Thursday, 28 Jan 2016

Written Answers Nos. 65-80

Insurance Costs

Questions (65)

Eoghan Murphy

Question:

65. Deputy Eoghan Murphy asked the Minister for Finance to address an insurance issue (details supplied). [3511/16]

Written answers

Minister for Finance

The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, may interfere in the provision of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing, or terms and conditions of an insurance product.

Insurance Ireland, which represents the insurance industry in Ireland, has informed me that motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as the age of the driver, the type of car, the claims record, driving experience, the number of drivers, how the car is used, etc.

Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. In the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone [phone] quoting the Declined Cases Agreement.

Tax Code

Questions (66)

Eoghan Murphy

Question:

66. Deputy Eoghan Murphy asked the Minister for Finance if he will amend the inheritance laws, to allow a flat allowance for an individual over a person’s lifetime, regardless of the size of the inheritance or the relationship with the donor; and if this would be fairer. [3515/16]

Written answers

Minister for Finance

Capital Acquisitions Tax (CAT) is the overall title for gift and inheritance tax.

For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A: tax free threshold €280,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075 applies in all other cases.

Transfers and inheritance between spouses are not subject to CAT.

Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.

I take it that the Deputy proposes abolishing these different thresholds and applying a single lifetime tax-free threshold to all receipts by gift or inheritance in a person's lifetime regardless of who they are received from. I have no plans to make such a change to the CAT legislation. The differing treatment of gifts and inheritances depending on the recipient's relationship to the donor has been an element of CAT since its introduction. It reflects a recognition of the legitimate wish of people to be able to provide for those closest to them while at the same time protecting the tax base for capital tax purposes.

Tax Code

Questions (67)

Clare Daly

Question:

67. Deputy Clare Daly asked the Minister for Finance the arrangements he made with the Microsoft company in respect of being granted the status of being domiciled here; if that arrangement included a requirement to retain manufacturing here; and if this arrangement is now non-existent given the decision of the Arvato plant in Swords in County Dublin to re-locate its packaging and distribution of Microsoft software to the Czech Republic from July 2016. [3517/16]

Written answers

Minister for Finance

I am not clear what arrangement the Question is referring to. The residence of a company is set down in statute and therefore no arrangement would be permitted in relation to any company.

The Finance Bill 2014 amended the company residence rules such that from 01 January 2015 any company incorporated in the State will be Irish tax resident. This amendment brought Ireland's company tax residence rules into line with the majority of EU and OECD member states. The common law "management and control" test also continues to apply to companies that are not incorporated in the State and that are centrally managed and controlled in the State. To ensure that this change did not negatively impact on other related group companies who have real and substantial operations in Ireland, a six year transitioning period was provided for to give these groups a reasonable timeframe to plan and re-organise their business structures to take account of this change.

Property Tax Administration

Questions (68, 69)

Pearse Doherty

Question:

68. Deputy Pearse Doherty asked the Minister for Finance the reason only two months after being informed that their local property tax liability would be limited to band 1, some residents of Longboat Quay in Dublin 2 have received correspondence from the Revenue Commissioners reversing this decision. [3547/16]

Pearse Doherty

Question:

69. Deputy Pearse Doherty asked the Minister for Finance if he will exempt homes from local property tax, such as those in Longboat Quay in Dublin 2 that are effectively valueless through no fault of the residents; and if he will make a statement on the matter. [3548/16]

Written answers

Minister for Finance

I propose to take Questions Nos. 68 and 69 together.

The Finance (Local Property Tax) Act 2012 (as amended) provides that any property that is in use as, or that is suitable for use as, a dwelling house is subject to LPT.

The current valuation period is 1 May 2013 to 31 October 2019. The period was recently extended from 31 October 2016 on foot of legislative amendment (Finance (Local Property Tax) (Amendment) Act 2015) to give property owners certainty in regard to valuations and to remove concerns that LPT liabilities could rise significantly as the property market recovers.

The 1 May 2013 declared valuation is not affected by any repairs or improvements made to a property or by any general increase or decrease in property prices over the course of the valuation period. Where structural defects are detected after 1 May 2013 they impact on current valuation and are not retrospective to the 'valuation date'. Therefore there is no basis in law to reduce an LPT valuation during the 'valuation period'. 

In regard to the specific cases mentioned by the Deputy, Revenue has advised me that the original notifications advising the very small number of persons in question of a reduction in their LPT valuations issued in error and were incorrect. Revenue has also confirmed to me that where mistakes are made or where taxpayers are provided with incorrect information, contact is made with the affected parties as soon as the error comes to light to firstly apologise and to ensure the correct information is quickly provided and clarified as necessary. It was in this context that the correspondence to which the Deputy refers  issued.

