Written Answers Nos. 68-75
68. Deputy Billy Kelleher asked the Minister for Finance if he will enquire of the Revenue Commissioners if they have made a decision regarding the a repayment request by a person (details supplied) in County Cork, further to an overpayment by that person of Local Property Tax, which overpayment was based on an incorrect valuation of the person's house by the Revenue Commissioners; and if he will make a statement on the matter. [27849/15]
View answerI am advised by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessed tax and it is a matter for each property owner to calculate the liability based on his/her assessment of the market value of the property on the relevant 'valuation date'.
The first LPT 'valuation date' was 1 May 2013 and any property valuation declared on that date is valid until 31 October 2016. The valuation is not affected by any repairs/improvements made to a property or by any general increase/decrease in property prices that occur over the course of the valuation period.
In regard to the specific case to which the Deputy is referring, the person in question filed the statutory Return for the 2013 to 2016 period and self-assessed valuation Band 4, which was equal to the Revenue estimate that issued to her. The Revenue estimate is not based on a valuation of the property and only comes into play where the property owner fails to file the statutory Return. Once the property owner files the statutory Return and assesses a particular valuation band, as happened in this case, then the estimate ceases to have any effect.
The person recently submitted an amended Return indicating a Band 1 valuation instead of the previously declared Band 4 valuation. The LPT team subsequently made direct contact with the person to discuss the issue and to establish the reason for seeking such a reduction. The LPT team member also explained to her that because she had previously self-assessed at Band 4 level she would need to provide supporting evidence confirming Band 1 as the more appropriate valuation.
The person committed to providing the necessary information as quickly as possible and the Commissioners have assured me that as soon as it is made available the LPT team will review the case as a priority.
70. Deputy Maureen O'Sullivan asked the Minister for Finance if he will report on the activity of the Strategic Investment Fund to date in supporting small and medium-sized enterprises through the provision of sustainable credit; the number of on-lenders through whom loans from the Fund are being advanced; the number applications for loans received to date by each on-lender, and in each case the number of applications that have worked through to credit being advanced; the target lending figure for 2015; and if he will make a statement on the matter. [27862/15]
View answerI assume the Deputy is referring to the Strategic Banking Corporation of Ireland (SBCI). The SBCI was incorporated in September 2014 and since then, the SBCI has made considerable progress in building relations with lending partners and in constructing the complex operational capability required to bring products to market. These include establishing operational capability with funders and lending partners, building internal systems and business processes and establishing a team to safely and effectively manage the funding provided on behalf of the State.
As the Deputy may be aware, the SBCI launched its first product programme on the 19th February 2015 and lending commenced on the 9th March 2015 through both Bank of Ireland and Allied Irish Bank Plc. An initial sum of €400m has been allocated between Bank of Ireland and Allied Irish Banks Plc. for lending to SMEs. The Government's aim for the SBCI is to enhance the range and profile of SME finance providers in Ireland. The SBCI will achieve this by working with existing and new providers to develop specific funding products and by supporting new entrants to the SME lending market through allocating the remaining €400m to a number of new and non-traditional SME finance providers. It is also an objective of the SBCI to encourage competition within the SME funding market through the provision of funding to a broad range of potential lending partners.
I have been informed by the SBCI that it is preparing to publish an update on lending activities later this month. This will provide details of the number and volume of loans to SMEs supported by the SBCI between 9 March and 30 June 2015.
71. Deputy Maureen O'Sullivan asked the Minister for Finance the consideration that has been given to engaging restructured credit unions as on-lenders under the Strategic Investment Fund; if his Department has been approached by any third parties in this regard; and if he will make a statement on the matter. [27863/15]
View answerMy Department has clarified with Deputy O'Sullivan's office that this question is in relation to the Strategic Banking Corporation of Ireland (SBCI).
As the Deputy will be aware, the SBCI launched its first programme on 19 February 2015. The Government's aim for the SBCI is to enhance the range and profile of Small and Medium Enterprise (SME) finance providers in Ireland. The SBCI will achieve this by working wih existing and new providers to develop specific funding products and by supporting new entrants to the SME lending market.
The involvement of a credit union, including a restructured credit union, in the provision of funding to SMEs would be a matter for the individual credit union. Additionally, this type of service would require approval by the Registrar of Credit Unions at the Central Bank, prior to a credit union providing such a service.
My officials have held discussion with the Irish League of Credit Unions regarding their six point plan for the sector. This plan envisages a role for Credit Unions as a lender to SME's.
