Heather Humphreys
Question:51. Deputy Heather Humphreys asked the Minister for Finance if he will consider introducing a tax credit for child care costs; and if he will make a statement on the matter. [14641/14]
View answerTax Credits
Questions (51)
Written answers
Tax relief is not available to parents in respect of crèche fees or childcare costs. However, I can assure the Deputy that the Government acknowledges the continuing cost pressures on parents, particularly those with young children. In recognition of these cost pressures, a number of support measures are in place to ease the burden on working parents. These include the Community Childcare Subvention (CCS) programme, which funds community childcare services to enable them to charge reduced childcare fees to qualifying parents, the Childcare Education and Training Support (CETS) programme which provides free childcare places to qualifying FÁS and VEC trainees and the Early Childhood Care and Education (ECCE) programme which provides for a free pre-school year for children in the year before commencing primary school. Generous entitlements to paid and unpaid maternity leave as well as child benefit payments are also provided.
The Department of Social Protection provides financial support to families on low pay by way of the Family Income Supplement (FIS) and to one-parent families through the one-parent family payment. In addition, a Single Person Child Carer tax credit of €1650 is provided as well as an additional standard rate band of €4,000. This credit and band is payable to any single person with a child under 18 years of age or over 18 years of age if in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year. To claim the Single Person Child Carer Credit a claimant must not be married, in a civil partnership or cohabiting.
The Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base with very few exemptions.
In Budget 2012 I announced that those earning less than €10,036 would no longer be subject to the Universal Social Charge. This in itself has removed almost 330,000 individuals from the charge and is of particular benefit to the low paid. I have no plans to introduce any further tax reliefs for childcare costs.
As the Deputy will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. As the Deputy will also appreciate, I must be mindful of the public finances and the many demands on the Exchequer given the current budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
Tax Yield
Questions (52, 53)
Michael McGrath
Question:52. Deputy Michael McGrath asked the Minister for Finance the yield in 2013 from allowing persons early access to pension as provided for in budget 2013; and if he will make a statement on the matter. [14642/14]
View answerMichael McGrath
Question:53. Deputy Michael McGrath asked the Minister for Finance the revenue raised from the pension levy in 2013; and if he will make a statement on the matter. [14643/14]
View answerWritten answers
I propose to take Questions Nos. 52 and 53 together.
Finance Act 2013 provides members of occupational pension schemes with a three-year window of opportunity from 27 March 2013 during which they can opt to draw down, on a once off basis, up to 30% of the accumulated value of Additional Voluntary Contributions (AVCs). This provision includes additional voluntary contributions made to Personal Retirement Savings Accounts (PRSAs).
Administrators of AVC funds (including PRSA administrators) are required to provide, within 15 working days of the end of each quarter, commencing with the quarter ending on 30 June 2013, certain statistical information to Revenue in relation to AVC and PRSA pre-retirement transfers or encashments made during the quarter in question.
The tax deducted from aggregate value of transfers made for the quarters ending 30 June 2013, 30 September 2013 and 31 December 2013 was €25,763,157. There is no update available for 2014, as the statistical information for the quarter ended 31 March 2014 is not required to be submitted until April 2014.
In relation to the second question, I assume that the Deputy is referring to the stamp duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011. I am informed by the Revenue Commissioners that the estimated revenue raised from this levy in 2013 amounted to €535.3 million.
Property Tax Yield
Questions (54)
Michael McGrath
Question:54. Deputy Michael McGrath asked the Minister for Finance the revenue raised from the local property tax in 2013; the amount of same that related to early payment of liabilities for 2014; and if he will make a statement on the matter. [14644/14]
View answerWritten answers
I am informed by the Revenue Commissioners that by the end of December 2013 €318m had been transferred by Revenue to the Exchequer in respect of Local Property Tax (LPT). Of this amount, €242m was in respect of LPT for 2013 and €76m related to 2014 LPT. By the end of February 2014, a further €56.9m had been transferred to the Exchequer. The Commissioners have also confirmed that about €1.5m is currently being paid on a daily basis and the LPT compliance rate for 2014 is now at 85%. Compliance data in relation to LPT for 2013 and 2014 are available on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-stats-0214.pdf.
Tax Yield
Questions (55)
Michael McGrath
Question:55. Deputy Michael McGrath asked the Minister for Finance the yield from capital gains tax on an annual basis for each year from 2008 to 2013; the way this yield compares to the expected yield in each year when compared to his Department's published revenue profile; and if he will make a statement on the matter. [14645/14]
View answerWritten answers
The information sought by the Deputy in relation to expected yields and actual outturns is available on my Department's website in respect of Capital Gains Tax (CGT) and all the other main tax heads on the following link: http://databank.finance.gov.ie/.
