Written Answers Nos. 66 - 73
66. Deputy Michael McGrath asked the Minister for Finance the amount of money owing by businesses to the Revenue Commissioners under each tax heading; the age profile of the arrears; and the steps being taken by the Revenue Commissioners to engage with businesses currently struggling to meet their tax liabilities. [54554/13]
View answerFirstly, the Deputy will be aware that the debt collection environment continues to be very challenging for Revenue given the ongoing difficult financial environment. In that regard I am assured that Revenue is very conscious of the challenges that exist for some businesses in meeting their tax obligations in a timely manner. Its debt collection caseworkers will always seek to work proactively with taxpayers and viable businesses that engage positively to agree mutually satisfactory arrangements to overcome temporary cashflow difficulties in preference to deploying enforcement options. I am informed that the total outstanding tax debt at 31 March 2013, the latest date for which published data is available, amounted to €2,006m. An aged analysis of this debt figure is included in the following table.
However the ‘debt available for collection’ portion of the total debt, which excludes both debt under appeal to the Appeal Commissioners and insolvent debt was €1,180m at 31 March 2013. This figure, which is a more accurate reflection of the debt available to Revenue to manage through its debt management programmes was €137m or 10% less than the same period in 2012. Of the €1,180 million ‘debt available for collection’ figure at 31 March 2013, €476m was under active enforcement and a further €124m was the subject of phased payment arrangements.
I am assured by Revenue that, notwithstanding the continuing very difficult environment, achieving further reductions in collectible debt is a key strategic objective. I am satisfied that the continuing trend in decreasing levels of ‘debt available for collection’ over the last couple of years is encouraging and clearly demonstrates the success of Revenue’s current approach to debt management.
Age Analysis of Total Debt by Year of Assessment as at 31/03/2013
|
Year |
IT |
CT |
CGT |
CAT |
PAYE |
PRSI |
VAT |
RCT |
E LEVY |
ATT |
DIRT |
Total |
% |
|
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
||
|
2012 |
5 |
72 |
0 |
12 |
69 |
61 |
69 |
3 |
1 |
0 |
0 |
291 |
14.5% |
|
2011 |
96 |
18 |
6 |
4 |
31 |
27 |
73 |
2 |
2 |
0 |
0 |
260 |
13.0% |
|
2010 |
57 |
20 |
4 |
2 |
16 |
22 |
64 |
2 |
0 |
0 |
0 |
189 |
9.4% |
|
2009 |
52 |
13 |
5 |
3 |
18 |
18 |
62 |
3 |
0 |
0 |
0 |
173 |
8.6% |
|
2008 |
74 |
18 |
12 |
4 |
10 |
13 |
60 |
5 |
11 |
0 |
0 |
208 |
10.3% |
|
2007 |
107 |
45 |
38 |
1 |
5 |
6 |
32 |
4 |
8 |
0 |
0 |
247 |
12.3% |
|
2006 |
52 |
26 |
38 |
1 |
5 |
4 |
24 |
4 |
8 |
0 |
0 |
162 |
8.1% |
|
2005 |
39 |
14 |
28 |
0 |
6 |
2 |
15 |
3 |
10 |
0 |
0 |
116 |
5.8% |
|
2004 |
36 |
6 |
10 |
0 |
2 |
1 |
16 |
1 |
0 |
0 |
0 |
73 |
3.6% |
|
2003 |
21 |
0 |
12 |
0 |
2 |
1 |
18 |
0 |
0 |
0 |
0 |
55 |
2.7% |
|
2002 |
19 |
3 |
26 |
1 |
1 |
1 |
11 |
-1 |
0 |
0 |
0 |
61 |
3.1% |
|
to 2001 |
89 |
5 |
81 |
0 |
2 |
2 |
-10 |
1 |
0 |
0 |
0 |
171 |
8.5% |
|
Total |
647 |
241 |
261 |
30 |
166 |
159 |
434 |
27 |
41 |
1 |
0 |
2,006 |
100.0% |
