Written Answers Nos. 272-299
272. Deputy Stephen S. Donnelly asked the Minister for Finance if he will provide an update on the financial position of the Irish Bank Resolution Corporation which has disposed of nearly €20 billion of par value loans in the past 12 months. [34253/14]
View answerThe latest available update on the financial position of IBRC is contained in the Progress Report prepared by the Special Liquidators in June of this year. On receipt of this report I immediately published it on the Department of Finance website. A copy of the June 2014 Progress Report on the Special Liquidation of IBRC can be found at the following link:
http://www.finance.gov.ie/news-centre/press-releases/progress-report-update-successful-special-liquidation-ibrc
Since that update, the Special Liquidators have been continuing with the sales process plan developed for the remaining loans in the bank. Sales processes for three portfolios are currently under way and are expected to be completed by the end of this year.
The next update on the financial position of IBRC will be available in early 2015. The Special Liquidators will be complying with their obligations and as such the liquidation accounts, which will detail the receipts and payments of the liquidation, will be filed in the CRO in February 2015.
273. Deputy Stephen S. Donnelly asked the Minister for Finance his views on the recent sale of a site at Nos. 1 to 6 Sir John Rogerson’s Quay to the Hibernia Real Estate Investment Trust in an off-market transaction for nearly €18 million, just over 12 months after the National Asset Management Agency sold the site to the Australian student accommodation company, Urbanest, for €7 million; and if he will make a statement on the matter. [34254/14]
View answer274. Deputy Stephen S. Donnelly asked the Minister for Finance his views on the recent sale of the Forum Building in the Irish Financial Services Centre to the Hibernia Real Estate Investment Trust for €38 million, after the property had previously been sold by the National Asset Management Agency in December 2012 to Atlas for €28 million. [34255/14]
View answerI propose to take Questions Nos. 273 and 274 together.
Sales of assets and loans under the control of NAMA are a commercial matter for NAMA and I do not propose to comment on specific cases.
As a general comment, I would suggest to the Deputy that the much improved performance of the Irish commercial market over the past year is a very welcome development, particularly in the context of the very steep price decline which occurred between 2007 and 2013.
NAMA has a policy of openly marketing assets for sale and the prices achieved on asset sales to date reflect market prices at the time the sales were agreed. It is a matter for private sector purchasers to make their own decisions regarding the timing of their asset sales, their target disposal prices and whether or not they wish to sell assets off-market.
The Deputy may be aware that, over the period from 2010 to 2012, NAMA adopted a strategy of limiting asset disposals into the Irish market given the low level of demand and given the ongoing downward trend in prices. By so doing, NAMA ensured that only a small proportion of Irish assets were sold. I am advised that less than 5% (by value) of the Irish property portfolio securing NAMA loans (at acquisition) had been sold by the end of 2012. Adoption of this strategy has left NAMA and its debtors and receivers in a strong position to take advantage of the price appreciation evident in the Irish market over the past year.
277. Deputy Stephen S. Donnelly asked the Minister for Finance the role the National Asset Management Agency advisory board had in the production of the recent review into NAMA. [34258/14]
View answer278. Deputy Stephen S. Donnelly asked the Minister for Finance the work undertaken by the National Asset Management Agency advisory board in 2014; if he will provide its predicted cost for the 12 months of 2014; if he will further provide an assessment of the continuing relevance and value of the board; and if he has any plans to terminate it.; and if he will make a statement on the matter. [34259/14]
View answerI propose to take Questions Nos. 277 and 278 together.
I met with the Chair of the Advisory Group on one occasion in 2014. It is also open to the Chair to contact me as issues arise.
As previously stated, the group's advice to me primarily relates to the strategy of NAMA as proposed by the board of NAMA; the remuneration of the senior executives of NAMA and any further advice that I may seek on any matter relating to NAMA. The group operates on an informal basis and reports directly to me.
Michael Geoghegan, in his role as a member of the Advisory Group, was also consulted by my officials in the context of the Section 227 Review of NAMA. Mr. Geoghegan provided my officials with valuable insights and feedback in relation to certain aspects of this review. I would again like to thank Mr. Geoghegan for his contribution to the Section 227 Review of NAMA.
