Written Replies Nos. 172 to 200
172. Deputy Róisín Shortall asked the Minister for Finance to mandate the Ireland Strategic Investment Fund to divest itself of fossil fuel investments; if maintaining these investments is counter to the Government's recent commitment to the Conference of the Parties 21 Agreement; and if he will make a statement on the matter. [9397/16]
View answerThe Ireland Strategic Investment Fund's (ISIF) investment holdings in fossil fuel companies are among the legacy global investments inherited from its predecessor fund, the National Pensions Reserve Fund (NPRF). In keeping with the ISIF's mandate to hold or invest its assets (other than directed investments) on a commercial basis in a manner designed to support economic activity and employment in Ireland, these legacy investments are being sold by ISIF over time to fund Irish investment commitments as they arise.
I am informed that the Fund has reduced its overall equity exposure from approximately 25% at end 2014 to approximately 11% at end 2015. Furthermore, this allocation is expected to be continuously reduced as the Fund deploys its capital. The Fund's divestment approach is phased with a view to protecting the taxpayer from unnecessary losses. This is in alignment with the Fund's double bottom line mandate of investment (i) on a commercial basis and (ii) in a manner designed to support economic activity and employment in Ireland.
The first investment strategy of the Ireland Strategic Investment Fund, which was published in July 2015, is publicly available. It sets out the long-term strategic direction for the Fund, and outlines that the "Energy (allocation) will include a significant element of renewable energy investments". Importantly, the Fund commits to operating to the highest global standards, investing in line with both the Principles for Responsible Investment (PRI), of which it is a signatory, incorporating environmental, social and governance factors into its investment decision making, and the Santiago Principles, which are the globally accepted best practice principles for sovereign funds. To-date, any exclusions from the Fund (e.g. on the basis of ethical investment criteria) are those mandated by legislation, such as the Cluster Munitions and Anti-Personnel Mines Act 2008 (as amended).
The ISIF has a close working relationship with what is now the Department of Communications, Climate Change & Natural Resources and is committed to investing in the energy sector is a manner that is consistent with the Government's commitment to make the transition to a low carbon, climate resilient and sustainable economy, as reflected in the Climate Change and Low Carbon Development Act 2015 and in the Paris Agreement, signed recently by Minister for the Environment, Community and Local Government on Ireland's behalf.
The Fund's investment policy is set out in the National Treasury Management Agency (Amendment) Act 2014, and its strategy is determined, monitored and kept under review in accordance with that Act, which was passed by the Oireachtas less than two years ago.
173. Deputy Róisín Shortall asked the Minister for Finance the companies that the Ireland Strategic Investment Fund has invested in which are involved in fossil fuel extraction or burning; the amount the fund has invested; and the return on this investment by year. [9398/16]
View answerThe Ireland Strategic Investment Fund's investment holdings in fossil fuel companies are among the legacy global investments inherited from its predecessor fund, the National Pensions Reserve Fund (NPRF). In keeping with the Fund's mandate to hold or invest its assets (other than directed investments) on a commercial basis in a manner to support economic activity and employment in Ireland, these legacy investments are being sold by the Ireland Strategic Investment Fund over time to fund Irish investment commitments as they arise.
The Fund has reduced its overall equity exposure from approximately 25% at end 2014 to approximately 11% at end 2015. Furthermore, this allocation is expected to be continuously reduced as the Fund deploys its capital.
The Fund's divestment approach is phased with a view to protecting the taxpayer from unnecessary losses. This is in alignment with the Fund's double bottom line mandate of investment (i) on a commercial basis and (ii) in a manner to support economic activity and employment in Ireland.
In the absence of a globally accepted definition and list of companies "involved in fossil fuel extraction or burning", a company by company analysis of the Fund's 2,500 listed equity holdings would be necessary to determine the full exposure. However, a preliminary and unaudited value of the Fund's investment in the Oil, Gas and Consumable Fuels industry group, as defined by the leading equity index provided by MSCI Inc, is €79m, representing 1% of the Fund's investments as of 31 December 2015.
The Oil, Gas and Consumable Fuels industry group represents approximately 6% of the overall equity market and has generated a return of approximately 13% in the first 4 months of 2016 and an annualised return of -3% since December 2010.
|
|
MSCI world oil, gas and consumable fuels index performance |
MSCI world index performance |
|
2016 Jan - April |
+13% |
+0% |
|
2015 |
-25% |
-3% |
|
2014 |
-12% |
+3% |
|
2013 |
+15% |
+24% |
|
2012 |
-1% |
+13% |
|
2011 |
+0% |
-8% |
|
Annualised since 31/12/2010 |
-3% |
+5% |
The first investment strategy of the Ireland Strategic Investment Fund, which was published in July 2015, is publicly available. It sets out the long-term strategic direction for the fund, and outlines that the "Energy (allocation) will include a significant element of renewable energy investments". Importantly, the Fund commits to operating to the highest global standards, investing in line with both the Principles for Responsible Investment (PRI), of which it was a founding signatory, incorporating environmental, social and governance factors into its investment decision making, and the Santiago Principles, which are the globally accepted best practice principles for sovereign funds.
