Written Answers Nos. 32-38
32. Deputy Robert Troy asked the Minister for Finance if he will not apply VAT of 23% on herbal teas, vitamins and health supplements as it could have a negative effect on the Exchequer due to further expenses on the health sector. [26162/14]
View answerI am advised by the Revenue Commissioners that EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services are chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate where the products were liable to VAT at the zero rate on and from 1 January 1991.
A range of food supplements and vitamins that encourage the maintenance of health, through the sustenance derived from a normal, healthy diet, benefit from the zero rate. However, a food supplement taken for the purposes of muscle growth or body mass increase, or for the purposes of weight reduction or bodily sculpture, cannot benefit from the zero rate. I would draw the Deputy's attention to Revenue eBrief 70/2011 which contains additional detail in relation to the VAT rates of vitamins and food supplements.
I am further advised by the Revenue Commissioners that paragraph 8 of Schedule 2 of the Value-Added Tax Consolidation Act 2010 provides that that the supply of tea and preparations derived from the crushed leaves of the tea plant when supplied in non-drinkable form is liable to VAT at the zero rate. The VAT applicable to herbal teas derived from plants other than the tea plant has been raised with me by the industry and the matter is subject to ongoing analysis.
33. Deputy Michael McGrath asked the Minister for Finance the yield in each year since the universal social charge was introduced, including the 45% rate of USC that applies to the employees of financial institutions that have received financial support from the State and receive performance related bonus payments, if the provision still applies; and if he will make a statement on the matter. [26167/14]
View answerSection 531AAD of the Taxes Consolidation Act 1997 provides for a charge on bonus payments over €20,000 paid to employees of financial institutions that received financial support from the State under the Credit Institutions (Financial Support) Act 2008. This charge, the excess bank remuneration charge , is incorporated into the Universal Social Charge and applies in all respects as if it was USC except that it is charged at a higher rate of 45%. The normal USC rates are not applied. The charge applies for 2011 and subsequent tax years, resulting in these bonus payments attracting an effective tax rate of 90%.
The measure was introduced to discourage inappropriate additional payments to employees of these financial institutions when these institutions very existence is contingent on taxpayer support. Since the advent of the financial crisis, the citizens of Ireland have endured several years of austerity as we seek to put the public finances back on a sound footing and to restore the nation to prosperity. It would not be appropriate that well paid individuals, whose livelihood was ensured by sacrifices made by so many ordinary people, should benefit in the face of the challenges faced by the rest of society.
It was the unique circumstances where some of these financial institutions wished to proceed to make these payments against the wishes of the then Minister for Finance that required this special legislation.
The Revenue Commissioners have informed me that 47 individuals were subject to the charge in 2011 while nobody came within the charge in 2012 or 2013.
34. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he will provide the cost to the Exchequer each year from 2009 to 2014 of the amount paid by his Department under the terms of settlements which included confidentiality agreements or confidentiality clauses. [26181/14]
View answerThere has been no cost to the Exchequer under the terms of settlements from my Department for the years 2009 to 2014.
35. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is due VAT and-or tax arrears; if so, when these will be furnished; and if he will make a statement on the matter. [26215/14]
View answerI have been advised by the Revenue Commissioners that VAT repayment claims from the person concerned for each of the periods listed hereunder are withheld pending receipt of information which has been requested from the taxpayer: -
July/December 2011 €579, received on 12/6/2012
January/June 2012 €1,509, received on 25/7/2012
July/December 2013 €1,536, received on 23/1/2014
The taxpayer's agent was contacted on a number of occasions beginning on 26th June 2012 and requested to provide documentary evidence in support of the claims for July/December 2011 and January/June 2012. Despite this, the required information has not yet been received by Revenue.
The person concerned contacted Revenue in early 2014 regarding his claim for July/December 2013 and was advised that on receipt of the outstanding information in relation to the previous claims, this claim would then also be considered.
If the person concerned wishes to discuss this matter in more detail he may contact Ms Brid Flynn, Kildare Revenue, Plaza Complex, Belgard Rd. Tallaght, Dublin 24. Telephone number 01 4212912.
