Written Answers Nos. 43 - 53
43. Deputy Patrick Nulty asked the Minister for Finance the impact the reduction in staff numbers from 22 to four in recent years in the Dublin Assay Office has had on the work of the office; if he will conduct an assessment of the way this might be impacting on Revenue tax collection on precious metals; and if he will make a statement on the matter. [5947/14]
View answerI must inform the Deputy that the Assay Office is not the responsibility of either my Department or of the Revenue Commissioners.
44. Deputy Mary Lou McDonald asked the Minister for Finance the total number of Revenue staff working on tackling tax evasion and tax avoidance in 2013 and 2014. [5952/14]
View answerI am informed by the Office of the Revenue Commissioners that Revenue is an integrated tax and customs administration. Revenue currently has approximately 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. In addition, a considerable proportion of the balance of front-line staff is engaged in service delivery which is aimed at ensuring compliance.
The Office of the Revenue Commissioners is subject to the Employment Control Framework staffing reductions imposed since 2009. Revenue's overall staffing levels have reduced from a total of 6,581(FTE) at the end of 2008 to its current level of 5,740 (FTE). Notwithstanding this reduction, Revenue staff resources assigned to compliance activities has been maintained at around 2,000. This has been achieved by the on-going development of its digital services, increased use of mandatory electronic services and the on-going re-design of the various taxes and duties. I think it is also important to note that Revenue resources working in all aspects of work that might be considered non-frontline are aimed at ensuring maximum compliance, for example training, to ICT development, legislation development and interpretation and research and analytics and these resources and the work they carry out are an integral part of Revenue's response to non-compliance.
45. Deputy Mary Lou McDonald asked the Minister for Finance his Department's estimate of the total amount of revenue lost from tax avoidance in 2013 and projected to be lost in 2014. [5953/14]
View answerIt is assumed that the Deputy is referring to transactions that would be regarded as abusive tax avoidance transactions under the general anti avoidance rules (known as GAARs ) available to the Revenue Commissioners. Where transactions are entered into for the purposes of avoiding tax and are detected by the Revenue they are challenged by Revenue under the relevant anti avoidance rules. In the case of direct taxes, there is a general anti avoidance rule (GAAR) contained in section 811 of the Taxes Consolidation Act 1997 and, in the case of Value-Added Tax, there is an Abuse of Practice principle under EU law to counter avoidance transactions.
I am informed by the Revenue Commissioners that over the course of 2011, 2012 and 2013 some 77 transactions (36 in 2013) were challenged under section 811 as tax avoidance transactions that should be unwound so that the proper tax due was paid. The tax in dispute in these cases is circa €134.5 million. If Revenue s view of the transaction as a tax avoidance transaction is upheld, in the majority of cases, interest and a surcharge of 20% of the tax will become payable in addition to the tax in dispute. 73 of the 77 cases have appealed the Revenue s challenge on the basis that the transactions concerned are not tax avoidance transactions within the meaning of section 811. In addition, Judicial Review proceedings in the High Court have been initiated by 21 of the cases concerned challenging Revenue procedures in connection with the use of section 811.
It should be noted, that there are currently about 449 cases actively being pursued where Section 811 Notices of Opinions have issued and the tax at risk is about €200 million. Currently, some 6 VAT cases are being challenged by Revenue under the ECJ Abuse of Practice principle. These cases involve circa €32 million in VAT. All of these cases are at various stages of appeal in the courts up to and including the Supreme Court. In addition, Revenue is also active in countering tax avoidance transactions under specific tax provisions. There are currently 225 of these cases which are being dealt with in Revenue's Anti Avoidance Branch in Large Cases Division, where assessments have been made and appealed by the taxpayers. Cases, in excess of 700, are also being investigated but no assessments have been made as of yet. These cases are generally challenged on their merits and under specific sections of the Taxes Acts. It is difficult to put a figure on the tax amounts involved in these cases as some are at an early stage of being investigated at this point. These type of avoidance cases are also being tackled in Revenue districts around the country.
