Written Answers Nos. 243-61
243. Deputy Dan Neville asked the Minister for Finance his views on a matter regarding property tax in respect of a person (details supplied) in County Limerick; and if he will make a statement on the matter. [33051/15]
View answerI am advised by Revenue that the person in question is currently exempt from Local Property Tax (LPT) in accordance with Section 8 of the Finance (Local Property Tax) Act 2012 (as amended).
The person's difficulty regarding her 'Property Identification' number arose because the conveyancing process between the original owner and herself in respect of LPT was not properly completed.
Revenue has confirmed to me that a member of the LPT team has already made direct contact with the person in question and assisted her in correctly registering the property in her name.
The person's difficulties are now fully resolved.
244. Deputy Michael Creed asked the Minister for Finance the situation regarding derelict properties and proposals to renovate same, where these derelict properties have not been notified to the Revenue Commissioners or local authorities for the household charge or the local property tax due to their derelict nature; the situation regarding the liability for these charges in the context of any future renovations; and if he will make a statement on the matter. [33057/15]
View answerI am advised by Revenue that any property that is in use as, or that is suitable for use as, a dwelling house is subject to both the Household Charge (HHC) and Local Property Tax (LPT).
Therefore, the condition of a property is not relevant where the property is actually occupied as a dwelling house. However, a property that is derelict to such an extent that it is not suitable for occupation (or not actually occupied) is not taxable.
In the first instance, it is up to a property owner to 'self-assess' as to whether a property is liable or not. This means that, in the case of LPT, there is normally no requirement on the owners of derelict property to declare such structures as taxable, unless the property owner receives a notification and/or valuation estimate from Revenue.
In such circumstances the onus is on the property owner to inform Revenue that the property is derelict and unfit for habitation. The property owner may also have to provide supporting documentation to Revenue to back up his or her claim. Depending on the circumstances of the case, Revenue may or may not agree that a particular property is not liable to LPT.
Revenue has also confirmed to me that while it is not possible to provide a prescriptive set of criterion for derelict properties, it advises property owners as a general rule to take account of the structure of the building including whether it has a roof, windows and sanitary facilities. However the lack of utilities such as water or electricity does not necessarily mean a residential property can be regarded as derelict.
Where a derelict property is renovated to a habitable level, it becomes a 'relevant residential' property for LPT and is liable from the following valuation period. For example, if a property is renovated between 1 May 2013 and 1 November 2016, the first valuation period, then it becomes liable for LPT from 1 January 2017 onwards.
246. Deputy Mick Wallace asked the Minister for Finance his plans to use the €2 billion of bailout funds that the Government expects to receive back from Allied Irish Banks and Permanent TSB, details of which he mentioned in the 2015 spring statement, for investment in public services rather than for debt reduction; and if he will make a statement on the matter. [33108/15]
View answerI assume the Deputy is referring to the €0.4 billion PTSB and €1.6 billion AIB contingent convertible capital notes (CoCos) which were due for redemption in July 2016. The redemption of the CoCos was provided for in the Exchequer estimates contained in the Stability Programme Update.
It should be noted that in the intervening period, PTSB repurchased the €0.4 billion in CoCos which was received into the Exchequer in May of this year.
When the Government invested in the CoCos, there was no impact on the general government deficit as they were considered a financial transaction. The corollary of this is that when they are redeemed, it also has no impact on the general government deficit. Spending these receipts would have a negative impact on the deficit.
Therefore, the receipt of these monies will benefit the Exchequer, reduce the Exchequer Borrowing Requirement and result in debt reduction. In this regard, I would emphasise the importance of continuing to reduce Ireland's debt ratio over the medium term as a pre-requisite for ensuring market confidence in Ireland and freeing up future fiscal capacity for productive investment rather than spending on interest.
247. Deputy Michael Moynihan asked the Minister for Finance the number of National Asset Management Agency properties available, which could be utilised for local authority housing in the north Cork area; the steps being taken to resolve the lack of social housing; and if he will make a statement on the matter. [33124/15]
View answer254. Deputy Michael McGrath asked the Minister for Finance the amount of land the National Asset Management Agency controls which is already zoned for housing; the way in which the agency will assist in expediting the provision of social and for-profit housing; and if he will make a statement on the matter. [33163/15]
View answerI propose to take Questions Nos. 247 and 254 together.
