Written Answers Nos. 80-89
80. Deputy Thomas P. Broughan asked the Minister for Finance his views on the HSBC Swiss leaks scandal; and if he will make a complaint to the Garda Bureau of Fraud Investigation on the matter; and if he will make a statement on the matter. [9665/15]
View answerTax evasion is a matter of serious concern because it deprives the State of revenues required to provide essential services and facilities for all of our citizens. I am advised by the Revenue Commissioners that confronting evasion in all its guises, including the use of offshore accounts for that purpose, is a priority for them. They draw on all available sources of information and intelligence, and cooperate closely with the relevant authorities in other jurisdictions, to identify and pursue those who seek to evade their tax responsibilities in this way. Their aims are to secure payment of monies owed and, where there is sufficient evidence of specific tax offences, to seek to have prosecutions brought.
As the Deputy will be aware from my reply to his Questions Nos. 79 to 81, inclusive, of 25 February 2015, investigations by the Revenue Commissioners relating to HSBC Bank, Geneva have resulted in settlement payments of €4,559,371, and a further €172,442 has been received as payment on account. Three convictions have been secured, resulting in the imposition of fines ranging from €4,000 to €25,000, and a further case remains under investigation. It is not open to the Revenue Commissioners to comment on whether any individual or corporate entity is under investigation by them with a view to prosecution, or as to engagement with other authorities on prosecution related matters.
I am advised that a detailed report on the overall investigation into matters relating to HSBC Bank, Geneva has been submitted to the Public Accounts Committee by the Revenue Commissioners.
Revenue has a considerable track record in tackling serious tax evasion through the use of offshore accounts and other mechanisms to hide taxable income. Since 1998, Revenue has conducted a series of special investigations which yielded in excess of €2.7 billion in tax, interest and penalties. Revenue's approach has been adopted as best practice by the OECD and has been followed by other tax administrations. Considerable measures are now underway at OECD and EU level to improve the exchange of information between Revenue administrations to further limit the opportunity to avail of bank secrecy to facilitate tax evasion.
I want to commend Revenue on the pro-active role it has taken in relation to the tackling of tax evasion through the abuse of offshore accounts.
81. Deputy Denis Naughten asked the Minister for Finance if he will provide the conditions required to be fulfilled by an applicant before a petrol and diesel retailing licence will be issued; if the retailer is required to have public liability insurance covering the sale of contaminated fuel; if it is possible for a member of the public to lodge an objection to the renewal of such a licence; and if he will make a statement on the matter. [9685/15]
View answer82. Deputy Denis Naughten asked the Minister for Finance further to comments by the Minister of State, Deputy Harris, on Report Stage of the Finance Bill 2014 on 26 November 2014, if he will confirm that the Revenue Commissioners are now using their powers under section 101(7) of the Act to apply the same reporting conditions for petrol as currently apply for diesel; when this became operational; the number of discrepancies identified to date that have required further investigation; and if he will make a statement on the matter. [9686/15]
View answerI propose to take Questions Nos. 81 and 82 together.
An auto fuel trader's licence and/or a marked fuel trader's licence must be held by each person dealing in mineral oils and marked mineral oils and for each premises or filling station used for that purpose. These licences are issued by the Revenue Commissioners in accordance with the requirements laid down under Chapter 1 of Part 2 of the Finance Act 1999. In order to obtain a licence, an applicant must satisfy the following requirements.
- The applicant must hold a tax clearance certificate, must not have been convicted of an indictable offence under section 1078 of the Taxes Consolidation Act 1997 (or of a corresponding offence under the law of another Member State) and must be compliant with excise law in relation to the production, delivery or sale of mineral oils, including the statutory requirements relating to the systems (including the measuring systems) and procedures of the business to which the licence relates.
- The applicant must, when requested to do so by the Commissioners, be able to show to their satisfaction that he or she is able to comply with the licence conditions as specified by them. These include, inter alia, the suitability and security of the premises to be licensed, access by Revenue officers, the use of fuel pumps and meters that accurately measure and record the volume of fuel dispensed and other conditions that the Commissioners may impose.
- The applicant must, when required by the Commissioners, show to their satisfaction that the business to be licensed is for the sole benefit of the applicant, is undertaken with the intent of realising profits from legitimate trade in mineral oils and the systems and procedures of the business to be licensed will provide a full and true account of all the mineral oil transactions of the business, in a form readily accessible to the Commissioners.
