Written Answers Nos. 135-147
135. Deputy Michael McGrath asked the Minister for Finance if he has signed a ministerial order commencing the section of the Finance Act 2014 which would extend the employment and investment incentive for medium enterprises to all counties in the State; and if he will make a statement on the matter. [36938/15]
View answerFollowing discussions with the EU Commission with regard to the State Aid rules, a number of changes were made to the Employment and Investment Incentive via Financial Resolution taken on Budget night on October 13th last. That resolution also commenced the changes announced to the EII in last year's Budget and included in Finance Act 2014.
The changes, inter alia, allow all medium-sized enterprises located in the State to qualify for the Incentive, provided they meet all of the other qualifying conditions.
136. Deputy Brendan Griffin asked the Minister for Finance the circumstances under which redundancy payments are taxable; are tax free; and if he will make a statement on the matter. [36939/15]
View answerStatutory redundancy payments payable under the Redundancy Payments Acts are exempt from income tax. In addition to statutory redundancy, individuals may receive ex-gratia or termination payments on leaving employment. Such payments are chargeable to tax but may qualify for certain exemptions provided for in section 201 of the Taxes Consolidation Act 1997 as follows:
1. A "basic exemption" of €10,160 plus €765 for each full year of actual service with the employer making the payment;
2. This "basic exemption" may be increased by an additional €10,000 where an individual has not made any claims for exemptions in respect of ex-gratia payments received in the previous 10 years. Where the individual is a member of an occupational pension scheme, this additional amount is reduced by the value of any tax-free lump sum received or receivable from the pension scheme; and
3. The exemption may also be increased by the amount by which a sum referred to as the "Standard Capital Superannuation Benefit" (SCSB) exceeds the value of the basic plus the increased exemption. The SCSB amount is calculated by multiplying 1/15th of the person's annual income, averaged over the last three years, by the number of complete years of service with the employer, and deducting any tax-free lump sum which is received or receivable under any pension scheme.
From 1 January 2011, the maximum aggregate lifetime amount that may be paid tax free to any individual in respect of termination(s) of employment is €200,000.
Full details are available on the Revenue Commissioners website at: http://www.revenue.ie/en/tax/it/leaflets/it21.html.
137. Deputy Billy Timmins asked the Minister for Finance if he will confirm that the recently announced policy whereby the National Asset Management Agency will construct 20,000 houses in the next number of years is in compliance with European Commission state aid rules; if the Commission has been provided with the details of the scheme; and if he will make a statement on the matter. [36952/15]
View answerAgainst a background of continuing dysfunctionality in the residential development market and a major supply shortage in urban areas, NAMA has undertaken to fund the delivery of 20,000 residential units over the next five years in so far as that can be done on commercially viable basis.
The issue of State aid does not arise.
NAMA will be providing funding to debtors and receivers on a commercial basis to develop commercially viable residential sites securing NAMA's loans. NAMA will work with existing debtors, where possible, but where necessary, will also work on a commercial basis with developers with no current links with NAMA on sites securing NAMA loans.
This will enhance the ultimate disposal value of these sites and increase the recovery on NAMA's loans securing these sites.
The funding to be provided to NAMA's debtors and receivers to enhance the ultimate disposal value of residential sites securing its loans will be drawn from the Agency's own resources. NAMA, like any other secured lender, will fund only projects that are commercially viable.
Essentially, the programme will require investment of the projected NAMA surplus. NAMA expects to fully recover and enhance that surplus through this programme. This is entirely consistent with NAMA's commercial obligation under section 10 of the NAMA Act to optimise the value of its assets and is expected to enhance the overall surplus that will be available to the Minister after the sales proceeds from the programme have been received.
138. Deputy Brendan Griffin asked the Minister for Finance the additional revenue generated by new vehicle sales to date in 2015, compared with 2014, 2013, and 2012; and if he will make a statement on the matter. [36979/15]
View answerI am advised by the Revenue Commissioners that the Vehicle Registration Tax in respect of new vehicles in the period 1 January to 30 September 2015 and the corresponding periods for the years 2012 to 2014 are shown in the following table.
|
Year |
€m |
|
Jan to Sep 2012 |
282.9 |
|
Jan to Sep 2013 |
303.2 |
|
Jan to Sep 2014 |
400.0 |
|
Jan to Sep 2015 |
523.3 |
139. Deputy Finian McGrath asked the Minister for Finance the position regarding a primary medical certificate for a person (details supplied) in County Meath; and if he will make a statement on the matter. [36991/15]
View answerThe Drivers and Passengers with Disabilities (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, assistance with fuel costs, and an exemption from Motor Tax.
As the Deputy is aware, to qualify for the Scheme an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the assistance with fuel costs used by members of the Scheme, the Scheme represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue foregone to the Local Government Fund in respect of the relief from Motor Tax provided to members of the Scheme.
