Written Answers Nos. 242 - 266
243. Deputy Dara Calleary asked the Minister for Finance the total amount of lending undertaken by the NPRF-SME credit fund to date; the number of projects involved; the total number of jobs supported; the percentage of applications approved; the way in which the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34695/15]
View answer244. Deputy Dara Calleary asked the Minister for Finance the total amount of investment undertaken by the National Pensions Reserve Fund-small and medium Enterprise equity fund to date; the number of projects involved; the total number of jobs supported; the percentage of applications approved; the way the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34696/15]
View answer245. Deputy Dara Calleary asked the Minister for Finance the total amount of investment undertaken by the National Pensions Reserve Fund turnaround fund to date; the number of projects involved; the total number of jobs supported; the percentage of applications approved; the way the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34697/15]
View answerI propose to take Questions Nos. 243 to 245, inclusive, together.
The Ireland Strategic Investment Fund (ISIF) has advised that the €450 million BlueBay SME Credit Fund has completed 13 loan transactions totalling approximately €201 million as at 30 September 2015.
The €292 million Carlyle Cardinal Ireland (CCI) SME Equity Fund, has completed 4 transactions as at 30 September 2015, with investments completed to date in Lily O'Briens, GSLS, Carroll Cuisine and Payzone.
Due to commercial sensitivities the ISIF does not report on economic impact at individual transaction level, but instead at the aggregate portfolio level.
The ISIF has published its first Baseline Economic Impact Report. Key figures show that as at 31 December 2014:
- ISIF had committed €1.4 billion to investments in Ireland, with €726 million already drawn down.
- 79 Irish companies and projects with a combined annual turnover of €472 million are benefitting from ISIF investment
- Approximately 8,362 jobs are supported directly and indirectly by ISIF investments.
- At 31 December 2014, the funds ISIF invested in had significant engagement throughout the Irish market - with 3,573 engagements and 99 completed investments since inception. There is no application process operated for either the BlueBay SME Credit Fund or the CCI SME Equity Fund, but their activity is included in these figures.
Further information is available online at: http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/
The ISIF is currently surveying underlying investees and plans to publish its first half 2015 Economic Impact Report before the end of Quarter 4 2015.
The ISIF has advised that the BlueBay SME Credit Fund and the CCI SME Equity Fund continue to be active in the Irish lending and investment markets, have a strong transaction pipeline and are focused on deployment of the remainder of their capital pools.
Better Capital Turnaround Fund
ISIF have advised that it was agreed not to extend the investment period of the Better Capital Turnaround Fund following its expiry in December 2014. In the context of improving market conditions, financial institutions and business owners experienced a much reduced need for restructuring capital investment into distressed businesses as compared with initial expectations. The Fund had been set up with a lifespan of two years, with the intention of investing in distressed firms but positive changes in the economy meant it did not complete any investments.
246. Deputy Terence Flanagan asked the Minister for Finance the position regarding tax on landlords (details supplied); and if he will make a statement on the matter. [33988/15]
View answerThe Deputy's question refers to landlords in negative equity being taxed on losses, which may encompass two separate aspects of the tax system.
If a landlord sells an investment property in negative equity at a loss then, assuming that the sales proceeds are less than the original acquisition cost of that property, no liability to capital gains tax should arise on the disposal.
With regard to rental income losses, I assume the Deputy's question concerns allowable interest deductions in computing rental income for tax purposes. Whether the rental property is in positive or negative equity would not affect the computation of rental income for tax purposes.
Where a landlord has allowable deductions equal to or in excess of gross rental income he/she would have no taxable rental income. However, it is possible that not all the outgoings of the individual will be allowable deductions. As you are aware, an individual may be allowed a deduction of 75% of the interest paid on borrowed money used to purchase, improve or repair rented premises when calculating rental income. I would point out that there are also a number of other allowances and deductions available to reduce the tax on rental income paid. These include, for example, the cost to the landlord of any goods provided or services rendered to a tenant and the cost of maintenance, repairs, insurance and management of the property.
In addition, wear and tear allowances are available in respect of expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
The Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income. It sets out the amount of rental income to be taken account of for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing rental income for tax purposes. This guide is available at: http://www.revenue.ie/en/tax/it/leaflets/it70.html .
Preparations for Budget 2016 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment at this time on what changes, if any, are being considered regarding the taxation of landlords or in relation to any other tax measure.
