Written Answers Nos. 56-79
56. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality the level of maternity and midwifery service provided within the prison system; the nursing and baby protocols which are in place; the number of babies born to prisoners in 2015, 2010, 2005 and 2000; and if she will make a statement on the matter. [29839/16]
View answerI am advised by the Irish Prison Service that the level of maternity care provided to women in custody, including both pre and ante-natal care, is comparable to that available to women in the community. It is provided on a shared care arrangement between the maternity hospital to which the patient is referred, and the Healthcare Team in the Dóchas Centre.
Pregnant women attend maternity hospital, and the babies receive the same care from Public Health Nurses as that provided to a baby born outside prison. The Dóchas Centre provides a 24hr nursing service, and has daily access to a Prison Doctor.
The Irish Prison Service ensures that provisions are made in the Dóchas Centre to facilitate new mothers keeping their infants with them so as not to disrupt early bonding. Each mother and child are provided with their own single room with en-suite facilities on their return to the Dóchas Centre after giving birth. Required items such as cot, baby food, nappies, etc are also provided. As there is no mother and baby unit in Limerick Prison, any woman who needs to be accommodated in such a unit is facilitated with a transfer to the Dóchas Centre.
The Irish Prison Service does not record data in the format requested in this question. However, it can confirm the number of children born to women in custody in 2015 was nil and in 2010 was two.
57. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality the level of training and upskilling that is provided to prisoners in the prison system; the prisons which provide such services; if there is a specific budget allocation for these services; and if she will make a statement on the matter. [29840/16]
View answerI am advised by the Irish Prison Service that it provides a wide range of rehabilitative programmes to persons in custody that include education, vocational training, healthcare, psychiatric, psychological, counselling, welfare, and spiritual services. These programmes offer purposeful activity to those serving their sentences and encourage them to lead law abiding lives on release. These programmes are available in all prisons and all persons in custody are eligible to use the services.
The provision of rehabilitative programmes to persons in custody forms a central part of the activities of the Irish Prison Service. There is a clear commitment to enhance sentence planning through the Integrated Sentence Management system which involves an emphasis on individuals taking greater personal responsibility for their own development through active engagement with both specialist and non-specialist services in the prisons. The end result is a person-centred multi-disciplinary approach to working with persons in custody with provision for initial assessment, goal setting and periodic review to measure progress.
The Irish Prison Service has been expanding the number of accredited courses and opportunities available to prisoners in Work Training in recent years. Enhanced partnership arrangements with accrediting bodies such as City and Guilds and the Guild of Cleaners and Launderers and the centralising of coordination and quality assurance arrangements have enabled the Irish Prison Service to extend the number of available courses and activities with certification.
The guiding principles which underpin the prisons' work and training service are to make available work, work-training and other purposeful activities to those in custody. Training activities are chosen to give as much variety as possible and also to give opportunities for those in prison to upskill and to acquire practical accredited skills which will help them secure employment on release. The provision of essential prison services such as catering, industrial cleaning and laundry services also form an important part of work training and skills development in all prisons. The budget for 2016 for work training activities is €1.8 million. This budget covers equipment and supplies for work training areas across all prisons.
In addition the Department of Education and Skills provides an allocation of 220 whole time teacher equivalents in partnership with the Irish Prison Service through the Education and Training Boards (ETB). The focus is on providing education which is quality assured, student centred and facilitates lifelong learning through helping those in custody to cope with their sentence, achieve personal development and prepare for life after release. A broad and flexible curriculum is provided which ranges from basic literacy classes and peer led tutoring to Open University courses. There is an increasing focus on QQI (formerly FETAC) accreditation as the modular structure is suitable to the needs of students in prison. The budget for Educational Services in Irish Prisons for 2016 is €1.265 million. This budget covers equipment and supplies for educational centres across all prisons.
58. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality the total cost for the provision of drugs to prisoners in the prison system; the way such drugs are provided to prisoners; if her attention has been drawn to any abuses of the service; and if she will make a statement on the matter. [29841/16]
View answerI am advised by the Irish Prison Service that the total expenditure on pharmaceuticals (including all medicines, and methadone) in 2015 was €2,697,163.
