Patrick O'Donovan
Question:281. Deputy Patrick O'Donovan asked the Minister for Finance the position regarding tax paid by groups of income earners (details supplied); and if he will make a statement on the matter. [11906/15]
View answerTax Data
Questions (281, 282)
Patrick O'Donovan
Question:282. Deputy Patrick O'Donovan asked the Minister for Finance the position regarding the percentage of tax take in respect of income categories (details supplied); and if he will make a statement on the matter. [11907/15]
View answerWritten answers
I propose to take Questions Nos. 281 and 282 together.
I am advised by the Revenue Commissioners that a wide range of statistical information is now available on the Revenue Commissioners' new, enhanced, statistics webpage at www.revenue.ie/en/about/statistics/index.html.
In particular, in response to the Deputy's Questions, detailed information is presented on the breakdowns of gross income at www.cso.ie/px/pxeirestat/pssn/rv01/homepagefiles/rv01_statbank.asp. This information can be found under the heading ""Income Tax and Corporation Tax Distribution Statistics", where the table RVA01 shows numbers of taxpayers, their incomes and Income Tax paid by ranges of gross income.
This recently released facility provides breakdowns of the annual distribution of Income Tax from 2004 to 2012 using the Central Statistics Office data toolset. Whereas previously information of this nature was provided by way of static tables in documents, these data are now published in a format which may be dynamically accessed by a range of user defined queries. Data for 2013 are not available as yet but these webpages will be updated in due course. If the Deputy requires assistance locating or interpreting the information on the Revenue webpages, the Commissioners are available to assist and may be contacted by email at statistics@revenue.ie.
Tax Reliefs Availability
Questions (283)
Shane Ross
Question:283. Deputy Shane Ross asked the Minister for Finance his plans to introduce tax incentives for those wishing to downsize their family home; and if he will make a statement on the matter. [11929/15]
View answerWritten answers
I have no plans to introduce incentives along the lines suggested by the Deputy. The Deputy will appreciate that tax reliefs and exemptions have costs which have to be paid for and their introduction must be considered only where there is a clear economic and social policy need to be addressed.
It should be noted in relation to local property tax (LPT), that where a person downsizes their residential property, assuming they stay in a similar location to the property they are selling, their LPT liability will, most likely, be less than the amount they would have been liable for on their original property.
In relation to what might also be regarded as property-related taxes, Stamp Duties are payable on the acquisition of residential property. The current rates are 1% on values up to €1 million and 2% on any balance over that. I do not consider that a rate of 1% on the purchase of a property would represent a serious disincentive to any property owner considering trading down.
In relation to Capital Gains Tax (CGT), an exemption is in place on the disposal of a person's principal private residence. The exemption applies to any gain made on the disposal of an individual's dwelling house together with land occupied up to an area of one acre, excluding the site of the house. Full CGT relief applies where the period of occupation matches the period of ownership, and partial relief applies where the house has not been occupied by the individual for the full period of ownership.
Mortgage Arrears Rate
Questions (284)
Michelle Mulherin
Question:284. Deputy Michelle Mulherin asked the Minister for Finance the number of homeowners and buy-to-let owners who are in long-term mortgage arrears, by county; and if he will make a statement on the matter. [11942/15]
View answerWritten answers
The Central Bank publish a quarterly Residential Mortgage Arrears and Repossessions statistical release which provides some information about home repossessions at a national level only, and consequently no regional breakdown is available. The last release, published on 6th March 2015, was for end-Q4 2014 and is available here:
http://www.centralbank.ie/polstats/stats/mortgagearrears/Pages/releases.aspx
The Q4 release shows that of the 110,366 total PDH mortgage arrears cases outstanding, 19,317 cases are in arrears between 361 and 720 days and 37,778 cases are in arrears over 720 days.
The release further shows that of the 35,583 BTL mortgage arrears cases outstanding, 6,815 cases are in arrears of between 361 to 720 days and 15,386 cases are in arrears over 720 days.