I regularly receive correspondence from individuals with disabilities that do not meet the criteria but who believe they would benefit from the Scheme. While I have sympathy with those who do not qualify for Scheme, I cannot, given the scale and scope of the Scheme, expand the criteria further within the current context of constrained resources.
I understand from the details supplied that the person concerned appealed the decision by the Health Service Executive not to award them a Primary Medical Certificate to the Disabled Drivers Medical Board of Appeal and was unsuccessful in the attempt. A citizen can re-apply for a Primary Medical Certificate after six months if there is deterioration in their condition.
140. Deputy Brendan Griffin asked the Minister for Finance if he will include a proposal (details supplied) in the Finance Bill; and if he will make a statement on the matter. [37000/15]
View answerAlcohol is a controlled substance and any person wishing to sell alcohol requires a licence to do so, either via the on-trade or the off-trade.
Licensed premises have a graduated licence duty fee structure based on turnover, with a total of six bands ranging from €250 to €3,805. The costs of these licences are unchanged since 1992. Overall, the licence fee is a very small percentage of the annual turnover of the business and, as the amount of the fee is linked to the turnover, the cost of the licence reflects the income of the premises. 54% of all licensed premises are only liable for the lowest annual licence fee of €250 while a further 24% only pay €505.
The licence regime differs for the off-trade where there are generally three categories of licence "Wine Retailer's Off Licence"; "Spirit Retailer's Off Licence"; and "Beer Retailer's Off Licence", which can include cider. An off-licence may hold a combination of one, two or all three of these licenses. The current rate of duty payable for renewal of each Off-Licence category currently stands at €500 per category. Therefore, an off-licence wishing to provide all 3 categories of products is liable to an annual fee of €1,500.
It is important to note that the licence fee accounts for the administrative costs associated with the issuing of each licence.
Taking all of the above into consideration, I do not intend to abolish the licence fee for what would be the majority of publicans.
141. Deputy Gabrielle McFadden asked the Minister for Finance his views on concerns expressed (details supplied) regarding any proposal to increase the intermediate industry funding levy by 500%; the consequent impact on small businesses; if this proposal is being discussed; and if he will make a statement on the matter. [37002/15]
View answerEvery year, in order to cover the costs of financial regulation, the Central Bank prescribes levies to be paid by entities subject to such regulation. The Central Bank had briefed industry representatives in August that it was proposing significant increases in those levies in 2015. The proposed increases were driven by a proliferation of legislative regulation and corresponding regulatory activity; a need to meet a shortfall from 2014's levies; and an increase in staff pension costs arising from Financial Reporting Standard 17 (which was coupled with prevailing low yields on the bond market).
The Central Bank's original proposals have since been revised to partially mitigate those increases as per a statement of 30th September 2015 published on the Central Bank's website. The revised proposals significantly reduced the increase in pension costs charged to the regulated sector in 2015 which is instead spread over coming years thereby easing the burden on financial services sector firms this year.
It is important to note that a robust regulatory environment benefits the financial services industry by promoting stability, a level playing field and facilitating prudent development and innovation. A well regulated financial services sector also benefits consumers, industry, and the economy at large. In order to ensure a well regulated financial services sector the Central Bank must be sufficiently resourced, particularly in terms of staff who are key to an effective regulatory regime. Pensions are a standard component in financial regulation costs given their link to staff costs.
Under Section 32D of the Central Bank Act 1942, the Central Bank is required to seek my approval for the Regulations prescribing industry levies. As part of that process officials from my Department met with industry representatives in order to hear their concerns on the increase in levies payable by their members. Following the publication of the Central Bank's revised proposals, which significantly reduced the pension element of the 2015 levies, I approved the Regulations prescribing the 2015 levies on 7 October last.
142. Deputy Bernard J. Durkan asked the Minister for Finance the correct tax credit entitlements in the case of a person (details supplied) in County Kildare who is a lone parent with two dependant children, who recently completed a part-time employment with the Irish Wheelchair Association, who took on permanent employment with a nursing home but finds that after income deductions the family is in a worse financial situation; and if he will make a statement on the matter. [37097/15]
View answerI am advised by the Revenue Commissioners that, following notification to them of a change in employment rather than the start of an additional employment by the person concerned, an amended tax credit certificate will issue shortly to the person concerned and to their new employer. This certificate will reflect the tax credits, including the single person child carer credit, to which she is entitled. Any overpayment of tax that may have been deducted for this year will be refunded by the new employer to the person concerned.
