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Tuesday, 8 Apr 2014

Written Answers Nos. 124 - 146

Property Tax Data

Questions (124)

Michael McGrath

Question:

124. Deputy Michael McGrath asked the Minister for Finance the number of persons who have been subject to each of the following sanctions in respect of the household charge for 2012: mandatory deduction at source from salary or occupational pension, surcharge on income tax, corporation tax or capital gains tax returns, referral to the sheriff for collection, referral to the Revenue Commissioners' solicitors for collection through the courts, attachment of financial institution accounts held by the defaulting taxpayer, offset of household charge on any refunds due to the defaulting taxpayer across any other taxes, refusal of tax clearance certification, interest penalty on late payments; and if he will make a statement on the matter. [16415/14]

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Written answers

I am advised by Revenue that with effect from 1 July 2013, Section 156 of the Finance (Local Property Tax) Act 2012 (as amended) converted all outstanding Household Charge (HHC) liabilities to Local Property Tax (LPT) and increased the outstanding charge to €200. Section 156 also made Revenue responsible for the collection of the outstanding arrears. 

In setting up LPT, Revenue received the HHC Register from the Local Government Management Agency (LGMA) and used it to form part of the building blocks of the LPT Register. As part of the matching process, Revenue cross-referenced both registers to identify a database of properties for which the HHC is still outstanding. However, it is accepted that the database may not be 100% accurate for a number of reasons, including:

- The LGMA Register captured the name of the person who paid the HHC rather than the owner of the property, therefore, for example, where a son or daughter paid the HHC on behalf of a parent and particularly where the address of the property was a 'non-unique' rural address, Revenue may not have been able to match the HHC payment to the right property.

- The legislative basis for both the HHC and LPT are different. For example, some properties that are liable for LPT were exempt from the HHC but the LGMA Register did not capture such exemption details in all cases. For that reason, Revenue could not identify every property that was exempt from HHC through the cross-referencing process.

Notwithstanding the above, Revenue has advised me that any property owner can look up the Revenue online system and see if the Register shows an outstanding HHC arrear in respect of their property. Given the difficulties in matching the records to 100% accuracy, I would strongly recommend anyone who has paid the HHC or who was exempt from the HHC to do this and if the €200 charge is on record, correct the information before Revenue starts its compliance programme.  Revenue has also confirmed to me that it is still in the process of dealing with the large amount of payments, correspondence and telephone queries received in respect of HHC in the period up to the extended 'compliance' deadline of 2 April 2014. This work will be completed in approximately two weeks at which point Revenue will begin its compliance campaign. I would strongly encourage anyone who owes the HHC to go online and pay the €200 before the compliance campaign begins.

  In regard to the compliance campaign, none of the actions listed in the Deputy's question have yet taken place in relation to the Household Charge.  Revenue has advised that because liable persons did not previously receive any correspondence from the LGMA in respect of amounts outstanding and because Revenue never initiates debt collection/enforcement activity without prior warning, the initial step will be to write to those people that have a HCC charge arrear on the Register. They will be advised of the liability and the steps they should take if they have already paid the amount indicated as due. They will also be advised on the steps to take if they were exempt from the HHC. For those who are taxed through the PAYE system they will also be advised that an instruction will issue to their employer or occupational pension provider to deduct the €200 charge from their wages/pension between May and December of this year. Recipients of the letter will then have a ten-day period to choose an alternative payment method to prevent the instruction issuing to their employer.

  For those whose only income is from the Department of Social Protection and who are likely to qualify for a deferral, they will be offered that opportunity. Revenue will also write to non-PAYE/DSP property owners to provide them with the opportunity to correct the record and to advise them that the charge will be subject to the debt collection and enforcement measures as outlined in the Deputy's question.  Finally, Revenue has assured me that any liable person in respect of HHC who left contact details with the LPT Helpline, or who wrote or emailed and has yet to receive a reply will be considered compliant and will not be subject to either debt collection/enforcement activity or interest charges, providing they meet their obligations immediately after their queries are resolved.

Tax Yield

Questions (125)

Michael McGrath

Question:

125. Deputy Michael McGrath asked the Minister for Finance the yield from stamp duty on credit and debit cards and yield from stamp duty on cheques in each year from 2008 to 2013; and if he will make a statement on the matter. [16416/14]

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Written answers

I am informed by the Revenue Commissioners that the net receipt from Stamp Duty on financial cards and cheques, including credit and debit cards, broken down by specified years, is as set out in the following table.  

