Finian McGrath
Question:166. Deputy Finian McGrath asked the Minister for Finance the options available to persons on low income to purchase a home (details supplied). [20254/14]
View answerHouse Purchase Schemes
Questions (166)
Written answers
As the Deputy can appreciate, it is not the Minister's role to comment on individual cases. It is a commercial decision for a credit institution to determine the suitability of a borrower. Mortgage lending decisions must be undertaken on a sustainable and prudential basis by financial institutions and conform fully to the regulatory requirements, both in relation to the financial institution itself, and also with regard to the safeguarding of the borrower's interests. My colleague, the Minister for Environment, Community & Local Government, may be able to provide information in relation to any mortgage schemes that are provided by the Local Authority in which the individuals reside.
Tax Code
Questions (167)
Denis Naughten
Question:167. Deputy Denis Naughten asked the Minister for Finance further to Parliamentary Question No. 254 of 25 March 2014, if progress has been made regarding the forced transfer of single farm payment entitlements; and if he will make a statement on the matter. [20261/14]
View answerWritten answers
Officials in my Department have been considering, with officials from the Department Agriculture, Food and the Marine, the tax implications for certain farmers arising from changes in the new EU Common Agriculture Policy and the scope for mitigating the tax effects. I have also been in contact with the Minister for Agriculture, Food and the Marine in these matters.
There are potential tax implications arising from the disposal of single farm payment entitlements, mainly capital gains tax (CGT) and VAT. I have no discretion under EU law to provide for a VAT exemption on the disposal of the payment entitlement assets. Having considered the matter, however, I was prepared to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an "active" farmer by 15 May 2014. I made an announcement to this effect last week.
I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn. While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by 15 May would have to be paid in the normal course by 15 December 2014, the Revenue Commissioners have indicated that they will not require such payments to be made pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that Bill.
Household Charge Collection
Questions (168, 169)
Thomas P. Broughan
Question:168. Deputy Thomas P. Broughan asked the Minister for Finance if he will provide details on the level of consultation that has taken place between the Revenue Commissioners and the Local Government Management Agency to ensure that sufficient information regarding householders who paid and did not pay the household charge in 2012 is now with the Revenue Commissioners. [20287/14]
View answerThomas P. Broughan
Question:169. Deputy Thomas P. Broughan asked the Minister for Finance the number of householders now being pursued for arrears because they failed to pay the household charge in 2012. [20288/14]
View answerWritten answers
I propose to take Questions Nos. 168 and 169 together.
I am informed by the Revenue Commissioners that they have been in constant communications with the Local Government Management Agency (LGMA) since Local Property Tax (LPT) was first announced by the Government in 2012. The LGMA was also represented on the inter-Departmental Group, chaired by Revenue, which was established following the Government decision.
The LPT register was developed using data drawn from a range of sources and this included the Household Charge database which they received from the LGMA in 2012. The Commissioners have confirmed that they received additional files from the LGMA in 2013 to assist in identifying further properties that had paid the charge or, in respect of which a waiver or exemption from the charge had been granted. I am also advised that since then there has been extensive on-going engagement with the LGMA to ensure all the relevant Household Charge data held by them has been forwarded to the Commissioners.
A comprehensive data matching exercise was undertaken by Revenue which identified a database of some 400,000 properties for which the Household Charge (HHC) was outstanding. Work on the database is continuing according as property owners contact Revenue. 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. Some properties that are liable for LPT were exempt from the HHC and, unlike LPT, property owners were not actually required to make a claim for exemption from HHC. For that reason, Revenue could not identify every property that was exempt from HHC through the cross-referencing process.
In all its communications with property owners during the current compliance campaign, the Revenue Commissioners have highlighted that these inconsistencies exist and have outlined the action that owners need to take if the HHC is not due. The Commissioners have confirmed that as part of their Household Charge compliance campaign they are currently writing to some 227,000 property owners who, according to their records, have not paid the €200 arrears in respect of about 273,800 properties. The letter advises property owners to log in to the LPT/Household Charge arrears online system on the Revenue website and make arrangements to pay the €200 arrears, or update their Household Charge arrears record to confirm they have paid the charge or are exempt, or entitled to a waiver, from the charge. Owners who require assistance or who are not the liable person for the Household Charge are being advised to contact the LPT helpline on 1890 200 255.
