Michael Healy-Rae
Question:114. Deputy Michael Healy-Rae asked the Minister for Finance further to Parliamentary Question No. 110 of 21 June 2016, the status of the application; and if he will make a statement on the matter. [19250/16]
View answerDisabled Drivers and Passengers Scheme
Questions (114)
Written answers
As the Deputy is aware, the initial assessment for a Primary Medical Certificate takes place in the local HSE office of an applicant, where a professional clinical determination is made by the Senior Medical Officer of that HSE administrative area.
For those who wish to appeal the decision of their local Senior Medical Officer at their local HSE office, they must then attend an appointment with the Disabled Drivers Medical Board of Appeal at the National Rehabilitation Hospital in Dublin. Hearings of the Disabled Drivers Medical Board of Appeal are held on average twice a month at the National Rehabilitation Hospital, 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. Appellants may also attend the Board at one of its regional sittings. 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.
A panel of doctors on the Board of Appeal make clinical assessments as part of this appeals process. Appeals must be completed in the appropriate clinical environment, and cannot be undertaken in appellants' homes.
Regulation 6(1)(e) of the Disabled Drivers and Disabled Passengers (Tax Concession) Regulations 1994 (S.I. 353 of 1994) mandates that the Medical Board of Appeal is independent in the exercise of its functions, and I cannot intervene in individual appeals cases.
Property Tax Collection
Questions (115)
Aengus Ó Snodaigh
Question:115. Deputy Aengus Ó Snodaigh asked the Minister for Finance if payments of local property tax are still accepted in the post office; and if not, when this service was taken away. [19279/16]
View answerWritten answers
Revenue has confirmed that all payment options for Local Property Tax (LPT) continue to be available. This includes the options available through the approved Payment Service Providers (PSP's) who are An Post, Omnivend, Paypoint, and Payzone.
The PSP option is not and has never been available to owners of more than one residential property because Section 44 of the Finance (Local Property Tax) Act 2012 (as amended) provides that all such taxpayers must meet their LPT filing and payment obligations electronically.
Banking Sector Data
Questions (116)
Noel Grealish
Question:116. Deputy Noel Grealish asked the Minister for Finance the number of customers of a bank (details supplied) who have credit cards with an affinity to each of the universities, National University of Ireland Galway, Trinity College Dublin, University College Dublin, University College Cork, University of Limerick and Maynooth University, listed separately; the amount of money the bank donated to each university and-or the universities' alumni funds under this affinity scheme in each of the years 2013 to 2015, in tabular form; and if he will make a statement on the matter. [19058/16]
View answerWritten answers
I can confirm that the Department of Finance does not have access to the information requested by the Deputy. Officials in the Department of Finance have referred the Deputy's question to the bank and the bank has responded as follows:
"Disclosures to the market in relation to Bank of Ireland products and services are provided in the Bank of Ireland Group Annual Results 2015."
Tax Credits
Questions (117)
Mattie McGrath
Question:117. Deputy Mattie McGrath asked the Minister for Finance why a person who has made an e-workers allowance claim for working from home has been requested to submit utility bills and so on in order to process the claim; the relevant legislation that specifically states that utility bills and so on must be provided to process the claim; how some claims have been processed without providing this information; and if he will make a statement on the matter. [19061/16]
View answerWritten answers
In recognition of the fact that e-workers can incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs, an employer may make a payment of up to €3.20 per day to such employees without deducting PAYE, PRSI or USC. However, this does not prevent an employee making a specific expenses claim under Section 114 of the Taxes Consolidation Act (TCA) 1997 where the actual expenditure incurred wholly, exclusively and necessarily in the performance of the duties of the office or employment is in excess of this amount.
Where such a specific expenses claim by an e-worker relates to the cost of utilities, section 886A of the TCA 1997 obliges taxpayers to retain appropriate records in support of the claim and to retain those records for a period of 6 years after the year of assessment to which the claim relates. As with most tax reliefs, claims are processed on a self-assessment basis but Revenue may select particular claims for verification check as part of its compliance management process.
