Written Answers Nos. 51-62
51. Deputy Patrick O'Donovan asked the Minister for Finance further to Parliamentary Question No. 69 of 25 June 2014 if he will provide an update (details supplied); and if he will make a statement on the matter. [31717/14]
View answerLiability to the various taxes are determined by the Revenue Commissioners based on the full facts in each case.
I previously dealt with this issue in Question 27555-14 and the reply was based on the clear understanding (from the details supplied with the Deputy's Question and from previous direct contact by the property owner with LPT Branch) that she inherited one-eight share of the property from the estate of her late mother before 1 May 2013 and subsequently purchased the remaining seven-eights from her siblings. On that basis, the person was deemed to be a joint owner of the property on the 'liability date' and therefore not entitled to an exemption under Section 8 of the legislation.
The details supplied with this Question now suggest that the person in question did not actually inherit any share in the property until after the sale was completed. To allow Revenue to conclusively determine whether there is entitlement to an exemption from LPT, the person in question needs to clarify the exact circumstances and timing of her inheritance and subsequent purchase of the remaining shares in the property. Her clarification should include appropriate supporting documentation such as a copy of the Will or some other evidence confirming the form of the inheritance. To expedite the issue, a member of the LPT team will make direct contact with the Deputy's office to confirm a contact point in Revenue to which the person should send the required documentation.
52. Deputy Stephen S. Donnelly asked the Minister for Finance if he will consider removing VAT on personal insolvency deals, which is currently paid by the creditor, but which, according to debtor advocate groups, is making creditors less likely to agree to insolvency deals; and if he will make a statement on the matter. [31773/14]
View answerI am informed by the Revenue Commissioners that the service provided by Personal Insolvency Practitioners does not qualify for exemption in accordance with the EU VAT Directive, Irish VAT law, and relevant decisions of the European Court of Justice. Therefore, like other insolvency services such as those provided by liquidators, receivers and examiners, the service provided by a Personal Insolvency Practitioner is liable to VAT at the standard rate, currently 23%.
53. Deputy Stephen S. Donnelly asked the Minister for Finance further to the statement in Dáil Éireann on 7 February 2013 if, by agreement with the European Central Bank, the liquidation of IBRC has caused the Central Bank of Ireland to take ownership of the €3.4 billion bond used to settle the promissory note last March; whether he can confirm the price at which the ECB acquired the bond from Bank of Ireland; and if he will make a statement on the matter. [31774/14]
View answer54. Deputy Stephen S. Donnelly asked the Minister for Finance further to the statement in Dáil Éireann on 7 February 2013 if, by agreement with the European Central Bank, the liquidation of the Irish Bank Resolution Corporation has caused the Central Bank of Ireland to take ownership of the €3.4 billion bond used to settle the promissory note last March; if he will outline the agreement referred to between the State and the European Central Bank; when it was entered into; the rights and obligations of both the State and the ECB; and if he will make a statement on the matter. [31775/14]
View answerI propose to take Questions Nos. 53 and 54 together.
Following the termination of IBRC's market report of the 5.4% Irish 2025 bond in the context of the special liquidation of IBRC, this particular bond was acquired by the Central Bank of Ireland. The purchase was carried out on the secondary market between the Central Bank and Bank of Ireland. The Bank has indicated that it intends to sell the bonds acquired as a result of the liquidation of IBRC as soon as possible, provided conditions of financial stability permit. The Cental Bank has undertaken that minimum of bonds will be sold in accordance with the following schedule: €0.5bn by the end of 2014, €0.5bn per annum from 2015 to 2018, €1bn per annum from 2019 to 2023 and €2bn per annum from 2024 onwards. Further information on the transaction can be found in the Central Bank of Ireland Annual Report (http://www.centralbank.ie/publications/Documents/Central%20Bank%20of%20Ireland%20Annual%20Report%202013.pdf).
Other details in relation to the acquisition of the 2025 Irish government bond by the Central Bank of Ireland are matters for the Central Bank of Ireland.
55. Deputy Thomas P. Broughan asked the Minister for Finance to set down the number of persons registered under the relevant contracts tax system with the Revenue Commissioners in the years 2012, 2013 and to date in 2014; the number of these persons qualifying for the 0% and 20% rates, respectively; and the number of persons placed at the 35% rate in those years. [31810/14]
View answerI am informed by the Revenue Commissioners that the number of registered contractors on the rates of deduction that are provided for in the electronic Relevant Contracts Tax (eRCT) regime for the years in question are set out in the following table. They represent details of all contractors who received a payment under the eRCT system during these years.
|
Year \Rate |
0% |
20% |
35% |
Total |
|
2012 |
30,440 |
8,969 |
4,769 |
44,178 |
|
2013 |
30,750 |
11,911 |
3,770 |
46,431 |
|
2014 (to 13/7/14) |
26,923 |
11,074 |
2,575 |
40,572 |
56. Deputy Thomas P. Broughan asked the Minister for Finance further to Parliamentary Question No. 72 of 10 July 2014, to outline his position on reducing the rate of interest charged on home owners who opt to defer the payment of the local property tax, particularly in circumstances where the home owners concerned have opted to defer the payment of LPT due to their being required to pay a substantial amount of mortgage repayments. [31812/14]
View answerIn considering how to provide for a deferral regime for those who were unable to make their Local Property Tax (LPT) payments, including those with substantial mortgage repayments, I was mindful of the recommendations contained in the report of the Thornhill Group. In their report, the Thornhill Group recommended that where taxpayers are entitled to, and have elected for, deferral of LPT, interest due on deferred payments should be at a lower rate to the rate charged on overdue LPT.
