Written Answers Nos. 80-99
80. Deputy Pearse Doherty asked the Minister for Finance the value of investments the Ireland Strategic Investment Fund has made in companies involved in hydraulic fracturing here or elsewhere; and if he will make a statement on the matter. [17948/16]
View answerThe Ireland Strategic Investment Fund's (ISIF) has some limited exposure to companies involved in hydraulic fracturing in its global portfolio. The global portfolio is a transition portfolio the purpose of which is to manage the legacy assets inherited from its predecessor fund, the National Pensions Reserve Fund (NPRF) as the Fund transitions fully into Irish assets. 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. In the absence of a globally accepted methodology or definition of companies involved in hydraulic fracturing, a preliminary and unaudited estimation of the Fund's current exposure to these types of companies is approximately €8m. This represents 0.1% of the Fund's investments.
81. Deputy David Cullinane asked the Minister for Finance the income, gains and taxable income of companies that filed a return on corporation tax, by range of tax liability band (details supplied) in each of the years 2008 to 2014 in tabular form. [18015/16]
View answerI am informed by Revenue that the tables below show, by range of tax liability, the net trading income, net chargeable gains and taxable income of companies that filed a Corporation Tax return in each of the years 2008 -2014. I am advised, following an extensive review of Revenue data, that the taxable income information is not available for the year 2008.
The Deputy may wish to note that tax liability is calculated on the basis of applying the various Corporation Tax rates to trading and non-trading profits and incomes of companies and allows for the deduction of certain reliefs, allowances and credits at various points in the calculation process. This calculation process is outlined in detail on the Revenue website under the heading Corporation Tax Calculation at http://www.revenue.ie/en/about/statistics/corporation-tax-calculation.html.
Corporation Tax For The Tax Year 2008 (Taxable Income Not Available)
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
|
No Net Liability |
7,058 |
123 |
|
€1 - €25,000 |
8,141 |
53 |
|
€25,001 - €50,000 |
1,636 |
24 |
|
€50,001 - €75,000 |
777 |
25 |
|
€75,001 - €100,000 |
672 |
14 |
|
€100,001 - €200,000 |
2,295 |
64 |
|
€200,001 - €300,000 |
933 |
34 |
|
€300,001 - €400,000 |
783 |
183 |
|
€400,001 - €500,000 |
446 |
15 |
|
€500,001 - €600,000 |
285 |
38 |
|
€600,001 - €700,000 |
234 |
29 |
|
€700,001 - €800,000 |
850 |
14 |
|
€800,001 - €900,000 |
128 |
5 |
|
€900,001 - €1,000,000 |
187 |
17 |
|
€1,000,001 - €5,000,000 |
3,114 |
143 |
|
€5,000,001 - €10,000,000 |
1,810 |
45 |
|
over €10,000,000 |
13,593 |
370 |
|
Total |
42,941 |
1,195 |
Corporation Tax Liability For The Tax Year 2009
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
4,285 |
59 |
1,729 |
|
€1 - €25,000 |
1,462 |
21 |
1,280 |
|
€25,001 - €50,000 |
798 |
16 |
962 |
|
