Written Answers Nos. 50-60
50. Deputy Joanna Tuffy asked the Tánaiste and Minister for Social Protection the status of the regulations contained in statutory instrument SI 596 of 2015 including the issues they address; and if she will make a statement on the matter. [2506/16]
View answerThe State pension contributory is a very valuable benefit and is the bedrock of the Irish pension system. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating pension entitlement. Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes. The total reckonable contributions paid or credited are divided by the duration of the period from that date to pension age, and the average produced is a factor in the rate of entitlement. For example, if someone entered insurable employment 45 years before pension age, and had a total of 1,800 reckonable contributions, their yearly average would be 40 contributions (i.e. 1,800 divided by 45).
Under this yearly average system, the homemaker’s scheme makes qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person’s social insurance record is being averaged for pension purposes. By disregarding these periods, the duration of the working life is reduced under the ‘yearly average’ calculation, thereby making the yearly average higher, as total contributions are divided by a small number.
The homemaker’s scheme is expected to be in place until the system is changed to a total contributions approach, which is under consideration for introduction from 2020. In this context, the deadline for applications to the homemaker’s scheme has been extended on a number of occasions – most recently in 2013 (SI 596 of 2015 refers). It was therefore decided that the period for which retrospective applications for the homemaker’s scheme be allowed be extended again, to allow further people make backdated claims to this scheme while the yearly average system is in place.
On this occasion, given that the total contributions approach reform is scheduled to be in place by 2020, it was decided that the extension for applications is to 31 December 2020, for periods up to 31 December 2019.
51. Deputy Bobby Aylward asked the Tánaiste and Minister for Social Protection to expedite an application by a person (details supplied) in County Kilkenny under the carer's allowance scheme; and if she will make a statement on the matter. [2508/16]
View answerI confirm that the department received an application for carer's allowance from the person concerned on 16 November 2015. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.
52. Deputy Patrick O'Donovan asked the Minister for Finance why the processing of a claim for a fuel rebate for a person (details supplied) in County Wexford will be delayed as it was not submitted online; and if he will make a statement on the matter. [2419/16]
View answerI am advised by Revenue that applications under the Disabled Driver and Passenger Fuel Grant Scheme can be made using the myAccount facility on the Revenue website, www.revenue.ie. This is one of a range of self-service facilities available from Revenue to enable taxpayers make their claims and have them processed and paid in the most efficient, speedy and cost-effective manner. Paper claims under the scheme can be made to Revenue but processing of claims is slower compared to the online service.
I am further advised by Revenue that the person concerned submitted a paper claim on 4 January 2016 for the year 2015. Following contact between the person concerned and Revenue an online application was made on 12 January. The claim has been processed and payment will be made into the nominated bank account person concerned very shortly.
It may be useful to provide some background on the broader fuel grant. From 1969 to 2014, the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provided for the repayment of excise duty on fuel used by beneficiaries of the Scheme. Following a judgment of the Court of Justice of the European Union of April 2013, the repayment of excise element of the Scheme was found to be incompatible with the Energy Tax Directive. Following negotiations with the European Commission it was agreed that the repayment of excise duty should be discontinued as of 31 December 2014.
As I stated in March 2014, to ensure that no beneficiary of the Scheme lost out as a result of the Court's ruling, I decided to introduce a new fuel grant effective from 1 January 2015. Section 81 of the Finance Act 2015 provided for the making of regulations to govern the operation of the fuel grant, which I subsequently made through the Disabled Drivers and Disabled Passengers Fuel Grant Regulations (S.I. No. 635 of 2015). The Revenue Commissioners are processing fuel grant applications and my Department is making the payments to beneficiaries.
The Fuel Grant is paid at the same rate as the rates for repayment of excise duty on fuel. Accordingly, I have maintained the rate for petrol at €0.59 per litre, the rate for diesel at €0.48 per litre, and the rate for liquefied petroleum gas at €0.10 per litres.
This fuel grant maintains the previous practice of paying the sum 12 months in arrears, so that the Revenue Commissions have begun processing applications on behalf of my Department from 1 January 2016. With the assistance of the Revenue Commissioners, a number of improvements have been made to the administration of the Scheme. Beneficiaries are now able to apply for the fuel grant online on the Revenue website through the 'myAccount' feature. Revenue will process the applications for my Department, and my Department shall make the payment directly to the beneficiaries' bank or credit union account.
Officials from my Department and officials from the Office of the Revenue Commissioners are in regular contact with the Irish Wheelchair Association and the Disabled Drivers Association, who represent many of the beneficiaries of the Scheme. Both organisations have been kept informed of developments as regards the fuel grant.