I am informed by the Revenue Commissioners that any deferred LPT carries an interest charge of 4% per annum. The 4% deferral interest rate is half the rate charged on overdue income tax, capital gains tax and LPT, which is currently set at 8% per annum. The Deputy may wish to note that the cost of deferring the annual LPT charge of €225 on a property valued in Band 2 (€100,001 - €150,000) would be €9 per year.
I believe that the imposition of interest is an appropriate additional charge for deferred payment of the tax, and the 4% rate of interest is fair and reasonable in the circumstances.
57. Deputy Denis Naughten asked the Minister for Finance to outline the number of instances in each of the past four years where tax relief for a disabled driver was given on vehicles in excess of the 2 litre restriction; the number of such cases in 2014; and if he will make a statement on the matter. [31815/14]
View answerI am advised by the Revenue Commissioners that the relevant legislation governing the Drivers & Passengers with Disabilities Scheme is contained in Section 92 of the Finance Act 1989 (as amended), Section 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994).
The number of instances where tax relief was given on vehicles in excess of two litres, for drivers with disabilities, was as follows:
2014 - Nil
2013 - Nil
2012 - Nil
2011 - 197
2010 - 279
The administration of the scheme was reviewed in late 2011 to ensure that all applications would be dealt with in accordance with the legislation. Revenue met with representatives of the Irish Wheelchair Association and the Disabled Drivers Association of Ireland in November 2011 and briefed both organisations on the review, highlighting the fact that the legislation does not provide for exceptions and that, in future, exceptions would not be possible. Customers who had previously been granted exemptions on vehicles exceeding the limit were written to and advised that a further exception would not be possible when they were next changing their vehicles.
The purpose of the scheme is to provide for ways in which people with a physical disability can become more mobile. It is considered that the engine size limit of 2000 cc is sufficient to allow for an extensive choice of vehicle for a driver with a disability. A higher limit of 4000 cc applies in the case of a passenger with a disability.
58. Deputy Bernard J. Durkan asked the Minister for Finance to explain the reason a loss of earnings claim has not been paid in the case of a person (details supplied) who has been waiting for years for a resolution; if this matter will be reviewed in the near future; and if he will make a statement on the matter. [31862/14]
View answerI am advised by the Revenue Commissioners that the case in question is a disputed matter that is currently before an external appellate body. Consequently, it would not be appropriate for me to make any comment on the matter.
59. Deputy Jack Wall asked the Minister for Finance to outline the progress being made by his Department on the implementation of the strategy for financial inclusion and, in particular, the current numbers of standard bank accounts which have been rolled out in line with the associated targets for the end of 2013; and if he will make a statement on the matter. [31902/14]
View answer60. Deputy Jack Wall asked the Minister for Finance if he will provide details of the current preparations and progress for the national roll-out of the standard bank account, as recommended in the financial inclusion strategy of June 2013 and updated in November 2013. [31903/14]
View answer61. Deputy Jack Wall asked the Minister for Finance to outline the plans and activities of his Department to achieve greater involvement by credit unions and An Post to have the best possible channel for reaching the target cohorts, in particular, making the standard bank account available through the credit unions or An Post, as recommended in the financial inclusion strategy; and if he will make a statement on the matter. [31904/14]
View answer62. Deputy Jack Wall asked the Minister for Finance if he will provide details on the barriers to existing infrastructure which were identified in the strategy for financial inclusion as a rationale for the lack of greater involvement by the credit unions and An Post to have the best possible channel for reaching the target cohort in making the standard bank account available through the credit unions or An Post; the actions, if any, his Department has taken to identify these barriers and identify the steps taken, if any, for their removal; and if he will make a statement on the matter. [31905/14]
View answerI propose to take Questions Nos. 59 to 62, inclusive, together.
The Strategy for Financial Inclusion was presented to Government in December 2011. It called for the nationwide launch of a Basic Payment Account as a first step in promoting Financial Inclusion. A pilot project for a Basic Bank Account was run as one of the tasks required under the strategy.
The pilot objectives were to launch a Basic Payment Account product, test the response to it and reaction of the target customers and use that experience to inform the national roll-out. The Basic Payment Account was re-branded as the Standard Bank Account to counter fears of stigmatising users of the product.
The Standard Bank Account pilot project finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the Pilot, which the Financial Inclusion Working Group (FIWG) felt was disappointing. The report on the Standard Bank Account pilot project dated June 2013 and updated in November 2013 was published on my Department's website on 10 January 2014.
The Report of the Working Group on the Pilot project noted the view of stakeholders that one of the key elements required as part of the preparations for a successful national roll-out of a Standard Bank Account is greater involvement by An Post and the credit unions. This was seen as necessary to have the best possible channel for reaching the target cohorts. The Report also noted that barriers of existing infrastructure such as access to the clearing system had prohibited their more extensive involvement to date.
Following the pilot phase, my Department engaged in a series of bilateral discussions with the stakeholders in order to best determine next steps. However, in the course of discussions with An Post - which has the widest branch network - it became clear that one of the main issues in securing their effective involvement related to the cost to An Post of providing the bank account. This issue is currently being examined by my Department. I understand that some of the larger credit unions will be in a position to offer the account to customers in the future.
