Peadar Tóibín
Question:195. Deputy Peadar Tóibín asked the Minister for Finance if he or an official from his Department will meet a person (details supplied) who has been refused a medical certificate for disabled drivers. [48332/14]
View answerDisabled Drivers and Passengers Scheme
Questions (195)
Written answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, repayment of excise duty on fuel, and an exemption from Motor Tax.
To qualify for the Scheme, an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations which apply to the following persons:
1. persons who are wholly or almost wholly without the use of both legs;
2. persons wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
3. persons without both hands or without both arms;
4. persons without one or both legs;
5. persons wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
6. persons having the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Regulations.
An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
Given the independence of the Medical Board of Appeal is provided for by Regulation 6(1)(e) of S.I. 353 of 1994, the Deputy will appreciate it would not be appropriate for myself or my officials to meet the citizen in question at this juncture.
Economic Data
Questions (196)
Bernard Durkan
Question:196. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which positive developments in the economy may be reflected throughout the public and private sectors in the next 12 months; and if he will make a statement on the matter. [48468/14]
View answerWritten answers
The Government's principal strategy in recent years has been to put the public finances on a stable footing as a precondition to the continuation of economic growth.
Estimates of economic activity for the third quarter of this year saw GDP growing by 0.1 per cent over the quarter and by 3.5 per cent year-on-year. Although this represents a slowdown on the exceptionally strong first half of the year, GDP still grew by close to 5 per cent year-on-year in the first half of this year.
On a full-year basis, the increase in economic activity is broadly-based with both domestic sectors and exporting sectors performing strongly. Importantly, domestic demand is continuing to grow, with consumption and investment up in the first three quarters of the year. Exports continued their strong performance up 15.5 per cent year-on-year, the strongest growth since 2001.
Recovery is perhaps most clearly evident in the labour market, with employment having increased in each of the last eight quarters, representing a net increase of nearly 85,000 jobs since the low-point in mid-2012. It is expected that employment will continue to increase and that unemployment will continue to fall steadily, to an average of 10.2 per cent next year.
Growth in the euro area is essential for sustained growth in Ireland. The sluggish growth being recorded in the euro area at the moment remains of concern. Notwithstanding that, Ireland has out-performed other EU Member States in recent quarters due in part to the competitiveness improvements achieved in recent years, as well as to Ireland's economy being more closely linked than those of other euro area countries to the UK and US economies. The Department of Finance is forecasting GDP growth of 4.7 per cent this year and 3.9 per cent in 2015. According to recent forecasts by the European Commission, Ireland is set to record the fastest rate of GDP growth in the EU this year and in 2015.
In terms of the public finances, policy measures implemented by the Government have resulted in a decline in Ireland's deficit in recent years. This decline has been managed in a phased manner, consistent with the dual needs of supporting domestic activity as well as repairing the public finances. All of Ireland's interim deficit ceilings under the Excessive Deficit Procedure have been met and, as a result, Ireland is firmly on track to achieve a deficit of below 3 per cent in 2015. This fall in the deficit has been important in restoring Ireland's credibility in the international markets; bond yields have fallen substantially since the high rates of mid-2011. The debt ratio has peaked and is now on a downward path.
Economic Data
Questions (197)
Seamus Kirk
Question:197. Deputy Seamus Kirk asked the Minister for Finance the GNP value of the current total workforce here on an hourly basis; and if he will make a statement on the matter. [47702/14]
View answerWritten answers
Based on data supplied to my Department by the CSO, gross national product (GNP) per hour worked in the Irish economy amounted to €43.18 in 2013.
These data are for total employment, including both employees and the self-employed. Full-year data for 2014 will be available next year.
A table for this series going back to 1998 is included for completeness follows:
|
Year |
GNP Per Hour Worked |
|
1998 |
23.69 |
|
1999 |
25.13 |
|
2000 |
28.17 |
|
2001 |
30.39 |
|
2002 |
32.95 |
|
2003 |
36.06 |
|
2004 |
37.77 |
|
2005 |
39.17 |
|
2006 |
41.55 |
|
2007 |
42.41 |
|
2008 |
41.02 |
|
2009 |
39.26 |
|
2010 |
40.84 |
|
2011 |
41.7 |
|
2012 |
42.54 |
|
2013 |
43.18 |
IBRC Liquidation
Questions (198)
Pearse Doherty
Question:198. Deputy Pearse Doherty asked the Minister for Finance the powers available to him to direct the special liquidators at the Irish Bank Resolution Corporation to refuse to pay any particular set of creditors; and if he will make a statement on the matter. [47750/14]
View answerWritten answers
Under Section 13 (1) of the Irish Bank Resolution Corporation Act 2013 I, as Minister for Finance, have certain limited powers of direction which can be exercised, namely:
- (a) to bid for such bank assets of IBRC and to acquire from IBRC, acting through a special liquidator, such bank assets of IBRC on such terms and conditions (including the consideration), as are specified in the direction;
- (b) to acquire from the Bank, such assets, liabilities or obligations on such terms and conditions (including the consideration), as are specified in the direction;
- (c) to provide such credit facilities to a special liquidator or IBRC on such terms and conditions, as are specified in the direction;
- (d) to take or refrain from taking any action, as specified in the direction, where the Minister is of the opinion that such a direction is necessary for the achievement of any of the purposes of this Act.
