Written Answers Nos. 51 - 70
51. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the level of carer's allowance payable in the case of a person (details supplied) in Dublin 15; and if she will make a statement on the matter. [17098/15]
View answerThe application was awarded on the 14th of April 2015 and the first payment issued to the bank on the 23rd of April 2015. Any arrears of allowance due from the 1st of January 2015 to the 15th April 2015 (less any outstanding overpayment) will issue in due course. The person in question is in receipt of half rate carers allowance in addition to her primary social welfare payment, disability allowance.
52. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if an old age pension based on combined Irish and United Kingdom contributions is payable in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17099/15]
View answerThe Department is examining the entitlement of the person concerned to a state pension (contributory) under the provisions of EU social security regulations.
In this regard, a request for information has recently been forwarded to the UK International Pension Centre in Newcastle-upon-Tyne. When this information is received, the pension entitlement of the person concerned will be assessed on the basis of their combined Irish and UK insurance records, and they will be notified of the outcome without delay.
53. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if and when rent support will be paid in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17100/15]
View answerThe Department has not, to date, received an application for Rent Supplement from the client concerned. The client should forward an application to the Mid-Leinster Rent Unit, PO Box 11758, Dublin 24. On receipt of same the client's entitlement to Rent Supplement can be assessed.
54. Deputy Martin Heydon asked the Tánaiste and Minister for Social Protection if she will provide an update on the supports available from her Department for those in receipt of rent supplement in County Kildare who are having severe difficulty in accessing accommodation within the rental cap limits set for the county; and if she will make a statement on the matter. [17113/15]
View answerThe rent supplement scheme provides support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are approximately 70,000 rent supplement recipients for which the Government has provided over €298 million for in 2015.
The Department recently published a review of the maximum rent limits, “Maximum Rent Limit Analysis and Findings” and it is available on www.welfare.ie. The review finds that increasing rent limits at this time could potentially add to further rental inflation in an already distressed market, affecting not alone rent supplement recipients, but lower-income workers and students. Between the rent supplement scheme and the Rental Accommodation Scheme (RAS) administered by the Department of the Environment, Community and Local Government, the State accounts for a third of the private rented market. The State is therefore a very significant player in the sector which has a responsibility not alone to rent supplement recipients but also to the market as a whole, including all those in private accommodation.
In light of the review’s findings, the Department will instead continue to allow for flexibility in assessing customers’ accommodation needs through the National Tenancy Sustainment Framework. Under this approach, each tenant’s circumstances throughout the country, including those in the Kildare area, are considered on a case-by-case basis and rents can be increased above prescribed limits as appropriate. I am satisfied that this is the appropriate response at this time which has assisted in excess of 1,000 rent supplement recipients throughout the country to retain their rented accommodation.
In addition, the Department in conjunction with Threshold operates a Tenancy Sustainment Protocol in the Dublin and Cork areas where supply is most acute. The primary objective of the Protocol is to ensure a speedy intervention to ensure that families at immediate risk of losing their tenancy get rapid assistance. Of the 1,000 recipients mentioned above, over 530 households in Dublin and some 14 in Cork city have been provided assistance through increased rent limits under the Protocol.
The review clearly points out that the main cause of difficulty for persons renting or seeking to rent at this time is the much reduced availability of affordable private rented accommodation, which is representative of the position in Kildare. The issue of supply is being addressed by Government through the Construction 2020 Strategy and the Social Housing Strategy. My Government colleague, the Minister for the Environment, Community and Local Government, is also considering a number of policy options in relation to achieving greater rent certainty.
I can assure the Deputy that I am keeping this matter under close review to ensure that the appropriate supports continue to be provided for rent supplement recipients.
55. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection notwithstanding the reply to previous parliamentary questions, if equality legislation is being observed in the cases where, on separation or divorce, the proceeds of the family home are divided as per a decision of the courts and where one of the parties remains in the family home on foot of such decision and does not have means derived from same assessed against them in respect of an application for a means tested payment, while the other party who receives a cash settlement in lieu of entitlement to the family home has means assessed against them for rent support purposes, thereby ensuring that the latter must first spend on rent his or her share of entitlement to the family home before qualifying for rent allowance; and if she will make a statement on the matter. [17119/15]
View answerThe Department operates a range of statutory means tested schemes where, in order to qualify for the social assistance payment, the claimant must satisfy a means test. The means test takes account of the income a person or couple has in terms of cash, property (other than the home) and capital. The combination of the means test and awarding differentiated rates of payment is premised on ensuring that social welfare payments are paid to those most in need.
With social assistance payments, the maximum rate of entitlement is payable where a claimant’s means are nil. Where a claimant has means, the maximum rate of entitlement is reduced by reference to the means in any given case and scheme. It is in the nature of means tested schemes that where means exceed a certain amount, no entitlement exists. The assessment of means is a way of checking if a person has enough means to support themselves and what amount of payment, if any, for which they may qualify.
The Department’s rent supplement scheme provides support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Rent supplement is subject to a means test which is normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances less a minimum contribution which recipients are required to pay from their own resources. The weekly minimum contribution is €30 for a single adult household and €40 for coupled households. Many recipients pay more than this amount because recipients are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.
I am satisfied that the assessment for the rent supplement scheme is premised on the basis of need and not marital or family status.
56. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 49 of 23 April, 2015, if she will establish with the Citizens Information Board if a cost-benefit analysis has been conducted of the proposals in relation to governance changes for the Money Advice and Budgeting Service; the information she has at this point regarding the nature and amount of savings that will arise, as indicated in her reply; if she is aware that there are opposing views within the sector that such proposals would lead to increased costs; that the consultant's report into such matters did not suggest the changed structures that are now being proposed; and if she will ensure that a full risk assessment is carried out of the potential impact of such changes on local service delivery and the personnel who operate these services. [17133/15]
View answerAt the outset, I wish to reiterate the Government’s commitment to maintaining and strengthening the Money Advice and Budgeting Service (MABS) and its local delivery of services. The work which is under way exploring how to optimise resources and governance arrangements across the network of 93 local companies under the remit of the Citizens Information Board (CIB) has the aim of ensuring that any efficiencies and savings achieved in governance arrangements can be used to expand and enhance local service delivery.
The Pathfinder Feasibility Study commissioned by CIB identified a number of options for greater organisational consolidation and or integration of its delivery partners. The Board of CIB considered this Study in September 2014 and tasked a Design Group with outlining and recommending new structural models, using the Study as the key resource document to inform the process. The work of the Design Group was guided in its deliberations by specific Terms of Reference and Design Principles as agreed at the outset, in order to identify possible new structural models for presentation to the Board of CIB for its consideration.
Following extensive consultation with key stakeholders, the Design Group has identified as an option for consideration by the Board of CIB in due course, that the 51 Boards of MABS companies and the 42 Boards of CIS companies could be consolidated across six (6) regions, resulting in six (6) independent MABS companies and Boards, and six (6) independent CIS companies and Boards, all reporting to the board of CIB. It is important to note that any such consolidation would be at Board level only. All existing MABS services would remain unaffected. Local service delivery and personnel would not be adversely impacted and would continue as before.
The Design Group’s recently proposed option will require further development, to include estimates of costs that may arise and potential savings that may accrue from moving to a reduced company and Board structure, together with a risk assessment. At this early stage, indicative high level savings arising from a reduced governance structure, from 93 companies and Boards to 12, suggest there may be savings achievable in the amount of €340,000 per annum. It may be possible to take any savings that arise and use them for enhancing local service delivery or indeed offering additional services.
It is important to note that neither this option nor any alternative has yet been considered by the Board of CIB. Accordingly, no decisions have been made by the Board and no proposal has been formally made by it to my Department for consideration.