The following Table sets out for the years 2008 to 2013 inclusive the CGT performance against the Budget day estimated forecast in respect of the relevant year.
|
Year |
Actual CGT Outturn €m |
CGT Target €m |
Excess/Shortfall €m |
Excess/Shortfall % |
|
2013 |
369 |
420 |
-51 |
-12.2% |
|
2012 |
414 |
355 |
+59 |
+16.8% |
|
2011 |
416 |
410 |
+6 |
+1.5% |
|
2010 |
347 |
340 |
+7 |
+2.0% |
|
2009 (s) |
542 |
625 |
-83 |
-13.3% |
|
2008 |
1,430 |
3,180 |
-1,750 |
-55.0% |
(s) = Supplementary Budget 2009.
It should be noted that figures are rounded to the nearest million. In addition, it should be noted that the targets are the official Budget day forecasts for CGT.
Capital taxes such as CGT and stamp duties do not have as consistent a relationship with economic growth when compared to income tax and VAT. Receipts from these taxes are affected by movements in the assets markets (property and shares). Activity in asset markets is prone to more pronounced movements in volumes/prices than in the wider economy and is therefore less predictable.
Excise Duties
Questions (56)
Bernard Durkan
Question:56. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which alternatives are likely to become available to those displaced from the tobacco industry; and if he will make a statement on the matter. [14674/14]
View answerWritten answers
I understand the Deputy is asking what alternative sources of tax would be available to me as Minister for Finance should the excise duty derived from the sale tobacco products reduce significantly or disappear altogether.
Excise receipts in respect of tobacco products tax amounted to some €1.1 billion in 2013. It is assumed that any reduction in the tax take from tobacco would occur over a period of time reflecting a reduction in the consumption of tobacco products. Tax receipts in general are monitored on an ongoing basis by my Department and the Revenue Commissioners. Where particular tax revenues are not meeting targets for any reason remedial action is taken either in respect of that individual tax or across all tax heads (including the exploration of new sources of revenue) to ensure that budgetary targets are achieved.
SOLAS Training and Education Programmes Expenditure
Questions (57)
John McGuinness
Question:57. Deputy John McGuinness asked the Minister for Education and Skills the reason full payments are not being made in respect of a person (details supplied) in County Kilkenny regarding their FÁS course at fresh start programme; if he will clarify the matter; and if he will make a statement on the matter. [14571/14]
View answerWritten answers
I understand that the individual in question is a part-time trainee on a SOLAS Local Training Initiative in Co. Kilkenny. SOLAS has confirmed that he is being paid the correct rate, as per the guidelines agreed with the Department of Social Protection.
Public Sector Allowances Review
Questions (58)
Arthur Spring
Question:58. Deputy Arthur Spring asked the Minister for Education and Skills the reason a person (details supplied) in County Kerry does not qualify for a masters degree allowance in view of the fact that the person has the necessary qualifications and considerable teaching practice; and if this decision will be reviewed. [14454/14]
View answerWritten answers
In 2012 a public service-wide review of allowances was carried out by the Department of Public Expenditure and Reform. As a result of the review, qualification allowances were abolished with effect from 1st February 2012. Department of Education and Skills Circular 0008/2013 outlines the effect of this decision on teachers. The Circular was agreed under the auspices of the Teachers' Conciliation Council, a body established in accordance with the terms of the Conciliation and Arbitration Scheme for Teachers. The Council is composed of representatives of the teacher representative bodies, school management, the Department of Education and Skills and Department of Public Expenditure and Reform, chaired by an official of the Labour Relations Commission.
In Paragraph 12 of Circular 0008/2013 an exception is made in the case 'where as at 5 December 2011, a teacher in employment on that date and eligible for receipt of a qualification allowance in respect of the post they held on that date, was actively undertaking a course of further study leading to an additional qualification, provided that the teacher does not cease to be a registered student on that course before its completion. Such individuals may apply to the Department/VEC as appropriate for a derogation from the general position within 3 months of the date of receipt of the award'. As the person concerned was not a teacher in employment on 5 December 2011 and not eligible for receipt of a qualification allowance in respect of any teaching post on that date they do not qualify for payment of an allowance in respect of the qualification related to the course being undertaken at that time.
Student Grant Scheme Eligibility
Questions (59)
Joe McHugh
Question:59. Deputy Joe McHugh asked the Minister for Education and Skills the position regarding a student grant in respect of a person (details supplied); and if he will make a statement on the matter. [14472/14]
View answerWritten answers
To qualify for the special rate of grant an applicant must meet the following conditions:
a. Reckonable income must not exceed €22,703.
b. On the 31st December of the relevant period the reckonable income must include an eligible long-term social welfare payment prescribed under the scheme.
In the case of a student whose parents are divorced, legally separated or it is established to the satisfaction of the awarding authority that they are separated, the reckonable income shall be that of the applicant and the parent with whom the applicant resides. The income of a stepparent who is not a legal guardian is not included in determining reckonable income. Where the reckonable income does not include a long-term social welfare payment, as listed in the Student Grant Scheme, the special rate of grant is not payable.
I have no plans at present to change the criteria in relation to persons whose income is considered in determining reckonable income for student grant purposes.