Written Answers Nos. 294 - 319
294. Deputy Pearse Doherty asked the Minister for Finance the number of times the Revenue Commissioners authorised the sheriff to go after a tax payer following a final demand for arrears in each of the years 2012 to 2015; and if he will provide a breakdown of the judgments in question in bands of tax outstanding (details supplied). [25607/16]
View answerI am advised by Revenue that debt collection/enforcement action, including referral to the Sheriff, is only used as a last option where there is no meaningful engagement by the taxpayer or business.
Revenue's clear preference is always to engage positively with taxpayers or businesses experiencing temporary cashflow difficulties and where required to agree mutually acceptable payment solutions rather than deploying debt collection/enforcement sanctions.
Revenue's commitment in this regard is clearly evidenced by the volume of phased payment arrangements agreed each year. For example, during 2015 it agreed almost 8,500 phased agreements covering approximately €96m of tax debt.
However, any such engagement is predicated on open and honest discussion by the taxpayer/business, including a willingness to identify and agree a realistic payment arrangement. Any agreed arrangement must include interest, which is a statutory charge and a commitment to pay current taxes on a timely basis.
The table provided sets out the number and value of Sheriff referrals (warrants) for the years 2012 to 2015. The information is presented in the particular bands requested by the Deputy and for completeness also includes referrals greater than €40,000.
Revenue has clarified that the number of actual cases where the Sheriff was deployed for the years in question was 22,099 (2012), 19,801 (2013), 22,349 (2014) and 21,291 (2015). The difference between the number of referrals and the number of cases arises because a taxpayer/business may have more than one outstanding liability referred to the Sheriff over the course of a year.
Sheriff Referrals for the years 2012 to 2015
|
|
2012 |
2013 |
2014 |
2015 |
||||
|
Referral Range |
No. of Referrals |
Value of Referrals |
No. of Referrals |
Value of Referrals |
No. of Referrals |
Value of Referrals |
No. of Referrals |
Value of Referrals |
|
€0 - €500 |
89 |
€35,529 |
105 |
€42,460 |
107 |
€43,691 |
133 |
€54,992 |
|
€500 to €1,000 |
1,496 |
€1,109,164 |
1,466 |
€1,043,740 |
1,913 |
€1,403,225 |
1,977 |
€1,430,020 |
|
€1,000 to €1,500 |
2,258 |
€2,703,781 |
2,351 |
€2,792,990 |
2,741 |
€3,294,969 |
2,416 |
€2,898,774 |
|
€1,500 to €2,000 |
1,751 |
€3,042,760 |
1,797 |
€3,131,975 |
2,200 |
€3,821,178 |
1,968 |
€3,427,477 |
|
€2,000 to €3,000 |
3,456 |
€8,431,170 |
3,669 |
€8,979,916 |
3,989 |
€9,758,015 |
3,606 |
€8,867,877 |
|
€3,000 to €4,000 |
2,817 |
€9,772,894 |
2,834 |
€9,849,320 |
3,083 |
€10,699,818 |
2,896 |
€10,064,125 |
|
€4,000 to €5,000 |
2,269 |
€10,171,326 |
2,311 |
€10,314,668 |
2,515 |
€11,231,528 |
2,350 |
€10,498,034 |
|
€5,000 to €6,000 |
1,990 |
€10,923,171 |
1,805 |
€9,898,755 |
1,857 |
€10,173,863 |
1,791 |
€9,827,793 |
|
€6,000 to €7,000 |
1,670 |
€10,832,618 |
1,486 |
€9,622,512 |
1,654 |
€10,707,645 |
1,572 |
€10,161,184 |
|
€7,000 to €8,000 |
1,368 |
€10,221,179 |
1,148 |
€8,588,278 |
1,299 |
€9,722,697 |
1,246 |
€9,334,265 |
|
€8,000 to €9,000 |
1,206 |
€10,240,440 |
1,051 |
€8,903,568 |
1,098 |
€9,304,096 |
966 |
€8,180,647 |
|
€9,000 to €10,000 |
1,038 |
€9,856,025 |
845 |
€8,026,461 |
952 |
€9,040,947 |
793 |
€7,520,584 |
|
€10,000 to €15,000 |
3,424 |
€41,801,524 |
2,727 |
€33,313,983 |
2,952 |
€35,952,725 |
2,676 |
€32,559,028 |
|
€15,000 to €20,000 |
1,882 |
€32,396,529 |
1,553 |
€26,858,890 |
1,512 |
€26,092,237 |
1,346 |
€23,109,052 |
|
€20,000 to €30,000 |
1,938 |
€47,159,084 |
1,569 |
€38,107,536 |
1,397 |
€33,907,923 |
1,293 |
€31,383,109 |
|
€30,000 to €40,000 |
858 |
€29,590,325 |
749 |
€25,843,428 |
686 |
€23,611,588 |
583 |
€20,086,616 |
|
>€40,000 |
1,555 |
€135,272,969 |
1,329 |
€106,674,922 |
972 |
€74,699,725 |
865 |
€65,542,704 |
|
Grand Total |
31,065 |
€373,560,487 |
28,795 |
€311,993,402 |
30,927 |
€283,465,872 |
28,477 |
€254,946,279 |
295. Deputy Pearse Doherty asked the Minister for Finance the way the savings of €140 million anticipated by the Department of Health in the calendar year 2017 under the new framework agreement with the Irish Pharmaceutical Healthcare Association will affect the net fiscal space of €1 billion for 2017; and if he will make a statement on the matter. [25608/16]
View answerThe Summer Economic Statement recognised that the implementation of the budgetary measures to return the public finances to a sustainable level requires the efforts of all public service bodies to seek savings and pursue efficiencies.
