Michael McGrath
Question:129. Deputy Michael McGrath asked the Minister for Finance the yield in 2014 from allowing persons early access to pension as provided for in budget 2013; and if he will make a statement on the matter. [5373/15]
View answerAdditional Voluntary Contributions
Questions (129)
Written answers
I am informed by the Revenue Commissioners that up to 30 September 2014, 12,104 individuals have availed of the option provided under section 782A of the Taxes Consolidation Act 1997 (as inserted by the Finance Act 2013) to access, before retirement, up to 30% of their Additional Voluntary Contributions (AVCs) with the amount withdrawn being subject to income tax (the withdrawals are exempt from the Universal Social Charge and PRSI). Up to 30 September 2014 the funds withdrawn under this option amount to about €94 million and income tax of about €37 million has been paid. The table shows the relevant amounts (rounded to the nearest €million) in respect of 2013 and 2014 (up to 30 September).
|
Year |
Number of Individuals |
Gross Amount withdrawn |
Income Tax paid |
Net payments after tax |
|
2013 |
9,179 |
€66 million |
€26 million |
€40 million |
|
2014 (to 30/9/14) |
2,925 |
€28 million |
€11 million |
€17 million |
The data for the end- December 2014 quarter is being collated by the Revenue Commissioners and will be available shortly.
Banking Sector Regulation
Questions (130)
Michael McGrath
Question:130. Deputy Michael McGrath asked the Minister for Finance the number of customer mobility measures that are in place in respect of Irish banks; his views on the effectiveness of such measures; and if he will make a statement on the matter. [5375/15]
View answerWritten answers
As part of the European Commission's approval of both AIB's and BOI's restructuring plans it was agreed that the banks would provide a Customer Mobility package to certain qualifying competitors. During 2014 KBC issued promotional material to BOI customers. AIB is currently seeking expressions of interest from relevant competitors wishing to have its advertising material issued to a proportion of AIB's customers.
In addition, in order to attract new entrants to the Irish banking sector, the Central Bank Supervision and Enforcement Act 2013 introduced changes to Section 149 of the Consumer Credit Act 1995, which provides for the approval of bank charges by the Central Bank. The effect of the change is that Section 149 of the Consumer Credit Act, 1995 will not be applied to new entrants in their first 3 years of commencing business in Ireland.
For customers considering switching their personal current account, the Central Bank has a Code of Conduct designed to assist with switching current accounts. This is a statutory code, meaning that all banks and building societies offering current accounts in Ireland must comply with it. The Code is available on the Central Bank's website: www.centralbank.ie. The website of the Competition and Consumer Protection Commission (CCPC) also lists the various charges imposed by the various financial institutions in Ireland for different types of transactions - www.consumerhelp.ie.
I would strongly encourage people to look at this comparison site with their specific circumstances in mind in order to decide which institution offers the best product for their pattern of account usage.
Insurance Compensation Fund
Questions (131, 140)
Michael McGrath
Question:131. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the total amount raised from the levies on insurance policies in 2014; and if he will make a statement on the matter. [5376/15]
View answerMichael McGrath
Question:140. Deputy Michael McGrath asked the Minister for Finance the current balance on the insurance compensation fund; his views on whether it is adequate to meet all possible claims on it; and if he will make a statement on the matter. [5387/15]
View answerWritten answers
I propose to take Questions Nos. 131 and 140 together.
The management and administration of the Insurance Compensation Fund is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. Every year the Office of Accountant produces the annual accounts of the ICF. As Minister for Finance, I am required to publish these under Section 2(8)(b) of the Insurance Act 1964. The 2013 Accounts were published in December 2014. The Accountant has advised that while the 2014 accounts are not yet complete, information regarding the current balance and the 2014 receipts is available.
The current balance on the ICF is €81,766,275.40. The ICF levy receipts received in the Accountant's Office in 2014 is set out in the table.
The role of the Minister for Finance in relation to the ICF is prescribed in Insurance Act 1964. The Minister may, on the recommendation of the Central Bank, advance from time to time to the ICF such sum as he thinks proper to enable payments out of the Fund to be made expeditiously. Advances shall be made on such terms as to repayment, interest and other matters as may be determined by the Minister for Finance after consulting the Central Bank.