Given the progress of NAMA to date and in light of the conclusions reached through the Section 227 Review, the work of the NAMA Advisory Group has come to an end and the group has been disbanded. The advisory group has played a valuable role and I am satisfied it has served its purpose effectively. I would again like to extend my gratitude to Michael Geoghegan, Denis Rooney and Frank Daly for their time and effort in supporting me through their work on the Advisory Group. The knowledge, expertise and advice the Group has provided during this very important time in Ireland's economic history has been very valuable.
In light of the fact that the Advisory Group will not meet again, I anticipate the total costs relating to the NAMA Advisory Group for 2014 will be below €10,000.
279. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent winding-up of Berehaven Credit Union, the losses, if any, which have been suffered by depositors at that credit union. [34260/14]
View answer281. Deputy Stephen S. Donnelly asked the Minister for Finance the total amount paid to date from the Central Bank of Ireland’s deposit guarantee scheme to depositors at Berehaven Credit Union; the total value of compensation cheques that have been cashed to date; the total value of compensation cheques that have not been cashed; the final date by which compensation cheques must be cashed; and if he will make a statement on the matter. [34262/14]
View answerI propose to take Questions Nos. 279 and 281 together.
I have been informed by the Central Bank, further to the recent winding-up of Berehaven Credit Union, that no depositor suffered a loss as a result of the liquidation of this credit union.
The Central Bank has confirmed that the Deposit Guarantee Scheme, DGS, has issued compensation payments of €11 million to approximately 3,500 depositors of Berehaven Credit Union. There is no deadline for the cashing of compensation cheques. However, cheques over six months old would not normally be accepted by credit institutions. In this regard cheques over six months old would have to be returned to the DGS for re-dating. Obligations of the DGS have been fulfilled in the issuing of compensation cheques. The Central Bank has informed me that it does not publish information on outstanding cheques that have not been presented for payment.
280. Deputy Stephen S. Donnelly asked the Minister for Finance the number of depositors whose deposits were in excess of €100,000 at Berehaven Credit Union at the end of December 2011, December 2012, December 2013 and in July 2014 when the credit union was wound up; his views on these figures; and if he will make a statement on the matter. [34261/14]
View answerThe Central Bank has informed me that detailed information submitted by credit unions in their prudential returns is confidential and commercially sensitive. However, as reported to the Central Bank by Berehaven Credit Union Limited in its prudential returns there were a very small number of depositors with savings in excess of €100,000 at the end of December 2011 and December 2012 and no depositors with saving in excess of €100,000 at the end of December 2013.
For the purposes of the Deposit Guarantee Scheme - DGS - the relevant balances held in Berehaven Credit Union are those held at the time of liquidation in July 2014. In this regard no depositors held over €100,000 at that time.
The Financial Services (Deposit Guarantee Scheme) Act 2009 provides protection to depositors for eligible deposits up to €100,000 and safeguards all eligible deposits in Irish financial institutions. While the liquidation of this entity is a matter for the Central Bank, I am satisfied that all eligible depositors in Berehaven Credit Union received payment of their full deposits under the DGS.
282. Deputy Stephen S. Donnelly asked the Minister for Finance the way the claims by depositors of Berehaven Credit Union will impact upon the Central Bank’s deposit guarantee scheme; which organisations will ultimately bear the cost of honouring the guarantee; if banks generally should be held liable for losses at credit unions; and if he will make a statement on the matter. [34263/14]
View answerI have been informed by the Central Bank that compensation payments were made to members of Berehaven Credit Union from the Deposit Protection Account, DPA, following liquidation of the credit union. This account is operated by the Central Bank and funded by all credit institutions covered by the Deposit Guarantee Scheme, including banks and credit unions. Any sum paid to the Central Bank by the liquidators arising out of the liquidation of Berehaven Credit Union will be credited back to the DPA.
The Deposit Guarantee Scheme was established to ensure that a depositor with a deposit of up to €20,000 was covered where a compensation event occurred in a credit institution. The guaranteed amount was increased in September 2009 from €20,000 to €100,000 per eligible depositor per institution to provide additional reassurance to depositors in Ireland that their savings are safe. The Financial Services (Deposit Guarantee Scheme) Act 2009 confers a legislative imperative on financial institutions, including credit unions, to make a contribution in respect of the DGS.
