Thursday, 8 May 2014

Written Answers Nos. 51 - 63

Tax Code

Questions (51)

Brendan Griffin

Question:

51. Deputy Brendan Griffin asked the Minister for Finance if his attention has been drawn to the difficulties that businesses face as a result of changes to the time of payment of VAT; his views that many construction contractors in particular are experiencing serious cashflow problems as a result of the new system and are heavily exposed to losses when they are not paid for jobs that they have completed; if he will examine ways of improving the cashflow environment for such businesses in the area of paying and recouping VAT; and if he will make a statement on the matter. [20766/14]

Written answers

Minister for Finance

I assume the Deputy is referring to construction sub-contractors who are subject to reverse-charge VAT, whereby the principal contractor remits the VAT related to their output to the Revenue Commissioners.  This is not a new measure, having been introduced in 2008.  In any event, I am advised by the Revenue Commissioners that such sub-contractors, who have no output VAT liability, should be in a continuous repayable position in relation to VAT on their inputs.

While there have been no recent legislative changes to the time of payment of VAT, Revenue has extended their less frequent filing/payment arrangements to additional eligible customers from 1 January 2014.  Such businesses would have a reduced cost of administration owing to the requirement for less frequent filing of returns and payments (bi-annual, four-monthly or quarterly) rather than two-monthly.  However, where such companies are in a continuous repayable position there could be cash flow issues.  Companies in such a position may, if they wish, advise the Collector General's Office that they wish to remain on bi-monthly returns and payments basis and the Collector General will make the necessary adjustment.

The Deputy also raises the issue of persons who are not paid for jobs that have been completed.  I would refer the Deputy to the introduction of section 62A of the Value-Added Tax Consolidation Act 2010.  In normal circumstances an accountable person is entitled to an input credit for VAT charged to that person by means of invoices.  Section 62A obliges accountable persons who have taken credit for input VAT on or after 1 January 2014 to reverse that input credit where the invoice amount is not paid to the supplier within 6 months.  Section 62A is a pro-business measure designed to encourage prompt payment and should positively impact on the contractors mentioned by the Deputy.

Property Tax Administration

Questions (52)

Seán Fleming

Question:

52. Deputy Sean Fleming asked the Minister for Finance his views on the many letters issued by the Revenue Commissioners on 17 April 2014 advising that the household charge would be collected by them through the same mechanism as the local property tax; in view of the fact that these letters were received on 24 April thereby giving persons less than five working days to deal with this if he is satisfied that putting a date on a letter that does not arrive until week later is fair and reasonable; if he will ensure that when the Revenue Commissioners and other organisations issue official letters the date on the letter corresponds to the date of postage as there are no postage date marks on official envelopes; and if he will make a statement on the matter. [20773/14]

Written answers

Minister for Finance

I am advised by Revenue that it received the Household Charge (HHC) Register from the Local Government Management Agency (LGMA) and this data, along with various other Government and non-Government data sources, was used to develop the Local Property Tax (LPT) Register. Revenue has also confirmed that as a result of a comprehensive data matching exercise across both registers, it has matched 1.27 million properties for which the HHC was paid, to the LPT Register of 1.69 million properties (other than Local Authority/Social Housing). The Deputy will appreciate that it is absolutely essential from a fairness perspective to the vast majority of house owners who paid both the HHC and LPT that Revenue follows through on those who have not.

To ensure that all liable persons meet their HHC obligations, Revenue announced a compliance campaign on 18 February 2014, but in doing so provided a six week window to 31 March to allow people get both their HHC and LPT affairs in order without incurring any additional charges or penalties. This window and the consequences of continued non-compliance were very extensively advertised on both national and local media outlets and I am happy to say that very many people availed of the opportunity to bring their property tax affairs up to date.

Revenue began writing to the remaining property owners who opted not to bring their affairs up to date during the six week window on 17 April. The notification clearly warned of the consequences of continued non-compliance but also outlined the steps that needed to be taken in regard to both payment options and updating the records where no payment was due, thereby preventing any collection/enforcement activity.

