Written Answers Nos. 56 - 61
56. Deputy Billy Timmins asked the Tánaiste and Minister for Social Protection if there is a list of applicants for positions on boards, State bodies in her Department; and if she will make a statement on the matter. [42467/14]
View answerThe statutory bodies operating under the aegis of the Department of Social Protection are the Citizens Information Board, the Pensions Authority, the Pensions Council, the Pensions Ombudsman (which does not have a Board) and the Social Welfare Tribunal. Appointments to position on Boards under the remit of the Department are made in accordance with the relevant legislation, guidelines governing appointments to State Bodies in the “Code of Practice for the Governance of State Bodies”, and guidelines on arrangements for filling vacancies arising on State Boards issued by the Department of Public Expenditure and Reform.
Citizens Information Board
There are currently three vacancies on the Citizens Information Board. A public request for expressions of interest has resulted in the receipt of 76 applications through the Public Appointments Service (PAS). Appointments to the Board will be made in accordance with the legislation on completion of the selection process.
Pensions Authority
The Pensions Authority consists of three members:
- A Chairman appointed by the Minister for Social Protection,
- An officer and representative of the Department of Social Protection nominated by the Minister, and
- An officer and representative of the Department of Finance nominated by the Minister for Finance.
Pensions Council
Legislation enacted in 2013 provides that the Pensions Council will be comprised of:
- A chairperson,
- One member nominated by the Minister as a representative of the Department of Social Protection,
- The Pensions Regulator (formerly called the chief executive of the Pensions Board),
- One member nominated by the Minister for Finance as a representative of the Central Bank,
- One member nominated by the Minister for Public Expenditure and Reform as a representative of the Department of Public Expenditure and Reform,
- Not fewer than 4, and not more than 8, other members each of whom the Minister considers to have the relevant skills, specialist knowledge, experience or expertise to enable him or her to carry out his or her functions under the Pensions Act.
The recruitment process for “other members” of the Pensions Council was conducted through the Public Appointments Service (PAS). People interested in serving as members of the Pensions Council were invited to make expressions of interest to the PAS earlier this year, and 56 such applications were received. These are currently being considered and appointments will be made shortly.
Social Welfare Tribunal
The Social Welfare Tribunal consists of a Chairperson and four ordinary members, two on the nomination of Irish Congress of Trade Unions (ICTU) and two nominated by Irish Business and Employers' Confederation (IBEC). Legislation (Social Welfare Consolidation Act 2005, Section 331-333) provides that the four ordinary members of the Tribunal are appointed by the Minister on the recommendation of the two relevant bodies.
The Chairperson is sourced by the Department of Social Protection by way of a recommendation from the Labour Court with regard to a particular candidate’s suitability. The current Tribunal member’s term is due to run until 4 October 2015.
57. Deputy Terence Flanagan asked the Minister for Finance his views on correspondence (details supplied) regarding tax returns; and if he will make a statement on the matter. [42280/14]
View answerI am advised by the Revenue Commissioners that the granting of a tax credit for the amount of Danish tax paid in any year may only be given after the end of that year, on receipt of a copy of the Danish Tax Assessment, in accordance with Article 23, Section 2(a) of the Double Taxation agreement between Ireland and Denmark.
I understand that the tax position for the years 2009 to 2012 has been resolved and that PAYE Balancing Statements have issued to the person concerned for the years in question. To avoid further unnecessary delays, the person's tax agent should submit a statement from the Danish Tax Authorities (in English) together with the person's Income Tax Return for the year 2013. Following receipt of the required documentation, the tax position for 2013 will be reviewed and PAYE Balancing Statement for that year will issue without delay.
As the person concerned would appear to be suffering ongoing financial difficulty due to being taxed in Ireland and Denmark on the same income, Revenue is prepared, on a concessional basis, to consider allowing a mutually agreed tax credit to her in the current tax year in an effort to alleviate this difficulty. Revenue will contact the taxpayer directly to arrange a meeting to discuss this matter.
58. Deputy Shane Ross asked the Minister for Finance the reason the self-employed are paying 3% more universal social charge on earnings over €100,000 than a PAYE worker; if he accepts that this makes self-employment much more difficult; and if he will make a statement on the matter. [42288/14]
View answerThe current situation is that the charge to USC applies equally to all up to an income level of €100,000. A 10% rate is charged on self-assessed income above this level, which compares with a 7% rate which is charged on PAYE incomes above that level.
When USC was first introduced in 2011 the PRSI ceiling on income over €75,000 was also removed for all PAYE employees. This meant that those on PAYE incomes of over €75,000 would now be liable to an additional 4% charge on that portion of their income. At the same time PRSI for self-assessed income earners was increased by 1% from 3% to 4%.
In order to maintain the differential it was decided to introduce an additional USC rate of 10% on self-assessed income over €100,000. The alternative would have seen self-assessed income earners on high incomes benefit hugely at a time when their PAYE counterparts were losing from the tax changes introduced in 2011. On the basis of fairness, this could not have been countenanced at the time.
Similarly, it was necessary to increase this 10% rate to 11% in Budget 2015 in order to ensure that the self-assessed on high incomes do not benefit disproportionately and that the maximum benefit from the income tax package is capped for all tax payers. Thus from 2015, self-assessed income in excess of €100,000 will be subject to an 11% rate of USC in comparison to an 8% rate that will apply to PAYE income in excess of that level.