I know challenging tax avoidance transactions is a priority for the Revenue Commissioners as set out in their Annual Corporate Plan and current Statement of Strategy. I fully support them in this work and will move to legislate against aggressive tax avoidance schemes that the Revenue Commissioners identify and bring forward proposals to have such schemes shut down. In addition, the review of the tax appeal process currently under way may result in reform proposals on tax appeals that may assist in an earlier finalisation of avoidance cases. The Revenue Commissioners further inform me that they are not in a position to estimate the number of tax avoidance transactions that may be challenged in 2014 but they can confirm that the Anti Avoidance Branch in Large Cases Divisions, supported by a nationwide Anti Avoidance Network staffed by officials from each Revenue Region, will continue to progress ongoing investigations and prepare new cases.
46. Deputy Michael Healy-Rae asked the Minister for Finance the progress that has been made regarding the possibility of introducing a car swappage scheme in order to stimulate the motor industry, create employment and keep the sector strong and vibrant; and if he will make a statement on the matter. [6006/14]
View answerSIMI in its 2014 pre-Budget submissions called for the introduction of a "swappage scheme" to support the industry. The proposal was considered at the time but given the budgetary constraints was not proceeded with. It is open to the industry to bring forward such proposals for consideration in Budget 2015. However, in this context, the Deputy will be aware that car sales figures for January suggest that the industry is showing signs of recovery.
47. Deputy Anne Ferris asked the Minister for Finance the impact the retention of the 9% VAT rate has on the tourism sector in Wicklow; and if he will make a statement on the matter. [6034/14]
View answerStatistics in relation to the economic impact of the 9% reduced VAT rate on the tourism sector are not available on a county basis. However, evidence on a national basis can indicate local trends. In this respect, the most recent data available from the CSO of economic growth broken down by sector relates to the year 2012, and shows that there was a year-on-year growth in gross value added for the accommodation and food services sector, compared to 2011. Expenditure by overseas travellers to Ireland recorded an increase of 0.6% in 2012 compared with 2011. In addition, over the first three quarters of 2013 there was a 13% increase in expenditure when compared with the same period in 2012.
There is a clear impact in terms of employment in the accommodation and food service sector which has increased by over 16% between the period Q2 2011 to Q3 2013, an increase of over 18,000 jobs in seasonally-adjusted terms. In terms of trips to Ireland, the total number of trips made to Ireland was up by 7.2 per cent in 2013 when compared with 2012 and up 7.4 per cent compared to 2011.
48. Deputy Maureen O'Sullivan asked the Minister for Finance the reason the National Asset Management Agency continues to pay a €200,000 salary to a developer while its companies experience huge debts; the reason funding cannot then be made available to construct a national monument with a commemorative centre for Moore Street to honour the 1916 Easter Rising leaders; and if he will make a statement on the matter. [6046/14]
View answerAs the Deputy may be aware NAMA is precluded from commenting on the financial affairs of individual debtors. I am advised that properties at 14-17 Moore Street are protected and designated as a National Monument and works are subject to Ministerial Consent. On the 16 July 2013, the Minister for Arts, Heritage and the Gaeltacht, granted consent for specified works to be completed on the site. NAMA has approved funding for the completion of these works subject to planning permission.
49. Deputy Michael Healy-Rae asked the Minister for Finance the prospects of getting a write down in the country's debt or if he will continue to try to get a write down on the debt; and if he will make a statement on the matter. [6058/14]
View answerAs I have outlined in my replies to a number of previous Parliamentary Questions, the Euro-area Heads of State or Government (HoSG) agreed in June 2012 that "it is imperative to break the vicious circle between banks and sovereigns", and that when a Single Supervisory Mechanism, involving the ECB, is in place and operational, the European Stability Mechanism could recapitalize banks directly.