Where a liable person ignores the letter, payment of the LPT/Household Charge arrears will be pursued, where necessary, using the range of collection/enforcement powers at Revenue's disposal which includes mandatory deduction at source from salary, various occupational pensions or from certain Government payments. I am also informed that since taking on responsibility for Household Charge arrears in July 2013, about €7.6m has been collected by the Revenue Commissioners.
Film Industry Tax Reliefs
Questions (170)
Seán Kyne
Question:170. Deputy Seán Kyne asked the Minister for Finance if there are any proposed changes to section 481 of the Taxes Consolidation Act 1997 regarding tax relief for film making; if consideration is being given to extending the tax relief available to the creative arts industries such as animation and game production in view of the introduction of such a relief in the UK; and if he will make a statement on the matter. [20308/14]
View answerWritten answers
The Film Relief tax credit is undergoing significant changes, as outlined in Budget 2013 and enacted in Finance Act 2013. Under the new scheme, film relief will be given a new focus. The delivery mechanism of the incentive will change. It will not be available to investors in qualifying films. Instead a payable tax credit amounting to 32% of the lowest of:
- the eligible expenditure amount;
- 80% of the total cost of production of the film; and
- €50,000,000,
will be paid directly to a Producer Company who produces a qualifying film. The tax credit will reduce the corporation tax of the producer company for the qualifying period. Where the tax credit exceeds the tax due for the qualifying period (as reduced by the tax paid), the tax credit will be a payable credit and will be paid directly to the producer company. The criteria in relation to eligible expenditure will remain unchanged.
The Department of Finance and the Revenue Commissioners are in regular discussions with the Irish Film Board and the film industry. The priorities and challenges of the games industry are different from those in other audiovisual sectors. The Department regularly reviews all tax expenditures in light of changing needs and international developments.
VAT Exemptions
Questions (171)
Seán Kyne
Question:171. Deputy Seán Kyne asked the Minister for Finance if, in the context of the growth of e-readers and e-books and in the benefits of encouraging, from an education and literacy perspective, reading, if consideration will be given to reviewing the charging of VAT on e-books; and if he will make a statement on the matter. [20309/14]
View answerWritten answers
The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. In this regard, all digitised publications, including e-books are treated as the supply of a service liable at the standard rate of VAT, which in Ireland is 23%. While Ireland applies a zero VAT rate to printed books including atlases, children's picture, drawing and colouring books and books of music, by virtue of a derogation under the VAT Directive for such exceptional treatment, there is no option under EU VAT Law to either exempt e-books from VAT or to apply the zero VAT rate or a reduced VAT rate to such products.
The different VAT treatment of printed books and e-books reflects the nature of these products, the latter being a richer product often providing content beyond simple text to include embedded digital music, software, film and internet links. While it is possible to reduce the standard rate on e-books to below 23%, such a reduction would, under EU VAT Law, have to apply to all goods and services at the standard VAT rate, which would be excessively costly to the Exchequer.
VAT Rate Application
Questions (172)
Seán Kyne
Question:172. Deputy Seán Kyne asked the Minister for Finance if his attention has been drawn to the recent decision by the Revenue Commissioners to implement a full 23% VAT rate for herbal teas such as peppermint while a zero VAT rate continues to apply on black, white and green teas; if his attention has been drawn to the fact that this decision is threatening the viability of indigenous companies, for example, one based in Galway, in terms of competing with UK-based companies; and if he will make a statement on the matter. [20317/14]
View answerWritten answers
I am advised by the Revenue Commissioners that the zero rate of VAT applies to tea, which is understood to mean products in non-drinkable form which consist of the dried crushed leaves of the tea plant, but not products such as herbal and fruit based infusions, which are not derived from leaves of the tea plant. Industry representatives raised this matter recently with my Department and with Revenue and I understand that the industry will make a submission on the matter in the near future. I am also advised that Irish suppliers are not at a competitive disadvantage to suppliers from the UK as Irish VAT applies to all supplies in the State irrespective of their country of origin.
IBRC Bonds
Questions (173)
Seán Kyne
Question:173. Deputy Seán Kyne asked the Minister for Finance if he will provide a breakdown on a county basis of housing developments and homes relating to bonds from the former Irish Bank Resolution Corporation; if his attention has been drawn to the fact that funds under bonds are not currently being released to rectify deficiencies or carry out remediation works and are ultimately preventing local authorities from addressing problems in such development; and if he will make a statement on the matter. [20318/14]
View answerWritten answers
I am aware of the problems facing local authorities and in particular in relation to unfinished housing estates as a result of developers not complying with the terms of their planning permissions. I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place however it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation.
