Written Answers Nos. 172-188
172. Deputy Niall Collins asked the Minister for Finance if help and advice can be provided to a person (details supplied); the protection they have from the vulture fund which now owns their loan; and if he will make a statement on the matter. [22091/16]
View answerThere are a number of legal protections available to a person when their loan has been sold on to a third party. The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 was enacted on 8 July 2015. It was introduced to fill a consumer protection gap that existed where loans were sold by the original lender to an unregulated firm. The 2015 Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'.
This ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes (such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears, Code of Conduct for Business Lending to Small and Medium Enterprises and the Minimum Competency Code) issued by the Central Bank of Ireland.
Additionally, following a review in 2015, the Central Bank Code of Conduct for Business Lending to Small and Medium Sized Enterprises has been strengthened resulting in the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which comes into operation on 1 July 2016. The aim of the Code and these Regulations is to facilitate access to credit, promote fairness and transparency, and provide a framework for dealing with financially difficult cases.
Purchasers of loan books must either be regulated by the Central Bank themselves or else the loans must be serviced by a credit servicing firm who is regulated by the Central Bank. Furthermore, it is important to highlight that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract.
The Credit Review Office has information available on its website for SMEs who have had their loans sold on, which may be of interest to the Deputy's constituent. This information is available via the following link: http://www.creditreview.ie/wp-content/uploads/2016/04/advice-for-SMEs-in-loan-portfolio-sale-feb2016.docx.
173. Deputy Pearse Doherty asked the Minister for Finance the revenue from tapering out the single personal, that is, no taper for married portion of credit entitlements €1,650 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 a levy of 2% and 4% on income over €170,000. [22095/16]
View answerI am advised by Revenue that the estimated first and full year yields to the Exchequer of tapering the Personal, PAYE and the Earned Income Credits per €1,000 of income between €100,000 and €170,000 in the manner specified by the Deputy (which would require a taper of approximately 1.43% per €1,000) and applying a 2% levy on income over €170,000 are in the order of €323 million and €401 million respectively.
The first and full year yields increase to €429 million and €545 million where a 4% levy on income over €170,000 is applied in addition to the tapering of credits as described.
In calculating the yield to the Exchequer, the Personal Credit tapering was limited on a pro-rata basis to a maximum of €1,650. Consequently the credit would not be fully extinguished for those with income greater than €170,000 and who currently benefit from a Personal Credit greater than €1,650, such as Married Couples/Civil Partners and Widows.
I have been advised by Revenue that, given the current tax structures, major issues would need to be resolved as to how in practice such a credit tapering could be integrated into the current system and how this would affect the relative position of different types of income earners.
The estimates above have been generated by reference to 2017 incomes as calculated on the basis actual data for the year 2014, 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.
The Deputy may wish to note that the annual update of the Tax Modeller application has now taken place. The Base Year dataset has been updated from 2013 to 2014, the latest year for which returns are now available. In addition, the reference year for which costs/yields are estimated, after adjustments for income, self-employment and employment trends in the interim, has been updated from 2016 to 2017. In advance of the updating of the model this year, an analysis of the First Year/Full Year apportionment of costs was also undertaken to ensure the estimated apportionment is as accurate as possible. It should be noted that this revision does not impact on the total cost/yield of a measure, it only changes the apportionment of the Exchequer impact over the first and second years in which it comes into effect.
174. Deputy Catherine Murphy asked the Minister for Finance his plans to amend the tax credits legislation to cater for cohabiting couples who are unable to benefit from the tax credit arrangements afforded to married couples where the available tax free allowance gives at least an extra €4,000 in tax free allowances and where cohabiting couples are prevented from claiming this even when living together and supporting a family; his further plans to amend this situation to make the tax credits equal among all citizens; and if he will make a statement on the matter. [22145/16]
View answerWhere a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for the purposes of income tax as a separate and unconnected individual. Because they are treated separately for tax purposes, tax credits, bands and reliefs cannot be transferred from one partner to the other. Cohabitants do not have the same legal rights and obligations as a married couple or couple in a civil partnership which is why they are not accorded similar treatment to couples who have a civil status that is recognised in law.
The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy v. Attorney General (1980). This decision was based on Article 41.3.1 of the Constitution where the State pledges to protect the institution of marriage. The decision held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income.
To the extent that there are differences in the tax treatment of the different categories of couples, such differences arise from the objective of dealing with different types of circumstances while at the same time respecting the Constitutional requirements to protect the institution of marriage. Any change in the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples.
