Tuesday, 13 Dec 2016

Written Answers Nos. 151-74

Departmental Expenditure

Questions (151)

Niall Collins

Question:

151. Deputy Niall Collins asked the Minister for Finance the total photography costs for his Department per annum since March 2011, inclusive of costs incurred from use of the ministerial allowance in tabular form; the occasions for which photographers were booked; the photographers used; the breakdown of costs associated with each occasion that a photographer was used; if there is a policy regarding the booking of photographers within his Department; and if he will make a statement on the matter. [39470/16]

Written answers

Minister for Finance

In response to the Deputy's question the total photography costs for my Department and the details of the occasions on which photographers were used since March 2011 are contained in the following table:

Photography Costs

Year	List of Occasions	Photographer Used	Cost €	Total Cost per annum
2011	Signing of Taxation agreement with Germany  Engaged on 31st March, 2011	Maxwell Photography Ltd	400.21	400.21
2012	Signing ceremony for Double Taxation Agreement with Uzbekistan Engaged on 11th July, 2012	Maxwell Photography Ltd	147.60	432.65
2012	Signing ceremony for Double Taxation Agreement with Switzerland: Minister of State Hayes and the Swiss Ambassador Engaged on 26th January, 2012	Maxwell Photography Ltd	285.05
2014	Department of Finance graduation ceremony for the Diploma in Taxation Policy and Practice, the Diploma in Project Management, and the Refund of Fees attended by Minister Noonan Engaged on 3rd September, 2014	Maxwell Photography Ltd	510.75	510.75
2015	Irish Institute of Training and Development (IITD) award to Department of Finance for "Best Learning and Development Organisation": 2 staff members Engaged on 6th March, 2015 by IITD	Events Portraits Ltd	95.75	558.28
2015	Department of Finance Learning and Development Recognition of Awards Ceremony, attended by Minister Noonan Engaged on 29th October, 2015	Maxwell Photography Ltd	462.53
2016	Irish Institute of Training and Development (IITD) award photo 26th February, 2016	Brendan Lyon Photography	105.00	105.00

For the sake of completeness, the Deputy may also wish to note that photographic training was supplied by the Gallery of Photography ADS Studio to a staff member during 2016 at a cost of €200.

The Department's policy regarding the booking of photographers is to follow the relevant public procurement guidelines and procedures.

Consultancy Contracts Data

Questions (152)

Niall Collins

Question:

152. Deputy Niall Collins asked the Minister for Finance the external consultant reports commissioned by his Department since March 2011 per annum in tabular form; the costs per report; the company involved; the title of the report; and the publication date. [39486/16]

Written answers

Minister for Finance

The information requested by the Deputy in relation to external consultant reports commissioned by my Department since March 2011 is listed in the following table:-

