Michael McGrath
Question:284. Deputy Michael McGrath asked the Minister for Finance the yield from inheritance tax in each year from 2011 to 2014; and if he will make a statement on the matter. [20190/15]
View answerTax Data
Questions (284, 285)
Michael McGrath
Question:285. Deputy Michael McGrath asked the Minister for Finance the approximate number of inheritance cases that resulted in a liability for capital acquisitions tax in each year from 2011 to 2014; and if he will make a statement on the matter. [20191/15]
View answerWritten answers
I propose to take Questions Nos. 284 and 285 together.
In relation to the question on yields, I am advised by the Revenue Commissioners that data relating to the net receipts for Capital Acquisitions Tax (CAT), which is comprised in part by inheritance tax, are available from the statistics webpage of the Revenue website at http://www.revenue.ie/en/about/statistics/index.html. In particular, in response to the Deputy's Question, at http://www.revenue.ie/en/about/statistics/cat-receipts.pdf detailed information is presented on the breakdown of CAT receipts. Updates will be published in due course for later years.
In relation to the second question, the number of those who were liable for inheritance tax in each of the years 2011 to 2014 is as shown in the following table. Figures for 2014 should be considered provisional and may be subject to change.
|
Number of Cases |
2011 |
2012 |
2013 |
2014 |
|
Inheritance Tax |
9,705 |
10,011 |
10,166 |
11,370 |
Customs and Excise Protocols
Questions (286)
John McGuinness
Question:286. Deputy John McGuinness asked the Minister for Finance his plans to change the branding of the Customs and Excise from its current format to one that highlights Revenue rather than Customs and Excise; the rationale behind this decision; if a consultation process was put in place to determine the views and opinions of all stakeholders; if the unions were consulted; if the change of branding is part of an overhaul of the type of work carried out by the Customs and Excise and an extension of the brief and powers operated by Customs and Excise officials; if a contract has been, or is in the process of being, awarded for new branding on vehicles, uniforms, stationery, and so on; the cost of same; and if he will make a statement on the matter. [20209/15]
View answerWritten answers
Decisions in relation to the branding and logo of Revenue are matters for the Revenue Commissioners and not for me as Minister for Finance and I am satisfied with the approach taken by the Commissioners in relation to these issues. I am advised by the Revenue Commissioners that their corporate logo was amended to "Revenue/Cáin agus Custaim na hÉireann/Irish Tax and Customs" in 2010. The logo reflects Revenue's mandate which includes collecting taxes and duties and administering the customs regime for the control of imports and exports. The logo also reflects the fact that, since the 1990s, Revenue has progressively integrated its various activities in the interests of greater efficiency and effectiveness.
The decision to modify the corporate logo was communicated to all staff in Revenue in September 2010. The logo was registered with the Patents Office in 2011.
The new logo has been introduced as opportunities arose in the normal course of business. Since 2010, the new logo has been introduced on a phased basis in signage for Revenue offices, buildings and vehicles etc. as new orders are placed. The phased approach to rebranding was adopted to minimise costs.
At present, a tender process for uniforms worn by Revenue enforcement staff is being run by the Office of Government Procurement to replace the existing contract which has now expired. The new tender now presents an opportunity to implement the 2010 decision in relation to the uniform and associated badge. Extensive consultations, including with all Divisions involved in wearing Revenue uniforms, have taken place. The new badge which will incorporate elements of the existing registered logo, will be registered as a trademark of Revenue along with the existing logo.
The adoption of a new badge does not in any way affect the duties of Revenue officials or delivery of service to the public. Where customs functions are being performed at ports, airports etc., the relevant areas and offices will be clearly signposted as "Customs".
