Written Answers Nos. 261-279
261. Deputy Charlie McConalogue asked the Minister for Finance his plans to introduce grant assistance or tax credit measures to assist owner-occupiers to fund fire safety repairs in apartment blocks; and if he will make a statement on the matter. [35958/15]
View answerAs the Deputy may be aware, I have announced an extension to the Home Renovation Incentive (HRI) for a further year until 31 December 2016. The incentive provides tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is that which is subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (inclusive of VAT) which would attract a credit of €595. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. This credit is available for works done to a principal primary residence, but would not apply to works carried out in a communal area in an apartment block, which would generally be covered by management fees payable by the owner occupiers.
Grant assistance is a matter for my colleague, the Minister for Environment, Community and Local Government.
262. Deputy John McGuinness asked the Minister for Finance if he is satisfied that the National Asset Management Agency's proposal to build and develop residential and commercial property is compliant with competition law. [35975/15]
View answer268. Deputy John McGuinness asked the Minister for Finance the reason the National Asset Management Agency has chosen to become a developer of commercial property and not a developer of residential or social housing; and if he will make a statement on the matter. [36000/15]
View answer270. Deputy John McGuinness asked the Minister for Finance the skills and requisite experience that are within the National Asset Management Agency to allow it to engage in property development; and if he will make a statement on the matter. [36002/15]
View answerI propose to take Questions Nos. 262, 268 and 270 together.
Firstly it must be pointed out that NAMA does not own property, and it is not a builder or a developer, nor has NAMA chosen to become one as the Deputy suggests. NAMA's role in relation to property is, like a bank, that of a secured lender. As set out in Section 10 of the NAMA Act, NAMA's mandate as a secured lender is to achieve the best financial return for the State from the management and sale of its acquired loans and the assets underlying those loans. The provision of development finance to enhance the ultimate disposal value of assets securing NAMA's loans is entirely consistent with this mandate and NAMA has already advanced over €1.3 billion on a commercial basis across a range of commercial and residential development projects in Ireland since its acquisition of loans in 2010.
Aside from the fact that NAMA is a secured lender, rather than a developer, the Deputy is also not correct in suggesting that NAMA's focus in this respect has been solely on commercial property development. Last year, NAMA funded the delivery of nearly 50% of new housing output in Dublin despite having an exposure to less than one-third of residentially zoned development land in Dublin and since the start of 2014 has funded the construction of over 2,000 new houses and apartments in the greater Dublin area. In conjunction with last week's budget, NAMA announced that having carried out a review of residential development sites under the control of its debtors and receivers, it is aiming to fund the delivery of a target 20,000 additional new homes before the end of 2020. This is in addition to NAMA's ongoing and central role in facilitating the delivery of new commercial and residential space in the Dublin Dockland's SDZ.
Development projects are managed by NAMA debtors, receivers or third-party partners. To achieve the 20,000 target, NAMA will, for instance, work with existing debtors, where possible, but will also work on a commercial basis with developers with no current links with NAMA in developing lands securing NAMA loans. It will seek out Joint Venture and partnership arrangements to ensure that a broad range of developers and contractors have an opportunity to contribute to the residential delivery programme. NAMA ensures in this context that all funding, in accordance with Section 10 of the NAMA Act to obtain maximum return to the State, is based on market commercial terms and that projects are commercially viable. NAMA's role in funding projects is no different therefore to that of other commercial financial institutions and banks. The Deputy will also know that under the terms of the EU Commission's State Aid approval of the NAMA scheme in 2010, NAMA reports to the Commission and the Competition Authority each year on the use of its powers under the NAMA Act in the previous year.
To the extent that it makes commercial sense to fund the development of projects under the control of its debtors and receivers, whether commercial or residential, NAMA is well placed to do so. From its very outset, NAMA, through the NTMA, recruited staff with a diverse range of skills and experience from disciplines including banking, finance, law, insolvency, property development, asset management, architecture, engineering, surveying, planning, and construction. As a result NAMA has the necessary resources, skills and experience, which were not available in the banks responsible for the pre-crash lending to the property sector, to successfully fulfil both its asset recovery and asset management mandates. I am, as a result, fully satisfied that NAMA is best placed to bring coherence, direction and drive to the development of secured assets by its debtors, receivers and third-party investment partners. I believe that anybody who takes the time to objectively consider the work that NAMA has already done in facilitating the delivery of new housing and new office space in the greater Dublin area, including the Docklands Strategic Development Zone (SDZ), will agree with that assessment.