From a practical perspective, it would be very difficult to administer a regime for cohabitants which would be the same as that for married couples or civil partners. Married couples and civil partners have a verifiable official confirmation of their status. It would be difficult, intrusive and time-consuming to confirm declarations by individuals that they were actually cohabiting. It would also be difficult to establish when cohabitation started or ceased.
There would also be legal issues with regard to 'connected persons'. To counter tax avoidance, 'connected persons' are frequently defined throughout the various Tax Acts. The definitions extend to relatives and children of spouses and civil partners. This would be very difficult to prove and enforce in respect of persons connected with a cohabiting couple where the couple has no legal recognition. There may be an advantage in tax legislation for a married couple or civil partners as regards the extended rate band and the ability to transfer credits. However, their legal status has wider consequences from a tax perspective both for themselves and persons connected with them.
175. Deputy Timmy Dooley asked the Minister for Finance the cost of extending the vehicle registration tax rebate for electric vehicles until 2017 and 2020 respectively. [22193/16]
View answerSection 62 of the Finance Act 2014 provided for an extension of the reliefs from Vehicle Registration Tax (VRT) available for electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles till 31 December 2016. The estimated cost of the exemption in 2015 was €2.7m, for 550 vehicles.
A further extension of this relief is a matter for consideration in the context of the Budget. The Programme for Partnership Government provides that a dedicated taskforce involving relevant government departments, agencies, industry and representative groups be established, to work on the goal of making Ireland a leader in the take-up of electric vehicles by setting ambitious and achievable targets.
As the cost of extending the current relief will of course depend on factors such as the levels of registration of electric vehicles and the Open Market Selling Price (OMSP) of those vehicles during that period, it is not possible to accurately calculate the cost requested.
176. Deputy Tony McLoughlin asked the Minister for Finance if he is satisfied with the number of staff within the Customs and Excise section of the Revenue Commissioners that are detailed to investigate illegal narcotics and illegal drug importation in counties Sligo, Leitrim, Cavan and Donegal; and if he will make a statement on the matter. [22219/16]
View answerI am advised by Revenue that it currently has approximately 2,000 staff countrywide engaged on activities that are dedicated to targeting and confronting non-compliance. These activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. There are currently 860 Revenue staff serving in the Border, Midlands, West Region, of which approximately 130 are engaged on these activities in the North West.
I am advised by Revenue that, as part of its risk focused approach to the discharge of its role in relation to illegal drugs importations, harbours and inlets along the coastline are monitored and evaluated on an ongoing basis from the point of view of the potential for smuggling. This work is supplemented by Revenue's Customs Drug Watch Programme, aimed at encouraging members of the public, coastal and local maritime communities etc. to notify Revenue in confidence of suspect or unusual movements at sea or around the coast through a confidential 24/7 Drugs Watch free phone facility.
I am aware that Revenue is active in targeting and combatting drugs smuggling and is fully committed to playing its role, in conjunction with other relevant agencies, in combatting this criminal activity and those responsible for it. I am advised by Revenue that it has an enforcement presence at all key airports and ports and at other strategic locations and that it places particular emphasis on developing an intelligence-based focus at both national and regional level, deploying resources to areas of highest risk. Enforcement strength at particular locations is regularly augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place against illegal activity.
I am satisfied with the risk-focused approach Revenue adopts.
177. Deputy Josepha Madigan asked the Minister for Finance if, with the Central Bank he plans to review the credit union cap on deposits in excess of €100,000 and the timescale in this regard; and if he will make a statement on the matter. [22239/16]
View answerWhile the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 introduced by the Central Bank sets a maximum individual member savings limit of €100,000, credit unions can apply to the Central Bank to retain individual members' savings in excess of this amount.
The closing date for applications to the Central Bank for approval to retain individual members' savings in excess of €100,000 was 27 June 2016. The Central Bank has stated that it will provide a response on the outcome of all applications, to all applicant credit unions, by 26 August 2016.
Once the application process is completed later this year, in line with the commitment set out in the Programme for a Partnership Government, I intend to write to the Central Bank requesting that a review of the continued appropriateness of the savings limit is undertaken.
178. Deputy Bobby Aylward asked the Minister for Finance to allow a person (details supplied) to pay a fine in instalments, to ensure that no term of imprisonment is imposed to pay a penalty imposed by the courts to the Revenue Commissioners in instalments due to extremely difficult financial circumstances currently being endured by person and their spouse who are both in receipt of social protection payments and do not have the means to pay fine of €2,500 in one instalment; and if he will make a statement on the matter. [22267/16]
View answerI am advised by Revenue that the terms of payment of a fine imposed by the Court, is a matter for the Courts Service. The person concerned was advised of this by Revenue, both by letter and by telephone, when a petition was made to them seeking mitigation of the fine amount.
