Wednesday, 14 Jan 2015

Written Answers Nos. 151-165

Universal Social Charge Application

Questions (151)

Tom Barry

Question:

151. Deputy Tom Barry asked the Minister for Finance the worth to the economy of a 1.5% rate of universal social charge to higher earners, that is over €100,000. [1087/15]

Written answers

Minister for Finance

It is not possible to answer the Deputy's question, as in its current form it is open to a series of interpretations. For instance the Deputy may wish to know the cost to the Exchequer from reducing, from 3% to 1.5%, the current USC surcharge which applies to that portion of self-assessed income over €100,000 per annum. Alternatively, he may be inquiring about the potential yield from extending the surcharge at the suggested rate to PAYE workers earning in excess of €100,000.

My officials have, on a number of occasions, sought clarification from the Deputy as to the precise nature of the question to which he seeks a response. However, no response was received. If the Deputy wishes to re-submit a question after discussing the matter with officials, I would be pleased to provide him with a targeted response.

VAT Rebates

Questions (152)

John McGuinness

Question:

152. Deputy John McGuinness asked the Minister for Finance if a full VAT return has been paid in respect of a person (details supplied) in County Kilkenny; and the reason for the delay. [1090/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that all VAT refunds due to the named individual have been made.  One VAT repayment was subjected to a routine check. Both refunds were made within the normal time frames as set out in Revenue's customer service standards.

Tax Yield

Questions (153)

Dara Calleary

Question:

153. Deputy Dara Calleary asked the Minister for Finance if he will provide in tabular form the total amount of money collected by the Revenue Commissioners in 2014 from self-employed persons; and the total amount of penalty interest collected by the Revenue Commissioners in that time. [1127/15]

Written answers

Minister for Finance

I assume that the Deputy is referring to that amount of Income Tax collected from Schedule D taxpayers (self employed persons).  I am advised by the Revenue Commissioners that the net receipts of Income Tax collected from Schedule D taxpayers in 2013, the last year for which returns have been filed and fully processed, is shown on the Commissioners' statistics webpage at http://www.revenue.ie/en/about/statistics/index.html, under the heading "Receipts - Revenue Net Receipts by Taxhead on an annual basis". These statistics will be updated in due course.

As regards penalty interest collected by the Revenue Commissioners, I am assuming that the Deputy is referring to the penalties and interest arising from Revenue's various compliance programmes. Generally speaking, I am advised that monetary settlements reached between Revenue and taxpayers in the context of a compliance intervention will consist of additional tax, interest and penalties.

I am informed by the Revenue Commissioners that the total amount of tax, interest and penalties arising from compliance interventions in 2014 on all businesses, including companies, self-employed persons and partnerships, is as follows:

Tax €	Interest €	Penalties €	Total €
449.9m	98.4m	40.5m	588.8m

For the Deputy's information, tax legislation provides that the current rates of interest on late payments are 8% per annum or 0.0219% per day, on overdue income, corporation, capital gains taxes or stamp duty, and 10% per annum or 0.0274% per day in respect of overdue VAT and Employers PAYE/PRSI.

Regarding penalties, these can be either fixed or tax-geared and are applied by the Revenue Commissioners in accordance with tax legislation.  The level of penalty arising will depend on a number of factors, including the type of tax default, the level of co-operation provided by the taxpayer in the course of the compliance intervention and the behaviour that gave rise to the default, for example whether the behaviour on the taxpayer's part was careless or deliberate.

Consultancy Contracts Data

Questions (154)

Dara Calleary

Question:

154. Deputy Dara Calleary asked the Minister for Finance the total moneys paid by his Department to external consultants, professional companies or advisers in relation to the jobs action plan in each year since and including 2012; if he will provide in a tabular form the list of those organisations who received money; his Department's procurement policy regarding this work; and if he will make a statement on the matter. [1137/15]

Written answers

Minister for Finance

The information requested by the Deputy is in the table below:

Action Plan for Jobs 2014	-	-	-
Action 206	Survey the demand for SME Credit	Public Procurement Guidelines Followed	Cost
Payee	-	-	-
Red C	October 2013 - March 2014	Yes	€58,978.50
Red C	April 2014 - September 2014	Yes	€58,978.50
	-	-	€117,957.00*
* This amount of €117,957 is reimbursed by AIB and Bank of Ireland	-	-	-€117,957.00
-	-	-	€0.00
Action 221	Implement the Communications Strategy developed by the SME State Bodies Group
Payee	-	-	-
Fiona Kearns	Graphic Design	yes	€1,768.00
Agency Assessments	Tender consultation	Yes	€1,230.00
Print Solutions	Pull-ups	Yes	€129.77
Health & Safety Authority	Stand at Taking Care of Business events	Yes	€530.24
ICAN	Advertising Agency - online advertising	Yes	€26,063.70
-	-	-	€29,721.71
Action 224	Oversee a focused research programme on SME access to finance issues that will inform the on-going deliberations and policy actions of the Group during 2014	-	-
Payee	-	-	-
ESRI	Research Programme on Funding SMEs in the Economic Recovery	Yes	€122,833.96
2014 Action Plan for Jobs spend	-	-	€152,555.67

Action Plan for Jobs 2013	-	-	-
Action 61	Survey the demand for SME Credit	Public Procurement Guidelines Followed	Cost
Payee	-	-	-
Red C	October 2012 - March 2013	Yes	€59,593.50
Red C	April 2013 - September 2013	Yes	€58,978.50
-	-	-	€118,572.00*
* This amount of €118,572.00 is reimbursed by AIB and Bank of Ireland	-	-	-€118,572.00
2013 Action Plan for Jobs spend	-	-	€0.00

 

Action Plan for Jobs 2012	-	-	-
Action 3.36	Survey the demand for SME Credit	Public Procurement Guidelines Followed	Cost
Payee	-	-	-
Mazars	October 2011 - March 2012	Yes	€60,885.00
Red C Research & Marketing Limited	April 2012 - September 2012	Yes	€61,438.60
-	-	-	€122,323.60*
* This amount of €122,323.60 is reimbursed by AIB and Bank of Ireland	-	-	-€122,323.60
2012 Action Plan for Jobs spend	-	-	€0.00

The Government recognises that SMEs are the lifeblood of the economy and play a vital role in the continuing recovery of employment growth in our country.  The Government remains committed to the SME sector and sees it as a key engine of ongoing economic recovery and growth.  Consequently the Department of Finance, working with the other relevant departments and agencies through the SME State Bodies Group, will continue to support its commitments contained in the Action Plan for Jobs with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.

Tax Collection

Questions (155)

Jack Wall

Question:

155. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare has paid their proper income tax payments; if not, if they are owed arrears regarding their payments; and if he will make a statement on the matter. [1339/15]

Written answers

Minister for Finance

I have been advised by the Revenue Commissioners that PAYE Balancing Statements (P21) will issue to the person concerned shortly for the years 2012 and 2013.  Based on these statements the person concerned has overpaid tax and universal social charge for these tax years. Refunds of the amounts overpaid will be made to the person concerned shortly.

The Revenue Commissioners do not currently have the necessary details to review the person's liability for 2014.  They have written to the person concerned requesting the necessary information, and on receipt of this a PAYE Balancing Statement for 2014 will be issued.

Property Tax Exemptions

Questions (156)

Brendan Griffin

Question:

156. Deputy Brendan Griffin asked the Minister for Finance the reason a disabled person (details supplied) in County Kerry has not qualified for the maximum valuation band reduction in the chargeable value of their sole residence which has been adapted considering the house prices in the area; and if he will make a statement on the matter. [1370/15]

Written answers

Minister for Finance

I am advised by Revenue that there are two different types of relief from Local Property Tax (LPT) available in respect of properties that are occupied by disabled individuals.

Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides for a full exemption from LPT for properties occupied by individuals who are permanently and totally incapacitated to such an extent that they are unable to maintain themselves by earning a living from any kind of work. In the specific case to which the Deputy refers, the person in question lodged a claim for full exemption but was advised that he did not meet the conditions for exemption as he is employed on a full-time basis.

The person subsequently lodged a claim for relief under Section 15A of the Finance (Local Property Tax) Act 2012 (as amended). This particular relief takes the form of a reduction in the chargeable value of a property that has been adapted to make it more suitable for occupation by a disabled person.  It is important to note that the chargeable value is not reduced by the actual cost of the adaptation work but, instead, is reduced by the amount (if any) by which the chargeable value has increased as a result of the adaptation work, i.e. the amount of the chargeable value that is directly attributable to the adaptation work. Even relatively substantial adaptations, such as the construction of additional rooms, may not have the effect of moving a property into a higher valuation band given that valuation bands cover a span of €50,000.  This means that, for many properties, there might not be any net effect for LPT purposes as a result of adaptation work.