The most recently available full breakdown of investments is available in the 2014 NTMA annual report.
A full list of investments will be available in the 2015 annual report which is expected to be published in July.
174. Deputy Éamon Ó Cuív asked the Minister for Finance the circumstances in which equipment and house adaptations for persons with disabilities are exempt from VAT, or for which the VAT is refundable; the type of adaptions and equipment to which this applies; the process involved in availing of such a provision; and if he will make a statement on the matter. [9406/16]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. There are no circumstances in which the supply of equipment or house adaptations, even for a person with a disability, is exempt from VAT. There is, however, provision for the refund of VAT incurred on qualifying goods for the use of disabled persons. The provision is contained in the Value Added Tax (Refund of Tax) (No 15) Order 1981. The order specifies the degree of disability and defines the qualifying goods as goods which are aids or appliances, including parts and accessories, specially constructed or adapted for use by a disabled person and includes goods which, although not so specially constructed or adapted, are of such a kind as might reasonably be treated as so constructed or adapted having regard to a particular disablement of that person. The Refund Order extends to works carried out on homes, including the installation of walk-in-showers, to adapt them to make them more accessible for disabled persons. While the Refund Order does not apply to the actual construction of a home it would apply, for example, to certain alterations or adaptations that would be necessary to meet the particular needs of the disabled person.
Any application under the Refund Order should be made on Form VAT 61A and submitted to the Revenue Commissioners Central Repayments Office in Monaghan. Further information is available on the Revenue website www.revenue.ie.
175. Deputy Jim Daly asked the Minister for Finance if there were instances over the past 15 years where the Revenue Commissioners formally approved relief to a taxpayer who had worked abroad for a State agency under section 774(7)(d) of the Taxes Consolidation Act 1997 and subsequently reversed this approval and sought the payment of the amount of relief; the reason for this; and if he will make a statement on the matter. [9395/16]
View answer187. Deputy Jim Daly asked the Minister for Finance further to Parliamentary Question No. 7 of 27 April 2016, why the details of amounts carried forward in the manner described are not separately identifiable; to request the Revenue Commissioners to calculate and identify these; how it is possible that a number of applications for such relief have been denied and a number of applications have been approved; if they are not separately identifiable; if he is satisfied that these figures are not available to him; and if he will make a statement on the matter. [9533/16]
View answerI propose to take Questions Nos. 175 and 187 together.
As the Deputy is aware, subsection 774(7)(d) of the Taxes Consolidation Act provides for the carry forward of tax relief on pension contributions in certain circumstances. This arises due to the limitation on allowable contributions imposed by the age-related percentage limits and overall income cap provided for in subsection 774(7)(c) and section 790A of the Act. Where a person is unable to claim the relief for all of their pension contributions in the year of contribution due to the aforementioned limitation, any unclaimed amount may be carried forward to a subsequent year or years.
I am informed by Revenue that given the scope of the first question, they are not in a position to provide the information in the time available. They will however ascertain if the information requested exists or can be compiled and, on receipt of their reply, I will write separately to the Deputy.
I am also informed by Revenue that in accordance with the self assessment principle, any relief carried forward is claimed in an annual tax return rather than being the subject of a formal approval by Revenue.
As is the case with tax reliefs generally, where Revenue, through its risk focused compliance management approach, becomes aware that the carry forward of relief in respect of pension contributions has been claimed in circumstances where it is not due, for example on the basis of information provided by a taxpayer or agent or as a result of a Revenue intervention, the appropriate arrangements are put in place to deny the relief.
The information requested on tax returns, in addition to being used to compute the taxpayer's liability, is also aimed at obtaining appropriate data in respect of tax reliefs to inform public policy making. As I advised in my reply to Parliamentary Question Number 7 of 27 April 2016, the cost of the carry forward of relief for pension contributions under subsection 774(7)(d) is contained in the overall figure for relief in respect of pension contributions in each year. I am advised by Revenue that, in considering the information taxpayers must provide on their annual tax returns, it is necessary to strike a balance between obtaining an appropriate level of information, having regard to the purpose of such information, and ensuring that the return does not become too complicated or give rise to unnecessary compliance costs for taxpayers.
