Written Answers Nos. 217 to 233
217. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding a domiciliary care allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [8228/15]
View answerThe person concerned applied for domiciliary care allowance in respect of three children on the 17th November 2014. The applications were not allowed as the children were not considered to satisfy the qualifying conditions for the allowance. A letter issued on the 18th February 2015 advising of these decisions.
In the case of an application which was refused on medical grounds the applicant may submit additional information and/or ask for the decision to be reviewed or they may appeal the decision directly to the Social Welfare Appeals Office within twenty one days.
218. Deputy Denis Naughten asked the Tánaiste and Minister for Social Protection the number of maintenance recovery cases which are outstanding; the number of children involved; the corresponding figures for those making such repayments; and if she will make a statement on the matter. [8265/15]
View answerAll liable relatives associated with every new One Parent Family (OFP) claim must be examined in accordance with the relevant legislation. The Department’s Maintenance Recovery Unit cannot pursue liable relatives who are living outside the Republic of Ireland, or those who cannot be traced based on the information provided by the parent claiming OFP. In certain cases, the Unit are advised that some birth parents do not know the other birth parent.
In 2014, the Unit examined 8,063 liable relatives. Of the liable relatives examined, 967 were either living outside the Republic of Ireland or could not be traced and 558 liable relatives were classified as unknown in 2014.
Overall, 2,586 Determination Orders issued to liable relatives who were assessed with a liability and had an apparent ability to pay maintenance. Liable relatives are advised that they can meet their maintenance liability by paying either the department directly or the OFP recipient directly.
Following the issue of the Determination Orders, 1,063 liable relatives commenced making payments/additional payments to the lone parents averaging €48.84 per week. A further 69 liable relatives started paying the Department directly and the average weekly payment was €60.64 per week. A total of 260 liable relatives made repayments directly to the Department in 2014.
There were 1,948 liable relatives with outstanding assessments at the end of 2014 and these have now been assessed.
219. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection if she will expedite an application for a domiciliary care allowance and a carer's allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [8270/15]
View answerAn application for domiciliary care allowance (DCA) was received from the person concerned on the 20th January 2015. This application has been forwarded to one of the Department’s Medical Assessors for their medical opinion. Following receipt of this opinion, a decision will be made by a Deciding Officer and notified to the person concerned. It can currently take 10 weeks to process an application for DCA.
The Department received an application for carer’s allowance from the person concerned on the 24th September 2014. She was refused carer's allowance on the grounds that the person being cared for is under 16 and not in receipt of domiciliary care allowance. She was notified of this decision on the 4th of January 2015, the reason for it and of her right of review or appeal.
220. Deputy Catherine Byrne asked the Tánaiste and Minister for Social Protection the number of persons currently in receipt of the over-80s allowance; the cost of this in 2014; the number of State pension recipients who currently receive an increase for a qualified adult, for a person who is 80 years of age or over; and if she will make a statement on the matter. [8273/15]
View answerThe over 80 allowance is an increase of €10 per week on the basic pension rate, which is automatically awarded to qualified pensioners on attaining 80 years of age. In the year ending 2014, the following were in receipt of the allowance at a total cost of approximately €75 million in a full year:
- 71,070 State pension (contributory) pensioners,
- 34,156 State pension (non-contributory) pensioners,
- 38,050 widow's, widower's or surviving civil partner's (contributory) pensioners.
An Increase for a Qualified Adult (IQA) is paid, generally, where the pensioner has a spouse or civil partner who is financially dependent on them, and who does not have enough contributions to claim a maximum rate State pension (contributory) in his/her own right. The maximum rate of an IQA for someone over 66 is €206.30, and so in most cases where it is claimed, such couples have additional income or means above their State pension, as otherwise they would obtain a higher payment by the dependent spouse making a claim to the State pension (non-contributory), which is means-tested and has a maximum personal rate of €219 weekly (plus additional allowances, such as the over-80 allowance, where applicable). In the year ending 2014, there were some 7,750 qualified adults on State pension (contributory) claims who are at least 80 years of age, and this is expected to increase in the coming years.
221. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding an appeal for a carer's allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [8296/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 15 January 2015. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers were received in the Social Welfare Appeals Office on 16 February 2015 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on 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.
222. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection her views on the proposal to require all public sector workers under the aegis of her Department who interface with service users to wear a name badge; and if she will make a statement on the matter. [8565/15]
View answerThe Department of Social Protection administers over 70 separate schemes and services serving a wide and diverse group of customers daily including families, people in employment, unemployed people, people with disabilities, carers, and older people. The overall aim of the Department is to provide people with the information, financial support and other services that they require in a timely and customer friendly way. The Department is committed to delivering a high quality customer service to all its customers.
The Department’s Customer Charter and Action Plan 2013 - 2015 sets out the level of service customers can expect when dealing with the Department and its commitment to provide a professional, efficient, courteous and timely service to all customers. The Customer Charter is prominently displayed in all public offices and is also available on the Department’s website at www.welfare.ie.
Under the Civil Service Code of Standards and Behaviour, civil servants are required to deal sympathetically, efficiently and promptly with members of the public. They are also required to give their names to any member of the public with whom they are dealing, except where given a special exemption, for example, on security grounds.
The Department operates a code of practice for Inspectors which requires Inspectors to identify themselves when interviewing a customer. Inspectors are also provided with a Certificate of Appointment which includes a photograph and this is shown to customers for identification purposes.
I wish to assure the Deputy that the Department is committed to ensuring that a customer service ethos is embedded in everything it does and is embraced by everyone in the organisation. While there is no current plan to introduce staff name badges, the Department will continue to consider and implement varied initiatives in order to further enhance the quality of our customer service provision.
223. Deputy Mick Wallace asked the Minister for Finance if he will provide a comprehensive list of all multinational companies that have their headquarters here; and if he will make a statement on the matter. [8124/15]
View answerResponsibility for the registration of Irish companies rests with the Department of Jobs, Enterprise and Innovation. I am advised by that Department that they do not have a list of all the multi-nationals that are have headquarters here and cannot provide this information as the Companies Registration Office ('CRO') have no means to identify a multi-national company. The CRO can identify foreign branches that are registered in Ireland, but not the parent company of foreign branches registered in other jurisdictions.
Further, I am advised by the Revenue Commissioners that it is not a requirement of Irish tax law for companies resident in Ireland for tax purposes to report to the Revenue Commissioners whether or not the registered office of the company in Ireland is the corporate headquarters of the entire group as such information is not needed for any purpose of taxation. Accordingly, it is also not possible for the Revenue Commissioners to provide the list requested by the Deputy.
224. Deputy Eoghan Murphy asked the Minister for Finance his plans to further reform the budgetary process; and if he is considering establishing an Oireachtas budgetary oversight office or budgetary scrutiny committee. [8215/15]
View answerThere have been significant changes in the budget process over recent years as a result of the "Two Pack" and other reforms to the Stability and Growth Pact. These changes included moving the Budget date to October in coordination with other EU Member States. The Government is always considering initiatives that would improve the budgetary process, particularly in relation to multi-annual planning. In this context, the Government is also considering the introduction of a Spring Economic Statement, which would incorporate the Stability Programme Update that must be submitted to the European Commission by the end of April each year.
The Deputy may be aware from my reply to a recent parliamentary question that I am considering a proposal for an independent office that would provide costings of alternative budgets on request from members of the Oireachtas. At the moment, my Department provides costings in regard to taxation proposals on a confidential basis to assist parties in advance of general elections or budgets. However, these costings are limited by being provided on a static, individual basis without analysis of the general government implications or potential second round economic effects.
Various models of this type of service and body already exist internationally, including independent bodies or offices under the aegis of parliaments. My current thinking is that this should by done by a unit within the ambit of the Oireachtas Commission and that it should then be independent of the Government and the Department of Finance.
225. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if he will provide details of regulations relating to engine cc numbers for cars which are allowed for drivers who have undergone amputation; if there is an appeals process to allow for cars of 3000cc; and if he will make a statement on the matter. [8230/15]
View answerThe 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, assistance with fuel costs, and an exemption from Motor Tax.
In respect of drivers with disabilities, Regulation 8(1)(d) of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) provides that repayment or remission of VRT and VAT may only be provided in respect of a motor vehicle with an engine whose capacity is not greater than 2,000 cubic centimetres. There is no provision in S.I. 353 of 1994 for an appeals process relating to engine size.
