Thursday, 17 Dec 2015

Written Answers Nos. 169-179

Tax Avoidance

Questions (170)

Catherine Murphy

Question:

170. Deputy Catherine Murphy asked the Minister for Finance the process which the Revenue Commissioners has in place for a person who wishes to notify them of tax evasion or any other improper or illegal matter concerning the payment of tax, either anonymously or otherwise; why there is no central national facility in place to enable a person to do this; if leaving the process at local or regional level will allow conflicts to arise given that the reporting person may be known to officials of the Revenue Commissioners, their anonymity may be compromised and this may discourage whistleblowers from coming forward; and if he will make a statement on the matter. [46202/15]

Written answers

Minister for Finance

I am advised by Revenue that such a facility as mentioned by the Deputy is in place. Revenue has a facility on its website that allows a person to report instances of tax evasion.  Information and the reporting form can be accessed through the following link:http://www.revenue.ie/en/business/shadow-economy/reporting.html). Any such report will be followed through by Revenue. The person making the report may remain entirely anonymous if they so wish. Revenue also provides a Confidential Freefone Number: 1800 295 295 through which a person can report drug smuggling or smuggling of any kind and the illegal sale of cigarettes.

Notwithstanding the facility to report tax evasion anonymously, if a person has specific information that s/he wishes to disclose to a Revenue official other than an official in his or her local Revenue office, then appropriate arrangements can be made in that regard by Revenue.

The Director of Internal Audit in the Office of the Revenue Commissioners is also a prescribed person for the purposes of the Protected Disclosure Act 2014 and Statutory Instrument No. 339 of 2014.  The protections available under the Protected Disclosure Act 2014 are available to employees in respect of disclosures made to the Director of Internal Audit of all matters relating to the assessment, collection and management of taxes and duties and the implementation of customs controls.

If the Deputy is aware of a person who wishes to report tax evasion on that basis, the Deputy can advise my officials and arrangements can be subsequently made by Revenue.

Appointments to State Boards Advertisements

Questions (171)

Robert Troy

Question:

171. Deputy Robert Troy asked the Minister for Finance the number of appointments to State boards under the aegis of his Department and the number of appointments that have been advertised on his Department’s website since March 2011; and if he will make a statement on the matter. [46254/15]

Written answers

Minister for Finance

In response to the Deputy's query in relation to the the number of appointments to State Boards under the aegis of my Department and the number of appointments that have been advertised on the Department s website, since March 2011, please find details in tabular form. 

I, and my Department are cognisant of the need to adhere to the Department of Public Expenditure and Reform's Guidelines on Appointments to State Boards introduced in late 2014.

Board	Number of Appointments in 2011	Number of Appointments in 2012	Number of Appointments in 2013	Number of Appointments in 2014	Number of Appointments in 2015	Number of appointments advertised on DoF website
Central Bank Commission	1	0	1 re-appointment	1 appointment (filled from advertisement in 2012) 2 re-appointments	1 appointment (incoming Governor appointed on interim basis) 2 re-appointments	An appointment made in 2014 was based on a process advertised on website.  3 press releases on appointments made.
Credit Union Restructuring Board (ReBo)		13				6 (Vacancies for independent members, of which there were 6, were advertised on the websites of the Department of Finance and Public Appointments Service, where expressions of interest were invited from the public)
Financial Services Ombudsman Council	Nil	Nil	6 re-appointments  1 appointment	Nil	7 re-appointments	See note 3 below
Irish Fiscal Advisory Council	5	51	0	0	22	Appointments to the IFAC are made under the Guidelines on Appointments to Stateboards. In line with these guidelines, the vacancies are advertised on the stateboards website
NAMA	-	1	3	2	-	Positions not publicly advertised. Exofficio are not included in this Count
National Treasury Management Agency Members (NTMA Board)	0	0	0	6 (not including ex-officio appointments)	0	6 vacancies were advertised (Only one of these  appointments was made on the basis of application process; the Minister made 5 direct appointments to the Board. As this process was well under way when the Department of Public Expenditure and Reform   procedures regarding Board appointments was being brought in, these appointments were exempted from that process)
National Treasury Management Agency Members (Advisory Committee)*	0	1 (Secretary General of Department of Finance)	2 (1 reappointment, 1 direct appointment by the Minister)	1 (Secretary General of Department of Finance)	0	0
State Claims Agency Policy Committee*	0	4 (1 reappointment) (1 Department of Health representative)	1 (Department of Health representative replacing predecessor appointed in 2012)		0	2 Vacancies Advertised on Department of Public Expenditure and Reform Website
National Development Finance Agency Board*		4 (1 Reappointment CEO of NDFA to the Board) (Secretary General of the Department of Public Expenditure and Reform Appointed)	0	0	0	3 Vacancies advertised on Department of Public Expenditure and Reform Website
National Pensions Reserve Fund Commission*	0	1 (reappointment)	0	1 (reappointment)	0	0
Strategic Banking Corporation of Ireland				3	94	0 - All vacancies filled in 2015 were advertised on the State Boards website

1The 5 members of the Fiscal Council, including the Chairperson, were appointed on an administrative basis when the Council was established on a non-statutory basis in July 2011. These 5 members were re-appointed in December 2012 when the Council was put on a statutory footing.