On 14 October 2015, my Department wrote to beneficiaries of the Scheme informing them of the changes to the fuel grant, and informing them that they can logon to the 'myAccount' feature of the Revenue website from 1 January 2016 and claim the grant. My Department also informed beneficiaries that they may continue to receive the grant using a paper form if required.
53. Deputy Michael McGrath asked the Minister for Finance the background to the 3% stamp duty that applies to all non-life insurance policies; the amount that has been collected to date in respect of the stamp duty; the anticipated yield in 2016; how this money is spent; if he will ring-fence the funding for flood-related measures; and if he will make a statement on the matter. [2424/16]
View answerSection 125 of the Stamp Duties Consolidation Act 1999 provides for a levy of 3% on the gross amount received by an insurer in the form of premiums paid in respect of non-life policies covering risks which are located in the State. This levy applies to most non-life insurance premiums with the exception of re-insurance, voluntary health insurance, marine, aviation and transit insurance, export credit insurance and certain dental insurance contracts.
The levy was originally introduced in 1982 at a rate of 1% of chargeable premiums. The rate was increased to 2% in the Finance Act 1993 and to the current rate of 3% in the Finance Act 2009. The proceeds of the levy on non-life insurance form a part of general stamp duty receipts and are paid into the Central Fund along with other tax receipts.
I am advised by the Revenue Commissioners that the available data on amounts collected to date in respect of the stamp duty levy on non-life insurance policies are set out in the following table.
|
Year |
Yield €m |
|
2015 |
108.05 (Provisional) |
|
2014 |
103.35 |
|
2013 |
98.73 |
|
2012 |
104.16 |
|
2011 |
106.40 |
|
2010 |
109.47 |
|
2009 |
86.39 |
|
2008 |
80.10 |
|
2007 |
85.36 |
|
2006 |
88.28 |
|
2005 |
90.8 |
|
2004 |
97.7 |
|
2003 |
99.7 |
|
2002 |
87.2 |
|
2001 |
69.1 |
I am further advised that the anticipated yield in 2016 is in the region of €116.05 million.
I am generally not in favour of the hypothecation of taxes as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
54. Deputy Tom Fleming asked the Minister for Finance when property tax is due on a newly-built house inhabited by a family (details supplied) in County Kerry in January 2016 which was uninhabitable before that date; and if he will make a statement on the matter. [2451/16]
View answerI am advised by Revenue that any property that is in use as, or that is suitable for use as, a dwelling house is subject to Local Property Tax (LPT).
For LPT purposes, the state of dereliction of a property is not relevant where it (the property) is actually occupied as a dwelling house. However, a property that is derelict to such an extent that it is not suitable for occupation (and not actually occupied) is not taxable.
While it is not possible to provide a prescriptive set of criterion for derelict properties, Revenue advises property owners as a general rule to take account of the structure of the building including whether it has a roof, windows and sanitary facilities. However the lack of utilities such as water or electricity does not necessarily mean a residential property can be regarded as derelict.
Because LPT is a self-assessed tax, it is up to the property owner to calculate the correct valuation/liability for the property or decide that it is not liable on the basis of being derelict or uninhabitable. Where a property owner considers that a property is uninhabitable the onus is on him/her to inform Revenue in this regard and supporting documentation to back up this opinion may be requested.
Where a derelict property is subsequently renovated to a habitable level, it becomes a 'relevant residential' property for LPT and is liable from the following 'valuation period'. For example, if a property is renovated between 1 May 2013 and 1 November 2019 (the current 'valuation period') then it becomes liable for LPT from 1 January 2020 onwards.
In regard to the specific case mentioned by the Deputy, the persons in question filed the statutory LPT Return in 2013 and have made payments as required for the various tax years since. Revenue has no record of any queries or contacts from the persons in regard to the status of the property for LPT purposes.
Revenue has confirmed to me that it is making direct contact with the persons to discuss the issue and to clarify the habitable status of the property at the valuation date, i.e. 1 May 2013.
55. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €70,000, only on the portion of income above €70,000; and if he will make a statement on the matter. [2466/16]
View answer56. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €80,000, only on the portion of income above €80,000; and if he will make a statement on the matter. [2467/16]
View answer57. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €90,000, only on the portion of income above €90,000; and if he will make a statement on the matter. [2468/16]
View answer58. Deputy Michael McGrath asked the Minister for Finance the projected first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €100,000, only on the portion of income above €100,000; and if he will make a statement on the matter. [2469/16]
View answer59. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €120,000, only on the portion of income above €120,000; and if he will make a statement on the matter. [2470/16]
View answer60. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of abolishing the universal social charge, and the yield from abolishing it on an income levy of 5%, 6%, 7% and 8% on income earners above €150,000, only on the portion of income above €150,000; and if he will make a statement on the matter. [2471/16]
View answerI propose to take Questions Nos. 55 to 60, inclusive, together.