176. Deputy Pearse Doherty asked the Minister for Finance further to his previous assertion that the estimated cost attached to the real estate investment trust scheme relates not to an exemption from tax but rather to a move from direct taxation of rental income in the hands of investors to the taxation of dividends distributed to investors from profits arising from that rental income under this scheme, the income receipts at fund level under the scheme and the corresponding level and amount of taxation of this income in the hands of investors since its introduction by year in tabular form. [9453/16]
View answerI am informed by the Revenue Commissioners that there are currently three Real Estate Investment Trusts ("REITs") established and operating in Ireland.
Income of the fund
I am on record stating that REITs are publically listed companies, meaning their Financial Statements are publically available but the specific figures required to calculate their rental profit (the portion of profit that is exempt) is not necessarily available in these public documents. Due to taxpayer confidentiality, information such as the level of income that is received at fund level is not available from the Revenue Commissioners, therefore, I am unable to comment on these specific details.
Income of the individuals
The Revenue Commissioners have confirmed that their records indicate that no REIT made a distribution prior to 2015. Distributions were made by the REITs in 2015 however the information on the 2015 income tax returns of individuals is not yet available.
Furthermore, as distributions from REITs forms part of an Irish resident individual's total income, unlike interest subject to DIRT for example, it would not be possible to comment in a general way on the level of taxation which would arise from that income. Each individual will pay income tax at their marginal rate.
177. Deputy Pearse Doherty asked the Minister for Finance the amount of dividend withholding tax that has subsequently been refunded to persons and companies in accordance with the relevant double taxation agreements and through other reclaim forms in respect of dividend payments under the real estate investment trust scheme by year in tabular form. [9454/16]
View answerI am informed by the Revenue Commissioners that the dividend withholding tax refunded in respect of dividend payments made by Real Estate Investment Trusts is as follows:
|
Period |
DWT refunded in respect of REITs |
|
1/01/15 to 31/12/15 |
€67,955.13 |
|
1/1/2016 to 30/04/16 |
€73,673.96 |
178. Deputy Pearse Doherty asked the Minister for Finance the number of persons who have paid the domicile levy and the corresponding amount raised since its introduction by year in tabular form. [9455/16]
View answer179. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised from the domicile levy were the Irish property value threshold lowered from €5 million to €3 million and the yearly income tax threshold increased from €200,000 to €400,000. [9456/16]
View answerI propose to take Questions Nos. 178 and 179 together.
In respect of 9455/16 the domicile levy was introduced in the Finance Act 2010. The first year for which individuals were required to make returns was the year 2010 and these returns had to be filed by 31 October 2011 or by 15 November 2011 for individuals using Revenue Online Services (ROS).
The table following sets out the number of individuals who filed domicile levy returns in respect of each year since its introduction together with the amount of levy declared in respect of those returns and the amounts that have been paid. Outstanding amounts are subject to ongoing compliance action.
|
Year for which return is made |
Number of individuals |
Amount of domicile levy per filed returns |
Amount of domicile levy paid in relation to returns filed |
|
2010 |
31 |
€3,680,013 |
€3,395,624 |
|
2011 |
29 |
€3,816,152 |
€3,746,797 |
|
2012 |
21 |
€2,672,300 |
€2,427,541 |
|
2013 |
15 |
€1,787,681 |
€1,787,681 |
|
2014 |
12 |
€1,986,858 |
€1,986,858 |
In respect of question 9456/16 I am advised by Revenue that, based on the data available to them from tax returns, there is no basis to estimate the yield or cost to the Exchequer which might arise from re-configuring the Domicile Levy in the manner suggested by the Deputy. In particular, information on the level of property values between €3 million and €5 million and the numbers of cases affected is not available.
180. Deputy Catherine Murphy asked the Minister for Finance the changes he has made to the stability programme update following the recent debate in Dáil Éireann; and if he will make a statement on the matter. [9458/16]
View answerThe Stability Programme Update (SPU) is a technical document which is required under our legal commitments as part of the European Semester, the purpose of which is to update the macro economic and fiscal outlook. It must be completed by all (non-programme) Member States by end April each year. Given the ongoing discussions at the time regarding the formation of a Government, the document was prepared on a technical no policy change basis updating the outlook relative to the position at Budget time. This included redefinition of the Medium Term Budgetary Objective (MTO) as a structural deficit of 0.5 per cent of GDP, although a future Minister for Finance can choose to over achieve this MTO. No new policies were set out in the document.