179. Deputy Gerry Adams asked the Minister for Finance if a bank (details supplied) was permitted to sell life loan products to homeowners who were not the sole occupant of the house on which the life loan was issued; and if he will make a statement on the matter. [22289/16]
View answerI 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. Bank of Ireland is regulated by the Central Bank of Ireland."
180. Deputy Tony McLoughlin asked the Minister for Finance if he is aware that there are no detector drugs dogs working in Ireland West Airport, Knock or assigned to the Border-midlands-west region since early 2016; if he can provide a guarantee as to when a drugs detector dog will be assigned with permanent staff to this airport; and if he will make a statement on the matter. [22310/16]
View answerI am advised by Revenue that their Customs Service currently deploys seventeen detector dog teams nine of which have drug detection capabilities. I am advised by Revenue that as part of its risk focused approach to combatting illegal drugs importations, all ports and airports are monitored and evaluated from the point of view of potential for smuggling. Resources are deployed to areas of highest risk. Employment strength is augmented with additional personnel and resources as the need arises.
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.
181. Deputy Noel Rock asked the Minister for Finance if the capacity exists to analyse income brackets per age group, for instance the number of persons aged 32 who are earning above the average industrial wage. [22331/16]
View answerI am advised by Revenue that while Revenue holds information on ages of taxpayers, this information is not complete and therefore may not provide for a robust analysis of income by age bracket. In addition, I am further advised that Revenue's incomes data primarily reflects those cases in employment or self-employment and does not contain a complete picture of incomes from social welfare sources. Notwithstanding the above caveats, Revenue and my Department would always attempt to produce any analysis requested by a Deputy if this is feasible and can be done accurately.
182. Deputy Tom Neville asked the Minister for Finance if an official from the Revenue Commissioners can make contact with a person (details supplied) to have a matter resolved. [22337/16]
View answerI am advised by Revenue that the persons in question failed to discharge a Capital Gains Tax liability in respect of the 2011 tax year. The overall liability included a surcharge amount as a consequence of the late filing of the Return.
On foot of contact by Revenue, the persons paid the tax element of the overall liability, over the early months of 2013 but did not pay the surcharge amount (€15,469) or the interest amount chargeable. The persons did submit an inability to pay claim in respect of the surcharge and interest elements of the liability but this was not accepted by Revenue.
The persons should now contact Mr Jim Deery of the Collector-General's office at telephone 061 488753 to bring the matter to a conclusion.
183. Deputy Pearse Doherty asked the Minister for Finance to outline the revised figures for fiscal space in each of the years 2017 to 2021 in light of the recently revised CSO figures for GDP growth for 2015 to 26.3%. [22356/16]
View answerEstimates of fiscal space based on the expenditure benchmark are largely unaffected by changes in actual GDP. Instead, the relevant input is the estimate of the potential growth rate of the economy, as estimated by the European Commission each Spring.
The rationale for this is simple: budgetary policy should not be pro-cyclical. In other words, fiscal space should not increase when there is a cyclical improvement in the economy and, similarly, fiscal space should not reduce when there is a cyclical downturn.
The fiscal space of just under €1 billion for 2017 set out in the Summer Economic Statement (SES) is not expected to change materially as almost all the inputs used to calculate it under the expenditure benchmark are fixed following the publication of the European Commission's spring 2016 forecasts.
Revised estimates of the fiscal space for the years 2018-2021 will be published on Budget day, based on my Department's projections for key inputs including the GDP deflator, reference rate and convergence margin.
The revised GDP growth rate for last year of over 26 per cent reflects the impact of a small number of large multinational firms, and bears little resemblance to underlying economic developments. In this regard, I want to assure the Deputy that government policy will not be based on one off or exceptional growth. Instead, we will set policy on the basis of more 'normal' growth rates such as those projected by my Department, and endorsed by the Irish Fiscal Advisory Council.
184. Deputy Michael McGrath asked the Minister for Finance the estimated impact on excise duty receipts to date in 2016 from the apparent practice of tobacco firms building up stocks in advance of the introduction of plain packaging; if this is expected to have a negative impact on 2017’s fiscal space; and if he will make a statement on the matter. [22425/16]
View answerThe Revenue Commissioners inform me that receipts for tobacco products tax for the first six months of 2016 amount to €608.2 million. This is 17.5% ahead of profile.