Card Type

2008 - €m

2009 - €m

2010 - €m

2011 - €m

2012 - €m

2013 - €m

Credit and Debit

107.3

61.6

57.2

51.8

51.6

49.6

Debit

0.00

1.00

0.37

0.03

0.03

0.00

Combined (ATM/Debit)

27.4

12.9

12.6

15.7

15.5

17.3

ATM

10.6

2.7

1.7

1.5

1.0

1.0

Cheque

30.5

37.4

34.4

33.2

31.0

25.3

Total

175.8

115.6

106.3

102.3

99.2

93.3

 

In Budget 2008, the Stamp Duty on credit cards, debit cards, combined cards and ATM cards was reduced, while the Stamp Duty on cheques was increased. These changes partly account for the trends in yield from those sources in 2008 and 2009.  Combined (ATM/Debit) cards are liable to Stamp Duty at twice the rate of individual ATM or debit cards.

Tax Reliefs Cost

Questions (126)

Michael McGrath

Question:

126. Deputy Michael McGrath asked the Minister for Finance the tax expenditure associated with interest relief on buy-to-let properties in each year from 2008 to 2013, inclusive; and if he will make a statement on the matter. [16417/14]

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Written answers

I am informed by the Revenue Commissioners that landlords may deduct interest on money borrowed to purchase, improve or repair residential property from the gross rent when computing their rental profits for tax purposes on that property. Interest can only be deducted during the period in which the property is let.

Information on interest relief for rental property is based on all claims for such relief in Form 11 personal income tax returns filed by non-PAYE taxpayers. It should be noted that any corresponding data returned by PAYE taxpayers (in the income tax return Form 12) is not captured in the Revenue computer system at present. However, a PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete a Form 11 return. Interest relief associated with corporate landlords is not captured on the corporate tax CT1 return and is therefore not available.

I am also informed by the Commissioners that it is not possible from Revenue data to distinguish relief claimed by "buy to let" landlords. By this, I assume the Deputy means landlords that purchase property for rental purposes, often with a mortgage specifically granted for this purpose. Based on personal income tax Form 11 returns filed by non-PAYE taxpayers for 2008 to 2012, the latest year available, the estimated amount of tax foregone by allowing a deduction for interest on borrowings to be offset against rental income is as follows:

Year

Cost  €m (for both residential and commercial properties)

2008

1,210

2009

763

2010

672

2011

691

2012 (provisional)

575

The estimates in the table are based on assuming that tax relief was allowed at the top income tax rate of 41% and the figure provided could, therefore, be regarded as the maximum Exchequer cost in respect of those taxpayers. I am advised by the Revenue Commissioners that they are not in a position to provide data for 2013, as the tax returns for that year are not yet due. The figures for 2012 are subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.

Tax Yield

Questions (127)

Michael McGrath

Question:

127. Deputy Michael McGrath asked the Minister for Finance the yield from the high earners restriction in each year since it was introduced; and if he will make a statement on the matter. [16418/14]

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Written answers

The Revenue Commissioners prepare an annual report on the application of the high income individual's restriction.  The 2011 report[1] contains the following table which shows the annual yield for each year since the measure was introduced.

Year

Total Number of Individuals

Additional Tax €m

2011

1,143

63.60

2010

1,544

80.18

2009

452

38.86

2008

423

39.68

2007

439

39.99

When compared to the 2010 report, the total additional tax shows a reduction of €16.58 million. This decrease results from two main factors (i) the general economic downturn and (ii) the changes introduced in Finance Act 2011 i.e., the reduction in the amount of income which can qualify for the artists exemption and the removal of the exemption for patent income. In addition, the changes to the restriction may have led to behavioural change in those who traditionally availed of specified reliefs. The 2012 income tax returns were filed in November 2013 and are currently being processed.  The yield from the measure for the 2012 year is not yet fully analysed and therefore figures are not yet available. The Revenue Commissioners expect to submit the 2012 report to my Department in the third quarter of this year. 

[1] The figures for this table are drawn from the Revenue Commissioners 2011 report, which is available at http://www.finance.gov.ie/what-we-do/tax-policy/publications/reports-research/restriction-reliefs/restriction-reliefs.