57. Deputy Lucinda Creighton asked the Tánaiste and Minister for Social Protection the number of children who are registered with her Department for the purposes of receipt of child benefit in the Milltown parish in Dublin 6; who were newly registered in each of the past four calendar years; and if she will make a statement on the matter. [17140/15]
View answerInformation relating to a claimant’s address is not currently coded to the geographical location of the address. Accordingly data on the geographical location of persons in receipt of child benefit living are not collated or reported at present.
58. Deputy Lucinda Creighton asked the Tánaiste and Minister for Social Protection the number of children who are registered with her Department for the purposes of receipt of child benefit in Dublin 2, Dublin 4, Dublin 6 and Dublin 8; and if she will make a statement on the matter. [17141/15]
View answerInformation relating to a claimant’s address is not currently coded to the geographical location of the address. Accordingly data on the geographical location of persons in receipt of child benefit are not complied or reported at present.
59. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding a carer's allowance appeal in respect of a person (detail supplied) in County Kerry; and if she will make a statement on the matter. [17169/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 14 April 2015, who will make a summary decision on the appeal based on the 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.
60. Deputy Brendan Griffin asked the Minister for Finance if he will consider an exemption from deposit interest retention tax for deposit holders with low aggregate savings; and if he will make a statement on the matter. [17019/15]
View answer61. Deputy Brendan Griffin asked the Minister for Finance the total amount generated per annum through deposit interest retention tax; and if he will make a statement on the matter. [17020/15]
View answer62. Deputy Brendan Griffin asked the Minister for Finance the total amount generated per annum through deposit interest retention tax from deposit holders with aggregate savings of less than €50,000; and if he will make a statement on the matter. [17021/15]
View answer63. Deputy Brendan Griffin asked the Minister for Finance the total amount generated per annum through deposit interest retention tax from deposit holders with aggregate savings of less than €100,000; and if he will make a statement on the matter. [17022/15]
View answerI propose to take Questions Nos. 60 to 63, inclusive, together.
Regarding Question No. 60 (7019-15), under Section 257 of the Taxes Consolidation Act 1997 all deposit takers are obliged to deduct Deposit Interest Retention Tax (DIRT) from payments of interest made to an account unless the account qualifies as an exempt account.
Exemptions from DIRT on income grounds currently apply in the following circumstances -
Aged 65 or older:
An account held by an individual or his or her spouse or civil partner is exempt from DIRT where:
- the individual or his or her spouse or civil partner is aged 65 or older, and
- his or her total income in a year (including interest earned) is below the annual exemption limit.
The annual exemption limits for 2015 are €18,000 in the case of a single person and €36,000 in the case of a married couple or civil partnership.
Permanently Incapacitated Individuals
An account held by an individual or his or her spouse or civil partner is exempt from DIRT where they are:
- permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself and
- not liable to pay income tax because of the level of his or her income.
While all tax policies are continually open to review, it is not customary for the Minister for Finance to comment in advance on issues that are appropriate for consideration in the context of the Budget.
A number of State Savings Products offered by the National Treasury Management Agency through An Post are tax free, subject to certain conditions.
In relation to Question No. 61 (17020-15), I am informed by the Revenue Commissioners that the amount of Deposit Interest Retention Tax (DIRT) collected is available under the "Receipts" heading in the "Revenue Net Receipts by Taxhead on an annual basis" table on the Revenue's Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.
In relation to Questions Nos. 63 and 64 (17021-15 and 17022-15), I am informed by the Revenue Commissioners that DIRT on interest bearing deposits is declared and paid on a four-times yearly basis by financial institutions. The total value of DIRT due and paid is reported to Revenue at institutional level. Detailed figures are not required in these returns to identify the numbers of accounts on which DIRT was paid, the amount of interest earned or DIRT payment per account or the tax forgone resulting from DIRT exemptions. The breakdown the Deputy has sought is not therefore available.
