Written Answers Nos. 234-253
234. Deputy Thomas P. Broughan asked the Minister for Finance his plans to address the income inequalities here, as outlined in the report of the Think-tank for Action on Social Change, launched on 16 February 2015. [7949/15]
View answerI note the report by the Think-Tank for Social Change (TASC) and their views on inequality in Ireland.
While inequality is an important issue, not just for Ireland but globally, the Deputy should be aware that the TASC report identifies high levels of inequality in respect of market incomes. When inequality in Ireland is looked at in terms of disposable income, in other words what people have in their pockets, Ireland is in very much line with the EU 28 average. This is recognised by TASC in their report. This reflects, inter alia, the effectiveness of the Irish tax and social welfare system in reducing inequality of market incomes. This is evidenced by the fact that the tax and social welfare system in Ireland reduces the Gini-coefficient (which is a measure of income inequality) by more than any other country in the OECD.
While our tax and social welfare system already does much to reduce market income inequality a number of Government policies should help to reduce income inequality over the coming years. In the most recent Budget, the Government removed 80,000 people from liability to the Universal Social Charge (USC).
Lowering the tax burden on those lower down the income distribution not only has the effect of helping to further reduce disposable income inequality it also serves to make work pay, rewarding the unemployed who take up employment. It is well recognised that participation in the labour market is one of the most effective ways to reduce income inequality, especially market income inequality. In keeping with this, the Government has made a commitment to the unemployed through further education and training programmes such as Momentum and Springboard. These provide the skills necessary for those currently unemployed to benefit from job creation.
Beyond these polices the Government has established the Low Pay Commission which will advise the Government annually on the National Minimum Wage earned by those at the bottom of the wage distribution.
I am confident that the continued pursuit of these Government policies over the coming years will help to promote fairness and combat income inequality.
235. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the frustration among the public and business community that automated teller machines (ATMs) in the State are often not working, or have insufficient cash, particularly at weekends; and if he will make a statement on the matter. [7957/15]
View answer236. Deputy Pearse Doherty asked the Minister for Finance if he or the Central Bank of Ireland have any means of ascertaining the number of automated teller machines, ATMs, working, and able to dispense all the requested cash, at a given time, at State owned banks; if so, if he will provide those figures for the week to 7 February 2015; and if he will make a statement on the matter. [7958/15]
View answer237. Deputy Pearse Doherty asked the Minister for Finance the progress made on commitments provided by banks that more automated teller machines (ATMs) will provide €10 notes; and if he will make a statement on the matter. [7959/15]
View answerI propose to take Questions Nos. 235 to 237, inclusive, together.
It is the responsibility of the banks to ensure the efficient running of the ATM network and for ensuring that ATMs are sufficiently maintained and have adequate levels of cash in them.
In regard to Question No. 237, ref. 7959, the National Payments Plan, which was published in April 2013, recommended that a minimum of 5% of all notes (by volume) distributed from non-retailer ATMs by each financial institution should be €10 notes by Q3 2014. The Central Bank of Ireland have advised me that this target was met.
238. Deputy Seán Kenny asked the Minister for Finance his plans to provide funding to the Revenue Commissioners for the purchase of additional mobile X-ray vans; and if he will make a statement on the matter. [7982/15]
View answerI am advised by the Revenue Commissioners that Revenue currently has three mobile scanner systems. Two of these are mobile x-ray container scanning systems that are based at Dublin Port and Rosslare Ferry Port respectively. Both of these scanners are available for deployment at other ports, and at other locations such as warehouses, as required, and Revenue uses them, on the basis of risk assessment, at a range of locations. The other mobile scanning system is a scanner van, a specialist vehicle incorporating x-ray and radiation detection facilities. It is used for monitoring baggage and cargo at airports and ports for narcotics, cigarettes, radioactive material and other contraband. It also allows Revenue officers to carry out control actions at other locations such as warehouses and courier depots.
The Revenue Commissioners continuously review their detection technology requirements, taking account of developments in those technologies and emerging circumstances and requirements. I understand that the performance of the scanner van has been under evaluation on an ongoing basis since its acquisition, and that the possibility of augmenting this resource with additional similar units is being considered. The question of funding will be addressed when a final determination has been made on scanner van requirements.