I have no plans to introduce an exemption from LPT along the lines suggested by the Deputy.

Tax Code

Questions (70)

Brendan Griffin

Question:

70. Deputy Brendan Griffin asked the Minister for Finance if he will introduce of a tax free allowance for fishermen, similar to the seafarer's allowance; and if he will make a statement on the matter. [3550/16]

Written answers

Minister for Finance

In Budget 2014 I announced that in conjunction with the Marine Co-ordination Group, a review of the financial and taxation supports available to the Marine Sector would be carried out to examine strategic measures that could be introduced to help Ireland as an island nation to fulfil its potential in the marine area.

Phase 1 of this review involved an examination of the taxation supports available for certain sub sectors of marine, namely fishing, ports and shipping. The overall objective of this review was to ensure that there is a supportive financial environment underpinning the marine sector. Following a tender process, Indecon International Economic Consultants were engaged to carry out the review under the aegis of a steering group comprising of representatives from the Department of Agriculture, Food and the Marine, the Department of Tourism, Transport and Sport, the Department of Jobs, Enterprise and Innovation and the Department of Finance.

This review was published on Budget day, last October, and my officials are working with the relevant departments to consider options arising from the Marine Tax Review. One of the options which is being considered is a tax relief for fishermen similar to the seafarer's allowance. The outcome of this work is expected to be discussed in advance of the Finance Bill later this year, and will be a matter for consideration by the next Government.

Fuel Rebate Scheme

Questions (71)

Michael McGrath

Question:

71. Deputy Michael McGrath asked the Minister for Finance the status of the website of the Revenue Commissioners; and if it will be repaired in order that a person (details supplied) in County Cork can apply for a grant under the fuel rebate scheme. [3553/16]

Written answers

Minister for Finance

I am advised by Revenue that the car details for the person concerned have been updated. The person concerned can now proceed to make a claim for the Fuel Grant.

Departmental Funding

Questions (72)

Fergus O'Dowd

Question:

72. Deputy Fergus O'Dowd asked the Minister for Finance the funding he allocated and the funding spent on capital projects and other initiatives in the constituency of Louth-East Meath by project and initiative and by completion date and by cost for the past five years; and if he will make a statement on the matter. [3561/16]

Written answers

Minister for Finance

In response to the Deputy's question, the Minister for Public Expenditure and Reform, Mr Brendan Howlin, T.D., announced the Government's Capital Plan on 29 September 2015 which outlined Exchequer capital spending of €27 billion over the next six years. My Department does not have responsibility for allocating capital funding. However, as the Deputy will be aware, a range of projects and initiatives in the constituency of Louth East Meath have been funded by the Government through the relevant line departments.

Tax Code

Questions (73)

Fergus O'Dowd

Question:

73. Deputy Fergus O'Dowd asked the Minister for Finance why savings accounts in the name of children are subject to deposit interest retention tax; and if he will make a statement on the matter. [3571/16]

Written answers

Minister for Finance

Under Section 257 of the Taxes Consolidation Act 1997 all deposit takers are obliged to deduct Deposit Interest Retention Tax (DIRT) from payments of interest made to an account unless the account qualifies as an exempt account. There is no specific exemption in the case of interest paid on deposit accounts held by children. Such a provision could be difficult and costly to administer, from the point of view of establishing who the beneficial owner of the account is.

The wider tax code does not provide for an exemption from tax for children. Children could be liable to a range of taxes. Not many children have an income that exceeds the relevant thresholds, but those that do are taxable on it.

There are alternative savings products, offered by the National Treasury Management Agency through An Post, which are tax free, subject to certain conditions. 

Tax Data

Questions (74)

Michael McGrath

Question:

74. Deputy Michael McGrath asked the Minister for Finance the total amount raised from motorists in mineral oil tax, vehicle registration tax, value added tax, carbon tax, motor tax and driver licensing in the years 2013 to 2015; and if he will make a statement on the matter. [3575/16]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the amounts raised under Mineral Oil Tax (Excise), Carbon Tax, Value Added Tax and Vehicle Registration Tax is as outlined as follows. VAT amounts are estimated as these figures are not recorded separately, and the 2015 data are provisional and subject to revision.

