Written Answers Nos. 141-162
141. Deputy Pearse Doherty asked the Minister for Finance the policy of the State-backed banks in applying discounts to foreign earnings when assessing a mortgage application; and if he will make a statement on the matter. [23962/16]
View answerIndividual credit policy and lending criteria are in the first instance a matter for the boards and management of each of the individual institutions.
I am advised by AIB that the bank applies a 20% stress factor on the currency exchange rate to mitigate against currency risk as part of the banks' mortgage assessment process. The gross income as converted using the 20% stress factor is then applied in the assessment of the mortgage application. Furthermore, in circumstances whereby a customer derives part or all of their income from a non Euro currency and this income is used in the mortgage assessment process and/or if a customer resides in an EEA country outside the Eurozone, AIB monitors currency exchange rate fluctuations for these new credit mortgage agreements. In cases whereby the exchange rate fluctuates by 20% or more, AIB issues a communication to impacted mortgage customers to advise them of the potential currency risk. AIB have informed me that the bank complies with the requirements set out in the EU Mortgage Credit Regulation, which came into effect on 21 March 2016.
I am advised by permanent tsb that they have amended its policy in respect of the application of discounts to foreign earnings when assessing mortgage applications pending a broader review of the issue following the recent introduction of the EU Mortgage Credit Regulation. At present under this amended policy, I am informed that the Group excludes non-Euro income from the credit assessment for mortgages. This has been done in order to avoid potentially serious exchange rate challenges impacting on the affordability of mortgages for customers and also ensures compliance with the MCD criteria relating to Foreign Currency Loans.
In relation to BOI the bank has responded to a recent Parliamentary question relating to features of its products that "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."
142. Deputy Pearse Doherty asked the Minister for Finance his views on the Central Bank or his Department placing a cap on the discount applied to foreign earnings by banks to encourage returning emigrants; and if he will make a statement on the matter. [23963/16]
View answerUnder Section 149 of the Consumer Credit Act, 1995 (as amended), the ('Act') a credit institution must submit a notification to the Central Bank for approval if they wish to introduce any new customer charge or increase any existing customer charge, for certain services. The provision of foreign exchange facilities, as the Deputy is referring specifically to, is covered by this Act.
The proposed charges are assessed by the Central Bank in accordance with the criteria laid down in the legislation as follows:
The promotion of fair competition;
The commercial justification submitted in respect of the proposal;
The impact new charges or increases in existing charges will have on customers; and
Passing on costs to customers.
A notification made under Section 149 may include multiple charges and, having considered and robustly challenged the proposed charge(s) under the assessment criteria, the proposed charges may be rejected, approved at lower levels than requested by the credit institution or approved in full.
Approvals are issued in the form of a Letter of Direction that sets out the maximum amount the credit institution is allowed to charge for the relevant service. The credit institution is legally bound to comply with this Letter of Direction.
Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive fees at their discretion.
Given the existing robust approval process for any proposed charge for the provision of foreign exchange services and the maximum cap for charges, I do not believe a further capping measure is required at this time.
143. Deputy Stephen S. Donnelly asked the Minister for Finance if, in view of the recent sample review of 40 section 110 companies, if any company has subsequently been investigated and-or prosecuted for abuse of the section 110 scheme; and if he will make a statement on the matter. [23968/16]
View answerI am informed by the Revenue Commissioners that Section 110 companies are assigned to the Financial Services (Banking) District in Revenue's Large Cases Division. As for all taxpayers, Section 110 companies are selected for compliance interventions based on the presence of various risk indicators and interventions are conducted in accordance with the "Code of Practice for Revenue Audit and other Compliance Interventions". The Financial Services (Banking) District has a large number of taxpayers other than Section 110 companies assigned to it.
A number of compliance interventions are currently being undertaken on companies that have advised Revenue that the company is a qualifying company for the purposes of Section 110 Taxes Consolidation Act 1997.
Selection for audit or investigation and any consequent publication will be dependant on the outcome of the ongoing review and will have regard to whether a Qualifying Disclosure was made and accepted in accordance with Section 3 of the Code of Practice.
