Wednesday, 8 Oct 2014

Written Answers Nos. 61-70

Excise Duties

Questions (61, 63)

Robert Troy

Question:

61. Deputy Robert Troy asked the Minister for Finance in view of the repeatedly increased alcohol tax, if he will refrain from any increase in this budget. [38396/14]

Arthur Spring

Question:

63. Deputy Arthur Spring asked the Minister for Finance his views on reducing excise on alcohol; and if he will make a statement on the matter. [38487/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 61 and 63 together.

It is not my practice to comment on what measures may or may not be introduced in advance of the Budget.

Excise Duties

Questions (62)

Thomas P. Broughan

Question:

62. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer from decreasing the excise duty on a litre of petrol by 5 cent and decreasing the excise duty on a litre of diesel by 3 cent. [38435/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the Budget 2015 Ready Reckoner, available on the Commissioners website at http://www.revenue.ie/en/about/statistics/index.html, shows a number of indicative changes to Excise Duty on unleaded petrol and diesel. While the Ready Reckoner shows illustrative increases in Duty rates, the cost of the specific decreases requested by the Deputy can be broadly assumed to be in the same magnitude as the yields shown from equivalent increases in rates.

Question No. 63 answered with Question No. 61.

Tax Compliance

Questions (64)

Eoghan Murphy

Question:

64. Deputy Eoghan Murphy asked the Minister for Finance if it was obligatory in 2002 for a purchaser of a house to pay stamp duty on the contract if all of the purchase money had been paid to the vendor and there was no purchase deed and the purchaser was in occupation; if this was the law at the time; if the Revenue Commissioners pursued those builders for the stamp duty where they had breached this law; if the Revenue Commissioners were unaware of the practice at the time, when was it brought to their attention subsequently; the cause of the delay of the activation of prepared legislation in this area; and the amount of money lost to the State on development land as a result. [38489/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that stamp duty, which is mainly chargeable on instruments, such as deeds of conveyance or transfers of property, was mandatory in relation to instruments executed in 2002. Where an instrument was executed in 2002 stamp duty was generally payable within 30 days of its execution. Interest and penalties were applicable where an instrument was not stamped within this time limit. The person accountable for payment of stamp duty was the purchaser or  transferee.

I take it the Deputy's  question  relates to a number of arrangements, such as the use of resting in contract, building licences and agreements for lease, whereby developers could, in effect, acquire and develop land without incurring a liability to stamp duty.  Legislation was introduced in Section 110 of Finance Act 2007 to address these matters, subject to a commencement order.  The then Minister for Finance commissioned a report on the potential effects of commencing these provisions. The report recommended that, on balance, the section should not be commenced at that time as it would have led to a rise in land prices with a knock-on increase in house prices, especially for first-time buyers, and possibly risked exacerbating the downturn in the property market. 

The legislation was further amended by Section 82 of Finance (No 2) Act 2008, taking on board the recommendation of the report. The redrafted provision exempted public private partnership arrangements from the scope of the legislation and commencement was again made subject to commencement from a date to be appointed by the Minister for Finance. In the light of the economic climate at the time, commencement of the legislation was deferred. 

The Deputy will be aware that, having regard to the subsequent reduction in the rates of Stamp Duty from up to 9% down to 1% to 2% and having regard to the economic climate in 2013, I introduced legislation (Section 78 of Finance Act 2013) which contained similar provisions to those not commenced in 2008.  The effect of these provisions is that if any of these arrangements were entered into on or after 13 February 2013, stamp duty would be payable on foot of the arrangements.

Fuel Laundering

Questions (65)

Fergus O'Dowd

Question:

65. Deputy Fergus O'Dowd asked the Minister for Finance the cost of cleaning up the countryside as a direct result of diesel laundering and dumping of waste in local authority areas, particularly in Border counties, for each of the past three years; the action taken to curb same; the numbers prosecuted; the result of increased co-operation between State agencies north and south of the Border to fight this crime; when the new marker resistant to all known fuel laundering will be introduced; and if he will make a statement on the matter. [38512/14]

Written answers

Minister for Finance

I will address the aspects of the Deputy's question that relate to diesel laundering, cross border cooperation between State agencies and fuel markers.

The Revenue Commissioners, who are responsible for combating fuel fraud, advise me that they have prioritised the problem of diesel laundering and have implemented a comprehensive strategy to tackle the problem through enhanced supply chain controls, the acquisition of a more effective fuel marker and continued robust enforcement action.