€50,001 - €75,000 |
483 |
13 |
470 |
|
€75,001 - €100,000 |
330 |
4 |
333 |
|
€100,001 - €200,000 |
1,432 |
25 |
1,027 |
|
€200,001 - €300,000 |
980 |
11 |
641 |
|
€300,001 - €400,000 |
755 |
22 |
691 |
|
€400,001 - €500,000 |
382 |
4 |
396 |
|
€500,001 - €600,000 |
368 |
10 |
384 |
|
€600,001 - €700,000 |
361 |
5 |
400 |
|
€700,001 - €800,000 |
256 |
14 |
301 |
|
€800,001 - €900,000 |
737 |
9 |
256 |
|
€900,001 - €1,000,000 |
331 |
4 |
330 |
|
€1,000,001 - €5,000,000 |
7,577 |
97 |
5,715 |
|
€5,000,001 - €10,000,000 |
3,840 |
36 |
3,578 |
|
over €10,000,000 |
26,485 |
86 |
19,264 |
|
Total |
50,860 |
435 |
37,756 |
Corporation Tax Liability For The Tax Year 2010
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
3,731 |
87 |
3,354 |
|
€1 - €25,000 |
1,247 |
33 |
1,113 |
|
€25,001 - €50,000 |
766 |
9 |
616 |
|
€50,001 - €75,000 |
395 |
13 |
428 |
|
€75,001 - €100,000 |
359 |
5 |
304 |
|
€100,001 - €200,000 |
2,792 |
15 |
1,158 |
|
€200,001 - €300,000 |
617 |
4 |
586 |
|
€300,001 - €400,000 |
516 |
0 |
504 |
|
€400,001 - €500,000 |
892 |
- |
365 |
|
€500,001 - €600,000 |
338 |
7 |
353 |
|
€600,001 - €700,000 |
414 |
10 |
436 |
|
€700,001 - €800,000 |
374 |
3 |
316 |
|
€800,001 - €900,000 |
247 |
11 |
277 |
|
€900,001 - €1,000,000 |
668 |
6 |
651 |
|
€1,000,001 - €5,000,000 |
8,156 |
111 |
6,425 |
|
€5,000,001 - €10,000,000 |
3,490 |
- |
2,928 |
|
over €10,000,000 |
29,637 |
1 |
21,402 |
|
Total |
54,638 |
316 |
41,216 |
Corporation Tax Liability For The Tax Year 2011
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
2,887 |
121 |
2,341 |
|
€1 - €25,000 |
1,914 |
16 |
1,177 |
|
€25,001 - €50,000 |
749 |
9 |
640 |
|
€50,001 - €75,000 |
814 |
5 |
839 |
|
€75,001 - €100,000 |
292 |
4 |
280 |
|
€100,001 - €200,000 |
1,578 |
12 |
1,027 |
|
€200,001 - €300,000 |
543 |
13 |
601 |
|
€300,001 - €400,000 |
735 |
3 |
518 |
|
€400,001 - €500,000 |
381 |
8 |
490 |
|
€500,001 - €600,000 |
346 |
4 |
374 |
|
€600,001 - €700,000 |
393 |
6 |
336 |
|
€700,001 - €800,000 |
432 |
7 |
280 |
|
€800,001 - €900,000 |
218 |
2 |
230 |
|
€900,001 - €1,000,000 |
427 |
0 |
374 |
|
€1,000,001 - €5,000,000 |
7,931 |
122 |
5,937 |
|
€5,000,001 - €10,000,000 |
4,265 |
27 |
2,765 |
|
over €10,000,000 |
31,942 |
7 |
21,855 |
|
Total |
55,846 |
366 |
40,063 |
Corporation Tax Liability For The Tax Year 2012
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
6,334 |
59 |
3,356 |
|
€1 - €25,000 |
1,989 |
23 |
1,573 |
|
€25,001 - €50,000 |
730 |
7 |
685 |
|
€50,001 - €75,000 |
364 |
3 |
380 |
|
€75,001 - €100,000 |
290 |
5 |
305 |
|
€100,001 - €200,000 |
1,930 |
47 |
1,022 |
|
€200,001 - €300,000 |
650 |
5 |
610 |
|
€300,001 - €400,000 |
529 |
5 |
498 |
|
€400,001 - €500,000 |
413 |
3 |
426 |
|
€500,001 - €600,000 |
401 |
11 |
399 |
|
€600,001 - €700,000 |
506 |
6 |
392 |
|
€700,001 - €800,000 |
378 |
3 |
327 |
|
€800,001 - €900,000 |
681 |
- |
264 |
|
€900,001 - €1,000,000 |
290 |
1 |
246 |
|
€1,000,001 - €5,000,000 |
7,769 |
61 |
6,196 |
|
€5,000,001 - €10,000,000 |
3,467 |
21 |
2,866 |
|
over €10,000,000 |
31,138 |
0 |
23,698 |
|
Total |
57,858 |
260 |
43,243 |
