Written Answers Nos. 146-163
146. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection if she will restore income and child disregards to pre-budget 2013 levels under farm assist with means test of the current income position; and if she will make a statement on the matter. [35927/14]
View answerThis year the Department will spend approximately €91.6 million on the farm assist scheme and it is expected that an average of 9,900 individuals will be in receipt of this payment each week. The farm assist scheme is based on jobseeker’s allowance and recipients retain all the advantages of the jobseeker’s allowance scheme such as retention of secondary benefits and access to activation programmes.
Recent changes to the scheme have brought it into closer alignment with the jobseeker’s allowance scheme’s treatment of self-employed persons.
Farm assist is a flexible payment and any farmer experiencing lower levels of income or cash-flow issues can ask his/her local social welfare/Intreo office to review the level of means applying to their claim.
The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.
Any changes to the scheme would be a matter for Government to consider in a Budgetary context.
147. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Social Protection the remuneration package for each chief executive officer of State or semi-State organisations under the aegis of her Department; the changes made to such remuneration in the past two years; the remuneration package for each acting CEO if such exists; and if she will make a statement on the matter. [35953/14]
View answerThe non-commercial State sponsored bodies that operate under the aegis of the Department are the Pensions Authority and the Citizens Information Board (CIB). The Office of the Pensions Ombudsman also comes under the remit of the Department. Their remuneration packages, before and after implementation of the Haddington Road agreement, are outlined in the following table.
Remuneration Packages for CEOs of agencies under the aegis of the Department of Social Protection
|
- |
Annual salary Post Implementation of the Haddington Road Agreement 2014 € |
Annual Salary Post Implementation of the Haddington Road Agreement 2013 € |
Annual salary Pre Implementation of the Haddington Road Agreement 2013 € |
Annual salary Pre Implementation of the Haddington Road Agreement 2012 € |
|
CEO Citizens Information Board |
Salary scale: 109,581 to 115,576 |
Salary scale: 109,581 to 115,576 |
Salary scale: 116,935 to 123,452 |
Salary scale: 116,935 to 123,452 |
|
CEO The Pensions Authority |
143,535 |
143,535 |
153,885 |
153,885 |
|
Pensions Ombudsman |
112,924 |
112,924 |
120,570 |
125,655 |
The CEO from the CIB retired in August of this year and the position was advertised in July through the Public Appointments Service. An acting CEO has been assigned to the post pending the appointment of the replacement CEO and will been remunerated at a salary scale of €109,581 to €115,576 after 84 days in the acting position in accordance with the Department of Public Expenditure and Reform guidelines governing higher duty allowances.
148. Deputy Stephen S. Donnelly asked the Minister for Finance the number of buildings that the Revenue Commissioners has classed as inhabitable for local property tax purposes; and if he will make a statement on the matter. [35333/14]
View answerFor Local Property Tax purposes a residential property is defined as any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling. I am informed by the Revenue Commissioners that the number of residential properties on the Local Property Tax (LPT) register is in the order of 1.95 million. Based on returns filed to date, about 1.85 milliom properties are liable for LPT. This reflects the compliance rate of 95% achieved for 2013.
Additional LPT statistics are available on the Commissioners' website at: Local Property Tax Statistics. I am further advised by the Commissioners that they intend to publish updated compliance statistics in due course.
If the Deputy is seeking statistics in respect of uninhabitable properties, I am advised by the Commissioners that these properties are not liable for LPT since they do not meet the criteria of being "used or suitable for use as a dwelling". The Commissioners have also confirmed that as LPT is a self-assessed tax, it is a matter for a property owner to determine whether their property comes within the definition of a liable property. Where a property is regarded as uninhabitable and thereby not liable to LPT, the owner is not required to file an LPT Return in respect of that property. Consequently, the Commissioners advise that they are not in a position to provide statistics on uninhabitable properties in the State.
I am further advised that a property that was not liable to LPT on 1 May 2013 on the basis that it was uninhabitable will not be liable to LPT for the years 2013 to 2016. If such a property were to be refurbished to make it suitable for use as a dwelling by 1 November 2016 then it will be liable to LPT for 2017 and subsequent years.
149. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been further drawn to the pressure being placed on the Garda to resolve a series of issues resulting from this practice; if his attention has also been drawn to the financial hardship being placed on motorists who through no fault of their own have lost considerable money as a result of this practice; if he will instruct management at the Garda to allocate extra resources to affected areas as a matter of urgency. [35797/14]
View answer150. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure being placed on Customs and Excise to resolve a series of issues resulting from this practice; if his attention has also been drawn to the financial hardship being placed on motorists who, through no fault of their own, have lost considerable money as a result of this practice; and if he will ask the Motor Insurance Bureau of Ireland to investigate the matter and ascertain if it may have a role in compensating affected motorists. [35798/14]
View answer152. Deputy Michael Ring asked the Minister for Finance the help, support and-or redress available for car owners whose vehicles have been allegedly damaged by contaminated petrol; the action taken in this regard; if an official investigation has been commenced by the Garda authorities; and if he will make a statement on the matter. [35865/14]
View answer154. Deputy Robert Troy asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure that has been placed on Customs and Excise to resolve a series of issues resulting from this practice; if his further attention has been drawn to the financial hardship that has been placed on motorists who through no fault of their own have lost considerable money as a result of this practice; if he will instruct management at the Customs and Excise and at the Revenue Commissioners to treat this issue as matter of urgency; and if he will make a statement on the matter. [36093/14]
View answer174. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been further drawn to the pressure being placed on Customs and Excise to resolve a series of issues resulting from this practice; if his attention has also been drawn to the the financial hardship that has being placed on motorists who through no fault of their own have lost considerable money as a result of this practice; if he will instruct management at the Customs and at Revenue to treat this issue as a matter of urgency; and if he will make a statement on the matter. [35796/14]
View answer179. Deputy Michael Ring asked the Minister for Finance the help, support and-or redress available for car owners whose vehicles have been allegedly damaged by contaminated petrol; the action that will be taken in this regard; if an official investigation has commenced by the Office of the Revenue Commissioners or the Customs and Excise; and if he will make a statement on the matter. [35869/14]
View answerI propose to take Questions Nos. 149, 150, 152, 154, 174 and 179 together.
I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to the Exchequer and to consumers by all forms of fuel fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years and now media reports indicate the emergence of another form of fuel fraud, commonly referred to as petrol-stretching. This involves the illegal addition of kerosene or some other low tax commodity to petrol to defraud the Exchequer and the motorist.
Petrol stretching is an offence under S102(1A) Finance Act 1999 and carries a penalty on summary conviction of €5,000 or, at the discretion of the court to imprisonment for a term not exceeding 12 months, or both. If convicted on indictment the fine is to a maximum of €126,970 and the prison term is to a maximum of five years or both.
I am advised by Revenue that they are investigating the recent reports concerning petrol stretching and have been in contact with the motor trade in this regard. I am also advised that they have taken samples from a number of filling stations that it has claimed may have been the source of adulterated fuel. These enquiries will seek to establish if there is evidence that kerosene has been added to the petrol being sold by the retailers in question and whether there is evidence to support a prosecution.
Revenue and the oil sector have cooperated very successfully to tackle diesel laundering and I am confident that with this cooperation, and with the supply chain information available to Revenue, the problem of petrol stretching can also be tackled successfully. In this regard it is essential that petrol distributors report on any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific retailers are shifting some of their sourcing to laundered or 'stretched' fuel.
Motorists themselves should take care about where they source their petrol from, and report any suspicions concerning the source of adulterated petrol that may have damaged their engines to Revenue. Revenue will investigate such reports and pursue prosecutions against offenders where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices such as petrol stretching.
A key part of the mineral oil tax regulatory system to protect the Exchequer and consumers is the licensing system that ensures that dealers in mineral oil, including forecourt operators, keep proper records and only source and supply legitimate fuel. At Revenue's request, I have strengthened the legislative framework to refuse and /or revoke mineral oil licences. Revenue has been very pro-active in this sector over the last three years and from mid-2011 to the end of August 2014, 132 filling stations were closed, mainly for breaches of licensing conditions.
I will carefully consider any new proposals by Revenue to ensure that the licensing system is robust and acts to protect consumers, the legitimate trade and Exchequer receipts.
I would also like to advise the Deputies that the first point of contact for motorists whose vehicles have been affected should be the insurance companies they hold their policies with. Further to that, those affected should also contact the point of purchase and seek redress through them. If they remain unsatisfied they may have recourse to civil remedies and as such could seek legal advice.
151. Deputy Eric Byrne asked the Minister for Finance the reason Ireland abstained on a recent UN vote (details supplied) when other EU countries mainly abstained; and if he will make a statement on the matter. [35813/14]
View answerI understand from contact with the Deputy's office that the intended question was why Ireland voted no on the recent UN vote. As I stated in response to Question No. 180 on 17 September 2014, Ireland recognises the importance of an appropriate international agreement regarding sovereign debt restructuring due to its significant economic, social and financial implications.