Professional General Pharmacy Services are provided in all prisons on the basis of a contract with a local community pharmacy, and both the technical (supply) and professional (pharmaceutical care) elements of pharmacy service provision are provided as part of agreed contracts. This ensures that an up-to-date, patient centred pharmacy service which complies with all professional and ethical standards is provided to all prisons.
59. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality the number of prisoners currently serving a life sentence; the average time a life prisoner serves incarcerated in prison; and if she will make a statement on the matter. [29842/16]
View answerI am advised by the Irish Prison Service that on 30 September 2016 there were 347 prisoners in custody serving life sentences.
I can also advise the Deputy that there were a further 82 prisoners serving life sentences in the community on reviewable temporary release, who continue to serve a life sentence under the supervision of the Probation Service. The average time these prisoners served in prison was 18.5 years.
60. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality the progress being made to allow the Office of the Ombudsman to be given jurisdiction to deal with complaints relating to the prison service; and if she will make a statement on the matter. [29844/16]
View answerThe report of the Inspector of Prisons on the prisoner complaints system “Review, Evaluation and Analysis of the Operation of the present Irish Prison Service Complaints Procedure” was published on 8 June, 2016 and is available on my Department's website - www.justice.ie. This identified a number of concerns in the implementation of the current complaints procedure. Arising from this I met with the Inspector of Prisons to discuss his findings. The Inspector made it clear to me that he considered the Irish Prison Service has to retain a central role in the complaints process but with independent oversight and that he was satisfied that a fair and effective complaints procedure could be achieved with the implementation of his recommendations. I also had a separate meeting with the Director General of the Irish Prison Service to see what action needed to be taken following on from the report.
In the light of this report, it is clear that more needs to be done before we have a system that will gain the full confidence of staff, prisoners and the general public. One of the key recommendations in the Inspector's report is that prisoners’ complaints would be subject to review by the Ombudsman, who would also be able to deal with complaints directly in the case of undue delay. I accept this recommendation and my officials have already had a number of meetings with the Ombudsman's office and will be engaging with Department of Public Expenditure and Reform on the matter.
In my meeting with the Inspector about his report, I specifically asked him to keep the complaints procedure under review and to give me regular reports. I emphasised that the rights of all prisoners, including vulnerable prisoners, have to be promoted and an effective complaints system is just one aspect of achieving this goal.
61. Deputy Sean Fleming asked the Minister for Finance the position regarding payment of the household charge of €100 that was introduced prior to the local property tax where an elderly person did not receive any information or documentation on this matter and the amount still remains outstanding; the balance due on a single house in this situation; and if he will make a statement on the matter. [29536/16]
View answer84. Deputy Sean Fleming asked the Minister for Finance the position relating to an elderly person in their late 80s who never received any communication regarding local property tax and has not paid this and any amount due based on the minimum value of the house; the arrangements which can be put in place due to the fact that it has not yet been paid or the person has not been contacted on this matter; and if he will make a statement on the matter. [29542/16]
View answerI propose to take Questions Nos. 61 and 84 together.
Local Property Tax (LPT) is a self-assessed tax, which places the onus on the taxpayer to comply with statutory obligations even in circumstances where there has been no contact from Revenue.
Section 156 of the Finance (Local Property Tax) Act 2012 converted any arrears of Household Charge (HHC) that were still outstanding on 1 July 2013 to a Local Property Tax (LPT) liability of €200 per property, and made Revenue responsible for collecting the increased amounts.
To facilitate the commencement of LPT, Revenue developed the first ever Register of residential properties in the State. The Register was developed using data drawn from a range of sources including Revenue's own databases, the Local Government Management Agency database and various other sources. Given the scale of the task it was inevitable that there would be some level of error and Revenue consistently advised property owners to make contact if for example, an LPT Return was received in error or if an expected notification was not received.
In regard to the case/s mentioned by the Deputy, it is not possible without more specific information to determine the exact reason as to why the person/s did not receive any notifications from Revenue in respect of either LPT or HHC. However it may be that the person/s details were inadvertently excluded from the Register, possibly due to data matching errors, which would prevent the issuing of the various notifications. However the non-issuing of the notifications does not mean the liability is not correctly due nor does it prevent the unpaid liability attaching as a charge on the property.