247. Deputy Áine Collins asked the Minister for Finance further to Parliamentary Question No. 74 of 1 July 2015, the progress he and the Department of Communications, Energy and Natural Resources have since made in setting up the bank system for An Post. [34041/15]
View answerMy Department has continued to engage with An Post in relation to their proposal to provide a payment account. There are a number of steps involved in the approval process which must be completed by An Post, including a statutory consultation with the Minister for Communications, Energy and Natural Resources. I am also consulting with the Central Bank of Ireland. Once all the necessary preparatory steps have been completed, a draft order pursuant to Section 67 of the Postal and Telecommunications Services Act, 1983 will be prepared for my consideration. I understand that the process is at an advanced stage.
248. Deputy Michelle Mulherin asked the Minister for Finance If he will replace the 50% rebate on the alcohol products tax paid to eligible micro-breweries by a corresponding financially neutral excise duty rate, in order to obviate the need for a rebate, and to improve cash flow for micro-breweries; and if he will make a statement on the matter. [34099/15]
View answerThe relief for microbreweries was increased in last year's Budget from 20,000 to 30,000 hectolitres. The measure was designed to support the development of the small and medium enterprises in this sector and create additional jobs.
The Deputy will be aware that it is not the practice to comment on what measures may or may not be included in the Budget in advance of Budget day.
249. Deputy Joan Collins asked the Minister for Finance if he will provide a list of tax breaks, in tabular form, outlining what they are designated for; and the amount of moneys provided in these tax breaks in 2012; 2013; and 2014. [34105/15]
View answerI am advised by the Revenue Commissioners that the Revenue Statistics webpage (http://www.revenue.ie/en/about/statistics/index.html) contains a detailed section in relation to the Exchequer cost of many of the allowances, reliefs, exemptions and tax credits available under the Tax Expenditures section of the page: http://www.revenue.ie/en/about/statistics/index.html#section9.
These tables cover statistics up to 2014 in some cases and updates will be published in due course.
The Deputy may wish to note also that, in accordance with requirements under the EU Budgetary Frameworks Directive, my Department will shortly produce a Report on Tax Expenditures which will set out a list of those expenditures and the revenue foregone in respect of them in the most recent year for which figures are available.
250. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide details of the numbers of supernumerary positions in his Department, and those agencies, organisations or bodies funded by his Department; the maximum period in each case that supernumerary positions have existed; the total cost in maintaining supernumerary positions; and if he will make a statement on the matter. [34142/15]
View answerI wish to inform the Deputy there are no supernumerary positions in my Department. In relation to those agencies, organisations or bodies funded by my Department, there are also no supernumerary positions.
251. Deputy Brendan Griffin asked the Minister for Finance if he will not impose further regulation on credit unions following the consultation paper 88 on regulation, which will severely restrict their development and ability to compete effectively; and if he will make a statement on the matter. [34158/15]
View answer256. Deputy Paul Murphy asked the Minister for Finance given the credit union movement's widespread concern and opposition to the restrictions on them outlined in the Central Bank's Consultation Paper 88, if he will consider postponing the signing of commencement orders for the Credit Unions and Co-operation with Overseas Regulators Act 2012; and if he will make a statement on the matter. [34305/15]
View answer279. Deputy Michael Healy-Rae asked the Minister for Finance his views that the new regulations in consultation paper 88 will negatively impact on credit unions, and their capacity to loan to members; that this is a one-size-fits-all approach to lending in general; and if he will make a statement on the matter. [34586/15]
View answerI propose to take Questions Nos. 251, 256 and 279 together.
The Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President of Ireland on 19 December 2012. Following enactment, different parts of the 2012 Act have been commenced in tranches at different times. This approach was taken, as the Department is cognisant of the fact that credit unions needed time to implement all aspects of the 2012 Act and so has informed the timeline for implementation of the various measures on different dates.
I have not yet signed a commencement order for the remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012 which covers the following areas: reserves; liquidity; lending; investments; savings; borrowing; systems, controls and reporting arrangements; and services exempt from additional services requirements.
I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 (CP88), will be introduced at end December 2015. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
The introduction of the new sections into the 1997 Act by the 2012 Act will, in effect, remove some of the requirements (including limits) that currently exist in certain sections and will provide regulation making powers to the Central Bank. The new sections will also contain a number of new requirements.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance are working together for the safety of members' savings and the security of the credit union sector.
