Written Answers Nos. 57 - 63
57. Deputy Éamon Ó Cuív asked the Minister for Finance in relation to home owners living in pyrite-affected homes, if he will outline the class of home owners who are entitled to tax exemptions or reliefs; if he will outline in detail any such tax exemptions or reliefs available, and specifically for a person (details supplied); and when the person will be granted any tax relief due. [32475/15]
View answerI am advised by the Revenue Commissioners that Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three years from the charge to Local Property Tax (LPT) for residential properties that have been certified under Regulations made by the Minister for the Environment, Community and Local Government (S.I. No 147 of 2013) as having "significant pyritic damage".
I am further advised that Revenue administers applications for exemption from LPT for residential properties that have been certified as having "significant pyritic damage". The property owner is specifically required to support a claim for the exemption by submitting a certificate, to Revenue, issued by a competent person as detailed in I.S. 398 Reactive pyrite in sub-floor hardcore material Part 1: Testing and categorisation protocol, published by the NSAI. This is the only type of certificate that is relevant under current legislation. Revenue have no discretion to apply an exemption from LPT on foot of any other type of supporting documentation.
A review of the operation of LPT was recently submitted to me by Dr Don Thornhill and is currently being considered by my Department. The review primarily had regard to recent residential property price developments, the overall yield from LPT and the desirability of achieving relative stability in LPT payments. However it also addressed a number of matters relating to the administration of LPT, including the operation of the pyrite exemption provisions. Any recommendations that are included in the review findings in regard to pyritic damage will be considered in the context of the upcoming Budget. Until then Revenue has no alternative but to apply the eligibility criteria as currently set down.
A resolution to the pyrite issues may necessitate a change in the relevant provisions of the Finance (Local Property Tax) Act 2012 (as amended) and/or the Finance (Local Property Tax) (Pyrite Exemption) Regulations 2013. If legislative change is required, then I will examine the possibilities for its advance application on an administrative basis with the Revenue Commissioners.
58. Deputy Pearse Doherty asked the Minister for Finance if he will provide a list of all documents requested by the European Parliament's TAXE Committee of his Department or of the Revenue Commissioners and in each case to specify if the request was acceded to or refused, with an explanation for each refusal. [32367/15]
View answerI wish to inform Deputy that the European Parliament's TAXE Committee has not requested any documents from my Department or of the Revenue Commissioners. However, in April of this year, the Chairman of the Committee wrote to Ireland's Permanent Representative to the European Union requesting certain tax information concerning Ireland and I understand that a similar letter was issued to all other EU Member States.
Ireland has issued a detailed response to the Committee's letter which provides information in relation to:
- actions to increase transparency, including arrangements for the exchange of information on cross-border rulings in accordance with EU Directives and proposals to implement the OECD recommendations on country by country reporting,
- changes made to Ireland's rules on company residence in last year's Finance Act,
- Ireland's support for, and participation in, the OECD discussions on BEPS,
- Revenue administrative practice on the issuing of advance opinions, including copies of Revenue's published guidelines in this regard, and
- Ireland's double taxation treaties, including a list of the 72 countries with which Ireland has signed a double taxation treaty.
While the Committee requested details of all tax rulings provided to companies in the period since 1991, Ireland was not in a position to provide this information as taxpayer information is confidential under Irish law and Revenue is prohibited from disclosing specific taxpayer information to third parties. I understand that, for similar reasons, other Member States were also not in a position to provide the Committee with details of rulings provided to specific companies. Ireland advised the Committee that, in responding to the Commission State Aid enquiries in relation to tax ruling practice, with which the Irish authorities have fully cooperated, Revenue had identified that the total number of advance opinions issued to companies on corporation tax was 99 in 2010, 128 in 2011 and 108 in 2012.
In response to the Committee's request for details of information shared with other Member States since 2010 under Article 9 of Council Directive 2011/16/EU on administrative cooperation, the Committee was informed that Ireland had spontaneously exchanged information with other Member States in 29 cases but that we were not in a position to provide details of the information exchanged in each case as this is specific taxpayer information which is confidential under Irish law.
Finally, in response the Committee's request for information in regard to the maintenance of a national list of non-cooperative tax jurisdictions, the Committee was informed that Ireland does not maintain such a list but that, as a member of the Global Forum on Transparency and Information Exchange, Ireland does not seek double taxation treaties with jurisdictions that do not meet the international global standard on transparency and information exchange.
59. Deputy Dan Neville asked the Minister for Finance the position regarding moneys due for household charges in respect of a person (details supplied) in County Limerick; and if he will make a statement on the matter. [32376/15]
View answerI am advised by Revenue that Section 156 of the Finance (Local Property Tax) Act 2012 converted any arrears of Household Charge (HHC) that was still outstanding on 1 July 2013 to a Local Property Tax (LPT) liability of €200 per property and made Revenue responsible for collecting the tax.
Prior to 1 July 2013 collection of HHC was the responsibility of the Local Government Management Agency (LGMA) on behalf of the Local Authorities.
