Written Answers Nos. 261-274
261. Deputy Barry Cowen asked the Minister for Finance when he expects confirmation from EUROSTAT on the status of Irish Water on the Government balance sheets; and if he will make a statement on the matter. [23652/15]
View answerAs has been previously stated, a CSO classification proposal on Irish Water is currently with Eurostat. This is a closed process and the CSO are awaiting the final adjudication of Eurostat. As it is a closed process, no further information has been supplied to my Department. The final decision will be reflected in the October 2015 EDP results and the Budget 2016 publication.
263. Deputy Micheál Martin asked the Minister for Finance if he will provide in tabular form the number, name and date of Bills initiated in his Department since September 2013. [23665/15]
View answerA total of ten bills have been initiated by the Department of Finance since September 2013. The following table provides details of the number, name and date initiated of each Bill.
|
Number of Bill |
Name of Bill |
Date initiated |
|
102 of 2013 |
Finance (No. 2) Bill 2013 |
24 October 2013 |
|
27 of 2014 |
Central Bank Bill 2014 |
7 April 2014 |
|
44 of 2014 |
National Treasury Management Agency (Amendment) Bill 2014 |
16 May 2014 |
|
66 of 2014 |
Strategic Banking Corporation of Ireland Bill 2014 |
4 July 2014 |
|
78 of 2014 |
Irish Collective Asset-management Vehicles Bill 2014 |
29 July 2014 |
|
87 of 2014 |
European Stability Mechanism (Amendment) Bill 2014 |
26 September 2014 |
|
92 of 2014 |
Customs Bill 2014 |
3 October 2014 |
|
95 of 2014 |
Finance Bill 2014 |
23 October 2014 |
|
108 of 2014 |
Central Bank (Amendment) Bill 2014 |
5 December 2014 |
|
1 of 2015 |
Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 |
12 January 2015 |
264. Deputy Barry Cowen asked the Minister for Finance if he will provide, in tabular form, the total amount spent in each year from 2011 to 2014 and in 2015 to date on staff subsistence payments and staff taxi payments; if his Department has been audited for tax compliance on these payments and other benefits in kind; if these processes have been revised in view of the Revenue Commissioners concerns over practises in other State bodies; and if he will make a statement on the matter. [23681/15]
View answerThe information requested by the Deputy in relation to subsistence claims by - and the refund of all taxi costs to - staff is set out in the following table. As regards staff taxi payments, benefit in kind would only arise in respect of journeys to, or from, the place of employment of an employee where these are on a regular basis and not in compliance with the other criteria set out by the Revenue Commissioners.
|
|
2011 |
2012 |
2013 |
2014 |
2015 (to date) |
|
Subsistence |
€96,050.76 |
€147,063.35 |
€247,047.77 |
€149,767.29 |
€63,063.50 |
|
Taxis |
€14,832.27 |
€27,354.14 |
€40,873.68 |
€30,512.58 |
€11,715.48 |
|
Total |
€110,883.03 |
€174,417.49 |
€287,921.45 |
€180,279.87 |
€74,778.98 |
In addition, the Department has a contracted taxi service based in Dublin and the payments to that company in respect of usage of the service over the years in question are in the following table. An element of the cost relates to the administration cost invoiced. The taxi service is also used occasionally for conveying packages so not all of the costs are attributable to staff usage of the service.
|
2011 |
2012 |
2013 |
2014 |
2015 (to date) |
|
€7,870.24 |
€9,218.75 |
€15,803.78 |
€11,256.75 |
€4,998.10 |
The Department's Appropriation Accounts are subject to annual audit by the Office of the Comptroller and Auditor General. The Department has not been audited for tax compliance on these payments or other benefits in kind by the Revenue Commissioners. The Department is vigilant in the conduct of its activities in these matters to ensure compliance with taxation legislation and Revenue guidelines.