The regulations introduce a maximum individual member's savings limit of €100,000 which will ensure the protection of members' savings and continue to ensure that credit unions' funding is sufficiently diversified and is not dependent on a small number of members.
Following consultation with the credit union sector and representative bodies, the Central Bank amended the transitional arrangement for the savings regulations to provide for credit unions that have individual member savings in excess of €100,000 at the commencement of the regulations to apply to the Central Bank to retain these savings where they can demonstrate that it is appropriate and prudent for them to do so.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted giving further information on its application criteria for the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry will provide an application form and explanatory notes in order to assist credit unions. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
The Central Bank has further informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.
252. Deputy Seán Conlan asked the Minister for Finance the number of new vehicles sold from 1 January 2015 to date; and if he will make a statement on the matter. [34183/15]
View answerI am advised by the Revenue Commissioners that 148,462 new vehicles, including passenger cars and commercial vehicles, were registered for Vehicle Registration Tax in the period 1 January 2015 to 30 September 2015.
253. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 250 of 29 September 2015, if he will confirm the interest rate that will apply to finance drawn down by borrowers under the fund; and if he will make a statement on the matter. [34281/15]
View answerThe Ireland Strategic Investment Fund (ISIF) has advised that Activate Capital is prepared to lend up to 90% of the peak funding requirement of residential development projects, including site and working capital (construction) costs. The Platform will also consider lending to projects which do not benefit from "ready-to-go" planning permissions. The product offering is therefore very different to that which is available from the banks, providing customers with significant funding advantages, together with deliverability and speed of execution. To justify the incremental lending risks above what is currently being offered by the Irish banks (which might otherwise require developers to source a multiple of the proposed equity contribution), Activate prices its product at a premium to bank finance. Pricing will depend on a number of factors. In full risk situations, the price is low-teens of per cents, a portion of which is linked to sales realisations.
254. Deputy Dominic Hannigan asked the Minister for Finance if he will consider the idea of cohabiting couples being allowed to share their tax credits, similarly to married couples, if they meet strict criteria; and if he will make a statement on the matter. [34283/15]
View answerWhere a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for the purposes of income tax as a separate and unconnected individual. Because they are treated separately for tax purposes, credits, tax bands and reliefs cannot be transferred from one partner to the other. Cohabitants do not have the same legal rights and obligations as a married couple or couple in a civil partnership which is why they are not accorded similar treatment to couples who have a civil status that is recognised in law.
The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy vs. Attorney General (1980), which held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income.
From a practical perspective, it would be very difficult to administer a tax regime for cohabitants which would be the same as that for married couples or civil partners. Married couples and civil partners have a verifiable official confirmation of their status. It would be difficult, intrusive and time-consuming to confirm declarations by individuals that they were actually cohabiting. It would also be difficult to establish when cohabitation started or ceased.
It should also be noted that while there may be an advantage in tax legislation for a married couple or civil partners as regards the extended rate band and the ability to transfer credits, their legal status has wider consequences from a tax perspective, both for themselves and for persons connected with them.
To counter tax avoidance, transactions between 'connected persons' are frequently subject to anti-avoidance provisions throughout the various Tax Acts. The definitions of 'connected persons' extends to relatives and children of spouses and civil partners. Were the tax treatment of married couples / civil partners to be extended to co-habiting couples, it would be very difficult to prove and enforce such anti-avoidance measures in respect of persons connected with a cohabiting couple, where the cohabiting couple has no legal recognition.
255. Deputy Dominic Hannigan asked the Minister for Finance if he will provide an update on the impact on first-time buyers of the new mortgage rules that the Central Bank of Ireland introduced earlier in 2015; and if he will make a statement on the matter. [34284/15]
View answerThe Central Bank of Ireland, having regard to its mandate to safeguard financial stability, has put in place new macro-prudential measures for residential mortgage lending effective from 9 February 2015. These measures apply proportionate loan-to-value and loan-to-income limits to mortgage lending by regulated financial service providers in the Irish market. For first time buyers, a higher 90 per cent loan to value threshold on the first €220,000 of the value of a primary home property is allowed under the rules.