72. Deputy Thomas P. Broughan asked the Minister for Finance the additional revenue that would be generated if the Stamp Duty on conveyances and transfers of properties valued at over €1million was increased to 3%; and if he will make a statement on the matter. [27872/15]
View answerIt is assumed the Deputy is referring to stamp duty on residential property, which is currently 1% on the first €1 million of the consideration and 2% on the excess.
I am advised by the Revenue Commissioners that the estimated yield to the Exchequer from increasing the 2% rate to 3% would be in the region of €9 million.
73. Deputy Maureen O'Sullivan asked the Minister for Finance the extent of seizures of illegal cigarettes in the past 12 months; the amount of revenue lost to the State; and his plans to combat the serious matter of illegal cigarettes being brought into and sold in this country. [27912/15]
View answerI am advised by the Revenue Commissioners that their action against the illegal trade resulted, in 2014, in the seizures of 53.4 million cigarettes. Up to end of May this year, some 32.8 million cigarettes have been seized. Notable seizures have included quantities of 7.68 million, 10.3 million and 9 million.
Combatting the illegal tobacco trade has been, and continues to be, a priority for Revenue. Their actions include a range of measures to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those involved. Their multifaceted strategy also includes ongoing analysis of the nature and extent of the problem, development and sharing intelligence on a national, EU and international basis, use of analytics and deployment of technologies and optimising the deployment of resources.
A combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages contribute to the effectiveness of Revenue's goal to intercept the supply of illicit tobacco products. Revenue also target the illicit trade at post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
Revenue co-operates extensively with An Garda Síochána in acting against the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, cooperation takes place with other tax administrations and with the European Anti-Fraud Office (OLAF) in the ongoing programmes of action at international level to tackle the illicit trade.
The extent of the illegal trade in cigarettes is estimated through annual surveys of smokers that are carried out for the Revenue Commissioners and the National Tobacco Control office of the Health Services Executive by Ipsos MRBI. Assuming that the illegal cigarettes consumed displaced the equivalent full tax paid quantities of cigarettes, the results of these surveys indicate that the loss to the Exchequer in excise duty and VAT in 2014 was of the order of €210 million.
I have introduced a number of measures in recent years to assist Revenue in dealing with tobacco smuggling and illegal tobacco sales. Measures in the Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excisable products.
In the Finance Act 2013, I introduced new offence and forfeiture measures relating to the illicit production of tobacco, including offences of keeping materials and equipment for the purposes of illicit tobacco production, and provision for forfeiture of any equipment, materials, or unmanufactured tobacco used for illicit production.
In the Finance (No. 2) Act 2013, I strengthened the obligation on a person suspected of dealing in unstamped tobacco products to provide information to a Revenue officer or a Garda and to present any tobacco products concerned for examination. This measure also allows the officer or Garda to search any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
I am satisfied that the current legislative framework provides an effective basis for action by Revenue against the illegal tobacco trade. I will consider any proposals for additional measures that are shown to be of assistance to Revenue in this area.
74. Deputy Thomas Pringle asked the Minister for Finance the amount of money that has been lent to Ireland by the International Monetary Fund; the interest rate payable; the total amount of interest paid; the maturation date of the loans; and if he will make a statement on the matter. [27915/15]
View answerAs part of the EU/IMF Programme of Financial Support the State entered into in late 2010, the IMF provided SDR19.5 billion (approximately €22.5 billion) in funding under its Extended Fund Facility (EFF). Borrowings from the IMF are denominated in Special Drawing Rights (SDR), an international reserve asset created by the IMF. Its value is based on a basket of four key international currencies; the euro, Japanese yen, pound sterling and U.S. dollar.
This funding was provided in twelve individual tranches, the last of which was drawn down in December 2013. This funding was originally due to amortise over the period July 2015 to December 2023.
However, following the early repayment of SDR15.7 billion (just over €18 billion) over the course of the period December 2014 to March 2015, the residual balance, as of end-June 2015, stands at SDR3.8 billion (approximately €4.3 billion). This figure takes account of the effect of currency hedging transactions.
The amortisations will now commence in January 2021 and conclude in December 2023. Details of the annual schedule of amortisations are set out in the following table.
|
- |
SDR BN |
|
2021 |
2.35 |
|
2022 |
1.07 |
|
2023 |
0.35 |
The interest rate on the loan amount outstanding at end-June 2015 is 1.05 per cent. This comprises the SDR interest rate of 0.05 per cent plus a 1 per cent margin. The more expensive portion of the IMF loan facility has been fully repaid and so surcharges previously applicable no longer apply.
Interest paid on IMF loans over the period 2011 to end-June 2015 amounts to SDR1.7 billion (approximately €2 billion).