I am advised that, through the Department of the Environment, Community and Local Government and the Housing Agency, NAMA has made a total of 1,269 residential units available for social housing in Cork County and City. Demand has been confirmed by the local authorities for 454 of these, of which 229 have been already delivered and the remainder are in the process of being delivered.
I am further advised that, nationally, NAMA has made over 6,500 residential units available for social housing. Local authorities have confirmed demand for 2,500 of these, of which 1,500 have been delivered and the remainder will be delivered over the coming months on the basis of local authorities and approved housing bodies contracting to acquire or lease the properties. NAMA has invested over €40m to make these properties ready for social housing.
NAMA Asset Residential Property Services Ltd (NARPS) has proven to be a very effective method of delivery and NAMA recently announced its intention to provide future Part V housing on NAMA-funded residential developments through this mechanism. This is a very important initiative, which will mean that NAMA will bear the upfront capital cost of delivering Part V housing on estates that it funds and that such housing will be delivered on site in line with Government policy aimed at ensuring greater integration in housing.
The 6,500 residential properties made available by NAMA for social housing represents the totality of vacant residential properties within NAMA's portfolio that were potentially suitable for social housing. The 4,000 residential properties not taken up for social housing have been either sold or rented in the private housing market and in that way have contributed to increased market supply. NAMA has no role in terms of determining the take-up of properties that it has made available for social housing as this is a matter for local authorities. The remaining properties made available by NAMA were ultimately deemed unsuitable by local authorities based on criteria such as their location and on wider planning and housing policy considerations or they were sold or rented by their owners or appointed receivers during the time taken by local authorities to assess and confirm their suitability.
In addition to this initiative, NAMA is funding the construction of new residential properties to help meet demand in the major urban centres. NAMA has, in this respect, committed to funding the construction of 4,500 new properties in the Dublin area in the three years to end 2016 and is firmly on track to achieve this target. Last year, NAMA funded the construction of nearly 50% of all new residential properties built in Dublin.
I am advised by NAMA that approximately 7,599 acres of residentially zoned land secure its loans, however a proportion of this is in areas where there is limited or no demand for new supply whilst, within the main urban centres, residentially zoned land may not be suitable for development in the short to medium term for a number of reasons including infrastructure deficits and other issues. NAMA has an active land strategy in place for every acre of residentially zoned land in areas where there is demand. Reflecting this, in Dublin NAMA has an exposure through its loans to approximately 30% of zoned residential land but is currently funding more than 40% of new housing output.
As a member of the Dublin Housing Task Force, NAMA has identified all the Tier 1 lands (i.e. sites with potential to deliver more than 20 units) on its books with residential planning already in place. These, along with all other non-NAMA Tier 1 sites in the Dublin area, have been published via an interactive map on the Department of Environment, Community, and Local Government website. This action has brought greater transparency to the Dublin market by publically providing detailed information on sites with development potential.
In April 2014, as part of its contribution to address emerging residential supply shortages in the Greater Dublin area, NAMA established a dedicated Residential Delivery team to coordinate and drive the delivery of this commitment and assess the potential for delivery of additional units thereafter.
I am advised that NAMA is currently focused on doing all that is necessary to bring sites in its portfolio to a shovel-ready state and has active strategy in place for every acre of residentially-zoned land within its portfolio. That includes assessing commercial viability and facilitating debtors and receivers in the preparation and submission of planning applications.
248. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 382 of 22 September 2015, if he will provide a breakdown, by local authority area, of the 76 homes that have received an exemption from the local property tax due to the presence of pyrite. [33127/15]
View answerI am advised by Revenue that the Local Authority level breakdown of the 76 cases confirmed as exempt from Local Property Tax (LPT) on foot of 'significant pyritic damage' in the Parliamentary Question mentioned is set out in the following Table.
|
Area |
No. of Homes |
|
Dún Laoghaire-Rathdown |
35 |
|
Dublin City |
22 |
|
Meath |
9 |
|
Kildare |
8 |
|
Offaly |
2 |
|
Total |
76 |
249. Deputy Niall Collins asked the Minister for Finance the position in respect of the future of the Revenue Commissioners' public office in High Street in Tallaght in Dublin 24; his views on concerns expressed about its future; and his plans in this regard. [33133/15]
View answerThe deployment of resources to its compliance and customer service programmes is a matter for the Revenue Commissioners. I am advised by Revenue that they offer a range of service channels which are adapted to meet the changing demands of taxpayers. Over the last number of years the provision of high quality self service, electronic and telephone service channels has resulted in reduced demand for 'walk in' counter services by taxpayers.