Mortgage Interest Rates
Questions (285)
Arthur Spring
Question:285. Deputy Arthur Spring asked the Minister for Finance the efforts made to reduce the standard variable rate offered by the Irish banks to mortgage holders, many of whom are struggling to stay out of arrears; when Irish mortgage holders can expect to be paying the mean euro area standard variable rate of interest; and if he will make a statement on the matter. [11951/15]
View answerWritten answers
At the outset, I must confirm to the Deputy that the lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I have no statutory role in relation to regulated financial institutions passing on the European Central Bank interest rate change or to the mortgage interest rates charged. It is a commercial matter for each institution concerned. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders.
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. The Central Bank has no statutory role in the setting of interest rates by financial institutions, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997 and the requirement to be notified of penalty or surcharge interest imposed in respect of arrears. As I stated in previous Parliamentary Questions, a previous Deputy Governor indicated that, within its existing powers and through the use of persuasion, the Central Bank would continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds and this is a course of action I expect the Central Bank to continually appraise.The Deputy should be aware that the Governor of the Central Bank, Mr Patrick Honohan in his opening statement to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform last November stated that, as in most advanced economies, including Ireland, it has long been understood that tight administrative control over the rates charged by banks would be counterproductive in ensuring a sufficient flow of properly priced credit on a lasting basis. Such control would strongly discourage new entrants. In this regard, ongoing competition in the banking sector will be crucial in ensuring that the economy is provided with efficient and cost effective banking services. In this regard, there has been some movements on mortgage interest rates of late by a number of institutions which suggest that the market may well be entering a new and more competitive phase. The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. This interest rate is determined taking into account a broad range of factors including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding. However, as part of the Central Bank's work on mortgage arrears, lenders were asked to consider all avenues to help customers in arrears, including interest rate reductions.
Disabled Drivers Grant Appeals
Questions (286)
Helen McEntee
Question:286. Deputy Helen McEntee asked the Minister for Finance if a person (details supplied) in County Meath has made an appeal through the Medical Board under the disabled drivers and the disabled passengers scheme 1994; if the appeal was unsuccessful, the other options available to this person especially if their condition has not deteriorated after six months of the appeal. [12019/15]
View answerWritten answers
The Disabled Drivers Medical Board of Appeal has informed me that the person (details supplied) had her appeal heard and was unsuccessful in the appeal. If an appeal is refused, a citizen can reapply after six months if there is a deterioration in their condition.
Insurance Levy
Questions (287)
Terence Flanagan
Question:287. Deputy Terence Flanagan asked the Minister for Finance the level of funds that have been generated by the non-life insurance levy to date since it was first applied in 1982; the amount paid out by the insurance compensation fund during the same period; and if he will make a statement on the matter. [12021/15]
View answerWritten answers
The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to assess the Insurance Compensation 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%, 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.
The Insurance Compensation Fund levy has been applied on two occasions and a total of €376.6 million has been collected:
- A levy of 2% of gross premium income was introduced on 1 January 1984 following the collapse of PMPA in October of the preceding year. The levy was paid by all non-life insurers at this rate until 31 December 1991 and a reduced levy of 1% applied for the period 1 January 1992 to 31 December 1992, when it was discontinued. During these 12 years €186.3 million was collected.
- In 1 January 2012 the levy was once again introduced at a rate of 2%. Since the introduction of the levy a total of €190.3 million has been collected.
In the case of the insolvency of the Insurance Corporation of Ireland a levy was not applied. ICI, a subsidiary of Allied Irish Bank, collapsed in 1985. No levy was placed on the industry then as compensation to meet the company's liabilities was provided by a combination of AIB funding, commercial loans and State loans which have since been repaid.
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. All amounts paid out of the fund are subject to approval of the High Court.
The Fund has been used to fund the administration of three insurance companies.
- A balance of €164,386,901 was paid from the Fund in relation to the Insurance Corporation of Ireland.