As part of their licensing conditions, mineral oil traders must provide a monthly report to Revenue of all their mineral oil transactions by fuel type. The Commissioners advise me that the report from any particular trader must show the fuel receipts and deliveries in the month concerned between that trader and each other mineral oil trader with whom they are trading, together with additional information on all sales of a volume greater than 2000 litres. Forecourt sales of fuel are reported in the aggregate by type for the month.
The purpose of these licensing conditions is to control the supply chain for mineral oils. Public liability insurance is not relevant to this objective and is not provided for as a licensing requirement. The licenses are renewed annually and may be revoked under certain circumstances. The Revenue Commissioners inform me that they encourage any person who has evidence of non-compliance by a mineral oil trader with the conditions of his or her licence to report the matter to them as soon as possible.
I am also advised by the Commissioners that the monthly return of mineral oil movement due from each licensed mineral oil trader must report transactions for each fuel type, including petrol. The report shows the total monthly amount of fuel by type received and delivered between the licensed mineral oil trader and each other licensed trader. In view of the key focus on the risk of diesel laundering, the report for diesel also shows the individual receipts and deliveries making up this monthly transaction figure. However, the information in the monthly report allows Revenue to identify suspicious movements of any fuel type, including petrol, and Revenue has the technical capacity to analyse effectively the petrol movements reported. The mineral oil trader must, in any case, hold information on all individual fuel transactions, including petrol transactions, and this can be examined by Revenue, as required.
The Revenue Commissioners inform me that they are examining the costs and benefits of extending the more detailed level of reporting in place in relation to diesel to petrol also. Because of the volume of transactions involved, such a development would require a significant enhancement of Revenue's existing system as well as developments in the systems used by mineral oil traders. When the Revenue Commissioners have completed their evaluation, I will let the Deputy know the outcome.
83. Deputy Colm Keaveney asked the Minister for Finance if he will confirm that a quote attributed to him which recently appeared in a British news magazine (details supplied) is accurate, that is, if quantitative easing becomes the function of national central banks, rather than primarily of the European Central Bank, then he thinks that it will be ineffective; if he still stands over that assessment; in view of the form of quantitative easing that the European Central Bank has now engaged in, does this involve bond purchases being made by national central banks, rather than by the European Central Bank; his views that it will be ineffective; if he does not believe it will be ineffective, then how does he reconcile that assessment with the quote attributed to him; and if he will make a statement on the matter. [9692/15]
View answerInflation in the euro area has been below levels consistent with price stability for some time and, in fact, moved into negative territory in December and has subsequently remained there in January and February. The fall in inflation combined with the fact that inflationary expectations have begun to drift downwards poses a risk to price stability.
As a result, and with policy rates effectively at zero per cent, the ECB announced an expanded asset purchase programme due to commence this month to include bonds issued by euro area central governments, agencies and European institutions. Under this expanded programme, the combined monthly purchases of public and private sector debt securities will amount to €60 billion.
These monthly purchases are intended to be carried out from March 2015 until end-September 2016 and will, in any case, be conducted until inflation moves onto a path consistent with price stability. Price stability in the euro area, in turn, has been defined as annual inflation of close to but below 2 per cent (inflation being measured by the Harmonised Index of Consumer Prices).
Monetary policy operations in the Eurosystem are normally carried out on a decentralised basis by the National Central Banks (NCB) and are recorded on the published balance sheets of the NCBs. For example, this applies to the regular main refinancing operations carried out each week. For the extended asset purchase program, decentralised implementation also applies for at least 80 per cent of purchases. This does not mean that quantitative easing is ineffective - the Eurosystem (consisting of the ECB plus the National Central Banks) is expanding its balance sheet with positive implications for inflation and economic activity.