Between 2008 and 2014 there was a 61% reduction in 'walk in' callers to the Tallaght Revenue Information Office (TRIO). Having regard to the changing nature of the demand for service, the Revenue Commissioners introduced an appointments service in the TRIO in July of this year. A dedicated telephone line for the purposes of making appointments is operated Monday to Friday from 09:30 to 16:00 and appointments are facilitated in the TRIO Wednesday to Friday from 09:30 to 13:00. If, during the course of the initial telephone conversation, the Revenue official identifies a more efficient and cost effective means for the taxpayer to carry out their business they will advise and assist them in this regard. A taxpayer who elects to carry out their business through the appointments service is facilitated at a time and on a day which suits them.
Since its introduction the appointments service in TRIO received 2,667 phone calls up to the 22 September 2015. Of these only 223 (8%) taxpayers elected to make an appointment. 92% of callers had queries which were either dealt with immediately or handled via other service channels.
Revenue have advised me that the appointments service in the TRIO continues to be subject to ongoing close monitoring and review and taxpayers will continue to be provided with a flexible and responsive service commensurate with demand.
250. Deputy Michael McGrath asked the Minister for Finance in relation to the announcement by the Ireland Strategic Investment Fund of a €500 million home building finance joint venture with an investment firm (details supplied), the amount that has been drawn down to date; the number of housing units which will be constructed as a result of the drawdown to date; the average interest rate which applies to the loans drawn down to date; when he expects the funding to be fully drawn down; and if he will make a statement on the matter. [33159/15]
View answerThe Ireland Strategic Investment Fund (ISIF) advise that Activate Capital opened for business on 1 September 2015 and will become operational during the fourth quarter of 2015. As of today's date no capital has been drawn down, however, the company is currently in discussions with a number of developers on potential opportunities. As these discussions advance, the timeline for draw down and the number of houses which will be constructed will become clearer.
251. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the number of cases where dwelling house exemption from capital acquisitions tax was claimed and granted in each year from 2008 to 2014; and if he will make a statement on the matter. [33160/15]
View answerI am advised by the Revenue Commissioners that the available information in respect of Dwelling House Exemptions from Capital Acquisitions Tax for relevant years is as shown in the following table.
|
- |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
Numbers availing of relief |
460 |
574 |
440 |
566 |
501 |
541 |
616 |
252. Deputy Michael McGrath asked the Minister for Finance the role of receivers appointed to properties controlled by the National Asset Management Agency; if he is aware of the number of cases where the receivers have given tenants notice to quit on the basis that properties are to be sold; and if he will make a statement on the matter. [33161/15]
View answerNAMA Receivers are appointed contractually or by reference to the NAMA Act. Schedule 1 of the NAMA Act sets out the powers of Statutory Receivers. Where Receivers, whether appointed by NAMA or other creditor, seek vacant possession in advance of the sale of a residential property they are obliged to act fully in accordance with the statutory rights and other protections afforded to tenants and with the terms of the tenancy agreement. This includes terms relating to notice. Where receivers are selling properties that secure NAMA loans, the Receivers are obliged in accordance with NAMA policy to fully openly market the sale so as to ensure that all interested parties are given the opportunity to bid for the property. I am advised that he specific number of these cases is not recorded by the Agency.
253. Deputy Michael McGrath asked the Minister for Finance his views on the performance of the Strategic Banking Corporation of Ireland to date; and if he will make a statement on the matter. [33162/15]
View answerThe Strategic Banking Corporation of Ireland (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.
The SBCI launched its first products in early 2015 and loans were made available from mid-March this year, channelling money from KfW, the European Investment Bank, and the Ireland Strategic Investment Fund to the first on-lenders of the loan products, AIB and Bank of Ireland.
To the end of June 2015 in excess of €44 million euro had been lent to over 1600 SMEs across Ireland. The vast majority of loans were to regionally based SMEs and more than 90% of loans were for investment purposes. The loans were for a variety of purposes and across a range of sectors in the economy. Almost a third of loans drawn were in the agricultural sector and the average loan size is €27,500.