In respect of passengers with disabilities, Regulation 10(1)(c) of S.I. 353 of 1994 provides that repayment or remission of VRT and VAT may only be provided in respect of a motor vehicle with an engine whose capacity is not greater than 4,000 cubic centimetres.
226. Deputy Brian Stanley asked the Minister for Finance the criteria used by the Revenue Commissioners, before calling in the sheriff, to pursue taxes owing. [7704/15]
View answerI am advised by the Revenue Commissioners that debt collection/enforcement action, including referral to the Sheriff, is normally only deployed in circumstances where there is no meaningful engagement by the taxpayer or business to agree mutually acceptable payment arrangements.
The Commissioners have also assured me that they continue to be very conscious of the current economic climate and how it can impact on taxpayers or businesses in being timely tax compliant. For this reason, Revenue debt management caseworkers actively encourage taxpayers or businesses experiencing payment difficulties to engage with them as soon as difficulties start to arise so that solutions can be put in place that restore voluntary timely compliance as quickly as possible without the need to refer the debt for enforcement action.
However, where a taxpayer or business fails to meaningfully engage with Revenue, then it has no alternative but to refer the outstanding debt for enforcement to protect the Exchequer and to maintain a level playing field for the vast majority who pay their taxes in full and on time.
Specifically in regard to referring outstanding tax debts to the Sheriffs, Revenue has confirmed that they (the Sheriffs) are officers of the Court, as provided for by Section 12 of the Court Officers Act, 1945. Their debt collection activities are generally covered by the Enforcement of Court Orders Act, 1926, as amended and the execution of Revenue certificates is specifically provided for in Section 960L of the Taxes Consolidated Act 1997, as amended.
The Sheriffs are not directly accountable to Revenue in regard to their enforcement methodologies, but they are answerable before the Courts for any breach of the civil debt collection law. Once a tax debt is referred to the Sheriff, Revenue ceases to engage with the taxpayer or business in respect of the outstanding amount and all negotiations from that point onwards must be with the Sheriff.
227. Deputy Joe Carey asked the Minister for Finance his plans to create a third force in Irish banking using the credit union network; and if he will make a statement on the matter. [7734/15]
View answerWhile the Government is absolutely determined to support a strengthened and growing credit union movement, 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.
Credit unions exist to attain the economic and social goals of their members and it is a matter for an individual credit union to determine how it might develop its business model going forward. However, in doing so a credit union must retain the responsibility of ensuring members' funds are not put at undue risk.
I am always open to considering proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector.
The Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions and as such, any proposal in relation to credit unions would be subject to regulatory approval by the Regulator.
The Report of the Commission on Credit Unions recommended that the credit union sector be restructured on a voluntary, time-bound and incentivised basis, in order to improve efficiency and maintain the strength and stability of the movement into the future. The Credit Union Restructuring Board (ReBo), was set up under the Credit Union and Co-operation with Overseas Regulators Act 2012, with the objective of supporting the restructuring process to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model.
I would like to emphasise that while recognising the important role of credit unions as a volunteer co-operative movement and the distinction between credit unions and other types of financial institutions, the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall.
228. Deputy Terence Flanagan asked the Minister for Finance if consideration has been given to providing a property tax exemption to households where a high level of care is required; and if he will make a statement on the matter. [7817/15]
View answerI am advised by the Revenue Commissioners that while there is no specific exemption from Local Property Tax (LPT) for a household where high level care is provided, a residential property occupied by an individual who is disabled may qualify for a reduction in the market value of the property for LPT purposes. Additionally, where a residential property is occupied by an individual who is permanently and totally incapacitated, the property may be exempt from LPT. These two LPT reliefs are outlined below.
Section 15A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a reduction in the market value for LPT purposes of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided, or approved for grant aid, by a local authority and where the adaptation increases the market value of the property. The person with the disability must occupy the property as his or her sole or main residence after the adaptation is completed. Under the Disability Act 2005 disability means "a substantial restriction in the capacity of an individual to carry on a profession, business or occupation in the State or to participate in social or cultural life in the State by reason of an enduring physical, sensory, mental health or intellectual impairment."
