Written Answers Nos. 49-56
49. Deputy Sandra McLellan asked the Minister for Finance the revenue raised annually in local property tax in County Cork and nationally since its introduction; and if he will make a statement on the matter. [48556/14]
View answerI am advised by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT) is available broken down by city and county councils nationally and the most up to date figures for LPT collected in 2013 and 2014 are available on the Commissioners' website at: http://www.revenue.ie/en/about/statistics/lpt-compliance.html. Updates to these statistics will be published in due course.
The Commissioners have confirmed that by the end of December 2013, €318m had been transferred by Revenue to the Exchequer in respect of LPT and the 2014 LPT Exchequer receipts to 30 November 2014 are €449m. Exchequer receipts for LPT also include payments of Household Charge.
50. Deputy Sandra McLellan asked the Minister for Finance the amount of revenue that has been lost annually on illegal black market cigarettes since 2011; and if he will make a statement on the matter. [48559/14]
View answerThe Deputy will appreciate that estimating the scale of any illegal activity, and the tax loss to which it gives rise, is necessarily difficult and that estimates of such loss need to be viewed with caution. I am advised by the Revenue Commissioners that the extent of the illegal trade in cigarettes is estimated through annual surveys of smokers that are carried out for them and for the National Tobacco Control Office of the Health Services Executive by Ipsos MRBI. The results of those surveys for 2011, 2012 and 2013 suggest that the losses to the exchequer in excise duty and VAT attributable to the illegal trade in cigarettes were €258 million, €240 million and €212 million respectively, assuming that the illegal cigarettes consumed displaced the equivalent full tax paid quantities of cigarettes.
A further survey in respect of 2014 is underway and it is expected that the results will be available towards the end of the first quarter of 2015.
51. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will provide a change to the EU VAT directive and relevant orders to allow for a zero VAT rate on defibrillators as a measure to increase their availability; and if he will make a statement on the matter. [48602/14]
View answerThe VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories and training are also liable to VAT at the standard rate.
There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of defibrillators. Under the VAT (Refund of Tax) (No. 15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund.
With regard to making changes at EU level to provide that other goods or services can apply at the zero rate, I would point out that zero-rating is an historical derogation from the normal VAT rules, where the intention is that such VAT treatment is temporary, and should be removed over time. In addition, only a small number of Member States apply zero-rated VAT treatment and the EU Commission has actively being trying to simplify the VAT rating system to improve the efficiency of the Single Market. For these reasons, I do not consider that a proposal to seek a zero rate of VAT for the purchase of defibrillators for community and sporting organisations would succeed.
52. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will provide for a change to the EU VAT directive and relevant orders to allow for a zero VAT rate on EPI pens as a measure to increase their availability; and if he will make a statement on the matter. [48603/14]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. EPI pens, which provide injectable medicine, are subject to the standard rate of VAT rate of 23%. While Ireland is permitted to continue to apply a zero-rate to oral medicines it may not apply a zero rate to additional goods such as non-oral or injectable medicines.
With regard to making changes at EU level to provide that other goods or services can apply at the zero rate, I would point out that zero-rating is an historical derogation from the normal VAT rules, where the intention is that such VAT treatment is temporary, and should be removed over time. In addition, only a small number of Member States apply zero-rated VAT treatment and the EU Commission has actively being trying to simplify the VAT rating system to improve the efficiency of the Single Market. For these reasons, I do not consider that a proposal to seek a zero rate of VAT for the purchase of EPI pens would succeed.
53. Deputy Mary Mitchell O'Connor asked the Minister for Finance his plans to abolish or phase out the use of personal cheques; and if he will make a statement on the matter. [48605/14]
View answerWhile the Government does not plan to abolish the use of personal cheques, the National Payments Plan which I launched in April 2013 aims to reduce the overall reliance on cash and cheques and facilitate a movement to more efficient forms of electronic payments. The Plan analysed the extent of usage of personal cheques and recognised that elements of Irish society, such as the elderly, will continue to rely on cheques to ensure their participation in and access to the financial services framework. In that regard the Plan acknowledges that movement away from the usage of cheques by personal consumers will be encouraged by the availability of attractive alternative payment options from financial services providers. Some evidence is emerging of that transition through the increased availability of broader e-banking and mobile payment options but it is anticipated that this process will be ongoing for personal cheque users.