Employment Investment Incentive Scheme

Questions (128)

Michael McGrath

Question:

128. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and jobs supported under the employment and investment incentive and seed capital scheme in each year since its inception; and if he will make a statement on the matter. [16419/14]

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Written answers

The tax cost of the Employment and Investment Incentive (EII) Scheme is estimated to be €4 million in 2012 and €12.4 million in 2013. The associated number of investors is 352 (including 2 EII funds) and 1,011 (including 6 EII funds) respectively for 2012 and 2013. These figures are revisions of earlier estimates provided, based on the most recently available information.

Data in relation to the number of jobs supported should become available at a later stage. Under the terms of the scheme, relief in respect of 30% of the amount invested in a qualifying company is granted to the investor in the year of investment, while the balance is only due where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Claims for the balance of the relief will be due from 2015.

 Prior to the EII Scheme, the Business Expansion Scheme (BES) was in operation. The estimated Exchequer cost of the BES and the numbers of investors since 2003 is set out in the following table.

Year

Cost €m

Number of Investors

2003

39.6

2,046

2004

50.1

2,599

2005

38.2

1,642

2006

50.9

1,994

2007

42

1,913

2008

135.7

3,200

2009

62.3

1,642

2010

58.3

1,467

2011

41

927

2012

31.5

984

 The tax cost and number of participants in the Seed Capital Scheme from 2003-2013 is as set out in the following table. It is not possible to provide both of these figures for all years since the inception of the scheme without a more detailed review of the Revenue Commissioners records.

Year 

Number of Companies 

Estimated Cost of Tax Relief - €m

2003

60

2.3

2004

74

2.6

2005

42

1.3

2006

42

1.2

2007

63

2.3

2008

56

1.6

2009

78

2.9

2010

54

1.8

2011

65

2.0

2012

67

1.6

2013*

65

1.3

*Provisional

Tax Reliefs Application

Questions (129)

Michael McGrath

Question:

129. Deputy Michael McGrath asked the Minister for Finance the number of participants and jobs supported by the special assignee relief programme in each year since its inception; and if he will make a statement on the matter. [16420/14]

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Written answers

Section 14 of Finance Act 2012 introduced the Special Assignee Relief Programme (SARP), which is designed to reduce the cost to employers of assigning key individuals in their companies from abroad to take up positions in their Irish based operations. Paragraph 10 of Section 14 provides that relevant employers must submit an annual return to the Revenue Commissioners detailing, inter alia, the number of employees and the amounts of exempt income claimed under the programme. The first year of the programme was 2012 and employer returns received to date for 2012 have provided the following results:

Numbers of employees availing of the scheme - 9;

Numbers of employers with employees availing - 8;

Number of jobs created - 5.

Further claims for SARP are provided in the Form 11 tax returns for 2012, filed by self-assessed income tax cases (2012 returns were due in October/November 2013). Based on the most recent analysis of these returns the number of individuals availing of the scheme was 6. Other information in relation to these individuals, such as numbers of employers and jobs created, is not required to be provided by taxpayers in the Form 11 tax return and is therefore not available. Corresponding figures for 2013 are not yet available.

Tax Reliefs Application

Questions (130)

Michael McGrath

Question:

130. Deputy Michael McGrath asked the Minister for Finance the tax expenditure associated, the number of participants and jobs supported under the foreign earnings deduction scheme in each year since its inception; and if he will make a statement on the matter. [16421/14]

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Written answers

Section 12 of Finance Act 2012 introduced the Foreign Earnings Deduction which provides for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014. The scheme was extended in Finance Act 2013 to include travel to Nigeria, Senegal, Algeria, Egypt, Ghana, the Democratic Republic of Congo, Kenya and Tanzania for 2013 and 2014. 

The full year estimated cost to the Exchequer of the Foreign Earnings Deduction scheme for the 2012 tax year was €0.6 million in respect of 83 employees. Complete information in relation to 2013 returns is not yet available as the Form 11 tax returns for 2013 are not due to be filed until later this year. However, tax claims received to date for PAYE employees indicate an estimated cost of €0.05 million in respect of 8 employees.

The tax relief is claimed at the end of the tax year by the employee who has undertaken the travel. There is no reporting requirement in relation to the number of jobs supported by the incentive, however it was introduced to encourage the development of trade and exports to non-traditional markets for Irish goods and services.

