Written Answers Nos. 53 - 56
53. Deputy Colm Keaveney asked the Minister for Finance if he will provide a distributional analysis for the measures contained in budget 2015; if he is unable or unwilling to provide same and if he will provide his reasoning on this; his views that all budgetary measures should be equality proofed; and when will this be implemented; and if he will make a statement on the matter. [43354/14]
View answer57. Deputy Colm Keaveney asked the Minister for Finance if he will provide a distributional analysis for the measures contained in budget 2015; if he is unable or unwilling to provide same and to give his reasoning for that; if all budgetary measures should be equality proofed; and if he will make a statement on the matter. [43384/14]
View answerI propose to take Questions Nos. 53 and 57 together.
A very detailed distributional analysis was published in Sections B1 to B26 in this year's Budget Book. This analysis was undertaken by the Department of Finance and sets out the distributional impact of tax measures and child benefit increases over a range of thirteen income levels and across six family types. The distributional analysis is complemented with a number of illustrative hypothetical case study families. This distributional analysis shows income gains to all household types.
For example the distributional analysis shows that a single earner on an annual income of €25,000 will gain €174 per annum; a married one earner couple on €35,000 will gain €174; while a married one earner couple with two children, again on €35,000, will gain €294 per year. These gains reflect the Government's commitment to helping those on lower and middle incomes.
With regards to equality proofing the Programme for Government contains a commitment to require all public bodies to take due note of equality and human rights in carrying out their functions. Furthermore, the Cabinet Handbook requires a statement on the likely effects of the decision sought on equality and persons experiencing or at risk of poverty or social exclusion to be included in all Memoranda to Government. Consequently, Government does consider each of these important issues at an individual policy or programme level. Furthermore, I would remind the Deputy that the State and its bodies take the provisions of equality legislation into account in the development and delivery of policies and services.
54. Deputy Pearse Doherty asked the Minister for Finance the amount of tax, interest or surcharges payable written off in settlements with individuals or companies in each of the past five years. [43372/14]
View answerI am advised by the Revenue Commissioners that the settlement of tax, interest and penalties with individuals and companies in the context of a Revenue audit or other risk management intervention will include agreeing the necessary arrangements to recover any amounts underpaid. However, in some cases an "Inability to Pay" claim may be made by the taxpayer.
For the years 2011 to 2013, the following amounts were accepted and not collected as a result of "inability to pay" claims made during Revenue audits. Also provided are details of yield from Revenue audits and other compliance interventions over the same time period:
|
Year |
"Inability to Pay" claim Amounts |
Yield from Audits & Other Interventions |
|
2011 |
*€6.3m |
€482.8m |
|
2012 |
€22.7m |
€492.4m |
|
2013 |
€26.4m |
€551.9m |
*Data available from July 2011 only and no details are available for prior years.
The full responsibility to demonstrate inability to pay lies with the taxpayer. Before Revenue accepts a claim of inability to pay, the taxpayer will have submitted a statement of affairs and other documentation to demonstrate their inability to pay. If a customer's circumstances change (e.g. an unforeseen positive change in their financial circumstances) collection of the tax not previously recovered may be pursued.
I am also advised by the Revenue Commissioners that the approximate amount of tax written off in accordance with established guidelines, and published in their Annual Report, in each of the last five years is as follows:
|
Year |
Amount |
|
2009 |
€221m |
|
2010 |
€299m |
|
2011 |
€321m |
|
2012 |
€287m |
|
2013 |
€263m |
Tax is only formally written off following a process of assurance that the amounts involved are uncollectible or regarded as uncollectible. Tax may be written off in instances where, for example, a business goes into liquidation, ceases to trade or where outstanding amounts are uneconomic to collect. The vast majority, in some years up to 80%, is written off in circumstances of business failure including where High Court processes such as liquidation or examinership are involved.
55. Deputy Dominic Hannigan asked the Minister for Finance if artists who earn an income from the sale of their creative work and who are resident outside the State are liable to pay USC on their earnings from the sale of their products in this state; and if he will make a statement on the matter. [43373/14]
View answerAs a general rule, a non-resident individual who carries on a trade or profession in the State is liable to income tax and universal social charge (USC) on the profits therefrom.
However, if the individual is resident in a state with which Ireland has a double taxation treaty, the profits are only liable to Irish income tax and USC if the trade or profession is carried on through a permanent establishment in Ireland. This rule applies to profits from sales by a non-resident artist also. In practice, it is likely that very few foreign resident artists would trade in Ireland through a permanent establishment, with the result that few foreign artists, if resident in a treaty state, would have a liability to Irish income tax and USC.
Currently, the artists' exemption only applies to individuals who are resident in Ireland and are not resident elsewhere. It is proposed in the current Finance Bill to extend artists' exemption to individuals resident in other Member States of the EU or in European Economic Area (EEA) States. However, this exemption only applies in respect of income tax and not USC. Therefore, if the proposal in the Finance Bill is passed, there will be no change to the position as set out above.
Further information on the USC is available from the Revenue website at:
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf.
56. Deputy Fergus O'Dowd asked the Minister for Finance if he will introduce a new scheme of urban renewal for our town centres many of which are becoming dilapidated and run down due to business failures in order to encourage development and job creation by small and medium enterprises; and if he will make a statement on the matter. [43377/14]
View answerThe Deputy may be aware of the Living City Initiative, which was enacted in the Finance Act 2013, and includes the cities of Dublin, Cork, Galway and Kilkenny as well the original target cities of Limerick and Waterford.
The Living City Initiative is a targeted pilot tax incentive which aims to: encourage people back to the centre of Irish cities to live in older buildings; and encourage the regeneration of central business districts.
The Initiative will provide tax incentives for works performed to refurbish residential and retail buildings either to bring them up to a habitable standard or to make improvements to buildings which are currently inhabited. The residential incentives will be targeted at owner/occupiers rather than property developers or the rental sector.
Officials from my Department have held preliminary discussions with the relevant local authorities to identify the areas of the six cities, Cork, Dublin, Galway, Kilkenny, Limerick and Waterford, which might fall within the scope of the scheme. Each of the local authorities have submitted proposals on the areas which they believe should be included.
I would expect that I will be in a position to make an announcement on the areas to be designated in the near future. It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas which are most in need of attention.