Age Analysis of Debt Available for Collection by Year of Assessment as at 31/03/2013
|
Year |
IT |
CT |
CGT |
CAT |
PAYE |
PRSI |
VAT |
RCT |
E LEVY |
ATT |
DIRT |
Total |
% |
|
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
€M |
||
|
2012 |
5 |
71 |
0 |
11 |
66 |
58 |
61 |
3 |
1 |
0 |
0 |
277 |
23.5% |
|
2011 |
95 |
10 |
5 |
3 |
27 |
25 |
65 |
1 |
0 |
0 |
0 |
233 |
19.8% |
|
2010 |
49 |
2 |
3 |
2 |
12 |
20 |
53 |
2 |
0 |
0 |
0 |
144 |
12.2% |
|
2009 |
40 |
2 |
4 |
2 |
9 |
15 |
48 |
2 |
0 |
0 |
0 |
123 |
10.4% |
|
2008 |
39 |
8 |
10 |
2 |
8 |
12 |
47 |
4 |
0 |
0 |
0 |
131 |
11.1% |
|
2007 |
41 |
4 |
24 |
1 |
4 |
6 |
23 |
4 |
0 |
0 |
0 |
106 |
9.0% |
|
2006 |
21 |
1 |
18 |
1 |
2 |
3 |
13 |
3 |
0 |
0 |
0 |
62 |
5.2% |
|
2005 |
13 |
0 |
11 |
0 |
1 |
2 |
9 |
1 |
0 |
0 |
0 |
38 |
3.2% |
|
2004 |
8 |
0 |
4 |
0 |
1 |
1 |
8 |
0 |
0 |
0 |
0 |
24 |
2.0% |
|
2003 |
6 |
0 |
2 |
0 |
0 |
1 |
-6 |
-0 |
0 |
0 |
0 |
4 |
0.3% |
|
2002 |
8 |
0 |
2 |
1 |
0 |
0 |
2 |
-1 |
0 |
0 |
0 |
14 |
1.2% |
|
to 2001 |
32 |
1 |
3 |
0 |
2 |
2 |
-15 |
1 |
0 |
0 |
0 |
26 |
2.2% |
|
Total |
359 |
101 |
86 |
25 |
134 |
144 |
309 |
21 |
2 |
1 |
0 |
1,180 |
100.0% |
67. Deputy Michael McGrath asked the Minister for Finance the number of persons who have to date availed of the special assignee relief programme; the number of employers whose employees have availed of the programme; the amount of tax foregone as a result of the tax relief granted; the number of employees who have had education fees paid by their employer on a tax free basis under the programme; the number of jobs he believes may have been created under the programme; and if he will make a statement on the matter. [54555/13]
View answerSection 14 of Finance Act 2012 introduced the Special Assignee Relief Programme (SARP) which is designed to reduce the cost to employers of assigning key individuals in their companies from abroad to take up positions in the Irish based operations of their employer. Paragraph 10 of Section 14 provides that relevant employers must submit an annual return to the Revenue Commissioners detailing, inter alia, the number of employees and the amounts of exempt income claimed under the programme. The first year of the programme was 2012 and employer returns received to date for 2012 have provided the following results:
Numbers of employees availing of the scheme: 7
Numbers of employers with employees availing: 7
Amount of tax forgone: €60,600 (tax free income of 147,817 by 41% for 7 individuals only)
Numbers of employees for whom education fees were paid: none
Amount of education fees paid: € nil
Number of jobs created: 5
The 7 individuals qualifying for the relief received an aggregate total tax-free remuneration of €147,817 and the amount of tax forgone is estimated assuming the top rate of income tax rate of 41%.
Following a review of SARP claims it was identified that 3 claims did not satisfy the eligibility criteria and the relief was found to be not appropriate for 2012. The statistics have, therefore, been updated to exclude these claims, and this accounts for the decrease in some of the figures that were provided with previous information. More limited details of further claims were also provided as follows in the Form 11 tax returns for 2012 filed under the self-assessment system in October/November of 2013.