Year	External Consultant Report	Name	Cost	Published
2016	Review of Corporation Tax Code	Seamus Coffey	Review ongoing	Review ongoing
2016	SME Lending Survey October 2015 - March 2016	Red C	€58,979.00	Published June  2016**
2015	Review of Local Property Tax	Dr Don Thornhill	Nil	Published - October 2015
2015	Tax breaks and the residential property market	ESRI	€30,677.43	Published - October 2015
2015	Spillover analysis of the effects of the Irish tax system on the economies of developing countries	IBFD	€94,678.00	Published - October 2015
2015	Review of marine taxation	Indecon	€106,887.00	Published - October 2015
2015	SME Lending Survey May 2015 - October 2015	Red C	€58,979.00	Published September 2015**
2015	Assessment of special regeneration areas for the Living City Initiative	John Martin	€2,500.00	Not published. Used as input to the decisions made on the special regeneration areas. The details of these areas were published when the Living City Initiative was launched.
2015	The provision of a review of the current Health and Safety Arrangements within the Department of Finance and the Department of Public Expenditure and Reform. The final objectives are to update the Health and Safety Management Systems within both Departments in order to build on existing Health and Safety culture and practices within both Departments	Antaris Consulting	€16,113.00	Not published. Internal Health & Safety report only. While the Department of Finance is the client the service is being provided to both the Department of Finance and the Department of Public Sector and Reform.
2015	SME Lending Survey November 2014 - April 2015	Red C Research & Marketing Ltd	€58,978.50	Published - April 2015**
2014	Cost benefit analysis of Irish Agri-taxation measures and international benchmark against other Agri-taxation incentives	Indecon	€103,689.00	Published - October 2014
2014	Effective rates of corporation tax in Ireland	Seamus Coffey	€4,900.00	Published - April 2014
2014	Importance of tax policy in the location choices of multi-nationals	ESRI	€30,750.00	Published - October 2014
2014	Research Programme on funding for Small, Medium Enterprises	ESRI	€122,833.96	Published - October 2014
2014	The historical development and international context of the Irish corporate tax system	Ernst & Young	€6,150.00	Published - October 2014
2014	SME Lending Survey April-October 2014	Red C Research & Marketing Limited	€58,978.50	Published - November 2014**
2014	SME Lending Survey October-March 2014	Red C Research & Marketing Limited	€58,978.50	Published - June 2014**
2014	Review of existing facilities management processes	MKF Property Services	€28,720.50	Published - June 2014
2013	Assistance and Analysis in the Preparation of the Medium-Term Economic Strategy 2014-2020	PMCA  Economic Consulting	€49,043.00	Not published. It was commissioned to provide evidence-based economic analysis as an input to the MTES. This analysis is reflected in the text of the MTES.
2013	Spatial Development Patterns - Implications for the Medium Term Economic Strategy (MTES)	ESRI	€4,624	Not published. Used as input to MTES and analysis is reflected there.
2013	Report to Department in respect of a survey of R&D Active Companies 2013	Crowe Horwath	€36,850.80	Published
2013	Ex ante cost benefit analysis of proposed Living City Initiative	Indecon	€28,290.00	Published
2014	Reviews into Mortgage Servicing	Citibank Europe plc	€0.00	Cancelled
2013	SME Lending Survey October-March 2013	Red C Research & Marketing Limited	€59,593.50	Published**
2013	SME Lending Survey April-September 2013	Red C Research & Marketing Limited	€58,978.50	Published**
2013	Remuneration Review of Covered Institutions	Mercer (Ireland) Limited	€146,370.00	Published
2012	External Review of the Compilation of General Government Debt Statistics	Deloitte & Touche	€ 61,553.00	Published
2012	(a)    Survey of audio-visual producers (b) Review on international review of audio-visual state supports	BDO and Amarach	€64,575.00	Published
2012	Assessment of Credit Review Office	Grant Thornton	€31,807.80	Published
2012	SME Lending Survey October-March 2012	Mazars	€60,885.00	Published**
2011	SME Lending Survey April-September 2011	Mazars	€52,453.50	Published**
2012	SME Lending Survey April-September 2012	Red C Research & Marketing Limited	€61,438.50	Published**
2011	Acquisition by AIB of EBS Building Society	Charles River Associates	€50,000.00	Published
2011	Mortgage arrears report commissioned to feed into Government strategy	ARAM International Partners	€100,000	Not published. It informed the deliberations of the Keane Group and fed into the Keane Report on Mortgage Arrears.

  **Reimbursed by AIB & Bank of Ireland

The Deputy may wish to note that the list does not include research outputs under the joint Macro-economy and Taxation research programme between the Department of Finance and the Economic and Social Research Institute (ESRI).

In order to comply with the Department's safety, health and welfare at work obligations the Department also commissioned a number of assessments/audits over the period and will forward the details of these to the Deputy if required.

Finally, the Deputy may also wish to note that the response does not capture expert witness statements/evidence/reports which were commissioned for the purposes of providing evidence to the courts and would never have been intended for publication but would instead be exhibited to the courts.