The date for the commencement of standardised packaging in Ireland has not been announced. The Department of Health have said that the commencement of the required legislation is a priority. Therefore the current trend of moving products out of tax warehouses does not necessarily relate to the introduction of standardised packaging. However, separately, new Europe-wide standards for tobacco products packaging were introduced in May 2016 under the Tobacco Products Directive, and all packs must meet these new standards by May 2017. The tobacco industry may be moving current stock out of tobacco products warehouses in order to clear packets with packaging that do not meet the Tobacco Products Directive standards in advance of May 2017. This trend may continue into 2017, although from May 2017 no packet that does not meet the new standards can be sold in Ireland.
While it is difficult to estimate the impact at this stage, it is not expected that the current trend will have a major impact on the fiscal space for 2017.
185. Deputy Michael McGrath asked the Minister for Finance his Department’s projection of the impact of a 10%, 15% and 20% fall in the value of sterling against the euro on VAT and excise duty receipts respectively; and if he will make a statement on the matter. [22426/16]
View answerIn the Stability Programme Update, published last April, my Department estimated that, on the basis of the ESRI's HERMES model of the Irish economy, a 5 percentage point depreciation of sterling relative to the euro would increase the general government deficit by around ½ percentage point over the medium term.
The motivation for including this simulation in the Stability Programme Update was the possibility of a 'Brexit'; following the results of the referendum in June there has subsequently been a sharp depreciation of sterling. Revised forecasts for VAT and Excise receipts will be published on Budget day taking into account more up-to-date data, including the prevailing euro-sterling bilateral exchange rate at the time.
186. Deputy Michael McGrath asked the Minister for Finance the income tax generated in 2015 from Airbnb hosts; and if he will make a statement on the matter. [22427/16]
View answerAs the Deputy will be aware, property owners who receive income from the provision of occasional guest accommodation should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner. The provision of guest accommodation has never qualified for relief under the rent a room scheme. The Revenue operational manual for the rent a room scheme clearly states that income from the provision of accommodation to occasional visitors for short periods does not qualify for the scheme as visitors use the accommodation as guest accommodation rather than for residential purposes.
I am informed by the Revenue Commissioners that it is not possible to provide the information sought by the Deputy. Information filed on Income Tax returns does not require the income specific to particular activities, such as hosting for Airbnb, to be separately identified.
187. Deputy Michael McGrath asked the Minister for Finance the projected yield from capping dwelling house relief at €250,000 and €300,000, respectively; and if he will make a statement on the matter. [22428/16]
View answerI am informed by Revenue that the projected yield in Capital Acquisitions Tax to the Exchequer of capping the Dwelling House exemption could be in the region of €14 million and €10 million if the exemption was capped at €250,000 and €300,000 respectively, on the basis of the latest set of returns available to Revenue.
188. Deputy Michael McGrath asked the Minister for Finance the current public interest of directors in the State supported banks; the dates on which they were appointed; the dates on which their term is due to end; the cumulative payments to each serving director since their appointment; and if he will make a statement on the matter. [22429/16]
View answerThere is currently one public interest director serving on the boards of the covered banks. Tom Considine was nominated to the board of Bank of Ireland in January 2009 under the terms of the Credit Institutions (Financial Support) Act, 2008. There is no specified end date for this appointment. The fees paid to Mr Considine by Bank of Ireland in 2015 is set out in the following table. Fees paid in previous years can be found in the Bank's annual statements published here - https://investorrelations.bankofireland.com/results-centre/
|
Bank |
Public Interest Director |
Date of Appointment |
Fees 2015 |
|
Bank of Ireland |
Tom Considine |
Jan 2009 |
€98,000 |
In addition Dr Michael Somers is a Government Nominee (not a Public Interest Director) appointed to the AIB board on 14 January 2010 under the terms of the NPRFC s Preference Share investment of €3.5bn in AIB of May 2009. Dr Somers was reappointed to the board of AIB in December 2015 for a further two years. The fees paid to Dr Somers by AIB in 2015 is set out in the following table and fees paid in previous years can be found in the annual statements published here -
https://investorrelations.aib.ie/financial-information/results-centre/2015
|
Bank |
Government Nominee |
Date of Appointment |
Fees 2015 |
|
AIB |
Dr Michael Somers |
Jan 2010 |
€120,000 |