In that context, following discussion in the Dáil on 27 April I am satisfied that the text as considered did not require significant changes. The SPU that was submitted to the Commission following the debate captured minor technical changes made by my officials to ensure the overall consistency of the document. The final version does not differ substantively from what was discussed in the Dáil.
It is intended to publish a Summer Economic Statement in the coming weeks which will be a more policy-oriented document, and which will be discussed and debated in the House.
181. Deputy Gino Kenny asked the Minister for Finance the arrangements for taxpayers receiving tax relief at source on mortgage interest payments from 2017 onwards; and if he will make a statement on the matter. [9477/16]
View answer209. Deputy Aengus Ó Snodaigh asked the Minister for Finance if he will extend the tax relief at source for mortgage interest paid on a home loan, given that many home owners who are eligible under this scheme will struggle to pay their mortgage when the scheme finishes in 2017. [10255/16]
View answerI propose to take Questions Nos. 181 and 209 together.
Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. The mechanism by which relief is given is set out in Section 244A of the Act, which provides for the granting of relief at source by the mortgage provider. The Deputies will be aware that mortgage interest relief has been abolished for homes purchased since 1 January 2013.
On foot of a change I introduced in Budget 2012, first time buyers who bought at the height of the property boom between 2004 and 2008 receive a rate of mortgage interest relief of 30%. This 30% rate will continue to be applicable to these first-time buyers for the remaining years that mortgage interest relief is scheduled to be available, i.e. currently up to the end of 2017. In the absence of this change the mortgage interest relief available would have gradually reduced to a rate of 15%.
Single individuals and married couples/civil partners that are first-time buyers qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to ceilings of €3,000 and €6,000 respectively.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who move in to the eighth and subsequent years of their loans. It is worth noting that the application of the ceilings already work to reduce the relief available in a gradual manner. In addition, as the amount of interest payable reduces as a mortgage is paid down, the level of mortgage interest relief also reduces in tandem.
The Deputies will be aware that, in the Programme for Partnership Government, there is a commitment to retain mortgage interest relief beyond the current end date of December 2017 on a tapered basis. Deputies will also note that the current scheduled end date for mortgage interest relief is December 2017 and options for the tapering envisaged in the programme for government will be considered in due course.
182. Deputy Michael McGrath asked the Minister for Finance the fiscal space available in 2017 if tax bands and credits are indexed and if they are not indexed; and if he will make a statement on the matter. [9588/16]
View answer183. Deputy Michael McGrath asked the Minister for Finance the cost of indexing tax bands and credits in 2017 based on his estimate of earnings growth and inflation; and if he will make a statement on the matter. [9589/16]
View answer184. Deputy Michael McGrath asked the Minister for Finance the change in the monetary value of the PAYE and personal tax credits in 2017 if they were indexed in line with expected earnings growth and inflation; and if he will make a statement on the matter. [9590/16]
View answer185. Deputy Michael McGrath asked the Minister for Finance the change in the entry point to the top income rate for a single person, currently at €33,800, if it were indexed in 2017 based on expected earnings growth and inflation; and if he will make a statement on the matter. [9591/16]
View answerI propose to take Questions Nos. 182, 183, 184 and 185 together.
As set out in the Stability Programme Update 2016, the tax revenue estimate for the period 2017 to 2021 incorporates a provision for the indexation of the income tax system at a cost of c. €400 million in a full year. It should be noted that in practice this is made up of a first year cost of c. €300 million with a carryover effect of c. €100 million. This is a technical assumption based on the medium-term projected increase in non-agriculture wages.
In addition, as I stated in the House during the Stability Programme Update debate recently, net fiscal space is currently estimated to be around €900 million in 2017. I want to stress that this is a work in progress figure and is subject to revision. Esimates will be refined for 2017 to 2021 in the coming weeks by my Department. However, the €900 million of fiscal space assumes a decision will be taken not to index the income tax system in 2017.
Therefore, if indexation of the income tax system proceeds as reflected in the tax revenue forecasts, then the fiscal space would be reduced by c. €300 million in 2017 to c.€600 million. It should be noted that income tax payers would benefit from such a course of action.
However, if the Government decides not to index the income tax system then the fiscal space would remain unchanged at c. €900 million for 2017.