Banking Operations

Questions (131)

Pearse Doherty

Question:

131. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form the value and the number of payment protection insurance policies mis-sold by banks on a bank by bank basis; and if he will make a statement on the matter. [16429/14]

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Written answers

On 7 March 2014 the Central Bank issued a report on the review into the sales of Payment Protection Insurance (PPI) by eleven credit institutions. The press release and report are available on the Central Bank website, www.centralbank.ie. However, the Central Bank of Ireland does not publish this information on a bank-by-bank basis. The most recent report by the Financial Services Ombudsman provides details on the financial institutions who have had at least 3 complaints upheld or partly upheld during the previous 12 month period. This report is available at http://financialombudsman.ie/documents/Bi-Annual_Review_2013-July-Dec.pdf. Pages 9 and 10 of this report list those providers in the insurance sector, broken into product type and the number of complaints substantiated and partly substantiated. This includes Payment Protection and Mortgage Protection categories.

Bank IT Systems

Questions (132, 133, 134, 135)

Pearse Doherty

Question:

132. Deputy Pearse Doherty asked the Minister for Finance if he has ever received a full report into the computer failure at Ulster Bank in summer 2012. [16497/14]

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Pearse Doherty

Question:

133. Deputy Pearse Doherty asked the Minister for Finance the rights of customers affected by an information technology, IT, failure at a bank. [16498/14]

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Pearse Doherty

Question:

134. Deputy Pearse Doherty asked the Minister for Finance the regulatory actions taken when a bank experiences a computer problem affecting its customers. [16499/14]

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Pearse Doherty

Question:

135. Deputy Pearse Doherty asked the Minister for Finance the regulatory procedures in place to ensure banks' information technology, IT, systems are fit for purpose; and if he will make a statement on the matter. [16500/14]

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Written answers

I propose to take Questions Nos. 132 to 135, inclusive, together.

Customers have a legitimate expectation of high quality, uninterrupted services, whether provided through traditional or online channels. It is my role as Minister for Finance to put in place an appropriate legislative framework for the regulation of the financial services sector. The Central Bank is responsible for prudential supervision and financial regulation including consumer protection. The Financial Services Ombudsman is an independent office established to deal with consumer complaints about their dealings with financial institutions. Therefore, I believe that we have a robust regulatory framework in Ireland to deal with issues such as computer problems that may affect customers of banks operating here.

Whilst I did not receive a full report into the computer failure at Ulster Bank in Summer 2012 from the Central Bank or FSO, my Department is aware of the steps taken to resolve the issue. I am aware that Ulster Bank worked with the Central Bank of Ireland on a restitution plan for customers affected by its IT system failure in 2012. Implementation of the redress plan was actively monitored by the Central Bank via submission of weekly reports from Ulster Bank checking the level and type of complaints. Two on-site visits were carried out in September and November 2012 to ensure that the redress plan was being followed and that customers interests were being protected. These concluded that Ulster Bank was dealing with claims in accordance with the redress plan. The Deputy will be aware that the Financial Services Ombudsman spoke about his engagement with Ulster Bank on this issue at the Joint Committee on Finance, Public Expenditure and Reform on 5 March 2014.

The Central Bank has informed me that it expects all firms to have adequate systems and controls in place and where issues that impact customers arise they should be addressed and rectified urgently, particularly as customers are increasingly using and becoming dependent on online and mobile banking services. In this regard, the Central Bank expects firms to communicate clearly and promptly with affected customers when a technical incident occurs, including details of the impacted service, details of alternative access to services and an undertaking that identifiable loss will be remediated.  The Central Bank's expectations have been communicated to banks.

The payments system is monitored by the Irish Payments Services Organisation (IPSO). IPSO, in conjunction with the Central Bank, has implemented an annual Risk Assessment exercise with the Clearing Banks.  This annual process assesses the risk management capabilities across the Banks in relation to payments activities. The submissions from the Banks are externally validated.

Mortgage Arrears Proposals

Questions (136)

Pearse Doherty

Question:

136. Deputy Pearse Doherty asked the Minister for Finance the number of stakeholders that met during the pre-consultation phase of the 2013 review of the code of conduct on mortgage arrears; and if he will list these stakeholders. [16503/14]

View answer

Written answers

The Central Bank Consultation Paper (CP63) on the Review of the Code of Conduct on Mortgage Arrears (CCMA) was published on 13 March 2013.  The Central Bank has informed me that issues considered as part of this review were informed by, and developed through, a process of pre-consultation engagement with key industry and consumer stakeholders.  They also reflected analysis of mortgage arrears information, outcomes of consumer-based research and the results of themed inspections, undertaken by the Central Bank, of lenders' compliance with certain aspects of the 2010 CCMA. The stakeholders met as part of this pre-consultation were as follows: MABS/CIB; FLAC; FSO; ISI; Troika; IBF; and Other individual consumer advocates. 