- A balance of €139,013,808 was paid from the Fund in relation to PMPA.
- To date a total of €1,158,000,000 has been paid from the Fund in relation to Quinn Insurance Limited.
With regard to insurer liquidations, there has been a total of €29,166 paid out of the fund in relation to sums due under policies issued by Lemma Europe Insurance Company Limited (In Liquidation) in respect of risks in the Irish State.
Ireland Strategic Investment Fund Investments
Questions (288)
Pearse Doherty
Question:288. Deputy Pearse Doherty asked the Minister for Finance the position in respect of the approval of the Ireland Strategic Investment Fund investment strategy; and if he will make a statement on the matter. [12028/15]
View answerWritten answers
The National Treasury Management Agency (NTMA) Amendment Act 2014 established the Ireland Strategic Investment Fund. Pursuant to the Act, the NTMA shall determine, monitor and keep under review an investment strategy for the assets of the Fund in accordance with the policy of the Fund. The Act provides that in determining and reviewing the investment strategy, the NTMA shall consult with both the Minister for Finance and the Minister for Public Expenditure and Reform and have regard to any views expressed by them.
The relevant provisions of the Act establishing the ISIF were commenced on 22 December 2014. The ISIF investment strategy will be approved by the NTMA Board once the current consultations with both Ministers have concluded.
Defined Benefit Pension Schemes
Questions (289)
Seán Ó Fearghaíl
Question:289. Deputy Seán Ó Fearghaíl asked the Minister for Finance the engagement he has had with NewERA with regard to pensions deficits at commercial semi-State bodiess within the NewERA remit; and if he will make a statement on the matter. [12053/15]
View answerWritten answers
In the first instance all questions to do with the Commercial semi-states are a matter for the Minister with responsibility for the sector concerned.
In the nature of participating with NewERA on departmental steering groups established to consider specific state asset disposals, officials from my Department participated in discussions and/or have been circulated with documents about possible defined benefit pension scheme deficits in relation to the following:-
Ervia (formerly Bord Gáis Eireann) amalgamated seven existing pension schemes some of which had deficits and some of which had surpluses into one consolidated scheme in advance of the sale of Bord Gáis Energy ("BGE").
The defined benefit pension scheme in Coillte.
Household Charge Collection
Questions (290)
Pat Deering
Question:290. Deputy Pat Deering asked the Minister for Finance the amount of money collected by the Revenue Commissioners including penalties, since they took responsibility for collecting the household charge, by county basis. [12103/15]
View answerWritten answers
I am advised by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT), including Household Charge, is available on the Commissioners' website at http://www.revenue.ie/en/about/statistics/lpt-compliance.html. Updates to these statistics will be published in due course. From the most recent statistics available, the Commissioners have confirmed that since Revenue took over responsibility for Household Charge collection from July 2013, around €41 million has been paid to Revenue (€2m in 2013, €36m in 2014 and €3m to February 2015). A breakdown of these receipts by county is not presently available.
Universal Social Charge Application
Questions (291)
Derek Nolan
Question:291. Deputy Derek Nolan asked the Minister for Finance the current estimate of the cost of making the universal social charge structure highly progressive, along the lines of option 4, page 13, of his Department's Review of the Universal Social Charge in November 2011; and if he will make a statement on the matter. [12110/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the estimated first and full year cost to the Exchequer to implement Option 4 (p.13) of the Department of Finance's November 2011 review of the Universal Social Charge (USC) would be in the region of €878 million and €1.17 billion respectively. The USC rates cited in Option 4 are applied to both PAYE and self-employed income. I am also informed by the Revenue Commissioners that, consistent with the Option 4 proposal, the aforementioned estimates do not make any provision for exemptions currently available to either medical card holders or individuals aged 70 or over on income less than €60,000.