255. Deputy Michael McGrath asked the Minister for Finance the position regarding the formal investigation being undertaken by the European Commission into Ireland's corporation tax arrangements with a company (details supplied); if the Irish authorities have co-operated fully with the investigation; when he expects the investigation to be concluded; and if he will make a statement on the matter. [33164/15]
View answer276. Deputy Joe Higgins asked the Minister for Finance his views on reports (details supplied) that the Government intends to appeal the decision of the European Courts of Justice in relation to the low effective tax rate paid by the Apple corporation. [33288/15]
View answerI propose to take Questions Nos. 255 and 276 together.
Last year, the Competition Directorate of the European Commission announced their intention to open formal state aid investigations into tax rulings provided to a number of companies in various Member States of the European Union.
This announcement is part of a much wider review of tax ruling practice that is currently being undertaken by the European Commission and earlier this year the Commission announced that it was broadening its enquiries to include all Member States.
As the Commission have acknowledged, Ireland has co-operated fully with the process to date and we will continue to do so.
The timeline for the Commission to make a final decision is not set in stone but I would like to emphasise that, while the Commission has opened a formal investigation in relation to one particular case involving Ireland, it has not made a final determination in the matter. Ireland provided a detailed and comprehensive response to the Commission investigation demonstrating that the appropriate amount of Irish tax was charged in accordance with the relevant legislation, that no selective advantage was given and that there was no state aid.
While it would not be appropriate to speculate on the outcome at this stage, I remain of the view that there was no breach of State aid rules in this case and that the legislative provisions were correctly applied.
However, in the event that the Commission forms the view that there was state aid, Ireland is entitled to challenge this decision in the European Courts. As I and my colleagues in Government have already indicated, we will take that course of action, if necessary, to continue to vigorously defend the Irish position.
256. Deputy Michael McGrath asked the Minister for Finance if he will legislate to require banks to give equal treatment to new and existing mortgage customers; and if he will make a statement on the matter. [33165/15]
View answerFirstly, as you know I have taken steps to ensure that banks provide real options for borrowers with high mortgage repayments.
To summarise actions taken to date, I requested a report from the Central Bank on the topic which was published in May. I also met with the six main mortgage lenders and outlined my view that the interest rates being charged to Irish customers were too high. Furthermore, I stressed to the banks that they should treat new and existing customers in a fair manner. 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.
I have recently concluded a further series of meetings with these banks and the reality is that the majority have put options in place to allow borrowers to reduce their monthly repayments. I am pleased to see that the majority of lenders have offered their new reductions and products to both new and existing customers.
I would therefore encourage borrowers to contact their bank to see what is available to them in their particular circumstances or consider moving to another bank if the offer is not satisfactory.
Central Bank research suggests that 21% of existing PDH variable rate mortgage customers could save by switching their provider. I expect that if financial institutions are convinced that there is a threat that they will lose existing customers, they will reduce the rates that they currently charge such customers. Competition rather than legislation represents most sustainable long-term solution to this problem. In this regard, the Competition and Consumer Protection Commission website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions.
Legislation could have significant negative implications for competition and reduce the offerings available to new and switching customers.
257. Deputy Michael McGrath asked the Minister for Finance the outstanding book-value of the National Asset Management Agency loans; the original face value of these loans; his plans for their disposal; and if he will make a statement on the matter. [33166/15]
View answerI am advised that, at 31 March 2015, NAMA's carrying value of loans, net of cumulative impairment provisions of €3.250bn, was €12.528 billion and the nominal amount of contractual par debt outstanding from NAMA debtors was €54.899 billion. This information and additional information on the value and performance of NAMA loans is included in NAMA s Section 55 quarterly accounts, which are published on NAMA s website, www.nama.ie.
NAMA is aiming to redeem a cumulative 80% (€24 billion) of its senior debt by the end of 2016 and expects that it will have redeemed all of its senior debt by the end of 2018. Plans for the disposal of loans are a matter for the NAMA Board. It is NAMA policy that sales are openly marketed and NAMA's overall commercial mandate is to maximise return to the taxpayer.
258. Deputy Peter Mathews asked the Minister for Finance if the Central Bank of Ireland has the authority to deal with instances where banks knowingly underprovide for losses (details supplied). [33223/15]
View answer259. Deputy Peter Mathews asked the Minister for Finance if he is aware that the Central Bank of Ireland has effectively outsourced responsibility for identifying bank losses to the Office of the Director of Corporate Enforcement and the Irish Auditing and Accounting Supervisory Authority, both of which have neither the resources nor willingness to investigate, follow-up and be satisfied that all losses are provided for correctly (details supplied). [33224/15]
View answer260. Deputy Peter Mathews asked the Minister for Finance if he is aware that, based on evidence given to the Oireachtas banking inquiry, both internal accountants and external auditors of Irish banks are in breach of Irish company law by not providing fully for losses in their published accounts; and his plans to correct this by ensuring that banks comply with the law (details supplied). [33225/15]
View answerI propose to take Questions Nos. 258 to 260, inclusive, together.
