Written Answers Nos. 13-24
13. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection to facilitate an oral hearing to determine an entitlement of a person (details supplied) under the carer’s allowance scheme; if she will issue a basic payment in the interim; and if she will make a statement on the matter. [8764/16]
View answerCarer’s allowance (CA) was in payment to the person concerned from 15 April 2010 to 27 January 2016. The person concerned was notified on 24 March 2016 that her payment had been terminated as she had failed to co-operate, as she is required to, with a social welfare inspector (SWI) during the course of an investigation.
The person concerned has recently appealed this decision to the social welfare appeals office (SWAO). The SWAO are an independent body and whether the appeal outcome is dealt with summarily or by oral hearing is a matter for the chief appeals officer (CAO). The person concerned may write to the CAO to request an oral hearing if s/he wishes.
Once all the necessary investigations have been carried out in relation to this appeal, the SWAO will be in contact with the person in question directly.
In the meantime, if the means of the person concerned are insufficient to meet her needs she should apply for a means-tested supplementary welfare allowance from her local community welfare service.
14. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if and when she will issue rent support to a person (details supplied); and if she will make a statement on the matter. [8766/16]
View answerThe client concerned made application for Rent Supplement in December 2015 and was found to be ineligible. As the client is living in an area designated for the Housing Assistance Payment (HAP), he was advised at that time, to make application to Kildare County Council. Kildare County Council has confirmed to us that the client made a HAP application to them at the end of March 2016 and that they will issue a decision in due course.
15. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection to issue a water conservation grant towards the Irish Water costs of a person (details supplied); and if she will make a statement on the matter. [8770/16]
View answerThe eligibility criteria for the Water Conservation Grant are set out in the Water Services Act 2014 (Water Conservation Grant) Regulations 2015. Under regulation 5(1) a person who registers with Irish Water, as required under section 5(2)(a) of the Water Services Act 2014, on or before 30 June 2015 shall be eligible to receive the grant in 2015 if they were normally resident at the principal private residence on that date.
To date Irish Water has transferred details of over 1.3 million registered households to this Department including the details of the person concerned. A letter issued to the person concerned inviting them to apply for the grant before the deadline of 8th October 2015 and advising them that they could make this application either online or with the assistance of the Water Grant Support Team by telephone. Statutory Instrument 434 of 2015 provided for the extension of the deadline for the submission of a completed application for the Water Conservation Grant to the Department of Social Protection from 8th October 2015 to 22nd October 2015. However, there is no record of the person having applied for the grant prior to the closing date.
16. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection to award rent support to a person (details supplied); and if she will make a statement on the matter. [8772/16]
View answerAs detailed to the Deputy in reply to Parliamentary Question No 43420-15 and several related Parliamentary Questions, the client concerned has been requested on numerous occasions to provide the Department with details of all capital accrued from the sale of the family home. This documentation has not, to date, been received by the Department. A final reminder was issued to the client on 3rd December, 2015. This claim for Rent Supplement was closed on the 21st December, 2015.
17. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection to take the family circumstances of a person (details supplied) into account in determining the maximum payment on family income supplement in the event of the spouse forgoing the jobseeker's allowance; and if she will make a statement on the matter. [8773/16]
View answerI can confirm that the spouse/partner of the person concerned is claiming an increase on his Jobseekers Allowance (JA) for a qualified adult (IQA). FIS is not payable to a person who is either on JA or is being claimed as an IQA on JA.
It is more beneficial for the family in question to claim FIS than for the person concerned to remain as an IQA on her spouse/partner’s (JA) payment.
FIS section wrote to the person in question on 01 December 2015 explaining this and they were asked to contact their Intreo office requesting the JA claim to be revised and IQA removed. To date, the customer has not responded to this letter.
Based on the information available to the department, if the person concerned decides to forgo the IQA on JA and proceed with this FIS claim, they will be entitled to €77.00 FIS per week which represents an additional €6.40 in excess of the current weekly family income.
18. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the circumstances in which a person (details supplied) received an overpayment under the rent support scheme; and if she will make a statement on the matter. [8774/16]
View answerThe Department has written to the client in question to discuss the issue of her outstanding debt and future repayment schedule, having regard to the family circumstances you raise.
19. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if a person (details supplied) is entitled to an increase under the family income supplement scheme; and if she will make a statement on the matter. [8775/16]
View answerThe person concerned has been awarded a family income supplement (FIS) from 03 March 2016 to 01 March 2017 at a weekly rate of €98.00. This payment is based on the person’s income and circumstances at the time of application for FIS. In accordance with legislation, rate changes during the 52 week payment period can happen only in certain specified circumstances i.e. where the family has an additional child or where there is a loss of one parent family payment due to the revised age thresholds.
20. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection when she will approve a payment for a person (details supplied) under the disability allowance scheme, given that the person's eligibility under the domiciliary care allowance scheme ceased on the person reaching 16 years of age; and if she will make a statement on the matter. [8776/16]
View answerI confirm that the department is in receipt of an application for disability allowance (DA) from the above named person on 13 April 2016. On completion of the necessary investigations on all aspects of the claim a decision will be made and the person concerned will be notified directly of the outcome.
The processing time for individual DA claims may vary in accordance with their relative complexity in terms of the three main qualifying criteria, the person’s circumstances and the quality and completeness of information they provide in support of their claim.
21. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the status of an application by a person (details supplied) under the carer's allowance scheme; and if she will make a statement on the matter. [8777/16]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 7th January 2016. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers have been received in the Social Welfare Appeals Office on 25th April 2016 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
22. Deputy Brendan Griffin asked the Minister for Finance the tax incentives and other incentives available to Irish emigrants hoping to return home to take up employment; and if he will make a statement on the matter. [8646/16]
View answerThe Deputy will be aware that, as a member of the European Union, Ireland must comply with the freedom of movement principles of the European Treaties. It is likely that any tax incentive which would only be available to returning Irish emigrants, would be in breach of these freedoms.