The key objective of these regulations is to increase the resilience of the banking and household sectors to the property market and to reduce the risk of bank credit and house price spirals from developing in the future. While the Central Bank is independent in the setting of such macro prudential measures, it should be noted that the Central Bank indicated from the outset that it would monitor the impact of the implemented measures ongoing basis, in particular with regard to achieving the stated objectives of the measures and monitoring any unintended consequences. As it indicated at the outset of this new framework, the Central Bank will review the implemented measures on an on-going basis, in particular with regard to achieving the stated objectives of the measures and monitoring any unintended consequences. This will require an ongoing evaluation of relevant data and information, including the particular data on residential mortgage lending that lenders are required to submit to the Central Bank under these macro new prudential regulations. Also, on a more general level, the Central Bank will also maintain a continuing research effort to evaluate macro prudential policy to help ensure its optimum deployment.
257. Deputy Brendan Griffin asked the Minister for Finance if he will consider a budget proposal (details supplied) regarding value added tax rates; and if he will make a statement on the matter. [34314/15]
View answerI am advised by the Revenue Commissioners that VAT law in Ireland must comply with the EU VAT Directive and that the majority of food products are already liable at the zero rate of VAT. However, food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate for "clearly defined social reasons" where the products were liable to VAT at the zero rate on 1 January 1991. Settled case law requires that such exemptions be strictly interpreted and narrowly applied so as not to create or increase divergence of VAT treatment in the EU Member States. As the kinds of products listed in your question were not zero rated in 1991, the standard rate applies and there is no scope to apply the zero rate.
The details attached suggest that non-Irish suppliers of such products are not applying the correct VAT rate; if the Deputy has such information I suggest that he pass it to the Revenue Commissioners.
258. Deputy Clare Daly asked the Minister for Finance his views on the appropriateness of Permanent TSB assessing loan-to-value ratios in order to apply an interest rate reduction, that it is including the warehoused portion of a mortgage, in cases of a split mortgage, to the mortgage outstanding, even though this portion is not subject to interest; the action he will take; and if he will make a statement on the matter. [34317/15]
View answerPermanent TSB has advised that its Loan to Value ratio takes into account the total amount of the outstanding loan and compares it with the value of the associated property at a point in time. As the amount of any debt that is warehoused remains payable by the customer it is reflected in the Loan to Value calculation.
Permanent TSB has confirmed that it does not charge its Home Loan customers any interest on the warehouse portion of their Split Mortgages.
Permanent TSB has informed me that it is committed to meeting customers who have a Split Mortgage on a recurring basis to assess their affordability to ensure their restructure and repayments most appropriately match their circumstances.
259. Deputy Jim Daly asked the Minister for Finance further to his written request to the Governor of the Central Bank of Ireland on 9 July 2015, if he will provide the number of mortgages that were switched from a tracker to a variable rate from 2008 to 2015 to date; if he will confirm this figure, or alternatively provide the reason for this information not being available, as per his written request to the Governor of the Central Bank; and if he will make a statement on the matter. [34323/15]
View answerI note that you have previously raised this subject in a Topical Issues Debate on 8th July. At that time I undertook to bring your concerns regarding this issue to the Central Bank and accordingly my Department wrote to the Central Bank on 13th July. In that letter, the Central Bank was asked to revert to you directly in response and also to provide my office with the details of the matter. I understand that the Central Bank wrote to you on this issue on 28th July and they have informed me that their position has not changed since then. The Central Bank have said, in relation to mortgage holders who are not in arrears converting from tracker rates to standard variable rates, that they do not collect data series on this topic. However, they did draw attention to their Economic Letter on Mortgage Interest Rate Types in Ireland and, in particular, a point in time study of one cohort of loans entered into as tracker loans by covered banks. It showed that 4 per cent of them had converted to fixed rates or variable rates since inception.
Furthermore, on the topic of tracker-mortgage related issues, it is worth noting that on 30th September permanent tsb announced that the PTSB Group had established a Mortgage Product Review Group (MPRG) to review the bank's mortgage product suite and to establish if there are any instances where the contractual terms and conditions attached to mortgage accounts are not being fully honoured by the bank and/or whether other material issues such as the provision of key information at relevant times require further examination.
As you will be aware, this follows the identification earlier in the summer of over 1,300 mortgage customers at PTSB and Springboard Mortgages who, following an investigation by the Central Bank of Ireland, were found in particular circumstances to have lost a contractual right to be offered a tracker rate mortgage. This led to a Mortgage Redress Programme announced in late July through which impacted customer accounts are now being returned to the correct position and the bank is paying compensation to the relevant customer accounts holders.