146. Deputy Pearse Doherty asked the Minister for Finance the steps his Department will take in preparing new measures for economic growth that reflect economic activity, while stripping out aircraft leasing, inversions and other activities which distort the picture of our economic growth, in light of last week's growth figures, which were discredited both nationally and internationally; and if he will make a statement on the matter. [23973/16]
View answerThe National Income and Expenditure accounts figures for 2015 published by the CSO last week are the definitive measure of Irish national output. On the basis of these figures, however, it is not possible to isolate an underlying measure which directly strips out the factors cited by the Deputy.
As I have previously stated, these various factors are clearly exaggerating headline GDP figures in an Irish context and are not reflective of activity levels seen on the ground here. More concrete indicators of the underlying levels of economic activity (specifically consumer spending, tax trends and labour market developments) all, however, confirm that Ireland's economic fundamentals remain strong.
It is important to state that gross measures of output recorded by the CSO (i.e. GDP and GNP) record what they are designed to record. It should be emphasised that all figures published by the CSO are compiled in accordance with best international practice and statistical standards. However, in a small open and very globalised economy such as Ireland's, it is clear that the relevance of these gross figures as a means of tracking underlying economic trends and changes in actual living standards is more limited than is the case elsewhere.
In acknowledgement of this, the Central Statistics Office has established an expert group to provide guidance on how a more relevant indicator could be produced and published alongside these gross measures of output in the future. The Chief Economist of my Department will sit on this group, with the group expected to report later this year.
147. Deputy Pearse Doherty asked the Minister for Finance in view of last week's revised 2015 GDP growth figure of 26.3% and its impact on our debt to GDP ratio, if the Minister's Department has conducted risk analysis as to whether this improvement in our debt to GDP ratio could move very fast in the opposite direction in the medium term as a result of multinational corporations reversing some of their recent decisions or reclassification directives from the EU, leaving our ability to borrow in a precarious position; and if he will make a statement on the matter. [23974/16]
View answerThe 2015 National Income and Expenditure data published last week by the CSO revised Ireland's 2015 GDP level upwards significantly. This has resulted in a mechanical improvement in the general government debt-to-GDP ratio. In April the CSO estimated the end-2015 debt-to-GDP ratio at 94%. Following the recent revisions to GDP figures, it is now estimated at 79%.
Notwithstanding the potential distortionary impact of these statistical revisions, more concrete indicators of the underlying levels of economic activity such as consumer spending, tax trends and labour market developments all corroborate that Ireland's economic fundamentals remain strong and point to a continuation of a now firmly-rooted recovery. In turn, these developments underpin the sustainability of our public debt dynamics.
The most important consideration for Ireland's debt sustainability is whether its debt servicing capacity is improving. Based on how the IMF analyses debt dynamics, on any measure of activity GDP, GNP, domestic demand or Net National Income Ireland's economy is growing faster than the average rate of interest on its debt while it continues to run a primary budget surplus. Since the GDP revisions, the rating agencies Fitch and Moody's have stated that Ireland's debt sustainability continues to improve across a range of metrics.
Investors and rating agencies use a number of other ratios that are unaffected by last week's GDP revisions, including general government interest to general government revenue and general government gross or net debt to general government revenue.
My Department also analyse these developments. For instance, the ratio of general government interest to revenue is on a firm downward trajectory and stood at around 9.5% last year, down from almost 12.5% in 2013, meaning a reducing proportion of the State's resources are now required to service the debt. This ratio is expected to continue to decline over the medium term.
The gross general government debt to revenue ratio is another appropriate indicator and this ratio has also improved significantly in recent years, dropping to 286% in 2015 from over 355% in 2012.
The State also holds significant cash and other assets, meaning that net debt is well below the headline gross debt figure.
In summary, while I welcome the continued decline in the debt-to-GDP ratio, I am conscious of the need for in-depth consideration of all the factors that affect our debt sustainability. My Department continually monitors these factors.
148. Deputy Michael McGrath asked the Minister for Finance his views on the way in which Ireland's official level of GDP for 2015 was almost 20% higher than his Department predicted in June 2016; the break down of the components of the unexpected growth; the number of multinational companies that restructured their affairs so that their output came under Ireland's GDP; the identity of the relevant sectors; and if he will make a statement on the matter. [24024/16]
View answerThe macroeconomic forecasts set out in the Summer Economic Statement were based on preliminary estimates of GDP published by the CSO in March, which incorporated all available information at that time. This is the accepted practice adopted by all forecasting institutions.
The substantial upward revision to the level of GDP in 2015 is largely related to the activities of a small number of large multinational firms and reflects a number of exceptional factors which have limited impact on actual activity in the Irish economy.