Corporation Tax Liability For The Tax Year 2013
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
2,124 |
344 |
2,391 |
|
€1 - €25,000 |
4,556 |
16 |
3,059 |
|
€25,001 - €50,000 |
718 |
6 |
648 |
|
€50,001 - €75,000 |
503 |
5 |
447 |
|
€75,001 - €100,000 |
333 |
4 |
493 |
|
€100,001 - €200,000 |
1,979 |
10 |
1,129 |
|
€200,001 - €300,000 |
814 |
9 |
681 |
|
€300,001 - €400,000 |
1,237 |
7 |
650 |
|
€400,001 - €500,000 |
490 |
3 |
429 |
|
€500,001 - €600,000 |
803 |
0 |
508 |
|
€600,001 - €700,000 |
376 |
1 |
326 |
|
€700,001 - €800,000 |
345 |
4 |
278 |
|
€800,001 - €900,000 |
297 |
- |
237 |
|
€900,001 - €1,000,000 |
286 |
3 |
213 |
|
€1,000,001 - €5,000,000 |
7,094 |
33 |
5,197 |
|
€5,000,001 - €10,000,000 |
4,796 |
42 |
3,570 |
|
over €10,000,000 |
30,407 |
158 |
20,208 |
|
Total |
57,160 |
646 |
40,462 |
Corporation Tax Liability For The Tax Year 2014
|
Range Of Tax Liability |
Net Trading Income - €m |
Net Chargeable Gains - €m |
Net Taxable Income - €m |
|
No Net Liability |
2,010 |
28 |
3,645 |
|
€1 - €25,000 |
2,260 |
25 |
2,200 |
|
€25,001 - €50,000 |
956 |
7 |
818 |
|
€50,001 - €75,000 |
3,592 |
5 |
878 |
|
€75,001 - €100,000 |
430 |
6 |
476 |
|
€100,001 - €200,000 |
1,879 |
27 |
1,222 |
|
€200,001 - €300,000 |
1,566 |
8 |
1,024 |
|
€300,001 - €400,000 |
589 |
10 |
725 |
|
€400,001 - €500,000 |
585 |
5 |
551 |
|
€500,001 - €600,000 |
642 |
6 |
404 |
|
€600,001 - €700,000 |
518 |
12 |
458 |
|
€700,001 - €800,000 |
327 |
2 |
320 |
|
€800,001 - €900,000 |
554 |
6 |
372 |
|
€900,001 - €1,000,000 |
247 |
5 |
271 |
|
€1,000,001 - €5,000,000 |
11,041 |
106 |
7,613 |
|
€5,000,001 - €10,000,000 |
6,261 |
40 |
4,138 |
|
over €10,000,000 |
31,658 |
306 |
25,590 |
|
Total |
65,117 |
604 |
50,703 |
82. Deputy Charlie McConalogue asked the Minister for Finance the number of persons who availed of tax relief under the disabled drivers and disabled passengers scheme in each of the years 2013 to 2016 to date by county in tabular form; and if he will make a statement on the matter. [18038/16]
View answerI am advised by Revenue that the number of persons that availed of relief from VRT and VAT under the Disabled Drivers & Passengers Scheme, in each of the years 2013, 2014, 2015 and to date in 2016 is as follows:
|
County |
2013 |
2014 |
2015 |
2016 |
|
Carlow |
37 |
41 |
40 |
24 |
|
Cavan |
66 |
82 |
95 |
43 |
|
Clare |
179 |
198 |
211 |
138 |
|
Cork |
796 |
835 |
926 |
635 |
|
Donegal |
174 |
261 |
219 |
166 |
|
Dublin |
701 |
818 |
871 |
596 |
|
Galway |
365 |
415 |
453 |
306 |
|
Kerry |
160 |
187 |
217 |
118 |
|
Kildare |
120 |
130 |
141 |
83 |
|
Kilkenny |
90 |
73 |
87 |
69 |
|
Laois |
38 |
58 |
63 |
44 |
|
Leitrim |
50 |
54 |
69 |
29 |
|
Limerick |
238 |
291 |
287 |
212 |
|
Longford |
35 |
33 |
40 |
14 |
|
Louth |
132 |
170 |
191 |
111 |
|
Mayo |
226 |
272 |
320 |
202 |
|
Meath |
161 |
152 |
180 |
90 |
|
Monaghan |
66 |
69 |
72 |
50 |
|
Offaly |
50 |
51 |
58 |
42 |
|
Roscommon |
92 |
94 |
117 |
79 |
|
Sligo |
83 |
103 |
134 |
63 |
|
Tipperary |
162 |
192 |
221 |
145 |
|
Waterford |
93 |
92 |
114 |
79 |
|
Westmeath |
54 |
