Written Answers Nos. 69-75
69. Deputy Denis Naughten asked the Minister for Finance the number of complaints of petrol-stretching in counties Mayo, Roscommon, Galway and Leitrim, respectively, received by Customs and Excise in each of the past four months; the number which were investigated and the number which are ongoing in each county; and if he will make a statement on the matter. [40785/14]
View answer73. Deputy Dara Calleary asked the Minister for Finance the measures that have been taken by Customs and Excise to alleviate the issue of petrol-stretching since September 2014; the solution he proposes for persons who have been affected and whose insurance will not cover the losses incurred; and if he will make a statement on the matter. [40802/14]
View answer74. Deputy Denis Naughten asked the Minister for Finance the number of premises investigated by the Customs and Excise for petrol-stretching; the number of such premises registered with the Revenue Commissioners; the number which were not registered; the number in each category where no evidence was found of petrol-stretching; and if he will make a statement on the matter. [40809/14]
View answer76. Deputy Brendan Smith asked the Minister for Finance the additional measures that will be introduced to deal with illegal trading in diesel and petrol; if his attention has been drawn to recent media reports which highlighted again that paramilitary organisations and others are involved in this illicit trade; if the level of co-operation between agencies North and South will be intensified to deal effectively with these very serious issues; and if he will make a statement on the matter. [40815/14]
View answerI propose to take Questions Nos. 69, 73, 74 and 76 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 consumers' vehicles, legitimate businesses and the Exchequer by all forms of such fraud.
Revenue has, over the recent past, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low tax commodity to petrol to defraud motorists and the State. The numbers of complaints of this kind received by Revenue in counties Mayo, Roscommon, Galway and Leitrim in the period since July 2014 is 31, comprised of 1 in July, 7 in August, 17 in September and 6 to 21 October 2014. An analysis of the complaints on a county basis is set out in the following table.
Complaints Received in Relation to Petrol Stretching
|
County |
July |
August |
September |
October |
|
Mayo |
0 |
4 |
10 |
1 |
|
Roscommon |
0 |
3 |
4 |
1 |
|
Galway |
1 |
0 |
3 |
4 |
|
Leitrim |
0 |
0 |
0 |
0 |
Revenue investigates all complaints of this kind and fuel samples are taken from filling stations and referred to the State Laboratory for analysis where the investigating officers have reason to suspect excise fraud. To date 48 premises nationwide have been tested with samples referred to the State Laboratory.
Conclusive results have been received in one case which confirms contamination through the presence of kerosene and Revenue are considering the possibility of prosecution in this case. Final results are awaited in respect of the other samples referred for analysis. It is understood the State Laboratory is reviewing its existing procedures with a view to expediting testing which, I am informed is quite complex.
Petrol stretching is an offence under section 102 (1A) of the Finance Act 1999. The Deputies can be assured that, if Revenue's investigations and the analysis of fuel samples indicate the presence of illegal stretching agents in petrol, Revenue will take action and pursue prosecutions against offenders where possible.
I understand also that Revenue has been in contact with the motor and fuel trades about the reported problems. Cooperation with the fuel trade has been an important element in the successful work undertaken in recent years to combat fuel fraud, and can play a key role in addressing any further issues that come to light. It is essential, in particular, that petrol distributors report on any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific traders are shifting some of their sourcing to illegal fuel.
Motorists themselves should take care about where they source their petrol, and should report any suspicions to Revenue. Revenue has recently launched a dedicated section of its website specifically dealing with the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices including the adulteration of fuel.
The first point of contact for motorists whose vehicles may have been affected should be their motor insurance companies. Persons affected should also contact the point of purchase of the fuel. If they remain unsatisfied, they may have recourse to civil remedies and should seek legal advice.
All trading entities are obliged to ensure that they are correctly registered for all taxes as required by legislation. In addition, a person engaged in the sale of petrol or diesel is required to hold an auto fuel trader's licence or a marked fuel trader's licence. Revenue enforces this licensing requirement rigorously and also acts to ensure that businesses of this kind are conducted in accordance with licence requirements. Action is taken in any case where unlicensed trading, or failure to comply with a licence's terms and conditions, is encountered. In the period from 2011 to date, more than 130 filling stations were closed, mainly for breaches of licensing conditions.
In summary an extensive range of new measure has been introduced over recent years to tackle fuel fraud, including enhanced supply chain controls and the acquisition of a more effective fuel marker. Key measures include the following:
- 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;
- New supply chain controls were introduced from January 2013 following significant investment in new IT systems. 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 has, in partnership with Her Majesty's Revenue and Customs in the UK identified 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. I am committed to providing new measures to further assist Revenue in its work against fuel fraud should it be required.
I am advised also that the Revenue Commissioners work in close cooperation with other enforcement authorities, in this jurisdiction and in Northern Ireland, to combat 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 on-going basis in this important work.
70. Deputy Patrick O'Donovan asked the Minister for Finance if the Revenue Commissioners will be employing independent evaluators for the local property tax and if so, when this will take place; and if he will make a statement on the matter. [40787/14]
View answerI am informed by the Revenue Commissioners that they have established a panel of private sector valuation experts to provide market valuations of all forms of real property including residential property, commercial property and development land. Where valuations of residential property are being challenged by Revenue in connection with LPT, Revenue will engage a valuation expert from this panel if the need arises.