Notwithstanding the considerable work undertaken to ensure consumers are appropriately protected, the Central Bank has informed me that they remain concerned that there may be other tracker-related issues which could be impacting on consumers across the system. In this regard, they are currently engaging closely with a number of lenders on points of concern relating to their ability to demonstrate that they have acted in the best interests of their tracker mortgage customers, with a number of lenders currently undertaking their own internal reviews. The Central Bank has also been engaging with consumer groups as well as the Financial Services Ombudsman to help inform their future work. On 2 October, the Central Bank announced that they had decided that a broader examination of tracker-related issues covering, among other things, transparency of communications with and contractual rights of tracker mortgage borrowers, was warranted. The Central Bank has commenced this examination. I also understand that they have written to lenders notifying them of this.
Turning to mortgage holders who are facing repayment difficulties, as you are aware, the Code of Conduct on Mortgage Arrears (CCMA) provides protections for borrowers in these circumstances. The lender may offer the borrower an alternative repayment arrangement which requires the borrower to change from an existing tracker mortgage to another mortgage type, if the proposed alternative repayment arrangement satisfies the following conditions: all other options, which would retain the tracker rate, have been considered to be unsustainable; it is affordable for the borrower; and it is a long-term sustainable solution which is consistent with Central Bank of Ireland policy on sustainability. In addition, the CCMA requires lenders to explain in the offer letter the reasons the alternative arrangement offered is considered to be appropriate and sustainable as well as the advantages and any disadvantages or potential disadvantages of any arrangement offered, with regard to the individual circumstances of the borrower. Furthermore, and importantly, lenders must engage with the Central Bank on any proposal to avail of provision 46 of the CCMA. This means there are further strong protections in place. The Central Bank has indicated that to date no lender has engaged with it on developing any such products. This was also confirmed in the outcome of the Central Bank's recently published report on its themed inspection on compliance with the code of conduct on mortgage arrears. During this inspection all lenders confirmed that, as a matter of policy, they do not require, and have not required, borrowers to move from a tracker mortgage rate to a more unfavourable rate during the lifetime of the mortgage. If the Deputy is aware of any banks that may have acted improperly, he should bring them to the attention of the Central Bank. While it does not investigate individual consumer complaints, it does welcome information from consumers of financial products.
260. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the rent-a-room scheme; and if he will make a statement on the matter. [34338/15]
View answerSection 216A of the Taxes Consolidation Act 1997 provides for the rent-a-room scheme. This scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence in order to bring about an increase in the availability of rental accommodation, particularly, but not exclusively, for the student sector. It is available in all parts of the country. Extending the scheme to allow its use for short term guest accommodation, would not contribute to the achievement of the socio-economic objectives for which the scheme was introduced.
I would point out that the provision of guest accommodation has never qualified for relief under this scheme. The Revenue operational manual has clearly stated that income from the provision of accommodation to occasional visitors for short periods does not qualify, as visitors use the accommodation as guest accommodation rather than for residential purposes. Following the entry of Airbnb and others into the short-term accommodation market, Revenue issued an eBrief in February 2015 which amended the operational manual to further clarify that accommodation provided through online booking sites is considered to be guest accommodation. A copy of the operational manual can be accessed on the Revenue website at: http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf .
Any question relating to the charging of income tax is a matter for Revenue. In this regard, the Commissioners advise that property owners who receive income from the provision of occasional guest accommodation should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner.
261. Deputy Patrick O'Donovan asked the Minister for Finance the reason a person (details supplied) in County Wexford was charged the universal social charge at a higher rate; if adjustments should have been made, given that the person is over 70 years of age; and if he will make a statement on the matter. [34344/15]
View answerI am advised by the Revenue Commissioners that the person concerned has been charged Universal Social Charge (USC) at the correct rate for 2014. Having regard to the age of the person concerned, USC is chargeable on her income for 2014 at the rate of 2% on the first €10,036 of income and 4% on the balance.
As the Deputy will be aware, individuals aged over 70 whose income does not exceed €60,000 were liable to a maximum rate of USC of 4% in 2014, and are liable to a maximum rate of USC of 3.5% in 2015. The Deputy may also be aware that the 2% rate of USC was also reduced to 1.5% from this year and now applies to the first €12,012 of income.
