Property Taxation Application

Questions (34, 38)

Terence Flanagan

Question:

34. Deputy Terence Flanagan asked the Minister for Finance if it is the buyer or seller who is responsible for payment of the property tax in cases where a house is being sold; and if he will make a statement on the matter. [50886/13]

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Eric J. Byrne

Question:

38. Deputy Eric Byrne asked the Minister for Finance the position regarding property tax in respect of a person (details supplied) in Dublin 6W. [50947/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 34 and 38 together.

In accordance with the Finance (Local Property Tax) Act 2012 (as amended), liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which was 1 May 2013 for 2013 and for subsequent years, 1 November in the preceding year. Section 119 of the Act sets out the dates for payment of the Local Property Tax and clarifies that while the LPT is due by reference to a liability date, it is not payable until a later date. Revenue recently wrote to property owners who paid their 2013 LPT by lump sum or by way of regular cash payments to ask these owners to confirm their method for paying their LPT liability for 2014.

For the year 2014, the liability date is 1 November 2013 and the tax is payable on or before 1 January 2014. Where a liable person sells their residential property between 2 November 2013 and 31 December 2013, provided that they owned the property on 1 November 2013, they will be liable to pay LPT on that property for 2014.

These dates have been in the public domain since December 2012 when the legislation was passed. Questions on the 1 November liability date have been raised and responded to on several occasions, including my reply to Question No. 110 on 27 March this year. In my replies to Questions Nos. 221 (49518/13) and 223 (49556/13) on 19 November 2013 I advised the House that having a liability date before the year commences is preferable as there is certainty about who the liable person is for the coming year, that person has a reasonable amount of time to make the necessary provisions and they have access to the widest possible range of options for paying the tax.

For a tax such as LPT to function properly, legislation must specify a liability date for the tax to have application for a particular year. Whatever date is prescribed, the question of liability when there is a change of ownership has to be managed, and I would expect that the LPT liability involved is likely to be factored in during negotiations between the parties on the sale price and the closing date of a particular contract.

I am advised that the Revenue website includes a dedicated page outlining what property owners are required to do for 2014 and this clearly states that whoever is the liable person for the property on 1 November 2013 will be responsible for paying the tax for 2014. In addition, Revenue spokespeople have also provided clarification on this point when taking part in national and local media interviews recently.

As there are a number of LPT issues to be considered when buying or selling a house, I am advised that detailed guidance on LPT issues arising in the context of the sale or transfer of a residential property was prepared by the Revenue Commissioners in consultation with the Law Society and is available since last August on the Revenue website at http://www.revenue.ie/en/tax/lpt/sale-transfer-property.html and on the Law Society’s website. Finally, I re-iterate that the liability date for 2014 of 1 November 2013 is settled and has been approved by the Oireachtas in passing the LPT legislation and I have no plans to change the law in question.

Brewery Licensing

Questions (35)

Dara Calleary

Question:

35. Deputy Dara Calleary asked the Minister for Finance the licensing regime, qualifying criteria and steps to be met in respect of a person wishing to set up a new licence for a craft brewery; and if he will make a statement on the matter. [50890/13]

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Written answers (Question to Finance)

I am informed by the Revenue Commissioners that a person wishing to set up a craft brewery must first obtain Revenue approval as an authorised manufacturer and warehouse keeper. In addition the Revenue Commissioners must also grant the person concerned a manufacturer’s licence. Such a person can apply to the National Excise Licence Office for this authorisation and licence. The current excise duty for a manufacturer’s licence is €500. The applicant is also required to hold a valid Tax Clearance Certificate. Detailed information regarding the requirements for this authorisation and licence is available on the Revenue website at www.revenue.ie. In particular relevant information is contained in the “Revenue's Guide to Excise Licences” document on this website.