Financial Services Ombudsman
Questions (287)
Mattie McGrath
Question:287. Deputy Mattie McGrath asked the Minister for Finance if he will introduce measures to reduce the costs associated with persons obtaining stenographic records from hearings with the Financial Services Ombudsman; his views that such costs are appropriate and affordable; and if he will make a statement on the matter. [20255/15]
View answerWritten answers
Firstly, I must point out that the Financial Services Ombudsman (FSO) is independent in the carrying out of his duties. It would not be appropriate for me to comment on how he performs his duties.
However, I have been informed by the Financial Services Ombudsman's Bureau (FSOB) that they are introducing measures to reduce costs associated with persons obtaining stenographic records from hearings.
From Monday 25th May 2015, a person requesting a copy of a stenographic record from the Bureau will receive this record electronically free of charge.
Printed records will also be available with an appropriate charge for photocopying.
IBRC Legal Cases
Questions (288)
Catherine Murphy
Question:288. Deputy Catherine Murphy asked the Minister for Finance the amount of money spent to date by the Irish Bank Resolution Corporation in litigating a case (details supplied); and if he will make a statement on the matter. [20258/15]
View answerWritten answers
Due to commercial confidentiality and sensitivities, and also solicitor/client confidentiality, the Special Liquidators do not propose to provide details of moneys spent in litigating the specified case. Furthermore, the Special Liquidators do not comment on individual cases.
IBRC Loans
Questions (289, 290, 291)
Catherine Murphy
Question:289. Deputy Catherine Murphy asked the Minister for Finance if he is aware of the existence of a verbal agreement between a debtor (details supplied) and the chief executive officer of the Irish Bank Resolution Corporation, which stipulated terms and conditions of loan repayments due to the corporation; and if he will make a statement on the matter. [20259/15]
View answerCatherine Murphy
Question:290. Deputy Catherine Murphy asked the Minister for Finance if he is aware of an agreement put in place between a debtor and the Irish Bank Resolution Corporation (details supplied), regarding the flexible repayment of that debtor's loans, which was never escalated to the credit committee of the corporation, as legally required; and if he will make a statement on the matter. [20260/15]
View answerCatherine Murphy
Question:291. Deputy Catherine Murphy asked the Minister for Finance if he is aware that a debtor to the Irish Bank Resolution Corporation (details supplied) had written to the current special liquidator of the corporation, seeking changes in any of the terms and conditions of that debtor's loans; and if he will make a statement on the matter. [20261/15]
View answerWritten answers
I propose to take Questions Nos. 289 to 291, inclusive, together.
I am advised by the Special Liquidators that they are not in a position to comment on individual borrowers. The requested information is confidential and it would not be appropriate for the Special Liquidators to release such information.
IBRC Loans
Questions (292)
Catherine Murphy
Question:292. Deputy Catherine Murphy asked the Minister for Finance if he is aware that the special liquidators of the Irish Bank Resolution Corporation have offered or given discounts to debtors, as an incentive to refinance their loans elsewhere, before the scheduled sale of said loans as part of the liquidation process; and if he will make a statement on the matter. [20262/15]
View answerWritten answers
The Special Liquidators have confirmed to me that no borrowers were offered discounts on their loans as an incentive to refinance their loans elsewhere.
Mortgage Data
Questions (293)
Michael McCarthy
Question:293. Deputy Michael McCarthy asked the Minister for Finance if he will provide a breakdown of the number of residential mortgages currently held by entities not regulated by the Central Bank of Ireland; the protections available to mortgages, having been sold to unregulated entities such as a company (details supplied); the actions he will take to make sure such Irish mortgage holders are not paying uncompetitive and unfairly high interest rates on their mortgages; and if he will make a statement on the matter. [20302/15]
View answerWritten answers
Recent Central Bank research published in the Quarterly Bulletin this April gave a total number of PDH mortgage accounts with all lenders of 758,988. It showed a total of 42,169 accounts with non-bank lenders which includes both regulated retail credit firms and currently unregulated entities.
At present, the particular referenced firm is not regulated by the Central Bank. Unregulated entities that have acquired mortgage loan books are not subject to regulation by the Central Bank and are therefore not subject to the provisions of its Codes, such as the CCMA - though many such firms have stated that they will voluntarily comply with the CCMA.