36. Deputy Sean Fleming asked the Minister for Finance the number of appointments to State Boards under the remit of his Department in each year from 2011 to 2014; the number that were publicly advertised; the reason all appointments are not open to public competition; and if he will make a statement on the matter. [26271/14]
View answerIn response to the Deputy's Question the following table contains the number of board appointments inclusive of re-appointments made to state boards under the aegis of my Department since March 2011 to date in 2014.
National Asset Management Agency
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
1 |
Expressions of interest were sought in 2012 for a panel of candidates to fill any upcoming vacancies on the Board. To date all appointments to the NAMA Board have been Ministerial appointments, no board members have been appointed from the expressions of interest sought in 2012. * |
|
2013 |
3 |
There were two members re-appointed to the board and one new appointment* |
|
2014 |
1 |
New appointment.* |
* I appointed the members of the Board of NAMA having regard to the criteria sent out in the NAMA Act.
Credit Union Restructuring Board (Rebo)
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
12 |
See note* |
|
2013 |
0 |
|
|
2014 |
0 |
*The Credit Union Restructuring Board (ReBo) comprises thirteen members in total, including six independent members. To identify suitable independent members the Department publicly advertised for expressions of interest on the Department of Finance and the Public Appointments Service websites. Nominations were also invited from credit union representative bodies, the Central Bank of Ireland and the Department of Finance. The Minister also appointed Mr Joe O'Toole to ReBo for continuity purposes as Mr O'Toole was a member of the Commission on Credit Unions.
Appointments are made from those who submitted a curriculum vitae.
National Treasury Management Advisory Committee
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
1 |
It has been the norm to appoint the Secretary General of the Department of Finance to the Advisory Committee since the Establishment of the National Treasury Management Agency. |
|
2013 |
0 |
|
|
2014 |
0 |
Board of the National Development Finance Agency
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
4 |
Two members were appointed on the basis of Curriculum vitae and two were ex-officio appointments |
|
2013 |
0 |
|
|
2014 |
0 |
State Claims Agency Policy Committee
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
4 |
Two members were appointed on the basis of Curriculum vitae, one was a re-appointment and one was a Departmental Nominee. |
|
2013 |
0 |
|
|
2014 |
0 |
National Pensions Reserve Fund
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
0 |
|
|
2012 |
1 |
Re-appointment of board member |
|
2013 |
0 |
|
|
2014 |
0 |
Fiscal Advisory Council
|
Year |
Number of appointments or re-appointments |
Comment |
|
2011 |
5 |
*see note |
|
2012 |
0 |
|
|
2013 |
0 |
|
|
2014 |
0 |
* As Minister for Finance I announced the establishment of the Irish Fiscal Advisory Council on a non-statutory basis on 7 July 2011. When establishing the Council, I stated that the Council would be an independent body whose existence and independence would be underpinned by legislation to be brought forward by Government in the Fiscal Responsibility Bill. The Chairman did not undergo interview by Oireachtas Committee but the Fiscal Council appeared before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform on a number of occasions to discuss their fiscal assessment reports. I appointed the members having regard to a number of criteria including the desirability of having a mix of appropriate backgrounds (academia, the financial sector/financial markets and public finance), macroeconomic/microeconomic expertise and a strong international dimension, as well as the need to take gender considerations into account.
37. Deputy Micheál Martin asked the Minister for Finance if he and his Department are aware that Bank of Ireland are withdrawing banking services from legitimate Irish businesses that do trade with Cuba; and if he will make a statement on the matter. [26283/14]
View answerI am aware that my Department has received one such representation in relation to a business that does business with Cuba. However, as you are aware, I have no direct function in the relationship between banks and their customers. I have no statutory function in relation to banking decisions made by individual lending institutions at any particular time as these decisions are taken by the board and management of the relevant institution. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/.
38. Deputy Micheál Martin asked the Minister for Finance if the Central Bank of Ireland has a policy on services that Irish banks provide with legitimate businesses that trade with Cuba; and if he will make a statement on the matter. [26284/14]
View answerI have been informed by the Central Bank that EU Financial Sanctions are binding on all EU persons, accordingly Irish banks are obliged to comply with all EU Financial Sanctions. The Central Bank of Ireland acts as a competent authority for EU Financial Sanctions. There are currently no EU Financial Sanctions in place concerning Cuba.