Section 10B of the LPT Act provides that an exemption from the charge to LPT may apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Injuries Board (formerly known as the Personal Injuries Assessment Board) or a court, or where a trust has been established, specifically for the benefit of such individuals. In the case of adaptations to a property, the exemption only applies where the cost of the adaptation work exceeds 25% of the market value of the property before it was adapted.
Entitlement to the exemption provided for in section 10B will depend on whether the extent of a person's disability is such that they are permanently and totally incapacitated from being able to maintain themselves. "Maintain" in this context means a person's ability to support themselves by earning an income from working. Total incapacity in this context means that the individual is not capable of earning a living from any kind of work. The incapacity must also be permanent, that is, there must be no prospect of the individual recovering, or of the condition improving, to the extent that they become capable of maintaining themselves. I am also advised that whether households, where high level care is provided, qualify for relief under section 15A, or for exemption under section 10B, will depend on the facts and circumstances of each case.
The Deputy may be aware that following representations and a review of the reliefs, I announced on 2 May 2014 that I intend bringing forward legislation amending section 15A to remove the requirement that any adaptation work on the residential property must be grant-aided, or has been approved for grant-aid, by a local authority as one of the qualifying conditions for the tax relief. I also intend to remove the requirement, by way of legislation amending section 10B, that a permanent and totally incapacitated person must have benefitted from a Court or Injuries Board award or a public trust fund, to qualify for the exemption.
My officials wrote to the Chairman of the Revenue Commissioners advising her of my intention to retrospectively amend the legislation. In view of this, the Chairman has advised me that Revenue will apply the exemption and the tax relief in line with the proposed revised legislation. The Commissioners have published detailed guidelines which describe how a residential property qualifies for the reduction in market value or the exemption under the new arrangements, and how liable persons should make their application to Revenue. The Guidelines are available on their website at: Guidelines on Local Property Tax Relief For Disabled / Incapacitated Individuals.
Under the new arrangements, applications for the reduction in market value should be made on Form LPT6. Applications for the exemption should be made on Form LPT7 or, where the application concerns a permanently and totally incapacitated child for whom the Department of Social Protection pay a Domiciliary Care Allowance Form LPT8 should be completed. Applications should be sent to the Revenue Commissioners, LPT Branch, PO Box 1, Limerick. I am informed that Revenue will examine each application and may seek additional information if considered necessary before determining whether the person is entitled to a reduction in the market value of the property or to the exemption, whichever one is being claimed.
The Commissioners have also advised that no further action is required where a property previously qualified for the reduction in the market value under the LPT legislation and the liable person declared the reduced valuation when filing the 2013 LPT1 Return. Similarly, no further action is required where a property previously qualified for the exemption and the exemption was claimed when filing the 2013 LPT1 Return. The reliefs will continue to apply for all years up to 2016, inclusive.
I have no plans at this time for the further extension of exemptions in relation to the above issues.
229. Deputy Patrick O'Donovan asked the Minister for Finance the tax implications for a parent, who wishes to financially assist their child with mortgage repayments, where the mortgage is half-paid but the child is currently unemployed; and if the parent will be penalised in the same way as a parent helping a child with a deposit, under the new guidelines. [7826/15]
View answerI am informed by the Revenue Commissioners that where a parent gives money to a child to assist with mortgage repayments, it is a gift for capital acquisitions tax purposes. In this regard, it is no different to money gifted to a child towards a deposit on a house. Accordingly, the Revenue guidelines to which the Deputy refers (Guide to the CAT treatment of receipts by children from their parents for their support, maintenance or education) apply to a gift of money to assist with mortgage repayments in the same way as to a gift towards a deposit on a house. The guidelines are available on the Revenue website. Therefore, the first €3,000 of such a gift to a child in any year is exempt from CAT under the annual small gifts exemption. This means that a parent can give a gift to a value of €3,000 to a child (or to anyone else) in each calendar year without any CAT charge arising. Where relevant, two parents can make gifts to a child to the value of €6,000 in any year free of CAT or could, if they wished, gift €12,000 in total each year to each son or daughter and to their respective partner (e.g. fiancée, fiancé, daughter-in-law, son-in-law) free of CAT.