It is consistent with the principle of the application of the expenditure benchmark on a fair and transparent basis across the whole of general government, as outlined in the Medium Term Budgetary Framework, that savings generated by sub-sectors/entities should stay with them and can be used to fund additional expenditure while staying within the relevant Ministerial Expenditure Ceiling. This principle, which incentivises the identification of efficiencies and savings, applies in this case.
Consequently any savings arising under the new framework agreement would not impact the estimate of net fiscal space but would rather be available for delivery of services by the Department of Health.
296. Deputy Catherine Murphy asked the Minister for Finance the amounts expended on legal fees and associated costs to date on providing a legal team to observe the European Commission's case against a bank (details supplied) when it reached the European Court of Justice; the names of the legal and financial companies contracted; and if he will make a statement on the matter. [25609/16]
View answer303. Deputy Pearse Doherty asked the Minister for Finance the legal fees incurred by the State to date as a result of its decision to join a case (details supplied) before the European Court of Justice; and if he will make a statement on the matter. [25718/16]
View answerI propose to take Questions Nos. 296 and 303 together.
The State's intervention in case C-21/15P Commission v Banco Santander and Santusa was lodged in January 2016, following the Government Decision to approve the intervention on 30 April 2015.
The appeal in this case follows on from annulment proceedings brought by Banco Santander SA against a European Commission decision that a provision of Spanish tax law constituted illegal state aid contrary to Article 107 of the Treaty on the Functioning of the European Union. Banco Santander won in the General Court (judgment of 7 November 2014 in Case T-399/11) and the European Commission has appealed to the Court of Justice of the European Union.
All Member States have legal standing to intervene in cases that go before the European courts and do so from time-to-time if it is considered that the case raises points of relevance and in order to influence the jurisprudence. This case is considered to be important for Ireland as it relates to the interpretation of selectivity and state aid, with a particular regard to tax measures.
The associated costs for the State in this case have amounted to approximately €21,500.
The legal costs in this case have been met from existing resources in the Attorney General's Office. There were additional costs including translation services, travel and other associated costs, incurred by officials of the Department of Finance, Attorney General' s Office and the Chief State Solicitors Office.
There has been no engagement with private law firms or private financial firms in this case. The legal case has been undertaken by the Attorney General's Office who have engaged legal counsel as appropriate.
297. Deputy Clare Daly asked the Minister for Finance the number of times that the section 110 clause has been amended since it was put in place; the degree of lobbying that was involved relating to the last amendment to the scheme; and if he will make a statement on the matter. [25661/16]
View answerSection 110 of the Taxes Consolidation Act 1997 has been amended a total of 5 times since implemented in its current form in 2003.
The Finance Act 2005 introduced the option for section 110 companies to make an irrevocable election to continue being taxed on the basis of 2004 Irish GAAP.
In 2008 the assets which a section 110 company could hold/manage were extended to include greenhouse gas emissions allowance, contracts for insurance and contracts for reinsurance and also to include a partnership interest in any of the qualifying assets.
The Finance Act 2011 brought about a further extension of qualifying assets to include plant and machinery, commodities and certain carbon offsets. An anti-avoidance provision was also inserted to disallow a deduction for interest and other payments made by a section 110 company to connected non-resident persons who do not pay tax on that income in their country of residence.
In 2012 the definition of qualifying assets was further extended to include forest carbon offsets and to include any right directly attributable to a carbon offset.
An administration amendment was also made in 2012, this clarified that the requirement to notify Revenue of the intention to be a section 110 company must be made by the return filing date for the accounting period that the company is first a section 110 company.
In terms of the Finance Act 2016 I am proposing an amendment to ensure property/land in the state is taxed appropriately and Ireland's tax base remains protected. Details may be found in my press release regarding Section 110s on the 6th of September. As is standard practice when a technically complex piece of legislation is being examined, officials from the Department of Finance and the Revenue Commissioners held meetings with industry representatives including meeting with members of the Irish Debt Securities Association, the body that represents the securitisation industry.
298. Deputy Clare Daly asked the Minister for Finance his views on whether it is acceptable for a company (details supplied) to use charities to facilitate hedge funds cutting their tax bills; his proposals regarding same; and if he will make a statement on the matter. [25662/16]
View answerThe matter of whether it is acceptable for a company to use charities to facilitate hedge funds cutting their tax bills is a question best referred to the Charities Regulator. It is my understanding that this issue is currently subject to an in depth review.