239. Deputy Michael McGrath asked the Minister for Finance if a refund of income tax will be granted to a person outside of the normal four-year rule, if the overpayment of tax arises due to an error on the part of the Revenue Commissioner's by including income in the wrong spousal column, on the P21 balancing statement; and if he will make a statement on the matter. [7989/15]
View answerI have been advised by the Revenue Commissioners that they are statutorily debarred from making repayments of tax outside of the four year period from the end of the tax year in respect of which the tax was paid, other than in very specific circumstances (for example, where there is a factual error in a tax computation). Equally, Revenue can not seek payment of tax from a taxpayer outside of a four year time frame, other than in very specific circumstances (for example where an incomplete tax return is filed).
The question of whether or not a repayment claim made outside the four year period falls within the specific circumstances referred to above is considered by Revenue on the basis of the particular facts of each case and, as such, it is not possible to confirm for the Deputy that a refund will be made in the particular circumstances of the case described, based solely on the information provided in the question.
However, if the individual the Deputy is referring to submits all relevant information to his or her local Revenue Office in relation to the claim, the matter can be fully considered by that office on the basis of the full facts, having regard to the statutory provisions.
240. Deputy John McGuinness asked the Minister for Finance if the Revenue Commissioners will investigate the case of a person (details supplied) in County Kildare in respect of that person's employment. [7999/15]
View answerI have been advised by the Revenue Commissioners that in the light of the information available to them and the information now provided they will make contact with the person concerned to clarify the position.
241. Deputy Pearse Doherty asked the Minister for Finance if he will provide, in detail, all the spending and investments from the National Pensions Reserve Fund's discretionary portfolio; including the Ireland Strategic Investment Fund since March 2011, showing the balance at the end of each year, and as of 1 February 2015. [8079/15]
View answerThe Deputy will already be aware that the assets of the National Pensions Reserve Fund (NPRF) became assets of the Ireland Strategic Investment Fund (ISIF) on 22 December 2014, except for assets governed by foreign law which remain NPRF assets until their transfer. The ISIF will be used to make commercial investments that support economic activity and employment in Ireland. For the purposes of this material, the asset analysis is based on a combination of both funds.
The National Treasury Management Agency (NTMA) has advised that the preliminary value of the discretionary portfolio held by the ISIF/NPRF as at the 31 December 2014 is €7.2bn (this is a preliminary unaudited figure). The detailed schedule of investments as at 31 December 2014 will be included in the Fund's Annual Report, which will be published before the end of June 2015, in accordance with statutory requirements.
The Discretionary Portfolio Asset Allocation as at 31 December 2014 is set out as follows:
|
Asset Class |
Value (€m) |
% of Discretionary Portfolio |
|
Large Cap Equities |
1,281 |
17.9 |
|
Small Cap Equities |
239 |
3.3 |
|
Emerging Market Equities |
255 |
3.6 |
|
Total Quoted Equities |
1,775 |
24.8 |
|
Value of Equity Put Options |
31 |
0.4 |
|
Inflation Linked Bonds |
148 |
2.1 |
|
Corporate Bonds |
1,378 |
19.2 |
|
Cash & Cash Equivalents |
2,403 |
33.6 |
|
Total Financial Assets |
3,929 |
54.9 |
|
Private Equity |
234 |
3.3 |
|
Property |
244 |
3.4 |
|
Commodities |
307 |
4.3 |
|
Infrastructure |
369 |
5.2 |
|
Absolute Return Funds |
274 |
3.8 |
|
Total Alternative Assets |
1,428 |
19.9 |
|
TOTAL DISCRETIONARY PORTFOLIO |
7,162 |
100.0 |
The NTMA will report on ISIF investments on a quarterly basis in summary form and in detail at year end, therefore the next data published will be as at 31 March 2015.
A detailed schedule of investments is included in the annual report and financial statements for the NPRF for the year-ended 2011, 2012 and 2013 in the section "Portfolio of Investments". The expenditure incurred in 2011 and 2012 can be found within note 6 to the respective financial statements. The expenditure incurred in 2013 can be found within note 5 to the 2013 financial statements. The expenditure incurred in 2014 is being finalised as part of the ongoing year end accounting process.