To bring matters up to date the Deputy should advise the person/s to make immediate contact with Revenue at direct dial telephone number 065-6849081. Revenue will be happy to assist the person/s in any way possible including in regard to the various phased payment options that exist or possibly in regard to deferring the liability, depending on the exact circumstances of the case/s.
62. Deputy David Cullinane asked the Minister for Finance if he has given consideration to regional specific targets for bank lending to small and medium enterprises; and if he will make a statement on the matter. [29649/16]
View answerSmall and medium sized businesses play a central role in the sustainable recovery of the Irish economy. Government policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. As the Deputy will be aware, Chapter 7 (Finance for Growth) of this year's Action Plan for Jobs (APJ) sets out a range of commitments to ensure viable SME's can access appropriate finance at a reasonable cost from both bank and non-bank sources. These Government policies have supported a year on year increase in new lending.
The Deputy may be aware that as part of the 2011 recapitalisation exercise, the previous Government imposed SME lending targets on AIB and Bank of Ireland for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion last year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks have achieved these targets. Although the targets were a useful policy intervention, the focus needed to shift towards the collation and examination of granular data. Therefore, in line with Action 144 of the APJ, officials from my Department collate and examine on a monthly basis, granular data including regional data, on the funding of the activities of SMEs from both AIB and Bank of Ireland, the wider banking sector and increasingly the non-bank funding sector.
In addition, AIB and Bank of Ireland meet my officials, and those of the Credit Review Office, on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment and to keep them abreast of issues pertaining to the SME sector. This facilitates the Department and the Credit Review Office in ensuring that new lending to SMEs continues to increase as a percentage of total sanctioned lending and assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
The Government remains committed to the SME sector, as reflected in the Programme for a Partnership Government, and sees it as a key engine of ongoing economic growth. Consequently my Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit on both a macro, sectoral and regional basis in order to ensure that there is sufficient access to finance for SMEs.
It should be noted that the imposition of regional commercial bank lending targets could lead to target driven credit decisions that could pose financial stability risks to our wider economy. The Deputy will be aware that in my role as Minister for Finance I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution. This includes decisions in relation to pricing, products and lending decisions as determined by the banks.
63. Deputy Bobby Aylward asked the Minister for Finance if he has examined the possibility of extending the home renovation incentive scheme beyond the current deadline of 31 December 2016 for homeowners and landlords; if there are any plans within his Department for same; and if he will make a statement on the matter. [29664/16]
View answerAs the Deputy is aware, the Home Renovation Incentive (HRI) was introduced in Budget 2014 and is scheduled to run until the end of December this year. The incentive provides tax relief for homeowners by way of an income tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. In Budget 2015 I extended the scheme to include rental properties, whose owners are subject to income tax.
Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €4,405 (exclusive of VAT) which would attract a credit of €595. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out.
The aim of the incentive is to stimulate increased activity in the construction sector and boost employment. It is aimed at supporting fully tax compliant builders and moving activity out of the shadow economy into the legitimate economy as all expenditure and relief claims have to be registered electronically with the Revenue Commissioners.
In relation to the Deputy's query as to whether the HRI will be extended, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions. However, as with all tax reliefs, the HRI will be considered as part of the forthcoming Budget and Finance Bill and any relevant announcements will be made on Budget Day.
64. Deputy Tom Neville asked the Minister for Finance the value of the new housing plan to a first-time buyer; if there are conditions; if it is available to everyone or if there are restrictions; and if it will just apply from the date of the budget or if the announcement will be backdated. [29665/16]
View answerThe Government is conscious that there is a supply shortage of housing and of the challenges faced by first-time buyers in meeting the macro prudential rules for home loans. As a complement to the structural actions in 'Rebuilding Ireland - Action Plan on Housing and Homelessness' published on 19 July 2016, the introduction on Budget day of a new tax-based 'Help to Buy' incentive was announced.
Subject to the approval of the Oireachtas, eligibility for the incentive will be backdated to take effect from 19 July 2016. This was the date of the publication of the Action Plan and the backdating was announced at that time with a view to avoiding any interruption in house sales, by potential purchasers deciding to defer purchases, pending the commencement of the incentive.
I will outline further details in relation to the incentive on Budget day.
