Written Answers Nos. 45 - 53
45. Deputy Bernard J. Durkan asked the Minister for Finance if and when a P45 might issue with any outstanding salary in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [3464/14]
View answerI have been advised by the Revenue Commissioners that they have no role in questions regarding to outstanding salary and a related P45, which are a matter between the employer and the employee in the first instance. However, Revenue understands that a Form P60 in respect of 2013 issued to the person concerned last week which should contain the necessary information relating to her pay and tax for 2013.
46. Deputy Tom Fleming asked the Minister for Finance if he will provide details of all consultancy firms engaged by his Department during 2013; if he will further provide details of all the relevant fees paid to these firms during this period; and if he will make a statement on the matter. [3210/14]
View answerThe information requested by the Deputy is set out in the following table.
|
Consultancy firms engaged in 2013 |
Details |
Fees paid |
|
Stratahree |
Website development |
€46,726.47 |
|
A & L Goodbody Solicitors |
Secretarial work |
€2,873.43 |
|
Arthur Cox |
Legal advice on restructuring of Irish banking system |
€1,728,406.71 |
|
Creative A.D Ltd |
Graphic design for Budget Day publications |
€7,472.25 |
|
Crowe Howarth |
Review of the R & D tax credit |
€36,850.80 |
|
Dr.Anil Shivdasani |
Expert witness for High Court case |
€67,360.02 |
|
Economic & Social Research Institute (ESRI) |
Medium Term Economic Strategy (MTES) - modelling support |
€35,362.50 |
|
Economic & Social Research Institute (ESRI) |
Medium Term Economic Strategy (MTES) - spatial development principles |
€4,623.57 |
|
Indecon |
Independent cost benefit analysis of Living City initiative |
€28,290.00 |
|
Matheson |
Legal advice regarding the acquisition and sale of Irish Life |
€739,854.17 |
|
Mercer (Ireland) Ltd |
Review of Remuneration Practices and Frameworks at the Covered Institutions report |
€146,370.00 |
|
National Asset Management Agency (NAMA) |
Advice to Ministerial Advisory group |
€381,494.46 |
|
PCMA economic Consulting |
Medium Term Economic Strategy (MTES) - modelling support |
€49,043.00 |
|
Red C Research & Marketing Ltd |
Professional services in relation to the SME lending survey |
€118,572.00 |
47. Deputy Michael McGrath asked the Minister for Finance the number of properties purchased under the National Asset Management Agency deferred payment initiative since its inception; the number of applications received; the costs incurred in operating the scheme; the reasons it is being discontinued; and if he will make a statement on the matter. [3227/14]
View answerI am advised by NAMA that, as per its public statement of 16 January 2014, which is available on its website, www.nama.ie, 224 homes with a combined value in excess of €44m that were included in the 80/20 Deferred Payment Initiative have been sold since launch. Of those properties sold to date, 50% or 112 have been sold to purchasers availing of the 80/20 Deferred Payment Initiative through one of the participating mortgage providers. NAMA does not, nor could it have, details relating to the number of applications made to the participating mortgage providers for mortgages under the Initiative. All such applications were made to the participating lenders and NAMA was not notified until the individual loan was approved by the relevant participating lender. NAMA advises that its decision to close the Initiative to new purchasers from 31 May 2014 was informed by feedback from buyers suggesting that the fear of falling prices is no longer a significant factor in their decisions to buy and accordingly were no longer seeking protection from price falls such as that offered by the 80/20 Initiative. The Initiative will have been operational for two years by May 2014. NAMA advises that it incurred costs of approximately €20,000 relating to the operation of the Initiative.
48. Deputy Pearse Doherty asked the Minister for Finance the number of financial institutions that are subject to the bank levy of budget 2014; the number that are not; if he will provide in tabular form a list of all financial institutions subject to the bank levy of budget 2014 and a table of those not subject to it; and in both tables if he will list the reasons each institution is or is not subject to the levy. [3280/14]
View answerI am informed by the Revenue Commissioners that there are 13 financial institutions subject to the bank levy introduced in Finance (No 2) Act 2013. A further 6 financial institutions are excluded from the levy because their deposit interest retention tax for 2011 is below the de minimis threshold of €100,000. The legislation governing the bank levy is contained in Section 126AA of the Stamp Duties Consolidation Act 1999 (inserted by Section 72 of Finance (No 2) Act 2013. It provides that a "relevant person" is chargeable with the bank levy. A "relevant person" is a person who in the year 2011 held a licence granted under section 9 of the Central Bank Act 1971 or who held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section; or was a building society within the meaning of the Building Societies Act 1989 or a society established in accordance with the law of any other Member State of the European Communities which corresponds to that Act; and was obliged pay Deposit Interest Retention Tax in excess of €100,000; and who, in 2013, is carrying on a trade or business in the State.