The main channels through which these factors affect Irish GDP figures include:
- The effect of 'contract manufacturing' where Irish headquartered multinationals contract the production of goods to third party companies abroad but these products are recorded in Ireland's trade balance;
- The relocation of intellectual property-related assets or patents to Ireland. Ceteris paribus, this will reduce the level of royalty imports and as result increase Irish GDP;
- An increase in new aircraft imports to Ireland for international leasing activities generating substantial fee income without significant employment effects;
A detailed breakdown of the contributions made by each factor is not possible given publicly available data. Also, while it is not possible to identify the exact number of multinational companies that relocated to Ireland it is clear that this revision is largely related to the activities of a small number of large multinational firms in the manufacturing and aircraft leasing sectors.
149. Deputy Charlie McConalogue asked the Minister for Finance to amend the relevant regulations governing the application of VRT so as to ensure a number of cross-Border health workers who are provided with a leased vehicle by their employer (details supplied), which is necessary for the performance of their duties, and are not currently being granted an exemption from VRT, can avail of same; and if he will make a statement on the matter. [24056/16]
View answerI am advised by Revenue that section 135(1)(aa) of the Finance Act 1992 (as amended) provides that a vehicle which is provided to an employee who is resident in the State as part of that employee's contract of employment by an employer who is established in another Member State and that vehicle is owned or leased by the said employer and that vehicle is used principally for business use in another Member State, temporary exemption from registration is possible subject to an application being made to the Office of the Revenue Commissioners
If the conditions of the above section are not met, applications will be refused and registration of the vehicle and payment of VRT is required.
150. Deputy Willie Penrose asked the Minister for Finance the steps a person must take to register for payment of local property tax which would have to go back to the implementation of same (details supplied); and if he will make a statement on the matter. [24066/16]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) provides that any property that is in use as, or that is suitable for use as, a dwelling house is subject to Local Property Tax (LPT).
The Act requires property owners to file an LPT Return in respect of the relevant 'Valuation Period', which is currently 1 May 2013 to 31 October 2019. The LPT Return should confirm the applicable 'Valuation Band' in respect of the property and should also confirm any entitlement to the various exemptions or deferrals. The Act also requires property owners to pay the annual charge in full by the 'liability date' or to confirm a phased arrangement to Revenue, which must be concluded over the course of the particular year. The 'liability date' for the 2013 half-year was 1 May 2013 and is 1 November in the preceding year in respect of 2014, 2015 and 2016, for example 1 November 2015 for 2016.
Section 156 of the Act also converted any arrears of Household Charge (HHC) that were still outstanding on 1 July 2013 to an LPT liability of €200 per property, and made Revenue responsible for collecting the increased amounts. Prior to 1 July 2013, collection of the original €100 HHC was the responsibility of the Local Government Management Agency (LGMA) on behalf of the Local Authorities.
Revenue has assured me that if the Deputy wishes to provide the person's details it will make direct contact with her and provide any assistance or advice that she needs. This would include assisting her to file the LPT Return, advising her on any deferral option that she might be entitled to or offering her a phased payment arrangement that would best suit her circumstances.
151. Deputy Sean Fleming asked the Minister for Finance the number of claims for tax relief in respect of tuition fees for third level education that have been received, approved and paid; the total amount paid in respect of each of these claims for each year since 2010; to outline any change in the rules in respect of this relief since 2010; and if he will make a statement on the matter. [24115/16]
View answerI am advised by Revenue that the Tax Expenditures table available on the Revenue Statistics webpage (http://www.revenue.ie/en/about/statistics/costs-expenditures.html) shows the number of claims and the estimated cost to the Exchequer of relief in respect of qualifying third level education fees. Information is not gathered on the number of claims that are received.
Section 473A of the Taxes Consolidation Act 1997 provides for tax relief at the standard rate of income tax (currently 20%) in respect of qualifying fees chargeable in respect of attendance at approved third-level courses. In order to restrict the relief to tuition fees only, an amount equal to the amount of the student contribution (in respect of one student) is "disregarded" from any claim to relief.
The main changes which were introduced since 2010 were that from 2011 (i) the maximum limit in relation to qualifying fees per course, per student, per year increased from €5,000 to €7,000 and (ii) the exclusion in respect of the student contribution, to effectively restrict the relief to tuition fees only, was introduced (this "disregard" has increased in line with increases in the student contribution).