65. Deputy Tom Neville asked the Minister for Finance if he will examine the case of a person (details supplied) and advise on the best course of action; and if he will make a statement on the matter. [29223/16]
View answerI am advised by Revenue that contact was made with the person concerned to explain the tax treatment of the lump sum received and the possibility of a repayment of tax after the end of the year, subject to a claim by the person concerned to Revenue.
66. Deputy Jim Daly asked the Minister for Finance if there is a separate test for tax residency through the immigrant investor programme and approved with the tax authorities here, namely the 183 day rule; and if he will make a statement on the matter. [29237/16]
View answerI am advised by Revenue that there is no test to determine tax residency as part of the Immigrant Investor Programme.
The legislation governing the tests to determine if an individual is Irish tax resident is found in Part 34 of the Taxes Consolidation Act 1997. The residence and ordinary residence rules in the Act apply solely for tax purposes and do not have any other application. The tests have general application to all individuals.
Section 819 of the Taxes Consolidation Act 1997 outlines that an individual is resident in the State for tax purposes for a tax year if he or she is present in the State for
(a) 183 days in that tax year, or
(b) 280 days between that tax year and the previous tax year with a minimum of 30 days in each year.
Section 820 of the Taxes Consolidation Act 1997 outlines how an individual becomes ordinarily resident in Ireland. The term ordinary residence refers to an individual's pattern of residence over a number of tax years. If an individual has been resident in the State for three consecutive tax years, he/she is regarded as ordinarily resident from the beginning of the fourth tax year.
Finally, I should say that matters pertaining to the Immigrant Investor Programme fall within the responsibility of my colleague, the Tánaiste and Minister for Justice and Equality, Frances Fitzgerald T.D.
67. Deputy Mattie McGrath asked the Minister for Finance if he will introduce a vehicle registration tax, VRT, relief on vehicles purchased by community and voluntary groups in budget 2017; and if he will make a statement on the matter. [29247/16]
View answerThe Programme for a Partnership Government recognises the difficulties faced by community and voluntary groups in relation to VRT rates on vehicles, and commits to examining the issue.
However, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
68. Deputy Mattie McGrath asked the Minister for Finance if he will introduce a home carer's credit in budget 2017 to support parents who stay at home to care for their children, thereby giving greater parental choice; and if he will make a statement on the matter. [29257/16]
View answerI am pleased to inform the Deputy that a Home Carer Tax Credit is already currently available to families where one parent works primarily in the home to care for children or the elderly. Furthermore, I increased this credit in Budget 2016 to €1,000 and there is a commitment in the programme for Government to increase it further. In this regard, any further increase would generally be announced as part of the Budget.
The Home Carer Allowance (as it was then) was first introduced in Finance Act 2000 in the context of the commencement of a planned move to the full individualisation of the income tax system. Such a system would have resulted in a two-parent, single-earner family having the same net income from a given gross wage as a single individual i.e. it would no longer be possible for the tax bands and allowances of the non-earning spouse to be used by the earning spouse. The Home Carer Allowance was introduced in order to ensure a balance was maintained between those going out to work and carers in the home, and in recognition of the choices families make in caring for dependents in the home.
In the case of PAYE taxpayers Revenue has, for a number of years, taken steps to automatically allow the Home Carer Credit without the person having to make a claim, wherever possible. For example, Revenue uses data it receives from the Department of Social Protection in relation to child benefit, together with other data from Revenue's own records, to automatically grant the credit. Revenue also pre-populates the annual tax returns of self-assessed taxpayers with the Home Carer Credit where it was claimed in the previous year. In 2014, the most recent year for which full information is available, the Home Carer Credit was claimed by approximately 80,900 families, at an exchequer cost of €60.9 million.
69. Deputy Joan Burton asked the Minister for Finance if his Department has investigated expanding urban renewal and living over the shop initiatives, to encompass a tax break for first time purchasing owner-occupiers wishing to renovate unoccupied dwellings; and if he will make a statement on the matter. [29261/16]
View answer79. Deputy Joan Burton asked the Minister for Finance if his Department investigated expanding urban renewal and living over the shop initiatives to encompass a tax break for first time purchasing owner-occupiers wishing to renovate unoccupied dwellings; and if he will make a statement on the matter. [29453/16]
View answer83. Deputy Joan Burton asked the Minister for Finance the measures and tax incentives his Department has implemented to date to encourage the renovation of existing homes; if he has considered further expanding these schemes to encourage first-time buyers to renovate currently unoccupied dwellings; and if he will make a statement on the matter. [29535/16]
View answerI propose to take Questions Nos. 69, 79 and 83 together.