22 appointments were made in 2015, 1 to fill a vacancy which resulted from the ending of the term of a Council Member and 1 following the resignation of a further Council Member. 

3In view of the short term of the Council and the amalgamation of the Offices of the Pension Ombudsman and the Financial Services Ombudsman which will require the experience of the existing Council to effect, these positions were not advertised.  The appointment of an additional person with specific legal qualifications and experience was also required in 2013.

4For the SBCI three of the nine appointments in 2015 were reappointments

*Statutory Instrument 586 of 2014, effective 22 December 2014, reconstituted the Agency and dissolved the NTMA Advisory Committee and the State Claims Policy Committee. An order was signed by the Minister for Finance on 23 January 2015 which dissolved the Board of the National Development Finance Agency. Under transitional provisions, pending the transfer of all NPRF assets and liabilities to the Ireland Strategic Investment Fund, the National Pensions Reserve Fund Commission will consist of one Member, the Chief Executive of the NTMA.

Appointments to State Boards

Questions (172)

Robert Troy

Question:

172. Deputy Robert Troy asked the Minister for Finance the number of chairpersons appointed to State boards under the aegis of his Department who have appeared before the relevant Oireachtas joint committee since March 2011; and if he will make a statement on the matter. [46269/15]

Written answers

Minister for Finance

In reply to the Deputy's question, please see listed as follows details of the chairpersons appointed to State Boards under the aegis of the Department (the Central Bank, Irish Fiscal Advisory Council, and National Asset Management Agency) who have appeared before the relevant Joint Oireachtas Committee, since March 2011.

The Central Bank:

While appointed before March 2011, the outgoing Chair of the Central Bank Commission appeared before the relevant Joint Oireachtas Committee during that timeframe.

Irish Fiscal Advisory Council:

The Chairperson of the Irish Fiscal Advisory Council was appointed on an administrative basis when the Council was established on a non-statutory basis in July 2011. The IFAC was put on a statutory footing on 31 December 2012, and the Chairperson was re-appointed for a four-year term from that date. The Chairperson has appeared nine times before the Joint Oireachtas Committee on Finance and Public Expenditure and Reform. He has also appeared before the Joint Committee on European Affairs on one occasion.

National Asset Management Agency:

NAMA Chairman Frank Daly has appeared before the following committee(s) since 2011:

1. Joint Committee on Finance, Public Expenditure and Reform - 9th September 2011

2. Public Accounts Committee - 26th October 2011

3. Joint Committee on the Implementation of the Good Friday Agreement 8th March 2012

4. Joint Committee on Finance, Public Expenditure and Reform - 14th March 2012

5. Public Accounts Committee - 5th July 2012

6. Joint Committee on Finance, Public Expenditure and Reform - 24th October 2012

7. Public Accounts Committee - 26th September 2013

8. Public Accounts Committee - 20th December 2013

9. Public Accounts Committee - 29th May 2014

10.Joint Committee on Finance, Public Expenditure and Reform - 22nd October 2014

11. Public Accounts Committee - 18th December 2014

12. Joint Committee of Inquiry into the Banking Crisis - 22nd April 2015

13. Public Accounts Committee - 9th July 2015

14. Public Accounts Committee - 1st October 2015

15. Joint Committee on Finance, Public Expenditure and  Reform - 16th December 2015.

Commencement of Legislation

Questions (173)

Seán Ó Fearghaíl

Question:

173. Deputy Seán Ó Fearghaíl asked the Minister for Finance the details of the Acts currently in force for which he has lead responsibility that have Parts or sections yet to be formally commenced, including the purpose of same, in tabular form; and if he will make a statement on the matter. [46284/15]

Written answers

Minister for Finance

It has not been possible to collate the information requested in the time available. However the requested information will be collated and forwarded to the Deputy in writing.

Living Wage Introduction

Questions (174)

Dara Calleary

Question:

174. Deputy Dara Calleary asked the Minister for Finance the cost of implementing a living wage of €11.50 for all employees directly employed or in agencies funded by his Department; and if he will make a statement on the matter. [46406/15]

Written answers

Minister for Finance

I wish to advise the Deputy that based on the gross hours per week of 43.25 hours 16 of my staff are currently earning less than €11.50 an hour. If these salaries were raised to a minimum threshold of €11.50 an hour then the total additional cost to my Department per annum would be €62,670.63.

