Written Answers Nos. 49-61
49. Deputy Terence Flanagan asked the Minister for Finance if he will provide a breakdown of the third party costs involved in a merger (details supplied); and if he will make a statement on the matter. [1822/14]
View answerI have been informed by the Central Bank that in order to facilitate Naas Credit Union’s consideration of a proposed merger with Newbridge Credit Union, the Central Bank agreed to cover the transaction adviser costs incurred by Naas Credit Union on a capped basis.
On 22 November 2013, the Central Bank paid €750,422 to cover the cost of transaction advisers incurred by Naas Credit Union in relation to the proposed merger. The €750,422 costs are split as follows:
- €224,993 for legal advisers
- €288,264 for accounting and financial advisers
- €237,165 for other advisers (comprising Property, Public Relations, Project Management, IT, HR and Business Consultants).
These costs were agreed by the Central Bank and paid for from the Central Bank’s own resources. These costs were not chargeable to the Credit Union Resolution Fund and there will not be scope for recoupment through levies by the Central Bank.
Naas Credit Union requested payment for a further €25,341 in adviser costs on 8 January 2014 (legal advisers €19,452 and other advisers €5,889) within the permitted cap. The Central Bank is currently reviewing whether or not these costs are in line with the cost recovery arrangements.
50. Deputy Niall Collins asked the Minister for Finance if he will detail, in tabular form, the total photography costs for his Department since coming to office inclusive of costs incurred from use of the ministerial allowance; the list of occasions for which photographers were booked; the photographers used; the breakdown of costs associated with each occasion that a photographer was used; if there is a policy regarding the booking of photographers within his Department; and if he will make a statement on the matter. [1851/14]
View answerIn response to the Deputy’s question the following table gives details of the costs of engaging photographers since march 2011. When booking photographers my Department follow public procurement guidelines.
Use of Photographer
|
Company used |
Details |
Cost € |
|
Maxwell Photography Ltd |
Brian Lenihan - photo required for Minster’s Conference - Engaged on 30th March 2011 |
€424.41 |
|
Maxwell Photography Ltd |
Signing of Taxation agreement with Germany – Minister Noonan & German Ambassador - Engaged on 31st March 2011 |
€400.21 |
|
Maxwell Photography Ltd |
Signing ceremony for Double Taxation Agreement with Uzbekistan - Minister of State Hayes & The Chairman of State Taxation Committee of Uzbekistan - Engaged July 2012 |
€147.60 |
|
Maxwell Photography Ltd |
Signing ceremony for Double Taxation Agreement with Switzerland – Minister of State Hayes & Swiss Ambassador- Engaged 26th January 2012 |
€285.05 |
51. Deputy Niall Collins asked the Minister for Finance if he will detail, in tabular form, the use of external public relations firms employed by his Department since coming to office; the list of uses of the external public relations firm; his internal Department policy regarding employing external groups; and if he will make a statement on the matter. [1866/14]
View answerI take it that the Deputy is referring solely to public relations services and not to advertising costs that would be incurred by my Department in the normal course of business, such as entries into telephone directories, the placing of advertisements in national newspapers, recruitment advertising, etc.
No such costs have been incurred in respect of my Department in the period since I came into office.
The Department’s policy regarding employing external groups is to follow the general public procurement rules and in particular the guidance as set out in the "Guidance Note on engaging Advertising, Public Relations and Creative Design Services" and the "Guidelines for the Engagement of Consultants and Other External Support by The Civil Service".
52. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the total number of deposit-savings accounts on which DIRT tax was paid in each year from 2010-2012; and if he will make a statement on the matter. [1894/14]
View answer53. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the average payment of DIRT tax per deposit-savings accounts in each year from 2010-2012; and if he will make a statement on the matter. [1895/14]
View answer54. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if he will provide in a tabular form the number of deposit-savings accounts yielding less than €50 in DIRT tax; the number yielding between €50 and €100; the number yielding between €101 and €200; the number yielding between €201 and €500; the number yielding between €501 and €1,000; the number yielding more than €1,000 in 2012; and if he will make a statement on the matter. [1896/14]
View answer55. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if he will provide in a tabular form a breakdown of the €580m raised from DIRT tax in 2012; the overall revenue raised from accounts yielding less than €50 in DIRT tax; the overall revenue from accounts yielding between €50 and €100; the overall revenue from accounts yielding between €101 and €200; the overall revenue from accounts yielding between €201 and €500; the overall revenue from accounts yielding between €501 and €1,000; the overall revenue from accounts yielding over €1,000 in 2012; and if he will make a statement on the matter. [1897/14]
View answer56. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the tax forgone as a result of the DIRT tax exemption scheme in 2010, 2011 and 2012; and if he will make a statement on the matter. [1898/14]
View answerI propose to take Questions Nos. 52 to 56, inclusive, together.