The Eurogroup meeting of euro area finance ministers on 20 June 2013 agreed on the main features of the European Stability Mechanism's Direct Recapitalisation Instrument or DRI. There is a specific provision included in those main features, which states that "The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement." Therefore, the agreement, that we were active in negotiating, keeps open the possibility to apply to the European Stability Mechanism for a retrospective direct recapitalisation of the Irish banks, should we wish to avail of it. The DRI will come into effect when the Single Supervisory Mechanism is in place and operational. This is not expected to take place until late 2014. The Eurogroup has agreed that there will be strict eligibility criteria as well as a clear pecking order for the ESM DRI, so any possible application for a DRI will be determined on its own merits within the rules established for the DRI. The overall framework agreed in summer 2013 builds upon the earlier Euro area Heads of State or Government agreement secured on the 29 of June 2012, and is an important step in the Eurozone's efforts in this regard.
I would also point to a number of other positive developments during the lifetime of this Government to date that will serve to alleviate our debt burden including the reduction of the interest rates on our EU programme borrowings, the extension of the maximum average maturities of our EFSF and EFSM loans by seven years and the replacement of the Promissory Notes issued to the Irish Bank Resolution Corporation (IBRC) with a series of longer term, non-amortising floating rate Government bonds.
Finally, we will ensure that our case for retrospective direct recapitalisation is made at all levels as appropriate. I remain confident that the commitment made by the Euro-area Heads of State or Government in June 2012 to break the vicious circle between banks and sovereigns will be respected. It is very clear that there is still a lot of negotiation to be done on this aspect of the facility but the agreement now in place keeps the possibility to apply to the ESM for a retrospective direct recapitalisation of the Irish banks open for us, should we wish to avail of it.
50. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if he will provide in tabular form the total sum of local property tax collected in the year 2013; and if he will provide a county breakdown of same. [6072/14]
View answerI am informed by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT) for 2013 are available broken down by city and county councils nationally and the most up to date figures are published on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-stats-11-2013.pdf. The Commissioners have confirmed that by the end of December 2013 €318m had been transferred by Revenue to the Exchequer in respect of LPT. Of this amount, €242m was in respect of LPT for 2013 and €76m relates to 2014 LPT. The Commissioners will publish 2013 year-end compliance data and also preliminary data in relation to 2014 shortly.
51. Deputy Michael McCarthy asked the Minister for Finance if he will provide an update in relation to an application for the treatment abroad scheme in respect of a person (details supplied) in County Cork in view of the financial circumstances in this case and the fact that this person has been previously reimbursed for medical expenses accrued for treatment that was only available abroad; and if he will expedite a reply. [6074/14]
View answerI am advised by the Revenue Commissioners that, under Section 469 of the Taxes Consolidation Act 1997, tax relief is allowable on health expenses incurred outside of the State on the same basis as health expenses incurred within the State, subject to certain conditions, such as that the practitioner concerned is entitled to practice, and for expenses incurred prior to 2010, that the institution is on a list of approved institutions. The taxpayer submitted claims for tax relief on medical expenses in respect of 2007 (December 2011) and 2008 (December 2012). Part of these claims was for treatments received in another EU country.
As the clinic that the taxpayer attended was not on the list of approved institutions, these elements of the taxpayer's medical expenses claims were not allowed. I am further advised that the Revenue Commissioners are willing to review the file again as there is some lack of clarity in relation to the detailed composition of the costs incurred. The Revenue Commissioners, Cork will contact the taxpayer directly to discuss the matter further.
52. Deputy Bernard J. Durkan asked the Minister for Finance if and when a certificate of tax free allowances-tax credits will issue in respect of a person (details supplied) in County Carlow; and if he will make a statement on the matter. [6103/14]
View answerI am advised by the Revenue Commissioners that a Tax Credit Certificate was issued to the named individual on 16 December 2013.
53. Deputy Joe McHugh asked the Minister for Finance if he will provide a breakdown of revenue raised through VAT on coal over the past five years, in counties Donegal, Leitrim, Sligo, Cavan, Monaghan and Louth; and if he will make a statement on the matter. [6112/14]
View answerI am informed by the Revenue Commissioners that the details on the payment of VAT are not captured in such a manner as would provide a basis for compiling the breakdown of information sought by the Deputy, either by the specific commodity or by county.