In common with other EU Member States, Ireland was unable to support the recent UN resolution on a multilateral legal framework for sovereign debt restructuring, and this position was based on shared concerns regarding the substance of the resolution and the process followed in proposing it, particularly with respect to the pace at which this complex proposal was launched, the timing of the proposal at the end of a session of the General Assembly, and the pre-determined outcome which it prescribed.
Together with many other UN member states, Ireland is actively engaged in ongoing processes that address, and seek to identify solutions to, the issue of sovereign debt restructuring. Ireland considers that the work being undertaken in other fora such as the IMF and the upcoming third International Conference on Financing for Development in 2015 offers more appropriate and established means to progress dialogue on the matter.
Ireland has always had concern for developing countries experiencing debt problems. In this regard, Ireland continues to support processes aimed at resolving these problems through progressing dialogue, in the most appropriate forum and using the most appropriate and effective mechanisms, to best support these countries.
I would like to draw the Deputy's attention to the detailed statement made on behalf of the European Union to the General Assembly of the United Nations in this matter, which is available at http://eu-un.europa.eu/articles/en/article_15455_en.htm. The statement explains the reasons EU member states could not support the resolution and represents the views of member states, both those who abstained on the vote and those such as Ireland who voted against.
153. Deputy Catherine Murphy asked the Minister for Finance the number of cases of legal action which were initiated against the Revenue Commissioners' sheriffs in the past five years; of each case, the number which were settled out of court and the number of settlements which contained secrecy clauses; and if he will make a statement on the matter. [35878/14]
View answer180. Deputy Catherine Murphy asked the Minister for Finance the number of the approximately 30,000 actions of the Revenue Commissioners' sheriffs in 2011, 2012 and 2013 which involved the seizure of computers; if he will indicate how this equipment is stored and the way in which they were sold off; the estimated value of the seizures and the total sums realised from sales; and if he is satisfied that this is carried out in compliance with existing data protection legislation. [35873/14]
View answer181. Deputy Catherine Murphy asked the Minister for Finance the number of the approximately 30,000 actions of the Revenue Commissioners' sheriffs in 2011, 2012 and 2013 which involved the seizure of tools of a trade and third party items seized; and the way in which this was monitored. [35875/14]
View answer182. Deputy Catherine Murphy asked the Minister for Finance the number of cases of legal action which were initiated against the Revenue Commissioners in the past five years; the number of cases of legal action which were initiated against the Revenue Commissioners' sheriffs in the past five years; of each case, the number which were settled out of court and the number of settlements which contained secrecy clauses. [35877/14]
View answerI propose to take Questions Nos. 153 and 180 to 182, inclusive, together.
I am advised by Revenue that it only refers outstanding tax arrears cases to its enforcement agents, including Sheriffs, where there has been no realistic engagement by the defaulting taxpayer to agree mutually acceptable payment solutions. Revenue's commitment in this regard is clearly evidenced by the fact that in each of the years specified by the Deputy there were almost 16,000 taxpayers facilitated with phased payment arrangements in preference to deploying debt collection/enforcement options.
As I have advised the Deputy in reply to previous questions on this issue, Sheriffs are officers of the Court, holding office under Section 12 of the Court Officers Act, 1945 and are not accountable to Revenue for their debt collection activities. Their activities in this regard are generally covered by the Enforcement of Court Orders Act, 1926, as amended. The execution of Revenue certificates (warrants) is specifically provided for in Section 960L of the Taxes Consolidated Act 1997, as amended. When acting in execution of such tax certificates, Sheriffs are governed by the general law, which applies to the collection of civil debts of all kinds, and not by the provisions of the Tax Acts and are answerable before the courts for any breach of the civil debt collection law.
For this reason, data is not collated by Revenue in a manner that would facilitate the provision of a response to the Deputy's questions relating to the seizure, storage and sale of goods, including tools of the trade and computers, by Sheriffs in the years 2011, 2012 and 2013. Revenue could confirm to me however that Sheriffs only undertake seizures in a very small minority of cases and only after the defaulting taxpayer has not engaged with requests for payment. The money secured by the Sheriffs through such activities is paid over to Revenue in settlement or part settlement of the outstanding debt minus the operational fees and expenses incurred.
As I have also previously informed the Deputy, I understand that the Sheriffs operate a Code of Practice, available from any Sheriff or on Revenue's website, which sets out how Sheriffs will engage with taxpayers in relation to their tax collection enforcement activities. For example, it includes commitments that when goods are seized, a written inventory is given to the taxpayer as soon as possible, and there is a commitment to furnish the taxpayer with an account of the proceeds of the sale of any goods seized. The Code also sets out the process whereby a taxpayer may make a complaint and how it will be handled.