54. Deputy Seán Ó Fearghaíl asked the Minister for Finance if his attention has been drawn to the consequences for the persons of Newbridge, County Kildare that arise from the closure of credit union services at the end of the current year; if his attention has been further drawn to the operations of the charities regulator that have caused the local parish savings club to cease operations; the type of support available to low income families; if he will further indicate the action he and his Department will take to facilitate the re-establishment of a credit union in Newbridge, County Kildare; and if he will make a statement on the matter. [48618/14]
View answerWhile the Government is absolutely determined to support a strengthened and growing credit union movement and has highlighted its support for the return of credit union services to Newbridge, my role as Minister for Finance is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. In line with the Credit Union Act, 1997 (as amended) the registration of a new credit union and the extension of a common bond of an existing credit union is the responsibility of the Registry of Credit Unions at the Central Bank.
As the Deputy is aware, under a High Court order dated 10 November 2013, the assets and liabilities of Newbridge Credit Union Limited (excluding the premises) were transferred to permanent tsb plc (ptsb). However, the commercial relationship between ptsb and the former members of Newbridge Credit Union is a matter for ptsb and those individuals.
The Central Bank has stated that it would be open to meeting any party interested in restoring credit union services to the Newbridge area and will consider any application in relation to the extension of an existing common bond to include all or part of the common bond of Newbridge. The Central Bank has further informed me that, to date they have not received any formal proposals from any local group in relation to the establishment of a new credit union, but have stated that they will consider any proposal received.
Responsibility for policy on the regulation of charities is a matter for the Department of Justice and Equality. I am advised by the Charities Regulatory Authority that it would not be appropriate to provide information on individual engagements with charities, given the potential for reputational damage to such charities in such circumstances.
55. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the UK Chancellor who has announced measures to provide a VAT exemption for mountain rescue teams; his plans to introduce a similar measure in this State; and if he will make a statement on the matter. [48661/14]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. While we can maintain the zero rating on those goods and services which were zero-rated before 1 January 1991, the goods and services referred to by the Deputy do not fall within this category. Similarly, Member States may only apply a reduced VAT rate to those goods and services set out in Annex III of the EU VAT Directive (2006/112/EC). Safety equipment is not included in this annexe. Therefore, it is not possible to apply a zero or reduced VAT rate to these goods and services.
I note the statement from the UK Chancellor was to the effect that from April 2015 search and rescue charities will be able to have supplies of certain equipment zero rated by suppliers: this extends the existing UK treatment, which has existed since before 1991, whereby suppliers can zero rate supplies of specified goods and services to charities in very specific circumstances. In Ireland, there are no provisions to allow a charity engaged in search and rescue operations to recover VAT on its inputs and there is no scope within the VAT Directive to introduce a zero rating scheme where none existed at 1 January 1991.
56. Deputy Sean Fleming asked the Minister for Finance if persons living here who are 80 years of age and whose only source of income is a pension from the UK, and where this amount is over €400 per week, are liable to universal social charge in respect of any portion of their income for 2013, 2014 and for 2015; and if he will make a statement on the matter. [48721/14]
View answerA UK pension that is similar to a social welfare pension in this State is not liable to USC. Other than such pensions, however, Irish resident individuals are liable to pay tax, including universal social charge (USC), on income arising from Irish and foreign sources, including occupational pensions.
Individuals aged 70 years or over, whose aggregate income for the year is €60,000 or less, will only pay USC at rates of 1.5% on the first €12,012 of income and a maximum rate of 3.5% on the balance in 2015. These rates were 2% on the first €10,036 of income, and a maximum rate of 4% on the balance in 2013 and 2014.
However, the UK and Ireland have a convention in place to eliminate double taxation on income arising in one State where the individual is resident in the other State. Irish tax, under the terms of the convention, includes income tax and USC. If the individual has paid UK tax on the income, a credit is allowed in computing the Irish income tax and USC liabilities to ensure that the income is not subject to double taxation. Further information on the USC is available from the Revenue website at:
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
