Written Answers Nos. 149-162
149. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 155 of 4 November 2014, the length of time the matter has been under investigation. [44266/14]
View answerThere are 28 individual cases involved in this investigation. The application dates for these cases range from September 2010 to April 2012.
This matter is the subject of ongoing investigation in my Department.
It would not be appropriate for me to comment on the likely outcome of these investigations at this stage.
150. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection the percentage and the number of persons participating in community employment schemes who will achieve full-time employment after their schemes in the first 12 months; if she will provide other statistics regarding the success rates associated with the scheme; and if she will make a statement on the matter. [44287/14]
View answerThe progression figures for those who exited the community employment (CE) scheme in 2013 are outlined in the table.
|
Community Employment Schemes |
Percentage/Number |
|
Found Employment/Self-employment |
21.6% (2,145) |
|
Progression to Further Education |
4.9% (485) |
|
Total Placement/Progression |
26.5% (2,630) |
|
Total exits from CE in 2013 |
9,913 |
With regards to qualifications achieved while participating on CE, in the twelve month period January to December 2013, 13,118 components of learning accredited by FETAC were started and completed by CE participants.
Table 1 shows the award level of the various components of learning accredited. Some 58% (7,622) of minor awards are at FETAC Level 5, a further 22% (2,849) of minor awards are at Level 4 and 12% of minor awards (1,578) are at Level 3. A further 5% of minor awards are at Level 6. The remaining 1% of awards are at FETAC Level 1/2. There were 215 Special Purpose Awards achieved in the same period. Overall, there were 82 Major Awards achieved by participants during 2013.
Table 1: FETAC Award Level started and completed by CE participants, 2013
|
Accrediting Body |
Award Level |
Award Type |
Award Type |
Award Type |
|
- |
- |
Major |
Minor |
Special Purpose |
|
FETAC |
Level 1 (FETAC) |
20 |
||
|
Level 2 (FETAC) |
2 |
85 |
||
|
Level 3 (FETAC) |
10 |
1,578 |
1 |
|
|
Level 4 (FETAC) |
2,849 |
|||
|
Level 5 (FETAC) |
60 |
7,622 |
176 |
|
|
Level 6 (FETAC) |
10 |
667 |
38 |
|
|
FETAC Total |
FETAC Total |
82 |
12,821 |
215 |
Every participant on CE completes an Individual Learner Plan (ILP) which allows learning needs to be identified, approved, delivered and reported on. This plan is jointly agreed between the supervisor and the participant. Using the ILP, participants can pace their own learning and record and recognise their own achievements, including accredited learning.
Of the 13,118 FETAC awards achieved in 2013, 1,792 were provided at no cost to the Department by local Educational and Training Boards. The total expenditure on training by CE schemes was €4.49m in 2013.
152. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection her view of the fact that large numbers of community employment projects shall be in danger of closure over the next year due to being unable to fill the vacancies now occurring due in large part to the extreme capping restriction now imposed by her Department; and if she will make a statement on the matter. [44318/14]
View answerAt the end of October 2014, there were 22,815 community employment (CE) participants (excluding supervisors) engaged on the programme, an overall increase of 1,009 participants from October 2013. The breakdown of the 22,815 places is:
|
Community Employment Schemes |
Breakdown |
|
18,706 Jobseekers (JA/JB) |
82.0% |
|
1,215 Lone Parents/Widows |
5.3% |
|
1,886 Disability |
8.3% |
|
1,008 Others (e.g. ex-prisoners) |
8.3% |
The Department is doing its utmost to enable the CE sponsors to recruit sufficient candidates for any vacancies arising.
The existing participation limits for CE are in place to ensure that all eligible persons have the opportunity to participate on the programme. The limits (introduced in April, 2000) are 3 years participation for those under 55 years of age and up to 6 years participation for those of 55 years of age to state pension age. Persons in receipt of disability-related social welfare payments on entering CE may avail of one additional year on top of these limits bringing the duration up to 4 years and 7 years respectively.
153. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if a decision has been made on a farm assist appeal in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [44321/14]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 04 November 2014, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
154. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection the number of JobsPlus positions, as distinct from the companies which are participating, which have been taken up in counties Galway and Mayo; and if this scheme is kept under review to ensure that the widest possible number of organisations may avail of it. [44328/14]
View answerAt the end of October 2014, JobsPlus supported 96 positions in County Mayo and a further 194 positions in County Galway. The number of businesses supported was 157 in Galway and 73 in Mayo.
JobsPlus is promoted to businesses in a variety of ways, including through the Department’s employer engagement teams at national and regional level working directly with employers and representative bodies. These teams provide a range of advice on services and supports available to meet their recruitment needs, including JobsPlus. In addition, the Department regularly presents to industry groups and employer fora on the supports available from the Department and other State agencies.
At the end of October 2014, JobsPlus provided grants to 2,576 employers in respect of 3,418 employees who were previously long-term jobseekers. Over sixty per cent of the employees supported were previously unemployed for two years or more.
155. Deputy Lucinda Creighton asked the Minister for Finance the length of time he expects it will take to negotiate with the European Commission on the commencement of the capital gains tax scheme for entrepreneurs which was passed into law on 18 December 2013; his views on it being a reasonable delay; and if he will make a statement on the matter. [44365/14]
View answer168. Deputy Lucinda Creighton asked the Minister for Finance the time it will take to negotiate with the European Commission regarding the commencement of section 45 of the Finance (No. 2) Act 2013 which provides the capital gains tax relief for entrepreneurs as announced in budget 2014. [44035/14]
View answerI propose to take Questions Nos. 155 and 168 together.
Section 597A of the Taxes Consolidation Act 1997 provides for CGT entrepreneur relief as introduced by Budget 2014 and Section 45 of the Finance (No. 2) Act 2013. The relief was introduced subject to State-aid approval and discussions and exchanges have been taking place with the EU Commission on that issue. The requirements can be complex and the process can take time.
Arising from those discussions, a number of changes are being made in Finance Bill 2014 to the CGT entrepreneur relief provisions in order that the relief would satisfy the EU Commission's new General Block Exemption Regulations introduced earlier this year, thus obviating the need for formal EU approval of the relief from a State-aid perspective.
The changes involve targeting the relief at individuals involved in newly created enterprises or enterprises created within the last 7 years, placing a cap of €15 million on the total risk finance investment made in each such enterprise and ensuring that the risk finance investment is made by the entrepreneurs at the commencement of the new business.
Other changes are being made to the relief to make it more compatible with the commercial reality of conducting business on the ground.
These changes include:
- Clarifying that an enterprise does not have to be a micro, small or medium-sized enterprise at the date of disposal of the chargeable business asset in order for the individual owner to qualify for the relief.
- Amending the ownership requirement from control - meaning 50% or more ownership of shares - to 15% ownership of ordinary shares, as in practice new enterprises often have two or more individuals as shareholders or co-owners.
- Providing that investment in the new business through a holding company can qualify for the relief as this is a standard investment structure.
- Enabling disposals of chargeable business assets in forms other than a direct disposal of shares in a qualifying company to qualify for the relief.
The revised provisions of Section 597A (as included in section 46 of Finance Bill 2014) will be effective from the passing of the Finance Bill. The CGT relief will apply, among other conditions, where new chargeable business assets have been acquired on or after 1 January 2014.
156. Deputy Maureen O'Sullivan asked the Minister for Finance his views that the requirement for a 20% deposit is prohibitive for many, and if the pre-existing equity tied up in persons' homes for which they are still paying could be utilised in the purchase of necessary new and larger homes; and if he will make a statement on the matter. [43751/14]
View answerAs the Deputy is aware, the Central Bank of Ireland has published a consultation paper regarding macro-prudential measures for residential mortgage lending in Ireland. The Central Bank measures, as set out in the consultation document, would place restrictions on the loan to value (LTV) and loan to income (LTI) ratios banks can apply when lending for house purchase.