Prior to 4 November 2014 the Central Bank of Ireland had overall responsibility for the authorisation and supervision of credit institutions operating in Ireland. Following the establishment of the Single Supervisory Mechanism (SSM) this changed with a number of supervisory responsibilities and decision making powers moving to the European Central Bank (ECB).
The core objectives of the Bank in supervising Credit Institutions are:
- to foster a stable banking system;
- to provide protection to depositors with individual credit institutions
As appropriate, the Bank's powers in respect of loan loss provisioning are limited to those prudential powers conferred on the Bank by the European Communities (Capital Adequacy of Credit Institutions) Regulations 2006 (i.e. the regulations transposing the European Capital Requirements Directive (CRD III)) and the European Union (Capital Requirements) Regulation 2014 and its other general supervisory powers.
Under Regulation 70 of the 2006 Regulations, the Bank was obliged to require any credit institution that did not meet the requirements of the 2006 Regulations to take the necessary actions or steps at an early stage to address the situation. Such measures included requiring credit institutions to apply a specific provisioning policy or treatment of assets, in terms of own funds requirements; obliging credit institutions to hold own funds in excess of the minimum level set out in Regulation 19; and requiring credit institutions to use net profits to strengthen the capital base. The Bank has comparable powers under Regulation 92 of the European Union (Capital Requirements) Regulation 2014.
As the prudential regulator, the Bank aims to ensure that credit institutions are adequately capitalised at all times. It regards the issue of losses on loan portfolios as very important and aims to ensure that banks hold adequate capital in respect of such losses. The Bank has not outsourced its responsibility for identifying losses at credit institutions. Under the Regulations, the Bank has the power to set overall capital adequacy standards and, depending on the circumstances, may rely on those powers to increase capital in the event provisions are assessed as inadequate.
The Bank availed of this power under Regulation 70 in the case of the credit institutions subject to the Bank's Prudential Capital Assessment Review. A similar approach underpinned the Single Supervisory Mechanism (SSM) approach under the 2014 Comprehensive Assessment exercise. I would expect the Bank to utilise such powers in any cases where it assesses a bank's provisioning to be inadequate.
The Bank has limited ability to influence provisioning practices within the confines of the existing accounting framework although it did publish Impairment Provisioning and Disclosure Guidelines in December 2011 which were revised and reissued in May, 2013. However, the Bank does not have legal power to require credit institutions to reclassify assets and/or to increase their provisioning level beyond that required under IAS 39 for financial reporting purposes to shareholders.
The European Communities (Credit Institutions: Accounts) Regulations 1992 contain specific requirements regarding the preparation of accounts by credit institutions and in principle, the Bank has power to bring proceedings in relation to a breach of those requirements. However, in respect of prosecuting credit institutions that fail to provide adequately for loan losses in their accounts, the power conferred on the Bank under Regulation 15 is of a very circumscribed nature, where the credit institution in question complied with either local GAAP or IFRS in preparing its accounts.
The Central Bank has no enforcement role regarding obligations imposed by the Companies Acts in respect of the maintenance of proper books of account and the preparation and publication of accounts which is a matter for the Director of Corporate Enforcement. Neither has the Bank a role in enforcement of accounting standards which is a matter for the Irish Auditing and Accounting Supervisory Authority (IAASA).
261. Deputy Joan Collins asked the Minister for Finance the total value of tax reliefs claimed by landlords of private rental accommodation under the allowable headings against the tax paid on their rental income in 2013 and 2014. [33226/15]
View answerI am informed by the Revenue Commissioners that it is not possible to provide the information sought by the Deputy. The Revenue Commissioners do not require rental income data to be returned in a manner which would enable commercial and private rental accommodation income, reliefs and allowances to be separately identified.
However the Deputy may wish to note that the 2013 Report of the Comptroller and Auditor General contained, in Chapter 16, a detailed review of the taxation of rental income and expenses deductible therefrom. This report is available on the website of the Comptroller and Auditor General and can be accessed via the following link
http://audgen.gov.ie/documents/annualreports/2013/report/en/Chap16.pdf.