However, borrowers whose loans are sold to unregulated entities will be protected by the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 when it is enacted. The purpose of the Bill is to ensure that consumers retain the protections they had prior to the sale of their loan. This Bill will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
The Bill was published in January and Second Stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill on Committee Stage which has been set for tomorrow (27 May).
In relation to interest rates, last week I concluded a constructive series of meetings with senior management of Ireland's six main mortgage lenders.
The purpose of these meetings was to discuss the mortgage market in general and specifically to raise the issue of standard variable mortgage rates charged by the six main lenders. I outlined my view, that Standard Variable Rates being charged in the Irish market are too high. There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation. The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers. In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates. The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments. Officials in my Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
Tax Code
Questions (294)
Bernard Durkan
Question:294. Deputy Bernard J. Durkan asked the Minister for Finance the threshold for liability for capital gains tax or capital acquisitions tax; and if he will make a statement on the matter. [20311/15]
View answerWritten answers
In relation to Capital Gains Tax (CGT) the first €1,270 of gains made by an individual in any year are exempt from CGT. In addition, there are a number of specific exemptions and reliefs from CGT, including, for example, retirement relief and relief in respect of the disposal of a principal private residence.
For the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.
There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.
Group A: tax free threshold €225,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
Group C: tax free threshold €15,075 applies in all other cases.
There are other exemptions from CAT, including, for example, the annual small gifts exemption under which the first €3,000 of the total value of gifts received by a beneficiary from any one disponer in a year is exempt from CAT.
As with all areas of tax policy I will continue to keep these thresholds and reliefs under review, particularly in the context of the upcoming Budget process.
Disabled Drivers and Passengers Scheme
Questions (295)
Patrick O'Donovan
Question:295. Deputy Patrick O'Donovan asked the Minister for Finance the circumstances when tax relief is available under the disabled drivers and passengers scheme (details supplied); and if he will make a statement on the matter. [20368/15]
View answerWritten answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, assistance with fuel costs, and an exemption from Motor Tax.
To qualify for the Scheme, an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations. These are that the applicant:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Regulations. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the assistance with fuel costs used by members of the Scheme, based on provisional figures the Scheme represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I regularly receive correspondence from individuals with disabilities that do not meet the criteria but who believe they would benefit from the Scheme. While I have sympathy with those who do not qualify for Scheme, I cannot, given the scale and scope of the Scheme, expand it further within the current context of constrained resources.
Tax Rebates
Questions (296)
Jack Wall
Question:296. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is due a tax refund; and if he will make a statement on the matter. [20370/15]
View answerWritten answers
I am advised by the Revenue Commissioners that PAYE Balancing Statements issued to the person concerned on 12 May 2015 for 2013 and 2014. Those Statements set out the person's overall tax position for the years in question.
Pension Provisions
Questions (297)
Terence Flanagan
Question:297. Deputy Terence Flanagan asked the Minister for Finance the position regarding approved retirement funds in respect of a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [20386/15]
View answerWritten answers
The Deputy's correspondent raises an issue relating to the imputed distribution of the value of assets in an ARF.
An imputed distribution of the value of assets in an ARF was introduced because an internal review of tax relief for pensions provision undertaken by my Department and the Revenue Commissioners in 2005 found that the ARF option was largely not being used as intended to fund an income stream in retirement but was, instead, being used to build up funds in a tax-free environment over the long term.
In an effort to counteract this, Budget and Finance Act 2006 introduced, with effect from 2007, an imputed or notional distribution of 3% of the value of the assets of an ARF on 31 December each year (subsequently changed to 30 November each year). The notional distribution arrangement only applies where the ARF owner is 60 years or over for the whole of a tax year. The notional distribution was phased in over the period 2007 to 2009, with 1% applying in 2007, 2% in 2008 and the full 3% from 2009.