The link to each report on the NPRF website is as follows:
http://www.nprf.ie/Publications/2014/AnnualReport2013.pdf
http://www.nprf.ie/Publications/2013/AnnualReport2012.pdf
http://www.nprf.ie/Publications/2012/NPRFReport2011.pdf
242. Deputy John McGuinness asked the Minister for Finance the amount of lost revenue to the State by diesel laundering over each of the past five years; the number of cases successfully prosecuted of those involved in the practice; the revenue collected by the State, arising from successful prosecutions; the level of resources allocated to investigate such matters; and if he will make a statement on the matter. [8091/15]
View answerThe Deputy will appreciate that it is inherently difficult to estimate the scale of any illegal activity or the impact of that activity on the Exchequer. The Revenue Commissioners advise me that, while there is no reliable estimate of the extent of illegal activity in the fuel sector, they recognise that fuel fraud, including the laundering of markers from rebated fuel, is a significant threat to Exchequer revenues. Action against this illegal activity is, therefore, a priority for Revenue, which is implementing a comprehensive strategy to tackle the problem. Key elements of this strategy include the following:
- The licensing regime for auto fuel traders was strengthened with effect from September 2011 to limit the ability of fuel criminals to place laundered fuel on the market.
- A new licensing regime was introduced for marked fuel traders in October 2012, designed to limit the ability of criminals to source marked fuel for laundering.
- New requirements in relation to fuel traders' records of stock movements and fuel deliveries were introduced to ensure that data would be available to support supply chain analysis.
- Following a significant investment in the required IT systems, new supply chain controls were introduced from January 2013. These controls require all licensed fuel traders, whether dealing in road fuel or marked fuel, to make monthly electronic returns of their fuel transactions to Revenue. These data are being used to identify suspicious or anomalous transactions and patterns of distribution that will support follow-up enforcement action where necessary.
- Close co-operation, in the framework of the Cross Border Fuel Fraud Enforcement Group, with other enforcement authorities in this jurisdiction and in Northern Ireland in combating the all-island problem of fuel fraud. This has proven effective in supporting the identification and targeting of the organised crime groups, many with links to paramilitaries and former paramilitaries, which are responsible for the bulk of fuel fraud.
- Following a joint process, Revenue and HM Revenue and Customs have identified a new and more effective product to mark rebated fuels. The new marker will be produced by Dow Chemical Company and will be introduced in the State and in the UK from the end of March 2015, providing a significant boost in the fight against illegal fuel laundering in both jurisdictions. In addition, I have introduced a range of legislative measures in recent years to support Revenue's work in fighting fuel fraud, including reckless trading provisions that ensure a mineral oil trader is liable for the mineral oil tax evaded where that trader knew, or was reckless as to whether or not, in making a supply or delivery, he or she was participating in a transaction or series of transactions connected to the evasion of mineral oil tax. In the Finance Act 2014, I introduced measures to further strengthen Revenue's ability to refuse or revoke a mineral oil trader's licence where the trader does not comply with excise law, does not maintain adequate stock management systems and records, or provides false or misleading information. Revenue's strategy has yielded significant results. Since mid-2011, 134 filling stations were closed for breaches of licensing conditions, over 3 million litres of oil have been seized and 31 oil laundries were detected and closed down. Industry sources indicate a much-reduced incidence of laundered fuel on the market, and road diesel consumption and tax revenues have risen significantly compared with a couple of years ago. Obviously, other economic factors have contributed to this growth but reduced fraud is also an important factor. There were four convictions between 2010 and 2014 for offences related to the illegal laundering of markers from fuel. In addition, there were twelve convictions in that period for offences related to the sale or distribution of laundered fuel, in respect of which the penalties imposed by the Courts included fines amounting to €37,000. The Revenue Commissioners are not responsible for the collection of fines imposed by the Courts and would not have details about their payment. The Revenue Commissioners work to ensure also that the tax affairs on any persons found to be involved in the illegal laundering of fuel are subjected to full and rigorous examination, and that monies owed, including interest and penalties where applicable, are recovered. In relation to the resources allocated to investigate this form of fuel fraud, I am informed by the Revenue Commissioners that they are a fully integrated tax and customs administration and that it is not possible to disaggregate resources deployed exclusively at any given time on action against fuel laundering. Revenue currently has approximately 2,000 staff engaged on activities that are dedicated to targeting and confronting non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. The Revenue Commissioners were subject to the Employment Control Framework staffing reductions imposed since 2009. Revenue's overall staffing levels have reduced from a total of 6,581 full-time equivalents at the end of 2008 to the current level of 5,661. Notwithstanding this reduction, Revenue staff resources assigned to compliance activities have been maintained at around 2,000. I am advised by the Revenue Commissioners that they are committed to ensuring that, despite the staffing reductions, enforcement work generally, and action against fuel fraud specifically, will continue to be resourced to the maximum extent possible.
243. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details suppled) regarding a fuel rebate; and if he will make a statement on the matter. [8100/15]
View answerI introduced this scheme in the Finance Act 2013 in order to provide for a repayment 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 the course of business. In order to address the risk of widespread abuse of the scheme, provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased. 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.
Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that the oil traders are required to make to Revenue. These returns form part of the supply chain controls introduced by Revenue to tackle the problem of illicit fuel, prior to the introduction of the diesel rebate scheme. The return provides an electronic record of the purchases, stock movements and sales of mineral oil each month by licensed mineral oil traders, by oil product type, including bulk sales to customers exceeding 2000 litres. This information can be used to verify electronically claims for bulk purchases under the diesel rebate scheme.
Purchases by means of a fuel card, approved by Revenue for the purpose of the scheme, 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.
As outlined, the scheme is not solely confined to the minimum purchase requirement of 2,000 litres. Purchases by a qualifying coach operator by means of a fuel card approved by Revenue are not subject to a minimum purchase requirement and allow the coach operator concerned to avoid fuel storage while claiming under the scheme, thereby alleviating the security risks identified.
The current purchasing arrangements under the scheme are necessary to enable Revenue to manage repayments to qualifying transport operators while controlling the risk of fraud. I am satisfied that the purchasing arrangements achieve the right balance between making the scheme available to compliant transport operators and allowing Revenue to manage effectively the risk of fraud and I do not plan to change these arrangements.
244. Deputy Pearse Doherty asked the Minister for Finance if he has had discussions with the European Commission regarding the expenditure benchmark, and its application to Ireland; and if he will make a statement on the matter. [8137/15]
View answerMy officials are in regular engagement with the Commission on the interpretation and implementation of fiscal rules, including through the Output Gap Working Group and the Alternates sub-committee of the Economic & Financial Committee.
The Expenditure Benchmark will formally apply to Ireland once we enter the preventive arm of the Stability & Growth Pact. In terms of the application of the Expenditure Benchmark to Ireland, most of the components determining the calculation for 2016 are fixed at this point. The outstanding variable for 2016 is the relevant GDP deflator, which will be taken as the average of the Commission's 2015 Spring and Autumn forecasts. Given the composition of the Irish economy, there is significant volatility around GDP deflator estimates for Ireland in particular. The Commission's Spring forecast is expected to be published in the coming months. The European Commission are expected to inform Member States of the country-specific reference rate and the convergence margin components of the benchmark to apply to each Member State for the years 2017-2019 in late 2015. Discussions around these matters remain ongoing at technical level.
245. Deputy Pearse Doherty asked the Minister for Finance if the Budget Statement 2016 will be drafted with full regard to the expenditure benchmark; and further to Parliamentary Question No. 43 of 3 December 2014, if he will provide an update on these figures. [8138/15]
View answerAfter Ireland corrects its EDP in 2015, it will enter the preventive arm of the Stability & Growth Pact from 2016 onwards. This will mean that Ireland will be subject to a series of fiscal rules, including the achievement of our Medium Term Objective (MTO) through the annual improvement in the structural balance and the Expenditure Benchmark. In developing Budget 2016, Ireland will comply with the requirements of the Stability & Growth Pact.
With regard to an update of the figures in Parliamentary Question No. 43 of 3 December 2014, the general government expenditure forecasts are unchanged to those published in Budget 2015. The Spring Economic Statement due to be announced in April will contain revised forecasts for general government expenditure.
246. Deputy John McGuinness asked the Minister for Finance if an application for single person child care credit will be approved in respect of a person (details supplied) in County Kilkenny in view of the fact that the person's circumstances remain the same as in 2014. [8145/15]
View answerI am advised by the Revenue Commissioners that the application for SPCC has been approved in respect of person concerned. The increased tax credit will be reflected in a revised tax credit certificate that will be sent to the person concerned shortly.
247. Deputy Thomas P. Broughan asked the Minister for Finance his views on concerns at the current levels of home mortgage variable interest rates being charged by the pillar and other banks, especially in view of the much lower average level of similar interest rates charges across the eurozone. [8176/15]
View answerThe Deputy may be aware that this is a topic that has been raised through previous parliamentary questions and was subject to lengthy discussions at the most recent meetings of the Joint Committee on Finance, Public Expenditure and Reform with the banks' CEOs.
