. Deputy Charlie McConalogue asked the Minister for Education and Skills the position regarding ongoing negotiations between Quality and Qualifications Ireland and a college (details supplied) in Dublin 14 regarding the accreditation of its courses; and if he will make a statement on the matter. [48513/13]
View answerWritten answers
As the Deputy will be aware, QQI was established in November 2012 through the amalgamation of the NQAI, HETAC and FETAC. Since its establishment QQI has been undertaking a comprehensive policy development programme, involving the publication of a number of policy papers and broad consultation with stakeholders. I am informed that representatives of the college concerned attended the consultation events organised by QQI. I also understand that the awarding body of the programmes offered by the college submitted comments to QQI. The process for access to initial validation of programmes leading to QQI awards opened in early October. The college referred to in the Deputy's question has not contacted QQI in that regard.