Public Relations Contracts Data

Questions (153)

Niall Collins

Question:

153. Deputy Niall Collins asked the Minister for Finance the details of the use of external public relations firms employed by his Department per annum since March 2011 in tabular form; the list of uses of the external public relations firm; the internal Department policy with regard to employing external groups; and if he will make a statement on the matter. [39502/16]

Written answers

Minister for Finance

I take it that the Deputy is referring solely to external public relations and not to advertising that would be incurred by my Department in the normal course of business, such as entries into telephone directories, the placing of advertisements in national newspapers, recruitment advertising, etc.

The use of external public relations firms in respect of my Department since March 2011 is outlined in the following table:

Year Commenced	Use of External Public Relations Firms	Public Relations Firm
2015	Following the Government decision of 13 May 2015 on mortgage arrears, my Department was asked to coordinate the development and implementation of a communications strategy around the Government-funded and other available supports for borrowers in arrears.  The duration of the contract was from October 2015 until June 2016.  Responsibility for the mortgage arrears publicity campaign now rests with the Abhaile Mortgage Arrears Resolution Service.	Carr Communications was the successful tenderer following a public procurement exercise advertised on Etenders.
2015	Under the Action Plan for Jobs 2015, action 110 required an "advertising campaign to leverage support for and drive utilisation of the Supporting SMEs Online Tool and increase awareness of the existence of State supports for business." This advertising campaign was co-ordinated by the SME Communications Group a sub-group of the SME State Bodies Group which is chaired by my Department.	ICAN was the successful tenderer following a public procurement exercise.
2016	As part of a range of competition measures agreed with the European Commission under their respective EU-Restructuring plans AIB and Permanent TSB are required to provide funding to a public awareness campaign (such campaign to be facilitated by Ireland through an appropriate state body) to raise awareness and promote customer switching. As such my Department are currently managing a contract for the provision of Research, Design and Media Buy Services (Public awareness and customer switching campaign) in retail banking markets. This is being funded in its entirety by the two banks.	Language Communications Ltd was appointed as Prime Contractor for this campaign following a public procurement competition advertised on Etenders and the Official Journal of the EU.

The Department's policy regarding employing external groups is to follow the relevant public procurement rules and procedures.

Fiscal Policy

Questions (154)

Thomas P. Broughan

Question:

154. Deputy Thomas P. Broughan asked the Minister for Finance the way in which the recent EU Commission decision on the fiscal rules objectives debt-to-GDP ratios will impact on his fiscal plans for 2017; and if he will make a statement on the matter. [39520/16]

Written answers

Minister for Finance

As I am not aware of any recent decisions from the EU Commission changing the debt to GDP objectives under the Stability and Growth Pact, I'm assuming the Deputy is referring to the recent draft Council recommendation on the economic policy of the euro area (COM(2016) 726 final) proposed by the European Commission.

For the euro area as a whole, the Commission suggests that in order to strengthen economic recovery, a fiscal expansion of up to 0.5% of GDP at the level of the euro area as a whole in 2017 is desirable.

I would point out that several Member States have questioned firstly, the legal basis for the Commission's recommendation and secondly, the appropriateness of such a policy. In this regard, the draft recommendation has not yet been formally adopted.

The recommendation notes the need for appropriate differentiation of fiscal effort depending on the Member State's position with regard to the requirements under the Stability and Growth Pact as set out below:

"(i) for Member States which are over-achieving their fiscal objectives, use their fiscal space to support domestic demand and quality investments, including cross-border ones, as part of the Investment Plan for Europe;

(ii) for Member States that need further fiscal adjustments under the preventive arm of the Pact, make sure to be broadly compliant with the requirements of the Stability and Growth Pact;

(iii) for Member States under the corrective arm, ensure a timely correction of their excessive deficits, including by providing fiscal buffers against unforeseen circumstances. Improve the composition of public finances by creating more room for tangible and intangible investment and ensure the effective functioning of national fiscal frameworks."