Full details of the relief can be found on the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it31.html.
152. Deputy Niall Collins asked the Minister for Finance to provide in tabular form the cost of introducing a scheme in 2017 to incentivise start-ups whereby an income tax credit applies at the following levels 20%, 25%, 30%, 35%, 40%, 45%, 50%, 55% on investments in new start-up businesses less than two years old with fewer than 25 employees and gross assets of less than €200,000; and if he will make a statement on the matter. [24144/16]
View answerThe proposed scheme for investments in certain start-up businesses less than two years old is similar to the Employment and Investment Incentive (EII), which is available to all small and medium companies less than seven years old, and certain older companies. The EII provides an income tax relief of 30% up front, and a further 10% after three years, if conditions relating to employment or R&D are met.
I am informed by Revenue that tax returns do not provide the information necessary to estimate the cost of introducing the scheme outlined by the Deputy. In particular there is not sufficient data available to identify businesses who would qualify for investment under the scheme or the number of income taxpayers or level of investment such a scheme would attract.
153. Deputy Niall Collins asked the Minister for Finance if he has considered introducing a pro-forma research and development tax credit to remove administrative costs for small and medium-sized enterprises in 2017; the estimated cost to the Exchequer of this; and if he will make a statement on the matter. [24145/16]
View answerI am advised by Revenue that they are reviewing the operation of the R&D tax credit with a view to minimising the administrative burden on SMEs in particular while ensuring that the credit is granted to bona fide research and development. I understand that discussions have been held with industry members as well as the IDA and Enterprise Ireland in this respect.
The Department of Finance are committed to reviewing the R&D Tax Credit in line with Department guidelines, and implementing, where possible, recommendations to improve the effectiveness of the R&D Tax Credit. It is not possible to provide an estimated cost to exchequer of the proposed Tax Credit.
154. Deputy Niall Collins asked the Minister for Finance to provide in tabular form the total amount in agricultural relief and business relief on capital acquisition tax for the transfer of a business drawn down in each of the years 2014 to date in 2016; the current rates in operation; the number of cases where each relief was availed; the cost of extending full relief in both cases; and if he will make a statement on the matter. [24146/16]
View answer167. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of increasing the threshold for group A recipients to €290,000, €300,000, €310,000, €320,000, €330,000, €340,000 and €350,000, respectively, in tabular form; and if he will make a statement on the matter. [24247/16]
View answer172. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the cost in 2017 and in a full year the reduction in capital acquisitions tax from 33% to 32%, 31%, 30%, 29% and 28%, respectively; and if he will make a statement on the matter. [24253/16]
View answerI propose to take Questions Nos. 154, 167 and 172 together.
In relation to the first question, I am advised by Revenue that information on the amount of tax relief granted under the Agricultural Relief and Business Relief in respect of 2014 and 2015 are shown in the following tables. Information for 2016 is not currently available.
Agricultural Relief
|
Year |
Cost €m |
Numbers |
|
2014 |
164.4 |
1,581 |
|
2015 |
215 |
2,024 |
|
2016 |
Not available |
Not available |
Business Relief
|
Year |
Cost €m |
Numbers |
|
2014 |
139.7 |
495 |
|
2015 |
86.9 |
461 |
|
2016 |
Not available |
Not available |
The cost of extending the current relief from 90% to 100% would be in the region of €7m in the case of Agricultural Relief and €4.3m in the case of Business Relief.
In relation to the other two questions, I am advised by Revenue that a Pre-Budget 2017 Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/index.html. This Ready Reckoner shows a wide range of detailed information, including changes to the CAT rates and the Group A threshold. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, others can be estimated from those shown on a pro-rata or straight line basis with those displayed in the Reckoner.
155. Deputy Niall Collins asked the Minister for Finance the cost of implementing a living wage of €11.50 for all employees directly employed or in agencies funded by his Department; and if he will make a statement on the matter. [24161/16]
View answerI wish to advise the Deputy that based on the gross hours per week of 43.25 hours, the cost of implementing a living wage of €11.50 for all employees directly employed by my Department would be €67,435 per annum.
In relation to employees employed in Agencies funded by my Department, there would be no additional cost if a minimum threshold of €11.50 was implemented.