263. Deputy Brendan Griffin asked the Minister for Finance if a person is entitled to tax relief on a purchase to facilitate business (details supplied); and if he will make a statement on the matter. [35980/15]
View answerTax relief is not available for the purchase of a mobile home for the purposes of letting a primary residence as tourist accommodation.
In addition, any profits arising from the rent received, after deduction of allowable expenses, is chargeable to Income Tax and Universal Social Charge (USC) at the individual's respective marginal rates, and to PRSI where applicable.
264. Deputy Brendan Griffin asked the Minister for Finance if the rate of tax on earnings from activity such as renting a room on AirBnB will be reduced; and if he will make a statement on the matter. [35981/15]
View answer265. Deputy Brendan Griffin asked the Minister for Finance if a person must pay tax on earnings from an activity (details supplied); and if he will make a statement on the matter. [35982/15]
View answerI propose to take Questions Nos. 264 and 265 together.
These questions relate to persons providing accommodation through online accommodation booking sites.
Profits arising from the provision of short-term guest accommodation are taxed in the same manner, irrespective of whether such accommodation is provided through an on-line booking site, whether hosted in Ireland or abroad, or through more traditional forms of service provision.
Where such activity is carried on by an individual, the profit arising from the related income, after deduction of allowable expenses, is chargeable to Income Tax and the Universal Social Charge (USC) at the individual's respective marginal rates, and to PRSI. For the tax year 2015, the rates of Income Tax are 20% and 40% and the rates of USC are 1.5%, 3.5%, 7% and 8%. The first three rates of USC will fall to 1%, 3% and 5.5%, respectively, from January 2016. The rates at which tax and USC are charged is determined by the level of the individual's income for the year. In the case of individuals who have non-PAYE income that exceeds €100,000 in a year, a USC surcharge of 3% applies to the excess. In relation to PRSI, the general position is that a 4% charge arises on the profit when the income is returned under Revenue's Pay and File system.
Where the activity is carried on by a company, the income is currently charged to corporation tax at 12.5% if the company is carrying on the activity in the course of a trade. Otherwise, the rate of corporation tax for non-trading income is 25%.
The rent-a-room scheme provides an exemption from Income Tax, PRSI and USC in relation to rent received where a person rents out a room or rooms in his or her principal private residence as residential accommodation and the rent received does not exceed €12,000 per year. This scheme was introduced in order to encourage homeowners to rent out spare rooms in their homes, thereby increasing the supply of affordable rental accommodation. It applies solely to the provision of residential accommodation, i.e. where the tenant occupies the room(s) as his/her place of residence, and does not apply to short-term guest accommodation regardless of whether or not the accommodation is provided via an on-line platform.
I would remind the Deputy that persons offering short-term accommodation via online and offline platforms are competing with traditional B&B and hotel accommodation providers, which are subject to regulation.
266. Deputy John McGuinness asked the Minister for Finance the amount of money the Strategic Banking Corporation of Ireland has loaned to Irish businesses; and if he will make a statement on the matter. [35998/15]
View answerThe Strategic Banking Corporation of Ireland (SBCI) was incorporated in September 2014 and its goal is to ensure access to flexible and lower cost funding for Irish SMEs. The SBCI launched its first product programme on the 19th February 2015, and lending to SMEs commenced on the 9th March 2015 through both Bank of Ireland and Allied Irish Banks Plc. An initial sum of €400m has been allocated between Bank of Ireland and Allied Irish Banks Plc. for lending to SMEs.
Up to 30 June 2015, the SBCI had provided almost €45 million worth of discounted interest rate loans to 1,626 Irish SMEs. 90% of loans were for investment purposes and the average loan size was €27,500. The Agriculture sector accounted for nearly a third of all loans. There was a strong regional spread of loans with 85% of all loans being granted to regionally based SMEs. The SBCI will publish a further update on its lending activities in January 2016.
The Government's aim for the SBCI is to enhance the range and profile of SME finance providers in Ireland, and thereby increase competition for SME lending. 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 for onward disbursement to the SME sector.
267. Deputy John McGuinness asked the Minister for Finance the amount of money that Activate Capital has loaned to Irish businesses; and if he will make a statement on the matter. [35999/15]
View answerThe Ireland Strategic Investment Fund (ISIF) is a partner in the Activate Capital joint venture with KKR. The ISIF is contributing €325 million towards this joint venture, making it the biggest single investment yet undertaken by the ISIF, with KKR providing the remaining €175 million. ISIF inform me that Activate Capital only opened for business on 1 September last and will become operational during the fourth Quarter of 2015. No capital has been drawn down to date, however, the company is currently in discussions with a number of developers regarding potential opportunities.