The notional amount is taxed at the ARF owner's marginal income tax rate. Funds actually drawn down by ARF owners are credited against the imputed distribution in that year to arrive at a net imputed amount, if any, for the year. Budget and Finance Act 2011 increased the rate of the notional distribution to 5% of the value of the assets of an ARF, while Finance Act 2012 further increased the rate to 6% in respect of ARFs with values over €2 million. In last year's Finance Act, however, I reduced the 5% rate to 4% for ARF owners who are under the age of 70. This reduction in the imputed distribution rate is intended to reduce the risk that individuals in the age group 60 to 70 years might outlive the funds in their ARFs.
An important point to note is that, while most ARF owners take actual draw downs at least equal to the notional distribution rate, there is no obligation on them to do so. The requirement in the legislation is not a statutory minimum drawdown condition. The only requirement is that tax is paid from the ARF on the notional drawdown amount, whether it is drawn down or not.
I do not accept the suggestion in the details supplied with this question that the tax on the notional distribution is a tax on capital gains. We operate what is known as an EET system of pension taxation, whereby contributions to pension arrangements and the build up of the pension assets in the pension fund are both tax-exempt, while pensions are taxed as income in the pay-out phase. ARFs, although they are post-retirement investment vehicles and not pension funds per se, none the less benefit from gross roll-up, which effectively extends the tax exempt fund phase and it is only right that this deferred taxation is "collected" at the point when the ARF owner accesses his or her funds. As already mentioned the imputed distribution regime was introduced to encourage ARFs to be used as intended, that is, to provide an ongoing income stream in retirement as a flexible alternative to annuities.
I have no plans at this time to further amend the imputed distribution arrangements for ARFs but will bear concerns such as those of the Deputy's correspondent in mind when considering the matter in the future.
Tax Code
Questions (298)
Terence Flanagan
Question:298. Deputy Terence Flanagan asked the Minister for Finance further to Parliamentary Question No. 282 of 12 May 2015, his further views on tax on rental income (details supplied); and if he will make a statement on the matter. [20389/15]
View answerWritten answers
As I advised the Deputy in my reply to Parliamentary Question No. 282 of 12 May 2015, the extent to which expenses incurred in earning rental income are deductible in computing taxable rents is specified in section 97(2) of the Taxes Consolidation Act (TCA) 1997.
This question relates, inter alia, to the restriction on the deductibility of interest and the non-deductibility of local property tax (LPT) in computing taxable income from residential property. In the case of interest accruing on or after 7 April 2009 (in so far as it would otherwise be allowable) the deduction available to the landlord is limited to 75% of such interest. A deduction is not allowed in respect of LPT as it is not one of the specified deductions provided for in section 97(2) of the TCA.
The Deputy suggests that the restriction, or non-deductibility, of both interest and LPT can result in taxable rental profits arising in situations where a comparison of rents and all rent-related expenditure can result in an apparent loss. This conclusion appears to be based on an assumption that in the case of income from investment assets (expected to produce income and capital gains) the taxable amount should inherently be computed after allowing a deduction for all costs incurred in earning that income. However, there is no such general principle in the tax code, and there are many examples of situations where interest deductibility is not allowed in the context of investment assets. For example, the funding costs of quoted shares are not generally deductible against dividend income from those shares. The Deputy should also note that while the deductions specified in section 97(2) have generally included interest on borrowed money to purchase, improve or repair the rented premises, that entitlement has been removed or restricted on a number of occasions. An example was the interest restriction imposed between 1998 and 2002 in respect of certain rented residential property borrowings (following the Bacon reports).
I am further advised by the Revenue Commissioners that LPT is an annual self-assessed tax on residential properties in the State and is administered by them in accordance with the Finance (Local Property Tax) 2012. LPT is not a rate levied by a local authority and is, therefore, not deductible from gross rents under section 97(2) of the TCA. As a consequence of the abolition of local authority rates on domestic property in the late 1970s the reference to "any rate levied by a local authority" in section 97(2) of the TCA is now only relevant to commercial property.