The recommendation stops short, however, of advocating specific loosening by respective Member States to support the 0.5% of euro area GDP looser fiscal stance.

Ireland falls into category (ii) and the euro area recommendation emphasises that is essential that Member States that need further fiscal adjustment under the preventive arm remain broadly compliant with the Stability and Growth Pact.

Government policy is to utilise the fiscal space available to Ireland under the rules and this is reflected in Budget 2017 and approved in the 16th November Commission Opinion.

Exchequer Returns

Questions (155)

Thomas P. Broughan

Question:

155. Deputy Thomas P. Broughan asked the Minister for Finance if he now expects the Exchequer outturn for 2016 to be in line with his October budget predictions; and if he will make a statement on the matter. [39521/16]

Written answers

Minister for Finance

Based on the recent end-November Exchequer Returns, we are currently on track to achieve our Budget 2017 forecast in respect of the Exchequer outturn for 2016. As the Deputy will be aware, an overall Exchequer deficit of c. €1.4 billion is projected for this year.

In relation to our revised tax revenue forecast for 2016 of €48.1 billion, the position at end-November was that approximately 93 per cent of our overall targeted tax receipts had been collected, which is very much in line with expectations. By way of contrast, 92 per cent of overall taxes were collected in the corresponding period last year.

It is also worth pointing out that at end-November, c. 87 per cent (€49.1 billion) of the overall projected gross voted expenditure for 2016 had been issued. By comparison, at end-November 2015, approximately 88 per cent (€48.2 billion) of the overall gross voted allocation had been issued.

Finally, it should be noted that the other components of the Exchequer are broadly in line with expectations at end-November 2016. However, it is important to point out that assuming expenditure comes in on target, a strong tax revenue performance will be required this month in order to ensure that overall Exchequer 2016 target is attained.

Revenue Commissioners

Questions (156)

Michael McGrath

Question:

156. Deputy Michael McGrath asked the Minister for Finance if the Revenue Commissioners have launched a review of tax opinions issued to multinationals; the number of tax opinions which have been provided to the European Commission's state aid directorate in recent years; the period covered by those opinions; and if he will make a statement on the matter. [39527/16]

Written answers

Minister for Finance

I am informed by Revenue that Revenue has updated its guidance to confirm that opinions issued to taxpayers, whether multinational companies or other taxpayers, will remain valid for a maximum period of five years. If a taxpayer wishes for a confirmation to continue after that time, an application for a renewal or extension must be made. It has always been the case that an opinion will only remain valid for so long as the facts and circumstances on which it is based continue to exist and the relevant legislation and practice remains in place.

Revenue has confirmed that it has begun reviewing a number of opinions that were provided more than five years ago.

In response to a request for information from the European Commission, in the context of its State Aid enquiries into ruling practices in different Member States, Ireland provided the Commission with details of opinions provided to over 300 companies, including all opinions issued in the years 2010, 2011 and 2012 on a range of issues.

Banking Sector Data

Questions (157)

Michael McGrath

Question:

157. Deputy Michael McGrath asked the Minister for Finance the number and value of business loans that are now owned by unregulated non-bank lenders; and if he will make a statement on the matter. [39529/16]

Written answers

Minister for Finance

I have been informed by the Central Bank that it does not publish data on this basis. However, the SME Credit Demand Survey, conducted on behalf of the Department, monitors the credit requirements of SMEs. The latest published survey indicates that demand for non-bank finance for SMEs is considerably lower than bank finance. For the period October 2015 to March 2016, the survey indicates that seven percent of SMEs sought non-bank finance, this represented a reduction of three percentage points on the previous period.

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 and sectoral basis in order to ensure that sufficient access to finance is available to facilitate participants in the SME sector to reach their full potential in terms of growth and employment generation. In this context, the Action Plan for Jobs 2016 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.