Tables 1, 2 and 3 set out the responses to the Deputy's questions if indexation were based on earnings growth and inflation in 2017 as forecast by my Department and set out in the macro-economic forecasts contained in the 2016 Stability Programme Update. The macroeconomic forecasts were endorsed by the Irish Fiscal Advisory Council. The forecast vales were:
- Non-agriculture Pay per Capita: 2.5%
- Consumer Price Index: 1.6%
Table 1: the estimated cost in 2017 of indexing income tax credits, bands and Universal Social Charge based on estimated earnings growth and inflation growth in 2017:
|
|
2017 earnings growth |
2017 inflation |
|
PAYE and Personal Credits, with income tax rate bands and exemption limits and USC thresholds |
Of the order of €280 million in the first year Of the order of €380 million in a full year |
Of the order of €180 million in the first year Of the order of €245 million in a full year |
Table 2: the estimated monetary value of the PAYE and Personal tax credit in 2017 if they were indexed in line with estimated earnings growth and inflation in 2017
|
|
2017 earnings growth |
2017 inflation |
|
PAYE Tax Credit |
€1,690 per annum |
€1,675 per annum |
|
Single and Married Personal Tax credits |
€1,690/€3,380 per annum |
€1,675/€3,350 per annum |
Table 3: change in the income tax standard rate band for a single person, currently at €33,800 per annum, if it were indexed in line with: estimated earnings growth and inflation in 2017
|
|
2017 earnings growth |
2017 inflation |
|
Single person income tax standard rate band |
€34,640 per annum |
€34,340 per annum |
186. Deputy Michael McGrath asked the Minister for Finance when he will confirm a change to Ireland’s medium-term budgetary objective; and if he will make a statement on the matter. [9592/16]
View answerWith the correction of the excessive deficit last year, Ireland's public finances will be now be assessed under the preventive arm of the Stability and Growth Pact. The cornerstone of this fiscal framework is the achievement of the country-specific Medium Term Budgetary Objective (MTO). These budget balance targets are set in structural terms and calculated to ensure the long-term sustainability of the public finances.
EU Regulation 1466/97 provides (article 2a) for an update of the country-specific MTOs every three years. In terms of process, the European Commission is tasked with producing minimum MTOs for each Member State, and they then set their country-specific MTOs respecting the Commission 'minimum'. Recently the Commission updated the minimum levels at which Member States can set their MTO to cover the 2017 - 2019 period.
Accordingly, Ireland's minimum MTO for this period has been lowered to a structural deficit of -0.5% of GDP (from 0.0% of GDP) primarily reflecting lower forecast costs associated with ageing. The regulation further provides (article 3.2(a)) that Member States must outline their MTOs in the annual Stability Programme Updates that are submitted to the Commission each April. In the recently published Stability Programme Update, the Government has defined Ireland's MTO as a structural deficit of -0.5% of GDP. It should be noted that the incoming Government may choose to over achieve the MTO.
188. Deputy John McGuinness asked the Minister for Finance why a person (details supplied) is not exempt from vehicle registration tax on a car and if the proof submitted to the local office of the Revenue Commissioners will be reviewed; and if he will expedite a positive response. [9430/16]
View answerI am advised by Revenue that the spouse of the person concerned claimed and was granted exemption from vehicle registration tax (VRT) on a car in 2012 on the basis that he was taking up permanent residence in the State at that time. An application for VRT exemption in respect of a separate car was recently received by Revenue and refused as it is not possible for the person to satisfy the residence transfer requirement in respect of a different and more recent period.
189. Deputy Tony McLoughlin asked the Minister for Finance his views on the proposed Atlantic economic corridor; if he will introduce new tax reduction measures for Sligo, Leitrim and other counties in the zone to attract more industry and commerce to the region; and if he will make a statement on the matter. [9656/16]
View answerThe Deputy will be aware that tax incentives, when designed to target certain geographical areas, could potentially raise State Aid issues. In terms of tax policy generally, Ireland's corporate tax rate of 12.5% on trading income is akin to a brand and is an important part of the Government's strategy of creating an enterprise friendly environment to attract jobs and investment to Ireland, countrywide. One of the main features of the rate is its simplicity and the fact that it applies to a broad base.
The Deputy may also wish to be aware of a number of incentives which while not of course restricted to the counties he mentions would be nonetheless applicable there. For instance, in Budget 2016 and Finance Act 2015, I introduced a revised CGT entrepreneur relief under which a reduced CGT rate of 20% applies to gains on the disposal of business assets up to a lifetime limit of €1m. The purpose of the relief is to improve the environment for entrepreneurs and business people setting up or carrying on productive business activities in the State. It is also intended to maintain the three-year tax relief for certain start-up companies until the end of 2018 , this is an important support for entrepreneurs and local job creation. Other relevant incentives include:
(i) the Start-Up Relief for Entrepreneurs (or SURE) which provides an income tax refund to individuals who invest capital in a new business,
(ii) the Start Your Own Business scheme which provides for relief from Income Tax for long term unemployed individuals who start a new business, and
(iii) the Employment Investment Incentive (EII) which is a tax relief incentive scheme that provides tax relief for investment in certain corporate trades.