As Minister for Finance I also have a role to protect the interests of the Exchequer, and in that context I seek to ensure that an administration process is carried out in the most efficient way possible and that any call on the ICF is kept to a minimum.
The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to assess the Fund from time to time to see if it needs financial support. Where it is of the opinion that the state of the ICF is such that financial support should be provided for it, it is allowed determine an appropriate contribution to be paid to the ICF by each insurer or insurer authorised in another EEA Member State. This is calculated as a percentage determined by the Central Bank, not exceeding 2 per cent, of the aggregate of the gross premiums paid to the insurer or insurer authorised in another EEA Member State in respect of policies issued in respect of risks in Ireland. Currently, the levy is set at 2 per cent.
The Central Bank wrote to me in January after carrying out its annual analysis and I am currently examining the Central Bank's recommendations in respect of 2015.
Tabular breakdown of Insurance Compensation Fund receipts in calendar year 2014 - Figures provided by the Office of the Accountant of the Courts of Justice 2nd February, 2015
|
Date |
Details |
Amount Received € |
|
10/1/2014 |
December 2013 collection from Revenue |
76,399.41 |
|
12/2/2014 |
January 2014 collection from Revenue |
9,599,334.22 |
|
13/3/2014 |
February 2014 collection from Revenue |
5,398,132.15 |
|
15/4/2014 |
March 2014 collection from Revenue |
25,397.53 |
|
15/5/2014 |
April 2014 collection from Revenue |
4,027,112.60 |
|
12/6/2014 |
May 2014 collection from Revenue |
13,433,972.71 |
|
10/7/2014 |
June 2014 collection from Revenue |
18,247.00 |
|
14/8/2014 |
July 2014 collection from Revenue |
14,497,444.32 |
|
17/9/2014 |
August 2014 collection from Revenue |
2,736,346.44 |
|
13/10/2014 |
September 2014 collection from Revenue |
29,010.87 |
|
12/11/2014 |
October 2014 collection from Revenue |
13,506,928.12 |
|
15/12/2014 |
November 2014 collection from Revenue |
2,321,297.98 |
|
- |
- |
€65,669,623.35 |
It should be noted that the above figures are net receipts less the cost and expenses of the Office of the Revenue Commissioners so the actual amount raised by the levy is higher than this.
Household Charge Collection
Questions (132)
Michael McGrath
Question:132. Deputy Michael McGrath asked the Minister for Finance the number of persons who have been subject to each of the following sanctions in respect of the household charge for 2012; mandatory deduction at source from salary or occupational pension; surcharge on income tax, corporation tax or capital gains tax returns; referral to the sheriff for collection; referral to the Revenue Commissioners' solicitors for collection through the courts; attachment of financial institution accounts held by the defaulting taxpayer; offset of household charge of any refunds due to the defaulting taxpayer across any other taxes; refusal of tax clearance certification; and interest penalty on late payments; and if he will make a statement on the matter. [5377/15]
View answerWritten answers
I am advised by Revenue that with effect from 1 July 2013, Section 156 of the Finance (Local Property Tax) Act 2012 (as amended) converted Household Charge (HHC) to Local Property Tax (LPT), increased all outstanding liabilities from €100 to €200 and made Revenue responsible for collection of those outstanding amounts.
As part of the handover of responsibility, Revenue received the HHC database from the Local Government Management Agency (LGMA) and carried out a comprehensive data matching exercise with its own LPT Property Register. The data matching exercise produced a list of properties in respect of which the HHC did not appear to be paid.
Once the 'unpaid' cases were identified Revenue announced a compliance campaign, including a six week window (to 31 March 2014), to allow people get both their HHC and LPT affairs in order. In regard to HHC, the six week window was necessary because Revenue could not be certain that the 'unpaid' list was fully accurate due to the format of the information held on the LGMA database, for example capturing the details of the person that physically paid the bill rather than the liable person and not capturing data in respect of exemptions/waivers.
In mid April 2014, Revenue wrote to the owners of approximately 274,000 properties who did not bring their HHC affairs up to date during the six week window. The notices clearly warned of the consequences of continued non-compliance and outlined the steps that needed to be taken to avoid debt collection/enforcement sanctions, including making immediate payment or updating the HHC record where either exemptions or waivers applied.