The Home Renovation Incentive (HRI) provides for an income tax credit for homeowners or landlords who carry out repair, renovation or improvement work on their property. The aim of the Incentive is to support tax compliant building contractors by moving activity out of the shadow economy into the legitimate economy. The Incentive was introduced in October 2013. It provides for tax relief for homeowners or landlords by way of an income tax credit at 13.5% of qualifying expenditure. Qualifying work must cost a minimum of €5,000 including VAT at 13.5% rate. The maximum qualifying cost for the purpose of the incentive is €30,000 including VAT at 13.5%. This equates to a maximum tax credit of €4,050. The tax credit is payable over the two years following the year in which the work is paid for.
The Living City Initiative is a scheme of property tax incentives designed to regenerate both historic buildings and other buildings in specified cities. The scheme applies to certain special regeneration areas (SRAs) in the centres of Dublin, Cork, Limerick, Galway, Waterford and Kilkenny. The relief applies to both residential and commercial refurbishment and conversion work that is carried out during the qualifying period. There are two types of tax relief available under the Living City Initiative - an owner-occupier residential element, and a retail/commercial element. The Deputy may be aware that there is a commitment in the programme for Government to review this initiative and the conditions that apply to the size of properties, with a view to boosting the attractiveness of the scheme, which will contribute to both built heritage and urban regeneration.
There is another tax relief available for expenditure incurred on the maintenance of significant buildings and gardens, which is provided for in Section 482 of the Taxes Consolidation Act 1997. To qualify for this relief the relevant building must be determined by the Minister for Arts, Heritage and the Gaeltacht to be of significant scientific, historical, architectural or aesthetic interest. In addition, the Revenue Commissioners must be satisfied that reasonable access to the building is afforded to the public.
These reliefs provide support for the renovation of dwellings by both first time buyers and other owner-occupiers and they are reviewed regularly with any relevant changes usually announced on Budget day.
70. Deputy Joan Burton asked the Minister for Finance the advice he has taken and received in respect of the reported difficulties of a bank (details supplied); the likely implications for Ireland and the euro of the difficulties in the German banking system; if he has made a risk assessment; his proposals to protect the Irish banking system and economy; and if he will make a statement on the matter. [29264/16]
View answerIt would not be appropriate for me to comment in detail on media speculation concerning the performance of an individual foreign bank.
However, I can assure the Deputy that both my Department and the Central Bank are monitoring the situation very closely in collaboration with our EU colleagues. In that respect my Department is not aware of any material financial exposure on the part of the Irish banks to the bank in question.
The Irish Banks are obviously impacted by a lot of the issues facing the European banking sector generally, including the low interest rate environment, weaker loan growth, increased regulatory costs, and the fallout from the UK referendum on membership of the EU. However, notwithstanding these headwinds, the underlying financial performance of the Irish banks has continued to remain strong throughout 2016. Nevertheless, the impact of the challenges that I have cited has clearly been reflected in the weakness and volatility we have seen in the share price performance of the Irish banks and across the sector.
It should also be noted that all significant banks in the EU are covered by comprehensive common supervisory, recovery and resolution regimes for ensuring long term financial and economic stability across the Union. These Banking Union regimes, have created greater separation between the banking system and sovereigns, which is important in terms of limiting the impact of banking sector difficulties on taxpayers.
71. Deputy Noel Rock asked the Minister for Finance the steps being taken by his Department to remove Ireland from a blacklist of tax havens by the Department of Federal Revenue of Brazil; and if he will make a statement on the matter. [29291/16]
View answerI was surprised and disappointed to learn that the Brazilian Federal Revenue Service added Ireland to Brazil's tax black list. I understand that the operation of the listing was initially backdated to 1 August but was subsequently suspended until 1 October. No notice of this decision was given to the Irish Government by the Brazilian Federal Revenue Service.