In regard to the issue date of the letters, Revenue has confirmed to me that it did in fact process the letters on the specified date/s (17 April) but due to the Easter period An Post was not in a position to make delivery for up to five days in some instances. For that reason Revenue will take a reasonable approach in regard to debt recovery providing the property owner makes contact and commits to dealing with any outstanding issues within an agreed period of time. For the Deputy's information, since the compliance letters started to issue on 17 April Revenue has received almost 40,000 items of correspondence and is handling between 8,000 and 12,000 phone calls each day. Revenue has indicated to me that it will not commence debt recovery activity until the backlog is cleared and while it will not make any further direct contact with non-compliant property owners in advance of debt recovery activity, it will clearly signal its intention in this regard through its regular media updates.   

The Deputy should be aware that to assist compliance, Revenue has developed a new online service that facilitates property owners to make payment, or to indicate that they have already paid or are exempt. This service, which can be accessed by using the Property ID and PIN codes provided on the notification that issued, is available 24 hours a day and is both intuitive and easy to navigate. Revenue has also made its Helpline at 1890 200 255 available on an 8am to 8pm basis for any person who wants to make direct contact rather than using the online system. 

In summary, I am satisfied that Revenue has been very facilitating in its approach to collecting the outstanding arrears of HHC by providing the initial six week window, by developing additional IT support and by providing extended Helpline opening hours. I would recommend that the Deputy outline these provisions to any constituent who may still have outstanding issues in respect of either HHC or LPT and advise that early contact with Revenue will in most instances prevent any stressful and expensive enforcement sanctions.

Tax Code

Questions (53)

Seán Fleming

Question:

53. Deputy Sean Fleming asked the Minister for Finance the taxation situation regarding a person who transfers agricultural land which they are farming to their child who is in their early 30s but does not have a green certificate; the taxation threshold and rates on such land transfers; and if he will make a statement on the matter. [20793/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the following tax issues are relevant to the circumstances the Deputy mentioned.

Capital Gains Tax

The transfer of land by a person to his or her child constitutes a disposal of an asset for capital gains tax purposes. The first €1,270 of chargeable gains in any tax year is exempt from capital gains tax. Where the gains exceed that amount, capital gains tax will only be charged on the amount in excess of €1,270. The current rate of capital gains tax is 33%. 

Where land has been owned by a person for a minimum period of 10 years and has been used by that person for farming throughout that period, retirement relief applies to a transfer of such land  by a person, who is aged 55 or over, to his or her child.  Where the person is aged between 55 and 65 years, there is no restriction on the amount of relief that is available. However, relief is capped at €3m where the person who transfers land to his or her child is aged 66 or over and the transfer occurs on or after 1 January 2014. If the land on which relief is granted is disposed of by the child within 6 years of the date of the transfer, the relief granted will be clawed back by way of an assessment on the child.

Stamp Duty

The transfer of agricultural land normally attracts a charge to stamp duty at the rate of 2% on the market value of the land transferred. A reduced rate of 1% applies in the case of a transfer, on or before 31 December 2014, where the transferee is a child of the transferor.

There is an exemption from stamp duty where the transferee is a young trained farmer. To qualify as a young trained farmer, the transferee must be under 35 years at the date of the transfer and must also be the holder of specified educational qualifications as set out in Section 81AA and Schedule 2, 2A and 2B of the Stamp Duties Consolidation Act 1999. This exemption applies where the transfer is executed on or before 31 December 2015. However, as the farmer's child mentioned by you does not have a "green certificate", it would appear that he would not be the holder of the necessary qualifications and therefore the transfer would not qualify for the young trained farmer exemption.

Capital Acquisitions Tax

The transfer of land by a person to his or her child also constitutes a gift to the child for Capital Acquisitions Tax purposes (CAT). CAT is the overall name for both Gift Tax and Inheritance Tax. For the purposes of CAT, the relationship between the person who provides the gift or inheritance (the disponer), and the person who receives the gift or inheritance (the beneficiary), determines the maximum tax-free threshold-known as the "Group Threshold". The Group Threshold applying to a gift or inheritance, received by a child from his or her parents, is the Group A threshold and, for 2014, this is €225,000. Any other gifts/inheritances that might have been received by the child from his or her parents since 5 December 1991 will also be taken into account when applying the threshold for the purposes of calculating the gift/inheritance tax.