In regard to Question No. 180 on data protection, this issue is primarily a matter for my colleague the Minister for Justice, Equality and Law Reform to answer. However, I am informed that Sheriffs are subject to the provisions of the Data Protection Acts and I believe that the Minister has already responded to the Deputy on this issue.
In regard to Question No. 182, since January 2009, there have been 125 legal cases in total (not relating to Sheriff action) initiated against Revenue, consisting of 76 general court actions and 49 judicial reviews. Of these, Revenue reached settlement in ten cases with three cases subject to confidentiality clauses. Cases are only settled following legal advice from the Revenue Solicitor's Division and Counsel. Confidentiality clauses are standard practice in the settlement of cases and are subject to negotiation between both parties' legal representatives.
Revenue has also received personal injury and property damage claims that are handled by the State Claims Agency as delegated to it under the National Treasury Management Agency (Amendment) Act 2000. Statistics for these claims since January 2009 is not currently available to Revenue and will be forwarded as soon as received from the State Claims Agency.
Because Sheriffs are not directly accountable to Revenue, the Commissioners do not have data in relation to the number of cases of legal action taken against them (the Sheriffs) in the past five years.
Revenue does however liaise with the individual Sheriffs through a dedicated unit that ensures the timeliness and accuracy of referrals and payments between both parties and also deals with various issues that arise in individual cases. Given the number of Questions that the Deputy has raised on this issue to date, it may be that she has a particular case in mind. That being the situation, Revenue has confirmed to me that it will investigate the circumstances of the case with the relevant Sheriff if the Deputy provides the case details.
Finally, I am satisfied that Revenue operates a very balanced approach in the deployment of its enforcement powers including referrals to the Sheriffs. I specifically want to commend the Commissioners for taking a proactive approach where possible in assisting viable businesses and taxpayers to meet their tax obligations through agreed arrangements in preference to debt collection/enforcement proceedings.
155. Deputy Robert Troy asked the Minister for Finance in view of the high percentage excise increase of wine in the past two budgets, if he will refrain from any excise increase in this budget. [35225/14]
View answerIt is not my practice to comment on what measures may or may not be introduced in advance of the Budget.
156. Deputy Jack Wall asked the Minister for Finance the position regarding a rent relief form in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [35229/14]
View answerI have been advised by the Revenue Commissioners that they have received a Form Rent 1 from the person concerned. However, as the form has not been fully completed it is not possible at present to process the claim. Revenue has written to the person concerned to obtain the details that were omitted from the application form. The application will be processed on receipt of these details.
157. Deputy Pearse Doherty asked the Minister for Finance the reason Irish dancing and ballet lessons are treated differently for VAT purposes; if there are any legal impediments to treating Irish dancing lessons as a cultural activity and to charging them at 9%; and the cost to the Exchequer of such a change. [35234/14]
View answer163. Deputy Michael Lowry asked the Minister for Finance if he will review the VAT rate in place for Irish dancing; his views that this rate is fair when compared to the 0% rate for ballet; if he will reduce the VAT rate for Irish dancing given its cultural importance; and if he will make a statement on the matter. [35334/14]
View answerI propose to take Questions Nos. 157 and 163 together.
The EU VAT Directive, with which Irish VAT legislation must comply, provides a public interest exemption for education. This exemption is set out in paragraph 4(3) of Schedule 1 of the Value-Added Tax Consolidation Act 2010 as children's or young people's education and school or university education provided by educational establishments recognised by the State and education of a similar kind provided by other persons. Ballet schools are regarded as providing VAT exempt education of a similar kind.
With regard to reducing the VAT rate applicable to Irish dancing, the VAT Directive does not allow for the application of a reduced VAT rate to dance lessons in general.
The Deputy refers to cultural activities. Paragraph 5(2) of Schedule 1 of the VAT Consolidation Act provides for an exemption for cultural services provided by recognised cultural bodies but Irish dance lessons are not provided by a recognised cultural body. I would point out that Schedule 1 does provide a VAT exemption for the promotion of, and admission to, live theatrical or musical performances where food or drink is not provided during the performances. It would appear that the admission fees to most feiseanna would benefit from this VAT exemption.