In relation to employees employed in agencies funded by my Department, there would be no additional cost if a minimum threshold of €11.50 was implemented.

I can confirm that my Department adheres to all appropriate current wage legislation. As the Deputy is aware, following the outcome of the recent considerations by the Low Pay Commission, the statutory minimum wage rate will increase from the current rate of €8.65 to €9.15 per hour with effect from 1 January 2016. All of the 16 staff aforementioned are currently earning an hourly rate above this new statutory minimum wage.

Black Economy

Questions (175)

Dara Calleary

Question:

175. Deputy Dara Calleary asked the Minister for Finance the steps he has taken to reduce shadow economy activity and to increase electronic payment transactions to counter such activity; if he has set targets for increased electronic payment transactions; the cost of meeting such targets; and if he will make a statement on the matter [46418/15]

Written answers

Minister for Finance

Individuals and businesses that operate within the shadow economy gain an unfair competitive advantage compared to legitimate, tax compliant businesses and deprive the Exchequer of much needed revenues.  The Deputy will be aware that I have introduced a number of legislative measures in recent years aimed at countering the effects of shadow economy activity.  These include:

- the licensing regime for auto fuel traders which was strengthened to limit the ability of criminals to get laundered fuel onto the market;

- a new licensing regime for marked fuel traders which is designed to limit the ability of criminals to source marked fuel for laundering;

- requirements in relation to fuel traders' records of stock movements and fuel deliveries to ensure data is available to Revenue to assist in supply chain analysis;

- a 'reckless trading' provision that makes a supplier who is reckless in supplying rebated fuel for a use connected with excise fraud liable for the duty evaded;

- the Home Renovation Incentive the aim of which is to support tax compliant building contractors by moving activity out of the shadow economy into the legitimate economy. I have also extended the scheme in the recent Budget to include owners of rental properties who are subject to income tax;

- a range of amendments in the recent Finance Bill (2015), to give Revenue extended powers to obtain information from financial institutions and other third parties.

I am advised that Revenue has a facility on its website that allows a person to report instances of tax evasion.  Information and the reporting form can be accessed through the following link:  http://www.revenue.ie/en/business/shadow-economy/reporting.html. Any such report will be followed through by Revenue. Revenue is a fully integrated tax and customs administration currently has approximately 2,000 staff countrywide engaged on activities that are dedicated to targeting and confronting non-compliance, in all its forms. These activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection.  Over the last few years a number of measures have been implemented to tackle Ireland's high level of cash usage. The latest of these were contained in the Budget 2016 speech where I set out two important reforms to incentivise debit card usage over cash. The first was a reform of Stamp Duty, which changed it from a 'per-card' Stamp Duty currently levied into a 'per-ATM withdrawal' levy.  I also announced a reduction in the so-called interchange fees paid by retailers every time they accept a debit or credit card.  Since 2006 usage of debit cards has quadrupled in volume and trebled in value to almost €20bn last year.  The additional measures announced in the Budget are likely to accelerate card usage still further.

Tax Credits

Questions (176)

Dara Calleary

Question:

176. Deputy Dara Calleary asked the Minister for Finance the cost of extending the new self-employed tax credit introduced in budget 2016 to the 173,000 self-employed persons who will miss out and to persons omitted to an amount equal to the pay as you earn credit over a three-year period; if this will encourage entrepreneurism; and if he will make a statement on the matter. [46421/15]

Written answers

Minister for Finance

As the Deputy will be aware, the Earned Income Credit (EIC) of €550 for self-employed persons introduced in Budget 2016 will be available to an estimated 111,600 persons.  The EIC is available to taxpayers with active self-employed trading or professional income, and to business owner-managers who do not have access to the PAYE credit on salary income from their business. 

The figure of 173,000 quoted by the Deputy appears to be the difference between figures provided in answers to different Parliamentary Questions in relation to the number of persons that might benefit from the possible introduction of a tax credit similar to the PAYE credit for self-assessed persons.

One such estimate referred to a figure of 284,600 persons who might benefit from an extension of the PAYE Credit to all self-employed cases, including cases subject to tax under Schedule D, proprietary directors and assisting spouses and individuals whose primary income consists of investment income.  This estimate included cases classed as self-employed where most of their gross income is non-PAYE. It is estimated based on 2013 records that some 65% of individuals with income from a self-employed trade or profession are also in receipt of PAYE income, and would therefore already be availing of the PAYE credit.

111,600 persons are expected to benefit from the EIC as introduced in Budget 2016.  This credit was specifically designed to benefit self-employed individuals who have an active trade or profession, and who do not have any other income that would generate an entitlement to the PAYE credit.