Mortgage Repayments

Questions (158)

Michael McGrath

Question:

158. Deputy Michael McGrath asked the Minister for Finance the maximum age of the borrower that the mortgage repayment period may be extended to in relation to the restructuring of a residential mortgage between a borrower and a lender; the number and value of such mortgage restructurings in which the repayment period has been extended to at least 70 years of age; and if he will make a statement on the matter. [39530/16]

Written answers

Minister for Finance

I am informed by the Central Bank that their internal guidelines on "Sustainable Mortgage Arrears Solutions" specify that an age limit above 70 years can apply to mortgage restructure arrangements where there is appropriate evidence to support it. With regard to the sustainability of solutions to address mortgage arrears, the guidelines obligate the lender, in circumstances where a borrower subject to a compulsory retirement age is seeking a term extension beyond that term, to conduct an assessment with a view to providing evidence to demonstrate that the borrower can service the revised loan repayments to maturity on an affordable basis. An overall ceiling of 70 years of age will apply for the Central Bank to consider a term extension sustainable unless such evidence of affordability for loan repayments to maturity is available.

The Deputy will be aware that the Central Bank publishes quarterly bulletins on Residential Mortgage Arrears and Repossessions Statistics which provides the number and value of accounts categorised as restructured, including information on term extensions. The latest bulletin was released on 12th December. The Central Bank does not, however, publish restructuring information broken down by age characteristics. It is not possible, therefore, to provide the numerical breakdown of mortgage restructurings for mortgages that have been extended to at least 70 years sought by the Deputy.

Finally, it is worth noting that Mortgage Arrears and Repossessions data released by the Central Bank for quarter 3-2016 provided further evidence that progress is being made in addressing mortgage arrears, with the number of private dwelling home, PDH, mortgage accounts in arrears continuing to fall for the 13th consecutive quarter. In addition, over 121,000 PDH mortgage accounts were classified as restructured, of which 88% were deemed to be meeting the terms of their restructure arrangement. This shows that where a borrower actively engages with their lender with a view to agreeing a sustainable arrangement to address their mortgage arrears, it is more likely that an equitable arrangement will be found and that borrower will be able to remain in their family home.

Central Bank of Ireland Supervision

Questions (159)

Michael McGrath

Question:

159. Deputy Michael McGrath asked the Minister for Finance the number and value of car finance arrangements known as personal contract plans entered into for each year since 2012; the role of the Central Bank in terms of the regulation of these financial products; and if he will make a statement on the matter. [39531/16]

Written answers

Minister for Finance

Personal Contract Plans are in effect a type of hire-purchase agreement and my Department does not collate statistics on the number and value of such plans that are entered into.

The Consumer Credit Act, 1995, applies to the provision of hire-purchase agreements. Both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the regulation of hire-purchase agreements.

While hire-purchase providers are not required to be authorised by the Central Bank, they are subject to a number of legislative and regulatory requirements supervised by the Central Bank and listed in Schedule 2 to the Central Bank Act 1942. In addition, to the extent that an entity is a 'regulated financial service provider', the powers in the Central Bank (Supervision and Enforcement) Act 2013 and the administrative sanctions procedure will apply.

If the Central Bank has a concern in relation to the form and content of hire-purchase agreements, it can, after obtaining the consent of the Minister for Finance, make regulations in respect of the form and content of hire-purchase agreements under Section 60 of the Consumer Credit Act, 1995. Section 28 of the 1995 Act also allows the Central Bank to make regulations amending the relevant sections of the Act covering the form and/or content of advertisements. Furthermore, the Central Bank has a power under the Consumer Credit Act, 1995, to apply to the courts to require a person to cease breaching the CCA.

Any intermediary who is arranging credit for a consumer is acting as a credit intermediary and an intermediary arranging such credit must seek authorisation from the CCPC to act as a credit intermediary.

A list of authorised credit intermediaries is available on the CCPC website.