Efforts to seek Ireland's removal from this list have been undertaken by my Department and the Department for Foreign Affairs and Trade. Ireland's ambassador to Brazil is leading our engagement with the Brazilian Federal Revenue Service to seek Ireland's removal from this list as soon as possible. A formal request for the listing to be suspended has been filed with the Brazilian Revenue and we are awaiting a reply to this request. My officials are in close contact with the Ambassador and supporting these efforts.
I strongly reject any allegations that we are a tax haven. Ireland does not meet any of the international standards for being considered a tax haven. Ireland is fully compliant with all international best practices in the areas of tax transparency and exchange of information. Ireland's corporate tax policies are designed to attract real and substantive operations to Ireland. Ireland has not been and will never will be a brass-plate location. We only have and want real substantive FDI, the kind that brings real jobs and investment into Ireland. Ireland is an active participant in global work to reform the international corporate tax system. We have implemented Country by Country Reporting, agreed the Anti-Tax Avoidance Directive and are working towards the implementation of the remaining OECD BEPS recommendations both domestically and internationally.
72. Deputy Joan Burton asked the Minister for Finance the likely increase in the Irish contribution annually to the EU budget in percentage and euro values; and when that will commence in the event of a UK Brexit being initiated under Article 50. [29297/16]
View answerUntil it formally withdraws from the Union, the UK remains a full EU Member, with all of its existing rights and obligations including in relation to the EU budget. Brexit is likely to involve complex discussion on the Multiannual Financial Framework, particularly as the UK is an important net contributor to the EU Budget. Therefore, Brexit will have a significant impact on EU Budget funding and expenditure and may need to be mitigated by either increased contributions from other Member States, reductions in EU funding programmes, or a combination of both.
While my Department has undertaken some broad modelling work to estimate the potential impact of Brexit on our EU budget calculations, this analysis will need to be developed in more detail in the coming period, when the parameters of the budget negotiations are better defined. In particular, a key point will be getting agreement amongst the EU27 on a common approach to the future of the EU Budget.
73. Deputy Noel Rock asked the Minister for Finance if the forthcoming budget will take into account the potential impact of excise increases on consumer behaviour; if Exchequer projections factor in potential declines in consumption or an increase in cross-Border shopping; and if he will make a statement on the matter. [29305/16]
View answerMy Department's Budget 2017 macroeconomic forecasts incorporate a number of factors including the impact of budgetary measures at a macro level. The macro-drivers are then applied to tax revenue base and assist along with other factors in the production of the tax revenue forecasts.
Budgetary decisions are made factoring in all available data, including cross-border considerations. Excise rates are only one variable price component of cross-border trade. The applicable VAT rate in both jurisdictions is another variable and Sterling and Euro exchange rate provides the largest variable.
The Revenue carry out regular cross-border survey's which chart price differentials using a representative sample across all excisable products. This information is published on the Revenue website.
74. Deputy Shane Cassells asked the Minister for Finance if he will extend the 9% VAT rate available in the hospitality sector to owners of beauty salons who at present are excluded from this measure and are therefore at a competitive disadvantage to others in their industry who can avail of the lower VAT rate; and if he will make a statement on the matter. [29313/16]
View answerVAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. While most tourist related services are subject to the 9% reduced VAT rate, it is not possible to extend this treatment to all tourist activity, such as beauticians working in the tourism industry.
While hairdressing services apply at the 9% rate, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate. This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as parked items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.
75. Deputy Seán Crowe asked the Minister for Finance if his attention has been drawn to the fact that a bank (details supplied) recently closed the account of the Irish Palestine solidarity campaign, IPSC; and if he will urgently raise the issue with the bank. [29360/16]
View answerI can confirm for the Deputy that I am aware of matter he has referred to.
Notwithstanding the State's 14% minority shareholding in BOI, it should be noted that I in my role as the Minister for Finance, have no direct function in the relationship between the bank and its customers. Decisions taken by the bank in this regard are matters for the board and management of the institution. The Minister for Finance must ensure that the bank is run on a commercial, cost effective and independent basis to protect the value of the bank as an asset to the State. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and the bank. This Framework was published on 30 March 2012 and is available at: http://www.finance.gov.ie/sites/default/files/Bank-of-Ireland1.pdf. Accordingly, it is not appropriate for me to intervene in the matter.