Revenue has informed me that since assuming responsibility for HHC it has collected in excess of €40m in respect of approximately 253,000 properties, the vast majority of which has been collected since the compliance campaign started. Revenue has also informed me that there are still ongoing discussions in a significant number of cases where the accuracy of the liability is being challenged. Further payments are being received on a daily basis as these cases are finalised and phased payment arrangements are being accepted when requested in the same manner as applies to LPT.
In regard to the Deputy's specific questions, Revenue has confirmed that to date it has issued mandatory instructions to employers/pension providers to deduct HHC in almost 45,000 cases and has offset over 19,000 payments to HHC from pending tax refunds. Revenue has also referred over 800 cases (combined HHC/LPT) to the Sheriff for collection and refused tax clearance certification in over 13,000 cases (combined HHC/LPT).
Revenue has also confirmed that neither interest on late payment charges or surcharges on Income Tax, Corporation Tax and Capital Gains Tax returns have been applied in respect of HHC and no cases have yet been referred for either solicitor action through the Courts or Attachment.
Tax Yield
Questions (133)
Michael McGrath
Question:133. Deputy Michael McGrath asked the Minister for Finance the yield from stamp duty on credit cards, debit cards and cheques in each year from 2012 to 2014; and if he will make a statement on the matter. [5378/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the yield from Stamp Duty on credit and debit cards and on cheques, for the years in question, is as shown in following table. Also shown is the yield from Stamp Duty on all cash cards for information.
|
Year |
Credit Cards €m |
Debit Cards Only €m |
Cash Cards* €m |
Cheques €m |
|
2012 |
51.64 |
0.03 |
16.54 |
30.97 |
|
2013 |
49.62 |
Nil |
18.32 |
25.32 |
|
2014 |
45.85 |
Nil |
18.76 |
27.42 |
* Cash cards include debit only cards, ATM only cards and combined ATM/debit cards.
Tax Yield
Questions (134)
Michael McGrath
Question:134. Deputy Michael McGrath asked the Minister for Finance the yield from the high earners restriction in each year since it was introduced; and if he will make a statement on the matter. [5379/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the additional Income Tax yield in respect of the restrictions introduced in the 2006 and 2007 Finance Acts, with effect from 1 January 2007, limiting the use of certain tax reliefs and exemptions by high income individuals is outlined in the table. These figures are based on returns received and analysis by Revenue.
|
Year |
Additional Tax* €m |
|
2012 |
63 |
|
2011 |
64 |
|
2010 |
80 |
|
2009 |
39 |
|
2008 |
40 |
|
2007 |
40 |
* Figures are rounded
Reports are published on the both my Department's and the Revenue Commissioners' websites that provide comprehensive analysis of the high earners restriction. The most recent report was in respect of 2012. The follow up report for 2013 will be published in due course.
Tax Exemptions
Questions (135)
Michael McGrath
Question:135. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and jobs supported under the employment and investment incentive and seed capital scheme in 2013 and 2014; and if he will make a statement on the matter. [5380/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the relevant information in relation to the Employment and Investment Incentive (EII) for the years in question is as set out in the following table.
|
Year |
Estimated Cost |
Number of Investors |
Number of Companies |
|
2013 |
€12.3 million |
1,006 (including 6 EII funds) |
185 |
|
2014* |
€15.1 million |
1,132 (including 4 EII funds) |
179 |
*Provisional
Data in relation to the number of jobs supported should become available at a later stage. Under the terms of the scheme in force in the years shown above, relief in respect of 30% of the amount invested in a qualifying company is granted to the investor in the year of investment, while the balance is only due where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Claims for the balance of the relief will be due from 2015.
The tax expenditure on the Seed Capital Scheme in 2013, the latest year available, was €1.1 million. There were 57 investors and 51 companies associated with these investments. Figures for 2014 will be available in due course.
Tax Exemptions
Questions (136)
Michael McGrath
Question:136. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and the number of jobs supported by the special assignee relief programme in 2013 and 2014; and if he will make a statement on the matter. [5381/15]
View answerWritten answers
I am informed by the Revenue Commissioners that they will shortly finalise a report, for presentation to me, in relation to the Special Assignee Relief Programme for 2012 and 2013, which I intend to publish in due course. The report, once completed, will contain the information requested by the Deputy and I will draw his attention to it when available.