I am advised by the Revenue Commissioners that the estimated first and full year costs of abolishing the Universal Social Charge (USC) structure, as set out in Budget 2016, would be in the order of €2,522 million and €3,703 million respectively.
The estimated yield to the Exchequer from the various single band and rate USC structures as requested by the Deputy, being the yield as compared to a tax system with no USC, is set out in the following tables:
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€70,000 |
5% |
€887 |
€1,359 |
|
>€70,000 |
6% |
€1,064 |
€1,631 |
|
>€70,000 |
7% |
€1,242 |
€1,903 |
|
>€70,000 |
8% |
€1,419 |
€2,175 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€80,000 |
5% |
€722 |
€1,131 |
|
>€80,000 |
6% |
€866 |
€1,358 |
|
>€80,000 |
7% |
€1,010 |
€1,584 |
|
>€80,000 |
8% |
€1,154 |
€1,810 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€90,000 |
5% |
€608 |
€974 |
|
>€90,000 |
6% |
€730 |
€1,169 |
|
>€90,000 |
7% |
€852 |
€1,364 |
|
>€90,000 |
8% |
€974 |
€1,559 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€100,000 |
5% |
€527 |
€859 |
|
>€100,000 |
6% |
€632 |
€1,030 |
|
>€100,000 |
7% |
€737 |
€1,202 |
|
>€100,000 |
8% |
€843 |
€1,374 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€120,000 |
5% |
€417 |
€702 |
|
>€120,000 |
6% |
€501 |
€842 |
|
>€120,000 |
7% |
€584 |
€983 |
|
>€120,000 |
8% |
€668 |
€1,123 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€150,000 |
5% |
€320 |
€558 |
|
>€150,000 |
6% |
€384 |
€670 |
|
>€150,000 |
7% |
€448 |
€781 |
|
>€150,000 |
8% |
€512 |
€893 |
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2016 incomes and are provisional and may be revised.
The following revised reply was received on 2 February 2016:
I propose to take Questions Nos. 55 to 60, inclusive, together.
It has been noted that the answer provided to the above questions was based on an incorrect interpretation of the Deputy’s Questions, in that it included an estimate of the yield to the Exchequer of an income levy at the rates specified on all of the income of persons with income over the specified levels, rather than on the portion of income above those levels only.
The revised reply below contains tables setting out the yield from applying an income levy on income above the various levels only.
I am advised by the Revenue Commissioners that the estimated first and full year costs of abolishing the Universal Social Charge (USC) as set out in Budget 2016 would be in the order of €2,522 million and €3,703 million respectively.
The estimated yield to the Exchequer from the various single band and rate USC structures as requested by the Deputy is set out in the following tables:
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€70,000 |
5% |
€376 |
€623 |
|
>€70,000 |
6% |
€451 |
€748 |
|
>€70,000 |
7% |
€526 |
€872 |
|
>€70,000 |
8% |
€601 |
€997 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€80,000 |
5% |
€315 |
€534 |
|
>€80,000 |
6% |
€378 |
€641 |
|
>€80,000 |
7% |
€441 |
€748 |
|
>€80,000 |
8% |
€504 |
€855 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€90,000 |
5% |
€271 |
€470 |
|
>€90,000 |
6% |
€325 |
€564 |
|
>€90,000 |
7% |
€380 |
€658 |
|
>€90,000 |
8% |
€434 |
€752 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€100,000 |
5% |
€238 |
€420 |
|
>€100,000 |
6% |
€286 |
€504 |
|
>€100,000 |
7% |
€334 |
€588 |
|
>€100,000 |
8% |
€381 |
€672 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€120,000 |
5% |
€192 |
€348 |
|
>€120,000 |
6% |
€230 |
€418 |
|
>€120,000 |
7% |
€268 |
€488 |
|
>€120,000 |
8% |
€307 |
€558 |
|
Gross Income |
Proposed USC Rate |
First Year Yield (Million) |
Full Year Yield (Million) |
|
>€150,000 |
5% |
€148 |
€278 |
|
>€150,000 |
6% |
€177 |
€334 |
|
>€150,000 |
7% |
€207 |
€390 |
|
>€150,000 |
8% |
€236 |
€445 |
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2016 incomes and are provisional and may be revised.