A copy of the Consultation Paper is available on the Central Bank website (at http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankpublishesnewmacro-prudentialmeasuresformortgagelending.aspx) and comments on the paper can be made electronically to realestate@centralbank.ie by 8 December 2014.
The Central Bank has proposed that banks will be able to lend, in some instances, above these threshold limits. However, the proposals state that any lending in excess of the loan to value ratio must be limited to no more than 15% of the value of new loans issued and, in respect of exceeding the loan to income ratio, to no more that 20% of the value of new loans. The Central Bank consultation paper indicated that other exemptions will also be available in cases of switcher mortgages (which, allowing for reasonable fees and costs, would not increase the principal), alternative repayment arrangements or other options to address a mortgage repayment difficulty, or residual debt from negative equity mortgages. Any equity realised by a borrower arising from the sale of a house will be available to the borrower to use, if s/he so decides, as the deposit, for the purchase of a new house.
157. Deputy Pat Rabbitte asked the Minister for Finance the amount of tax generated by the Exchequer from stallion fees income for each of 2007 to 2011, inclusive, and 2012 respectively; and if he will make a statement on the matter. [43757/14]
View answer158. Deputy Pat Rabbitte asked the Minister for Finance the total income tax generated for the Exchequer from stallion income since the exemption of taxation on stallion income was abolished in August 2008 in view of the fact that 70% of the world's stallions have been located here in recent years and Ireland accounts for 42% of total thoroughbred foals output in the European Union; and if he will make a statement on the matter. [43758/14]
View answer159. Deputy Pat Rabbitte asked the Minister for Finance the taxation contribution to the Exchequer from stallion income from the highly successful thoroughbred stud operations here which have generated hundreds of millions of euros in income for many leading owners over the past five years; and if he will make a statement on the matter. [43759/14]
View answer160. Deputy Pat Rabbitte asked the Minister for Finance the tax income for the Exchequer for net stallion income associated with the top ten stud operations here; and if he will make a statement on the matter. [43760/14]
View answerI propose to take Questions Nos. 157 to 160, inclusive, together.
Profits or gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by a stallion or from the sale of rights to such services have been taxable since 1 August 2008. Previously, these profits were exempt from Income and Corporation Tax.
I am advised by the Revenue Commissioners that figures for the profits earned from the provision of stallion stud services were required to be returned in Income Tax and Corporation Tax returns from the tax year 2008 onwards. The figures from returns are as set out in a table for the tax years 2008 to 2012, the most recent available.
Profits earned from the provision of stallion stud services
|
Tax Year |
Income Tax Returns €m |
Corporation Tax Returns €m |
|
2008* |
1.1 |
0.6 |
|
2009 |
0.5 |
4.0 |
|
2010 |
0.7 |
2.3 |
|
2011 |
0.7 |
2.2 |
|
2012 |
0.7 |
6.4 |
*These figures do not include fees and profits that were exempt prior to 1 August 2008.
In interpreting these figures it is important to bear in mind that they are profits as opposed to the total fees earned by an owner. Income Tax and Corporation Tax are charged on profits or gains rather than gross fee income. In calculating the profits or gains, stallions are treated as stock in trade which means that income from stud fees and profits or gains on the sale of the stallions are fully taxable in the hands of both corporate and individual owners.
In computing profits, a write-off over 4 years of the "initial value" of the stallion is allowed as a deduction for tax purposes. This reflects the fact that some stallions have a short nomination life and also takes into account that the majority of stallions are unsuccessful at stud. The impact of the deduction on taxable profits during the write-off period is directly related to the success, or otherwise, of the stallion. Without this provision the cost of a stallion would, under normal rules, only be allowed as a deduction upon its disposal or death.
