Written Answers Nos. 70-77
70. Deputy Michael McGrath asked the Minister for Finance the number and approximate value of ongoing cases the National Asset Management Agency is pursuing regarding possible spousal transfers of assets pertaining to NAMA debtors; and if he will make a statement on the matter. [25112/14]
View answerI am advised by NAMA that it is currently pursuing three cases relating to the transfer of assets by debtors. In three further cases relating to NAMA debtors, cases are being pursued by trustees in bankruptcy. NAMA is not a direct party to these cases but will benefit proportionally as a creditor vis a vis other creditors. In addition, NAMA is engaged in a number of on-going post judgement actions, some of which involve discovery in aid of examination of debtors and their spouses in relation to assets transferred. As all of the legal cases referenced are on-going, it would not be appropriate to comment on them in further detail.
71. Deputy Michael McGrath asked the Minister for Finance as a shareholder in the bank, if his attention has been drawn to the fact that Bank of Ireland in certain cases is not charging interest on the warehoused portion of some small and medium enterprise debt while insisting that interest be paid by all mortgage holders on the warehoused portion of their split mortgage; his views on this issue; and if he will make a statement on the matter. [25114/14]
View answerAs specified in the relationship framework agreement between my Department and Bank of Ireland, it is the Board of the Bank who make decisions regarding day to day operational issues of the Bank. I have no role in the day-to-day commercial and operational decisions of the bank, which include this matter. Such decisions are taken by the board and management of the institution. I am conscious that this b ank, like other licenced banks, is required as a condition of its licence from the Central Bank of Ireland to conform to codes of conduct on the treatment of small businesses with repayment difficulties and of customers with mortgage arrears and that performance against these codes is monitored by the Central Bank of Ireland.
72. Deputy Michael McGrath asked the Minister for Finance if he will provide a detailed list in tabular form of all staff vacancies, within his Department and in each agency under his Department's remit, at principal officer grade or above, including the title of the vacant post and the functional area to which it belongs; the length of time the post has been vacant; the salary attached to the post in question; in respect of agencies where Civil Service grades do not apply, if he will include vacancies where the post attracts a salary equivalent to or greater than a principal officer grade; and if he will make a statement on the matter. [25122/14]
View answerIn my Department and agencies under its remit details of staff vacancies above Principal Officer Grade are outlined in the table.
Department of Finance
|
Grade |
Function area position belongs |
Length Vacant |
Salary Level |
|
Principal |
Fiscal Division |
26/03/2014 |
Principal |
*Principal Officers recruited by the Department of Finance adhere to the salary scales set out by the Deparment of Public Expenditure and Reform
In addition, as part of our succession planning, we are also in the process of filling the following posts:
|
Grade |
Functional area of position |
Vacancy information |
Salary level |
|
Principal ICT |
Finance & Operations Office |
New Post |
Principal |
|
Assistant Secretary |
EU & International Division |
Post will be vacated in July 2014 |
Assistant Secretary |
|
Secretary General |
Post will be vacated in 2014 |
Secretary General |
Office of the Comptroller and Auditor General
There are no vacancies at PO level and above.
NTMA
The information above does not include the National Treasury Management Agency where there are no general pay grades and staff are employed on the basis of individually negotiated contracts
Revenue Commisioners
|
Title |
Grade |
Location |
Length Vacant |
Salary Level |
|
District Manager Kilkenny |
Principal |
Kilkenny |
06/05/2014 |
Principal |
|
District Manager Kerry |
Principal |
Tralee |
21/05/2014 |
Principal |
|
District Manager, South City and Dun Laoghaire Rathdown Compliance District |
Principal |
Dublin |
31/03/2014 |
Principal |
73. Deputy Heather Humphreys asked the Minister for Finance if he will consider reducing the VAT rate on custom made loose or free-standing furniture from 23% to 12.5% in order to stimulate the furniture manufacturing market; and if he will make a statement on the matter. [25157/14]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. Annex III does not provide for a reduced rate of VAT to be applied to furniture. As such, the only rate that may apply to furniture is the standard rate, which in Ireland is 23%.
74. Deputy Lucinda Creighton asked the Minister for Finance the total forecasted dividend from the Central Bank of Ireland to the Exchequer for 2015; and if he will make a statement on the matter. [25159/14]
View answerIn April, the Central Bank of Ireland advised my Department that the total expected surplus available to be remitted to the Exchequer in 2015 is €725m. This surplus arises from the normal activities of the Central Bank and the estimate may be revised in the run up to the forthcoming Budget in light of more up to date information and data.