265. Deputy Barry Cowen asked the Minister for Finance if he will provide, in tabular form, by year, all external consultant reports commissioned by his Department since March 2011; the costs per report; the company involved; the title of the report; and publication date. [23697/15]
View answerThe information requested by the Deputy is set out in the following table:
|
Company |
External Consultant Report |
Cost |
Year |
Published |
- |
|
ESRI |
The possible role for the tax system in the development of a fully functioning residential property market |
€30,686.00 |
2015 |
Ongoing - expected to be published October 2015 |
- |
|
Indecon |
Review of marine taxation |
Report currently being compiled so no exact cost yet available. €100,000 (approximately). |
2015 |
Due to be published later in 2015, most likely in the Autumn |
- |
|
John Martin |
Assessment of special regeneration areas for the Living City Initiative |
€2,500.00 |
2015 |
Not published. Used as input to the decisions made on the special regeneration areas. The details of these areas were published when the Living City Initiative was launched. |
- |
|
Antaris Consulting |
The provision of a review of the current Health and Safety Arrangements within the Department of Finance and the Department of Public Expenditure and Reform. The final objectives are to update the Health and Safety Management Systems within both Departments in order to build on existing Health and Safety culture and practices within both Departments |
€13,600.00 |
2015 |
Work nearing completion. While the Department of Finance is the client the service is being provided to both the Department of Finance and the Department of Public Sector and Reform |
- |
|
Red C Research & Marketing Ltd |
SME Lending Survey November 2014 - April 2015 |
€58,978.50 |
2015 |
Published - April 2015** |
- |
|
Indecon |
Cost benefit analysis of Irish Agri-taxation measures and international benchmark against other Agri-taxation incentives |
€103,689.00 |
2014 |
Published - October 2014 |
- |
|
Seamus Coffey |
Effective rates of corporation tax in Ireland |
€4,900.00 |
2014 |
Published - April 2014 |
- |
|
ESRI |
Importance of tax policy in the location choices of multi-nationals |
€30,750.00 |
2014 |
Published - October 2014 |
- |
|
ESRI |
Research Programme on funding for Small, Medium Enterprises |
€122,833.96 |
2014 |
Published - October 2014 |
- |
|
Ernst & Young |
The historical development and international context of the Irish corporate tax system |
€6,150.00 |
2014 |
Published - October 2014 |
- |
|
IBFD |
Spillover analysis of the effects of the Irish tax system on the economies of developing countries |
€91,328 (estimate) |
2014 |
Ongoing - publication due mid 2015 |
- |
|
Red C Research & Marketing Limited |
SME Lending Survey April-October 2014 |
€58,978.50 |
2014 |
Published - November 2014** |
- |
|
Red C Research & Marketing Limited |
SME Lending Survey October-March 2014 |
€58,978.50 |
2014 |
Published - June 2014** |
- |
|
MKF Property Services |
Review of existing facilities management processes |
€28,720.50 |
2014 |
Published - June 2014 |
- |
|
PMCA Economic Consulting |
Assistance and Analysis in the Preparation of the Medium-Term Economic Strategy 2014-2020 |
€49,043.00 |
2013 |
Final report submitted to the Department of Finance on 6 December 2013. It was not published because it was commissioned to provide evidence-based economic analysis as an input to the MTES. This analysis is reflected in the text of the MTES. |
- |
|
Crowe Horwath |
Report to Department in respect of a survey of R&D Active Companies 2013 |
€36,850.80 |
2013 |
Published |
- |
|
Indecon |
Ex ante cost benefit analysis of proposed Living City Initiative |
€28,290.00 |
2013 |
Published |
- |
|
Red C Research & Marketing Limited |
SME Lending Survey October-March 2013 |
€59,593.50 |
2013 |
Published** |
- |
|
Red C Research & Marketing Limited |
SME Lending Survey April-September 2013 |
€58,978.50 |
2013 |
Published** |
- |
|
Mercer (Ireland) Limited |
Remuneration Review of Covered Institutions |
€146,370.00 |
2013 |
Published |
|
|
Delotte & Touche |
External Review of the Compilation of General Government Debt Statistics |
€ 61,553.00 |
2012 |
Published |
|
|
BDO and Amarach |
(a) Survey of audio-visual producers (b) Review on international review of audio-visual state supports |
€64,575.00 |
2012 |
Published |
|
|
Grant Thornton |
Assessment of Credit Review Office |
€31,807.80 |
2012 |
Published |
|
|
Mazars |
SME Lending Survey October-March 2012 |
€60,885.00 |
2012 |
Published** |
|
|
Mazars |
SME Lending Survey April-September 2011 |
€52,453.50 |
2011 |
Published** |
|
|
Red C Research & Marketing Limited |
SME Lending Survey April-September 2012 |
€61,438.50 |
2012 |
Published** |
|
|
Charles River Associates |
Acquisition by AIB of EBS Building Society |
€50,000.00 |
2011 |
Published |
**Reimbursed by AIB & Bank of Ireland.
266. Deputy Sean Fleming asked the Minister for Finance if he will consider introducing a tax credit and-or refund system for persons who require gluten free bread for medical purposes, and who do not have a taxable income, in view of the fact that persons who have a taxable income can apply for a tax rebate in respect of their expenditure on these items; and if he will make a statement on the matter. [23718/15]
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.