158. Deputy Pearse Doherty asked the Minister for Finance the steps he will take to establish a publicly available register of beneficial owners of companies and trusts in Ireland, as distinct from supporting a system where beneficial ownership can be established; and if he will make a statement on the matter. [35267/14]
View answerThe requirement to obtain and hold information on beneficial ownership stems from the provisions of the proposed 4th Anti-Money Laundering Directive which seeks to update the 3rd Directive to take account of the February 2012 revision of the international standards for anti-money requirements the recommendations of the Financial Action Task Force (FATF). A general council agreement was reached on this file on 18 June 2014 giving Council a mandate to commence negotiations with the European Parliament.
The proposed 4th Anti-Money Laundering Directive covers a number of policy areas which come under the responsibility of a range of Departments and Offices. Arising from consultation with the relevant Departments and Offices, Ireland's position in the negotiations has been to support the view that beneficial ownership should be known. Under the current text Member States will be required to ensure the beneficial ownership information on corporate and other legal entities, and trusts is held in a specified location so that it can be accessed in a timely manner. In fact there are already provisions in place which allow for enforcement authorities and other shareholders to identify beneficial owners of companies when required. Furthermore trusts are subject to robust reporting requirements under current taxation and anti-money laundering legislation.
The new Directive will inter alia require amendment of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 and we await final agreement of the specific provisions in the text with the European Parliament before commencing with the cross-Departmental transposition work.
159. Deputy Pearse Doherty asked the Minister for Finance if the fourth revision of the Anti-Money Laundering Directive will prevent him in any way from establishing a publicly available register of beneficial owners of companies and trusts here; and if he will make a statement on the matter. [35268/14]
View answerIt should be noted that further negotiations need to take place between the EU parliament and the Council to finalise the text of the 4th Anti-Money Laundering Directive ("4AMLD").
The text as agreed by Council provides that beneficial ownership information be made available in specified circumstances. Our position has always been in favour of greater transparancy in relation to beneficial ownership. I understand that there has been further debate on this issue in the Trilogue negotiations with Parliament. Our transposition process will commence on completion of that process.
160. Deputy Dominic Hannigan asked the Minister for Finance if he has considered the proposals being put forward by the graduate entry medicine debt relief campaign in its pre-budget submission; and if he will make a statement on the matter. [35280/14]
View answerMy Department has so far received in excess of 500 Pre-Budget Submissions from a wide range of groups and individuals. These are being considered by the relevant officials in the context of Budget and Finance Bill preparation.
I can confirm that submissions on this topic have been received. However, as the Deputy will be aware, it is not the practice of the Minister for Finance to discuss the details of measures which may be under consideration as part of the budget and Finance Bill.
161. Deputy Pearse Doherty asked the Minister for Finance if he will bring forward legislation to amend the universal social charge rates payable on 1 January 2015. [35303/14]
View answerThe Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and the Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit. It is a more sustainable charge than those it replaced. It is applied at a low rate on a wide base, and the revenues collected play a vital part in meeting the many expenditure demands placed on the Exchequer.
As a result of a review of the USC conducted by my Department in 2011, the Government decided in Budget 2012 to increase the entry point to the Universal Social Charge from €4,004 to €10,036 per annum. It is estimated that this removed almost 330,000 individuals from the charge.
With Budget 2015 only three weeks away, I am not prepared to be drawn into speculation on budgetary matters at this time. However, I will say that as part of the normal budgetary preparations, my officials are currently examining potential options for changes to the tax system for my consideration as part of the overall Budget package.
162. Deputy Terence Flanagan asked the Minister for Finance the position regarding tax bands for self employed persons (details supplied); and if he will make a statement on the matter. [35305/14]
View answerIncome tax is payable at 20% on earnings of up to €32,800 per annum for single individuals regardless of whether they are employees or self-employed. Earnings above this amount are subject to income tax at 41%.
As the Deputy will be aware however, employees in the PAYE system benefit from a PAYE income tax credit worth €1,650 per annum, to which the self-assessed are not entitled. The PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self-employed generally then had the advantage of paying tax on a preceding year basis. The argument was also made at the time that the general scheme of allowances for expenses discriminated against employees and in favour of other taxpayers.
There have been some changes since 1980. For example, the self-employed now pay tax on a current year basis. In addition, the PAYE allowance has become a tax credit. However, significant timing benefits remain, depending on the accounting period used by the taxpayer. In addition, the expenses regime for self-assessed taxpayers remains somewhat more liberal than that afforded to employees and therefore the self-employed can actually pay less tax when compared to a PAYE worker on the same income.
With Budget 2015 only three weeks away, I am not prepared to be drawn into speculation on budgetary matters at this time. However, I will say that as part of the normal budgetary preparations, my officials are currently examining potential options for changes to the tax system for my consideration as part of the overall Budget package.