Disabled Drivers and Passengers Scheme
Questions (118)
Pat Deering
Question:118. Deputy Pat Deering asked the Minister for Finance why tax relief on vehicles purchased for use by persons with disabilities or their drivers is restricted to one vehicle per disabled person (details supplied); and if he will make a statement on the matter. [19094/16]
View answerWritten answers
As the deputy is aware, an application for tax relief in relation to an adapted vehicle for a disabled driver or disabled passenger who holds a primary medical certificate can only be made in relation to one vehicle.
The Revenue Commissioners advise me that in a 2014 case where a couple had separated, Revenue re-stated the legislative provision that tax relief under the scheme is confined to one vehicle used for the benefit of the person with the disability and that Revenue cannot accept a claim for VRT/VAT relief on a second vehicle within the period of time required to retain the approved vehicle. The period of time required to retain the vehicle varies from 3 years to 6 years, depending on the extent of adaptions made. The Revenue Commissioners have expressed the view that in cases where family members share the transport of the person with a disability, it is a reasonable expectation that the family members will come to an agreement amongst themselves as to which of them will avail of the scheme. There have been no similar cases since 2014.
Revenue Commissioners Staff
Questions (119)
Martin Ferris
Question:119. Deputy Martin Ferris asked the Minister for Finance if appointments to the Revenue Commissioners will continue to be available after the refurbishment works are completed at Spa Road, Tralee, County Kerry; and if staff and a local telephone number will be provided to facilitate appointments. [19115/16]
View answerWritten answers
The deployment of resources to its compliance and customer service programmes is a matter for the Revenue Commissioners.
I am advised by Revenue that the operation of its service delivery programme is subject to ongoing monitoring and adaptation to meet the changing demands of taxpayers. Revenue envisages the continuation of the appointment service at its Tralee Office, accessible via a local telephone contact number, after the current refurbishment works are completed.
Tax Reliefs Availability
Questions (120)
Jim O'Callaghan
Question:120. Deputy Jim O'Callaghan asked the Minister for Finance if he will consider introducing inheritance tax relief for persons who are not married and who are without children but who wish to bequeath their properties to nieces or nephews to bring them in line with the provisions in respect of bequests to children. [19120/16]
View answerWritten answers
I am informed by Revenue that, for the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum tax-free threshold known as the "group threshold" below which gift or inheritance tax does not arise.
There are, in all, three separate group tax-free thresholds based on the relationship of the beneficiary to the disponer.
Group A: €280,000 - applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
Group B: €30,150 - applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer.
Group C: €15,075 - applies in all other cases.
Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same group threshold is aggregated for the purposes of determining whether any tax is payable on the current benefit. Tax at the rate of 33% is payable on any excess received over the relevant tax-free threshold.
Ordinarily, a nephew or niece of a disponer is entitled to the Group B tax-free threshold of €30,150. However, a nephew or niece who has worked substantially on a full-time basis for a period of five years in carrying on, or assisting in the carrying on, of the trade, business or profession of the disponer, prior to the gift or inheritance is entitled to the Group A threshold for the purposes of computing the tax payable on any gift or inheritance received of the assets of that trade, business or profession. This relief is known as 'favourite nephew' relief but may apply equally to a nephew or niece.
In order for the nephew or niece to be deemed to be working substantially on a full-time basis in the business he or she must have, throughout the 5 year period, worked at least:
(a) 24 hours per week at the place where the business, trade or profession is carried on; or
(b) 15 hours per week at the place where the business, trade or profession is carried on in the case where it was carried on exclusively by the disponer, any spouse or civil partner of the disponer and the nephew or niece.
This specific relief is targeted at gifts or inheritances of business assets in circumstances where the nephew or niece has, by their continued presence on a weekly basis, placed their labour and expertise at the disposal of the disponer thereby ensuring that material benefit is conferred on the business.
I do not have any plans currently to extend the range of circumstances in which a niece or nephew would be entitled to the Group A threshold.