75. Deputy Finian McGrath asked the Minister for Finance if he will consider the issues raised by Think tank for Action on Social Change, TASC, (details supplied); if he will confirm if the information provided by TASC is accurate; and if he will make a statement on the matter. [25164/14]
View answerThe report from TASC, to which the Deputy refers has been brought to the attention of my officials, who met with representatives from TASC recently. The contents of the report will be considered as part of deliberations for Budget 2015.
To address the specific points raised in the details supplied by the Deputy;-
1. The figures quoted by TASC regarding the achievement of a net increase in pay for employees at certain income levels relates to the step effect in the PRSI system which brings all income into charge once the relevant threshold is reached. While such an effect is never ideal, it is necessary to achieve the desired yield, which in itself contributes to keeping workers on incomes lower than the threshold to remain outside the charge to employee PRSI entirely.
2. A single person on income of €40,000, while subject to a marginal rate of income tax of 41%, may pay an effective rate of income tax of 10%, when tax credits, bands and reliefs are taken into account. Effective tax rates are calculated by dividing the amount of income tax paid (excluding PRSI and USC) by the total income of an individual, and would usually take account of any tax reliefs, incentives or deductions claimed. This differs from the marginal tax rate paid on the last euro of income. The availability of tax credits, standard rate bands and other tax reliefs means that the effective rate of income tax paid by an individual will always be lower than the marginal rate payable. For example, tax credits for single employees ensure that the first €16,500 of income is not liable to income tax at all.
3. I am informed by the Revenue Commissioners that they estimate that just over 17% of income earners were liable to Income Tax at the 41% rate in 2013. These figures are provisional. It is incorrect to state that the remainder of taxpayers would not benefit from rate or band changes. A reduction in the lower (20%) tax rate would benefit some of these taxpayers, while an increase in the standard rate band could ensure that those workers that are on the brink of paying the higher rate of income tax currently, could benefit from a pay increase, without becoming subject to the higher rate of income tax going forward.
4. I can confirm to the Deputy that Ireland does indeed have the lowest tax wedge of all EU members, for those on average wages, as calculated by the OECD. The Tax Wedge is defined as the sum of personal income tax plus employee and employer social security contributions together with any payroll taxes less cash transfers, expressed as a percentage of labour costs. It is the difference between what an employer has to pay in terms of gross wages plus taxes to hire an employee and the net revenue received by that employee after deduction of all taxes on their wages. These figures also take into account social insurance payments made by employers. A competitive tax wedge is considered vital in encouraging employment growth across all income categories and to incentivise individuals to remain in or return to the labour market.
76. Deputy Brendan Griffin asked the Minister for Finance if he will introduce concessions on the local property tax for pensioners who are in receipt of the household benefits package; and if he will make a statement on the matter. [25165/14]
View answerThe Government decided that a liability to the Local Property Tax (LPT) should apply to all owners of residential properties with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
There is no specific concession available under the Finance (Local Property Tax) Act 2012 (as amended) for pensioners who are in receipt of the household benefits package. However such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.
The provision of waivers or deferrals for households unable to pay the tax or where a payment requirement would cause hardship was considered. As a general principle, eligibility for deferral should be based on gross income. The system of deferrals in place is targeted at cases of need, where there is an inability to pay the LPT under specific conditions.
The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.
The full and partial deferral thresholds may be increased in the case of properties occupied as a sole residence and subject to a mortgage. In such cases, the gross income thresholds may be increased by 80% of the mortgage interest payments. The deferral option in such qualifying cases will apply until the end of 2017.
The LPT legislation also provides for the possibility of a deferral for liable persons who cannot without excessive hardship pay local property tax when it becomes payable as a consequence of a significant and unexpected financial loss or expense. Further information on this deferral option, including Revenue Guidelines, is available from: http://www.revenue.ie/en/tax/lpt/hardship-grounds.html.
Deferred Local Property Tax and interest will have to be discharged on the sale/transfer of the property.
While I have no plans to introduce specific concessions for pensioners who are in receipt of the household benefits package, owner/occupiers whose sole source of income is a state pension should qualify for a deferral.
77. Deputy Bernard J. Durkan asked the Minister for Finance if and when the appropriate subcontactors tax authorisation will issue in the case of the spouse of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [25199/14]
View answerI am advised by the Revenue Commissioners that the spouse of the named individual is registered as a sub-contractor for Relevant Contracts Tax (RCT). Confirmation that the person qualifies for the zero rate of RCT was issued on 10 June 2014. This enables the receipt of payments from Principal contractors without deduction of RCT. I am also advised that correspondence submitted by the spouse of the named individual in relation to Registration for VAT on 29 May has been dealt with and the individual is re-registered for VAT with effect from 1 May 2014.
