Peadar Tóibín
Question:125. Deputy Peadar Tóibín asked the Minister for Finance the annual cost of reducing to 11.5% the value added tax rate for construction refurbishments costing up to €40,000. [25301/15]
View answerVAT Rate Reductions
Questions (125)
Written answers
I am informed by the Revenue Commissioners that, as the information furnished on VAT returns does not require the yield from particular activities or sectors of trade to be identified, it is not possible to estimate the VAT yield for the specific activities mentioned by the Deputy in his questions. Accordingly, I am not in a position to provide the projected figures for the reduction of the VAT rate applicable.
Capital Allowances
Questions (126)
Peadar Tóibín
Question:126. Deputy Peadar Tóibín asked the Minister for Finance the annual revenue that would be generated from 15% capital gains tax on disposal of life assurance policies. [25303/15]
View answerWritten answers
Section 593 of the Taxes Consolidation Act 1997 provides for an exemption from capital gains tax (CGT) in cases where the person disposing of a life assurance policy is the original beneficial owner of the policy. This CGT exemption does not extend to a disposal by a person who is not the beneficial owner of the policy and who acquired the rights or interest in the policy for a consideration in money or money's worth. Any chargeable gains arising on such disposals would be liable to CGT at the current rate of 33%.
The Revenue Commissioners do not have the relevant data on disposals of life assurance policies to which the CGT exemption applies which would allow for any reliable estimate of the figure sought by the Deputy. The Deputy should also note, however, that since 1 January 2001 a policyholder s investment grows tax free throughout the term of the policy and is subject to exit tax on the occurrence of a chargeable event e.g. partial/full surrender or maturity of the policy. The tax deducted is a final liability to tax for the policyholder. With effect from 1 January 2014 the rate of exit tax is 41%. The total life assurance exit tax collected in 2014 was €130 million.
Question No. 127 answered with Question No. 108.
Question No. 128 answered with Question No. 101.
Tax Code
Questions (129)
Peadar Tóibín
Question:129. Deputy Peadar Tóibín asked the Minister for Finance the annual revenue that would be generated from increasing the tax rate for trust income to 30%. [25306/15]
View answerWritten answers
It is assumed that the Deputy is referring to the income generated by assets left in trust that is subject to Income Tax at the standard income tax rate. I am informed by the Revenue Commissioners that as income from trusts is aggregated in tax returns with other classes of income and cannot be separately distinguished there is no statistical basis on which an estimate of the yield requested can be provided.
Tax Code
Questions (130)
Peadar Tóibín
Question:130. Deputy Peadar Tóibín asked the Minister for Finance the annual cost to the Exchequer of broadening start-up relief for entrepreneurs to include self-employed taxpayers as well as pay-as-you-earn taxpayers. [25307/15]
View answerWritten answers
I am informed by the Revenue Commissioners that there is no statistical basis to enable them to estimate the cost of broadening the StartUp Refunds for Entrepreneurs scheme to self-employed taxpayers. For that reason an estimate of the cost of the proposal cannot be provided.
However, I would point out that the Start Your Own Business initiative is available to self-employed entrepreneurs who set up their own unincorporated business, having previously been unemployed for at least 12 months. This initiative provides an exemption from Income Tax on the first €40,000 of taxable profits for the first two years of trading.
Banking Sector Staff
Questions (131, 134)
Richard Boyd Barrett
Question:131. Deputy Richard Boyd Barrett asked the Minister for Finance if he is aware of plans by Allied Irish Banks to outsource work and staff from its application and development teams within its information technology division; his views that this is a worrying development for customers, staff and the economy in view of the potential loss of domestic jobs and skills and the fact that outsourcing in these areas almost certainly contributed to the major information technology systems failures seen recently in Ulster Bank; and if he will make a statement on the matter. [25312/15]
View answer
Fergus O'Dowd
Question:134. Deputy Fergus O'Dowd asked the Minister for Finance his views on a matter (details supplied) regarding Allied Irish Banks; and if he will make a statement on the matter. [25343/15]
View answerWritten answers
I propose to take Questions Nos. 131 and 134 together.
As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
I have been informed that AIB has not at this stage confirmed any agreement to outsource some of its technology services in Application and Development Management teams to a third party provider. Should any such decision be confirmed, then affected staff will be informed immediately and AIB will enter into a full process of information and consultation with employee representatives, as required both by law and under engagement principles agreed with the Irish Bank Officials Association (IBOA).
NAMA Debtor Agreements
Questions (132)
Mick Wallace
Question:132. Deputy Mick Wallace asked the Minister for Finance the circumstances under which the National Asset Management Agency, an insolvency officeholder appointed by the agency or an agency service provider may agree a method of disposal of assets with a debtor or insolvency practitioner with more limited marketing or reporting requirements than those laid out in its guidance note for disposal of real estate assets by the agency's debtors and insolvency officeholders; and if he will make a statement on the matter. [25315/15]
View answerWritten answers
NAMA has a widely stated policy of openly marketing the sale of all assets by its debtors and insolvency practitioners wherever feasible. In certain circumstances there are impediments to this, primarily legal considerations.
NAMA's Guidance Note for Disposal of Real Estate Assets is available on the NAMA website at www.nama.ie.