66 |
66 |
38 |
|
Wexford |
111 |
165 |
137 |
92 |
|
Wicklow |
78 |
95 |
111 |
77 |
|
Total |
4,357 |
4,997 |
5,440 |
3,545 |
83. Deputy Aengus Ó Snodaigh asked the Minister for Finance the amount of value added tax the Revenue Commissioners has levied from the public making text donations to charities in each of the years 2013 to 2016 to date. [18050/16]
View answer84. Deputy Aengus Ó Snodaigh asked the Minister for Finance why the Revenue Commissioners levies tax on text charity donations but not on other donations and refunds tax for donations over €250. [18051/16]
View answer85. Deputy Aengus Ó Snodaigh asked the Minister for Finance if he will consider changing the legislation by which the Revenue Commissioners levies tax from charitable donations made by text so that charities do not get penalised for using this mechanism for fundraising. [18052/16]
View answerI propose to take Questions Nos. 83 to 85, inclusive, together.
I am advised by Revenue that charitable donations are outside the scope of VAT. This means that VAT does not apply to such donations. In the case of charitable donations made by text, where the full amount of the donation is passed over directly to the charity concerned, the entire amount is deemed outside the scope of VAT. In circumstances where a telecommunications provider charges a fee for their services, the fee is liable to VAT at the standard rate, currently 23%, while the monies that are transferred to the charity are outside the scope of VAT.
VAT returns do not require the yield from a particular product or activity to be identified and therefore it is not possible to provide details of VAT returned in respect of any fees charged by telecommunications providers for charitable donations.
The VAT treatment of charitable donations made by text message is set out in Revenue's eBrief 100/14 which is available at http://www.revenue.ie/en/practitioner/ebrief/archive/2014/no-1002014.html.
86. Deputy Brendan Griffin asked the Minister for Finance how a person can claim the value added tax on fuel where they have been approved to drive an adapted car by the Revenue Commissioners; and if he will make a statement on the matter. [18111/16]
View answerThe Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs linked to the purchase and use of specially constructed or adapted vehicles by drivers and passengers with a disability. Under the terms of the scheme, a person can claim remission or repayment of vehicle registration tax (VRT), repayment of value-added tax (VAT) on the purchase of a vehicle and repayment of VAT on the cost of adapting a vehicle.
Since January 2015, a person who qualifies for tax relief under the scheme is also eligible for a fuel grant under the Disabled Drivers and Disabled Passengers Fuel Grant Regulations 2015. The Grant relates to fuel used during the previous 12 months in the transportation of the person with the disability and is paid in arrears. Full details of the scheme can be obtained in the VRT 7 information booklet on http://www.revenue.ie/en/tax/vrt/leaflets/index.html.