I am further advised that any queries in regard to domestic rates, which ceased to apply in 1978, are a matter for the person in question and the relevant Local Authority and Revenue has no role to play in this regard. Also the payment or otherwise of domestic rates has no bearing on the payment of Local Property Tax (LPT) or HHC, both of which are provided for by the Finance (Local Property Tax) Act 2012 (as amended).
Revenue has confirmed to me that, while the person in question has part paid his HHC liability, there is still a balance outstanding. I am informed that Revenue will make contact with the person in the coming days to discuss the outstanding HHC amount. The Deputy will understand however that it will not be possible for Revenue to offer any advice in regard to domestic rates, or accept any possible historic overpayments against the liability.
60. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of reducing the VAT rate by 1% and 2%, respectively. [32392/15]
View answerAs the Deputy is aware, there are a number of VAT rates in operation in Ireland. I am advised by the Revenue Commissioners that information on estimated costs of changes to all of the VAT rates can be found in the pre-Budget 2016 Ready Reckoner on the Revenue Statistics webpage: http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf.
While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated on a pro-rata basis with those displayed in the Reckoner. For example, the full year cost of reducing the 23% VAT rate by 1% is estimated to be €286 million. Further decreases can be estimated on a straight line basis. The figures for the other VAT Rates are included in the Ready Reckoner.
61. Deputy Áine Collins asked the Minister for Finance the regulations which govern the sale of loan-mortgages from an Irish based bank to institutions outside the State. [32408/15]
View answerThe Deputy will no doubt be aware that borrowers whose loans are sold are protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 which was enacted in July this year. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. The Act requires 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.
All consumer and relevant SME loans sold by regulated financial institutions are covered by this Act. Borrowers are therefore restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman also have this right restored by this legislation.
The Central Bank is currently undertaking a consultation process on the Authorisation Requirements and Standards for Credit Servicing Firms and Consequential Amendments to its Codes which closes on 30th September. Included in its proposals are provisions which will ensure that a regulated lender who sells loans subject to the 2012 Consumer Protection Code to an unregulated transferee must, ahead of that sale, identify the firm who will provide the regulated activity of credit servicing for those loans post the sale and provide the requisite notification of their details to the Central Bank and the customer in accordance with Provision 3.11 of the Code.
In addition, it should be noted that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the contract. If a borrower considers that an attempt to change the terms of the contract unilaterally is being made, they should consider seeking independent legal advice. In addition or alternatively, they could make a complaint to the regulated lender or regulated credit servicing firm as appropriate and progress to the Financial Services Ombudsman if the complaint is not resolved to their satisfaction.
62. Deputy Clare Daly asked the Minister for Finance the reason insurance companies are permitted to exclude cover for flood damage by using a technology for geocoding-flooding mapping, which results in premises being denied cover which they previously had despite no history of flooding; and the steps he proposes to take to deal with the industry. [32413/15]
View answerIn my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. The provision of insurance cover, the level of premiums charged and the policy terms applied are a matter for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting and adequate provisioning to meet these risks. As a matter of course, insurance companies carry out reviews of the risks against which they are prepared to insure and they consider these risks when determining their policies.
The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval or provide systematic notification of certain matters, including general and special policy conditions and scales of premiums.
My officials have consulted with Insurance Ireland regarding the particular issue which the Deputy has raised. Insurance Ireland advised that insurers differentiate between risks by using various tools and data such as geocoding, their own individual company claims data, flood modelling data, secondary data, and the existence of adequate flood defences, etc. Insurers then decide whether to offer cover at normal terms, charge a higher premium, impose a higher excess or exclude flood cover. Insurers make their own individual decisions on whether to offer cover or what terms to apply.
Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. This service can be contacted at 01 6761914 or by email at info@insuranceireland.eu.
63. Deputy Tony McLoughlin asked the Minister for Finance the amount of Government revenue, on an annual basis, raised by the vehicle registration tax for both domestic and imported motor vehicles since 2004; and if he will make a statement on the matter. [32422/15]
View answerI am advised by the Revenue Commissioners that the annual yield from Vehicle Registration Tax in respect of new and used imported vehicles for the period 2004 to 2014 is as follows:
|
Year |
New Vehicles |
Used Vehicles |
Total |
|
- |
€m |
€m |
€m |
|
2004 |
889.3 |
56.7 |
946.0 |
|
2005 |
1,043.6 |
105.2 |
1,148.8 |
|
2006 |
1,135.1 |
152.3 |
1,287.4 |
|
2007 |
1,231.8 |
174.2 |
1,406.1 |
|
2008 |
927.4 |
193.4 |
1,120.8 |
|
2009 |
239.0 |
136.4 |
375.4 |
|
2010 |
290.8 |
92.7 |
383.5 |
|
2011 |
298.5 |
89.8 |
388.4 |
|
2012 |
289.6 |
89.8 |
379.3 |
|
2013 |
312.0 |
125.3 |
437.3 |
|
2014 |
409.5 |
132.6 |
542.1 |