The Deputy will have noted that the issues he raises have been identified in "A Programme for a Partnership Government", published last week, where measures suggested include further favourable CGT treatment for those starting new businesses. Any new or amended tax policies would be matters for consideration as part of the Budgetary process. On the wider issue of the Atlantic Economic Corridor, the Deputy may wish to address my colleague the Minister for Jobs, Enterprise and Innovation.
190. Deputy Pearse Doherty asked the Minister for Finance the historic contributions to the EU budget in monetary value for each of the years 2006 to 2015 in tabular form. [9596/16]
View answer191. Deputy Pearse Doherty asked the Minister for Finance the expected annual contribution to the EU budget in monetary value for each of the years 2016 to 2021 in tabular form. [9595/16]
View answerI propose to take Questions Nos. 190 and 191 together.
EU Budget payments are published annually by the Department of Finance in the Budget Statistics bulletin.
Member State contributions to the EU Budget are based upon a 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 contributions for 2006 to 2015 are set out in Table 1.
For 2016-2021, the estimates set out in table 2 must be regarded as highly qualified as they are subject to on-going change arising from revisions to the underlying economic data, the annual EU budget agreements and other legislative developments at EU level. In addition, as the current Multi-annual Financial Framework (MFF) expires in 2020, the estimate for 2021 is extrapolated from our contribution over the previous years and will of course be subject to change when a new MFF is agreed on the basis of unanimity by all member States.
Table 1
|
Year |
EU Budget Payment (€ millions) |
|
2006 |
1,529.7 |
|
2007 |
1,570.0 |
|
2008 |
1,586.7 |
|
2009 |
1,486.3 |
|
2010 |
1,352.4 |
|
2011 |
1,349.7 |
|
2012 |
1,393.2 |
|
2013 |
1,726.2 |
|
2014 |
1,685.5 |
|
2015 |
1,952.1 |
Source - Department of Finance
Table 2
|
Year |
EU Budget Payments (€ millions) |
|
2016 |
2,075.0 |
|
2017 |
2,125.0 |
|
2018 |
2,250.0 |
|
2019 |
2,350.0 |
|
2020 |
2,400.0 |
|
2021 |
2,425.0 |
Source - Department of Finance
192. Deputy Pearse Doherty asked the Minister for Finance the expected growth in gross national income in both monetary value and percentage terms for each of the years 2016 to 2021 in tabular form. [9594/16]
View answerGross National Income (GNI) is calculated as Gross National Product (GNP) plus EU subsidies less EU taxes. The table following sets out the level and percentage point change in GNI over 2016 to 2021, in nominal terms, which is consistent with 2016 Stability Programme Update (SPU) projections.
|
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
|
GNI € billions |
194.7 |
204.5 |
214.6 |
223.5 |
232.2 |
240.8 |
|
change in € billions |
12.4 |
9.8 |
10.1 |
8.8 |
8.8 |
8.6 |
|
change in % |
6.8 |
5.0 |
4.9 |
4.1 |
3.9 |
3.7 |
Note: Levels above are reported on an ESA 2010 basis consistent with the SPU 2016 outlook. Until all Member States have ratified the Own Resources Decision (ORD) the EU budget contribution for 2016 will continue to be determined using the former ESA 95 basis.
193. Deputy Tony McLoughlin asked the Minister for Finance how he will help to rectify the situation whereby retail and commercial units remain empty in many rural towns and villages; if new taxes for the owners of these empty units will help them to be leased more quickly; and if he will make a statement on the matter. [9667/16]
View answerThe Deputy will be aware that tax incentives, when designed to target certain geographical areas, could potentially raise State Aid issues. However there are a number of incentives and allowances which may be applicable in this instance. For example, a person in receipt of rental income is assessed on the profit amount of the rents received i.e. the gross rents less allowable expenses incurred in earning those rents.
The Deputy will be aware also that the issues he raises have been identified in "A Programme for a Partnership Government" published last week, any new or amended tax policies would be matters for consideration as part of the Budgetary process.
A further point which may be of interest to the Deputy is that 85% of lending by the Strategic Banking Corporation of Ireland (SBCI) is to SMEs based regionally outside of Dublin.
On the issue of commercial rates, the Deputy may wish to address my colleague the Minister for Housing, Planning and Local Government. He may also wish to note that the vacant site levy of up to 3% of the market value of such sites which exceed 0.05 hectares in area, that was legislated for in the Urban Regeneration and Housing Act 2015 is scheduled to come into operation in 2019. I am advised that this levy may be charged in any area identified by elected members of a planning authority as being in need of regeneration in their local development plan or local area plan, and it will apply to both private property and state owned property (other than land owned by a local authority for housing purposes).