87. Deputy Michael McGrath asked the Minister for Finance if the practice of crowdfunding and peer-to-peer lending is regulated by the Central Bank; if he is aware of the extent of such practices here; and if he will make a statement on the matter. [18212/16]
View answerCrowdfunding is not currently a regulated activity in Ireland. In June 2014 the Central Bank of Ireland issued a Consumer Notice on Crowdfunding which alerts consumers to the fact that crowdfunding is not a regulated activity. The notice can be found via the following link: http://www.centralbank.ie/press-area/press-releases/Pages/ConsumerNoticeCrowdfunding.aspx. However, it should be noted that if a crowdfunding platform intends to offer ancillary services which are regulated (e.g. payment services), an authorization is needed only as far as these services are concerned, since these services may only be performed by banks or other authorized financial institutions. There are currently several crowdfunding platforms active in the Irish market and the Government recognises that crowdfunding can be a valuable source of funding for SMEs either as a complement to, or as an alternative to traditional bank finance. The European Commission recently published a detailed report which finds that several member states of the EU have developed, or are in the process of developing national regulatory regimes but currently there is no evidence of a firm proposal from the Commission to bring forward an EU regulatory initiative.
88. Deputy Jim Daly asked the Minister for Finance if he had any communication with the insurance industry in relation to the exorbitant rates being quoted to insure young drivers; the steps he will take to assist with the issue; and if he will make a statement on the matter. [18227/16]
View answerAs Minister for Finance, I am concerned that there should be a stable insurance sector and that the risk to policyholders and to the wider financial system are limited. An adequately-reserved, cost-competitive insurance sector is a vital component of economic activity and financial stability.
The current high cost of insurance is a concern for the Government. While the provision and pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures which may, in the longer term, lead to a better claims environment. This is a complex matter to address and it involves a number of Government Departments, State Bodies and private sector organisations. I have established a task force in my Department to undertake a Review of Policy in the Insurance Sector.
The first phase of the work of the task force is a Review of the Framework for Motor Insurance Compensation. This is being carried out jointly with the Department of Transport, Tourism and Sport. My colleague, the Minister for Transport, Tourism and Sport, and I expect to receive this first report shortly.
Separately, the broader work of the task force includes an examination of the factors underlying the recent increases in the cost of motor insurance but also including other aspects of insurance policy such as the availability of insurance at reasonable cost to particular businesses and sectors of the community which are reported to be having problems in this regard.
This work of the task force is being undertaken in consultation with the Central Bank of Ireland, other Government Departments, Agencies and interested bodies, including the insurance industry, as represented by Insurance Ireland. The aim of the review is to recommend measures to improve the functioning and regulation of the insurance sector in Ireland, identifying the issues that can be addressed on a more immediate basis and those that need more long-term policy implementation. This work will be completed over the coming months.
With regard to specific communications with the insurance industry regarding the cost of insurance, the Review of Policy in the Insurance Sector project is currently examining the Framework for Motor Insurance Compensation and there has been a number of meetings with the insurance industry, including the MIBI, focused on that element of the project. The next phase will involve in depth discussions with the industry on the drivers of insurance costs.
89. Deputy Pearse Doherty asked the Minister for Finance if the payment of a domicile levy here enables a person to claim exemption from tax liability in the United States of America under the double taxation clauses in the 1997 treaty between the two countries; and if he will make a statement on the matter. [18315/16]
View answer90. Deputy Pearse Doherty asked the Minister for Finance the number of cases in which Irish persons have attempted to claim exemption from foreign taxation on the basis that they have paid the domicile levy here; and if he will make a statement on the matter. [18316/16]
View answerI propose to take Questions Nos. 89 and 90 together.
I am informed by Revenue that the Irish taxes covered by the Ireland/United States double taxation treaty 1997 are income tax, corporation tax and capital gains tax and any identical or substantially similar taxes imposed after the date of signature of the treaty. This is provided for in Article 2 of the treaty, which deals with taxes covered. I am further informed that it has been the view of Revenue, since its introduction in 2010, that the domicile levy could not be regarded as a tax covered by that treaty. I am further informed that Revenue does not maintain a record of the number of cases, to the extent that such exist, of attempted claims to exemption from foreign taxation on the basis that the domicile levy has been paid in Ireland.
91. Deputy Pearse Doherty asked the Minister for Finance the number of persons who paid the domicile levy and the amount that was collected from the levy in 2015; his plans to increase the levy; and if he will make a statement on the matter. [18317/16]
View answerThe 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).