As regards LPT, I am further advised that the Commissioners have challenged the self assessed valuation of residential property in a small number of instances. However, there was no need to engage a valuation expert, as in the majority of these cases the owner self-corrected the valuation and in the remaining cases Revenue accepted the valuation declared by the owner.
71. Deputy Billy Timmins asked the Minister for Finance the amount of tax relief claimed for 2012 and 2013 for philanthropy donations to charities and approved bodies. [40788/14]
View answerSection 848A of the Taxes Consolidation Act 1997 (TCA) provides for a scheme of tax relief on donations to approved bodies. The list of approved bodies for the purposes of Section 848A, which includes eligible charities, bodies approved for education in the arts and eligible primary, secondary and third-level institutions, is available on the Revenue website at www.revenue.ie.
For donations made pre-2013, the precise arrangements for allowing tax relief on donations varied depending on whether the donor was a PAYE only taxpayer, a chargeable person subject to self-assessment or a company. For a PAYE only donor, the relief was given on a "grossed up" basis to the eligible charity or approved body, rather than by way of a separate claim to tax relief by the donor. The claim for refund was made by the eligible charity or approved body in respect of the PAYE donor. In the case of a self-assessed donor, that individual claimed the relief and there was no grossing up arrangement. In the case of a company, it would claim a deduction for the donation as if it were a trading expense. For donations made after 1 January 2013, relief in the case of PAYE and self-assessed donors is payable to the charity at a blended rate of 31%. Companies can continue to claim the deduction.
The level of income tax relief on donations to charities and other approved bodies in respect of donations by PAYE, self-employed and corporate donors for 2012 is as shown in the following table. The figures for 2013 are available at the current time in respect of PAYE-only donors.
|
Year |
Estimated Cost of Relief €M |
|
2012 |
47 |
|
2013 |
24 (PAYE-only donors) |
72. Deputy Mick Wallace asked the Minister for Finance the criteria for the award of tax exemption to artists; the changes made in this regard in the recent budget; and if he will make a statement on the matter. [40137/14]
View answerThe artists' exemption provides for an exemption from Income Tax on the first €40,000 of earnings in relation to certain categories of works, namely: a book or other writing; a play; a musical composition; a painting or other picture; or a sculpture.
The exemption does not extend to income arising from: royalties paid or associated with the performance of music whether by the composer or another artist; performance royalties paid or associated from the sale of CDs etc. (song writing royalties are exempt); receipts from live performances; arrangements, adaptations or versions of musical compositions which is not of such significance as to amount to an original composition; any writing visual or musical work created for advertising or publicity purposes; a book which is primarily used either by students in a course of study or by a person in a trade, business, profession, vocation or branch of learning as an aide to that trade, business, profession vocation or branch of learning; Any work of journalism published in a newspaper, journal, magazine or on the internet.
It is worth noting that a new set of guidelines for the operation of the artists' exemption were agreed between the Department of Arts, Heritage and the Gaeltacht, the Arts Council and the Revenue Commissioners. I approved these new guidelines on November 22 2013 and they can be viewed on the Revenue website at: http://www.revenue.ie/en/tax/it/reliefs/artist-exemption-guidelines.pdf
In the Budget I announced that the artists' exemption is being extended to artists who are resident or ordinarily resident and domiciled in one or more EU Member States, or in another EEA state, and not resident elsewhere. Such artists who have produced works within one of the categories mentioned above will be able to apply to the Revenue Commissioners for the exemption and, providing their work meets the criteria for the scheme, will be eligible for the exemption. However, the exemption will only be of benefit to those artists who are liable to income tax in Ireland. The exemption will not apply in their home country. The reason behind this change is to ensure that the scheme is compatible with EU law. I have also increased the maximum amount of the exemption to €50,000 for the year of assessment 2015 and subsequent years.
75. Deputy Pearse Doherty asked the Minister for Finance with regards to section 15(10) of the Credit Union and Co-Operation with Overseas Regulators Act 2012, if his attention has been drawn to the difficulties which the Act has created for credit unions when appointing directors, particularly for rural-based credit unions, due to the various restrictions and candidate criteria stated in the Act concerning those who are deemed eligible to become a director of a credit union; and if he will make a statement on the matter. [40812/14]
View answerThis Government established the Commission on Credit Unions in May 2011 to make recommendations in relation to the most effective regulatory structure for credit unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect members' savings and financial stability.
The Commission published its final landmark Report in March 2012 with far reaching recommendations to restructure the Irish credit union sector and strengthen its legislative and regulatory framework. Over sixty of its recommendations have been implemented in the Credit Union and Co-operation with Overseas Regulators Act 2012.
Section 15 of the 2012 Act substitutes a new provision for Section 53 of the Credit Union Act 1997. Section 53(10) provides for exclusions from the Board of Directors. These exclusions from membership of the Board are required to avoid conflicts of interest and to ensure division of responsibilities between the executive and the Board. The clear distinction of roles is fundamental to the governance requirements and is essential to ensure that a workable governance structure is created in all credit unions, regardless of nature, scale or complexity, and to ensure the safeguarding of members' savings.
The Commission's Report was agreed by all members of the Commission including credit union representative bodies as well as independent individuals, and sought direct engagement from credit unions to ensure that its recommendations took account of a broad range of perspectives.