In this case, the person valued his property at €200,000 at 1 May 3013, putting the property in the valuation band of €150,001 to €200,000. This property would have required a reduction in its chargeable value of at least €50,000 to move into the next lower valuation band of €100,001 to €150,000. As the person spent €50,000 on adaptation work, the chargeable value of the property would have increased by less than this amount. In any event, there is an upper limit on the allowable reduction in a property's chargeable value of the lower of the chargeable value attributable to the adaptation work and the maximum local authority grant that would have been payable (if the person had availed of such a grant) when the adaptation work was carried out. The maximum local authority grant that would have been payable in this case would have been €20,320 or €12,700 (if the property was less than 12 months old at the time).  Regardless of which of these limits would have applied, neither would be sufficient for the property to move into the lower valuation band of €150,001 to €200,000.

In this case, the adaptation work that was carried out does not have the effect of moving the property into a lower valuation band with the result that there is no change in the amount of LPT payable.

Inniúlacht sa Ghaeilge sa Státseirbhís

Questions (157)

Éamon Ó Cuív

Question:

157. D'fhiafraigh Deputy Éamon Ó Cuív den Aire Airgeadais bunaithe ar an treoir a thug an Roinn Caiteachas Phoiblí agus Athchóirithe do gach Roinn, cad é líon agus cad iad gráid na bpost dá mbeidh státseirbhísigh atá inniúil sa Ghaeilge agus sa Bhéarla ag teastáil; cad é líon na bpost sin a bhfuil duine leis an gcumas cuí Gaeilge agus Béarla iontu cheana féin, arna bhriseadh síos de réir gráid; cén cháilíocht Ghaeilge atá riachtanach do na poist sin; i gcás nach bhfuil an treoir ón Roinn Caiteachais Phoiblí agus Athchóirithe comhlíonta, cad é údar na moille agus cén uair a dhéanfar an scrúdú; agus an ndéanfaidh sé ráiteas ina thaobh. [1431/15]

Written answers

Minister for Finance

Ní gnách leis an Roinn seirbhísí a chur ar fáil don phobal go díreach. Mar sin féin, sa chás go bhfuil gá le haistriúchán agus nach bhfuil ball foirne atá inniúil i nGaeilge ag Rannóga, nó nach bhfuil an duine sin ar fáil, cuirfidh ball foirne ainmnithe ó Rannóg eile seirbhís ar fáil nuair is gá. Rinneadh suirbhé Teanga agus Cáilíochtaí le linn 2014 inar léiríodh go bhfuil inniúlacht i nGaeilge ag 7 ball foirne.  Is ionann sin agus thart ar 2.3% de líon foirne reatha na Roinne.

Léiríodh i suirbhé a rinneadh laistigh den Roinn roimhe sin gur phléigh 15 bhall foirne san iomlán le comhfhreagras scríofa i nGaeilge agus gur phléigh 2 bhall foirne le glaonna gutháin i nGaeilge in 2013. B'ionann sin agus 17 mball foirne nó 5.3% den líon foirne iomlán.  Cé nár phléigh formhór na mball foirne ach le líon beag míreanna (phléigh 11 bhall foirne le 3 mhír nó níos lú), phléigh ball foirne amháin le níos mó ná 9 gcás de chomhfhreagras scríofa le linn 2013.  Anuas air sin, ba i nGaeilge a fuarthas 3 mhír de chomhfhreagras Aire agus a cuireadh freagra orthu le linn 2013.

Generally the Department does not provide services directly to the public but where there is a need for translation and Divisions do not have a member of staff proficient in Irish, or where such a person is not available, a designated member of staff from another Division will provide a service in Irish where required. A Language and Qualifications survey was carried out during 2014 which indicated that 7 members of staff have some proficiency in Irish.  This represents some 2.3% of the current staff compliment of the Department.

An earlier survey within the Department revealed that in 2013 a total of 15 members of staff dealt with written correspondence in Irish and 2 dealt with telephone calls in Irish, totalling 17 staff or 5.3% of the total staffing numbers.  While most dealt with only a few items (11 staff dealt with 3 or fewer items), one member of staff dealt with more than 9 instances of written correspondence during 2013.  In addition, 3 items of Ministerial correspondence were received and answered in Irish during 2013.