While the process of pre-consultation assisted in informing the Central Bank of the issues to be considered in the Consultation Paper, the revised CCMA was informed by a public consultation process with in excess of 200 submissions received, in addition to findings of consumer research and inspections of lenders' compliance by the Central Bank with certain aspects of the CCMA.

Financial Services Ombudsman

Questions (137)

Pearse Doherty

Question:

137. Deputy Pearse Doherty asked the Minister for Finance his plans to empower the Financial Services Ombudsman to further represent the interests of consumers, particularly in the field of mortgage arrears; and if he will make a statement on the matter. [16504/14]

View answer

Written answers

Firstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions and it would not be appropriate for me to comment on how he performs his duties or to comment on his findings. The Financial Services Ombudsman  was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner.  I have no plans to grant the Financial Services Ombudsman powers to further represent the interest of consumers. Such action would be in conflict with his statutory role as set out under the Act. The Ombudsman must perform his duties in an impartial way.

Mortgage Arrears Proposals

Questions (138, 139)

Pearse Doherty

Question:

138. Deputy Pearse Doherty asked the Minister for Finance the frequency with which the Central Bank carries out assessments of lenders' compliance with the code of conduct on mortgage arrears. [16505/14]

View answer

Pearse Doherty

Question:

139. Deputy Pearse Doherty asked the Minister for Finance the options for alternative repayments under the code of conduct on mortgage arrears; and if he will provide in tabular form if each lender covered by his Department's mortgage restructuring data offers each option or not. [16506/14]

View answer

Written answers

I propose to take Questions Nos. 138 and 139 together.

The Central Bank regularly conducts inspections to ensure compliance with all of its codes of conduct, including the Code of Conduct on Mortgage Arrears (CCMA).  The following are the inspections which the Central Bank has conducted on the CCMA since its introduction in 2009:

- 2010 inspection conducted on specific provisions of the CCMA regarding the issuing of formal demand letters, applications to the courts to commence enforcement of legal action on repossession of a borrower's primary residence and entering arrangements;

- 2011 inspection which examined compliance with the requirement of CCMA specifically relating to charges on mortgage accounts in arrears;

- 2012 inspection which examined compliance with the CCMA requirements relating to contact with borrowers and the appeals process required under the CCMA.

In 2013, the Central Bank undertook a review of practices by credit institutions in areas of the arrears process covered by the CCMA to inform its review of the CCMA which was conducted in 2013.  In 2013 it also conducted independent research into the experience of borrowers facing or in mortgage arrears who are engaging in the CCMA's Mortgage Arrears Resolution Process (MARP).  Borrowers surveyed indicated that they were positive about their overall experience when interacting with their lenders during the MARP process, with 73% of borrowers indicating that their lender had been professional in its dealing with them and 64% noting their lender's helpfulness.  Other findings included:

- 71% of borrowers were positive about the ease of completing the Standard Financial Statement (SFS) lenders must use to gather financial information on a borrower's circumstances in order to inform any new arrears arrangements;

- 71% of borrowers surveyed had entered into an alternative arrangement with their lender as a result of MARP and 80% of those completing an SFS entered a revised agreement;

- Of the 10% of borrowers who used the MARP's appeals process, 60% stated that they had successfully negotiated a more suitable/sustainable arrangement;

- a third of consumers claimed that their lender did not have a discussion with them regarding other debts.

Following the introduction of the revised CCMA on 1 July 2013, the Central Bank also carried out an inspection of lenders' implementation of the revised CCMA.  The Central Bank's plan for themed inspections in 2014 includes an inspection of mortgage lenders to test compliance with the revised CCMA.

IBRC Mortgage Loan Book

Questions (140, 141, 142, 145)

Stephen Donnelly

Question:

140. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm what the 64% refers to; if it is the par value, IBRC book value or a volume related figure. [16513/14]

View answer

Stephen Donnelly

Question:

141. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm which sub-portfolios have been sold by the special liquidators. [16514/14]

View answer

Stephen Donnelly

Question:

142. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm the consideration being paid for the disposal; the number of buy-to-let mortgages being sold; and the number of owner occupier being sold. [16515/14]

View answer

Stephen Donnelly

Question:

145. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm the par value of the unsold mortgages that will now be transferred to the National Asset Management Agency and the price that will be paid by NAMA for said mortgages. [16518/14]

View answer

Written answers

I propose to take Questions Nos. 140 to 142, inclusive, and 145 together.