A person may claim tax relief at the standard rate on the cost of gluten-free foods which have been manufactured specifically for coeliacs and where the products are used in the treatment or alleviation of that condition on the advice of a medical practitioner. Evidence of such advice should be retained.
There is no tax rebate available for those individuals that have no liability to income tax in the relevant tax year. In addition, gluten-free bread qualifies for the zero percent rate of VAT, so no VAT is charged on these items.
In cases of exceptional need dietary supports may be available via the Social Welfare system, and this is a matter for the Minister for Social Protection.
267. Deputy Willie O'Dea asked the Minister for Finance in view of the increase in property values, if he will consider amendments to the capital acquisitions tax regime in order to relieve the burden on persons who receive or inherit property; if he will introduce specific reliefs to cater for physically or mentally disabled persons who inherit a property; and if he will make a statement on the matter. [23721/15]
View answer268. Deputy Jerry Buttimer asked the Minister for Finance his plans to increase the thresholds for capital acquisitions tax and to reduce the rate of tax; and if he will make a statement on the matter. [23740/15]
View answerI propose to take Questions Nos. 267 and 268 together.
Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance.
For the purposes of CAT, 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.
The Group A tax free threshold of €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.
The Group B tax free threshold of €30,150, applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
The Group C tax free threshold €15,075, applies in all other cases.
Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold. In recent years these thresholds were reduced and the rate has been increased in order to maintain the yield from capital taxes in the face of falling asset prices and as part of our fiscal consolidation efforts. In addition, taxes on certain capital are less harmful from an economic perspective than taxes on employment.
I am aware that property values have increased, with developments that had been restricted to the Dublin area now manifesting in other areas of the country, though not to the same extent in terms of price rises. I recognise that this has a bearing on taxation of the inheritance and gifting of property with respect to CAT thresholds. In this light, I will be keeping Capital Acquisitions Tax thresholds, rates and other aspects of the tax under review, particularly in the context of preparations for Budget 2016 and the consequent Finance Bill.
In regard to Deputy O'Dea's question about people with disabilities who receive properties through gift or inheritance, the position is that if such an individual is living in the property they receive then they may be able to qualify for an exemption from CAT, provided certain conditions are met. I do not currently have further plans in this area, but I would be glad to examine without prejudice any specific proposals for change that the Deputy may wish to make.
269. Deputy Jerry Buttimer asked the Minister for Finance his plans to reduce the rate of deposit interest retention tax; and if he will make a statement on the matter. [23741/15]
View answerAs the Deputy will be aware, it is the standard practice for the Minister for Finance to review all tax expenditures and reliefs in the run up to annual Budgets. It is also a longstanding practice of the Minister for Finance not to comment on any tax matters that could be the subject of Budget decisions.
In recent years the DIRT rate has been increased to raise additional revenue. The Government decided to increase the rate of Deposit Interest Retention Tax (DIRT) (previously 33%) to 41% in Budget 2014. The higher rate of DIRT (previously 36%) for interest paid less frequently than annually was abolished, and all deposit interest is now liable to DIRT at the same rate (41%).
Up to 2009, individuals may have been taxable on other income at the higher rate of income tax but were only liable to pay tax on interest income at 20%. Previous DIRT rates were below the higher rate of income tax, and this, in effect, incentivised saving. The decision to raise the rate of DIRT was taken to encourage spending in the economy with a view to stimulating growth and employment.
Certain exemptions apply from DIRT, the main ones include -
- Individuals aged over 65 (subject to income limits)
- Permanently Incapacitated Individuals
- Companies, Pension Funds and Charities (Irish resident companies pay tax on investment income at 25%)
- Non-Resident Account Holders
270. Deputy Pearse Doherty asked the Minister for Finance the number of borrowers who refinanced their loan from the Irish Bank Resolution Corporation at a 100% rate, between the date of liquidation and 31 December 2014. [23753/15]
View answerThe information sought by the Deputy is not readily available and will take some time to assemble. The response will be forwarded to the Deputy when it is compiled by the Special Liquidators at the earliest opportunity.