Year	-	Petrol €m	Diesel €m	Auto LPG €m
2013	Excise	850.30	1,133.54	0.14
	Carbon	69.59	137.23	0.07
	Vat (Est)	463.00	75.00	0.31
2014	Excise	799.59	1,181.62	0.23
	Carbon	65.69	144.86	0.11
	Vat (Est)	423.00	77.00	0.53
2015	Excise	765.80	1,248.37	0.29
	Carbon	62.31	158.14	0.14
	Vat (Est)	364.00	74.00	0.64

Year	VRT €m	Vat (Est) €m
2013	437.3	280.6
2014	542.1	371.3
2015	648.7	489.0

I am informed by my colleague the Minister of Transport, Tourism and Sport that the annual gross receipts from motor tax are as set out in the following table:

-	2013 €bn	2014 €bn	2015 €bn
Motor Tax Receipts	€1.137	€1.159	€1.124

It has not been possible in the time allowed to obtain the Driving Licence Receipts from the Road Safety Authority, however, I will ensure that this information is forwarded directly to the Deputy once it is available.

EU Budget Contribution

Questions (75)

Michael McGrath

Question:

75. Deputy Michael McGrath asked the Minister for Finance the Irish contribution to the European Union budget for the years 2013 to 2015; the projected contribution for 2016; and if he will make a statement on the matter. [3576/16]

Written answers

Minister for Finance

EU Budget payments are published annually by the Department of Finance in the Budget Statistics bulletin. The latest edition from October 2015 contains this data up to 2014.

Member State contributions to the EU Budget are based upon a complex formula which includes Traditional Own Resources (customs duties), a VAT-based payment and a residual balancing component paid in accordance with each Member State's share of EU Gross National Income (GNI). Ireland's contribution for 2013 to 2015, along with a projected contribution for 2016, are set out in the following table. It should be noted that the 2016 estimate has been adjusted to take account of the Commission's annual 'rebalancing' exercise carried out in December 2015. However, the estimate remains subject to change arising from  EU legislative and expenditure developments.

Year	EU Budget Payment (€ millions)
2013	1,726
2014	1,686
2015	1,952
2016 (e)	1,875

(e) - Estimate Source - Department of Finance 

European Investment Bank Loans

Questions (76)

Michael McGrath

Question:

76. Deputy Michael McGrath asked the Minister for Finance the amount Ireland has drawn down from the European Investment Bank for each year since 2011, by project; and if he will make a statement on the matter. [3577/16]

Written answers

Minister for Finance

The European Investment Bank (EIB) is the long-term financing institution of the European Union. Its mission is to help implement the EU's policy objectives by providing financing to projects that address these objectives. The EIB may lend to lend to Governments, public sector bodies, commercial semi-state bodies or private sector entities.

The Deputy will find below a table with a breakdown of private and public sector (including commercial semi-state) projects in Ireland to which the European Investment Bank (EIB) has provided financing. The table sets out the project name, the sector involved, the date of contract signature and amount for each project for the period 2011-2015.

The Deputy should note that it is not possible to provide the amount "drawn-down" by each project as the schedule of financing drawn down is determined within individual financing contracts and is confidential between the EIB and the project promoter.

The Deputy may also wish to be aware that information on the projects signed between the EIB and project promoters in Ireland is also publicly available on the EIB website. A link to the relevant section of the site is available here: www.eib.org/projects/loans/index.htm

Project	Sector	Signature Date of contract	Amount (€m) Signed
2015
DCU Campus Development	Education	21-Dec-15	76
Dublin Port	Transport	21-Dec-15	100
Irish Flood Prevention Programme	Water	17-Dec-15	200
Strategic Bank Corporation Ireland (SBCI)	SMEs	22-Oct-15	200
M11 Gorey to Enniscorthy Motorway PPP	Transport	14-Oct-15	109
Trinity College Dublin	Education	25-Jun-15	70
		Total	755

Project	Sector	Signature Date of contract	Amount (€m) Signed
2014
Open Access (GFI)	Broadband	19-Dec-14	12
HFA - Irish Social Housing Development Programme	Urban Development	18-Dec-14	150
NUI Maynooth	Education	17-Dec-14	76.765
ESB Network - Renewable Connection	Energy	30-Oct-14	100
Irish Water Investment Programme	Water	29-Oct-14	100
Strategic Bank Corporation Ireland (SBCI)	SMEs	28-Oct-14	200
N17-N18 Gort to Tuam PPP Motorway	Transport	30-Apr-14	143.033
Dublin Luas Cross City	Transport	03-Mar-14	150
		Total	931.798

Project	Sector	Signature Date of contract	Amount (€m) Signed
2013
ESB Renewable Connection	Energy	09-Dec-13	100
Vodafone Mobile Limited	Corporate	27-Nov-13	118
University of Limerick	Education	26-Nov-13	100
Irish School Programme II	Education	19-Jun-13	100
N11/N7 Motorway PPP	Infrastructure	30-Apr-13	72
AIB Loan for SMEs and Midcaps	SMEs	26-Apr-13	100
Bord Gáis Onshore Wind Programme	Energy	23-Apr-13	90
		Total	680