It may be of interest to the Deputy that separately, as provided for in Section 891B of the Taxes Consolidation Act 1997, certain financial institutions, such as banks and credit unions, are required to make automatic annual returns at account level electronically to Revenue. The primary purpose of this Section is to provide information for use in risk analysis by Revenue and therefore the requirement to report interest focuses on account holders in receipt of larger payments.
The information under Section 891B was provided only where the total payment of interest is greater than €635 in a year, regardless of deduction of DIRT. However, under statutory instrument (S.I. No. 56 of 2015), signed on February 15th 2015, the annual reporting threshold was reduced from €635 to €300 and applies to returns in respect of the year 2014. The information under Section 861B is also required in all instances of a first interest payment, irrespective of threshold, for accounts opened on or after 1 January 2008.
However, I am also advised by the Revenue Commissioners that the information provided under the Section 891B regulations does not include information on the amounts of deposits or linking deposits with DIRT amounts. It is also important to note the information received under Section 891B is not limited to individuals but also includes interest payments on accounts held by corporations and other entities.
64. Deputy Brian Walsh asked the Minister for Finance if provision will be made to allow a person (details supplied) in County Galway to draw down that person's pension in a defined benefit fund as an approved retirement fund; if legislation will be introduced to afford this flexibility in similar cases; and if he will make a statement on the matter. [17029/15]
View answerBy way of background, approved retirement funds (ARFs) were introduced by Finance Act 1999 to provide control, flexibility and choice to holders of personal pensions and to proprietary director members of occupational pension schemes in relation to the drawing down of benefits from their pension plans. Prior to that Act, any person taking a pension from a Defined Contribution (DC) scheme or a Retirement Annuity Contract had no choice but to purchase an annuity with their remaining pension pot after drawing down the permissible tax-free retirement lump sum. The ARF arrangement extended the options at retirement so that, in addition to the annuity option, the balance of a pension fund could be taken in cash (subject to tax, as appropriate) or be invested in an ARF, subject to certain conditions.
The ARF option was extended, in Finance Act 2000, to the part of an employee's occupational pension fund built up from Additional Voluntary Contributions (AVCs) and most recently, in Finance Act 2011, it was further extended to cover an employee's entire pension fund where the fund is a defined contribution (DC) occupational pension scheme. The 2011 extension which applied with effect from 6 February 2011 (the date of passing of the Act), was in respect of DC schemes approved by the Revenue Commissioners, on or after that date, under Chapter 1 of Part 30 of the Taxes Consolidation Act 1997. Where DC occupational pension schemes had been approved by Revenue prior to that date, the legislation provided that the extension of the ARF option in such cases was conditional on the scheme rules being amended to allow a scheme member exercise the option. Last year, I agreed to a proposal that the Revenue Commissioners will allow access to the ARF option for all holders of BOBs, the values in which have been transferred from DC schemes, regardless of the date of transfer.
The 2011 Finance Act, did not, however, extend the ARF option to the main scheme benefits of defined benefit (DB) occupational schemes as this option was not intended for DB scheme benefits, generally.
I am advised by the Revenue Commissioners, that pension retirement bonds, otherwise known as Buy-out-Bonds (BOBs), are single premium insurance policies effected by the trustees of an occupational pension scheme on behalf of a scheme member, as an alternative to providing a preserved retirement benefit under the scheme for that member. They are used in circumstances where a scheme member is leaving service and opts for a transfer value, on the wind-up of a scheme or where pension splitting arises in the context of a Pension Adjustment Order. BOBs are approved by the Commissioners on a generic, rather than on an individual basis, in the form of a standard bond policy document, under Chapter 1 of Part 30 of the TCA 1997 as DC products. However, in the view of the Commissioners, BOBs are not occupational pension savings vehicles in the normally accepted sense for example, an individual with a BOB cannot make contributions to the BOB. Rather, they are a specialist pension vehicle to deal with the specific situations described above.