194. Deputy Tony McLoughlin asked the Minister for Finance to include Sligo in the living city initiative scheme; and if he will make a statement on the matter. [9654/16]
View answerThe Living City Initiative was enacted in the Finance Act 2013 and commenced on 5th May 2015. This Initiative has been extended beyond the original planned pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny as well. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analysis.
The Initiative targets particular areas of the cities which are most in need of regeneration, especially inner city areas, which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use.
The Government has committed, in the recently published Programme for Partnership Government, to examine the introduction of a similar scheme to the "Living City Initiative" to regenerate town centres and villages throughout Ireland. Any announcements in relation to the Initiative will be made in the context of the Budget and Finance Bill.
195. Deputy Stephen S. Donnelly asked the Minister for Finance the value of tax on fuel collected in each of the years 2011 to 2016 to date; and if he will make a statement on the matter. [9682/16]
View answerI am advised by the Revenue Commissioners that the Mineral Oil Tax, Carbon Tax and VAT collected on Petrol and Auto Diesel for the years 2011 to 2015 and the period January to April 2016 is shown in the table following. The receipts shown for 2016 are provisional at this time.
|
Petrol |
Mineral Oil Tax |
Carbon |
VAT |
Total |
|
|
€m |
€m |
€m |
€m |
|
2011 |
992.1 |
60.1 |
473.0 |
1,525.2 |
|
2012 |
903.5 |
74.6 |
505.2 |
1,483.3 |
|
2013 |
849.8 |
69.6 |
463.5 |
1,382.9 |
|
2014 |
799.1 |
65.7 |
423.0 |
1,287.7 |
|
2015 |
767.9 |
62.3 |
364.1 |
1,194.3 |
|
2016 (4 Mths) |
269.0 |
19.6 |
115.1 |
403.7 |
|
Auto Diesel |
Mineral Oil Tax |
Carbon |
VAT |
Total |
|
|
€m |
€m |
€m |
€m |
|
2011 |
1,078.3 |
97.5 |
64.1 |
1,239.8 |
|
2012 |
1,071.4 |
130.8 |
74.3 |
1,276.5 |
|
2013 |
1,133.5 |
137.2 |
75.4 |
1,346.1 |
|
2014 |
1,181.6 |
144.9 |
77.1 |
1,403.6 |
|
2015 |
1,307.8 |
158.1 |
73.6 |
1,539.5 |
|
2016 (4 Mths) |
490.0 |
54.8 |
23.9 |
568.7 |
Please note that the VAT receipts are estimated, as the VAT returns do not require the yield from a particular activity or sub-sector of trade to be identified and the actual VAT yield for each category cannot therefore be determined.
196. Deputy John McGuinness asked the Minister for Finance the employment status of persons working for a company (details supplied); if their employment is deemed to be contract or self-employment; and if Department of Social Protection benefits apply to these persons. [9747/16]
View answerI am advised by Revenue that the employment status of persons working for any particular company or business depends on the nature of their engagement with the company or business concerned. For reasons of taxpayer confidentiality, Revenue is not in a position to provide information for the company concerned in the Deputy's question.
Information on the tax treatment that applies in different scenarios in respect of services provided by companies in the sector concerned is available on the Revenue website at http://www.revenue.ie/revsearch/search?q=42.4.55&btnSearch=Find.
I am advised by the Department of Social Protection that self-employed persons are liable for PRSI at the class S rate. This entitles them to access valuable long-term benefits including the State pension (contributory), widow's, widower's and surviving civil partner's contributory pension and maternity benefit.
If a worker has concerns as to the appropriateness of contractual arrangements in this or other specific cases, which would have tax or PRSI implications, either s/he or those with such concerns should bring them to the attention of the Revenue Commissioners or the Department of Social Protection, and they will be examined. Any communication in this regard may, if preferred, be made on a confidential basis.
197. Deputy Brendan Griffin asked the Minister for Finance his views on a matter raised by a person (details supplied); and if he will make a statement on the matter. [9702/16]
View answerAny mortgage account which is currently subject to mortgage interest relief will continue to be so entitled up until 31 December 2017. The amount of relief payable will be calculated based on the amount of interest actually paid by the borrower on the loan within that period and subject to the ceilings and rates applicable to the loan borrower.