Project	Sector	Signature Date of contract	Amount (€m) Signed
2012
AIB Loan for SMEs and Midcaps	SMEs	21-Dec-12	100
Bord Gáis Onshore Wind Programme	Energy	28-Nov-12	155
Irish Water Investment Programme	Energy	28-Nov-12	100
Irish Schools Investment Programme (PPP)	Education	09-Nov-12	50
Irish School Programme	Education	06-Jul-12	100
		Total	505

Project	Sector	Signature Date of contract	Amount (€m) Signed
2011
AIB Loan for SMEs II	SMEs	21-Dec-11	150
University College Dublin	Education	17-Nov-11	90
ESB Network and E-Cars Infrastructure	Energy	17-Nov-11	235
		Total	475

Tax Data

Questions (77)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Finance the total betting duty paid in 2015 and the estimated betting duty for 2016 by licensed betting offices and by online facilities; and if he will make a statement on the matter. [3578/16]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the betting duty paid in 2015 and the estimated betting duty for 2016 is as follows:

Betting Receipts	Traditional	Online	Commission	Total
Year	€m	€m	€m	€m
2015 (Prov)	27.8	3.0*	0.3*	31.1
2016 (Est)	31.6	18.5	1.8	52.0

* The Betting (Amendment) Act 2015 came into effect on 1st August 2015 providing for the taxation of remote bookmakers and betting exchanges. The returns for remote/online bookmakers and betting exchanges of €3m and €0.3m respectively are for the period 1 August 2015 to 30 September 2015. Returns in respect of 1 October 2015 to 31 December 2015 are payable in January 2016.

The 2016 estimate is derived using the latest available information. As the 2015 data is currently provisional and only contains a small sample of payments received for online facilities, this estimate may be subject to revision.

Tax Data

Questions (78)

Michael McGrath

Question:

78. Deputy Michael McGrath asked the Minister for Finance the amount of revenue forgone under exemptions granted to organisations which have been granted charitable status for each of the past five years; and if he will make a statement on the matter. [3579/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.

In relation to the Deputy's specific question, the latest information on the cost and numbers benefiting from tax relief under Section 848A of the Taxes Consolidation Act, 1997, which provides for a scheme of tax relief on donations to approved bodies including eligible charities, can be found at http://www.revenue.ie/en/about/statistics/costs-expenditures.html.

This table also provides information about the cost to the exchequer regarding the exemption of income of charities, colleges, hospitals, schools, friendly societies, etc.

The table contains the latest information which is available. For most reliefs, the latest full year for which information is available is 2013. Further updates will be published in due course.

Revenue Commissioners Investigations

Questions (79)

Michael McGrath

Question:

79. Deputy Michael McGrath asked the Minister for Finance the amount of money the Revenue Commissioners paid as a reward for information received from whistleblowers or other information received and the number of cases involved in each year from 2013 to 2015; and if he will make a statement on the matter. [3583/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that payments of the kind referred to by the Deputy are made only in certain defined and limited circumstances. The approval of such a payment by Revenue is conditional on the provision of new and/or significant information which results in a substantial recovery of taxes and/or duties, controlled drugs and/or prohibited goods. I understand that no such payments were made in the period from 2013 to 2015.

State Claims Agency

Questions (80)

Michael McGrath

Question:

80. Deputy Michael McGrath asked the Minister for Finance the number of Solicitors and Barristers the State Claims Agency directly employs; his views on the legal staffing of the Agency; how this has changed since 2012; and if he will make a statement on the matter. [3584/16]

Written answers

Minister for Finance

The National Treasury Management Agency (NTMA) has advised that it employs 30 solicitors and 3 barristers that are assigned to its State Claims Agency (SCA) function. 16 solicitors are employed as clinical claims managers, being specialists in the management of clinical negligence claims, whilst 11 solicitors are employed as in-house litigation managers. Two solicitors are employed as legal cost accountants in the SCA's Legal Costs Unit. Three barristers and a solicitor are employed as general claims managers.

The NTMA has advised that the SCA is adequately staffed to meet its claims and litigation management functions and it is also assisted in its litigation management by its external panels of solicitors, located countrywide and an external panel of barristers. Currently, the SCA has 41 solicitors and 170 barristers on its panels for the clinical and general claim portfolios.

In April 2014, the SCA s remit was further extended with the delegation to it by Government of the management of personal injury and third-party property damage claims in respect of an additional 61 public bodies, bringing the total number within the SCA s remit from 56 to 117. Another delegation by Government in June 2015 has further increased the number of public bodies within SCA s remit to 129. Any increase in staffing levels is in line with the additional responsibilities of the SCA.

The Agency constantly keeps its legal staffing under review, having regard to the size and demands of the claims portfolio of the SCA.