I am also informed by the Revenue Commissioners that a similar report will be prepared in relation to 2014. However, as the tax returns for those who availed of the relief in 2014 are not due for submission to Revenue until later this year, the 2014 report will not be finalised until early 2016 at the earliest.
Tax Exemptions
Questions (137)
Michael McGrath
Question:137. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and the number of jobs supported under the foreign earnings deduction scheme in 2013 and 2014; and if he will make a statement on the matter. [5382/15]
View answerWritten answers
The full year estimated cost to the Exchequer of the Foreign Earnings Deduction (FED) for the 2013 tax year, the latest year for which complete statistics are available, was €0.8 million. 106 employees claimed the deduction for that tax year. Complete information in relation to 2014 tax year returns is not yet available, as the Form 11 tax returns for 2014 are not due to be filed until later this year.
There is no reporting requirement in relation to the number of jobs supported by the incentive. However, the Deputy will be aware that it was introduced to encourage the development of trade and exports to non-traditional markets for Irish goods and services. The conditions surronding qualification for the deduction were significantly enhanced in the recent Finance Bill, following a review of the FED, which was carried out last year. The report of that review was published on Budget day and is available at http://www.budget.gov.ie/Budgets/2015/Documents/FED_Report_Oct14_final.pdf.
Carbon Tax Yield
Questions (138)
Michael McGrath
Question:138. Deputy Michael McGrath asked the Minister for Finance the yield from carbon tax on solid fuel in 2013 and 2014; the additional revenue that will be raised from increasing the tax on solid fuel from 1 May 2014; and if he will make a statement on the matter. [5383/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the yield from Carbon Tax on Solid Fuel was €7.3m in 2013 and €17.2m in 2014. The Solid Fuel Carbon Tax was introduced on a phased basis at a rate of €10 per tonne of CO2 emitted on 1 May 2013 increasing to €20 per tonne from 1 May 2014.
The 2014 receipts are provisional at this time and may be subject to revision. Please note that for Solid Fuel Carbon Tax, the accounting period is a 2 month period and returns and payment are due to Revenue by the end of the following month (e.g., the May-June return and payment is due the end of July).
Fuel Rebate Scheme
Questions (139)
Michael McGrath
Question:139. Deputy Michael McGrath asked the Minister for Finance the number of hauliers currently availing of the rebate scheme for auto diesel; the total amount of the rebate in 2013 and 2014; his plans to streamline the process; and if he will make a statement on the matter. [5386/15]
View answerWritten answers
I introduced the diesel rebate scheme to provide for a repayment by the Revenue Commissioners to qualifying road haulage and bus operators of a part of the mineral oil tax paid on their purchases of auto-diesel for use in qualifying vehicles during the course of business.
The Revenue Commissioners inform me that there are 2,057 qualifying road transport operators currently availing of the scheme. These operators include road haulage operators and bus/coach operators. The total amount repaid in 2013 and 2014 was €0.7m and €21.1m respectively.
In order to facilitate broad access to the scheme and to enable effective validation of claims, the scheme is fully automated through the Revenue Online Service (ROS) and certain conditions apply to fuel purchases. These controls are necessary as repayment systems are vulnerable to abuse and it is essential that they are tightly controlled whilst not impacting negatively on legitimate business.
Purchases in bulk must be made from a licensed mineral oil trader, and delivered, in a quantity exceeding 2,000 litres, to a premises or place that is under the control of that qualifying road transport operator. Purchases by means of a fuel card, approved by Revenue for that purpose, also qualify for repayment and there is no minimum requirement on purchases made in this way. A fuel card will be approved where Revenue is satisfied that the fuel card provider will supply it with the information required about purchases of auto-diesel by means of that card. Fuel cards are widely available and are usable across the road network and there are a number of fuel card providers who can supply suitable fuel cards to road transport operators and fuel retailers.
The conditions governing the scheme and the level of automation enable Revenue to validate claims and ensure prompt processing of repayments. These anti-fraud safeguards are designed to protect the scheme from abuse and restrict its application to legitimate operators. I am satisfied that the current arrangements represent an appropriate balance between the efficient processing of claims and controlling the risk of fraud effectively and I have no plans to change them.