On the question of whether LPT should be a deductible expense in calculating a landlord's taxable rental income, as I have stated in response to previous Parliamentary Questions on the matter, this was considered in the Thornhill Report, which recommended that LPT should be deductible. The report, however, recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue, and, for this reason, suggested that consideration be given to phasing in deductibility over a period of years. The report also considered that it was for Government, having regard to the prevailing budgetary situation, to decide on the timespan for phasing-in deductibility and on what percentage of LPT to allow as a deduction from gross rents for tax purposes. The Government has agreed in principle to accept this recommendation but has not, as yet, decided on the manner in which this will happen or its timing.
Ministerial Travel
Questions (299)
Terence Flanagan
Question:299. Deputy Terence Flanagan asked the Minister for Finance if he will provide details of all official foreign trips he and Ministers of State in his Department plan to take between now and the end of 2015; if he will provide details of whom he and the Ministers of State in his Department will be meeting on these trips; the purpose of these trips; the duration of these trips; his plans to use all of these trips to promote Ireland as a good place for doing business, and as a destination for foreign direct investment; and if he will make a statement on the matter. [20440/15]
View answerWritten answers
My programme of official foreign trips planned between now and the end of 2015 includes the following Eurogroup and ECOFIN meetings:
18/19 June: Eurogroup/ECOFIN, Luxembourg
13/14 July: Eurogroup/ECOFIN, Brussels
11/12 September: Eurogroup/ECOFIN (Informal), Luxembourg
5/6 October: Eurogroup/ECOFIN, Luxembourg
9/10 November: Eurogroup/ECOFIN, Brussels
7/8 December: Eurogroup/ECOFIN, Brussels
In addition, I currently plan the following official trips abroad:
3/4 June: France: Attendance at the annual OECD Ministerial Meeting which will focus on "Unlocking Growth, the role of Investment, Innovation and Business Climate". I will also undertake a bilateral programme which will include a meeting with my French counterpart Minister Sapin and a meeting with the Franco-Irish Business Community.
3/4/5 July: France: Attendance at an annual French Economic Conference ("15th Recontres Economiques d'Aix-en-Provence"). The final programme for this visit is still being developed but it is expected to be an opportunity to promote Ireland as a place for doing business and to build relationships with key French economic, financial and business figures.
Further official visits abroad in the second half of the year may be planned in the coming period.
Minister of State Harris's programme of visits from now to the end of 2015 includes the following official trips abroad:
8/10 June: Brussels and Frankfurt: Promoting International Financial Services and advancing the IFS2020 Strategy, as well as Enterprise Ireland and & IDA business.
9 September: Frankfurt: Promoting International Financial Services and advancing IFS2020 Strategy goals, as well as conducting Enterprise Ireland and IDA business.
w/c 14 September: Boston and New York: Engaging in a four day promotion of International Financial Services and advancement of IFS2020 Strategy goals and promoting Enterprise Ireland & IDA business.
6 November: London: Attending an Enterprise Ireland Dinner at the Embassy of Ireland and will also promote Enterprise Ireland and & IDA business
13 November: ECOFIN Budget Council, Brussels.
IBRC Operations
Questions (300)
Catherine Murphy
Question:300. Deputy Catherine Murphy asked the Minister for Finance if the review into transactions at the Irish Bank Resolution Corporation, to be undertaken by KPMG, will include a review of both the Blue Ocean Associates sale to a person (details supplied), which resulted in a write-down of €64 million, and the sale of Topaz to a consortium led by the same person, which also involved a significant write-down to the State. [20468/15]
View answerWritten answers
As the Deputy is aware, I have 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;
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. I am advised by the Special Liquidators that they are not yet in a position to comment on individual transactions that are or are not under review.