Revenue's strategy includes the following elements:

- The licensing regime for auto fuel traders was strengthened with effect from September 2011 to limit the ability of the fuel criminals to get laundered fuel onto the market;

- A new licensing regime was introduced for marked fuel traders in October 2012, which is designed to limit the ability of criminals to source marked fuel for laundering;

- New requirements in relation to fuel traders' records of stock movements and fuel deliveries were introduced to ensure data are available to assist in supply chain analysis;

- Following a significant investment in the required IT systems, new supply chain controls were introduced from January 2013. These controls require all licensed fuel traders, whether dealing in road fuel or marked fuel, to make monthly electronic returns to Revenue of their fuel transactions.  Revenue is using this data to identify suspicious or anomalous transactions and patterns of distribution that will support follow-up enforcement action where necessary, and

- An intensified targeting, in co-operation with other law enforcement agencies on both sides of the border, of enforcement action against suspected fuel laundering operations.

In addition to the measures implemented to date, Revenue and Her Majesty's Revenue and Customs in the UK completed an Invitation to Make Submissions process to identify a more effective fuel marker and it is expected that a new marker will be introduced in both jurisdictions early in 2015, following consultation with the oil industry and other stakeholders.

To support further the integrity of the distribution system and minimise the risk of fraud, I introduced a provision in the Finance (No. 2) Act 2013 that will make a supplier who is reckless in supplying rebated fuel for a use connected with excise fraud liable for the duty at the standard rate of tax. This new provision will strengthen Revenue's hand in dealing with those traders supplying rebated fuel recklessly to dubious customers and will provide a further disincentive to such activity. Revenue has published guidelines for mineral oil traders which will assist them in identifying and avoiding such transactions.

Revenue works very closely with fuel sector representative bodies in tackling the problem and these bodies have been very supportive of the measures introduced to combat fuel laundering.  Revenue chairs the Hidden Economy Monitoring Group to facilitate traders reporting suspicious matters through their representative associations on a confidential basis.  This information can assist Revenue in closing down the illicit trade by identifying traders supplying fuel to launderers and by identifying outlets that are selling laundered diesel. 

I am advised also that the Revenue Commissioners work in close cooperation with other enforcement authorities, in this jurisdiction and in Northern Ireland, in combating this all-island problem. The Cross Border Fuel Fraud Enforcement Group, which includes representatives of the Revenue Commissioners, An Garda Síochána, Her Majesty's Revenue and Customs and the Police Service of Northern Ireland and other relevant organisations, was established to facilitate this cooperation, and has proven effective in supporting the identification and targeting of the organised crime gangs, many of whom have links to paramilitaries and former paramilitaries, that are responsible for the bulk of fuel fraud. All enforcement authorities engaged in combatting fuel fraud are committed to working closely together on an ongoing basis in this important work. Revenue's enforcement strategy in the fuel sector has already yielded significant results.  Since the beginning of 2011, over 3 million litres of fuel have been seized and 29 oil laundries detected and closed down, including 9 oil laundries in 2013. In addition, over 130 filling stations have been closed in that period. In the past 18 months Revenue has secured 6 convictions for mineral oil offences and a further 16 prosecution cases are underway. 

The evidence available to Revenue, in terms of feedback from the legitimate trade and increased consumption of road diesel, indicates that the strategy has been effective. The legitimate trade indicates that the incidence of laundered diesel on the market has dropped significantly and that they have experienced an increase in road diesel sales.  This is supported by tax data which shows road diesel consumption has increased significantly over the past couple of years.

Excise Duties

Questions (66)

Tom Fleming

Question:

66. Deputy Tom Fleming asked the Minister for Finance his views on correspondence (details supplied) regarding the negative impact that consistent excise duty has on all alcohol products and the resultant closure of pubs and job losses; in view of budget 2015 if he will take cognisance of the fact that in the drinks industry there are 92,000 jobs, €2 billion in wages, 8,298 hotels and pubs and 44 distilleries and brewers; and if he will make a statement on the matter. [38514/14]

Written answers

Minister for Finance

The correspondence attached to the Deputy's question makes a number of points in relation to excise duty increases in Budgets 2013 and 2014.  The correspondence also refers to the incentive for cross-border shopping and the risks to tourism resulting from increases in excise on alcohol.

The increases to excise duty on alcohol in Budgets 2013 and 2014 must be seen firstly in the context of the Government's need to raise revenue to provide services.  Secondly, these increases should not be viewed in isolation but together with the history of excise rates on alcohol in Ireland.  To this end I would remind the Deputy that excise duties on alcohol were reduced significantly in Budget 2010 and also that the rate of duty on spirits and beer remained largely unchanged between 2002 and 2009.  It should also be noted that the excise, as a proportion of the pint, is lower now in 2014 than it was 10 years ago.