271. Deputy Pearse Doherty asked the Minister for Finance if any borrowers at the Irish Bank Resolution Corporation refinanced their loans at a rate of less that 100%, capital and interest due, between the date of liquidation and 31 December 2014. [23754/15]
View answerThe Special Liquidators have confirmed that no Borrower refinanced their borrowings below par value, that is below 100% of what was owing at that time, between the date of the Special Liquidation and 31 December 2014.
272. Deputy Clare Daly asked the Minister for Finance the steps his Department has taken, or plans to take, to address the regulatory and consumer protection issues arising from massive consolidation in the insurance market, a consolidation which is likely to increase when the Solvency II regime comes into force on 1 January 2016. [23795/15]
View answerOne of the key objectives of the Solvency II Directive is to enhance the protection of policyholders and beneficiaries. It also seeks to better regulate the insurance industry throughout the EU. These objectives will be achieved by the correction of weaknesses identified in the current Solvency I regime. To further achieve its objectives the framework Directive has changed the emphasis of the regulatory regime to a system which focuses on risk management.
In my role as the Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. The day to day responsibility for the supervision of financial institutions is a matter for the Central Bank, which is statutorily independent in the exercise of its regulatory functions. The Central Bank of Ireland has informed me that it has a comprehensive and detailed plan for the implementation of the Solvency II Directive in Ireland. The structure of the Solvency II project in the Central Bank includes a Steering Committee to provide strategic oversight, a Programme Board which directs and guides the project and an Implementation team. The Steering Committee is chaired by the Deputy Governor (Financial Regulation), Cyril Roux. The Programme Board is chaired by the Director of Insurance, Sylvia Cronin. A full analysis of the requirements of Solvency II has been undertaken and a number of workstreams were established in the Central Bank to cover each area. Each workstream has a detailed plan and milestones to complete.
In addition, the Consumer Protection Code, which was revised in 2012, contains a wide range of provisions that protect all consumers in the State, including those of insurance firms whether, or not, they are prudentially regulated here. The Code expects that a regulated entity acts honestly, fairly and professionally in the best interests of its customers. The Code contains specific requirements around Provision of Information, Knowing the Customer and Suitability, Claims and Complaints Handling. The Central Bank can bring enforcement action against regulated firms for breaches of this Code.
The Minimum Competency Code, introduced in 2011, ensures that consumers obtain a minimum acceptable level of competence from individuals acting for or on behalf of regulated entities in the provision of advice and associated activities in connection with retail financial products.
Should Solvency II lead to consolidation in the insurance sector and resulting competition issues, these would be a matter for The Competition Authority which is under the aegis of the Department of Job, Enterprise and Innovation.
273. Deputy Clare Daly asked the Minister for Finance if any Ministers, former Ministers, or their immediate family members had loans with Anglo Irish Bank or with the Irish Bank Resolution Corporation which benefited from a write-down, in view of the potential conflict of interest; and if he will make a statement on the matter. [23846/15]
View answerI am advised by the Special Liquidators that they are not in a position to comment on individual borrowers. The requested information would be confidential and it would not be appropriate for the Special Liquidators to release such information.
However, I would like to inform the Deputy that I am further advised by the Special Liquidators that the systems in Irish Bank Resolution Corporation Limited (in Special Liquidation) (IBRC) do not segregate and/or identify a borrower as being a Minister, ex-Minister or an immediate family member of a Minister.
274. Deputy Clare Daly asked the Minister for Finance his views on whether there was a conflict of interest where some former directors of the Irish Bank Resolution Corporation became directors of companies (details supplied) which handled mortgages sold by the corporation to another company (details supplied); and if he will make a statement on the matter. [23847/15]
View answerIn relation to the perceived conflict of interest highlighted by the Deputy, I am unable to comment on the directorships of third party purchasers of loan assets. However, I can confirm that the Special Liquidators devised and ran a competitive sales process, following the receipt of independent advice, for all loan assets of IBRC which they have sold.
The SLs appointed PwC as independent advisors to value the residential mortgage portfolio and to provide advice in developing a strategy for the sale of the residential mortgage portfolio which would ensure that maximum value was obtained for all creditors of IBRC. Per my instruction, the assets of IBRC could only be sold at a price equal to or in excess of the independent valuations obtained.