CAT is charged on the excess value over €225,000 received by a child at the rate of 33%. Where a gift or inheritance consists of agricultural property, the market value of the agricultural property gifted may be reduced by 90% for CAT purposes provided certain conditions are met. The main conditions are that the beneficiary of the gift/inheritance must qualify as a "farmer" in order for agricultural relief to apply to the lands being transferred. A "farmer" is defined in the legislation as an individual whose gross property consists of at least 80% agricultural property, as defined, after receiving the gift or inheritance. Also, the beneficiary of the gift/inheritance must not sell the lands for a period of six years after receiving the gift/inheritance.

Where CGT and CAT arise on the transfer of lands, the CGT paid can be credited against the CAT liability arising provided the lands are not disposed of within 2 years of the acquisition. This ensures that the transfer of the lands is not subject to double taxation.

Tax Forms

Questions (54)

Jack Wall

Question:

54. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare will be issued with a P21; and if he will make a statement on the matter. [20800/14]

Written answers

Minister for Finance

I have been advised by the Revenue Commissioners that the person concerned and her spouse are jointly assessed for income tax purposes.  A PAYE Balancing Statement (P21) for 2012 and also a refund of tax over paid will issue shortly to the person concerned. Revenue has written to her requesting Form P.60 for 2013 and on receipt of a reply a P21 for 2013 will be issued.

Household Charge Exemptions

Questions (55)

Willie Penrose

Question:

55. Deputy Willie Penrose asked the Minister for Finance if a person (details supplied) in County Westmeath who occupies a granny flat at the rear of a house, which is occupied by this person’s in-laws who have discharged their payment in terms of the household charge is liable to pay the household charge on the said granny flat; and if he will make a statement on the matter. [20826/14]

Written answers

Minister for Finance

I am advised by Revenue that the introduction of Local Property Tax (LPT) required it to build a Property Register of all residential properties in the State. As part of the building process, Revenue received the Household Charge (HHC) Register from the Local Government Management Agency (LGMA) and cross-referenced both registers to identify a database of properties where the HHC is still outstanding.

For the Deputy's information, the Local Government (Household Charge) Act 2011 states that where a 'granny flat' has a separate entrance/sanitary facility/electricity supply, then it is liable for the HHC, as it is deemed a separate property; but if facilities are shared and there is only one entrance to the property it is deemed part of the main property and is not liable for a separate charge.

In the specific case to which the Deputy refers, the HHC record for the 'Granny Flat' indicates a liability to the charge. However, on further examination of the case by the LPT team, there are a number of issues that require clarification before a definitive determination can be made. In this regard Revenue has confirmed to me that the LPT team are making direct contact with the person in question and will clarify whether a liability to HHC exists in the coming days.

School Accommodation

Questions (56)

Charlie McConalogue

Question:

56. Deputy Charlie McConalogue asked the Minister for Education and Skills the outcome of the architect's report which has been received by his Department with respect to accommodation issues at a school (details supplied) in County Donegal; when he expects a final decision on the matter; and if he will make a statement on the matter. [20624/14]

Written answers

Minister for Education and Skills

My Department is currently considering how the accommodation needs of the school, referred to by the Deputy, can be addressed. In that regard, the recent visit by my Department's Inspectorate will assist in that process. My Department expects to be in touch with Donegal ETB in respect of the College, in question, shortly.

