Written Answers Nos. 93 - 99
93. Deputy Pádraig Mac Lochlainn asked the Minister for Finance his plans to split the regulator into two agencies, one that is responsible for prudential regulation and another responsible for financial conduct. [8501/14]
View answerA whole series of reforms have been introduced since the financial crisis to underpin a more effective and efficient financial regulatory regime. The Central Bank Reform Act 2010 gave effect to significant structural changes in the operation of financial regulation in Ireland. The Act created a single unitary body - the Central Bank of Ireland - responsible for both central banking and financial regulation. The new structure replaces the previous related entities, the Central Bank and the Financial Services Authority of Ireland and the Financial Regulator. The Central Bank Commission was established by the Central Bank Reform Act 2010 and is responsible for ensuring that the statutory functions of the Central Bank are properly discharged. The Central Bank is now organised into directorates which report to the Deputy Governor (Central Banking), the Deputy Governor (Financial Regulation) or the Chief Operations Officer. The Central Bank Reform Act commenced on 1 October 2010.
The Central Bank (Supervision and Enforcement) Act 2013 further strengthened the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions. The 2013 Act also provides the Central Bank with greater access to information and analysis and underpins the credible enforcement of Irish financial services legislation in line with international best practice.
In 2012, the Central Bank published its three-year Strategic Plan for the period 2013-2015 which sets out a strategy of assertive risk-based supervision, underpinned by a credible threat of enforcement, in order to deliver on its key strategic priorities over the coming years. The Central Bank intends that reform of its regulatory and supervisory framework will be deepened over the term of the plan to minimise future risks to financial stability and enhance consumer protection, while continuing to promote a better functioning financial sector.
I am satisfied that the reforms introduced in recent years have brought our regulatory system into line with international best practice. A number of further changes are being introduced as part of the wider EU reform agenda - which was advanced significantly under the Irish EU Presidency - and it will be necessary to review the need for future changes on an ongoing basis to take account of emerging best practice in regulation and to keep pace with developments in the modern financial services sector.
94. Deputy Barry Cowen asked the Minister for Finance further to acknowledgement in respect of a bond holder (details supplied) to instruct AIB Bank and its relevant engineering contractor to honour its commitment under the relevant legislation to complete outstanding works as agreed with Offaly County Council, the delay to date in this regard has led to safety concerns for residents and questions over the public liability should there be a claim against same; Offaly County Council has had numerous promises from AIB to carry out necessary works in the past 12 months; and if he, as a majority shareholder on behalf of the taxpayer will insist that this work is carried out forthwith. [8503/14]
View answerDue to reasons of client confidentiality, AIB is limited in what can be disclosed in respect of individual cases. In all cases AIB is committed to supporting its cooperative clients in the appropriate remediation of Unfinished Housing Developments.
However AIB has informed me that its representatives are in dialogue with Offaly County Council in respect of bond works. Engagement has taken place between AIB's engineer and the local authority planning officials to jointly determine the precise schedules of work that require completion. A joint site inspection of the subject site with Offaly County Council and AIB's engineer was carried out on the 4th September 2013 where a number of requests were made by Council Officials and acknowledged by the engineer. Since that time costings have been finalised in respect of the Bond works and other works outside the remit of the Bond.
Without the consent of our Borrowers AIB is curtailed from entering any site to directly remediate the Bond works. In these cases AIB continues to exert pressure in accordance with the Unfinished Housing Code of Conduct for developer cooperation.
95. Deputy Mary Mitchell O'Connor asked the Minister for Finance his views in regard to section 97(2)(b) of the Taxes Consolidation Act, local property tax on private rental properties is a rate levied by a local authority it was officially identified as a charge for local services and payable to a body on behalf of local authorities, and/or a management expense it is clearly an expense incurred in operating a private rental business; and if he will make a statement on the matter. [8517/14]
View answerI am informed by the Revenue Commissioners that the various types of expenses that can be deducted by a landlord in calculating taxable rental income are specified in section 97 of the Taxes Consolidation Act 1997 and that expenses are not deductible unless they are specifically authorised. In that regard, subsection (2)(b) of that section provides for a deduction in respect of any rate levied by a local authority while subsection 2(d) provides for a deduction for the cost of management of a premises.