I am further advised by the Commissioners that it has always been a condition of approval of generic BOB policies that the benefits to be provided to an individual under such policies be subject to the same restrictions and conditions that applied to the occupational pension scheme from which the transfer to the BOB originated. This includes access to the ARF option. The entitlement to the ARF option, in effect, travels with the transfer value paid into the bond and the fact that the BOB is considered a DC pension product does not, of itself, give entitlement to the ARF option from the BOB as of right. Thus, prior to the Finance Act 2011 changes, the ARF option only applied to benefits under a BOB where the bond holder could have availed of the option under the originating occupational pension scheme, e.g. that the bond holder was a proprietary director before leaving service or that part of the originating transfer represented AVCs. There was no alteration in this position in so far as BOBs originating from DB schemes is concerned following the Finance Act 2011 and more recent administrative changes.
In the details supplied with the question it is mentioned that the individual in question is not able to take a 25% tax free lump sum from his BOB. I am advised by the Revenue Commissioners that the benefits that can be taken from a BOB must reflect the rules of the original retirement benefit scheme (in this case a defined benefit pension scheme) from which the fund value originated. In this case the rules relating to the underlying DB scheme that apply to the BOB that the person concerned purchased do not allow the person to take 25% of the value of the BOB as a tax free lump sum. In a DB pension scheme the maximum tax free lump sum a member is permitted to take is 1.5 times final remuneration, or a lower proportion if the member has completed less than 20 years service with the employer.
Finally the issues around allowing access to the ARF option for BOBs whose values have transferred from DB pension schemes are broader than the tax policy considerations for which I have responsibility and are matters of general pension policy for which my colleague, the Tanaiste and Minister for Social Protection, Ms Joan Burton TD, has responsibility. I understand that both the Tanaiste and the Pensions Authority have concerns that the extension of the ARF option as being suggested could have fundamental implications for the DB model and potentially impact both on the Funding Standard and on the benefit promise to DB scheme members. However, I further understand that the issue of ARF access for BOBs originating from DB schemes will be considered by the Tanaiste's Department in the context of a review of personal pension vehicles aimed at rationalising provision in this area, which review will be undertaken this year.
65. Deputy Jack Wall asked the Minister for Finance if a person whose partner is living with that person may claim tax relief for the partner; if there is an age limit on such a claim; the way a person can register such a claim; and if he will make a statement on the matter. [17030/15]
View answerWhere a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for the purposes of income tax as a separate and unconnected individual. Because they are treated separately for tax purposes, credits, tax bands and reliefs cannot be transferred from one partner to the other. In addition there is no provision in the tax code that allows a person claim tax relief for an unconnected person.
66. Deputy Jack Wall asked the Minister for Finance his views on a matter (details supplied) regarding a concession on tax allowance. [17041/15]
View answerSection 469 of the Taxes Consolidation Act 1997 provides for relief in respect of qualifying expenses incurred in the provision of health care in a tax year against the tax paid by an individual for that year. Health care is defined as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy. It does not include routine ophthalmic treatment, routine dental treatment, or elective cosmetic surgery.
Relief at the standard rate of tax is available to all taxpayers, regardless of age, for health expenses other than the cost of maintenance or treatment in a nursing home (which provides 24-hour nursing care on-site), which is available at the claimant's marginal rate of tax.
A person may claim tax relief at the standard rate on the cost of gluten-free foods which have been manufactured specifically for coeliacs where the use of such products are as part of the treatment of that medical condition and taken on the advice of a medical practitioner. When making the claim for relief evidence should be available that the specialist food has been supplied on the advice of a medical practitioner. Tax relief for qualifying health expenses incurred is dependent on the claimant having taxable income.
Claims for relief can be submitted to the Revenue Commissioners by completing form Med 1 or by making a claim using the PAYE anytime service on the Revenue website at www.revenue.ie.