Numbers of employees availing of the scheme: 8
Estimated amount of tax forgone: €63,600 (rounded to nearest €100), on the basis of tax free income of €154,720 at an assumed tax rate of 41%. Other information such as numbers of employers associated with employees availing of the scheme, numbers of employees for whom education fees were paid and amount of education fees paid is not required to be provided by taxpayers in the Form 11 tax return and is therefore not available.
68. Deputy Michael McGrath asked the Minister for Finance if he will provide a detailed update on the special liquidation of Irish Bank Resolution Corporation including the steps that have been taken to date by the special liquidator; the position regarding the transfer of loans from IBRC to the National Asset Management Agency; if any discount will be applied to the loans in their transfer to NAMA; and if he will make a statement on the matter. [54556/13]
View answerThe Special Liquidators are continuing the orderly and efficient wind-down of IBRC in accordance with the provisions of the IBRC Act 2013 and instructions that have been provided to the Special Liquidators by me under the IBRC Act 2013. I am advised that the Special Liquidators will comply with the timelines, namely that the valuation of IBRC’s loan assets be completed by 30 November 2013 and that the sale of IBRC assets be completed by 31 December 2013 or as soon as practicable thereafter.
The Special Liquidators have advised me that the valuation of the IBRC loan assets was completed by 30 November 2013. In arriving at the valuation of an IBRC loan asset, the independent advisors were advised to apply a discount rate of 4.5% in determining the value of future cash flows of the asset. Further, a discount of 2.32% will be applied across all loan asset valuations to take into account security and title issues associated with loan assets, to arrive at the Valuation Price. There is an obligation on the Special Liquidators to ensure that the assets of IBRC are sold at a price that is equal to or in excess of the independent valuations that have been obtained. Should a bid not be received that is in excess of the independent valuation obtained, the loan asset will be acquired by NAMA. No further discount will be applied to the loan asset in its transfer to NAMA.
The sales process plan and timeline has been developed following professional advice and in light of requirements of a robust and credible sales process. The Special Liquidators have also corresponded with all IBRC borrowers providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Consideration was given to Borrower representations and the Special Liquidators are in the process of responding to these Borrower representations.
The IBRC loan books have been divided into portfolios and subsequently subdivided into tranches depending on the professional advice obtained for ensuring that the maximum value is obtained for the sale of the Loan Assets. The sales process is currently underway across all portfolios/tranches and the Special Liquidators confirm that the sale of the IBRC assets will be completed by 31 December 2013 or as soon as practicable thereafter.
Last week we witnessed the successful conclusion of the bidding phase for the first portfolio of assets brought to the market by the Special Liquidators. Binding bids for the Evergreen portfolio consisting primarily of Irish corporate loans with a par value of c. €2.5 billion were received on Friday 6th December and the Special Liquidators expect that c.84% of the portfolio (by par value) will be sold to third parties at prices in excess of the independent valuations. The sales processes for the remaining portfolios in IBRC are on-going and are expected to be concluded in early 2014.
69. Deputy Michael McGrath asked the Minister for Finance the number of persons who have to date availed of the foreign earnings deduction; the countries where persons availing of the deduction have worked; the number of employers whose employees have availed of the deduction; the amount of tax foregone as a result of the tax relief granted; if he intends to add any further countries to the list of qualifying countries; and if he will make a statement on the matter. [54557/13]
View answerSection 12 of Finance Act 2012 provided for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014. The first year of the programme was 2012 and the relevant details of tax claims received to date from PAYE employees for that year are as follows:
Numbers of employees availing of the scheme: 25
Relevant Countries: China, India, Russia, South Africa and Brazil.
Number of employers associated with employees availing of the scheme: 21
Amount of tax forgone: €120,400 (rounded to nearest €100).
Details of further claims were also provided as follows in the Form 11 tax returns for 2012 filed under the self-assessment system in October/November of 2013:
Numbers of employees availing of the scheme: 51
Relevant Countries: China, India, Russia, South Africa and Brazil.