Decisions on and the implementation of monetary policy in the euro area are entirely a matter for the Governing Council of the ECB, which is independent in these matters. I note, however, that there is some mutualisation - the Governing Council decided that 20 per cent of the additional asset purchases under the programme will be subject to risk sharing. Moreover, the scale of the asset purchase programme is rightly seen as being the more important issue, as well as the fact that it is potentially open-ended
In this regard, the Irish economy should benefit through a number of channels. For example, the economy should benefit directly through improved financing conditions for households and firms. In addition, the euro area is Ireland's single largest export destination; therefore, by supporting real economic activity and raising inflation in the euro area this will underpin export growth in Ireland. Monetary policy also works through the exchange rate channel the depreciation of the euro will provide a boost to Irish exports. Raising the rate of inflation in the euro area will also help Ireland achieve our twin goals of improving competitiveness and increasing tax revenue. So, over time, the success of quantitative easing will be seen in terms of stronger growth rates in Ireland and across the euro area, and inflation rates consistent with price stability.
So, in summary, my view is that quantitative easing is an effective policy response and will positively impact on inflation and economic activity in the euro area and Ireland. It is important that the monetary policy is supported by appropriate fiscal policies and that the necessary structural reforms continue to be implemented by Member States across the euro area.
84. Deputy Michael McGrath asked the Minister for Finance if he will address the general issues raised in correspondence, in respect of a person (details supplied) in Dublin 22, regarding the application of vehicle registration tax on a returning emigrant, who is planning to bring a vehicle home with them. [9802/15]
View answerI am informed by the Revenue Commissioners that relief from Vehicle Registration Tax (VRT) is provided for in Section 134(1)(a), Finance Act, 1992, as amended, and Statutory Instrument No. 59 of 1993, Vehicle Registration Tax (Permanent Reliefs) Regulations 1993.
The relief applies where there is a transfer of normal residence which would be evidenced by proof of full time employment and/or acquiring living accommodation in the State.
In the circumstances of this case, as the person is still working abroad and is not in employment in the State, a transfer of residence has not taken place. However, it is noted from the details provided that the person concerned hopes to take up employment in the State. As soon as this happens the person should contact Revenue and the question of relief from VRT will be considered then.
Information relating to Transfer of Residence is on the Revenue website at: http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html.
85. Deputy Martin Heydon asked the Minister for Finance his plans to review the taxation position of self-employed persons compared to others in employment; the improvements he hopes to be able to make; and if he will make a statement on the matter. [9807/15]
View answerA fair, efficient and competitive income tax system is essential for economic growth and job creation. However, it is important to understand that PAYE workers and the self-employed are taxed in different ways to reflect their differing circumstances.
As the deputy is aware, employees in the PAYE system benefit from an income tax credit worth €1,650 per annum to which the self-employed are not entitled. The PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self-employed generally then had the advantage of paying tax on a preceding year basis. It was also argued at the time that the general scheme of allowances for expenses discriminated against employees and in favour of other taxpayers.
There have been some changes since 1980. For example, the self-employed now pay tax on a current year basis. In addition, the PAYE allowance has now become a tax credit. However, there are other aspects to how the self-employed are taxed which can be beneficial to them. For instance, there are significant timing benefits, depending on the accounting period used by the taxpayer, which are available to the self-employed but which are not available to PAYE workers. In addition, the expenses regime for self-employed taxpayers remains somewhat more liberal than that afforded to employees and therefore the self-employed can actually pay less tax when compared to a PAYE worker on the same income.
The introduction of the USC in 2011 included a 3% surcharge payable on that portion of self-assessed income over €100,000. The alternative would have seen self-assessed high income earners benefit when compared to their PAYE counterparts from the complete (income tax, USC and PRSI) tax package introduced in 2011. On the basis of fairness, this could not have been countenanced at the time.
The 3% surcharge was retained in Budget 2015 in order to ensure that the self-assessed on high incomes did not benefit disproportionately from the Income Tax package and that the maximum benefit is capped for all taxpayers at €14 per week.
It is important to note that the changes to the income tax system introduced in Budget 2015 will benefit all those who pay income tax and or USC equally, regardless of whether they are PAYE or self-employed taxpayers.
Notwithstanding the above, I am cognisant of the disparities within the current system between self-assessed and PAYE workers, particularly at lower levels of equivalent income. I would hope to be in a position to bring about some changes to the system, subject to having the required fiscal space. It is not possible to be more specific at this stage but like all tax reliefs and expenditures, the position will be considered as part of my Budget deliberations later this year.