Section 4.1.1 of NAMA's Guidance Note for Disposal of Real Estate Assets states the circumstances in which the sale of a real estate asset by a NAMA debtor or receiver may be concluded without open marketing, as set out as follows:
(a) Where specific written advice (either legal or professional) has been obtained by NAMA in relation to the disposal of the Real Estate Asset recommending that open marketing should not be pursued for commercial or legal reasons giving rise to material risks. Such Real Estate Assets will be offered at the appraised market value, confirmed by way of independent valuation report received by NAMA;
(b) Where a government entity or State/Semi-State body has approached NAMA, or any of its subsidiaries, to purchase a Real Estate Asset for legitimate reasons in the public interest;
(c) Where the Real Estate Asset is the subject of a compulsory purchase order (CPO) by a State Body or Local Authority. The Debtor should be professionally advised with the adviser entering into a duty of care arrangement with NAMA;
(d) In instances where NAMA via NARPS is acquiring assets for Social Housing from NAMA Debtors or Insolvency Office Holders, noting that an independent market valuation report must exist.
Where any exceptions are proposed for legal or commercial reasons, prior approval of the CEO and Head of Asset Recovery/Head of Asset Management of NAMA must be obtained and the market value must be confirmed by way of independent valuation.
Per existing NAMA Board policy, NAMA will engage proactively with Government Departments, local authorities, State Agencies and other appropriate bodies and entities in relation to their possible need for land/properties in the public interest (e.g. social housing, schools, water and other infrastructure, health centres, hospitals, community and amenity facilities, cemeteries, warehouse space). Such assets will be offered at the appraised market value, confirmed by way of independent valuation, to such bodies for four weeks prior to open market offering. Any agreed sales to such entities will be subject to contract where such contract must be negotiated and agreed within a four week period from the date the entity expressed an interest in purchasing the asset. The closing date in the contract for sale should be no more than 90 days from the date of the contract.
The Deputy may wish to refer to the C&AG's third special report on NAMA, Special Report on NAMA's Progress, 2010-2012, which was published in May 2014 and is available on the NAMA website, www.nama.ie. As part of the review, the C&AG examined the disposal process for 144 properties with gross proceeds of €1 billion and concluded:
"Overall, the examination found evidence that almost all property disposals reviewed had been sold through an open competitive process, or with testing of disposal prices against market valuation. This provides reasonable assurance that the prices obtained were the best on offer in the market at the time a property was sold".
As Minister I am not involved in day-to-day decisions in respect of how NAMA manages its portfolio as these are a matter for the Board of NAMA through its delegated authorities.
Departmental Records
Questions (133)
Eoghan Murphy
Question:133. Deputy Eoghan Murphy asked the Minister for Finance if he will report on those controls within his Department for the management of data and files, including all records relating to departmental and Government decisions; the changes that were introduced in 2011 to ensure the completeness of such records; and if the systems now in place are to be audited on a regular basis to ensure they are working. [25323/15]
View answerWritten answers
My Department has a file management system which records all registered files for the Department of Finance and it provides a similar service to the Department of Public Expenditure and Reform on an administrative arrangement basis. Current and recent files are stored in the Government Buildings complex while the remainder are stored off site. A detailed guidance manual on file management which sets out the requirements under the relevant legislation including the FOI Act, the Archives Act and the Data Protection Act has been issued to staff and is available on the intranet site. The guidance manual clarifies the procedures and processes in dealing with data and files and is updated regularly and most recently earlier this year.
In early 2014, we reviewed our information needs as part of the ICT Strategy 2014-2015. This review focused on both our paper and digital records. A number of new information systems were identified.
A new electronic Records Management System was initiated in 2014 in cooperation with the Department of Public Expenditure and Reform and was developed by the Office of the Government Chief Information Officer. The aim was to provide a centralised system of storing digital files incorporating the existing filing structure but migrating most newly created official documents to storage in digital format rather than physical paper files. An adapted version of the existing file management system will remain in place for handling paper files which include documents that contain legally binding elements such as signatures or seals. This eDocs system will facilitate greater efficiencies in records management particularly in relation to the retrieval of documents and increased security and accountability for official files. An important element of the eDocs project was the assignment of Information Officers in each Division. The Information Officers have been given enhanced training on records management in order to support their teams and promote standard procedures across the Department. This eDocs project is at pilot stage and is expected to be rolled out to the wider department shortly.
Another system introduced recently include a new eSubmission system which replaces the paper system for creating and submitting internal Departmental submissions to me as Minister and to senior management. This electronic submission recording system (eSubmission) records all relevant documentation, recommendations, decisions and notes in relation to submissions.
There is also a new ePQ system which is similar to the eSubmissions system which records all information in relation to the PQs received and the answers provided.
Government decisions are posted to eCabinet by the Government Secretariat. My office prints all decisions made by Government and these are provided to the Secretary General. All decisions in relation to Department of Finance sponsored memos are also sent to those officials involved in their drafting. Furthermore, all decisions relating to Government memos where my Department has returned observations are provided to those officials involved in the preparation of same.
Our file management process and procedures are subject to audit by the internal Audit unit in the Department of Public Expenditure and Reform who provides this service under an administrative arrangement with my Department.