Written Answers Nos. 180-189
180. Deputy Michael McGrath asked the Minister for Finance the reason expected receipts for corporation tax in October 2015 were profiled in the Exchequer returns as minus €3 million; his views on the sustainability of current strong corporation tax receipts; and if he will make a statement on the matter. [39187/15]
View answerAs the Deputy will appreciate, the Exchequer Returns profiles are generally prepared in early January and reflect the Budget day forecasts. The rationale for the minus €3 million profiled for October was that repayments expected in October were expected to be slightly bigger than forecast collection. These repayments had been identified to the Revenue Commissioners when the profiles were being produced. However, the repayments did not materialise as expected. This was just part of the reason for the very strong over-performance recorded in October.
There were also unexpected payments amounting to €350 million from a number of large companies due to better trading conditions and a number of early payments which were expected in November and December totalling €200 million.
As the Deputy will be aware, corporation tax receipts are highly concentrated in the multinational sector. However, it is important to point out that strong performance recorded in corporation tax receipts this year is relatively broad based. For example, there has been an increase of over 20 per cent in the number of companies paying between €100,000 and €1 million. In addition, there has been an increase of over 20 per cent in the amount of tax paid by medium sized companies.
In terms of the sustainability of the current strong corporation tax receipts, I am advised by the Revenue Commissioners that the level of corporation tax payments in 2015 are primarily not one-off. That is, they enter the revenue base for 2016 and beyond. Importantly, from a fiscal perspective, the corporation tax forecasts for 2016 contained in Budget 2016 shows a reversion towards growth in line with gross operating surplus, at about 8 per cent. This lends confidence to the achievement of the corporation tax forecast for 2016.
181. Deputy Michael McGrath asked the Minister for Finance the number of audits the Revenue Commissioners carried out in respect of self-employed contractors, including those who operate through a company structure, in 2013, in 2014 and in 2015 to date; the profile of those contractors by sector; the number of completed audits where the Revenue Commissioners calculated that additional tax was due to the State; the amount of tax, interest and penalties calculated as being due; details, including numbers, of the Revenue Commissioners' plans to continue to focus on this area in 2016; and if he will make a statement on the matter. [39324/15]
View answerIt is assumed that the Deputy is referring to the National Contractors' Project being run by the Revenue Commissioners.
Revenue has provided the following data in relation to this project:
|
Year |
No of Company Audits |
No of individual (Director) Audits |
Tax |
Interest |
Penalties |
|
2013 |
200 |
129 |
€3,068,499 |
€821,856 |
€976,010 |
|
2014 |
428 |
321 |
€6,693,637 |
€1,930,190 |
€1,814,793 |
|
2015 (to 22/10/2015) |
81 |
65 |
€1,550,458 |
€442,695 |
€394,076 |
|
Totals |
709 (of which 551 yielded) |
515 (of which 101 yielded) |
€11,312,594 |
€3,194,741 |
€3,184,879 |
|
Sectors |
Engineering |
Sch E Directors |
Management Consultancy |
Computer Consultancy |
Other categories |
|
- |
43.8% |
18.9% |
8.3% |
5.9% |
23.1% |
I am advised by Revenue that they expect to bring the remaining audits in the National Contractors' Project to a conclusion by the end of 2016.
The rules in Revenue's risk analysis system (REAP) have been updated to take account of the results of the National Contractors Project and will be further updated, as necessary, in light of the outcome of the remaining audits. I understand from Revenue that it will continue to examine the tax risks arising in the contracting sector in 2016. This will be done on a case by case basis having regard to the matters highlighted through Revenue's risk analysis system. Revenue is not in a position to anticipate at this time the numbers of such cases that may be selected for audit in 2016.
182. Deputy Michael McGrath asked the Minister for Finance the number, and the overall value, of Irish Bank Resolution Corporation's principal dwelling house residential mortgages sold by the special liquidator; the details of each transaction, including the identity of the purchaser; and if he will make a statement on the matter. [39345/15]
View answer183. Deputy Michael McGrath asked the Minister for Finance the number, and the overall value, of Irish Bank Resolution Corporation's buy-to-let mortgages sold by the special liquidator; the details of each transaction, including the identity of the purchaser; and if he will make a statement on the matter. [39346/15]
View answerI propose to take Questions Nos. 182 and 183 together.
As the Deputy is aware, for operational reasons the loan assets of Irish Bank Resolution Corporation Limited (in Special Liquidation) (IBRC) were originally divided into six portfolios: Evergreen, Sand, Rock, Salt, Stone & Pebble.