Where a relevant person succeeded to the business carried on by another relevant person, that successor is subject to the bank levy. The Revenue Commissioners inform me that they are not in a position to disclose the names of the financial institutions subject to the bank levy, as this is taxpayer information and is confidential in accordance with Section 851A of the Taxes Consolidation Act 1997.
49. Deputy Pearse Doherty asked the Minister for Finance if he will provide a table outlining the charges currently imposed by each bank operating in Ireland on current accounts, that is, quarterly fees, ATM withdrawal fees, debit card purchase fee and so on; and a table showing the same data as at 1 October 2013. [3281/14]
View answerI do not have access to the data requested. As the Deputy is aware, banks display in their branches a list of certain charges. Under Section 149 of the Consumer Credit Act, 1995 (as amended), credit Institutions and bureaux de change must notify the Central Bank of Ireland (the Central Bank) if they wish to introduce any new customer charge for providing a service or increase any existing customer charge for providing a service. The Central Bank assesses these charges based on four criteria set out in the legislation:
- The promotion of fair competition;
- The commercial justification submitted in respect of the proposal;
- The impact new charges or increases in existing charges will have on customers;
- Passing on costs to customers.
The Central Bank may either approve or reject an institution s application under Section 149. An institution may choose however, not to apply charges for which it already has approval for commercial or competitive reasons and then subsequently apply such charges at its own discretion. In this regard these concessions are not subject to a Section 149 notification i.e. an institution may choose to apply such internal account structures at its own discretion and so the Central Bank has no power in this area to approve/reject such revisions. The National Consumer Agency provides comparison tools for financial products including current accounts on its website http://www.consumerhelp.ie. I would strongly advise consumers to use this site if they are unhappy with their current account provider for any reason, including cost of fees. The Code of Conduct on the Switching of Current Accounts with Credit Institutions is available on the Central Bank's website at http://www.centralbank.ie/regulation/processes/consumer-protection-code/Pages/codes-of-conduct.aspx. This simplifies the switching of current accounts between Credit Institutions for the consumer.
50. Deputy Peadar Tóibín asked the Minister for Finance if he will provide the differential regarding diesel excise rebates North and South; the differential regarding diesel fuel VAT rebates North and South; if he will quantify the loss of trade by southern coach firms due to these differentials; and if he will to seek to equalise these rebates in order to create fair competition. [3284/14]
View answerThe diesel rebate scheme introduced by me under the Finance Act 2013 enables qualifying transport operators, including coach operators, to claim a repayment of part of the mineral oil tax paid on auto-diesel purchased in the State for use in qualifying vehicles in the course of business. There is no equivalent scheme in Northern Ireland. Under the rebate scheme, the amount of the repayment will vary in accordance with the average price at which auto-diesel is available for purchase in the State during a repayment period, subject to a maximum of 7.5 cents per litre. The rebate rate applicable for the current repayment period is 6.2 cents per litre.
The scheme is available to qualifying road transport operators established in the State and in the EU who are tax compliant and properly licensed and who purchase diesel in the State for use in a qualifying vehicle. Qualifying vehicles, in the case of passenger vehicles, are vehicles that conform to certain classifications under EU law and that are engaged in the lawful carriage of persons, including buses, coaches and certain minibuses.
The auto-diesel for rebate must have been purchased by the qualifying road transport operators either in bulk (a quantity of 2,000 litres or more), or by means of a fuel card approved by Revenue for that purpose. Purchases in bulk must be made from a licensed mineral oil trader, and delivered to a premises or place that is under the control of a qualifying road transport operator. These purchasing restrictions are necessary for the management and control of the repayment scheme by Revenue, to minimize the risk of abuse. In addition to the diesel rebate scheme, it should also be borne in mind that the rate of mineral oil tax on auto-diesel in Ireland is considerably lower than in Northern Ireland; €479.02 per 1,000 litres compared with €695.93 in Northern Ireland at the current exchange rate.