The amount of Deposit Interest Retention Tax (DIRT) collected by the State in the most recent tax year (2013) is €499.5 million approximately. I am advised by the Revenue Commissioners that DIRT on interest bearing deposits is returned on a four-times yearly basis by financial institutions: in April, July and October of the tax year in question and in the following January. Returns for each year are due by 15 January of the following year and the total value of DIRT due and paid is reported to Revenue on the January returns at institutional level. Sufficiently detailed figures are not captured in these returns to enable distributional information to be compiled by reference to deposit amounts, interest amounts or DIRT amounts.
Separately, under regulations, as provided for in Section 891B of the Taxes Consolidation Act 1997, certain financial institutions, such as banks and credit unions, are required to make automatic annual returns at account level electronically to Revenue. The primary purpose of this Section is to provide information for use in risk analysis by Revenue and therefore the requirement to report interest focuses on account holders in receipt of larger payments. The information under section 891B is provided where the total payment of interest is greater than €635 in a year, regardless of deduction of DIRT, and in all instances of a first interest payment irrespective of threshold for accounts opened on or after 1 January 2008. These returns include DIRT exempt accounts. Returns for 2010, 2011 and 2012 were due by the end of March 2011, 2012 and 2013 respectively.
The total number of interest bearing deposit accounts reported under the regulations for 2010, 2011 and 2012 is 1,494,663, 1,428, 648 and 1,100, 991 respectively. The total value of interest paid to these accounts for 2010, 2011 and 2012 is €2.67 billion, €2.37 billion and €2.01 billion respectively. Financial institutions reported 202,807, 188,915 and 170,085 such accounts as being exempt from DIRT for 2010, 2011 and 2012 respectively but data on the amount of DIRT forgone in respect of such accounts is not available.
I am also advised by the Revenue Commissioners that the information provided under the Section 891B regulations does not include information on the amounts of deposits or linking deposits with DIRT amounts. It is also important to note the information received under Section 891B is not limited to individuals but also includes interest payments on accounts held by corporations and other entities.
The Deputy may, however, be interested in a breakdown of the number of accounts for 2010, 2011 and 2012 by reference to ranges of interest amounts. A table with this information is as follows. It should be noted that financial institutions report each party to an account where the account is a Joint Account. This could mean that a joint account is included more than once (i.e., for each of the parties).
|
Range of Interest Reported (€) |
Number of Records Reported |
- |
- |
|
- |
2010 |
2011 |
2012 |
|
Up to 10,000 |
1,465,185 |
1,401,391 |
1,078,398 |
|
10,001 - 25,000 |
18,940 |
17,938 |
14,724 |
|
25,001 - 50,000 |
5,850 |
5,599 |
4,518 |
|
50,001 - 100,000 |
2,694 |
2,268 |
1,941 |
|
100,001 - 200,000 |
1,215 |
951 |
835 |
|
200,001 - 300,000 |
335 |
267 |
255 |
|
300,001 - 400,000 |
152 |
98 |
112 |
|
400,001 - 500,000 |
99 |
75 |
44 |
|
500,001 - 600,000 |
67 |
51 |
45 |
|
600,001 - 750,000 |
54 |
37 |
39 |
|
750,001 - 1,000,000 |
58 |
36 |
39 |
|
1,000,001 or greater |
124 |
80 |
63 |
57. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the number of applications received for the home renovation incentive scheme since 25 October 2013; the number of applications approved in the same period; and if he will make a statement on the matter. [1899/14]
View answerAs the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme came into operation on 25 October 2013 and will run until 31 December 2015. It 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 (inclusive of VAT). 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.