299. Deputy Clare Daly asked the Minister for Finance the number of Revenue Commissioners opinions or rulings similar to those offered to a company (details supplied) which have been made by the Revenue Commissioners, including the sectors and years involved and the details of the issues concerned. [25664/16]
View answerIt is in the public domain that the opinions granted to Apple related to the attribution of profits to the Irish branches of non-resident companies.
As part of the Apple State Aid investigation, the European Commission was given over 300 non-binding opinions that were issued by Ireland. These covered a number of circumstances, sectors and periods of time.
On average, the Revenue Commissioners only issue around 100 such opinions per year. In contrast, some countries give thousands of such rulings per year. Commissioner Vestager has acknowledged that opinions or rulings are not a common feature of the Irish tax system.
300. Deputy Clare Daly asked the Minister for Finance in view of the fact that corporation tax paid by multinationals can be reduced or even turned into a negative number by refundable research and development tax credits, the sectors which have claimed most such credits; and the net rate of tax paid by these companies. [25665/16]
View answerThe R&D tax credit must be used initially to reduce the corporation tax liability of the company for the accounting period in which the expenditure on research and development or relevant expenditure is incurred.
Any unused amount may be carried forward and used to reduce the corporation tax of following accounting periods. However where an excess remains, instead of carrying forward that excess, a company may claim to use it to reduce the corporation tax of the preceding accounting period. If any excess still remains it may still be carried forward and used to reduce the corporation tax of succeeding accounting periods.
As an alternative, in the event that there is no corporation tax liability in the current year, the company may claim to have the amount of that excess paid to them by the Revenue Commissioners in 3 instalments over a period of 33 months from the end of the accounting period in which the expenditure was incurred.
A Review of the R&D Tax Credit was carried out by my Department in 2013 and the results were published on the Department's website. This review found that the payable element of the credit is important for Irish firms:
- For smaller, typically indigenous firms, to assist with cash-flow; and
- For Irish subsidiaries of Multi-National Companies when competing with other subsidiaries in other jurisdictions to win internal R&D project to Ireland.
Based on the analysis of Revenue data that was carried out as part of this review, the payable element of the tax credit is used by more micro and small firms than large.
I am informed by the Revenue Commissioners that 1,570 companies availed of the Research and Development tax credit in 2014 (the most recent year available) at a cost of €553 million. A sectoral breakdown is shown in the the following table.
|
Sector |
% of 2014 Cost |
|
Manufacturing |
68% |
|
Wholesale and retail trade |
11% |
|
Information and communications |
10% |
|
Other sectors (based on multiple smaller claims across different sectors) |
11% |
This sectoral breakdown is based on the classification on tax records which is compiled by reference to the primary area of economic activity reported by individual or corporate taxpayers. While the accuracy of the sector classification on tax records is sufficient to underpin broad sector-based analyses, there may be some inaccuracies at individual level. This should be borne in mind when considering the information provided.
301. Deputy Clare Daly asked the Minister for Finance his plans to address the fact that those who cannot afford to pay the local property tax have interest levies imposed to claim a deferral, essentially placing an extra tax on economic hardship. [25666/16]
View answerThe 2012 report of the interdepartmental group (chaired by Dr Don Thornhill) on the design of a property tax (LPT) considered the issue of introducing an exemption or waiver for property owners below a certain income threshold.
Having considered the possible inequities and administrative challenges of such an exemption or waiver structure it was decided to instead introduce a deferral scheme that could assist property owners in a number of different scenarios. The four categories to which a deferral (or partial deferral) could apply were agreed as, Income Threshold, Personal Representative of a Deceased Person, Personal Insolvency and Hardship Grounds. In excess of 30,000 property owners availed of the various deferral options in 2016.
There are a number of criteria that must be met to qualify for a deferral but in the main the income of the individual must be below €15,000 for a full deferral and below €25,000 for a partial deferral (€25,000 and €35,000 thresholds apply for couples). These thresholds, which can be increased by 80% of gross mortgage interest payments, were recommended by the interdepartmental group report based on analysis by the ESRI.
Part 12 of the LPT Act clearly sets out the meaning a deferral of LPT and the qualifying criteria that must apply. The law also clearly sets out that deferral is not an exemption and that the tax becomes payable at a later date. Part 12 (Section 137) also clearly states that the deferred amount remains as a charge on the property until paid and generates an interest calculation (Section 131) of 4% per annum. I should point out that the 4% interest rate is half of the standard rate of 8% that applies to the late payment of LPT.
Following his 2015 review of LPT, Dr Thornhill recommended that the deferral options should continue to apply and that the relevant income thresholds be revised periodically in line with changes in the Consumer Price Index (CPI). Dr Thornhill also recommended that for owner-occupiers aged 80 years or over and also for those with stated certified long term illnesses and disabilities who are living alone, that consideration be given to raising the eligible income limit for deferrals to €20,000. My Department will be considering issues relating to the implementation of this and other recommendations made by Dr Thornhill in due course.