269. Deputy John McGuinness asked the Minister for Finance the number of planning permissions that have been sought on land controlled by the National Asset Management Agency in the period 2009 to 2014; and if he will make a statement on the matter. [36001/15]
View answerNAMA's role in relation to property development is, like a bank, that of a secured lender. In that capacity, NAMA provides funding for a wide range of asset management and related asset development activities, including enabling debtors and receivers to lodge planning applications.
To date, NAMA funding has resulted in planning permissions for approximately 1m sq. ft. of new commercial office space, 700,000 sq. ft. of which is within the Dublin Dockland's Strategic Development Zone (SDZ), and planning applications have been lodged or are pre-planning stage in respect of a further 3m sq. ft. of office space.
NAMA funding has also facilitated debtors and receivers securing planning permissions for approximately 9,500 residential units since 2010.
271. Deputy John McGuinness asked the Minister for Finance if the National Asset Management Agency has been instructed, or if is it allowed, to seek to make itself a preferential creditor in its dealings with borrowers; and if he will make a statement on the matter. [36003/15]
View answer272. Deputy John McGuinness asked the Minister for Finance if he is aware of any cases where the National Asset Management Agency has sought to have itself placed ahead of the Revenue Commissioners in its dealings with borrowers; and if he will make a statement on the matter. [36004/15]
View answerI propose to take Questions Nos. 271 and 272 together.
NAMA is obliged to seek to protect the position of Irish taxpayers to the greatest extent legally possible in all dealings with debtors, including in the context of other creditors. In doing so, NAMA is aware that other creditors, including international banks, will seek to do likewise and it is entirely appropriate that NAMA takes all necessary steps to ensure that the position of Irish taxpayers is not undermined in any way. I am advised that, in certain circumstances, this requires NAMA to agree sharing arrangements with other creditors, for example in the context of unencumbered assets, but this can only be considered on a case-by-case basis by reference to the unique facts of each case, including NAMA's position in the hierarchy of creditors.
As the Deputy is aware, the Revenue Commissioners have significant rights regarding the collection of taxes and all creditors, NAMA included, must have due cognisance of these rights.
273. Deputy Billy Kelleher asked the Minister for Finance the number of persons availing of the blind persons' tax credit in 2015; and the full-year cost to the Exchequer of same. [36016/15]
View answerI am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' Statistics webpage at http://www.revenue.ie/en/about/statistics/index.html
There is a section of the Statistics webpage dedicated to Tax Expenditures at http://www.revenue.ie/en/about/statistics/index.html#section9, where the table titled "Costs of Tax Expenditures (Credits, Allowances and Reliefs)" includes information in relation to the numbers availing and costs of the Blind Person's Credit.
274. Deputy John McGuinness asked the Minister for Finance if he is aware of any cases where the National Asset Management Agency has declined the highest offer on a property; and if he will make a statement on the matter. [36005/15]
View answerWhere NAMA receives a recommendation from a debtor or receiver in respect of the sale of a property, it requires evidence that the recommended bid is the highest executable qualifying bid available in the market. The Deputy will appreciate that, as for any seller, mitigation of execution risk, particularly in the context of conditionality attaching to bids or inability to prove funding, is an important consideration in NAMA s decision-making process. Accordingly, there may be instances where, in NAMA s judgement, the execution and legal risk is unacceptably high and it selects the next highest bid with a more acceptable level of execution risk. NAMA constantly reviews the sales strategy for any given asset by reference to its independent commercial mandate to recoup maximum return to the Irish taxpayer.
275. Deputy John McGuinness asked the Minister for Finance if he is satisfied that the National Asset Management Agency has at all times complied with Irish procurement law in its appointment of advisers; and if he will make a statement on the matter. [36006/15]
View answerThe NAMA Board, pursuant to Section 15.1 of the Code of Practice for the Governance of State Bodies, has implemented a procurement policy to ensure compliance with all relevant public procurement legislation and I am assured that NAMA, in accordance with the Board's policy, complies with all such rules when it directly procures goods and services. Pursuant to those rules, all NAMA-related services tenders are advertised on the Government's public procurement website www.etenders.gov.ie and are also notified on the Agency's website www.nama.ie.
276. Deputy Pearse Doherty asked the Minister for Finance for an update of the current operational status of a local Revenue Commissioners' office (details supplied) in County Donegal; the reason a front-desk service at this outlet, which had previously been open to members of the public, has since been suspended; if this closure is permanent; the consultation process which took place prior to a formal decision being made to close the service; and if he will make a statement on the matter. [36050/15]
View answerI am advised by the Revenue Commissioners that a customer service desk operated at the Public Services Centre, Donegal until July of this year. The desk was closed in July having regard to the fact that
- Over the last number of years the provision by Revenue of high quality self service, electronic and telephone service channels has resulted in reduced demand for walk-in counter services by customers.