I can confirm that my Department adheres to all appropriate current wage legislation. As the Deputy is aware, the Low Pay Commission has recently recommended that the statutory minimum wage rate be fixed at a rate of €9.25 per hour.
156. Deputy Niall Collins asked the Minister for Finance what discussions his Department has had with suppliers or service contractors to his Department or to agencies of his Department to ensure that employees of such suppliers and contractors are paid the living wage of €11.50 per hour; the cost of implementing this wage for these employees; and if he will make a statement on the matter. [24176/16]
View answerIn response to the Deputy's query, it is important that Ireland's statutory National Minimum Wage and the Living Wage concept are not merged together. The Living Wage is a voluntary societal initiative centred on the social, business and economic case to ensure that, wherever it can be afforded, employers will pay a rate of pay that provides an income that is sufficient to meet an individual's basic needs, such as housing, food, clothing, transport and healthcare. The Living Wage is voluntary and has no legislative basis and is therefore not a statutory entitlement and cannot be imposed on suppliers or contractors.
It is different to the National Minimum Wage which is a statutory entitlement and has a legislative basis. The previous Government established the Low Pay Commission to annually assess the appropriate level of the National Minimum Wage. The national minimum hourly rate of pay increased to €9.15 per hour on January 1st this year following Government acceptance of the Low Pay Commission recommendation of July 2015 to increase the rate from €8.65 per hour. My colleague, Minister for Jobs, Enterprise and Innovation, Mary Mitchell O'Connor presented the Low Pay Commission's recommendations from its second report at cabinet this week. The commission has recommended a further increase in the national minimum wage to €9.25 per hour. This recommendation will be considered in detail in the context of Budget 2017 and in line with the commitment in the Programme for a Partnership Government to increase the national minimum wage to €10.50 by 2020.
Separately, wage rates and other conditions of employment are provided for in Employment Regulation Orders for the Contract Cleaning and Security sectors. These statutory Orders came into effect on October 1st 2015 and provide for minimum rates in excess of the National Minimum Wage, with €10.75 per hour payable to workers in the Security sector and €9.75 per hour payable to workers in the Contract Cleaning sector.
Statutory minimum rates of pay may also be supplemented by social transfers such as Child Benefit, Family Income Supplement or health, education or housing assistance payments where the need arises and to reflect family circumstances.
My Department has not had any discussions with suppliers or service contractors in relation to the Living Wage. However, I can confirm that my Department adheres to all appropriate current wage legislation.
157. Deputy Martin Heydon asked the Minister for Finance if he is aware of cases such as one in County Kildare (details supplied) where the trustees of private pension funds reduced pensions in payment on a permanent basis as a result of the introduction of the pension levy so that these reductions will continue even when the levy ceases, if this is allowed or if anything can be done by the pensioners to reverse this position; and if he will make a statement on the matter. [24188/16]
View answerI announced in my Budget 2014 speech that the original 0.6% stamp duty levy on private pension funds introduced in 2011 to fund the Jobs Initiative would be abolished after 2014 and that levy no longer applies. I did, however introduce an additional levy on pension funds at 0.15% for 2014 and 2015. I did this to, among other things, continue to help fund the Jobs Initiative. I confirmed in my Budget 2015 speech that the additional 0.15% levy would expire at the end of last year and this has now happened. As both levies have ceased no more payments will be due in respect of them.
The chargeable persons for the pension fund levies are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. The payment of the levies is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled, where they decide to do so, to adjust current or prospective benefits payable under a scheme to take account of the levies.
It is up to the trustees to decide whether and how the levies should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible. While the final levy expired at the end of 2015 the manner in which the trustees choose to pass them on may entail a longer term but lesser reduction in pension payments to retired members than would have been the case if the reductions were made over the temporary period when the levies applied. This could potentially take the form of a lifetime reduction. I do not have specific information in relation to the decisions of individual trustees regarding the passing on of the levy. However, should the option of reducing scheme benefits be taken, 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 levies.
158. Deputy Martin Heydon asked the Minister for Finance his plans to introduce financial incentives or tax reliefs for those who are considering buying a new home for the first time; and if he will make a statement on the matter. [24228/16]
View answerThe Deputy will be aware that a new "Help to Buy" scheme was announced in the Action Plan for Housing and Homelessness that was published yesterday. The scheme is being developed with the aim of helping to ensure the availability of adequate, affordable mortgage finance for first time buyers. The introduction of a "Help to Buy" scheme follows the recognition in the Programme for a Partnership Government of the difficulties faced by first time buyers in accessing mortgage finance.