Domicile Levy returns for 2015 are not due to be filed until 31 October 2016 so there are no figures available as yet for that year.
The table 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 by Revenue.
|
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 |
Of the above, the total amount of domicile levy payments actually made in 2015 was €3,298,910. These payments were made by 18 individuals, some of whom paid the levy for more than one year. The table sets out the years for which domicile levy was paid in 2015 and the amounts related to each year. Late payments of the domicile levy would have been subject to a statutory interest charge.
|
Domicile levy year |
Amount of domicile levy paid |
|
2010 |
€427,717 |
|
2011 |
€600,000 |
|
2012 |
€200,000 |
|
2013 |
€207,199 |
|
2014 |
€1,863,994 |
|
Total |
€3,298,910 |
I have no plans at present to make changes to the domicile levy.
92. Deputy Éamon Ó Cuív asked the Minister for Finance when appeal hearings for tax relief for disabled drivers under the primary medical certificate scheme will be held in County Galway, given the unfairness of having persons with severe disabilities travelling to Dublin for hearings; why he does not facilitate hearings in regional areas on a regular basis; the number of appellants from County Galway who have had to travel to Dublin for hearings in each of the years 2014 to 2016 to date; and if he will make a statement on the matter. [18389/16]
View answerHearings of the Disabled Drivers Medical Board of Appeal are held on average twice a month at the National Rehabilitation Hospital in Dún Laoghaire, which has the facilities to cater for people with mobility impairing disabilities of the kind provided for under the Disabled Drivers and Disabled Passengers Scheme.
The Medical Board of Appeal holds regional clinics as demand arises. I'm informed that one clinic per year, for the past four years, has been held in Cork City. A regional clinic is scheduled for September this year in the Mercy University Hospital, Cork City. It is important that the Medical Board of Appeal conducts appeals in the appropriate clinical environment. As far as I'm aware there are no plans to hold a regional clinic in Galway this year.
I would point out that Regulation 6(1)(e) of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (S.I. 353 of 1994) provides that the Medical Board of Appeal is independent in the exercise of its functions.
It has not been possible in the time allowed for the Medical Board of Appeal to provide the number of appellants from County Galway who have attended appeal hearings in the National Rehabilitation Hospital, Dún Laoghaire from 2014 to date. However, I will ensure that this information is forwarded directly to the Deputy once it is available.
93. Deputy Thomas P. Broughan asked the Minister for Finance the number of workers who would be removed from liability if he increased the entry point of the universal social charge to €15,000 per year; and if he will make a statement on the matter. [18396/16]
View answerI am advised by Revenue that the additional number of persons who would become exempt from the Universal Social Charge (USC) if the current exemption threshold of €13,000 was increased to €15,000 would be in the order of 80,000 persons. This would result in an estimated 33% of income earners being exempt from the USC.
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.
94. Deputy Michael McGrath asked the Minister for Finance if the fiscal space of €1 billion for 2017 is estimated at before or after he takes account of the carry-forward impact of measures from budget 2016; and if he will make a statement on the matter. [18415/16]
View answerThe calculation underpinning the estimated €1 billion net fiscal space is illustrated in Table A2 on page 27 of the Summer Economic Statement. The discretionary measures as detailed in item 8 include the carry forward impact of tax measures from budget 2016.
By definition, expenditure measures are included in the base for the calculation of the following year's fiscal space.
I should point out that the exact impacts of carryover will be reviewed as part of the normal Budgetary process, as there are a lot of moving parts to be considered, such as economic growth, take up of various schemes and specific tax relevant factors, which could impact on the expected return from the measures.
95. Deputy Michael McGrath asked the Minister for Finance the yield from stamp duty on transfers of shares in Irish incorporated companies in each of the years from 2010 to 2015; and if he will make a statement on the matter. [18416/16]
View answerI am advised by Revenue that a breakdown of Stamp Duty receipts in tabular form is available at http://www.revenue.ie/en/about/statistics/receipts-stamp-duty.html including the years 2010 to 2015.