Vehicle Registration
Questions (121)
Peter Burke
Question:121. Deputy Peter Burke asked the Minister for Finance the reason for the delay in respect of vehicle registration tax, with garages in the midlands having to travel significant distances to meet officers; and if he will make a statement on the matter. [19149/16]
View answerWritten answers
I am informed by Revenue that they have checked with the service provider, Applus, about the Tullamore NCT Centre and, while the centre is busy, there are appointment slots available. I am also informed by Revenue that all of the NCT Centres in the midlands area provide a full VRT service and are likewise busy but with slots available. Unless they have a requirement for a very specific time slot that is not available at their local NCT Centre, it should not be necessary for garages to have to travel beyond their local area.
Mortgage Lending
Questions (122)
Pearse Doherty
Question:122. Deputy Pearse Doherty asked the Minister for Finance to provide the use of the exceptions under the Central Bank's lending rules by a bank (details supplied) by the amount under the loan-to-value rules, in tabular form; the amount under the loan-to-income rule and the amount that was granted to buy-to-let mortgages; and if he will make a statement on the matter. [19163/16]
View answerWritten answers
I have been informed by the bank referred to in your question that the detail you have requested is not publicly available. The bank's financial statements and investor presentations contain extensive disclosures in relation to the bank's credit risks relevant to shareholders. These documents and all other information required to be provided to shareholders is available on its website.
Information in relation to the bank's new mortgage lending in 2015 is also available in the bank's 2015 Financial Statements. I am further advised that the bank was compliant with the Central Bank of Ireland's macro prudential restrictions in the period up to December 2015 and that 11% of the qualifying loans were issued as exceptions under the Central Bank of Ireland's macro prudential rules.
Banking Sector Regulation
Questions (123)
Pat Deering
Question:123. Deputy Pat Deering asked the Minister for Finance the regulation and criteria for a person who wants to emigrate for transferring money to the country where the person wishes to reside. [19185/16]
View answerWritten answers
In general, I would advise customers to discuss their requirements with their bank because the Central Bank have informed me that some banks may apply limits to cash withdrawals in branches for security purposes. In this regard, it is up to each bank to decide how best to handle a cash management system including all associated security arrangements surrounding it and there are no Central Bank requirements which would prevent this.
However, I understand that this question concerns an individual who sought to withdraw money from an account in advance of emigrating to the UK and the request was refused although I do not have information on how the transfer or withdrawal was requested.
I would highlight to the Deputy that the individual concerned may wish to make a formal complaint regarding this matter to the bank in question and the Central Bank's Consumer Protection Code 2012 sets out timeframes within which a regulated entity must respond to complaints. If a customer has made a formal complaint to the financial service provider in question and is not satisfied with the outcome, I would suggest that they make a complaint to the Financial Services Ombudsman. The Deputy may wish to note that investigations by the Financial Services Ombudsman are free of charge to the customer.
Economic Statements
Questions (124)
Thomas P. Broughan
Question:124. Deputy Thomas P. Broughan asked the Minister for Finance when he will present a revised economic statement to Dáil Éireann given the market turmoil since the Brexit referendum result; and if he will make a statement on the matter. [19190/16]
View answerWritten answers
The Summer Economic Statement (SES) included a macroeconomic assessment of the impact of a UK decision to leave the European Union. This decision will have an adverse impact on the growth outlook. In this context, the more traditional exporting sectors are particularly exposed, especially to bilateral euro sterling exchange rate developments. My Department's initial estimate, based on the assessment in the SES, is that GDP growth could be about 0.5% lower than projected in 2017.
The fiscal space of just under €1 billion for 2017 set out in the Summer Economic Statement is not expected to change very much because the factors used to calculate it are largely fixed at this stage.
Looking to 2018 and beyond, the estimates of fiscal space depend on the impact on our macroeconomic and fiscal position. At this point, it is far too early to speculate on the potential impacts.
As noted in the Summer Economic Statement, the Department of Finance will prepare a full macroeconomic projection in advance of Budget 2017 in October, and this will include updated estimates of economic growth, the public finances and the fiscal space, taking account of developments up to that time, including the UK decision.
However, it is important to note that there is uncertainty around many aspects of the impact of the UK decision, and particularly the economic and fiscal impact.