- There was a very low level demand for service at the Donegal office and the bulk of that demand can be serviced through other channels.
- Revenue provides a walk-in counter service in its main office in Letterkenny.
- The on-going expansion of Revenue's self service offering including the recent launch of the MyAccount application on the Revenue website.
Revenue have advised me that the arrangements at Donegal Town are subject to ongoing monitoring and evaluation and that they are satisfied that local requirements are being met at this time.
277. Deputy Michael McGrath asked the Minister for Finance the annual amount of tax generated by the Exchequer from stallion fee income between the years 2007 and 2014; and if he will make a statement on the matter. [36089/15]
View answer278. Deputy Michael McGrath asked the Minister for Finance the annual aggregate revenues generated by thoroughbred stud operations between 2007 and 2014; the corporate taxes paid; and the revenues received by the top five thoroughbred stud operations in the past five years that are available; and if he will make a statement on the matter. [36090/15]
View answerI propose to take Questions Nos. 277 and 278 together.
I am advised that the information available to the Revenue Commissioners relates to the profits earned from the provision of all stallion stud services and that thoroughbred stud profits alone are not separately distinguished on returns. The profits earned from the provision of these services for the years 2008 to 2013 (the most recent available) are as set out in the following table.
Profits earned from the provision of all stallion stud services
|
Tax Year |
Income Tax Returns €m |
Corporation Tax Returns €m |
|
2008* |
1.1 |
0.6 |
|
2009 |
0.5 |
4.0 |
|
2010 |
0.7 |
2.3 |
|
2011 |
0.7 |
2.2 |
|
2012 |
0.7 |
6.4 |
|
2013 |
0.6 |
5.1 |
*These figures do not include fees and profits that were exempt prior to 1 August 2008.
Profits or gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by a stallion, or from the sale of rights to such services, have been taxable since 1 August 2008. Previously, these profits were exempt from Income and Corporation Tax.
I am further advised by the Revenue Commissioners that stallion related profits or gains are aggregated with all other incomes for the purposes of Income and Corporation Tax calculations. All taxpayers, both individual and corporate, can have a number of sources of income, and can avail of a variety of different deductions and reliefs, which affect the final tax liability. In addition, the profit may be reduced by capital allowances or losses to which that taxpayer may be entitled. Therefore, it is not possible to infer the amount of tax that is generated solely from the taxation of these profits or gains.
The Deputy has also asked for the amount of income associated with the top five operations. I am advised by the Revenue Commissioners that, to ensure the confidentiality of Revenue's taxpayer information, it would not be appropriate for the Commissioners to reveal the profits of the top five cases.
279. Deputy Michael McGrath asked the Minister for Finance the annual corporate tax, and other named taxes, paid by the revenues generated by aircraft leasing firms based here in the years 2010 and 2014, in tabular form; and if he will make a statement on the matter. [36091/15]
View answerI am advised by the Revenue Commissioners that tax payments by the aircraft leasing industry for the years 2010 to 2014 are as shown in the following table. This is based on the primary industry description (NACE code) assigned to businesses on the Revenue taxpayer register. I am further advised that Revenue is currently reviewing the classification of aircraft leasing companies on its records and, pending the outcome of this review, these figures should be considered as provisional and may be updated in the future.
|
- |
VAT[1] |
Employer's PAYE |
Corporation Tax |
Total |
|
- |
€m |
€m |
€m |
€m |
|
2010 |
-16 |
25 |
15 |
24 |
|
2011 |
-19 |
30 |
20 |
31 |
|
2012 |
-21 |
36 |
36 |
51 |
|
2013 |
-17 |
51 |
29 |
63 |
|
2014 |
-15 |
55 |
23 |
63 |
The available information in respect of the revenues generated by the aircraft leasing industry is the amount of taxable profits from the Corporation Tax returns filed for the years 2010 to 2013, the latest years available, and are as shown in the following table. The figures are in respect of accounting periods ended in the calendar year shown and are not the exact equivalent of calendar year receipts periods shown in the table above.
|
Year |
Taxable Profits €m |
|
2010 |
108 |
|
2011 |
236 |
|
2012 |
178 |
|
2013 |
231 |
|
2014 |
Not Yet Available |
[1] The Aircraft Leasing Sector is in a net repayment position in respect of VAT for each year.