The Deputy may wish to note that the net receipt figures for Stamp Duty paid on share transactions includes all companies which are incorporated within the State.
96. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 120 of 21 June 2015 the number of settlements the Revenue Commissioners entered into for a sum greater than €100,000 and €500,000 respectively which resulted in non-publication by virtue of the provisions of section 1086 of the Taxes Consolidation Act 1997, in each of the years 2014 and 2015; and if he will make a statement on the matter. [18417/16]
View answerI am informed by Revenue that on foot of compliance interventions finalised in 2014 and 2015 the numbers of settlements which did not meet the criteria for publication are set out in the table:
|
Settlements greater than |
2014 |
2015 |
|
€100,000 |
658 |
666 |
|
€500,000 |
124 |
115 |
I am further informed that the main reasons why settlements in excess of €100,000 would not fall to be published are where the taxpayer has made a qualifying voluntary disclosure or where the matter relates to a technical adjustment, that is the additional tax liability arises due to a genuine mistaken interpretation or application of the legislation.
97. Deputy Michael McGrath asked the Minister for Finance the number of applications for a certificate of tax compliance which the Revenue Commissioners rejected in each of the years from 2011 to 2015; how the basis of rejection was broken down across the different categories of non-compliance; the number that related specifically to the local property tax; and if he will make a statement on the matter. [18419/16]
View answerI am advised by Revenue that the general scheme of tax clearance certification is provided for by Section 1095 of the 1997 Taxes Consolidation Act (as amended).
Revenue can not issue a Tax Clearance certificate where the applicant has not paid all tax, interest and penalties, or has not filed all tax returns that are correctly due. Revenue is also prevented from issuing a Tax Clearance certificate to a partnership unless each individual partner is fully tax compliant or, to a company unless the beneficial owner is fully tax compliant. Revenue will however issue a Tax Clearance certificate where the applicant files all outstanding returns and enters into a phased payment arrangement in respect of the liability.
Revenue has also advised that the tax clearance system is a highly automated process designed for rapid turnaround of applications and notification to the applicant where issues arise. In the vast majority of cases where it is not immediately possible to issue a tax clearance certificate, a mutually acceptable arrangement can be agreed and certification issued. This is particularly the case in respect of refusals related to Local Property Tax where more than 97% are very quickly rectified.
The table sets out the number of tax clearance applications that were rejected for the years 2011 to 2015 inclusive. The figures for 2013 to 2015 include 3,500, 14,000 and 12,000 rejections respectively on foot of LPT non-compliance.
|
Year |
No of Tax Clearance Applications Rejected |
% Rejected |
|
2011 |
46,314 |
22% |
|
2012 |
46,817 |
22% |
|
2013 |
48,046 |
21% |
|
2014 |
63,522 |
25% |
|
2015 |
53,501 |
21% |
98. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 107 of 16 June 2016, the number of claims motor insurance companies paid by amounts paid in respect of personal injuries, vehicle damage, legal fees and so on by year; and if he will make a statement on the matter. [18440/16]
View answerThe annual Private Motor Insurance Statistics report published by the Central Bank of Ireland is compiled from policy level data submitted by Insurance Ireland to the Central Bank. The most recent such Report which is for the year 2013 is available on the Central Bank's website at http://www.centralbank.ie/polstats/stats/motorins/Documents/Private%20Motor%20Insurance%20Statistics%202013.pdf.
I am informed by the Central Bank that it does not publish the number of claims that the total amount of motor liability claims pay-outs relate to. However, it stated that the annual Private Motor Insurance Statistics report does provide a significant amount of information in relation to motor insurance claims development costs.
I am further informed by the Central Bank that in the context of the data submitted to it by Insurance Ireland, it is not possible to obtain a comprehensive assessment of all costs and revenues relating to motor claims. This is because the submission from Insurance Ireland does not supply data on additional claims-related costs, including: estimates on the cost of claims incurred but not yet reported (IBNR) to insurers, changes in estimates of existing claims for prior year accidents and contributions to the claims against uninsured motorists paid to the Motor Insurers' Bureau of Ireland. Other costs not included are distribution, commissions, expenses, reinsurance and taxation.