As you are aware, a whole-of-government contingency framework has been put in place in response to the UK vote, within which key policy issues, including economic developments, will continue to be tracked and the Budget 2017 forecasts will be a critical part of that process.
Finally, the prudent economic and fiscal policies implemented over recent years have placed Ireland in a stronger position to weather this shock. Our economy is growing strongly, employment has increased for 14 successive quarters, unemployment has fallen to 7.8%, the deficit this year is expected to be 0.9%, and the debt has fallen from a peak of 120% to an expected 88% at the end of this year. The Government is confident that our economy is resilient and that appropriate economic and fiscal policies are in place to deal with the challenges arising.
UK Referendum on EU Membership
Questions (125)
Thomas P. Broughan
Question:125. Deputy Thomas P. Broughan asked the Minister for Finance to report on the impact of the Brexit result on the euro exchange rate and quantitative easing; and if he will make a statement on the matter. [19191/16]
View answerWritten answers
The result of the UK Referendum to leave the European Union has had market implications over the past week. This volatility in the markets, including the currency market, was not unexpected in the light of the uncertainty caused by the result.
The pound sterling to euro exchange rate experienced significant losses following the result on the referendum on Friday 24, which stabilised slightly on Tuesday 28. However, the rate had slight losses on Friday 1 July. The euro's exchange rate against the pound sterling continues to be largely driven by uncertainty related to the referendum. The magnitude of changes in EUR to USD have been much more modest.
Under the European Central Bank's (ECB's) Expanded Asset Purchase Programme, often referred to as "Quantitative Easing" (QE), the eurosystem (comprising the ECB and the national central banks of the euro area) has been purchasing €80 billion of public and private assets per month and plans to do so until at least March 2017, or until inflation returns to levels consistent with price stability, defined as inflation below, but close to, 2 per cent. Purchases of sovereign debt began on 9 March 2015.
It is important to note that monetary policy is a matter for the European Central Bank which is independent. The ECB has stated that it is closely monitoring financial markets and is in close contact with other central banks. The ECB has stated that it stands ready to provide additional liquidity, if needed, in euro and foreign currencies.
Customs and Excise Controls
Questions (126)
Brendan Howlin
Question:126. Deputy Brendan Howlin asked the Minister for Finance the number of drug detection dogs available to the customs service; the location of such dogs; his plans to deploy more drug detection dogs at the points of entry into this country; and if he will make a statement on the matter. [19243/16]
View answerWritten answers
I am advised by Revenue that their Customs Service currently deploys seventeen detector dog teams, nine of which have drug detection capabilities. These teams are located in different locations allowing coverage for all ports and airports based on operational and intelligence requirements.
Plans are being finalised to deploy an additional drug detector dog team.
Revenue is satisfied that the total number of dog units is sufficient for current day-to-day operations but this is kept under constant review.
Tax Code
Questions (127)
Joan Burton
Question:127. Deputy Joan Burton asked the Minister for Finance if he will commit to closing the dwelling house loophole in inheritance tax law that provides a particular benefit to wealthy families that are able to gift valuable residences free of taxation; and if he will make a statement on the matter. [19261/16]
View answerWritten answers
The dwelling house exemption is a provision of the capital acquisitions tax (CAT) legislation. It allows for the tax-free transfer by way of gift or inheritance of the residential property in which a beneficiary lives, subject to certain conditions. These conditions include a requirement that the beneficiary has been living in the property for three years prior to receiving it and that they remain living in the property for six years afterwards, except in certain special circumstances. It is also a condition of the relief that the beneficiary not be beneficially entitled to any other residential property at the time of the transfer.
The underlying purpose of the relief, which I consider to be reasonable, is to prevent so far as possible cases of hardship arising from a tax perspective when a person is gifted or inherits what is, in effect, their home. My Department and the Revenue Commissioners have encountered some evidence that individuals may be using the relief as a way of passing on wealth tax-free in a manner which is not in line with the core aim of the relief.
My Department and the Revenue Commissioners are currently working to gather and assess information relating to such possible practices and to consider whether the current scope of the relief is in line with its original spirit. The work of investigating this issue and developing potential policy responses is current and ongoing.