I am advised that the Department of the Environment, Community and Local Government are currently working with the relevant local authorities to ascertain the actual level of exposure that exists in relation to the development bonds previously entered into by IBRC in favour of the various County Councils or local authorities. Once that exposure is quantified the local authorities will submit a claim to the Special Liquidators in respect of the bonds. This information will be provided directly to the Special Liquidators in order to allow them to register that claim on the liquidation of IBRC.
Insurance Compensation Fund
Questions (174, 175)
Finian McGrath
Question:174. Deputy Finian McGrath asked the Minister for Finance the amount of money in the insurance compensation fund; if he will quantify the amount paid into this scheme from all insurance policies over the past ten years. [20354/14]
View answerFinian McGrath
Question:175. Deputy Finian McGrath asked the Minister for Finance the moneys that have been paid out from the insurance compensation fund over the past ten years; and if he will make a statement on the matter. [20355/14]
View answerWritten answers
I propose to take Questions Nos. 174 and 175 together.
The Insurance Compensation Fund (ICF) is funded through levy of 2% being applied to home, motor and commercial insurance. The levy operates under the Insurance Act 1964 and came into effect from 1 January 2012, following the appointment of administrators to Quinn Insurance Ltd (QIL) by the High Court. Under Section 6 of the Insurance Act 1964 the responsibility for deciding whether the ICF has sufficient funds available to it at any particular time is a matter for the Central Bank of Ireland (CBI). Where, in the opinion of the CBI, the state of the ICF is such that financial support should be provided for it, it determines an appropriate contribution to be paid to it by each insurer calculated as a percentage, not exceeding 2% of the aggregate of the gross premiums paid to that insurer in respect of policies issued in respect of risks in the State.
Funds from the levy are collected from insurers by the Revenue Commissioners and these funds are transferred on a monthly basis to the ICF. The total amount transferred to the ICF is as follows:
|
Year |
Total received |
|
2012 |
€45,565,922.16 |
|
2013 |
€65,697,953.38 |
|
2014 (up to 1st May 2014) |
€15,099,263.28 |
|
Total |
€126,363,138.82 |
The above total has been collected by the Revenue Commissioners from the ICF levy. €60,950.37 has been deducted to cover the set up costs and annual administration costs of collecting the levy.
The ICF levy was previously introduced on 1 January 1984 following the collapse of PMPA in October of the preceding year. The 2% levy was paid by all non-life insurers at this rate until 31 December 1991 and a reduced levy of 1% applied for the period 1 January 1992 to 31 December 1992, when it was discontinued as sufficient moneys had been collected to successfully complete the administration of the former PMPA. In the last ten years €1,118m has been paid out of the fund broken down per year as follows:
|
Year |
Total advanced from the ICF |
|
2004-2010 |
0 |
|
2011 |
€320m |
|
2012 |
€488m |
|
2013 |
€310m |
|
Total |
€1,118m |
The balance between the amount paid out of the ICF and that paid into the fund from insurance policies is made up of existing cash in ICF, receipts following the completion of the Icarom and Primor administrations and advances from the Exchequer.
Schools Building Projects Status
Questions (176)
Charlie McConalogue
Question:176. Deputy Charlie McConalogue asked the Minister for Education and Skills the position regarding the new school building project at a school (details supplied) in County Tipperary; if his attention has been drawn to the fact that old school roof has been extensively damaged and is leaking; and if he will make a statement on the matter. [20005/14]
View answerWritten answers
The Major School Building Project referred to by the Deputy is currently at an advanced stage of Architectural Planning. The Stage 2b Submission (Detailed Design) has been received in my Department and is currently under review.The Design Team have been requested to submit additional information which on receipt will be reviewed and subject to no other issues arising, officials from my Department will contact the Board of Management with regard to the potential, at that time, for further progression of the project. Due to competing demands on the Department's capital budget imposed by the need to prioritise the limited funding available for the provision of additional school accommodation to meet increasing demographic requirements it was not possible to include this project in the 5 year construction programme announced in March 2012. School building projects, including the project referred to by the Deputy, which have been initiated but not included in the current five year construction programme will continue to be progressed to final planning stages in anticipation of the possibility of further funds being available to the Department in the future. In the interim, with regard to the school roof, I can confirm to the Deputy that this school is among 772 primary and post primary schools across the country who will be receiving funding under the 2014 Summer Works Scheme. The school in question has received notification to this effect from my Department.