Finally, where a liable person does not qualify for or does not wish to avail of a deferral there are a wide number of phased payment options available to assist with budgeting. The various options are designed to provide the maximum possible flexibility for individual circumstances.
304. Deputy Sean Fleming asked the Minister for Finance the position regarding immunity from prosecution for auditors who notified the Revenue Commissioners of suspected wrongdoing in an organisation where they are carrying out an audit and where there may be liabilities for tax and where the auditor may have been negligent and not been aware of the tax issues in previous years; and if they can be prosecuted or not or if they are immune from prosecution in these matters; and if he will make a statement on the matter. [25766/16]
View answerI am advised by the Revenue Commissioners that auditors of a Company have specific reporting duties to the Company in respect of offences of which they become aware under Section 1079 of the Taxes Consolidation Act 1997 (as amended), and failure to comply with that section is an offence. There are also offences contained in Section 1078 of the Taxes Consolidation Act 1997 (as amended) in relation to persons who facilitate, and/or who aid and abet, in the fraudulent evasion of tax. There is no specific statutory immunity for auditors who have participated in, and who have reported, wrongdoing by their client to Revenue. The decision whether to prosecute the auditor or not is a matter for the Director of Public Prosecutions.
305. Deputy Fergus O'Dowd asked the Minister for Finance if he will consider a submission (details supplied) on the forthcoming budget; and if he will make a statement on the matter. [25769/16]
View answerMy Department has so far received in the order of 200 Pre-Budget Submissions from a wide range of groups and individuals. These are being considered by the relevant officials in the context of Budget and Finance Bill preparation. I can confirm that a submission from Dundalk Chamber has been received. However, as the Deputy will be aware, it is not the practice of the Minister for Finance to discuss the details of measures which may be under consideration as part of the Budget and Finance Bill.
306. Deputy Eoin Ó Broin asked the Minister for Finance the impact on the available fiscal space for 2017 of the suspension of water charges. [25837/16]
View answerEstimates of fiscal space for 2017 under the expenditure benchmark are determined by the potential growth rate of the economy, as estimated by the European Commission each Spring, and the estimated outturn for 2016 general government expenditure.
In line with the Eurostat decision in July 2015, Irish Water's expenditure was included in 2015 and 2016 general government expenditure. Furthermore, the planned general government expenditures for 2017, consistent with the net fiscal space set out in the Summer Economic Statement, include Irish Water's planned expenditure, which has not been revised in the wake of the suspension of water charges.
As the Deputy is aware, decisions that lead to a decrease in revenue are classified as discretionary revenue measures and these reduce the overall fiscal space available. However, the question of how the suspension, as opposed to the abolition, of water charges is to be treated is uncertain and it is being discussed with the European Commission.
307. Deputy Jim Daly asked the Minister for Finance the efforts his Department and agencies under its remit have made to use Eircode when communicating with households via An Post; and if he will make a statement on the matter. [25871/16]
View answerI wish to advise the Deputy that since the introduction of Eircode, efforts made by my Department in implementing it include incorporating Eircodes into all departmental/office addresses on our websites, on new stationery and in email signatures. In addition, the relevant Eircodes are included in public consultation exercises, publications, presentations and other corporate communications.
The Department will continue to incorporate Eircode into new systems, forms and processes as they are developed.
A number of bodies under the remit of the Department, such as the Revenue Commissioners, have extensive communication with households; however, by nature of their roles, others have limited or no direct communication with households.
The bodies under the remit of the Department have advised on their implementation of Eircode to date and their responses are outlined in the following table.