283. Deputy Stephen S. Donnelly asked the Minister for Finance the frequency with which the National Asset Management Agency issues running accounts or statements of account to its borrowers; the way that frequency compares with traditional lenders such as the banks whose loans NAMA has acquired; the practices NAMA adopts in this area; his views on NAMA’s practices; and if he will make a statement on the matter. [34264/14]
View answerI am advised that NAMA outsources its loan administration activity to participating institutions or third party service providers (collectively termed primary servicers) and that it requires those parties to comply fully with best practice when implementing NAMA's primary servicing or loan account management activity, including the issuance of statements to borrowers. NAMA actively manages the provision of services on its behalf by the participating institutions and third party providers. NAMA's primary servicers are obliged to issue statements to borrowers in accordance with standard banking practice and also in line with the practice that applied in each participation institution prior to NAMA's acquisition of the loans.
284. Deputy Stephen S. Donnelly asked the Minister for Finance the total number of staff employed by the National Asset Management Agency; the number of new staff recruited in 2014; and the number of staff that have left NAMA in 2014. [34265/14]
View answer285. Deputy Stephen S. Donnelly asked the Minister for Finance the staffing requirements at the National Asset Management Agency in light of the review in June and July 2014 which anticipates an accelerated disposal of NAMA's assets and a role for NAMA in the construction of new homes and commercial property; if there will be redundancies at NAMA; if the existing skillsets at NAMA are adequate for NAMA's plans; and if he will make a statement on the matter. [34266/14]
View answerI propose to take Questions Nos. 284 and 285 together.
I am advised that the total number of staff assigned by the NTMA to NAMA was 367 as at end-August 2014. Some 66 new staff members were recruited for assignment to NAMA in 2014 and, in the year to date, 36 have left NAMA or are serving their notice period.
NAMA's future staffing requirements, both in terms of staff numbers and the range of requisite skillsets, are an operational matter for the NAMA Board. I am advised that the board reviews those requirements on an ongoing basis with a view to ensuring that NAMA is well positioned to meet its statutory objectives and the various associated targets which have been set by the board.
I am advised that NAMA is currently engaged in detailed planning so as to facilitate delivery of 4,500 new residential units in Dublin by the end of 2016 and to facilitate planning and other preparatory work for the Dublin Docklands SDZ. The additional recruitment outlined above reflects, in part, NAMA's decision to establish a dedicated Residential Delivery team and a dedicated Docklands SDZ team to co-ordinate and drive progress on these two important initiatives.
286. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent disposal by the special liquidators of the Irish Bank Resolution Corporation of its interest in the Channelside shopping mall in Tampa, Florida for US$7.1 million, and in light of allegations of serious malfeasance in the sale of that asset, and the special liquidators' filing of an intention to abandon the asset, if he has conducted any review into how that asset was managed by the special liquidators; his views on the actions of the special liquidators; and if he will make a statement on the matter. [34267/14]
View answerThe Special Liquidators are in the process of compiling a response to this question which I will forward to the Deputy at the earliest opportunity.
287. Deputy John Browne asked the Minister for Finance the way the EU directive on agreements for consumers relating to residential immovable property is to be transposed into Irish law; the timescale for this to happen; and if he will make a statement on the matter. [34274/14]
View answerThe EU Directive on credit agreements for consumers relating to residential immovable property, commonly known as the Mortgage Credit Directive, was formally adopted on 4 February 2014.
This Directive aims to create a European Union-wide mortgage credit market with a high level of consumer protection. It applies to both secured credit and home loans. Ireland is required to transpose its provisions into national law by March 2016.
My Department is currently conducting a public consultation on the Directive. This consultation will assist the decision making process in relation to provisions in the Mortgage Credit Directive where Member State's discretion is provided for. The consultation document is available at http://www.finance.gov.ie/what-we-do/banking-financial-services/consultations/mortgage-credit-directive-public-consultation
The decision on the mechanism for transposition, whether through Statutory Instrument or through primary legislation, will be made following legal advice and analysis of feedback from the consultation process.
288. Deputy Terence Flanagan asked the Minister for Finance his views on matters regarding the pension levy on private sector pensions (details supplied); and if he will make a statement on the matter. [34282/14]
View answerI announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I have, however, introduced an additional levy on pension funds at 0.15% for 2014 and 2015. I am doing this to, among other things, continue to help fund the Jobs Initiative.