All figures above are estimates from the Revenue tax forecasting model for 2015, using the actual data for the year 2012 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
It should be acknowledged that since the Review was published there have been major changes to the USC. As a result of the Review the Government decided in Budget 2012 to increase the entry point to the Universal Social Charge from €4,004 to €10,036 per annum. It is estimated that this removed almost 330,000 individuals from the charge. In Budget 2015 I extended this exemption threshold to €12,012 to apply from 1 January 2015 onwards. This exempted a further 87,000 individuals from the charge. This means that 28% of all income earners are not paying any Universal Social Charge at all. Furthermore, I also reduced the two lower rates at which USC is charged and extended the threshold before the 7% rate becomes chargeable. These measures, together with the introduction of a new 8% rate on income over €70,044, as well as a rate increase from 10% to 11% on self-assessed income over €100,000, further enhanced the existing progressive nature of the USC.
However, as a result of the changes to income tax and USC in Budget 2015, all those who currently pay income tax and/or USC have seen a reduction in their tax bill this year compared to 2014 and the Government have committed to continue to reform the tax system in this manner in the coming years, contingent on having the fiscal space to do so.
Household Charge Administration
Questions (292)
Willie Penrose
Question:292. Deputy Willie Penrose asked the Minister for Finance if he will ensure that a demand made in respect of a person (details supplied) in County Westmeath regarding the household charge in the sum of €200 is discontinued, in view of the fact that this person was not the owner of the house at the time charge arose in January 2012 to December 2012 period, that the person only took up residence in April 2014 and has already discharged any liability in respect of local property tax for 2015 and since it is clear that this charge has nothing at all to do with that person; and if he will make a statement on the matter. [12137/15]
View answerWritten answers
I am advised by Revenue that Section 127 of the Finance (Local Property Tax) Act 2012 (as amended) provides that any unpaid Local Property Tax (LPT) or Household Charge (HHC) liabilities attach as a charge against the particular residential property until the outstanding debt is paid.
Such a charge, including interest at a rate of 8% per annum remains on the property, even where there is a change of ownership, unless the debt is paid by either the vendor or the purchaser as part of the sale agreement.
As part of the conveyancing process and prior to the completion of a sale, the purchaser (or his/her solicitor) should be satisfied that all LPT and HHC liabilities are paid and that there are no amounts outstanding. The purchaser should also satisfy himself/herself that the LPT valuation declared by the vendor (as at 1 May 2013) appears accurate.
To facilitate this process, the vendor (or his/her solicitor) is obliged to provide the purchaser with details of the valuation of the property and the LPT/HHC liabilities paid. The required information can be accessed through an online system, which Revenue has developed to assist the sale process. In this regard the vendor can either provide the purchaser with online access to the LPT property records using secure identification codes or alternatively simply provide printed copies.
Specifically in regard to HHC, the vendor should confirm payment to the purchaser by way of receipts or other appropriate documentation or, where the property is exempt provide a certificate of exemption or waiver.
In the case to which the Deputy refers, it is acknowledged that the person in question purchased the property in 2014. However, there is no record that the outstanding HHC liability on the property was paid, either prior to, or as part of the sale and it seems that there was no agreement on the issue between the person's legal representative and the vendor. For that reason the amount due is recorded as a charge against the property.
Revenue has confirmed to me that the person made contact with the LPT team on foot of a compliance notification that issued to him on 21 February 2015. The LPT agent confirmed to the person that the liability is correctly due and that Revenue has no discretion in regard to the outstanding amount and must apply the law as set down in the legislation.
Financial Services Sector
Questions (293)
Thomas P. Broughan
Question:293. Deputy Thomas P. Broughan asked the Minister for Finance his views on the PwC report which was presented to the Government in November 2008; and if he will report on what basis the estimates of losses by the 22 individuals and corporations were calculated so incorrectly; and if the Revenue Commissioners have investigated that report. [12158/15]
View answerWritten answers
As the Deputy is aware PricewaterhouseCoopers (PwC) was commissioned by the Financial Regulator to review the loan books and the capital position of six of the covered institutions as at 30th September 2008 and as such it was not a report commissioned by, or provided to, the Revenue Commissioners. The PwC Reports were a "point in time" exercise and were subject to a number of caveats. They reflected the estimate of PwC of the losses in the covered institutions in a variety of scenarios based on the information then available to PwC.