Special Educational Needs Staffing

Questions (57)

Colm Keaveney

Question:

57. Deputy Colm Keaveney asked the Minister for Education and Skills if there has been any change in the standard number of hours for a full-time equivalent special needs assistant since January 2011; if so, when and what was the change in the standard number of hours; and if he will make a statement on the matter. [20630/14]

Written answers

Minister for Education and Skills

The contractual position in respect of the working hours of SNAs is as outlined in their contracts of employment which were agreed with the school management authorities and the relevant Trade Unions representing SNAs (IMPACT and SIPTU) prior to their introduction in 2005. Links to the SNA Contracts of Employment are as follows:Department of Education and Skills Circular SNA 12/05 (Post-Primary) http://www.education.ie/en/Circulars-and-Forms/Active-Circulars/sna12_05.pdf Department of Education and Skills Circular SNA 15/05 (Primary) http://www.education.ie/en/Circulars-and-Forms/Popular-forms/SNA-15-05-Contract-Form.pdf. This contract of employment is augmented by all of the relevant Departmental Circulars governing Special Needs Assistants which detail the standardised terms and conditions of employment for SNAs. These Circulars are amended and new Circulars are issued by the Minister for Education and Skills from time to time.

The position regarding the working hours of full-time SNAs is as outlined in these standard SNA contracts of employment. In that context, the standard SNA contract has been designed to be flexible to cater for the different spectrum of working hours across all the various schools including primary, post-primary and special schools. No set hours were agreed but instead full-time SNAs are expected to work for the normal school hours in the school that they are working in, and in addition to be available for a period of time before and after school in order to help with reception and dispersal of children and preparation and tidying up of classrooms etc. These times are set locally by the school management and will vary from school to school depending on the requirements of the school. In addition, all SNAs were required to be available for a number of days at the start and finish of each school term not exceeding 12 in total. Under the Croke Park Agreement it was agreed to introduce greater flexibility to the use of these 12 days. Accordingly, DES Circular 71/2011 was issued on 15 December 2011 which outlined that these 12 days now equate to 72 hours (pro-rata for part-time SNAs) to be used by schools as an additional bank of hours to be utilised and delivered outside of normal school opening hours and/or the normal school year. SNAs who are employed in a part-time capacity are paid a pro-rata amount dependent upon their level of hours of employment. Part-time SNAs are paid on the agreed divisor rate for pay purposes for part-time SNAs which is 32 hours. I should point out that this divisor was agreed with both of the Trade Unions (IMPACT and SIPTU) that represent SNAs. Furthermore, the issue of appropriate working hours for all public servants was one of the key aspects of the set of proposals for a public service agreement which were put forward by the Labour Relations Commission and which now form the Public Service Stability Agreement 2013-2016 (the Haddington Road Agreement). The specific text of the Haddington Road Agreement relating to working hours for SNAs is as follows: "SPECIAL NEEDS ASSISTANTS Hours Under the terms of the Public Service Agreement 2010-2014, discussions took place that led to agreement on changed attendance arrangements for Special Needs Assistants (SNAs) that give schools the option of an additional two hours working time per week from each Special Needs Assistant. Under the terms of this Agreement on increased working hours in the Public Service, the available requirements in schools for additional hours for SNAs is quite limited. Given issues such as the duration of the school day and operation hours, and the specific availability of individual SNAs the details of the utilisation of any additional requirements should be the subject of further discussions. These new attendance arrangements, allied to the provisions outlined in the above paragraph should be the subject of a review by the LRC in advance of the 2013/2014 school year, involving the Department of Education and Skills and IMPACT/SIPTU, in order to assess if the additional hours are being utilised in the most effective and appropriate manner and in order to achieve agreement on any changes deemed necessary in terms of the arrangement agreed for teachers.This will constitute the liability on Special Needs Assistants in respect of working hours for the purposes of this extension to the Public Service Agreement."An LRC process has now commenced in respect of the application of this provision of the Haddington Road Agreement.