The reduced VAT rate of 9% on tourism and certain other services was one of the very significant and successful measures introduced by the Jobs Initiative. It was due to end in 2013. In my Budget 2014 speech I announced the continuation of the reduced 9% VAT rate. I also announced that the Air Travel Tax is being reduced to zero with effect from 1 April 2014. The 9% VAT rate has helped to create thousands of new jobs as well as protecting existing jobs. Since the Budget announcement about the reduction in the Air Travel Tax, airlines have announced the opening up of new routes resulting in significant increases in passenger numbers with the associated increase in tourism activity and employment.
The additional 0.15% levy for 2014 and 2015 will also be used to help make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties although funds from the levy will not be hypothecated or specifically set aside for this purpose. The Government has decided that such liabilities will be met by the Exchequer as they arise.
While the pension fund levy does not apply to unfunded public service pension schemes, the pensions of public servants, including those of Government Ministers and TDs, have been subject to a public service pension reduction (PSPR) since 1 January 2011. The PSPR was introduced on 1 January 2011 under the Financial Emergency Measures in the Public Interest Act 2010. The PSPR is not a levy, but is a pension cut affecting public service pensions. At the time of its introduction, the PSPR was designed to cut all public service pensions above €12,000 in payment or awarded up to the end of a "grace period", which ultimately expired at the end of February 2012. The PSPR did not originally apply to any pensions of post-grace period retirees, on the basis that their pension awards had otherwise been reduced by being based on actual reduced pay rates reflective of the 2010 pay cuts, not "pre-cut" pay rates as applied to retirees during the grace period. On introduction, the PSPR was estimated as reducing public service pensions by 4% on average, with more severe effects experienced at higher pension levels due to the progressive multi-band structure of the reduction.
A change to the PSPR was made on 1 January 2012, when a 20% reduction rate (previously 12%) was imposed on pension amounts above €100,000. With effect from 1 July 2013, more changes were made to the PSPR to deliver on the Government's commitment to further reducing those public service pensions above €32,500 by between 2% and 5% in certain circumstances, including the pensions above that level of individuals who retired after end- February 2012.
As the Deputy will appreciate, it is very difficult to determine the precise number of jobs that have been created in the economy as result of the Jobs Initiative. However, I would point out that the most up to date data, the Quarterly National Household Survey - Quarter 2, 2014, indicates that an additional 40,300 individuals are employed in the economy when compared to same period in 2011. Furthermore, an additional 23,300 individuals are employed in the tourism and hospitality sectors, which were the sectors that specifically benefit from the reduction in the VAT rate from 13.5% to 9%. Similarly, it is not possible to determine the precise net benefit to the Exchequer as a result of the additional jobs created since the reduction in the VAT rate.
I am informed by the Revenue Commissioners that receipts to date from the 0.6% Stamp Duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011, are €463 million in 2011, €483 million in 2012 and €535 million in 2013.
The position is that all of the money raised from the stamp duty levy has been used to fund the wide range of measures introduced in the Jobs Initiative to protect existing jobs and create new jobs. These include expenditure measures such as the JobBridge and the Springboard schemes, as well as a number of tax and PRSI incentives such as the reduction in the VAT rate from 13.5% to 9% for the tourism and hospitality sectors and the halving of the lower employer PRSI rate.
I am conscious of the significant contribution of taxpayers, generally, to the rebalancing of the public finances and the measures introduced to support and develop the economy. There has been progress in these areas. These efforts are ongoing, including the continuation of measures in the Jobs Initiative, designed to improve the economic environment by providing the means to encourage job creation in areas of our economy most likely to deliver that employment in the shortest timeframe possible.
Preparations for Budget 2015 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment on what changes, if any, are being considered to the pension fund levy or any other tax measure.
289. Deputy Noel Harrington asked the Minister for Finance further to Parliamentary Question No. 31 of 5 June 2014, if the review aimed at streamlining and modernising the scheme has concluded; if it will address the concerns regarding the purchase of a suitable second-hand vehicle and the concessions for motor tax and fuel; and if he will make a statement on the matter. [34290/14]
View answerAs I said in my response of 5 June last, I have asked my officials to examine the regulations surrounding the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme. This process is ongoing. When this exercise is completed, I will consider what may be required to streamline and modernise the scheme.
290. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding inheritance tax; and if he will make a statement on the matter. [34361/14]
View answerCapital Acquisitions Tax (CAT) is the overall name for both gift and inheritance tax.
For the purposes of CAT, the position is that the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.
There are, in all, three separate group tax-free thresholds based on the relationship of the beneficiary to the disponer.
Group A: €225,000 - applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
Group B: €30,150 - applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
Group C: €15,075 - applies in all other cases.
Any prior gifts or inheritances received by a beneficiary since 5 December 1991 from within the same Group threshold are aggregated for the purposes of determining whether any tax is payable on the current benefit.
The CAT tax code includes a specific exemption for gifts and inheritances of residential property, subject to certain conditions.
The principal conditions necessary to qualify for this exemption are that:
- The beneficiary must occupy the residential property as his or her only or main residence throughout the period of three years immediately preceding the date of the gift or date of the inheritance.
- The beneficiary must not, at the date of the gift or inheritance, be beneficially entitled to any other residential property or to any interest in any other residential property.
- The beneficiary must continue to occupy the residential property (or its replacement, if sold) as his or her only or main residence throughout the period of six years commencing on the date of the gift or the date of the inheritance.
On the basis of the information supplied, it is not possible to give a definitive answer regarding the specific case raised by the Deputy. While Revenue has published extensive information in relation to Capital Acquisitions Tax on www.revenue.ie, the family may also contact Jacinta Hunston, Dublin Regional Office, Dublin Castle, Dublin 2, telephone (01) 8589268, e-mail jacintah@revenue.ie to discuss the matter.
291. Deputy Róisín Shortall asked the Minister for Finance if he will keep the mortgage interest relief ceiling at €10,000 for single people and €20,000 for a couple until 2017, in view of the continuing financial difficulties faced by many first-time buyers; and if he will make a statement on the matter. [34366/14]
View answerThe Deputy will be aware that mortgage interest relief has been abolished for homes purchased since 1 January 2013. Up until 2018, tax relief continues to be available for interest paid on all qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, regardless of whether the individuals concerned are first-time buyers or non-first-time buyers.
This Government is committed to helping address the particular problems faced by those that bought homes at the height of the property boom between 2004 and 2008. In this regard, in Budget 2012, I fulfilled the commitment in the Programme for Government to increase the rate of mortgage interest relief to 30 per cent for first time buyers who took out their first mortgage in that period. This was the period during which house prices peaked. This 30% rate will continue to be applicable to these first-time buyers for the remaining years that mortgage interest relief continues to be available. In the absence of this change the mortgage interest relief available would have gradually reduced to a rate of 15%.
Single individuals and couples that are first-time buyers, qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to a ceiling of €3,000 and €6,000 respectively. A large cohort of individuals that bought at the peak of the market have already become subject to the lower ceilings for interest relief. However, the increased rate of relief introduced in Budget 2012, has acted to compensate those individuals.
Given that mortgage interest relief has now lapsed in terms of new qualifying loans, I am not convinced of the merits of revisiting the provisions.
292. Deputy Róisín Shortall asked the Minister for Finance if his attention has been drawn to the practice of some insurers of refusing to quote people for car insurance solely on the basis of their address; if he will clarify the grounds on which insurers can refuse to quote potential customers; if he feels such practices are conducive to the promotion of competition and consumer protection in the insurance industry; and if he will make a statement on the matter. [34367/14]
View answerThe provision of new insurance cover or the renewal of existing cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting and the need to make adequate provisioning to meet these risks. Neither I, as Minister for Finance, nor the Central Bank of Ireland have the power to direct insurers to provide cover to specific individuals or to accept particular risks. Consumer issues are covered by the Central Bank's Consumer Protection Code which amongst other things sets out a series of general principles about how financial service firms (including all insurance companies) should interact with their customers.
Insurance Ireland operates a Declined Cases Agreement, which is adhered to by all motor insurers in Ireland. Under the agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance, if he or she has approached at least three insurers and has not been able to obtain cover from them. The only grounds on which an insurer can refuse cover are where to provide insurance would be contrary to public interest.