262. Deputy Éamon Ó Cuív asked the Minister for Finance the number of farmers who availed of the various tax reliefs, specifically in income tax, stamp duty and capital gains and inheritance tax codes for farmers for the most recent year this information is available, in tabular form; the cost of each relief to the Exchequer for that year; and if he will make a statement on the matter. [34393/15]
View answerI am advised by the Revenue Commissioners that farmers may avail of a number of tax reliefs. The table below shows the main reliefs used by farmers, and their cost to the Exchequer, for which data are available to Revenue.
|
Tax |
Relief |
Numbers Availing |
Tax Cost €m |
Year |
|
Income Tax |
General Stock Relief |
8,950 |
5.2 |
2013 |
|
Income Tax |
Stock Relief for Young Trained Farmers |
310 |
1.1 |
2013 |
|
Income Tax |
Stock Relief for Registered Farm Partnerships |
30 |
0.1 |
2013 |
|
Income Tax |
Exempt Rental Income from Leasing of Farm Land |
4,370 |
7.3 |
2013 |
|
Capital Gains Tax |
Retirement Relief within the Family |
211 |
117* |
2013 |
|
Capital Gains Tax |
Retirement Relief outside the Family |
341 |
53* |
2013 |
|
Capital Acquisitions Tax |
Agricultural Relief** |
1,581 |
164 |
2014 |
|
Stamp Duty |
Young Trained Farmers Relief |
722 |
4.7 |
2014 |
* Figures reflect the disposal consideration amount rather than the tax cost.
** This relief may be claimed by non-farmers in some cases.
263. Deputy Robert Dowds asked the Minister for Finance the income tax obligation of those who provide Airbnb in their homes. [34409/15]
View answer264. Deputy Robert Dowds asked the Minister for Finance if those who provide Airbnb and who earn less than €12,000 per year in so doing, are exempt from income tax up to that amount. [34410/15]
View answer265. Deputy Robert Dowds asked the Minister for Finance if persons providing Airbnb may be subject to retrospective tax; and if he will make a statement on the matter. [34411/15]
View answerI propose to take Questions Nos. 263 to 265, inclusive, together.
Rent-a-room relief is provided for in section 216A of the Taxes Consolidation Act 1997. Under section 216A, sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting are exempt from income tax where they are below the annual limit for the tax year in question (€12,000 for 2015) and certain other conditions are satisfied.
The purpose of the relief is to increase the supply of rental accommodation by incentivising homeowners to rent out rooms in their principal primary residences to individuals on a residential basis, that is where an individual is effectively using the room either on its own or in conjunction with other parts of the residence, as their home. It is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors.
Having regard to both the express policy intent of the legislation and the construction of section 216A, the Revenue Commissioners have consistently taken the view that the relief does not apply in respect of income from the provision of accommodation to occasional visitors for short periods or where rooms are let for business use or guest accommodation. This position is clearly stated in Chapter 7.1.32 of Revenue's Income Tax, Capital Gains Tax and Corporation Tax Manual, which is available on www.revenue.ie. The manual was updated in February 2015 to reflect the fact that I had increased the annual limit for the relief from €10,000 to €12,000 for 2015 and, in that context, Revenue took the opportunity, in the light of media comments, to emphasise that the exclusion of short term guest accommodation applies equally where such accommodation is provided through an online accommodation booking site such as AirBnB.
Any question relating to the charging of income tax is a matter for Revenue. In this regard, the Commissioners advise that property owners who receive income from the provision of occasional guest accommodation (including from Airbnb lettings) should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner depending on their circumstances.
Under self-assessment rules, an individual in receipt of income from any source is obliged to notify Revenue of the income in question so that the amount of any tax due can be determined. Individuals who pay their tax through the self-assessed income tax system (mainly the self-employed), who are referred to as 'chargeable persons', will generally submit an annual tax return of their income from all sources, make a self-assessment of their tax liability and pay any tax due.
An individual who, in a tax year, has both PAYE and non-PAYE income is not regarded as a chargeable person for self-assessment purposes providing the net non-PAYE income does not exceed €3,174 for the year. The easiest way for such individuals to declare any taxable income from Airbnb or similar lettings, is by completing an eForm12 which is available on www.revenue.ie.
A self-assessed individual who received income from lettings in 2014 should include the income on their 2014 Form 11, which should be submitted by 31 October 2015, or 12 November 2015 if payment and filing is made electronically through ROS. The deadline for submission of an eForm12 for 2014 is 31 October 2015.
A taxpayer who is dissatisfied with a determination by Revenue in respect of a claim for a tax relief has a right of appeal to the independent Appeal Commissioners and to the Courts.
The Taxes Consolidation Act 1997 imposes an obligation on an agent (such as Airbnb) who is in receipt of rent or other payments arising from a premises to provide the following information to Revenue:
- The name and address of the hosts/landlords;
- Details of rent or other payments received; and
- The address of the premises being leased.