86. Deputy Sandra McLellan asked the Minister for Finance if a warehouse (details supplied) in County Cork still has its licence in place to operate as a bonded warehouse; and if he will make a statement on the matter. [9811/15]
View answerI am advised by the Revenue Commissioners that for reasons of taxpayer confidentiality, they are not in a position to provide the details sought by the Deputy. If the Deputy can provide confirmation of being authorised by the taxpayer to make representation on their behalf, Revenue will be happy to address this matter with the Deputy.
87. Deputy Michael McGrath asked the Minister for Finance the current state of the Central Bank of Ireland investigation of issues relating to under-provisioning at a company (details supplied); and if he will make a statement on the matter. [9827/15]
View answerThe Central Bank of Ireland have informed me that an investigation into historical claims reserving practices at the company is ongoing and is at an advanced stage.
Once concluded, decisions regarding enforcement proceedings will be made by the Central Bank.
88. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the sales of marked diesel on a county basis in each year from 2012 to 2014; and if he will make a statement on the matter. [9830/15]
View answerI am informed by the Revenue Commissioners that the sales of marked diesel on a county basis are not readily available at present. However, a wide range of statistical information is available on the Commissioners' new, enhanced, Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html. In relation to the Deputy's question, detailed information on volumes of clearances from tax warehouses of oils and other commodities can be found at http://www.revenue.ie/en/about/statistics/excise-volumes-commodity.pdf. Data for 2014 will be published in due course, 2013 is the most recent for which detailed data are currently available.
The clearances of Marked Gas Oil for excise purposes and the excise receipts for each of the requested years are as shown in the following table. The figures shown for 2014 are provisional at this time and may be subject to revision.
|
MGO |
Quantity (Litres '000) |
Excise Receipts €m |
|
2012 |
1,125,849 |
43.5 |
|
2013 |
1,101,590 |
42.5 |
|
2014 (Prov) |
1,001,309 |
38.4 |
A new monthly Return of Oil Movements (the ROM1) was introduced by Revenue from the beginning of 2013. This return is mandatory for authorised warehousekeepers, distributors and forecourt retailers. Using this information, a detailed supply chain analysis can be constructed of all major movements of oil within the state. The ROM1 data are already providing valuable information at macroeconomic level for Revenue and these data will continue to be analysed.
89. Deputy Michael McGrath asked the Minister for Finance the total value of pension assets transferred abroad by trustees since 2010; and if he will make a statement on the matter. [9832/15]
View answerI am informed by the Revenue Commissioners that precise details on the value of pension funds transferred abroad are only available since 2012. This is due to the fact that before 2012 very few notifications in relation to transferring pension funds abroad were received and centralised records were not maintained until the start of 2012. From 2012, both Revenue and the pensions industry, noticed a considerable increase in requests by pension fund holders to transfer funds abroad.
From 2012 to date the total value of pension assets in respect of which a notification of transfer abroad was received by Revenue amounts to €56,631,383 (not all transfer notifications may have actually been proceeded with).
I am advised by the Revenue Commissioners that they have been engaged since 2014 in an on-going compliance program that involves visits to pension providers, pension administrators and pension trustees in relation to the transfer of pension funds off-shore. The objective of the compliance program is to ensure that the purpose of any transfer of pension funds offshore is for bona fide reasons and does not contravene tax legislation or undermine pension tax policy.
I am further informed by the Revenue Commissioners that moving pension funds off-shore in an effort to circumvent the requirements of Irish pension tax legislation may fall foul of the conditions under which a pension scheme was approved by the Revenue Commissioners as an exempt approved scheme or the conditions under which a Personal Retirement Savings Account (PRSA) product received Revenue approval. This could result in the withdrawal of the approval of an occupational pension scheme in accordance with the provisions of section 772(5) of the Taxes Consolidation Act (TCA) 1997 or the withdrawal of the approval of the PRSA product under section 787K (3) and (4) TCA 1997. Any such withdrawal of approval could trigger significant tax liabilities on the sums moved off shore and the withdrawal or claw back of tax reliefs. Moreover, in such cases and depending on the circumstances and the motivation of the individual concerned, the possibility also arises that such transactions may also fall foul of the legislation designed to counter tax avoidance transactions.
In addition to Revenue's compliance program, the Department of Finance has initiated a review of the whole area of pension transfers abroad in conjunction with Revenue, the Department of Social Protection and the Pensions Authority. Revenue's findings from the on-going compliance programme will feed into and inform that review.