Full details of the Irish Bank Resolution Corporation Act 2013 can be found at http://www.irishstatutebook.ie/2013/en/act/pub/0002/index.html
Questions Nos. 199 to 201, inclusive, answered with Question No. 186.
IBRC Liquidation
Questions (202)
Pearse Doherty
Question:202. Deputy Pearse Doherty asked the Minister for Finance when the special liquidators at IBRC will produce a statement of affairs. [47783/14]
View answerWritten answers
I am advised by the Special Liquidators that they are not obliged to produce a statement of affairs. However, under Section 306 of the Companies Act, the Special Liquidators are required to send to the registrar of companies a statement containing the prescribed particulars about the proceedings in and position of the liquidation of IBRC after 2 years from the date IBRC was put into liquidation (6 February 2013).
Universal Social Charge Yield
Questions (203)
Michael McGrath
Question:203. Deputy Michael McGrath asked the Minister for Finance the proportion that the universal social charge represents of all income tax receipts in each year since its inception; the projected percentage in 2014 and 2015; and if he will make a statement on the matter. [47791/14]
View answerWritten answers
The data requested by the Deputy regarding the USC is set out in the following table. It is important to take into account that the figures displayed for 2011, 2012 and 2013 in the table are based on end-year outturns and are on a Revenue Net Receipts basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. The estimates and projected percentages for 2014 and 2015 are in respect of the most up to date forecast as contained in Budget 2015.
|
Year |
Total USC Receipts €million |
Total Income Tax Receipts (Including USC Receipts) €million |
Total USC Receipts as a % of total Income Tax Receipts |
|
2011 |
€3,114 |
€13,814 |
22.5% |
|
2012 |
€3,790 |
€15,151 |
25.0% |
|
2013 |
€3,930 |
€15,753 |
24.9% |
|
2014 |
€3,695 |
€17,180 |
21.5% |
|
2015 |
€4,175 |
€17,980 |
23.2% |
It should be noted that receipts, when received by the Revenue Commissioners, are apportioned on an estimated basis between Income Tax and USC and then finalised when end year tax returns are filed. This apportionment remains in place for Schedule D (self employed) taxpayers. However for PAYE taxpayers, since mid-year 2013, the monthly employer returns specify the Income Tax /USC split. The Revenue Commissioners have advised me that the 2013 P35 returns (received in early 2014) show lower USC payments and higher PAYE payments than was initially allocated in 2013. To offset an automatic reallocation based on these P35 declarations, receipts are being taken out of USC collection throughout 2014.
The net Exchequer effect of the reapportionment is and will remain neutral.
EU Issues
Questions (204, 207)
Pearse Doherty
Question:204. Deputy Pearse Doherty asked the Minister for Finance the list of projects submitted by the Irish Government as proposals under the EU's investment package; and if he will make a statement on the matter. [47840/14]
View answerPearse Doherty
Question:207. Deputy Pearse Doherty asked the Minister for Finance the reason the list published on the European Investment Bank website of proposals for the investment plan for Europe Ireland uniquely has requested that important information be redacted. [47906/14]
View answerWritten answers
I propose to take Questions Nos. 204 and 207 together.
The report on the European Investment Bank/Commission/Member State Task Force on investment in the EU, which includes the proposals submitted by the Department of Finance, can be found on the following website - www.eib.org/invest-eu
The project list was compiled on a best efforts basis under an extremely demanding timeline and was not approved/analysed by the relevant national authorities. Given the demanding timeline there was insufficient time to ensure that all commercially sensitive cost information was removed at an individual project level. I did not consider it appropriate to disclose information regarding projected costs for projects that might be the subject of a procurement process and therefore decided to redact the following columns from the published report: (i) Total Investment Cost, (ii) Investment in 2015-2017 and (iii) Barriers/Solutions. However in order to support Ireland's overall case regarding investment needs subtotals for each sector were included.