On foot of a change I introduced in Budget 2012, first time buyers who bought at the height of the property boom between 2004 and 2008 receive a rate of mortgage interest relief of 30%. This 30% rate will continue to be applicable to these first-time buyers for the remaining years that mortgage interest relief continues to be available i.e. up to the end of 2017. In the absence of this change the mortgage interest relief available would have gradually reduced to a rate of 15%.
Single individuals, married couples and civil partners that are first-time buyers, qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to ceilings of €3,000 and €6,000 respectively.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who move in to the eighth and subsequent years of their loans. It is worth noting that the application of the ceilings already work to reduce the relief available in a gradual manner. In addition, as the amount of interest payable reduces as a mortgage is paid down, the level of mortgage interest relief also reduces in tandem.
In the Programme for Partnership Government there is a commitment to retain mortgage interest relief beyond the current end date of December 2017 on a tapered basis. You will note that the current end date is December 2017 and the future of mortgage interest relief will be considered in due course.
198. Deputy Tom Neville asked the Minister for Finance if he will examine the case of a person (details supplied). [9773/16]
View answerI am advised by Revenue that the tax affairs of the person concerned were reviewed in February for the years 2012 to 2015 inclusive and tax and Universal Social Charge that had been deducted was repaid in full.
A claim for repayment must be made within four years of the end of the tax year concerned and so it is not possible at this stage to review the positon for years before 2012.
Revenue will make contact on the lines requested to provide any additional clarification required.
199. Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied that economic progress will continue; if the cost base is and will remain competitive; and if he will make a statement on the matter. [9762/16]
View answerAs I have already said to this House last month on the presentation of the Stability Programme Update, I am greatly encouraged by recent data showing that the recovery is gaining momentum. The Irish economy is growing at the fastest rate in Europe - with growth of 7.8 per cent recorded in 2015 and my Department's forecast is that the economy will grow by 4.9 per cent in 2016. Furthermore, over the remainder of the forecast horizon out to 2021, potential growth rates are forecast to average around 3.5 per cent per annum.
Importantly, the expansion in economic activity, initially led by the exporting sectors, has broadened with growth now increasingly driven by domestic factors. This is crucial as domestic sectors are both jobs-rich and tax-rich.
Meanwhile, the external sector remains strong with exports increasing by 13.8 per cent in 2015. The competitiveness gains achieved since 2008 have been the result of productivity improvements and wage and price moderation. It is important that these gains are maintained, to support continued growth through both foreign direct and indigenous investment.
The recovery is most clearly evident in the labour market where we have now seen thirteen successive quarters of employment growth. In 2015, employment increased by 2.6% - representing an additional 50,000 jobs. As a result, the latest data show the unemployment rate has fallen to 8.4 per cent at the end of April, the lowest level since 2008.
The SPU recognises that there are nevertheless several sources of uncertainty at present. In particular, there is uncertainty surrounding the continuing economic slowdown of several Emerging Market Economies (EMEs) and the effect this will have on the global economy. Additionally with the forthcoming referendum on the UK's membership of the European Union on the horizon, Ireland is potentially more exposed than most to a UK exit.
This uncertainty highlights the importance of prudent management of the public finances and of competitiveness-oriented policies that would help the Irish economy to weather any global economic downturn that may emerge.
In summary, I am confident that significant economic progress can continue to be made in the years ahead. However, this is contingent upon implementing appropriate polices. That is what the Government intends to do.
200. Deputy Bernard J. Durkan asked the Minister for Finance if he is monitoring the implications for this jurisdiction of an exit by the UK from the EU; and if he will make a statement on the matter. [9763/16]
View answerThe Government's position on developments in relation to British membership of the EU has been clearly articulated, in particular by the Taoiseach and the Minister of Foreign Affairs and Trade: we very much want the UK to remain an integral member of the Union.
This is important for both our economy and the ongoing development of the excellent bilateral relations Ireland and the UK now enjoy; independent research indicates that Ireland is the EU Member State which would be most affected by any change in the EU/UK relationship.
In addition to the important bilateral considerations, we also believe that the EU itself is stronger and more effective with the UK as a member.
The UK's continued membership of the Union is therefore a matter of strategic importance for the Government. In this regard, Government Departments, including my own, have been working on this matter for some time. Under the Department of Finance/Economic and Social Research Institute (ESRI) research programme agreement, my Department commissioned research to be undertaken on scoping the potential economic implications on Ireland of a change in the EU/UK relationship. The research was published on 5 November 2015 and is an important contribution to understanding the potential issues arising.
My Department, and other Government Departments, are continuing our assessment of all the issues involved in protecting Ireland's interests and we are continuing to explore the potential risks and to plan accordingly in the period up to 23 June 2016.