At the Committee the banks pointed out that in comparing the SVR mortgage margin of Irish banks to other jurisdictions, it is important to understand that the difference reflects many factors and in particular loss experience which determines the capital that must be held against these loans. In recent years this has obviously been very different for Irish banks compared to their counterparts in other European countries. Funding models also differ between Ireland and other countries. Finally, they pointed out the shortcomings of comparing mortgage rates against short term ECB funding rates given the significant liquidity risk which is a feature of mortgages that typically have a term of 20+ years.
The Deputy will be aware however that I, in my role as Minister for Finance, have no direct function in the relationship between the banks and their customers. I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution. This includes decisons in relation to product interest rates as determined by the banks from time to time.
Notwithstanding the State's shareholdings in the banks, I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure their value as an asset to the State. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at http://banking.finance.gov.ie/presentations-and-latest-documents.
248. Deputy Seán Ó Fearghaíl asked the Minister for Finance if the Revenue Commissioners treat payments to Reserve Defence Force Army Reserve/Naval Service Reserve volunteers the same as payments to employees, meaning that income tax and PRSI and USC contributions must be withheld; and if he will make a statement on the matter. [8189/15]
View answerI am informed by the Revenue Commissioners that the Department of Defence make the appropriate deductions of tax, USC and PRSI under the PAYE system on the making of payments to members of the Army and Naval Service Reserve.
249. Deputy Jerry Buttimer asked the Minister for Finance the number of persons who applied to the Revenue Commissioners for the artists' exemption scheme since 2005; and if he will make a statement on the matter. [8260/15]
View answer250. Deputy Jerry Buttimer asked the Minister for Finance the number of persons who were granted an exemption by the Revenue Commissioners under the artists' exemption scheme since 2005; and if he will make a statement on the matter. [8261/15]
View answer251. Deputy Jerry Buttimer asked the Minister for Finance the number of persons who appealed a refusal under the artists' exemption scheme to the appeals commissioner, since 2005; and if he will make a statement on the matter. [8262/15]
View answer252. Deputy Jerry Buttimer asked the Minister for Finance the number of appeals under the artists' exemption scheme that were successful since 2005; and if he will make a statement on the matter. [8263/15]
View answer253. Deputy Jerry Buttimer asked the Minister for Finance the number of successful appeals under the artists' exemption scheme which were challenged by the Revenue Commissioners since 2005; and if he will make a statement on the matter. [8264/15]
View answerI propose to take Questions Nos. 249 to 253, inclusive, together.
Section 195 of the Taxes Consolidation Act 1997 (TCA 1997) empowers the Revenue Commissioners to make a determination that certain artistic works are original and creative works generally recognised as having cultural or artistic merit.
The scheme provides that the Revenue Commissioners can make determinations in respect of artistic works in the following categories only:-
1. a book or other writing;
2. a play;
3. a musical composition;
4. a painting or other like picture;
5. a sculpture.
The Revenue Commissioners have provided the following statistics regarding the Artists' Exemption Scheme for the period 2005 to 2014:
|
|
Number of Applications made to the Revenue Commissioners |
Number of cases where the exemption was granted by the Revenue Commissioners |
Number of Appeals against refusals by the Revenue Commissioners to grant the exemption |
Number of successful Appeals |
Number of Challenges to successful Appeals made by the Revenue Commissioners |
|
2005 |
662 |
488 |
3 |
1 |
0 |
|
2006 |
654 |
486 |
6 |
4 |
0 |
|
2007 |
613 |
418 |
4 |
3 |
1(1) |
|
2008 |
648 |
417 |
2 |
1 |
0 |
|
2009 |
534 |
386 |
2 |
1 |
0 |
|
2010 |
445 |
389 |
11 |
5 |
0 |
|
2011 |
417 |
308 |
11 |
7 |
1(2) |
|
2012 |
385 |
308 |
12 |
3 |
0 |
|
2013 |
433 |
301 |
7 |
1(3) |
0 |
|
2014 |
404 |
329 |
4(4) |
0 |
0 |
|
Total |
5,195 |
3,830 |
62 |
26 |
2 |
A determination in respect of a work covers both the original work submitted as well as any future work in the same category, provided that the future work comes within scope of the scheme. However, a fresh application must be made to Revenue in respect of work produced in a different category.
(1) This case was not concluded until 2014;
(2) This case is ongoing;
(3) A decision in a further case has been deferred by the Appeal Commissioner;
(4) These cases have yet to be heard by the Appeal Commissioner.