I am advised by the Revenue Commissioners that the transport of passengers and their accompanying baggage is exempt from VAT in Ireland under paragraph 14(3) of Schedule 1 to the VAT Consolidation Act 2010. In this respect, services provided by the coach and bus sector are exempt from VAT. This means that a person who provides a bus or coach service does not register for VAT and does not charge VAT on the supply of their services. This also includes the hiring of a bus or coach with a driver. Persons who are exempt from VAT cannot recover VAT incurred on goods and services, such as fuel, that are used for the purposes of the person's coach and bus service.
An Irish coach or bus service operator may be entitled to a VAT deduction when that operator engages in the transport outside the State of passengers and their accompanying baggage. This is defined as qualifying activities in section 59 of the Value-Added Tax Act 2010. For example, an Irish coach operator who incurs Irish VAT on diesel that is used in the transport of passengers in Northern Ireland will be entitled to a deduction for the portion of the VAT that relates to transport in Northern Ireland. A Northern Ireland coach operator who is engaged in the transport within this State of passengers and their accompanying baggage will be entitled to claim a deduction for UK VAT on diesel purchases, since transport services there are zero rated, but is not entitled to any refund of Irish VAT incurred on the purchase of diesel in the State.
I would point out that VAT law in Ireland and the UK must comply with the EU VAT Directive. As passenger transport was exempt in Ireland on 1 January 1978, it is possible under the VAT Directive to continue to apply that exemption. As passenger transport services were charged at the zero rate in the UK on 1 January 1991, the UK are entitled to continue to apply a zero rate to passenger transport services. It is not possible under EU law for Ireland to apply a zero rate to such services as we did not apply a zero rate to them in 1991. Given the lower mineral oil tax on auto-diesel in the State and the diesel rebate scheme, I am satisfied that operators in the State are not at a competitive disadvantage compared with operators based in Northern Ireland.
51. Deputy Michael McCarthy asked the Minister for Finance the reason off-street parking when provided by local authorities or county councils is taxable at the standard rate, while on-street parking charges are deemed exempt from VAT; and if he will make a statement on the matter. [3314/14]
View answerLocal authorities engaged in the provision of off-street parking are treated for VAT purposes in the same way as other commercial entities providing a similar service of parking. The service is liable to VAT at the 23% standard rate. However, the provision of on-street parking is considered an activity engaged in by a local authority in exercise of a particular right or power conferred on the local authority by an enactment. Since local authorities are the only bodies that have this right or power in relation to on-street parking, that activity or transaction is outside the scope of VAT, since there is no distortion of competition.
52. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if his attention has been drawn to the fact that under the terms of the new diesel rebate scheme, private forecourt fuel retailers are going to lose significant volumes of their sales as they are ineligible under the strict conditions of the scheme unless they have a fuel card system in place; the knock on effect on fuel distributor businesses; and the measures he intends to take to immediately address these anomalies. [3367/14]
View answer53. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if his attention has been drawn to the fact that those fully tax compliant and legitimate road transport operators, who do not purchase their diesel through a fuel card or through bulk deliveries over 2,000 litres, cannot avail of a diesel rebate under the new diesel rebate scheme; and the measures he intends to take to address this anomaly that will cost a large number of small existing businesses and start up businesses thousands of euro each year. [3368/14]
View answerI propose to take Questions Nos. 52 and 53 together.
I introduced this scheme under the Finance Act 2013 to provide for a repayment of part of the mineral oil tax paid on the purchase of auto-diesel used in the course of business by qualifying road haulage and bus operators. Provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased to address the risk of abuse of the scheme. In order to qualify for the repayment, the auto-diesel must be purchased by the qualifying road transport operator, either in bulk (a quantity over 2,000 litres), or by means of a fuel card approved by Revenue for that purpose. Purchases in bulk must be made from a licensed mineral oil trader, and delivered to a premises or place that is under the control of a qualifying road transport operator.
These provisions are necessary for the management and control of the repayment scheme by Revenue. Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that licensed mineral oil traders are required to make under Revenue's fuel supply chain controls. Revenue will only approve a fuel card where they are satisfied that the fuel card provider will supply them with the information required by Revenue about purchases of auto-diesel by means of that card. Revenue would not have access to this information for fuel purchased at the pump by means other than a fuel card. There are a number of fuel card providers who can supply suitable fuel card services to road transport operators and forecourt operators. The scheme was the subject of considerable discussion with the haulage sector and I believe the current arrangements strike the right balance between facilitating the legitimate haulage sector and preventing fraudulent claims. Revenue will monitor the scheme closely and will continue to engage with the sectors involved.