This agreement is administered by a Committee comprising representatives of each of the companies who have signed the agreement. The Committee also includes a representative of the Consumers' Association of Ireland and the Financial Services Ombudsman's Bureau as external observers. The Committee can also decide whether a quote is so high or the terms so excessive as to make the quote tantamount to a refusal, in which case it will review the matter. For information on the Declined Cases Agreement contact Insurance Ireland at (01) 676 1914 or by email at info@insuranceireland.eu
293. Deputy Róisín Shortall asked the Minister for Finance the number of IT 38 forms filed with the Revenue Commissioners for the years 2010, 2011, 2012 and 2013. [34369/14]
View answer294. Deputy Róisín Shortall asked the Minister for Finance the number of IT 38 forms filed with the Revenue Commissioners in each of the years 2010, 2011, 2012 and 2013, which referred only to gifts. [34370/14]
View answer295. Deputy Róisín Shortall asked the Minister for Finance the number of CA 24 forms filed with the Revenue Commissioners in each of the years 2010, 2011, 2012 and 2013. [34371/14]
View answer296. Deputy Róisín Shortall asked the Minister for Finance the number of IT 32 forms filed with the Revenue Commissioners in each of the years 2010, 2011, 2012 and 2013. [34372/14]
View answer297. Deputy Róisín Shortall asked the Minister for Finance the number of IT 4 forms filed with the Revenue Commissioners in each of the years 2010, 2011, 2012 and 2013. [34373/14]
View answer298. Deputy Róisín Shortall asked the Minister for Finance the number of IT 4, IT 32, IT 38 and CA 24 forms examined by staff of the Revenue Commissioners with a view to carrying out an audit; the number of actual audits carried out; and the yield arising for each of the years 2008 to 2013 inclusive. [34374/14]
View answer299. Deputy Róisín Shortall asked the Minister for Finance the number of deceased persons in the State in each of the years 2008 to 2013 for whom no CAT return of any type was received. [34375/14]
View answer300. Deputy Róisín Shortall asked the Minister for Finance the total net value assets listed on form IT 38 returns on death only in each of the years 2008 to 2013. [34376/14]
View answer301. Deputy Róisín Shortall asked the Minister for Finance the total net value assets listed on IT 38 forms as gifts only in each of the years 2008 to 2013. [34377/14]
View answer302. Deputy Róisín Shortall asked the Minister for Finance the gross amounts listed on CA 24 forms filed with the Revenue Commissioners as property in the State passing under the will intestacy of the deceased and property outside the State passing under the will intestacy of the deceased for the years 2008 to 2013. [34378/14]
View answer305. Deputy Róisín Shortall asked the Minister for Finance if he will provide an analysis of the capital acquisitions tax take for the years 2010, 2011 and 2012, indicating the value of gifts or inheritances under the various thresholds and the tax take under each threshold. [34381/14]
View answerI propose to take Questions Nos. 293 to 302, inclusive, and 305 together.
I am advised by the Revenue Commissioners that following changes introduced in the Finance Act 2010, a new computer system for dealing with CAT returns was put in place. With regard to information requested for years prior to 2010 which was stored on a legacy IT system, it has not been possible to provide all information in the level of detail requested by the Deputy.
The number of IT 38 forms filed with the Revenue Commissioners for and in the requested years of assessment is as follows:
|
Year of assessment |
Number of IT38 forms for the year |
Number of IT38 forms filed in the year |
|
2010 |
18,684 |
11,545 |
|
2011 |
17,903 |
18,337 |
|
2012 |
15,183 |
18,478 |
|
2013 |
6,223 |
17,792 |
The number of IT38 forms filed with the Revenue Commissioners for and in each of the requested years of assessment referring only to gifts is as follows:
|
Year of assessment |
Number of IT38 forms for the year |
Number of IT38 forms in the year |
|
2010 |
3,647 |
2,264 |
|
2011 |
4,013 |
3,626 |
|
2012 |
2,783 |
4,058 |
|
2013 |
947 |
3,623 |
The number of CA24 Forms filed with the Revenue Commissioners in the years 2010, 2011, 2012, 2013 and 2014 is as follows:
|
Year |
Number of CA24's Filed |
|
2010 |
9,576 |
|
2011 |
13,548 |
|
2012 |
12,946 |
|
2013 |
12,484 |
|
2014 |
11,064 |
According to records held by the Revenue Commissioners the total number of IT32 and IT4 forms filed for years 2011 to 2013 is as follows:
|
Year |
IT32 forms filed |
IT4 forms filed |
|
2011 |
96 |
16 |
|
2012 |
105 |
25 |
|
2013 |
98 |
18 |
The aggregate number of IT4 forms and IT32 forms filed in 2010 was 100. It has not proved possible for that year to provide an analysis by reference to the tax year for which these returns were filed.