Further information in relation to health expenses that qualify for tax relief is set out in leaflet IT6 which is available on the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it6.html.
67. Deputy Andrew Doyle asked the Minister for Finance if a European Union national returning to Lithuania, having worked in Ireland for ten years, is entitled to a refund of all tax and universal social charge paid in that period, or if a person is entitled to a part refund of tax paid while residing here; and if he will make a statement on the matter. [17072/15]
View answerI am informed by the Revenue Commissioners that there is no provision in tax law whereby any individual, including an EU national, who returns home having worked in Ireland for 10 years can get a refund of tax/USC paid during that period.
In the year of departure however, as respects employment income only, an individual who is tax resident in Ireland is treated as tax resident up to and including the date of departure only, where he or she satisfies an authorised Revenue officer that he or she is leaving Ireland, other than for a temporary purpose, with the intention and in such circumstances that he or she will not be resident in Ireland for the following tax year. In those circumstances, such an individual may be entitled to a tax refund in respect of the year of departure only, depending on the facts and circumstances of the case.
68. Deputy Bernard J. Durkan asked the Minister for Finance if a refund of income tax or rental accommodation tax allowance is payable in the case of a person (details supplied) in Dublin 5 in respect of 2013 and 2014; and if he will make a statement on the matter. [17077/15]
View answerI am advised by the Revenue Commissioners that the person concerned was in receipt of the Rent Tax Credit for the years 2013 and 2014. This credit was reflected in the Tax Credit Certificates for the years in question issued to the person concerned. I am further advised that no tax refund arises for the years 2013 and 2014, as the correct amount of tax was deducted based on the information held by Revenue. PAYE Balancing Statements will issue shortly to the person concerned confirming the position.
69. Deputy Lucinda Creighton asked the Minister for Finance if, as part of the review of the Irish Bank Resolution Corporation’s commercial dealings, the interest rate charged on loans to large borrowers who were not in arrears will be investigated; and if he will make a statement on the matter. [17106/15]
View answerAs the Deputy is aware, the Minister for Finance has issued directions to the Special Liquidators to perform a review and produce a report having considered all transactions, activities and management decisions, other than those relating solely to the acquisition of assets by the National Asset Management Agency which either:
1. Resulted in a capital loss to IBRC of at least €10 million; or
2. Are specifically identified as giving rise to potential public concern in respect of the ultimate returns to the taxpayer.
The period under review is between the nationalisation of the then Anglo Irish Bank on 21 January 2009 and the Special Liquidation of Irish Bank Resolution Corporation Limited on 7 February 2013.
This would not preclude matters with regard to interest rates charged on loans to large borrowers who were not in arrears being investigated to the extent such transactions, activities and management decisions fall within the scope of the review as set out above.
70. Deputy Lucinda Creighton asked the Minister for Finance if he will confirm whether he or officials in his Department or the National Treasury Management Agency ever expressed concern regarding the sale of the Bank of Ireland's United Kingdom commercial portfolio to a company (details supplied) in 2011; if any complaints were made to him or officials in his Department or the agency concerning this transaction; and if he will make a statement on the matter. [17107/15]
View answerI can confirm for the Deputy that I did not express any concerns regarding the sale of the Bank of Ireland's UK Commercial portfolio to the company highlighted nor were any complaints made directly to me on the matter. I am not aware of officials in either the Department or the NTMA raising any such concerns.
In late September 2011, an official in my Department was made aware that a verbal complaint had been made by a private equity firm to the Department of an Taoiseach that the sale process was not a open one. This complaint was then raised by a senior official in the Department of Finance with an executive of the bank who provided reassurance that the sale process was robust.
Bank of Ireland is a privately owned company in which the State maintains a minority shareholding. The completion of its deleveraging programme was a responsibility of the board and management of the bank though the State as shareholder took an active interest in ensuring that the required disposals were successfully executed in a manner that protected shareholder capital.