Tax Reliefs Eligibility
Questions (128)
Paul Kehoe
Question:128. Deputy Paul Kehoe asked the Minister for Finance if there are allowances available for capital acquisitions tax agricultural relief for persons (details supplied); and if he will make a statement on the matter. [19272/16]
View answerWritten answers
I am advised by Revenue that gifts and inheritances of agricultural property, including land, qualify for relief (known as 'agricultural relief') from the payment of Capital Acquisitions Tax (CAT) once certain conditions are satisfied. These conditions apply to anybody receiving a gift or inheritance of agricultural property and there are no specific allowances available for individuals with a disability.
Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for 'agricultural relief' which takes the form of a 90% reduction in the taxable market value of the gifted or inherited agricultural property. Arising from recommendations made as part of the Agri-Taxation Review in 2014, additional measures have since been introduced to ensure that tax-relieved agricultural land is used productively.
The requirement for a person who receives a gift or inheritance of agricultural property (the beneficiary) to have one of the specified agricultural qualifications (i.e. those listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) does not apply in all situations. Where the beneficiary does not have such a qualification, he or she has the alternative option of qualifying for agricultural relief by actively farming the agricultural land. A person is regarded as actively farming where he or she farms the land on a commercial basis for at least 50% of his or her normal working time for at least 6 years after receiving the gift or inheritance. However, instead of personally farming the land, a beneficiary may lease the land to another person who, in turn, actively farms the land.
Property Tax Exemptions
Questions (129, 130, 131, 132)
Darragh O'Brien
Question:129. Deputy Darragh O'Brien asked the Minister for Finance to instruct the Revenue Commissioners to grant a local property tax exemption to a person (details supplied) whose house has pyrite and who has sent relevant supporting independent documentation to the Revenue Commissioners but has yet to be granted the exemption; and if he will make a statement on the matter. [19275/16]
View answerDarragh O'Brien
Question:130. Deputy Darragh O'Brien asked the Minister for Finance to instruct the Revenue Commissioners to grant a local property tax exemption to a person (details supplied) whose house has pyrite and who has sent relevant supporting independent documentation to the Revenue Commissioners but has yet to be granted the exemption; and if he will make a statement on the matter. [19281/16]
View answerDarragh O'Brien
Question:131. Deputy Darragh O'Brien asked the Minister for Finance to instruct the Revenue Commissioners to grant a local property tax exemption to a person (details supplied) whose house has pyrite and who has sent relevant supporting independent documentation to the Revenue commissioners but has yet to be granted the exemption; and if he will make a statement on the matter. [19284/16]
View answerDarragh O'Brien
Question:132. Deputy Darragh O'Brien asked the Minister for Finance the requirements for a householder with pyrite to receive a local property tax exemption; and if he will make a statement on the matter. [19286/16]
View answerWritten answers
I propose to take Questions Nos. 129 to 132, inclusive, together.
The qualifying criteria in respect of the exemption from Local Property Tax (LPT) on foot of significant pyritic damage was amended by the Finance (Local Property Tax) (Amendment) Act 2015. The Act modified the qualifying criteria to include properties where:
1. a certificate of damage has been completed by a competent person as set down in I.S. 398-1.2013 or,
2. the property has been accepted into the pyrite remediation scheme operated by the Pyrite Resolution Board or,
3. an insurance company has remediated the property or provided sufficient funds to carry out the remediation or,
4. the person who built the property has remediated it or provided sufficient funds to carry out the remediation.
Property owners claiming the exemption under Criteria 1 must provide a certificate to Revenue, which is completed in accordance with I.S. 398-1.2013 as set down by the Minister for the Environment, Community and Local Government. Property owners claiming the exemption under Criteria 2 to 4 must provide appropriate supporting documentation. Once granted, the exemption becomes applicable from the following 1 November and normally remains in place for a period of seven years. The Act does not provide entitlement to the exemption for any years previous to a property being accepted as having significant pyritic damage. In regard to the specific cases mentioned by the Deputy, Revenue has advised me that the properties referred to in Questions 130 and 131 were certified as having significant pyritic damage in March 2015 and June 2015 respectively. In accordance with the legislation, the certification entitled the property owners to the exemption from 1 November 2015 for a period of six years, i.e. 2016 to 2022. It does not provide entitlement to the exemption for the years prior to certification, i.e. 2013 to 2015. The property owners were informed that the exemption had been granted in May 2016. The person referred to in Question No. 129 has just recently provided the required supporting documentation. Revenue will make direct contact with the person as soon as the documentation is evaluated.