Departmental Meetings
Questions (205)
Lucinda Creighton
Question:205. Deputy Lucinda Creighton asked the Minister for Finance if his Department held meetings separate to the management advisory council meetings which were attended by either him or the Minister of State and the management advisory council; if so, if he will provide, in tabular form, the number of such meetings that occurred in 2011, 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [47863/14]
View answerWritten answers
In response to the Deputy's question I have interpreted Management Advisory Council as meaning Management Advisory Committee (MAC), which is the title of the Senior Management Group in my Department. I have held a number of meetings with a subgroup of this Committee. The number of entries for such meetings are recorded in my diary as follows:
2014: 3
2013: 20
The Minister of State did not attend the above meetings.
It is important to highlight to the Deputy that my diary is a working diary. As such these diary entries are not necessarily a full reflection of my engagement programme during the period. In some instances, meetings which I did attend are not recorded in my diary because they were organised at short notice. In addition other entries may not have taken place as they were cancelled at short notice. It is also important to highlight that I meet regularly with Senior Officials, including those from MAC, often on an individual basis.
Departmental Meetings
Questions (206)
Lucinda Creighton
Question:206. Deputy Lucinda Creighton asked the Minister for Finance if he will provide, in tabular form, the number of management advisory council meetings which were held for each of the years 2011, 2012, 2013 and to date in 2014; if he will provide, in tabular form, the number of management advisory council meetings that were attended by him, the Minister of State, the political adviser, the Secretary General and all other titles of attendees in the years 2011, 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [47879/14]
View answerWritten answers
In response to the Deputy, I have interpreted Management Advisory Council as meaning Management Advisory Committee (MAC), comprising those Senior Managers in my Department.
Information sought in tabular form has been sent directly to the Deputy.
Question No. 207 answered with Question No. 204.
Universal Social Charge Exemptions
Questions (208)
Jack Wall
Question:208. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare should be paying the universal social charge and levies; and if he will make a statement on the matter. [47907/14]
View answerWritten answers
I am advised by the Revenue Commissioners that based on the information available; the person concerned is exempt from the universal social charge (USC) since 2012.
USC is currently being deducted by the individual's pension provider. Revenue has now carried out a review for 2012 and 2013 and a refund together with PAYE Balancing Statements will issue directly to the individual. The person concerned has been contacted and advised the liability for 2014 will be reviewed at the end of the year on receipt of Form P60.
Revenue has arranged to update records for 2015 to include an exemption from USC.
Tax Code
Questions (209)
Robert Troy
Question:209. Deputy Robert Troy asked the Minister for Finance if there is a scheme in place to help a family-person who own a property in negative equity and because they cannot sell their property they are forced to lease it out and as consequence become a landlord; if supports are available to offset rental income against mortgage paid to date. [47914/14]
View answerWritten answers
I am informed by the Revenue Commissioners that, irrespective of whether or not a property is in negative equity, rental income from the property is taxable. The taxable amount is the gross rent less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act (TCA) 1997. The main deductible expenses are:
- any rent payable by the landlord in the case of a sub-lease;
- the cost to the landlord of any goods provided or services rendered to a tenant;
- the cost of maintenance, repairs, insurance and management of the property;
- the interest on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with PRTB registration requirements for all tenancies that existed in relation to the property in the relevant year); and
- payment of local authority rates.
In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
The effect of the deduction of allowable expenses from gross rent means that the amount of taxable rental income will often be substantially lower than the gross rent, and could, depending on individual circumstances, be nil.
In relation to interest on borrowings, section 105 of the TCA 1997 provides that a deduction is not due for interest payable in respect of a period prior to the first letting of a property. This means that no deduction would be allowable against rental income in respect of mortgage payments (whether interest or capital) made before the property was let.
Property Tax Administration
Questions (210)
Denis Naughten
Question:210. Deputy Denis Naughten asked the Minister for Finance the cost of establishing and maintaining the paper based local property tax system; the potential savings of a fully automated system; and if he will make a statement on the matter. [47915/14]
View answerWritten answers
I am informed by the Revenue Commissioners that the introduction of Local Property Tax (LPT) was the largest extension of the self-assessment system in the history of the State, with a customer base of over 1.3 million property owners.
With regard to the Deputy's request for the cost of establishing and maintaining the paper based LPT system, the Commissioners have confirmed that the paper based aspect of the LPT system is so integrated with the rest of the LPT system that it is not possible to provide a disaggregated figure for the Deputy. Most of the costs - namely IT developments, salaries, outsourced contact centre, advertising, printed material and postage - incurred in establishing and maintaining the LPT system would have been incurred regardless of whether dual paper and online systems were developed and operated.