Tax Code

Questions (36)

Dara Calleary

Question:

36. Deputy Dara Calleary asked the Minister for Finance the taxation being applied to microbreweries producing beer; the way his Department differentiates between a microbrewery and a micro-distillery in terms of taxation; and if he will make a statement on the matter. [50891/13]

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Written answers (Question to Finance)

Council Directive 92/83/EEC on excise duty for alcohol and alcoholic beverages provides that a reduced rate of excise duty may be applied for beer produced in microbreweries. The reduced rate shall not be set more than 50% below the standard national rate of excise duty for beer. Since 1 January 2005, Ireland applies a relief of 50% on Alcohol Products Tax in respect of qualifying beer produced in microbreweries located within the European Union. The Directive also permits the application of reduced rates of excise duty to spirits produced by small distilleries, where production amounts to not more than 10 hectolitres (1,000 litres) of pure alcohol per annum. However, there are no provisions currently under national legislation for this relief and, consequently, spirits produced in a micro distillery are subject to the standard rate of excise duty.

Property Taxation Administration

Question No. 38 answered with Question No. 34.

Questions (37)

Michael McGrath

Question:

37. Deputy Michael McGrath asked the Minister for Finance if he will arrange to amend the address details of a person (details supplied) in County Cork on the Revenue Commissioners' records in order that they can arrange to pay the local property tax; and if he will make a statement on the matter. [50893/13]

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Written answers (Question to Finance)

I am advised by the Revenue Commissioners that the address details of the person in question have now been amended. The person in question can pay their Local Property Tax online using the Property ID and PIN number issued by Revenue, as these relate to the correct property.

Question No. 38 answered with Question No. 34.

NAMA Operations

Questions (39)

Seán Ó Fearghaíl

Question:

39. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will consider the matters raised in correspondence (details supplied); if he will assist in securing the payment owed; and if he will make a statement on the matter. [50955/13]

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Written answers (Question to Finance)

As the Deputy will be aware NAMA’s role is generally that of a secured lender. Like any bank they own the debt while the debtor or appointed liquidator owns and controls the properties associated with that debt. Any attempt to influence NAMA on this matter, would contravene Section 221 of the NAMA Act, which makes it an offence to communicate with NAMA with the intention of influencing the making of a decision in relation to the performance of its functions. This being the case it would be inappropriate for me or my officials to intervene in a private legal matter. NAMA have set up info@nama.ie, for individuals to contact them directly on any issues. I can assure the Deputy that this address is actively monitored and is the best way for your constituent to engage in a dialogue directly with NAMA.

Central Bank of Ireland Expenditure

Questions (40)

Pearse Doherty

Question:

40. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded by the Central Bank to companies (details supplied) in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; and if he will provide a breakdown of the contracts by date, purpose and individual value. [50979/13]

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Written answers (Question to Finance)

I have been provided the following table by the Central Bank which details the total financial cost of contracts awarded by the Central Bank to the specified companies in each of the years 2008, 2009, 2010, 2011, 2012 and 2013. I have been informed by the Central Bank that, for commercial reasons, it can only provide the requested information on an aggregate basis. In relation to the total number of contracts awarded by the Central Bank to companies in this period, I have been informed by the Central Bank that this information could not be compiled in the time available. I have been informed by the Central Bank that the “Other” column includes procurements where tenders were not held due to exceptional circumstances (e.g. financial crisis related) or where compliance with procurement legislation cannot be verified in the time available. My officials have requested the outstanding material from the Central Bank and it will be forwarded to the Deputy as soon as it is available.

Year

Publicly Tendered

Compliant with Procurement Legislation, where no public tender required

Other

Total

2008

-

1,442,213

2,867,157

4,309,470

2009

10,125

631,734

4,836,096

5,477,955

2010

751,273

3,700,994

4,452,267

2011

2,873,151

6,293,186

871,644

10,037,981

2012

4,023,504

2,589,052

555,636

7,168,192

2013

4,880,625

2,041,170

2,283,682

9,205,477

11,787,405

13,748,728

15,115,209

40,651,342