Revenue will use this information as part of its overall programme of identifying compliance risk and targeting its interventions and resources towards those areas of greatest risk.
266. Deputy Brendan Griffin asked the Minister for Finance a breakdown of the amount in punts that the Central Bank of Ireland converted to euro in each year since 2002; the number of transactions involved; if the Central Bank of Ireland requires identification from persons seeking to convert punts; if it retains information about those using the service; and if he will make a statement on the matter. [34414/15]
View answerA breakdown of the amount in punts that the Central Bank of Ireland converted to euro since 2002, per year, in total, and by denomination, is given in the following table.
The number of transactions per year since 2002 is not available as in the past the transactions were amalgamated into bulk figures on a daily basis for accounting purposes. However, the average number of lodgements for the last few years is 1,300 per year. For low value transactions (less than IR£100) EUR cash is exchanged for IR£ cash. Transactions over IR£100 are not exchanged for cash but are paid out by Electronic Fund Transfer (EFT).
All lodgments/exchanges must be accompanied by documents containing photographic identification. A list of individual transactions including amount, payment date and name of payee is retained in accordance with Data Protection & Retention policies.
Value of IEP Returned since 2002
|
- |
10/- |
£1 |
£5 |
£10 |
£20 |
£50 |
£100 |
Total |
|
Returned 2002 |
311.50 |
319,707.00 |
73,542,610.00 |
177,743,240.00 |
1,452,227,960.00 |
1,385,566,800.00 |
95,313,700.00 |
3,184,714,328.50 |
|
Returned 2003 |
581.50 |
59,104.00 |
932,395.00 |
1,815,210.00 |
9,715,460.00 |
6,147,950.00 |
1,142,500.00 |
19,813,200.50 |
|
Returned 2004 |
250.00 |
27,796.00 |
392,675.00 |
828,700.00 |
4,724,880.00 |
2,469,750.00 |
229,000.00 |
8,673,051.00 |
|
Returned 2005 |
300.00 |
18,986.00 |
244,685.00 |
506,800.00 |
3,047,340.00 |
1,312,200.00 |
137,900.00 |
5,268,211.00 |
|
Returned 2006 |
327.00 |
17,661.00 |
195,660.00 |
457,820.00 |
2,380,560.00 |
1,153,200.00 |
112,700.00 |
4,317,928.00 |
|
Returned 2007 |
271.00 |
14,447.00 |
150,225.00 |
345,320.00 |
1,935,260.00 |
859,350.00 |
107,400.00 |
3,412,273.00 |
|
Returned 2008 |
344.00 |
13,749.00 |
121,005.00 |
256,510.00 |
1,480,600.00 |
636,150.00 |
64,600.00 |
2,572,958.00 |
|
Returned 2009 |
695.50 |
23,560.00 |
146,620.00 |
282,780.00 |
1,345,000.00 |
619,200.00 |
83,700.00 |
2,501,555.50 |
|
Returned 2010 |
264.50 |
11,690.00 |
102,940.00 |
249,520.00 |
1,240,880.00 |
560,700.00 |
70,100.00 |
2,236,094.50 |
|
Returned 2011 |
194.00 |
10,542.00 |
82,110.00 |
188,930.00 |
1,077,560.00 |
461,100.00 |
50,600.00 |
1,871,036.00 |
|
Returned 2012 |
263.50 |
12,491.00 |
78,260.00 |
196,220.00 |
1,207,000.00 |
400,600.00 |
56,700.00 |
1,951,534.50 |
|
Returned 2013 |
361.00 |
11,568.00 |
69,525.00 |
134,550.00 |
707,400.00 |
314,350.00 |
42,700.00 |
1,280,454.00 |
|
Returned 2014 |
155.50 |
7,881.00 |
54,540.00 |
127,660.00 |
643,200.00 |
289,750.00 |
34,400.00 |
1,157,586.50 |
|
Returned 2015 to 30 Sep |
123.00 |
8,724.00 |
41,195.00 |
84,960.00 |
503,280.00 |
205,000.00 |
29,400.00 |
872,682.00 |
|
Total IEP Value |
4,442.00 |
557,906.00 |
76,154,445.00 |
183,218,220.00 |
1,482,236,380.00 |
1,400,996,100.00 |
97,475,400.00 |
3,240,642,893.00
|