I am further informed, however, that certain charges can be specifically attributed to the paper based system and these relate primarily to the production of the 2013 paper LPT1 form, the 2014 LPT1A (Payment Instruction) form, the scanning by an out-sourced third party (Billpost, a subsidiary of An Post) of paper forms submitted by property owners and the processing of cheques submitted with these forms. The Commissioners have confirmed that these costs amounted to approximately €520,000 for 2013. I am advised that relevant costs for 2014 are not yet available but are likely to be significantly less than the 2013 figures, as will be seen from the figures below.
In Revenue's public information campaign, the online filing option has been strongly promoted as the easiest way to file and pay and the success of this campaign is reflected in the number of owners who are using the online LPT facility on the Revenue website. In addition, the Deputy will be aware that any person who owns two or more properties is obliged to file electronically and Revenue provides a telephone based e-filing service for those property owners who do not have the capacity to file electronically themselves. I am informed that 77% of all LPT returns for 2013 were filed using the online LPT filing system and the balance of 23% were paper returns. For 2014, about 90% of those who were required to select a payment method completed their transaction online and the indications for 2015 payments so far are consistent with this figure.
While it is stated Government policy to move to online service provision, in view of the range of property owners who may not be currently "e" enabled and need the paper filing option to make their LPT Return and payment, I would not be in favour of moving to a fully automated LPT system at this point in time.
IBRC Liquidation
Questions (211)
Michael McGrath
Question:211. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 61 of 12 June 2014, if deposits not covered by the eligibility liability guarantee are now likely to be repaid once the liquidation process has been concluded; if the liquidator has been in touch with these depositors; and if he will make a statement on the matter. [47916/14]
View answerWritten answers
The Special Liquidators confirm that those deposits not covered by the DGS or ELG Schemes are unsecured creditors of Irish Bank Resolution Corporation Limited (in Special Liquidation).
The Special Liquidators have published advertisements and written to those known creditors in order to finalise their claims in the liquidation. Creditors in the UK and Ireland have until 31 March 2015 to submit their claims and those creditors in the US have until 31 May 2015.
It will be some time before the Special Liquidators will be in a position to advise on the likely dividends to be payable to creditors given:
1. The early stage in the creditor adjudication process;
2. The other contingent liabilities that may crystallise from litigation; and
3. The future receipts from the sale of the remaining assets.
Tax and Social Welfare Codes
Questions (212)
Stephen Donnelly
Question:212. Deputy Stephen S. Donnelly asked the Minister for Finance if he will verify the analysis recently published by Irish Small and Medium Enterprises which showed that a self-employed single person on an income of €15,000 pays eight times more tax than their employee on the exact same income and also has a lower entitlement to social welfare benefits; and if he will make a statement on the matter. [47922/14]
View answerWritten answers
It is important to understand that PAYE workers and the self-employed are taxed in different ways to reflect their differing circumstances. Employees are exempt from the charge to PRSI if their income does not exceed €18,304. However, once PAYE income exceeds this threshold they are liable to pay PRSI on the full amount at 4%, thus equalising the treatment of personal PRSI contributions, on all of the income, for PAYE and self-assessed workers on incomes above that level.
Self-assessed individuals are required to pay the greater of €500 per annum, or 4% of their income, whichever is higher, and do not benefit from the exemption threshold. However, in the case of employees, their employers are required to pay a PRSI charge in respect of each employee. Thus the contribution made to the Social Insurance Fund in respect of employees is usually higher than that made by a self-assessed individual. For instance, at the specified income level of €15,000, an employer would typically be required to pay PRSI of €1,275 in respect of the employee. PRSI of €600 is payable in respect of a self-employed individual with the same income. Entitlement to social welfare benefits is primarily a matter for the Minister for Social Protection. However, it is worth pointing out that for individuals with incomes in excess of €18,304 the total PRSI payable in respect of an employee is 14.75% of salary, while the total payable by a self-employed individual is 4%.
Employees in the PAYE system benefit from a PAYE income tax credit worth €1,650 per annum, to which the self-assessed are not entitled. The PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self-employed generally then had the advantage of paying tax on a preceding year basis. The argument was also made at the time that the general scheme of allowances for expenses discriminated against employees and in favour of other taxpayers.
There have been some changes since 1980. For example, the self-employed now pay tax on a current year basis. In addition, the PAYE allowance has become a tax credit. However, 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.
It is important to note that the changes to the Income Tax system introduced in Budget 2015 will benefit all those who pay income tax and or USC equally, regardless of whether they are PAYE or self-assessed taxpayers.