The provision of a tax reduction to such individuals could also have the potential to distort the labour market. It could allow employers to offer reduced gross salaries to returning emigrants, which could put existing Irish resident individuals at a disadvantage when competing for employment opportunities.
Notwithstanding the above, there are some tax incentives which could be availed of by individuals entering the State to take up employment, including returning Irish emigrants.
Such an individual could elect for "split year" treatment in the year of arrival, which involves the discounting of any non-Irish employment income for tax purposes where it was earned before an individual permanently moves to Ireland. In broad terms, an individual is entitled to split year treatment where they enter the State and become resident at some time during a tax year, with the intention of remaining and being resident in the following tax year also.
Under split year treatment, an individual is entitled to full personal tax credits and allowances for the year of arrival, notwithstanding the fact that employment income earned in the year of arrival, prior to the date of arrival, is not subject to Irish tax. Such individuals are chargeable to tax on the full amount of any non-employment income, such as investment income, for the year of arrival.
A separate relief which may be available to returning Irish emigrants who meet the necessary conditions is the Special Assignee Relief Programme (SARP), an income tax incentive that allows relief on a proportion of income earned by an employee who is assigned by his or her relevant employer to work in Ireland for that employer, or for an associated company of that relevant employer. For 2015 and subsequent years, this relief is available to qualifying individuals on 30% of an employee's income over €75,000.
In order to avail of the SARP incentive, an employee arriving in Ireland must have worked for the relevant employer for a minimum period of 6 months prior to arrival in Ireland and must not have been resident in the State for the 5 tax years immediately preceding the tax year in which he or she arrives in the State. A relevant employer is a company that is incorporated and tax resident in a country with which Ireland has a double taxation agreement or a tax information exchange agreement.
The Deputy will also be aware of the income tax and Universal Social Charge reductions included in the last two Budgets, which have reduced the lowest three rates of USC, and the marginal rate of income tax payable by those on incomes of up to €70,044 per annum. As stated previously, I believe that these changes make Ireland a more attractive proposition, from an income tax perspective, for those Irish emigrants that may wish to return home.
23. Deputy Sean Fleming asked the Minister for Finance why there is a professional service surcharge effective rate of approximately 7% on top of the corporation tax rate of 12.5% in relation to businesses which are exporting such professional services when, at the same time, IDA Ireland is selling Ireland as an area where the maximum corporation tax rate is 12.5% given that some companies coming in under this belief are now discovering that they are caught for the additional surcharge and given that section 441 of the Taxes Consolidation Act defines what is covered by this, but some firms which are working in this area earn large amounts of their income from activities carried out in other areas by field workers on the ground who do not necessarily have professional qualifications, yet the companies' income can be surcharged additionally on this matter, and in this situation we are referring to internationally traded services companies, where they deliver their professional services abroad; and if he will make a statement on the matter. [8706/16]
View answerBroadly speaking, a close company is a company under the control of 5 or fewer participators (including their associates), or of participators who are directors. The vast majority of companies registered for corporation tax in Ireland are "close companies".
There are specific rules in Irish tax law that are applicable to close companies. These rules are designed to ensure that persons who conduct certain activities and transactions through corporate structures do not receive an unfair tax advantage over persons who conduct similar activities and transactions without incorporating. The provisions seek to level the playing field between corporation tax, on the one hand, and personal income tax (where rates are generally higher) on the other. The close company surcharge of 20% applies in respect of investment income earned by a company, such as interest, dividend or rental income, which is not distributed to the company shareholders within 18 months of the company's year-end. The surcharge does not apply to the retained trading income of a close company. With investment and rental income of a company subject to tax at a 25% rate, there would be a strong incentive in the absence of a surcharge for persons to accumulate and retain such income within a company and thereby avoid marginal rate income tax and USC.
With regard to service companies (i.e. those that are engaged in professional services) that are close companies, the surcharge is extended to include a surcharge of 15% on 50% of trading profits which are not distributed within 18 months of the end of the accounting period. The activities of service companies are those that are typically carried on by an individual or partnership. Tax legislation does not define profession so it is given its ordinary meaning, taking into account relevant case law.
The service company surcharge was introduced in order to counteract an abuse whereby these activities were diverted to a company, being a company controlled by individuals who are actually providing the relevant services, and the income is withheld from distribution. In the absence of the service company surcharge, the profits would be taxed at the corporation tax rate and, if not distributed, would avoid the higher personal income tax charge. This would result in a loss of tax revenue and would give an unfair tax advantage to persons who structure their affairs through corporations. As the surcharge only applies to 50% of undistributed trading income, provision is made for retention and re-investment of profits within professional services companies.
Non-resident companies are not within the close company provisions.
24. Deputy Pearse Doherty asked the Minister for Finance when he will publish the spring economic statement; and if he will make a statement on the matter. [8740/16]
View answerIn accordance with the requirements of Regulation 1466/97, each Member State is required to present an annual update of its Stability Programme to the European Commission no later than the end of April. A draft Stability Programme Update was laid before the Oireachtas and debated in the Dáil on April 27th and will be formally submitted to Brussels by Friday 29th April.
Last year, Ireland's SPU was accompanied by a Spring Economic Statement (SES) for the first time. The SES set out in broad terms the Government's economic priorities and fiscal strategy over the medium term and represented an important stage in the reform of the Budgetary process.
In view of the ongoing discussions on Government formation at present, any decision to publish such a statement would be for the incoming Government but I believe it is a worthwhile initiative which should be continued.