Debt Collection
Questions (133)
Michael Healy-Rae
Question:133. Deputy Michael Healy-Rae asked the Minister for Finance the status of a debt collection company (details supplied); and if he will make a statement on the matter. [19320/16]
View answerWritten answers
Firstly, the Central Bank have confirmed that there is no entity named Pepper Debt Collections regulated by the Central Bank. The Deputy may be referring to Pepper Finance Corporation (Ireland) DAC ("Pepper") which is taken to be authorised to carry on the business of a retail credit firm having met the transitional provision for existing retail credit firms as set out in section 34E of the Consumer Protection (Regulation of Credit Servicing) Act 2015.
By virtue of their Retail Credit Firm authorisation, Pepper is permitted, among other things, to conduct credit servicing activity i.e. manage or administer loans either on its own behalf or on behalf of another firm
In the case where a mortgage loan is sold, it is important to remember that the mortgage terms and conditions including loan repayments continue to apply, regardless of who is servicing the mortgage loan. This includes any contractual terms relating to the return of title deeds. Further, the relevant consumer protections will continue to apply - including the Code of Conduct on Mortgage Arrears 2013 (CCMA) and Consumer Protection Code 2012.
Nonetheless, if a consumer is dissatisfied with how their account is being managed they may wish to make a formal complaint regarding this matter to Pepper. The Central Bank's Consumer Protection Code 2012 sets out timeframes within which a regulated entity must respond to complaints. If the consumer is not satisfied with the outcome of their complaint, they can refer the matter to the Financial Services Ombudsman. The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers which are regulated by the Central Bank.
Finally, you may wish to know that a searchable register of all entities regulated by the Central Bank is available here: http://registers.centralbank.ie/.
Tax Reliefs Application
Questions (134)
Peter Burke
Question:134. Deputy Peter Burke asked the Minister for Finance the taxation treatment of milk quota purchased by farmers in order for the sector to correctly claim tax write-offs; and if he will make a statement on the matter. [19322/16]
View answerWritten answers
I am advised by Revenue that section 669B of the Taxes Consolidation Act 1997 provided for a scheme of tax relief for milk quota purchased prior to the abolition of the EU milk quota regime in 2015. Capital allowances were available on a straight line basis at a rate of 15 per cent per annum over the initial 6 years and 10 per cent in year 7 in respect of qualifying capital expenditure incurred on the purchase of a milk quota. Writing down allowances are no longer available with effect from 2015 as a result of the abolition of the quota. However, in circumstances where a person has unused qualifying expenditure relating to a milk quota for which a writing down allowance has not been claimed, that person may be entitled to claim a balancing allowance for that expenditure. The amount of the allowance to be granted will equal the amount of the unused allowance.
Tax Credits
Questions (135, 136, 137)
Pearse Doherty
Question:135. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per year, resulting in no entitlement to these tax credits when income is in excess of €170,000. [19332/16]
View answerPearse Doherty
Question:136. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the personal, pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per year, resulting in no entitlement to these tax credits when income is in excess of €170,000 and introducing levies of 2% and 4% on income over €170,000. [19333/16]
View answerPearse Doherty
Question:137. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the pay as you earn and earned income credits by 5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000 and introducing levies of 2%, 4% and 5% on income over €140,000. [19334/16]
View answerWritten answers
I propose to take Questions Nos. 135 to 137, inclusive, together.
I am advised by the Revenue Commissioners that the estimated first and full year yields to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits per €1,000 on income between €100,000 and €170,000, resulting in no entitlement to these credits on income in excess of €170,000, are in the order of €279 million and €358 million respectively. The estimated total first and full year yields to the Exchequer of also introducing a levy of 2% on all income in excess of €170,000 are in the order of €343 million and €478 million respectively. The same credit tapering structure with a levy of 4% on all income in excess of €170,000 is estimated to generate a first and full year yield to the Exchequer of €407 million and €599 million respectively.