|
Body |
Eircode implementation |
|
Office of the Comptroller & Auditor General |
The Office of the Comptroller and Auditor General has incorporated its Eircode reference into its address on all its stationery, business cards etc. and also on its website. |
|
Central Bank |
Significant new projects in the Central Bank are considering Eircodes in data requirements and including provision for Eircode where appropriate. This includes the Central Credit Register project which is currently underway. Eircodes will be considered in other systems updates going forward. It is worth noting that a significant majority of correspondence received or sent by the Bank is electronic and the Bank mainly deals with firms and institutions that have a registered address. |
|
Credit Review Office |
The Credit Review Office (CRO) are putting the Eircode on their addresses on their website and headed paper. All their finance processing and revenue returns are handled by Enterprise Ireland (EI), the CRO will request that EI amend the CRO's address on their systems also. |
|
Credit Union Advisory Committee |
The Credit Union Advisory Committee (CUAC) does not communicate with households. The purpose of the CUAC is to advise the Minister for Finance on Credit Union issues and all meetings are held in the Department of Finance. |
|
Credit Union Restructuring Board (ReBo) |
The Credit Union Restructuring Board (ReBo) does not communicate with households. |
|
Disabled Drivers Medical Board of Appeal |
The Disabled Drivers Medical Board of Appeal (DDMBA) does not currently use Eircode for its correspondence with households via An Post. |
|
Financial Services Ombudsman Bureau |
Progress made to date: - All printed material to issue from FSOB with postal address into the future now contains Eircode - Internal case management system releases are reviewed to identify postal address capture, and Eircode fields added - On-line complaints forms prompt inclusion of Eircode Future plans: The FSOB will be completing its review of all IT and communications systems over the course of 2016 to confirm all issued materials containing contact details, as well as all data entry points (internal and service user), include Eircode capture. |
|
Financial Services Ombudsman Council |
As per the Financial Services Ombudsman Bureau (FSOB) reply. |
|
Investor Compensation Company Limited (ICCL) |
ICCL has two data sources for their database of addresses: - Central Bank official registers for participant firms (not within ICCL control); - Claimant submissions (within ICCL control). With regard to the Claimant submissions, ICCL systems are developed to facilitate the receipt and recording of Eircode details for claimants if supplied to them, they do not mandate the requirement for the Eircode. For the participant firm data, ICCL are dependent on the CBI data stream. The CBI have started to record Eircode for authorised firms. ICCL automatically update their records in this regard on receipt from the CBI data stream. |
|
Irish Bank Resolution Corporation |
IBRC (in Special Liquidation) have recently moved to a new premises in Kings Building, Church Street, Dublin 7 and have applied for an Eircode, this application is currently being processed. In relation to IBRC (in Special Liquidation) correspondence with households, they record Eircodes as and when they are made aware of them from households. |
|
Irish Financial Services Appeals Tribunal (IFSAT) |
IFSAT does not use the Eircode as of yet however it is the intention of the Tribunal to use the Eircode once they have secured new office accommodation (currently in progress). |
|
Irish Fiscal Advisory Council |
IFAC shares the same building as the ESRI and note the ESRI's Eircode. |
|
National Asset Management Agency |
NAMA is progressing the implementation of Eircode. The Eircode reference has been included in contact details on the NAMA website and staff will be advised to include the eircode as part of their email signatures. Similarly, NAMA will engage with facilities in relation to headed paper etc. You will appreciate that NAMA is currently working through its existing stock of collateral and it wouldn't be appropriate to dispose of these given the costs involved. |
|
National Treasury Management Agency |
The National Treasury Management Agency has ensured that all key systems are either currently provisioned for Postcode/Eircode data entry or are planned to be so provisioned. The NTMA would have limited communication with households via An Post, primarily this would be through Human Resources. The new My HR system which has been recently launched facilitates the use of Eircode. |
|
Office of the Revenue Commissioners |
Revenue advise that currently, about 60% of postal addresses in Revenue's database of individual and business customers have the appropriate Eircode. Revenue's customers can have the Eircode included on their Revenue record either via the MyAccount facility or when they file a return either online or in paper. All Local Property Tax correspondence from Revenue includes the Eircode where Revenue has that information. Revenue has been extending the facility to provide the Eircode via its tax returns and other forms (paper and online, English and Irish) on a rolling basis since Quarter 3 of 2015. Thus far, 52 separate forms provide the facility to update the Eircode. This is an ongoing programme of work as evidenced, for example, by the fact that a further 4 forms will include that facility this month. Revenue estimates that it has to date issued 1.6million pieces of correspondence which include an Eircode since Eircodes were introduced. |
|
Social Finance Foundation |
The CEO of the Social Finance Foundation has advised that as they are a wholesale provider of funds, they do not communicate with households directly. The SFF does, however, include the Eircode on the header of any communication sent out and on the footer of electronic communication. |
|
Strategic Banking Corporation of Ireland |
The SBCI gathers data from SMEs to assess their eligibility for SBCI funding and to meet the reporting requirements of its funders. This information is gathered through the SBCI's Loan Portal which has been deployed to its on lending partners. The information about the SME required as part of a loan application includes: name, address, county and NUTS code. The SBCI has upgraded the Loan Portal to also request the Eircode for each SME, however, this is not a mandatory field. The SBCI cannot enforce the capture of this information as the data required for each SBCI loan application is specified in the original lending agreements with its on lenders. The SBCI intends to encourage its on lenders to capture the Eircode of SMEs going forward. |
|
Tax Appeals Commission |
The Tax Appeals Commission has incorporated its Eircode reference into all its stationery, business cards etc. and also on its website. The Tax Appeals Commissioners use their Eircode on all correspondence with parties with whom they communicate and also use Eircodes provided by third parties as appropriate when communicating with them. |
308. Deputy Louise O'Reilly asked the Minister for Finance if his attention has been drawn to the fact that there are persons in north County Dublin whose homes have been rendered effectively worthless due to the fact there is pyrite in their estate and their homes have been given grade 1 status, and yet these persons have to pay the local property tax; and if he will make a statement on the matter. [25891/16]
View answerThe qualifying criteria in respect of the exemption from Local Property Tax (LPT) on foot of significant pyritic damage were modified by the Finance (Local Property Tax) (Amendment) Act 2015.