Mortgage Interest Relief Application

Questions (158)

Michael McGrath

Question:

158. Deputy Michael McGrath asked the Minister for Finance the reason the mortgage interest relief TRS has been reduced in respect of a person (details supplied) in Dublin 15; and if he will make a statement on the matter. [1481/15]

Written answers

Minister for Finance

Mortgage interest relief is available through the Tax Relief at Source (TRS) system. The relief is available at varying rates and ceilings in respect of interest paid on a loan used for the purchase, repair, development or improvement of a sole or main residence.

The relief is available on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, up to and including the tax year 2017.

Persons purchasing their first qualifying residence are eligible for the higher ceiling (known as the 'first time buyer ceiling') in the first seven tax years of entitlement, when the maximum amounts of interest paid for which tax relief can be claimed are €20,000 for married/widowed persons and €10,000 for single persons. For tax years eight and onwards (up to 2017), the ceilings are €6,000 for married/widowed persons and €3,000 for single persons (known as the 'non-first time buyer' ceiling).

In the case to which the Deputy refers, the house in question was bought in 2008 and the 'first time buyer' ceiling applied from the 2008 tax year to the 2014 tax year inclusive.  For tax year 2015 and onwards the 'non-first time buyer ceiling' applies and for this reason the allowable relief has reduced with effect from January 2015.

VAT Rate Increases

Questions (159)

Brendan Griffin

Question:

159. Deputy Brendan Griffin asked the Minister for Finance the increase in VRT and VAT on new car sales in 2014 compared to 2013; and if he will make a statement on the matter. [1502/15]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the provisional increase in VRT and VAT on new registrations for 2014, compared to 2013, was €104m and €86m respectively. Those figures include the registrations of both new and used cars. The increase in VRT from new car sales was €88m while the increase in VAT was €63m.        

It should be noted that the VAT figure is partially estimated and that all 2014 receipts are provisional at this time and may be subject to revision.

Property Tax Collection

Questions (160)

Jerry Buttimer

Question:

160. Deputy Jerry Buttimer asked the Minister for Finance the reason a surcharge of 1.3% is applied when paying local property tax by credit card; and if he will make a statement on the matter. [1511/15]

Written answers

Minister for Finance

I am advised by Revenue that the credit card charge to which the Deputy refers is currently 1.1%, having been reduced from 1.49% with effect from 1 October 2014.

The rate is calculated under the terms of a Local Government Management Agency (LGMA) tender process for Public Sector payments (not just Revenue payments).

The charge, which is applicable to all tax payments made by credit cards, including Local Property Tax (LPT), is passed to the taxpayer under legislation provided for by Section 960EA  of the Taxes Consolidation Act, 1997 (inserted by Section 79 of the Finance Act 2011 (No. 6 of 2011). The charge is set at a level that covers the fees payable to the two parties that are necessary to provide the service, i.e. the merchant acquirer and the technical connection support.

The Deputy is aware that there are a number of other payment options to pay LPT.

VAT Rate Application

Questions (161)

Jerry Buttimer

Question:

161. Deputy Jerry Buttimer asked the Minister for Finance the reason there has been a change in the VAT classification of smoothies made of frozen yoghurt; the reason frozen yoghurt is no longer classified as milk and preparations and extracts derived from milk and thereby zero rated for VAT; his views that applying the standard rate of VAT to these smoothies in contrast to the zero rate of VAT which applies to less healthy drinks and foods contradicts Government health policy; and if he will make a statement on the matter. [1512/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that "smoothie" is a generic term for a range of blended products containing, among other things, fruit juices and other products derived from fruit, frozen yogurt and/or ice cream and, in some cases, chocolate and confectionery products.

Paragraph 8(1) of Schedule 2 of the Value-Added Tax Consolidation Act 2010, provides for the application of the zero rate to food and drink, but specifically excludes, from the zero rate, frozen yoghurt, juice extracted from, and other drinkable products derived from fruit or vegetables.  Accordingly, frozen yoghurt and smoothies are taxable at the standard rate (currently 23%).

The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply.  The EU VAT Directive generally provides that supplies of goods and services be chargeable to VAT at the standard rate. Member States can retain historical zero-rated VAT treatment under Article 110 of the EU VAT Directive, where a good or service was zero rated on and from 1 January 1991.  Ireland applies the zero rate to most food. In this context, it is not possible to apply the zero rate to any new food and drink items that have not already applied at the zero rate.