It is worth pointing out that the self-assessed benefit to the same extent from the Budget measures as their PAYE counterparts. They benefit from the cut in the top rate of income tax from 41% to 40% and from the increase in the standard rate bands. In addition, the changes to the USC will also be beneficial to them on incomes up to €70,000. This year, the self-assessed on incomes in excess of €100,000 face a marginal rate of income tax of 55% including USC and PRSI. That marginal rate will be unchanged for this cohort in 2015. However, the marginal rate that applies on incomes below €70,000 will be reduced by 1% for all taxpayers currently paying the higher rate of income tax, as a result of the Budget changes.
There are other aspects to how the self-assessed are taxed which can be beneficial to them. For instance, there are significant timing benefits, depending on the accounting period used by the taxpayer, which are available to the self-assessed but which are not available to PAYE workers. 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.
59. Deputy Terence Flanagan asked the Minister for Finance if he will introduce a tax credit scheme in the Finance Bill to cover the significant costs of child care; and if he will make a statement on the matter. [42304/14]
View answerTax relief is not available to parents in respect of crèche fees or childcare costs. However, I would like to assure the Deputy that the Government acknowledges the continuing cost pressures on parents, particularly those with young children. In recognition of these cost pressures, a number of support measures are in place to ease the burden on working parents. These include the Community Childcare Subvention (CCS) programme, which funds community childcare services to enable them to charge reduced childcare fees to qualifying parents, the Childcare Education and Training Support (CETS) programme which provides free childcare places to qualifying Solas and VEC trainees and the Early Childhood Care and Education (ECCE) programme which provides for a free pre-school year for children in the year before commencing primary school. Generous entitlements to paid and unpaid maternity leave as well as child benefit payments are also provided.
The Department of Social Protection provides financial support to families on low pay by way of the Family Income Supplement (FIS) and additionally to one-parent families through the one-parent family payment.
Furthermore, a Single Person Child Carer tax credit of €1,650 is available as well as an additional standard rate band of €4,000. This credit and band is payable to any single person with a child under 18 years of age or over 18 years of age if in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year. To claim the Single Person Child Carer Credit a claimant must not be married, in a civil partnership or cohabiting.
In relation to exempting childcare costs from tax when the service is provided by an employer, a relief did exist in the form of a benefit-in-kind exemption, where childcare facilities were provided by the employer. However, this relief was abolished in Finance Act 2011. The Commission on Taxation recommended the abolition of this exemption, citing equity issues in relation to those parents whose employers did not provide such facilities.
I have no plans to introduce a tax relief for parents to assist with childcare costs. To provide such a tax relief could be seen to unfairly discriminate against those individuals who stay at home and look after their children.
While wanting to encourage female participation in the workforce, equally we cannot say to individuals who stay at home that they are making a less valuable contribution to society.
In addition, tax relief is only of benefit to those in the tax net and it is estimated that in 2014, 39% of income earners will be exempt from income tax. It could also be argued that any tax relief would most likely be absorbed by childcare providers in the form of higher prices.
As the Deputy will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. In considering these, I must be mindful of the public finances and the many demands on the Exchequer given the current budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
60. Deputy Denis Naughten asked the Minister for Finance the reason he will not introduce tax relief at source for water charges for all domestic users; and if he will make a statement on the matter. [42311/14]
View answerA number of measures were announced on Budget day to improve the overall affordability of water charges. The objective of these supports is to assist households in the country who pay their water bills.
Following on from the announcement on Budget day, officials from my Department are working closely with their colleagues in the other relevant Departments and Agencies, in the development of the processes that will be employed to deliver the relief.
As I stated on Budget day and subsequently, we will design the measure as broadly and efficiently as possible, to ensure that the relief reaches all households who pay their charges.
In the design of the relief, we must be cognisant on the impact on Irish Water in terms of EUROSTAT's Market Corporation Test. As the Deputy is aware, the advantage of keeping Irish Water off the Government balance sheet is that the necessary investment in the water infrastructure in the country can be made by the utility without impacting on our deficit or debt targets under the Stability and Growth Pact.
As Irish Water is considered outside of Government, the expenditure by Irish Water does not impact on General Government expenditure. If the tax relief were provided at source, it is possible that Irish Water could fail the Market Corporation Test and would therefore be classified within general government.
61. Deputy Michael McGrath asked the Minister for Finance if the ministerial order commencing section 268(1)(n) of the Taxes Consolidation Act 1997 capital allowances for aircraft hangars has been issued; and if he will make a statement on the matter. [42329/14]
View answerAs the Deputy is aware, a scheme of accelerated capital allowances for the construction and refurbishment of certain buildings and structures for use in the maintenance, repair or overhaul of commercial aircraft, and the dismantling of such aircraft for the purposes of salvaging or recycling of parts or materials was announced in Budget 2013. An application for State Aid approval for the scheme was subsequently made to the EU Commission.
The Commission formed the view that the scheme in its current form is not compatible with any State Aid guidelines. Following on from meetings and discussions with officials from the Commission, a revised application was recently submitted, which I hope will lead to a positive result in the near future. Discussions are continuing. In the meantime, an amended provision has been included in the current Finance Bill, in order to address the concerns already communicated by the Commission.