The modifications were introduced by me on foot of recommendations made by Dr Don Thornhill following a review of the LPT in 2015. The revised criteria 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 then Minister for the Environment, Community and Local Government in Statutory Instrument (SI) No 147 of 2013. Property owners claiming the exemption under Criteria 2 to 4 must provide appropriate supporting documentation.
The 'pyrite exemption' is claimed by property owners on a self-assessed basis and the onus is on the claimants to provide the appropriate supporting documentation to Revenue when requested to do so. Where the supporting documentation is not provided or where it does not conform with the statutory requirements then Revenue is obliged to withdraw the relief and secure payment of any outstanding LPT liabilities.
Once granted, the exemption becomes applicable from the following 1 November and normally remains in place for a period of six years. The Act does not provide entitlement to the exemption for any years previous to a property being accepted as having significant pyritic damage or in circumstances where the pyritic damage was remediated prior to the introduction of LPT on 1 July 2013. Revenue has confirmed to me that 731 additional properties have benefitted from the exemption since commencement of the Amendment.
In regard to the specific North County Dublin properties to which the Deputy is referring, I am advised by the Revenue Commissioners that the owners in question claimed the pyrite exemption on a self-assessed basis but that the supporting documentation subsequently confirmed the remediation occurred prior to the enactment of LPT, thereby falling outside of the required criteria.
310. Deputy Alan Farrell asked the Minister for Finance his views on the failure of the European Commission to publish the report on its decision in the case of a company (details supplied); if he will engage with the European Commission to secure the publication of its report, taking into account that a redacted version could be published to omit market sensitive information; and if he will make a statement on the matter. [25898/16]
View answerOn 30 August, the European Commission announced that it had issued a negative decision in the Apple State aid case. The Commissioner held a press conference and published a press release setting out the basis of the decision.
At the same time, the Commission privately wrote to Ireland setting out its full opinion in a detailed and technical legal document.
This document contains highly sensitive commercial information relating to the taxpayer involved. As is the usual process, the taxpayer will be given the opportunity to identify extracts that are commercially sensitive, before it is published by the Commission.
The Commission has set a deadline to be notified of the extracts that will need to be redacted and it is important that this timeline be respected. The procedure being applied mirrors that which was used for the cases against the Netherlands, Belgium and Luxembourg, where it took several months for the Commission to make a copy of the decisions publicly available. This approach is also consistent with the process that was followed for the Commission's opening decision in the Apple case in 2014.
311. Deputy Fergus O'Dowd asked the Minister for Finance if he will review the criteria as cited by the Ombudsman for Children (details supplied) in regard to the medical criteria for the primary medical certificate; and if he will make a statement on the matter. [25911/16]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. The Medical Board of Appeal's clinical determination is limited to the scope of the six qualifying criteria, and the Board does not have discretion in relation to the application of these criteria. The criteria to qualify for the Scheme are necessarily precise and specific. After six months a citizen can reapply if there is a deterioration in their condition.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the repayment of excise on fuel used by members of the Scheme, the Scheme represented a cost of €50.3 million to the Exchequer in 2015, an increase from €48.6 million in 2014. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
312. Deputy Pearse Doherty asked the Minister for Finance the total annual number of persons who availed of each of the CAT group B and group C thresholds in each of the years from 2010 to 2014, in tabular form; the total value claimed through this threshold in each case; and the total number of persons whose claims exceeded this threshold in each case, broken down into regions as per the Revenue Commissioners organisational chart. [25930/16]
View answerI am advised by the Revenue Commissioners that the number of persons who availed of the Capital Acquisitions Tax Group threshold B and C in each of the years from 2010 to 2014 and the total number of persons whose claims exceeded each threshold are as shown in the following tables, broken down into Revenue administrative regions as requested by the Deputy.
The total value claimed through this threshold as requested by the Deputy is not readily available. Instead Revenue have provided the maximum amount of threshold available to claim by each of the individuals in the relevant category on the assumption that none of the individuals claimed previously using that threshold.
It should be noted that the number of claims exceeding the threshold refers to the number of individuals who exceeded their Group B or C thresholds in the relevant year. A portion of their threshold may have been utilised in earlier years in connection with other gifts or inheritances received.