Tapering the PAYE and the Earned Income Credits on income between €100,000 and €140,000 would require a taper of 2.5% per €1,000. On that basis and on no entitlement to these credits on income in excess of €140,000, and also introducing a levy of 2% on all income in excess of €140,000 the estimated first and full year yields to the Exchequer are in the order of €205 million and €313 million respectively. The same credit tapering structure with a levy of 4% on all income in excess of €140,000 is estimated to generate first and full year yields to the Exchequer of €285 million and €463 million respectively. Again, using the same credit tapering structure, with a levy of 5% on all income in excess of €140,000, is estimated to generate a first and full year yield to the Exchequer of €324 million and €538 million respectively.
The estimates above have been generated by reference to 2016 incomes as calculated on the basis of actual data for the year 2013, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.
Finally, I have been advised by the Revenue Commissioners that, given the current tax structures, major issues would need to be resolved as to how in practice such a tapering of credits could be integrated into the current system and how this would affect the relative position of different types of income earners.
Tax Data
Questions (138)
Pearse Doherty
Question:138. Deputy Pearse Doherty asked the Minister for Finance regarding the CAT group A threshold, the total annual number of persons who availed of the group A threshold in each of the years from 2010 to 2014, in tabular form; the total value claimed through this threshold; and the total number of persons whose claims exceeded this threshold, broken down into regions (details supplied) as per the Revenue Commissioners organisational chart. [19337/16]
View answerWritten answers
I am advised by the Revenue Commissioners that, under the self-assessment system, an individual is required to submit a return reporting receipts by way of gift or inheritance at the point when their lifetime receipts exceed 80% of the relevant Capital Acquisitions Tax (CAT) lifetime tax-free threshold. The numbers filing such returns in relation to the Group A threshold in each of the years 2010 to 2014 are shown in the tables, broken down into Revenue administrative regions as requested by the Deputy.
It is important to note that, as the thresholds are lifetime amounts, the fact that a return has been filed in a particular year does not indicate that an amount equal to 80% of the threshold has been received in that year. There could have been a number of smaller receipts over a longer period.
The total value claimed through this threshold as requested by the Deputy is not readily available and could only be provided following a significant development of Revenue's Capital Acquisitions Tax statistical model.
The numbers who received gifts or inheritances in the Group A category which were liable to CAT in each year are also shown in the following tables. In these cases the threshold could have been exceeded by one receipt which is larger than the threshold or a portion of an individual's threshold may have been utilised in earlier years in connection with other gifts or inheritances received.
Figures for 2010 reflect only July to December information. Due to a changeover in Revenue systems pre-July data are not readily available.
2014
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|
Number filing returns availing of Group A threshold |
833 |
2,053 |
999 |
1,151 |
5,036 |
|
Number liable to CAT on a Group A receipt |
272 |
1,171 |
366 |
319 |
2,128 |
2013
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|
Number filing returns availing of Group A threshold |
830 |
1,786 |
997 |
1,106 |
4,719 |
|
Number liable to CAT on a Group A receipt |
220 |
850 |
305 |
244 |
1,619 |
2012
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|
Number filing returns availing of Group A threshold |
871 |
1,760 |
1,236 |
1,171 |
5,038 |
|
Number liable to CAT on a Group A receipt |
186 |
778 |
329 |
243 |
1,536 |
2011
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Sum |
|
Number filing returns availing of Group A threshold |
820 |
1,601 |
1,038 |
1,019 |
4,478 |
|
Number liable to CAT on a Group A receipt |
135 |
648 |
236 |
219 |
1,238 |
2010*
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Sum |
|
Number filing returns availing of Group A threshold |
268 |
436 |
380 |
374 |
1,458 |
|
Number liable to CAT on a Group A receipt |
50 |
178 |
87 |
65 |
380 |
* Contains only half year information due to a changeover in information technology systems