143. Deputy Joanna Tuffy asked the Minister for Finance further to Parliamentary Question No. 51 of 13 October 2015, the percentage of the tax yield from incomes of less than €30,000 in 2016, under the terms of budget 2016; if he will indicate if a flat tax of 23% applied, assuming removal of all income tax credits and the percentage of income earners that earn less than €30,000. [37122/15]
View answerI am informed by the Revenue Commissioners that an estimated 51% of income earners on Revenue records have gross income of €30,000 or less and these cases would contribute an estimated 20.4% of the total tax yield were a 23% flat tax implemented. Post Budget 2016, it is estimated that this group will pay 4.2% of total combined income tax and USC in 2016.
For the purposes of these estimates, it is assumed that the 23% flat rate would replace the post-Budget 2016 income tax structure (including the Universal Social Charge) and that all income tax credits would be removed, including the PAYE, Personal and Home Carer credits.
These figures are based on estimates for 2016, using the actual data for the year 2013 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
144. Deputy Michael McGrath asked the Minister for Finance following budget 2016, the cost of increasing the standard tax band for, a single person; a married-civil partnership couple, by €1,000; €2,000; €5,000; €6,200; and if he will make a statement on the matter. [37131/15]
View answer145. Deputy Michael McGrath asked the Minister for Finance following budget 2016, the cost of increasing the standard tax band for a married-civil partnership couple, with one earner, by €1,000; €2,000; €5,000; and if he will make a statement on the matter. [37132/15]
View answerI propose to take Questions Nos. 144 and 145 together.
I am informed by the Revenue Commissioners that a Post-Budget 2016 Ready Reckoner is now available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf. This Ready Reckoner shows a wide range of information, including the costs of increasing the standard rate tax band. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata (or straight-line) basis with those displayed in the Reckoner.
All figures included in the Ready Reckoner are estimates for 2016, using the actual data for the year 2013 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
146. Deputy Michael McGrath asked the Minister for Finance if an estimate has been made of the available fiscal space for budget 2017 and budget 2018, based on current information; and if he will make a statement on the matter. [37134/15]
View answerEstimates of the gross and net fiscal space for the period 2017 to 2021 can be found in Tables A8 and A9 on pages C.50 and C.51 of the Budget 2016 book. The estimated net fiscal space available for 2017 is €0.5 billion and 2018 is €1.1 billion.
Table A9 shows the walk from gross fiscal space to net fiscal space. The former is simply the permitted fiscal space arising from applying the estimated growth rate permitted under the expenditure benchmark to the 2016 expenditure aggregate. These amounts are not final and are estimates based on the GDP deflators, benchmark reference rates and convergence margins forecast for each of the years in Budget 2016. The actual deflator, reference rate and margin values used by the Commission to assess compliance with the rules each year beyond 2016 will be based on Commission estimates as set out in their forecasts in each relevant year.
The net fiscal space takes account of expenditure projections as set out in Table 10 on page C.22 of the Budget book. These include the annual cost of providing for demographic spending pressures together with a number of other anticipated elements such as the Public Capital Plan, the cost of the Lansdowne Road Agreement and a number of other calls on the Central Fund. The estimated cost of indexing the tax system is included in tax revenue forecasts in Table 10. The additional revenue that could be generated from a decision not to proceed with indexation is included as an option in the discretionary revenue measure line in Table A9. This will be a matter for decision by the Government of the day.
These available amounts of fiscal space could potentially be used by the government in power to reduce the debt, to fund tax reductions or to finance spending increases.
147. Deputy Dan Neville asked the Minister for Public Expenditure and Reform if an appeal with the Valuation Office will be lodged on behalf of a person (details supplied) in County Limerick; and if he will make a statement on the matter. [37089/15]
View answerAs part of the revaluation of all rateable property in the Limerick City and County council area conducted in 2014, a proposed valuation of €3,960 was placed on the subject property by the Valuation Office, and a notice to this effect dated 10th June 2014 issued to the occupier. The notice advised him that if he was dissatisfied with the proposed valuation or with any other particular stated in the Proposed Valuation Certificate that he had a right to make representations to the Valuation Manager within 28 days. No such representations were received. A final Certificate of Valuation was issued to the occupier on 11th December 2014 informing him that if he was dissatisfied with the valuation of €3,960 or with any particular on the Certificate, he had a statutory right of appeal to the Commissioner of Valuation. The occupier did not exercise his right of appeal.
The Commissioner of Valuation is independent in the exercise of his duties under the Valuation Acts 2001 to 2015 and the making of valuations for rating purposes is his sole prerogative as provided by those Acts. The statutes do not accord me, as Minister, any function in this regard. The Valuation Office has no authority under the legislation to give further consideration to the valuation of the subject property. The position for all occupiers of property is that once a valuation is fixed on a property it can only be altered where a "material change of circumstances" has taken place. This is defined in the Valuation Acts, 2001 to 2015, as a change of circumstances, which consist of a new building, a change in value to an existing building due to structural alterations to that building, total or partial demolition of a building or a sub-division or amalgamation of a relevant property.