2014
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|||||
|
|
B |
C |
B |
C |
B |
C |
B |
C |
B |
C |
|
Number availing of threshold |
2,174 |
818 |
4,093 |
1,374 |
2,123 |
739 |
2,171 |
867 |
10,561 |
3,798 |
|
Total value claimed through threshold €m |
66 |
12 |
123 |
21 |
64 |
11 |
65 |
13 |
318 |
57 |
|
Number of claims exceeding threshold |
1,464 |
605 |
3,116 |
1,109 |
1,565 |
598 |
1,592 |
686 |
7,737 |
2,998 |
2013
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|||||
|
|
B |
C |
B |
C |
B |
C |
B |
C |
B |
C |
|
Number availing of threshold |
1,760 |
700 |
3,820 |
1,274 |
2,004 |
760 |
2,114 |
855 |
9,698 |
3,589 |
|
Total value claimed through threshold €m |
53 |
11 |
115 |
19 |
60 |
11 |
64 |
13 |
292 |
54 |
|
Number of claims exceeding threshold |
1,218 |
525 |
2,891 |
1,020 |
1,418 |
587 |
1,522 |
653 |
7,049 |
2,785 |
2012
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|||||
|
|
B |
C |
B |
C |
B |
C |
B |
C |
B |
C |
|
Number availing of threshold |
2,108 |
877 |
3,940 |
1,363 |
1,745 |
735 |
1,880 |
825 |
9,673 |
3,800 |
|
Total value claimed through threshold €m |
71 |
15 |
132 |
23 |
58 |
12 |
63 |
14 |
324 |
64 |
|
Number of claims exceeding threshold |
1,394 |
682 |
2,955 |
1,122 |
1,191 |
554 |
1,308 |
644 |
6,848 |
3,002
|
2011
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|||||
|
|
B |
C |
B |
C |
B |
C |
B |
C |
B |
C |
|
Number availing of threshold |
2,152 |
897 |
3,988 |
1,477 |
1,740 |
817 |
1,899 |
912 |
9,779 |
4,103 |
|
Total value claimed through threshold €m |
71 |
15 |
132 |
25 |
58 |
14 |
63 |
15 |
324 |
69 |
|
Number of claims exceeding threshold |
1,384 |
580 |
2,863 |
1,177 |
1,179 |
613 |
1,240 |
719 |
6,666 |
3,089 |
2010*
|
Region |
Border, Midlands, West |
Dublin |
East and Southeast |
Southwest |
Total |
|||||
|
|
B |
C |
B |
C |
B |
C |
B |
C |
B |
C |
|
Number availing of threshold |
934 |
369 |
1,411 |
533 |
706 |
322 |
891 |
364 |
3,942 |
1,588 |
|
Total value claimed through threshold €m |
39 |
8 |
59 |
11 |
29 |
7 |
37 |
8 |
164 |
34 |
|
Number of claims exceeding threshold |
659 |
258 |
1,032 |
451 |
489 |
256 |
565 |
273 |
2,745 |
1,238 |
* Contains only half year information due to a changeover in information technology systems
313. Deputy John Curran asked the Minister for Finance if he will set out a clear and definite time line for the working group on motor insurance (details supplied) to complete its work and present its findings; if he will provide a full list of the meetings that have taken place to date with the various stakeholders; the progress being made by the groups; if the working group proposes taking public submissions; and if he will make a statement on the matter. [25951/16]
View answerThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance. The Working Group brings together all the relevant Departments and Offices involved with the process. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.
The core areas to be examined by the Working Group in this first phase are:
- The motor insurance sector generally, at present and in recent years,
- The effects of legal costs and litigation processes on insurance costs,
- The current claims compensation arrangements and the cost of claims,
- Insurance data and information,
- The impact of accident rates,
- The impact of unlawful activity on the insurance sector, and
- Other market issues.
A number of additional issues which impact upon consumers and the business sector in relation to motor insurance are also being considered. These include:
- The lack of a link between the National Car Test and the availability of insurance,
- Insurance costs for young drivers, and those over 65,
- The case for rural dwellers with no public transport to have car insurance at a reasonable cost,
- The issue of returning immigrants having difficulty obtaining car insurance,
- The cost of insurance to taxi drivers, hackneys and hauliers.
Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced. The sub-groups will be holding their second meeting in the coming days, and it is proposed that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group.
The Working Group has held two meetings to date, on 20 July and 1 September. It will hold its third meeting on 15 September. Further meetings are scheduled for every two to three weeks to the end of 2016.
The consultation process has commenced. Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including: Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance, and the Central Bank of Ireland.
The Working Group and the four sub-groups will also meet with the relevant stakeholders. At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, and possibly a couple of other relevant stakeholders depending on their availability. In addition, submissions received from all interested parties will be considered as part of the process.
By the end of October, the Working Group will provide me with an update report which will set out the priority actions required. From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.
315. Deputy John McGuinness asked the Minister for Finance the tax obligations relative to vulture fund companies buying investments and property here; if there are approved tax schemes in place which benefit such companies and funds; and if he will make a statement on the matter. [25975/16]
View answerWhile the term vulture fund is not recognised in the Taxes Acts, a small number of structures which may have been put in place for tax avoidance purposes have come to the attention of the of Revenue. Because of the small number of structures under review, Revenue are precluded, by taxpayer confidentiality, from providing any specific details.
Following the review undertaken by Revenue and recent media coverage on this topic I recently published a proposed amendment to section 110 of the Taxes Consolidation Act 1997. This amendment, which was published on 6 September on my Department's website, aims to address any misuse of the current section 110 regime in relation to Irish property.