Aside from the annual Private Motor Insurance Statistics Report a significant amount of additional claims data is available through the Central Bank's Insurance Statistical Review, Insurance Ireland's Annual Fact-file, the Companies Registration Office and commercial organisations who collate and sell claims data to interested parties.
As I have highlighted to the House previously, the lack of data presents difficulties from a policy analysis and development perspective in the area of insurance. The issues being examined in my Department's Review of Policy in the Insurance Sector includes the availability of data and the work of the task force will include examining options such as a national claims register and motor insurance policy data. This work will take into account what information is currently available and identify any shortfalls.
99. Deputy Thomas Pringle asked the Minister for Finance the impact the decline in returns on investments through low interest rates has had on the insurance industry and the huge hikes in insurance premiums that have been suffered by consumers; his plans to deal with unreasonable hikes; and if he will make a statement on the matter. [18514/16]
View answerDiffering reasons have been put forward by various interested parties to explain Ireland's current increasing insurance costs. Motor insurance appears to be particularly affected with the cost of premiums increasing significantly in the past twelve months.
Reasons often presented include the increased level of insurance claims and the increasing value of compensation awards. Others highlight that the highly competitive nature of the domestic market for non-life insurance in recent years has begun to impact on firms' underwriting profitability with underwriting losses reported in 2014 for a number of high-impact firms.
The Central Bank of Ireland has a statutory responsibility to ensure firms assess risks appropriately and offer insurance at a price that adequately takes into account the conditions prevailing in the market such as increasing claims costs. This ensures firms have the ability to pay all policyholders' claims without recourse to public or consumer funds. It does not have a statutory role in relation to setting premium prices.
In the Macro Finance Review for H1 2016 that was published on 14 June, the Central Bank highlighted a number of issues facing the non-life insurance sector, which included the impact of the low interest rate environment that has resulted in a fall in investment income which historically was used to offset underwriting losses. The report stated that the Bank believes investment income will continue to decline as proceeds from maturing assets are reinvested in lower yielding assets. The Report concluded that the domestic non-life insurance sector continues to face a difficult operating environment with all of the high-impact firms reporting underwriting losses in 2015 primarily due to current challenges in the Irish motor market. As a risk-sensitive regulatory framework, Solvency II, which came into effect on 1 January 2016, should strengthen insurers' resilience.
I am informed by the Central Bank that the decline in returns on investments through low interest rates has been a key theme in its engagement with the insurance industry for a number of years and forms a key part of its supervisory engagement with individual firms. The Opinion on Supervisory Response to a Prolonged Low Interest Rate Environment published by the European Insurance and Occupational Pensions Authority (EIOPA) in February 2013 required all National Competent Authorities to intensify the monitoring and supervision of insurance and reinsurance undertakings with exposure to the risks posed by a low interest rate environment.
To examine the issues affecting the cost of insurance in more detail and to assess what the options are for the Government, I have established a task force in my Department to undertake a Review of Policy in the Insurance Sector. The first phase of the work of the task force, which began in January 2016, is a review of the Framework for Motor Insurance Compensation. This is being carried out jointly with the Department of Transport, Tourism and Sport. This review also deals with broader issues around the Insurance Compensation Fund and its report will be submitted shortly to me and my colleague, the Minister for Transport, Tourism and Sport.
The broader work of the task force includes an examination of the issues debated during the Dáil Private Member's Motion of 8th and 9th of June. The work is being undertaken in consultation with the Central Bank of Ireland, other Government Departments, Agencies and interested bodies. The aim of the review is to identify the factors contributing to the increasing costs of insurance, and to recommend measures to improve the functioning and regulation of the insurance sector in Ireland, identifying the issues that can be addressed on a more immediate basis and those that need more long-term policy implementation.
This work will be completed over the coming months.