In the years 2008 to 2010 the Forms IT4, IT32, IT38 AND CA24 were paper based returns which were input on to Revenue's computer systems by Revenue staff. As part of this process, the returns were also manually screened and if Revenue staff identified any issues requiring further examination these were referred for possible audit. This approach continues to be the case for Forms IT4 and IT32.
Following the introduction of new IT systems in 2010, all of these returns are processed by Revenue's risk analysis computer systems and cases where issues are identified are referred for possible audit.
The number of CAT audits and the resulting yield for the years 2008 to 2013 is set out in the following table:
|
Year |
No of Audits |
Yield |
|
2008 |
61 |
610,528 |
|
2009 |
52 |
1,119,030 |
|
2010 |
52 |
857,616 |
|
2011 |
51 |
886,266 |
|
2012 |
56 |
8,973,270 |
|
2013 |
77 |
2,857,829 |
|
Totals |
349 |
15,304,538 |
Data in relation to the number of deceased persons in the State are not maintained by Revenue and there is no general obligation to file CAT returns. Revenue's compliance and risk assessment programmes in relation to deceased persons are focussed on the estates of deceased persons only where a liability to tax is likely to arise. Liability to Capital Acquisitions Tax, if any, arises to beneficiaries of the estates of deceased persons, taking account for example of thresholds and interspousal transfers.
The figures in the following table are the total net value assets listed on forms IT38 in each of the years 2008 to 2013 including returns on death and returns of gifts. Revenue is unable to differentiate between assets received on inheritance and by gift. The figures are drawn from returns filed after the changes produced by the Finance Act, 2010.
|
- |
2008 - €000 |
2009 - €000 |
2010 - €000 |
2011 - €000 |
2012 - €000 |
2013 - €000 |
|
Market value |
434,768 |
1,564,402 |
2,381,778 |
3,242,304 |
1,866,360 |
588,828 |
|
Reliefs/exemptions |
21,878 |
83,018 |
145,034 |
243,958 |
109,535 |
29,329 |
|
Expenses |
10,650 |
41,580 |
42,691 |
37,281 |
35,901 |
11,766 |
|
Net value of assets |
402,240 |
1,439,803 |
2,194,053 |
2,961,066 |
1,720,923 |
547,733 |
Revenue is, in the time available, unable to assemble the information requested in respect of the gross amounts listed on forms CA24 filed with the Revenue Commissioners for property in the State passing under the will intestacy of the deceased and property outside the State passing under the will intestacy of the deceased for the years 2008 to 2013. Revenue is endeavouring to collate this information and I will arrange for the available material to be forwarded to the Deputy in due course.
The estimated breakdown of yield from Capital Acquisitions Tax (CAT) for the years in question is as follows:
|
Year |
Inheritance Tax €m |
Gift Tax €m |
Discretionary Trust Tax €m |
*Probate Tax €m |
|
2010 |
186.2 |
46.8 |
3 |
0.5 |
|
2011 |
213.5 |
27.1 |
2.4 |
0.2 |
|
2012 |
254.3 |
25.8 |
2.9 |
0.2 |
*Abolished in respect of deaths occurring on or after 6 December 2000
Information regarding the value of gifts or inheritances under the various thresholds and the tax take under each threshold is not available. However on the basis of the taxable values of gifts or inheritances liable to tax, the breakdown of the 2010, 2011 and 2012 yields from Inheritance Tax and Gift Tax by Group Thresholds A, B and C are estimated as follows:
|
Group threshold relationship to disponor |
% of total Inheritance tax and Gift tax |
- |
- |
|
|
2010 |
2011 |
2012 |
|
A - Son/Daughter |
28 |
30 |
37 |
|
B - Parent/Brother/ Sister/Niece/ Nephew/Grandchild |
51 |
51 |
46 |
|
C - Relationship other than Group A or B |
21 |
19 |
17 |