In relation to the points raised about tourism, I would point out that in July 2011 I introduced a 9% reduced VAT rate for tourism related services as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. The 9% rate applies to the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering.  I also provided for the abolition of the Air Travel Tax in Budget 2014 to further assist the tourism sector.

In relation to cross-border shopping, the most recent cross-border price survey carried out by the Revenue Commissioners in July 2014 can be found online on the Revenue website. The survey compares prices in the off-trade rather than the on-trade, and does not support the attached correspondence's contention that a price difference of 35% in respect of beer, wine and spirits exists between prices in Northern Ireland and the State.

Foreign Earnings Deduction

Questions (67)

Billy Timmins

Question:

67. Deputy Billy Timmins asked the Minister for Finance his plans to amend foreign earnings tax deduction for short-term workers, commonly known as journeymen, to encourage them take up short-term work overseas; and if he will make a statement on the matter. [38525/14]

Written answers

Minister for Finance

Section 12 of Finance Act 2012 introduced the Foreign Earnings Deduction (FED) scheme which provides for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014. The scheme was extended in Finance Act 2013 to include travel to Nigeria, Senegal, Algeria, Egypt, Ghana, the Democratic Republic of Congo, Kenya and Tanzania for 2013 and 2014. 

As the Deputy may be aware, the FED is currently being reviewed by my Department in consultation with the Revenue Commissioners.  A public consultation was carried out seeking submissions from interested parties on the FED and its operation, views on whether the scheme should be extended or not and suggestions for improvement should the scheme be extended.

It is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, the outcome of the review of the FED will be considered in the context of the forthcoming Budget and Finance Bill and any announcements will be made on Budget Day.

Vehicle Registration

Questions (68)

Finian McGrath

Question:

68. Deputy Finian McGrath asked the Minister for Finance the reason, under Section 134 of the Finance Act, 1992 (as amended) and the Vehicle Registration Tax (Permanent Reliefs) Regulations, 1993 (S.I. No. 59 of 1993), a person in County Meath that has applied for transfer of residence on a vehicle is being pursued to pay vehicle registration tax on the said vehicle brought in from the United Kingdom when all paperwork is in order and all requirements and criteria are being met but officials are insisting payment must be made and that the decision can be appealed at a later stage; and if he will make a statement on the matter. [38533/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that under Section 147 of the Finance Act 2001, Vehicle Registration Tax (VRT) must be paid before an appeal can be lodged against a refusal to allow an exemption under Transfer of Residence. Because the specific details of the particular case are not provided by the Deputy, the Revenue Commissioners are not in a position to advise me in relation to the particular case. It must be assumed that if the exemption application has been refused, the applicant must not have met all the necessary requirements to avail of the exemption.

If the applicant is dissatisfied with this refusal, they may now appeal this decision under Section 147 of the Finance Act 2001, firstly paying the VRT involved.

Commissions of Investigation

Questions (69)

Eoghan Murphy

Question:

69. Deputy Eoghan Murphy asked the Minister for Public Expenditure and Reform if he will provide a list of the commissions of investigation, inquiries and similar investigations established under his Department during the past 12 months or being considered for establishment during the next 12 months, and in each case the person or persons conducting the inquiry and the timeframe, including start and end date envisaged. [38339/14]

Written answers

Minister for Public Expenditure and Reform

In response to the Deputy's question I can confirm that no commissions of investigation, inquiries or similar investigations were established under my Department during the past 12 months nor, at this stage, are there any plans to establish any commission of investigations, inquiries or similar investigations under my Department in the next 12 months.

Coastal Protection

Questions (70)

Michael Healy-Rae

Question:

70. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the position regarding works to prevent storm damage in an area (details supplied) in County Kerry; and if he will make a statement on the matter. [38399/14]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The Government Decision of 11 February, 2014 specifically addressed the allocation of funding for the repair of existing public infrastructure damaged by storms in the period of 13th December to 6th January 2014. The Department of the Environment, Community and Local Government (DoECLG) wrote to Kerry County Council indicating that, based on the estimate submitted by the Council to that Department, up to €1,226,920 was being made available to the Council via the OPW to undertake the necessary repair works to damaged coastal protection and flood defence infrastructure. This was a once-off measure to reinstate built coastal defences to their pre storm condition.

The estimates submitted by Kerry County Council to the DoECLG and the programme of works the Council submitted to the OPW detailing how it proposes to spend the total allocation of €1,226,920 included an amount of €30,000 for repairs to a coastal embankment at Cromane Lower. This programme was approved and it is a matter for the Council to progress these works.