Number of employers associated with employees availing of the scheme: not available
Estimated amount of tax forgone: €455,000 (rounded to nearest €100), on the basis of an assumed tax rate of 41%.
The deduction was extended in Finance Act 2013 to include related travel to Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana and the Democratic Republic of the Congo for the 2013 & 2014 tax years. Any further extension of the deduction for work related travel to other countries would be a matter for consideration as part of the annual Budget and Finance Bill process.
70. Deputy Michael McGrath asked the Minister for Finance if he will provide details across the different taxation headings of the amount of taxation the Revenue Commissioners have written off in 2012 and to date in 2013; and if he will make a statement on the matter. [54558/13]
View answerI am advised by Revenue that a total of € 287 million was written out as uncollectible in 2012, which was a decrease of €34 million (11%) over 2011. A total of €200 million (rounded) was written out as uncollectible for the period 1 January to 30 September 2013.
Revenue has not yet finalised the figures for October and November.
The following table sets out the amounts written out for the periods requested on a taxhead basis.
|
Taxes Written Out |
2012 |
2013 (Jan – Sep) |
|
TAX |
Amounts (€m) |
Amounts (€m) |
|
Income Tax |
32.2 |
20.75 |
|
Corporation Tax |
4.8 |
10.93 |
|
Capital Gains Tax |
16.34 |
9.17 |
|
Value Added Tax |
130.54 |
88.59 |
|
PAYE |
39.13 |
32.17 |
|
PRSI |
49.78 |
30.79 |
|
Relevant Contracts Tax |
14.15 |
7.16 |
|
TOTAL |
286.94 |
199.56 |
71. Deputy Michael McGrath asked the Minister for Finance the amount of penalties, fines and interest charges imposed by the Revenue Commissioners in 2012 and to date in 2013; if he will provide a breakdown by the type of tax; and if he will make a statement on the matter. [54559/13]
View answerI am advised by Revenue that the data requested by the Deputy is currently being compiled, but it has not been possible to finalise the reply in the time available. A reply will issue to the Deputy as soon as possible.
72. Deputy Michael McGrath asked the Minister for Finance the number of court cases that the National Asset Management Agency has taken or plans to take to secure reversal of asset transfers by NAMA debtors which the agency believes were designed to put assets beyond the reach of the agency; if he will provide a breakdown of the type of assets which have been returned to the agency thus far including cash, property and so on; and if he will make a statement on the matter. [54560/13]
View answerI am advised by NAMA that since inception it has obtained additional security for its loans with a total value in excess of €800 million. This has been achieved through the reversal of asset transfers, including reversals that resulted from court action initiated by NAMA, and through the acquisition of charges obtained over previously unencumbered assets. Further detail on this process is set out in NAMA’s Annual Report and Financial Statements for 2012, which is available on the Agency’s website, www.nama.ie. I am satisfied that €800m in additional security represents a significant further protection for the Irish taxpayer and underlines the determination with which NAMA has approached this area of its work.
73. Deputy Michael McGrath asked the Minister for Finance the amount of fees incurred by the National Asset Management Agency in respect of the appointment of receivers to NAMA debtors in each of the years in 2012 and to date in 2013; the number of receivers that have been appointed by NAMA for each of these years; and the number of different professional firms that have been appointed as receivers by the agency. [54561/13]
View answerNAMA advises that to the end-November 2013, a total of 350 Receiver appointments had been made. Since 2010, NAMA has selected 52 separate firms in respect of its 159 appointments and the Participating Institutions (PIs) have engaged 48 separate firms in respect of their 191 appointments. NAMA advises that receiver appointments include those made prior to the acquisition of the loans by NAMA. Receiver appointments by the PIs include appointments made since acquisition of the loans by NAMA which continued to be managed by the PIs. A breakdown for the years requested is provided as follows:
|
- |
Number of Appointments |
Total cost |
|
2012 |
63 |
€18.5m |
|
2013(to date) |
79 |
€21.3m |