As stallion related profits or gains are aggregated with all other incomes for the purposes of Income and Corporation Tax calculations, it is therefore not possible to specify the separate Income or Corporation Tax yield from these activities. All taxpayers, both individual and corporate, can have a number of sources of income, and can avail of a variety of different deductions and reliefs, which affect the final tax liability. In addition, the profit figures shown above may be reduced by capital allowances or losses to which that taxpayer may be entitled. Therefore, it is not possible to infer from these figures the amount of tax that is generated solely from the taxation of these profits or gains.
The Deputy has also asked for the amount of income associated with the top ten stallion operations. I am advised by the Revenue Commissioners that, to ensure the confidentiality of Revenue's taxpayer information, it would not be appropriate for the Commissioners to reveal the profits of the top ten cases.
161. Deputy Michael McGrath asked the Minister for Finance the impact for the development of an Irish knowledge development box of reports that the UK and Germany have agreed to phase out their respective patent box tax incentives; and if he will make a statement on the matter. [43896/14]
View answerThe Deputy may recall that as part of my Budget announcement I made a clear statement of my intention to introduce a competitive income-based regime for intangible assets in Ireland, in what will be known as a "Knowledge Development Box" or "KDB".
I view this as a positive measure for Ireland and I will ensure the Irish KDB will be among the best in class on offer internationally. The design of this measure will be broadly along the lines of patent boxes which have existed for many years in countries that compete with us for Foreign Direct Investment.
At present, the measures that are in place in some other jurisdictions are the subject of on-going discussions at the OECD and EU level, with regard to their compatibility with the international rules around fair tax competition.
As I said in my Budget speech, Ireland's Knowledge Development Box will adhere to the OECD/EU rules on such regimes once those rules are agreed.
Last week, Germany and the UK announced that they have developed a joint proposal on the rules for tax regimes for intellectual property which will be submitted to the OECD Forum on Harmful Tax Practices for discussion during its meeting in November.
It is notable that the approach seeks to ensure that regimes for intellectual property will require economic activities to be undertaken in the jurisdiction in which the regime exists. In terms of the implications for the future development of Ireland's Knowledge Development Box, this approach accords with Ireland's overall FDI strategy and corporation tax policy which is focussed on attracting investment that is accompanied by real and substantial business activity.
Further work will be required in order to enable agreement on the issue by all OECD members during 2015 and Ireland looks forward to a resolution of the uncertainty around acceptable criteria for patent boxes and looks forward to engaging in such discussions.
162. Deputy Michael McGrath asked the Minister for Finance if the European Commission has requested further information in respect of the investigation being conducted into a company's (details supplied) tax affairs here; if this contradicts his public statement that the investigation was likely to be dropped rather than there being further investigation; and if he will make a statement on the matter. [43897/14]
View answerIn June 2014, the European Commission announced its intention to open formal state aid investigations into a number of companies in Member States of the European Union. This included Ireland's case in respect of the company in question.
At the same time as this announcement, the European Commission sent a letter to Ireland in which they outlined what they see as the basis for opening such an investigation and asking for Ireland's response and clarification. A non-confidential version of this letter, known as an "Opening Decision" was published by the European Commission at the end of September.
The purpose of this publication is to give interested parties the opportunity to submit comments directly to the European Commission.
Ireland has already issued a formal and confidential response to the Commission's letter, addressing in detail the concerns and some misunderstandings contained in the Opening Decision. Ireland welcomed that opportunity to clarify important issues about the applicable tax law in this case and to explain that the company concerned did not receive selective treatment and was taxed fully in accordance with the law.
I can confirm that the Commission has not requested any further information from Ireland subsequent to the launch of the formal investigation in June of this year.
It is important to emphasise that the Commission have only opened a formal investigation at this stage; they have not made a final determination on state aid in respect of Ireland.
For state aid to exist in this case, less tax must have been charged to the company than should have been applied under the normal rules of taxation, and this must have distorted competition within the single market.
As I have said previously, Ireland is firmly of the view that there is no state aid in this case and we will continue to defend all aspects of this vigorously.