The Sand portfolio comprised 12,702 Irish originated residential mortgages with a par value of €1.8bn, most of which had transferred from Irish Nationwide Building Society. In the first sales process, 64% of the Sand portfolio was sold to two buyers, namely Lone Star and Oaktree Capital Management, L.P.
Following instructions from the Minister for Finance, NAMA were no longer obliged to purchase the unsold IBRC assets at their individual valuation as previously envisaged, as the expected proceeds to be raised from the sale of the IBRC loan assets were to be sufficient to fully repay the IBRC debt to NAMA.
As a result, the Special Liquidators devised a further sales process in respect of the unsold residential mortgages (Project Pearl) so as to maximise the return to all remaining creditors of IBRC, including the State. Having given due consideration to the representations made by residential mortgage holders of IBRC and the professional advice received, the Special Liquidators divided the remaining residential mortgages into two tranches (Pearl Tranche 1 and Pearl Tranche 2). These two tranches were sold to The Governor and Company of the Bank of Ireland, Mars Capital No. 3 Limited and Mars Capital No. 4 Limited.
I am advised by the Special Liquidators that principal dwelling mortgages accounted for 83% of the IBRC mortgages sold in the Special Liquidation while buy to let mortgages accounted for 17% of the IBRC mortgages sold in the Special Liquidation.
184. Deputy Robert Dowds asked the Minister for Finance further to Parliamentary Question No. 286 of 3 November 2015, the reason a deceased foreign person who never held Irish citizenship and left a legacy to a resident here must be given a personal public service number; and if he will ensure it is made easier for such an Irish relative to declare the gift for tax purposes. [39372/15]
View answerMy replies to Questions Nos. 286 on 3 November 2015 and 87 on 5 November 2015, previously tabled by the Deputy, explained that the requirement that a Personal Public Service Number (PPSN) be provided in respect of a deceased disponer ensures that the aggregation of gifts and inheritances, as required for the calculation of Capital Acquisitions Tax liabilities, is correctly dealt with. This ensures that any reliefs due are correctly applied and the correct amount of tax is paid by the beneficiary on any benefits taken. I am further advised that the PPSN requirement is a long-standing one and is part of the process of administering an estate and distributing the relevant assets.
In my reply to Question number 286 I also provided contact details for the relevant section in the Department of Social Protection that is responsible for issuing PPSNs including any cases involving non-residents. Revenue's National CAT Helpline, which can be contacted at 1890 201104 (or +353 1 7023048 , if calling from abroad), is also available to provide any assistance.
185. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland has a policy on whether bank ATMs should dispense €10 notes to customers; if he will confirm the practice of retail banks regarding the dispensing of €10 notes; the policy as to whether the use of €20 notes or €50 notes is preferred where an amount of €100, for example, is required; and if he will make a statement on the matter. [39374/15]
View answerI am informed by the Central Bank that a recommendation contained in the National Payments Plan targeted a significant increase in the number of €10 notes dispensed from ATMs. Targets were designed in order to increase the proportion of €10 notes in circulation with a view to making lower denomination notes available.
The specific targets contained in the National Payments Plan were for a minimum of 4% of all notes by volume distributed from non-retailer ATMs to be €10 notes from Q3 2013; and 5% of all notes by volume to be €10 notes from Q3 2014. This second target represented an increase of around 150% in the number of €10 notes dispensed from ATMs previously. These targets were met by the banks on the dates set, as part of their commitment to the broader goal of improving the efficiency of payments in the National Payments Plan.
Building on the recommendations in the National Payments Plan, the Central Bank has now set targets for the banks to achieve in terms of issuance of €10, €20 and €50 notes from ATMs by 2018. These targets were calculated following a study of the requirements of consumers given patterns of cash usage.
The targets are that 6-10% of all notes by volume are to be €10 notes by the end of 2018, 40-45% of all notes by volume are to be €20 notes and 45-50% of all notes by volume are to be €50 notes. The latest available data, for Q3 2015, on amounts actually dispensed shows that 6% of all notes are €10 notes, 36% of all notes are €20 notes and 58% of all notes are €50 notes.
The Central Bank is working, in co-operation with the commercial banks, towards these targets. This topic is a permanent agenda item at the National Cash Forum which is chaired by the Central Bank, and is also discussed at bilateral meetings with banks by the Central Bank.