I have been advised by the Special Liquidators that the 64% refers to to the percentage, by par value, of the Sand residential mortgage portfolio that has been sale agreed with Lone Star and Oaktree Capital Management LP. It is currently expected that the remaining loans will continue to be prepared for transfer to NAMA. I am advised that the loans that have been agreed for sale consist of a mixture of PDH and BTL loans that are primarilly non-performing. The Special Liquidators will be writing to individual residential mortgage holders shortly, to provide information as to who their loan will be sold to and how it has affected their loan(s). Further information for mortgage holders is also available on the IBRC website at - http://www.ibrc.ie. I am advised by the Secial Liquidators that they will not be providing information relating to amounts paid for portfolios by third parties as this is commercially sensitive information.

IBRC Mortgage Loan Book

Questions (143)

Stephen Donnelly

Question:

143. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm that, according to the Central Bank of Ireland code of conduct for mortgage arrears, borrowers whose mortgages are in long-term arrears and are classified as long-term delinquent have no protection whatsoever from repossession action by the new buyers of the mortgage books. [16516/14]

View answer

Written answers

The announcement by the special liquidators is a real positive for the State. The vast majority of the loan portfolios will be sold to third parties, which significantly reduces the State's liabilities.  The completion of these major portfolio sales represents a significant milestone for the State in relation to the liquidation of IBRC and significantly limits the amount of assets that are now likely to transfer to NAMA as a result of this process.

The two purchasers of the residential mortgage loans, Loanstar and Oaktree, have both committed to servicing these books in accordance with the terms of the Central Bank Code of Conduct on Mortgage Arrears. As I have previously stated, if it becomes evident that the voluntary application of the code is not delivering the requisite protections for mortgage holders in arrears, I will bring forward the required legislation. Draft heads of legislation have already been sent to the Central Bank for their consideration in advance of more detailed engagement with the Attorney General s office.

It is important to highlight that the contractual terms and conditions of all customer mortgages and other borrowings of Irish Bank Resolution Corporation have not changed as a result of the appointment of the Special Liquidators nor will those terms and conditions change as a result of the sale of these obligations to a third party. Purchasers of mortgage loans will be obliged to honour the legal terms of the loan agreements.

IBRC Mortgage Loan Book

Questions (144)

Stephen Donnelly

Question:

144. Deputy Stephen S. Donnelly asked the Minister for Finance further to the announcement of the special liquidators of the Irish Bank Resolution Corporation that they have agreed the sale of 64% of the €1.8 billion IBRC mortgage book, if he will confirm that, according to the Central Bank of Ireland code of conduct for mortgage arrears, borrowers whose mortgages are classified as buy-to-let are not protected by the code. [16517/14]

View answer

Written answers

The Central Bank's Code of Conduct on Mortgage Arrears 2013 applies to the mortgage loan of a borrower which is secured by his/her primary residence. Primary Residence is defined in the Code as meaning a property which is:

a) the residential property which the borrower occupies as his/her primary residence in this State, or

b) a residential property which is the only residential property in this State owned by the borrower.

Therefore buy to let mortgages are generally not protected by the Code, regardless of the regulatory status of the lender.

Question No. 145 answered with Question No. 140.

Tax Credits

Questions (146)

Noel Coonan

Question:

146. Deputy Noel Coonan asked the Minister for Finance when an application for a incapacitated child tax credit will be finalised in respect of a person (details supplied) in County Tipperary; and if he will make a statement on the matter. [16574/14]

View answer

Written answers

I am advised by the Revenue Commissioners that a claim for incapacitated child tax credit was received on 18 March from the person concerned for the years 2004 to 2014. The application was processed on 27 March. PAYE Balancing statements (P21) and refunds for the years 2010 to 2013 inclusive have now issued to the person concerned. Amended tax credit certificates have issued for 2014 to include the incapacitated child tax credit. However, the claim in respect of tax years 2004 to 2009 could not be granted. Section 865 of the Taxes Consolidation Act 1997, as amended by the Section 17 of the Finance Act 2003, imposes a general time limit of four years for the submission of repayment claims. This time limit applies in all cases irrespective of the reason for the late claim.

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