Local Property Tax (LPT) is not such a rate and nor does it constitute a cost or expense of management. Rather, it is a tax arising from ownership of a property that is payable regardless of whether the property is let or not.
As indicated in replies to previous Parliamentary Questions, I have accepted in principle the recommendation in the Thornhill report that LPT should be a deductible expense in calculating a landlord's taxable rental income and that this deduction be phased in over a number of years with the start date being determined by the economic and budgetary situation. However, the manner and timing of this change has not yet been considered and will require a change to section 97 of the TCA 1997.
96. Deputy Brendan Griffin asked the Minister for Finance if his Department has carried out security sweeps of its own offices to ensure that no bugging or covert surveillance has or is taking place; and if he will make a statement on the matter. [8532/14]
View answerMy Department is aware of the importance of maintaining security given the commercially sensitive meetings held in the Department and the sensitive information held by the Department. In the interests of security, key offices and meeting rooms within my Department have been swept for monitoring devices from time to time. No concerns have been raised on the basis of these sweeps.
97. Deputy Jerry Buttimer asked the Minister for Finance regarding local property tax, at what stage of construction does a residential property become liable for local property tax ; is a property that has all external walls built, roof completed, windows installed but internal fit out has not been completed liable for LPT; and if he will make a statement on the matter. [8547/14]
View answerFor Local Property Tax (LPT) purposes a residential property is defined in the legislation as any building or structure or part of a building which is used as, or is suitable for use as, a dwelling.
I am advised by the Revenue Commissioners that as LPT is a self-assessed tax it is a matter for the property owner to determine if the property is suitable for use as a dwelling. If the property owner determines that the property is not suitable for use as a dwelling he or she may advise Revenue that the property is not a liable property for LPT purposes. Revenue may seek evidence from the property owner to support this claim.
98. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on an income tax exemption (details supplied). [8548/14]
View answerThe Start Your Own Business (SYOB) scheme, introduced by the Finance (No. 2) Act 2013, provides for relief from Income Tax for long term unemployed individuals who start their own new unincorporated business. The scheme provides an exemption from Income Tax up to a maximum of €40,000 per annum for a period of two years to individuals who set up a qualifying business; having been unemployed for a period of at least 12 months prior to starting the business. The relief is available from the 25 October 2013 to 31 December 2016 and may be claimed on the return of income filed with the Revenue Commissioners.
The SYOB relief only applies to Income Tax and does not extend to USC and PRSI. USC and PRSI will therefore be payable on any profits earned in the new business.
Individuals qualify for this relief if:
they have been unemployed for twelve months or more, and
during that period they were in receipt of any of the following
- crediting contributions
- jobseeker's allowance
- jobseeker's benefit
- the one-parent family payment
- partial capacity payment.
Periods of time spent on certain training courses and schemes will be treated as part of a period of unemployment. If an individual was entitled to jobseeker's allowance or jobseeker's benefit immediately before starting on the training course or scheme, then any allowance paid for attending such a course will be treated as if it were jobseeker's allowance or jobseeker's benefit.
Examples of training courses and schemes would include FÁS training courses, Community Employment Schemes, Job Initiative and Back to Education Schemes. Full details of the scheme are available on the Revenue website at www.revenue.ie.
99. Deputy Barry Cowen asked the Minister for Finance the amount of money that has been generated by taxation of windfall gains from rezoning sales in total and on a county basis since the introduction of the 2009 National Asset Management Agency Act; and if he will make a statement on the matter. [8551/14]
View answerI assume the Deputy is referring to the windfall gains provisions in Sections 644AB and 649B Taxes Consolidation Act 1997, introduced by Section 240 National Asset Management Agency Act 2009 and amended by Section 25 Finance Act 2010, which apply an 80% rate of tax to the profits or gains from land disposals where those profits or gains are attributable to a relevant planning decision by a planning authority rather than to any value attributable to the work of the landowner.
I am informed by the Revenue Commissioners that on the basis of the available details from corporation tax and income tax returns for 2009, 2010 and 2011, the latest years for which the necessary tax returns data are available, there is no record of any such profits or gains having been returned. The Commissioners have indicated that details of capital gains can also be returned via a separate CG1 tax return. However, due to the format in which the CG1 tax returns data are captured in Revenue systems, it would require an extensive investigation of the Revenue Commissioners records to identify the relevant details, if any, in relation to this issue.