186. Deputy Michael McGrath asked the Minister for Finance if a PAYE tax credit is available to a married couple where a qualified adult dependant payment is paid directly to the qualified adult in respect of that adult's spouse's State pension (contributory) or State pension (non-contributory); if it is available to a married couple where a pensioner receives a qualified adult dependant payment as part of a State pension (contributory) or a State pension (non-contributory); and the number of persons in each category. [39382/15]
View answerA PAYE tax credit, as provided for in Section 472 of the Taxes Consolidation Act 1997, is available in both categories outlined by the Deputy. However, regardless of whether the increase in respect of the qualifying adult dependent is paid directly to the pensioner or to the qualifying adult dependent, the pension and the increase together remain one pension for tax purposes. Therefore a second PAYE tax credit is not due in circumstances where the increase in respect of a qualifying adult dependent is paid, regardless of whether it is paid to the pensioner or directly to the adult dependent.
The number of recipients and qualified adult increases in payment at the end of September in respect of State Pension (Non-Contributory) and State Pension (Contributory) is detailed in the attached tabular statement, which was provided to me by my colleague, the Minister for Social Protection.
The Department of Social Protection does not segregate the payments of increases in respect of qualified adults and/or children where they are not paid to the scheme recipient.
Recipients and Qualified Adult Increases in respect of State Pension (Non-Contributory) and State Pension (Contributory) at the end of September 2015
|
Scheme |
Recipients |
Qualified Adults |
|
State Pension (Non-Contributory) |
95,197 |
3,185 |
|
State Pension (Contributory) |
358,215 |
68,314 |
188. Deputy Michael Lowry asked the Minister for Finance if a remission or repayment of vehicle registration tax and value added tax paid may be claimed in respect of the purchase and adaptation of vehicles for use by an organisation for the transport of severely and permanently disabled persons (details supplied) under the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994; if he will examine this case, given that many of the persons transported by this organisation are immobile and confined to wheelchairs; the steps an organisation should take if future problems are encountered with the Revenue Commissioners; and if he will make a statement on the matter. [39396/15]
View answerRegulation 12 of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) provides that a qualifying organisation may, under the conditions contained therein, receive remission or repayment of Vehicle Registration Tax (VRT) and VAT. Regulation (2)(1) of S.I. 353 of 1994 provides that a qualifying organisation means a philanthropic organisation which is not funded primarily by the State and which is chiefly engaged, in a voluntary capacity on a non-commercial basis, in the care and transport of severely and permanently disabled persons.
Regulation 3 of S.I. 353 of 1994 provides for the criteria which shall determine whether a person is a severely and permanently disabled person under S.I. 353 of 1994. These medical criteria are that a person must:
1. be wholly or almost wholly without the use of both legs;
2. be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
3. be without both hands or without both arms;
4. be without one or both legs;
5. be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
6. have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
I am advised by Revenue that the organisation concerned made an application to them on 20 August 2015. The work carried on by the organisation was described in the application as a "Day Care Centre for the elderly". The seating capacity of the vehicle was stated to be 14, with one seat provided for a person with a disability. The application was refused on 23 September 2015 on the basis that the organisation was deemed not to be chiefly engaged in the care and transport of severely and permanently disabled persons in accordance with the requirements set out in Regulation 3 of S.I. 353 of 1994.
I am further advised by Revenue that the organisation concerned lodged an appeal against the refusal decision on 8 October 2015 under Section 145 of Finance Act 2001. The first stage of the appeals process consists of the re-examination of the matter by a senior manager within Revenue who was not involved in the original decision and this is currently underway, with further medical verification having been requested from the organisation. If the organisation is dissatisfied with the outcome of this stage of the appeals process, it may apply, within 30 days of being notified of the appeal decision, to have the case heard by the Appeal Commissioners.
189. Deputy Charlie McConalogue asked the Minister for Finance if a person who has an off-farm PAYE job is eligible for the €500 self-employed tax exemption on farm self-employment income; and if he will make a statement on the matter. [39444/15]
View answerThe Finance Bill 2015 proposes to introduce a new tax credit known as the Earned Income Tax Credit which will, subject to enactment of the Bill, be available for the tax year 2016 and later years.
The tax credit, which is capped at €550, is available in respect of an individual's earned income other than earned income that already qualifies for the Employee (PAYE) Tax Credit. As such, farm self-employment income which arises from a trade qualifies as earned income for the purposes of the new Earned Income Tax Credit.
Where an individual has income that qualifies for the Earned Income Tax Credit and the Employee (PAYE) Tax Credit, the aggregate value of the tax credits is limited to €1,650, which is the maximum amount available for the Employee (PAYE) Tax Credit.
Similarly, an employee with two separate employments is limited to a maximum Employee (PAYE) Tax Credit of €1,650.