The scheme will be administered through Revenue s online systems. Contractors will be required to inform Revenue in advance of details of works to be carried out and will also be required to notify Revenue in relation to any payments received in respect of the works. Homeowners will be able to view the information provided to Revenue by the contractor through the Revenue electronic systems and will also claim the relief through those systems. It is anticipated that this system will 'go live' in early April 2014. Contractors will need to enter the details of works carried out within 28 of the electronic system becoming available.
Full details of the scheme are available on the Revenue website at http://www.revenue.ie/en/tax/it/reliefs/hri/index.html along with a newly produced Guide for Homeowners. Copies of the Guide are being distributed to all local Revenue Offices and Citizens Advice centres.
58. Deputy Terence Flanagan asked the Minister for Finance the reason a cheque book in the Irish language is not available from a bank (details supplied); and if he will make a statement on the matter. [1918/14]
View answerPermanent TSB has confirmed to me that it can provide cheque books in the Irish language and is happy to do so in the specific case referred to if the details of the individual customer (whose details were supplied) are provided to it. Permanent TSB has informed me that it regrets that due to the infrequency of requests for such a service some of its staff may be unaware of the availability of such a service. Permanent TSB informs me that it will now take action to ensure that this gap in its internal communications is addressed.
59. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 149 of 14 February 2013, the action that has been taken to close off this anomaly. [1945/14]
View answerIn my reply to the previous Parliamentary Question cited by the Deputy I explained the practical difficulties in putting a value on the use by hospital consultants of public health facilities for private practice. I also indicated that the Revenue Commissioners had this situation under active consideration.
I am advised by the Revenue Commissioners that the matter continues to be under review and the question of whether the circumstances referred to by the Deputy do indeed give rise to a benefit-in-kind charge that is capable of being applied has yet to be determined.
60. Deputy Brendan Griffin asked the Minister for Finance if the Revenue Commissioners has finalised guidelines on a potential VAT refund for member-owned golf clubs in view of the recent European Court of Justice decision on a club (details supplied); if so, the details of same; and if he will make a statement on the matter. [1964/14]
View answerI am advised by the Revenue Commissioners that the European Court of Justice issued its judgement in the Bridport & West Dorset Golf Club Ltd case, C-495/12, on 19 December 2013. The issue in dispute centred on Article 132(m) of the EU VAT Directive that provides exemption for the supply of certain services closely linked to sport or physical education by non-profit-making organisations to persons taking part in sport or physical education. The question before the ECJ was whether the supply of golf facilities by non-profit making organisations to non-members could also benefit from this exemption. The Court found that non-members could not be excluded from the exemption.
Irish VAT law must comply with the EU VAT Directive and Article 132(m) is transposed in Irish VAT legislation in paragraph 3(4) of Schedule 1 to the Value-Added Tax Consolidation Act 2010, which states that the provision by non-profit making organisations of facilities for participation in sporting or physical educational activities is exempt from VAT. This exemption means that while such non-profit making organisations do not charge VAT on their supplies they have no entitlement to a credit for VAT incurred on their inputs.
In Ireland, green fees charged by non-profit making organisations, such as member owned clubs, to visitors have been liable to VAT at 9% and such clubs have been claiming a VAT credit for inputs that relate to these visitor green fees. Revenue are currently examining the ECJ judgement and are identifying the implications, current and historic, in terms of VAT exemption and related non-allowable input credits. Revenue expects to issue guidelines for member-owned golf clubs outlining their position on the matter as soon as that examination is completed.
61. Deputy Clare Daly asked the Minister for Finance the number of those in receipt of the State pension who are having the property tax deducted; and the amount per week of the €1 million the Revenue Commissioners states it is receiving that is coming from the State pension payments. [1969/14]
View answerI am informed by the Revenue Commissioners that owners of more than 25,000 residential properties have opted to pay their Local Property Tax (LPT) for 2014 by way of deduction at source from the various Department of Social Protection payments within the LPT scheme and almost €216,000 has been collected to date in 2014, which is about €108,000 per week. The Commissioners expect to be in a position to publish data which shows a breakdown of this figure among the various Department of Social Protection schemes, including the State pension in due course.
I am advised that the deduction at source payment option has been implemented only on a voluntary basis, and there is ongoing dialogue between Revenue and the Department of Social Protection to ensure that it operates as smoothly as possible.