The basis of the estimate of losses set out in the PwC reports was a matter for the Financial Regulator (as the entity which commissioned the reports) and PwC.
Ministerial Pensions
Questions (294)
Thomas P. Broughan
Question:294. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on the amount of money being spent by the Government on Ministers' pensions for those who were in power during the bank collapse; the amount being paid to whom, in tabular form, since 2007. [12159/15]
View answerWritten answers
Aggregate information regarding ministerial pensions is set out in the following table.
|
Year |
Amount (€) |
|
2013 |
€4,073,957.94 |
|
2012 |
€4,104,802.23 |
|
2011 |
€4,121,495.39 |
|
2010 |
€3,740,497.00 |
|
2009 |
€3,801,646.10 |
|
2008 |
€4,467,657.00 |
|
2007 |
€3,942,745.00 |
The following should be noted with respect to the above information: the totals can include pensions paid to individuals who held positions other than ministerial office, for example, the data for 2007 and 2008 includes pensions paid to persons who had served as Attorney General; the information does not include severance payments to ex Ministers; the information does not include pensions paid to the spouses and children of deceased Ministers; the totals are on a gross basis i.e. amounts surrendered to the Exchequer are not subtracted; the totals are net of Public Service Pension Reduction where relevant; the information is in respect of payments directly charged to the Central Fund and, therefore, does not include pensions paid by other public bodies from voted moneys or otherwise, for example, pensions paid by the Oireachtas Commission.
Regarding the information requested by the Deputy in relation to the pensions amounts paid to individuals, details were published in the Finance Accounts for the years 2007 and 2008. The accounts are deposited with the Dáil Library. Since 2009 the information in respect of individual amounts has been published on my Department's website.
The 2014 data is being compiled at present and will be published alongside the Finance Accounts in September of this year, following the completion of the statutory audit of the accounts.
Economic Policy
Questions (295)
Micheál Martin
Question:295. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he and his Department will be preparing for the new social dialogue announced recently; and if he will make a statement on the matter. [11113/15]
View answerWritten answers
In recent years this Government has implemented a programme of reforms to improve the State's budgetary architecture and to bring greater transparency and efficiency to the allocation and spending of public money. Key elements of these reforms include the introduction of multi-annual expenditure ceilings, regular comprehensive reviews of public expenditure, and the performance budgeting initiative.
These reforms support a whole-of-year approach to the budgetary process as they facilitate consideration by the Oireachtas of the allocation of resources for the current year and also spending plans for the following years. This allows for a much broader and more strategic policy debate around overarching issues and challenges regarding the use of public resources and policy options into the future.
With Ireland set to exit the Excessive Deficit Procedure at the end of 2015, we will thereafter become subject to the preventive arm of the Stability and Growth Pact. In this fiscal context, the Government is now considering options, including a Spring Economic Statement and National Economic Dialogue, to further develop the whole-of-year budgetary cycle.
A National Economic Dialogue could facilitate a broad inclusive societal discussion of fiscal policy parameters and priorities for resource allocation over the coming years. My Department is working with the Department of Finance on developing proposals for such a dialogue. It is envisaged that it would be held mid-year in a format that would facilitate an open and transparent public discussion about fiscal policy options and priorities.
With a dialogue held in mid-year, the outcome of such a dialogue could then inform the work of Government and the Oireachtas in their considerations of the Budget later in the year.
Public Sector Pensions
Questions (296)
Áine Collins
Question:296. Deputy Áine Collins asked the Minister for Public Expenditure and Reform if he will provide an update with regard to public service pensions, in order to address a query (details supplied). [11151/15]
View answerWritten answers
I refer to my reply on the 18 February 2015 to Parliamentary Question Number 7341. The position remains unchanged.