If gifts in excess of the annual small gifts exemption of €3,000 are taken in any year, there would be no liability to CAT unless the aggregate amount of gifts and inheritances (if any) taken by the child from his or her parents (not counting small annual gifts of up to €3,000 from each parent, which are exempt) exceed the child's life time tax-free threshold of €225,000. Where the aggregate of the gifts and inheritances received by a child from parents exceeds €225,000, only the excess is charged to tax as demonstrated in Example 1 of the Revenue guidelines.
230. Deputy Gabrielle McFadden asked the Minister for Finance the number of cases of reported petrol stretching the Revenue Commissioners have detected, or received, since January 2014; the number of these cases that are in counties Longford and Westmeath; if anyone has been prosecuted in relation to petrol stretching; and if he will make a statement on the matter. [7839/15]
View answer231. Deputy Gabrielle McFadden asked the Minister for Finance if the Revenue Commissioners have established the possible motives behind petrol stretching; and if he will make a statement on the matter. [7840/15]
View answerI propose to take Questions Nos. 230 and 231 together.
I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumer's vehicles, legitimate businesses and the Exchequer by all forms of fuel fraud.
Revenue has, since last summer, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low tax commodity to petrol, and the motive of the criminals who engage in this activity is to profit from the sale of the adulterated petrol, thereby defrauding motorists and the State. Revenue has received 135 complaints to date, the majority of which originated in Revenue's Border Midland West Region. The numbers of complaints relating to counties Longford and Westmeath are 3 and 7 respectively.
Every filling station about which a complaint was made has been visited by Revenue enforcement officers and fuel samples taken from them have been sent for analysis by the State Laboratory. Over 300 samples of petrol from filling stations and other sources have been referred to the State Laboratory.
The scientific analysis required is complex and time-consuming and the State Laboratory has conducted an extensive series of tests and re-tests on the samples. Despite this extensive testing, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests have resulted in the seizure of the product, and files are being prepared with a view to prosecution.
Following a series of further tests conducted by the State Laboratory, results were received which indicate the presence of traces of road diesel in several samples taken from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. There is no rational economic reason or fraudulent incentive for anyone to mix normal road diesel with petrol. If the problems that have come to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating vigorously the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of samples by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take swift and robust action and pursue prosecutions against alleged offenders where possible.
Revenue will also continue to work closely with An Garda Síochána and share information and intelligence with them on this issue.
I am also advised by Revenue that they undertake, on an ongoing basis, an extensive programme of compliance and enforcement actions to ensure adherence to the legal requirements governing the supply and sale of mineral oil and to allow action to be taken against fraud. This involves, among other things, carrying out analysis of the monthly oil movement returns that oil traders are required to make, and of other supply chain data. In addition, Revenue officers conduct control or compliance visits to mineral oil traders, during which they examine transport and movement documents and take samples of fuel for analysis.
I am satisfied that the Revenue Commissioners are taking all possible action to identify the problem and challenge any instances of identified fuel fraud, including, where possible, pursuing prosecutions against offenders.
232. Deputy Clare Daly asked the Minister for Finance his plans to assist those who invested their pension fund with a company (details supplied) and whose fund was misappropriated, leaving them without any retirement income, in view of the fact, that as a result of legislative change, neither the regulator nor any of the directors have been held accountable to date; and if he will make a statement on the matter. [7887/15]
View answerI understand that the Deputy is referring to the case of Custom House Capital (CHC) which is now in liquidation.
The Central Bank's investigation into CHC and persons concerned in its management has been on-going since the publication of the Final Report to the High Court by Court Appointed Inspectors dated 19 October 2011. Upon presentation of the Final Inspectors' Report to the High Court in October 2011, Mr. Justice Hogan ordered that CHC be wound up immediately. It should be noted that copies of the Final Report have been provided to other relevant state authorities for their consideration i.e. the Minister for Justice and Equality, to the Director of Public Prosecutions, to the Director of Corporate Enforcement, to the Revenue Commissioners and to the Garda Commissioner.
Following consultation with An Garda Siochána, the Central Bank's investigation has been deferred pending completion of investigations by An Garda Síochána.