I understand that the IPSC intends raising the matter with the Financial Services Ombudsman. This is the appropriate action for the IPSC to take to ensure it has been treated fairly in this case.
76. Deputy Pearse Doherty asked the Minister for Finance if he will legislate to ensure that Irish collective asset-management vehicles are used for their purpose of investment by funds rather than as a tool for investment by a person; and if he will make a statement on the matter. [29378/16]
View answerIrish Collective Asset-management Vehicles ("ICAVs") are corporate entities which may only operate as regulated collective investment schemes ("funds"); either Undertakings for Collective Investment in Transferable Securities ("UCITS") or as Alternative Investment Funds ("AIFs").
The ICAV is one of a range of legal structures available only to managers of regulated collective investment schemes including: Investment Companies established in accordance with Part 24 of the Companies Act 2014; Investment Limited Partnerships established in accordance with the Investment Limited Partnership Act 1994; Common Contractual Funds established in accordance with the Investment Funds, Companies and Miscellaneous Provisions Act 2005; and Unit Trusts established in accordance with the Unit Trust Act 1990.
The primary rules concerning the establishment and operation of UCITS are the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 which transpose Directive 2009/65/EC (the UCITS Directive), and the primary rules concerning the establishment and operation of AIFs are set out in the Central Bank's AIF rulebook. Rules concerning the managers of AIFs are set out in the European Union (Alternative Investment Fund Managers) Regulations 2013 which transpose Directive 2011/61/EU "the Alternative Investment Fund Managers Directive).
I do not currently propose to bring forward legislation to amend funds legislation for the specific purpose to which the deputy refers. However, I should add that officials in my Department and in the Office of the Revenue Commissioners are examining the use of certain structures in the Irish property market and that I am considering targeted proposals in relation to the use of collective investment schemes in the Irish property market for the forthcoming Finance Bill.
77. Deputy Peter Burke asked the Minister for Finance the reason a person (details supplied) has had her tax credits adjusted by the Revenue Commissioners and is deemed to owe tax according to her employer. [29383/16]
View answerI am advised by Revenue that the person concerned had her tax credits reduced to reflect the fact that she was in receipt of Maternity Benefit, Job Seekers Benefit and One Parent Family Payment. Revenue would expect that, notwithstanding the reduction in tax credits, based on her current earnings the person would not be due to pay tax. Revenue will make direct contact with the employer concerned to clarify matters and confirm the position as regards liability to tax for the person concerned.
78. Deputy Maureen O'Sullivan asked the Minister for Finance given that under Statutory Instrument No. 271 of 2016 roll-your-own tobacco must come in minimum 30g sized packs, previously 12.5g or 25g, if the Revenue Commissioners have the necessary measures to deal with the likely increase of illicit pouches on the market due to 22% of 25g consumers and 29% of 12.5g consumers stating that they would seek an alternative source of supply for their product. [29397/16]
View answerI understand that the European Union (Manufacture, Presentation and Sale of Tobacco and Related Products) Regulations 2016, made by my colleague the Minister for Health, will require that retail packets of roll-your-own tobacco contain tobacco weighing not less than 30 grams. Enforcement of compliance with this requirement will be a matter primarily for the Health Services Executive.
The role of Revenue in respect of tobacco products is to act against the illegal sale or distribution of such products, in situations where there is evasion or attempted evasion of excise duty or the products do not carry the tax stamp required by law.
Action against all aspects of the illegal tobacco trade is, and will continue to be, a priority for Revenue, and includes a range of measures to identify and target persons engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those involved. Revenue's multifaceted strategy encompasses, also, ongoing analysis of the nature and extent of the problem, extensive cooperation (including the development and sharing of intelligence) on a national, EU and international basis, use of analytics and detection technologies and optimising the deployment of resources.
A combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages contribute to the effectiveness of Revenue's goal of intercepting the supply of illicit tobacco products. Revenue also target the illicit trade at post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
I am assured by Revenue that action against illegal activity involving tobacco products will continue to be a central element of their work. For my part, I have acted through the Finance Acts over recent years to ensure that Revenue has the statutory powers necessary for undertaking its important work against the illegal tobacco trade, and I am satisfied that the current legislative framework provides an effective basis for action against tobacco offences.