EU Directives

Questions (162)

Caoimhghín Ó Caoláin

Question:

162. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the actions that will be undertaken by his Department to transpose the EU directive on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features into Irish law; and if he will make a statement on the matter. [1614/15]

Written answers

Minister for Finance

The Payment Accounts Directive introduces rules on the transparency and comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features. The Payment Accounts Directive was agreed in August 2014.  Member States, including Ireland, are required to transpose the provisions of the Payment Accounts Directive into national law by 18 September 2016. My Department has responsibility for transposing this Directive and is currently planning the work required for transposition including any legislative and regulatory actions that may be required.

State Bodies Mergers

Questions (163)

Caoimhghín Ó Caoláin

Question:

163. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the progress towards the amalgamation of the offices of the Financial Services Ombudsman and the Pensions Ombudsman; and if he will make a statement on the matter. [1615/15]

Written answers

Minister for Finance

My Department is currently progressing the amalgamation of the Offices of the Financial Services Ombudsman and the Pensions Ombudsman.  A Steering Group chaired by my Department with representatives from the Financial Services Ombudsman, the Pensions Ombudsman, the Departments of Public Expenditure and Reform and Social Protection continue to meet to progress the amalgamation process.

It is intended as part of the merger process that one person will take on the existing separate roles of Financial Services Ombudsman and Pensions Ombudsman. A competitive appointment process is currently being run for the role of Financial Services and Pensions Ombudsman (designate). The successful  candidate will take up the role of Financial Services Ombudsman in March 2015 when the term of office of the current Financial Services Ombudsman ends and will be nominated as Financial Services and Pensions Ombudsman when the legislation to merge both offices is agreed by the Oireachtas.

Work is also ongoing on the physical merger of the Pensions Ombudsman staff and facilities into the office of the Financial Services Ombudsman.

General Government Debt

Questions (164)

Jerry Buttimer

Question:

164. Deputy Jerry Buttimer asked the Minister for Finance the general budget deficit in each of the past eight years; his forecast for the budget deficit over each of the next three years; and if he will make a statement on the matter. [1633/15]

Written answers

Minister for Finance

The reported general government balance for the period 2007-2013 and the projected figures for 2014-2018 as per Budget 2015 are:

-	2007	2008	2009	2010	2011	2012	2013
General government balance	453	-13,145	-19,357	-21,892	-14,764	-13,901	-9,947

 Source: Eurostat

-	2014f	2015f	2016f	2017f	2018f
General government balance	-6,868	-5,198	-3,763	-1,930	565

 Source: Department of Finance

Note: Balances shown are the underlying figures and exclude financial sector measures affecting the balance.

The forecast data is based on revenue and expenditure information which was available at the time of the 'Budget 2015' publication. These figures are subject to change depending on the possible revision of information and future decisions regarding revenue and expenditure policy.

Fiscal Policy

Questions (165)

Jerry Buttimer

Question:

165. Deputy Jerry Buttimer asked the Minister for Finance if he envisages that further tax increases or spending reductions will be required over the next three years to meet the Government’s commitment to reduce the budget deficit; and if he will make a statement on the matter. [1634/15]

Written answers

Minister for Finance

As the Deputy will be aware, the anchor for fiscal policy over recent years has been to achieve a deficit of less than 3% of GDP by 2015 and exit the Excessive Deficit Procedure (EDP).  Through the EDP process, Ireland's targets have always been set in headline deficit terms, for example, a deficit of less than 5.1% of GDP in 2014.

For 2015, the Budget forecasts a deficit of 2.7% of GDP, which provides a prudent buffer to achievement of the deficit target.  We were able to do this while also reducing taxes and increasing expenditure in key areas.

For 2016 and 2017, we expect Ireland to have exited the EDP, we will be subject to the preventive arm of the Stability & Growth Pact, where our deficit targets are no longer in headline terms but are actually set in structural terms.  In terms of Ireland's requirements under the fiscal rules, Ireland will have to make an annual improvement of more than 0.5% of GDP in structural terms per annum until it reaches its Medium Term Budgetary Objective (MTO) of a balanced budget.

In this context, decisions on taxation and expenditure would need to be considered in the context of the annual budgetary process. Our most recent Budgets forecasts indicate future compliance with the fiscal rules without the inclusion of aggregate tax increases or nominal expenditure cuts.