Special Educational Needs Service Provision

Questions (58)

Michael Healy-Rae

Question:

58. Deputy Michael Healy-Rae asked the Minister for Education and Skills the reason there is no autism unit in a mainstream school in a town such as Killarney; and if he will make a statement on the matter. [20659/14]

Written answers

Minister for Education and Skills

My Department's policy is focused on ensuring that all children, including those with autism, can have access to an education appropriate to their needs, preferably in school settings through the primary and post primary school network. The policy is to provide for children with special educational needs, including autism, to be included in mainstream schools unless such a placement would not be in their best interests or the interests of the children with whom they are to be educated. Some children may be supported in a special class attached to a mainstream school. These students have the option, where appropriate, of full/partial integration and interaction with other pupils. Other children may have such complex needs that they are best placed in a special school. The establishment of a network of autism-specific special classes in schools across the country has been a key educational priority in recent years. The National Council for Special Education (NCSE), through its network of local Special Educational Needs Organisers (SENOs), is responsible for processing applications from primary and post primary schools for special educational needs supports, including the establishment of special classes in various geographical areas as required. The NCSE operates within my Department's criteria in allocating such support. Details of the special classes for children with autism, including details of special classes for children with autism in the Kerry area are available on the NCSE website www.ncse.ie. I have arranged for the matter raised by the Deputy to be forwarded to the NCSE for their attention and direct reply.

Departmental Staff Remuneration

Questions (59)

Charlie McConalogue

Question:

59. Deputy Charlie McConalogue asked the Minister for Education and Skills when a decision will be made to grant a person (details supplied) CID status; and if he will make a statement on the matter. [20663/14]

Written answers

Minister for Education and Skills

The employer of the person to whom the Deputy refers was informed by my Department's Payroll Division on 21 March 2014 that, as the requirement for continuous service outlined in circular letter 0034/2009 had not been satisfied, a Contract of Indefinite Duration could not be awarded in this case. There is an appeals procedure which may be availed of as set out in circular letter 0034/2009 and 0050/2006. An appeal must be made within 4 working weeks of the date a person is notified by their employer that they have not been awarded a Contract of Indefinite Duration. No appeal was received.

Capitation Grants

Questions (60, 61, 62, 63)

Jonathan O'Brien

Question:

60. Deputy Jonathan O'Brien asked the Minister for Education and Skills the primary school capitation grant per child for each of the past ten years and the supplementary rates for children in Gaelscoileanna and children with special needs for these years. [20687/14]

Jonathan O'Brien

Question:

61. Deputy Jonathan O'Brien asked the Minister for Education and Skills the number of schools receiving the ancillary services grant during each of the past five years. [20688/14]

Jonathan O'Brien

Question:

62. Deputy Jonathan O'Brien asked the Minister for Education and Skills the rates of capitation grant per pupil at secondary level; the rates of the special class grant, Irish and bilingual grant, Traveller capitation grant, for each of the past ten years. [20689/14]

Jonathan O'Brien

Question:

63. Deputy Jonathan O'Brien asked the Minister for Education and Skills the number of schools receiving a grant under the school services support fund during each of the past five years. [20690/14]

Written answers

Minister for Education and Skills

I propose to take Questions Nos. 60 to 63, inclusive, together.

My Department provides capitation funding to all recognised primary schools and post primary schools within the free education scheme. My Department provides funding to all recognised primary schools by way of per capita grants. Enhanced rates of capitation funding are paid in respect of children with special educational needs who attend special schools or special classes attached to mainstream schools. The Ancillary Services grant is paid to all recognised schools unless the school has been provided with secretarial and caretaking assistance under the 1978/1979 schemes. Under these schemes the secretary and/or caretaker are paid directly through the Department payroll. The funding arrangements made by my Department for post primary schools reflect the sectoral division of our second-level system. At the core of all arrangements is reliance upon capitation as the principal determinant of funding. My Department provides funding to Community and Comprehensive schools on a budget basis that is based mainly on pupil numbers, but also take into account additional factors which vary from school to school such as age of buildings, size of school etc. With regard to the ETB sector financial allocations are made to ETBs as part of a block grant. ETBs are given a high level of autonomy in the management and appropriation of this grant and each is allowed to distribute its allocations in line with its priorities and perceptions of need. My Department provides funding to voluntary secondary schools by way of per capita grants. Fee charging schools do not receive any capitation or related grants from my Department.

Information on the various per capita grant rates going back to 2004, as requested by the Deputy, is not readily available. My officials are currently compiling this information and it will be forwarded to the Deputy in due course.