It should be noted that where a person has both employment and self-employment income, a claim can be made for both credits, but the maximum total credit value available to each taxpayer is €1,650.  This is in line with the functioning of the existing PAYE credit; employees who work in two different employments are not entitled to claim two PAYE credits, for example.

Therefore all self-employed persons with an active trade or profession, who do not have access to the PAYE credit, should be in a position to claim the EIC in 2016.

I am informed by the Revenue Commissioners that the cost to the Exchequer of extending the EIC to other self-assessed persons who do not currently qualify for the credit, including those who already have access to a PAYE credit, is in the order of €95 million, and the additional cost to further extend this credit to €1,650 (level of the current PAYE credit) is estimated to be €313 million.

It is not clear the basis on which the Deputy is querying the extension of the credit over three years, therefore the cost presented is the estimate for making the change in one year.

It should also be noted that this estimate does not take into account the ability of the credit to be fully absorbed.

Tax Code

Questions (177)

Dara Calleary

Question:

177. Deputy Dara Calleary asked the Minister for Finance if he has examined adjusting the online betting duty level and the tax yield that would be raised by adjusting the duty to 1.5%, 2% and 2.5%. [46426/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the estimated annual duty from online betting at the rates quoted is as outlined in the table.

The deputy will be aware that the provision only commenced in August 2015, so full year amounts are still estimated.

Rate	€m
1.5%	27
2.0%	36
2.5%	45

Flood Relief Schemes Status

Questions (178)

Michael McGrath

Question:

178. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the position regarding the planned flood relief scheme in Cork city, including the timeline for its delivery and the funding committed; and if he will make a statement on the matter. [45826/15]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The Lower Lee (Cork City) Flood Relief Scheme is at design stage with the outline design expected to be completed in the next few months. At the same time, an Environmental Impact Statement will be completed. It is expected that this will allow the holding of a formal public exhibition in mid 2016 following which work on the detailed design will be progressed with the aim of enabling the Office of Public Works (OPW) to submit the Scheme for Ministerial Confirmation under the Arterial Drainage Acts as early as possible in 2017.

Subject to the Scheme being Confirmed the OPW will aim to appoint a civil works contractor and commence construction within a short period thereafter. Due to the likely scale of the proposed Scheme, it is possible that the Scheme will be undertaken on a phased basis under a number of contracts. The design consultants have commenced work on a Phasing Report which will assist a structured implementation of the Scheme. This will be a very significant scheme with commensurate costs and it is anticipated that the works will take at least 4-5 years to complete.

Both the OPW and Cork City Council are anxious that works would commence at the earliest possible date and investigations are underway to see if some advance works could be undertaken by the City Council under its own powers. Should this prove possible, then funding would be provided to the Council by OPW to enable it to progress such works in late 2016.

As the outline design for Blackpool has been completed it has been decided to separate this and make it a Scheme in its own right. The proposals for Blackpool are currently on public exhibition and subject to a successful exhibition it is hoped to complete the detailed design of the Scheme there and proceed to the tender process for a civil works contractor in mid 2016. The scheme would also be sent for Confirmation to the Minister for Public Expenditure and Reform at the same time and subject to no issues arising, a contractor could be appointed before the end of 2016.

The Government remains fully committed to the provision of a flood relief scheme for the people of Cork City and the OPW has made provision for the cost of implementing both schemes in its Multi Annual Budget Profiles over the period 2016-2021.

Flood Prevention Measures

Questions (179)

Brendan Griffin

Question:

179. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will introduce a grant scheme to facilitate the provision of flood defence mechanisms for householders and business persons at risk of flood damage, such as flood gates, flood doors, sewerage valves and so on; his views that these mechanisms would have spared many businesses and households from the recent floods if they had been in place; and if he will make a statement on the matter. [45877/15]

Written answers

Minister of State at the Department of Public Expenditure and Reform

In May of this year the Office of Public Works (OPW) approved funding to Kilkenny County Council to commission consultants to undertake a study and provide a report with recommendations on the feasibility of implementing individual property protection measures in certain areas in that county. I understand that tenders are due back in Kilkenny County Council shortly. It is envisaged that the study may be used as the basis for similar studies in other locations in the country and inform whether and how such measures might be provided in the future.

In July 2015 I reconvened the Interdepartmental Flood Policy Co-ordination Group to report to Government by Spring 2016 on possible non structural measure that can support the Flood Risk Management Plans being developed by the OPW under its Catchment Flood Risk Assessment and Management (CFRAM) Programme.

This Whole of Government approach to Flood Risk Management is actively considering all possible measures, including individual property protection, that can feasibly support communities, households and businesses, to protect and mitigate their properties from flood risks.

OPW's “Plan Prepare Protect” booklet contains information on flood protection measures for householders and businesses and further information is also available on www.flooding.ie.