Further amendments may be brought forward for my consideration as part of the Finance Bill to address other structures which are identified by Revenue or otherwise and which have the potential for misuse of the current legislation.
316. Deputy Pearse Doherty asked the Minister for Finance the value and weight of Ireland's gold reserves; if this gold is present here at all times; and if he will make a statement on the matter. [26003/16]
View answerThe Central Bank publishes the value of its gold and gold receivables in its annual report. The Central Bank Annual Report 2015 states the value of gold and gold receivables to be €188,167,000 as at 31 December 2015. The Annual Report also notes that gold and gold receivables consist of coin stocks held in the Central Bank of Ireland; gold bars are held on behalf of the Central Bank of Ireland at the Bank of England. The operation and maintenance of any secure vaults is a matter for the Central Bank of Ireland. For security reasons the Central Bank of Ireland does not provide any details regarding the content or location of vaults.
317. Deputy Pearse Doherty asked the Minister for Finance the number of applicants and the number of successful applicants, by city, under the living city initiative in tabular form; the division between commercial and residential applications and the tax foregone as a result of the scheme to date, by city. [26004/16]
View answerIn relation to the Living City Initiative, applications are only required to be made to the relevant local authority under the residential element of the scheme. Applications are not required to be made under the commercial element of the scheme. Additionally, Revenue do not compile statistics in relation to unsuccessful residential applications.
Based on information received from the City and County Councils to date, the number of successful applications received under the residential element of the Living City Initiative, per eligible city, is as follows:
|
City |
Applications Received |
|
Dublin |
19 |
|
Cork |
8 |
|
Limerick |
0 |
|
Waterford |
8 |
|
Kilkenny |
4 |
|
Galway |
2 |
Details of the numbers participating in the commercial element of the scheme should become available in early 2017 by which stage the tax returns for 2015 will be filed and processed. This is also the earliest date by which information in relation to the amount of tax relief claimed under the scheme will be available.
318. Deputy Jim O'Callaghan asked the Minister for Finance if, in addition to increasing the inheritance tax threshold for children in budget 2017, he will increase the threshold for siblings, which is currently at the low sum of €30,000, in circumstances where this penalises, in particular, siblings who have no children who wish to leave monetary assets to other siblings who also have no children and no source of income in order that the surviving sibling may be provided for in their old age. [26040/16]
View answerCapital Acquisitions Tax (CAT) is the overall title for gift and inheritance tax.
For the purposes of CAT, 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 life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.
There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.
Group A: tax free threshold €280,000 applies where the beneficiary is a child (including adopted child, stepchild 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. I raised this threshold from €225,000 to its current level as part of Budget 2016.
Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
Group C: tax free threshold €15,075 applies in all other cases.
Transfers and inheritance between spouses are not subject to CAT.
Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.
I have indicated that I see the change last year to the Group A threshold as the beginning of a process. The Deputy will be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Band A capital acquisitions tax threshold (including all gifts and inheritances from parents to their children) to €500,000. Depending on various factors, including the state of the public finances, I will examine the scope for further changes in the future, including the possibility of changes to the Group B and C thresholds.
As preparations for Budget 2017 and the consequent Finance Bill are ongoing, however, it would not be appropriate for me to comment on what changes, if any, are being considered to CAT or any other tax measure.
319. Deputy Clare Daly asked the Minister for Finance his views on the fact that the Revenue Commissioners are refusing to issue cheques and are requiring those who seek a refund for overpayment of taxes to open bank accounts in SEPA format, even though they may usually use credit unions and post offices. [26048/16]
View answerI am advised by Revenue that electronic payment transfer is a faster, less expensive and more secure way of receiving tax refunds/repayments. It is Revenue's strategy to establish the use of electronic channels as the normal way of conducting tax business. More taxpayers are engaging electronically with Revenue and utilising electronic fund transfers to settle their tax liabilities and receive tax refunds.
From May 2016 any repayments of tax to taxpayers who are mandatory efilers are repaid to a bank account designated by the taxpayer. This is in accordance with Tax Returns and Payments (Mandatory Electronic Repayment) Regulations 2016 which requires the repayment of specified liabilities as defined in earlier 2011, 2012 and 2014 Regulations to be made by electronic means. These regulations apply mainly to business taxpayers and are in line with the National Payments Plan, approved by Government in 2014 which recommended the end of cheque usage between Government and business.
For taxpayers not falling within these regulations such as taxpayers registered for PAYE and LPT, Revenue continues to issue cheques for tax refunds where the taxpayer has opted not to provide bank account details. For the 7 months to July 2016, 65% of PAYE customers had opted to provide their bank account details to Revenue and receive their refunds directly into a bank account. This represented 324,000 refunds to the value of €208m. For the same period 181,000 repayment cheques to the value of €110m were issued to PAYE customers who had not provided bank account details.
Since the introduction of SEPA in 2013, Revenue can process electronic fund transfers to Credit Unions who have developed the necessary IT capability to accept such transfers.