The details of the scheme will be announced in the context of Budget 2017.
159. Deputy Michael McGrath asked the Minister for Finance the cost in 2017 and in a full year of reducing the 1% rate of the universal social charge to 0.5% and full abolition in tabular form; and if he will make a statement on the matter. [24239/16]
View answer160. Deputy Michael McGrath asked the Minister for Finance the cost in 2017 and in a full year of reducing the 3% rate of the universal social charge to 2.5%, 2%, 1.5%, 1%, 0.5% and full abolition, respectively, in tabular form; and if he will make a statement on the matter. [24240/16]
View answer161. Deputy Michael McGrath asked the Minister for Finance the cost in 2017 and in a full year of reducing the 5.5% rate of the universal social charge to 5%, 4.5%, 4%, 3.5%, 3%, 2.5%, 2%, 1.5%, 1%, 0.5% and full abolition, respectively, in tabular form. [24241/16]
View answer162. Deputy Michael McGrath asked the Minister for Finance the cost in 2017 and in a full year of reducing the 8% rate of the universal social charge to 7.5%, 7%, 6.5%, 6%, 5.5%, 5%, 4.5%, 4%, 3.5%, 3%, 2.5%, 2%, 1.5%, 1%, 0.5% and full abolition, respectively, in tabular form; and if he will make a statement on the matter. [24242/16]
View answer165. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of reducing the standard tax rate of 20% to 19.5%, 19%, 18.5%, 18%, 17.5% and 17%, respectively; and if he will make a statement on the matter. [24245/16]
View answer166. Deputy Michael McGrath asked the Minister for Finance the first-year and full-year cost of reducing the higher tax rate of 40% to 39.5%, 39%, 38.5%, 38%, 37.5% and 3%, respectively, in tabular form; and if he will make a statement on the matter. [24246/16]
View answer170. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the cost in 2017 and in a full year of reducing the DIRT rate from 41% to 40%, 39%, 38%, 37%, 36% and 35%; and if he will make a statement on the matter. [24251/16]
View answer173. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the cost in 2017 and in a full year the reduction in capital gains tax from 33% to 32%, 31%, 30%, 29% and 28%, respectively; and if he will make a statement on the matter. [24254/16]
View answer174. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the estimated yield in 2017 and in a full year of increasing the excise duty levy on tobacco by 25 cent, 50 cent, 75 cent and €1, respectively; and if he will make a statement on the matter. [24255/16]
View answer175. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the estimated cost in 2017 and in a full year of an increase in the earned income tax credit for the self-employed from €550 in 450 intervals up to €1,650; and if he will make a statement on the matter. [24256/16]
View answer176. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the estimated cost in 2017 and in a full year of an increase in the home carer's tax credit from €1,000 to €1,250, €1,500, €1,750 and €2,000; and if he will make a statement on the matter. [24257/16]
View answer177. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the estimated cost in 2017 and in a full year of an increase of €50, €100, €150, €200, €250, €300 and €350, respectively, in the single personal tax credit; and if he will make a statement on the matter. [24258/16]
View answer178. Deputy Michael McGrath asked the Minister for Finance to provide in tabular form the estimated cost in 2017 and in a full year of an increase of €50 intervals up to €700 in the married personal or civil partner personal tax credit; and if he will make a statement on the matter. [24259/16]
View answerI propose to take Questions Nos. 159 to 162, inclusive, 165, 166, 170, and 173 to 178, inclusive, together.
The Revenue Commissioners pre-Budget 2017 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 questions, this Ready Reckoner shows a wide range of detailed information, including the estimated cost to the Exchequer of changes to the Universal Social Charge (USC), Income Tax rates and credits, the Earned Income Tax credit, the Home Carer credit, DIRT, Capital Gains Tax and Excise. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, others can be estimated from those shown on a pro-rata or straight line basis with those displayed in the Reckoner.
The estimates for Income Tax and USC in the Ready Reckoner have been generated by reference to 2017 incomes as calculated on the basis of 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.
I am advised that Revenue has recently updated the Ready Reckoner to a pre-Budget 2017 basis. The base year Tax Modeller dataset used to generate the Ready Reckoner 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 a measure comes into effect.