In order to enhance the investor protection legislative framework, the Central Bank has been provided with extensive new powers since the onset of the financial crises to prevent the loss of client assets as occurred in the case of CHC. The principal developments are set out below:
New rules in respect of key management positions
Under the Central Bank Reform Act 2010 a new Fitness and Probity Regime came into effect on 1 December 2011 for all regulated financial service providers other than credit unions (whose fitness and probity regime came in on 1 August 2013). This new regime was fully implemented by 1 December 2012.
47 senior positions are prescribed as Pre-Approval Controlled Functions for regulated financial service providers other than credit unions. The prior approval of the Central Bank of Ireland is required before an individual can be appointed to a Pre-Approval Controlled Function.
Enhanced monitoring and enforcement powers for the Central Bank
The Central Bank (Supervision and Enforcement) Act, 2013 (the "Act") was enacted on 11 July 2013 and came into operation on 1 August 2013, with the exception of Section 72. This Act significantly enhances the capacity of the Central Bank to supervise regulated financial services providers and enforce financial services legislation. The fitness and probity provisions are reinforced by the whistleblower protections. The Act also provides for the Central Bank to commission, as part of the proper and effective regulation of financial service providers, an independent expert report at the cost of the financial service provider. It strengthens the authorised officer regime, enables the Central Bank to secure assurances from auditors of regulated financial service providers. It also strengthens the enforcement powers of the Central Bank and provides for a substantial increase in monetary penalties. The Central Bank also has the power to suspend or revoke a regulated entity's authorisation following an Inquiry.
Client Assets Regulations for investment firms
An independent review of the Regulatory Regime for the Safekeeping of Client Assets was published by the Central Bank in 2012 and is available on the Central Bank website. The Central Bank accepted the specific recommendations contained in this independent review and established a process of implementing all of the necessary changes required. In 2013 the Central Bank published on its website a Consultation Paper on Client Assets Regulations and Guidance, which will replace the existing client assets requirements (issued in 2007). It is envisaged that the new rules for the Safekeeping of Client Assets will be in place in the first half of this year.
Return of Investor Funds Client or Other Client Property Regulations under the Investor Compensation Act 1998
This Investor Compensation Act was amended in 2013 (section 33b) to give the Minister for Finance regulation making powers providing for the return of investors' funds or investment instruments following the appointment of an administrator, where the Minister considers it necessary to do so in order to provide for their efficient, equitable and prompt return. A Working Group, chaired by my Department and also represented by the Central Bank and the Investor Compensation Company Limited, was established in April 2014 to draft such regulations. A public consultation on these draft regulations was held (closed on 23 January 2015). I would anticipate being able to bring forward these regulations in the first half of this year. They will very much complement the Client Assets Regulations for investment firms.
The Central Bank provides updates on the CHC case which can be accessed at: http://www.centralbank.ie/press-area/press-releases/pages/updateoncustomhousecapital.aspx.
233. Deputy Terence Flanagan asked the Minister for Finance the position regarding a tax allowance in respect of a person (details supplied) in Dublin 5; and if he will make a statement on the matter. [7937/15]
View answerI am advised by the Revenue Commissioners that following contact with them by the person concerned in January 2012, his tax credits were increased in the light of the information he provided and which information he was to have confirmed in writing by the Department of Social Protection (DSP). He failed to subsequently provide this written confirmation.
In February 2015, following receipt of a health expenses claim for the year 2014, a review of the tax liability of the person concerned was carried out. It transpires that rather than two separate DSP pensions for the person concerned and his spouse, he is in fact in receipt of a DSP Old Age Pension with an increase in respect of a Qualified Adult. In the circumstances he is entitled to one PAYE Tax Credit only. He is not entitled to an additional PAYE Tax Credit or an additional Standard Rate Band in respect of the Qualified Adult portion of his pension.
The underpayment of tax for 2014 arises due to the removal of the additional PAYE Credit of €1,650 and the additional Standard Rate Band. The arrears will be collected through a reduction in the person s tax credits over a 4 year period commencing 1 January 2016.
I am advised by the Rrevenue Commissioners that an amended tax credit certificate will issue shortly which will show the correct tax credits due for 2015.
Should the person concerned require further clarification or assistance he may contact Ms Aisling Malone, City Centre/North City Revenue District, 14/15 Upper O Connell St., Dublin 1, telephone number 01 8655511.
