Written Answers Nos. 84 - 91
84. Deputy Brian Stanley asked the Minister for Finance why a pension provider (details supplied) is still deducting a pension levy of 0.15% from 1 July 2016 from the Procter and Gamble Ireland defined benefit pension scheme as a result of the 2015 pension levy. [19925/16]
View answerI am advised by Revenue that the Pension Scheme Levy was introduced in 2011. For the years 2011, 2012 and 2013 the rate was 0.60% of the scheme assets. For the year 2014 the rate was 0.75% of the assets and for the year 2015, the final year of the levy, the rate was 0.15%. Under the legislation, the payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees or insurer to decide whether, when and how the levy should be passed on and to what extent, given the particular circumstances of the pension schemes for which they are responsible. However, the legislation also includes safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it must be applied in an equitable fashion across the different classes of scheme members that could include active, deferred and retired members. In no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy. With regard to the specific pension scheme that is the subject of this question, I am advised by Revenue that they have contacted the relevant administrator on this matter and the issue is being looked into by the administrator.
85. Deputy Jim O'Callaghan asked the Minister for Finance his proposals to consider introducing incentive schemes under the home renovation scheme which would provide tax relief for making homes safe such as by ensuring that gas pipes inside a house are a different colour to water pipes and to ensure that no accidental connections to the wrong pipe occur which would cause a serious accident. [19937/16]
View answer86. Deputy Jim O'Callaghan asked the Minister for Finance if he will consider introducing incentives in addition to the home renovation scheme which would permit persons to purchase a gas boiler directly from the supplier when replacing an old gas boiler to ensure that they get the boiler for the cheapest price, given that this would incentivise them to change their old gas boilers, thus promoting safety. [19938/16]
View answer87. Deputy Jim O'Callaghan asked the Minister for Finance if he will consider introducing additions to the home improvement scheme for the installation of triple glazed windows which would radically improve energy efficiency in homes. [19939/16]
View answerI propose to take Questions Nos. 85 to 87, inclusive, together.
The Home Renovation Incentive provides tax relief by way of a tax credit at 13.5% of qualifying expenditure on repairs, renovations and improvement works on a person's main home or rental property. Works such as the replacement of a gas boiler, replacement of pipes or the installation of triple-glazed windows come within the terms of the Incentive, where they otherwise meet the qualifying conditions.
While promoting the repair, renovation and improvement of properties, the incentive is designed in such a way to ensure that works are carried out by tax compliant contractors and that property owners comply with their LPT obligations. When engaging a contractor, it is a matter for each property owner to secure terms which are considered most favourable to the property owner. This scheme does not cover the purchase of building goods by a taxpayer directly from suppliers.
As the works mentioned come within the terms of the Incentive, where they otherwise meet the qualifying conditions, I have no plans to amend the Incentive along the lines suggested by the Deputy.
The Home Renovation Incentive has been very successful to date, and is due to expire at the end of 2016.
88. Deputy Pearse Doherty asked the Minister for Finance if he is aware of an increase in incidences of workers who are resident in the South and employed in the North being stopped by customs officials for suspected non-payment of vehicle registration tax in respect of vehicles which, as part of an employment entitlement, are registered in the North and have been provided to them through a rental scheme administered by a third party on behalf of their employer; the efforts being made by customs officials to afford such workers, who have applied for the relevant tax exemption and are awaiting for a decision in respect of an appeal, the opportunity to have their cases determined in a timely and just manner; and if he will make a statement on the matter. [19974/16]
View answerRevenue has responsibility for the ongoing enforcement of the regulations relating to Vehicle Regulation Tax (VRT) payable on the registration of motor vehicles within the State. I am advised by Revenue that there has been no particular increase in the enforcement activity undertaken in relation to VRT matters.
There is a provision whereby a State resident who is employed by an employer established in another Member State who provides a vehicle as part of the contract of employment may, on application to Revenue, be approved to use a VRT Category "A" (passenger) vehicle registered in another Member State (either owned or leased by the employer) for business/private use in the State. The vehicle must be used principally for business use in the other Member State. I am advised by Revenue that there is no particular delay in processing approval applications that fall within the scope of the Regulations.
Sections 145 and 146 of the Finance Act, 2001 provides for an appeal should an approval application be refused. A Public Notice entitled "Appeal Procedures relating to Vehicle Registration Tax" is available to view on the Revenue website at www.revenue.ie. This leaflet outlines in general term the types of appeals that are permitted under the provisions of Sections 145 and 146, the procedures and time limits involved. Where application is refused by Revenue and the applicant avails of the option to appeal to the Tax Appeals Commission (TAC), such an appeal will take time to process by the TAC.
89. Deputy Niall Collins asked the Minister for Finance the cost of increasing the earned income tax credit for eligible self-employed persons in 2017 to €1,100 and €1,650, respectively; and if he will make a statement on the matter. [20000/16]
View answerA Post-Budget 2016 Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's question, this Ready Reckoner shows a wide range of detailed information, including, on Page 6, the estimated cost to the Exchequer of changes to the earned income tax credit.
All figures provided in the Ready Reckoner are estimates for 2016 incomes 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 provisional and may be revised.
90. Deputy Niall Collins asked the Minister for Finance the cost of increasing the €150,000 annual investment limit for persons to €200,000, €250,000 and €500,000; under the employment and investment incentive scheme; and if he will make a statement on the matter. [20002/16]
View answerThe annual investment limit per individual for the Employment and Investment Incentive is €150,000. This limit was increased from €31,750 in Finance Act 2007, when the Incentive was known as the Business Expansion scheme.
The Deputy may be aware that all of the relief available under the EII was removed from the scope of the High Earners Restriction for a period of three years beginning in 2014. This change was made to encourage greater investments in SMEs, as the High Earners' Restriction effectively limits the amount of specified tax relief that can be claimed in a single tax year to €80,000 or 20% of an individual's adjusted income, whichever is greater.
The cost of increasing the annual investment limit to €200,000, €250,000 and €500,000 would depend on future investments that might exceed the existing annual investment level. I am informed by the Revenue Commissioners that there is no information available from returns filed which could assist with the prediction of potential increases in investments and thus the potential consequential costs to the Exchequer.
91. Deputy Niall Collins asked the Minister for Finance the cost of changing the current rate of capital gains tax for entrepreneurs to levels (details supplied) over a calendar year; and if he will make a statement on the matter. [20003/16]
View answerI am informed by the Revenue Commissioners that, as tax returns do not currently separately identify "entrepreneurial" gains from other gains, there are no data available to accurately cost these proposed measures. However, on the basis of making various assumptions, it is tentatively estimated that the costs of the changes proposed in the Deputy's question are as shown the table. It should be noted that given the limited information available to Revenue on the nature of entrepreneurial gains, the estimates provided will vary if different assumptions are employed or new data become available. In addition, these estimates assume no behavioural change.
|
Chargeable Business Assets up to Limit of |
Estimated Cost of 15% rate - (€m) |
Estimated Cost of 10% rate - (€m) |
|
€1 million |
10 |
21 |
|
€5 million |
40 |
60 |
|
€10 million |
45 |
65 |
|
€15 million |
47 |
68 |