Tax Code

Questions (160)

Peter Fitzpatrick

Question:

160. Deputy Peter Fitzpatrick asked the Minister for Finance if he will consider delaying the proposed new treatment of dwelling house relief from capital acquisitions tax, CAT, to 1 November 2019 to allow those persons that have already put arrangements in place under the old system not be penalised; and if he will make a statement on the matter. [39545/16]

Written answers

Minister for Finance

The Finance Bill 2016 has been passed by Dáil Éireann and is currently being considered by the Seanad. In Section 52 of the Bill, I have provided for an amendment to section 86 of the Capital Acquisitions Tax Consolidation Act 2003, the section that provides an exemption from capital acquisitions tax on the inheritance or gift of a dwelling house in certain circumstances. I consider that this particular relief has lost focus since its introduction because of changes made to how it operates over the years. The purpose of my amendment is to realign the exemption with its original policy objective i.e. to alleviate the hardship of an inheritance tax liability for a person who inherited a house in which he or she had been living with the deceased and to ensure that the person did not have to sell the house to pay the tax liability. The changes I have proposed will have two principal effects.

Firstly, the dwelling house exemption will only be available for inheritances. With one exception, it will no longer be possible to receive a tax-free gift of a dwelling house. The exception will be where a person gifts a dwelling house to a dependent relative. For this purpose, a dependent relative is a direct relative of the donor, or of the donor's spouse or civil partner, who is permanently and totally incapacitated because of physical or mental infirmity from maintaining himself or herself or who is over the age of 65.

Secondly, the inherited dwelling house must have been the deceased person's principal private residence at the date of his or her death. This requirement will be relaxed in situations where the deceased person had to leave the house before the date of death because of ill health; for example, to live in a nursing home.

If my amendment is accepted by the Oireachtas and enacted in the Finance Bill, it will take effect from the date of enactment. There will not be any provision for transitional arrangements for those people who may have already acquired a dwelling house for another person to live in with the intention of making a gift of the house to that person when the required three-year period of occupation comes to an end. As the provision was intended to alleviate hardship it is not my intention to delay the introduction of the new arrangements to facilitate individuals who intended to make use of the previous arrangements to avoid tax.

Ministerial Correspondence

Questions (161)

John Brady

Question:

161. Deputy John Brady asked the Minister for Finance if he has used any private unsecured e-mail accounts for official business; and if he will make a statement on the matter. [39584/16]

Written answers

Minister for Finance

In response to the Deputy, I wish to advise that I do not use any private unsecured email accounts for official business.

Tax Code

Questions (162, 163, 164)

Pearse Doherty

Question:

162. Deputy Pearse Doherty asked the Minister for Finance if dividend withholding tax, DWT, is exempted under tax legislation, Revenue Commissioners guidance and the Ireland-Malta double tax treaty, in the circumstances in which the recipient of the dividend, shareholder 29.9%, is a Maltese tax resident shareholder with a 29.9% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. [39635/16]

Pearse Doherty

Question:

163. Deputy Pearse Doherty asked the Minister for Finance if DWT is exempted under tax legislation and Revenue Commissioners guidance in the circumstances in which the recipient of the dividend, shareholder 15%, is an Irish investment fund that is regulated by the Central Bank with a 15% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. [39636/16]

Pearse Doherty

Question:

164. Deputy Pearse Doherty asked the Minister for Finance if DWT is exempted under tax legislation and Revenue Commissioners guidance in the circumstances in which the recipient of the dividend, shareholder 15%, is an Irish limited company with a 15% shareholding in the Irish resident company that is quoted on the Irish Stock Exchange (details supplied); and if he will make a statement on the matter. [39637/16]

Written answers

Minister for Finance

I propose to take Questions Nos. 162 to 164, inclusive, together.

The primary purpose of Dividend Withholding Tax (DWT) is to collect tax at source from dividend payments and other distributions made by Irish resident companies to Irish resident individuals who are chargeable to income tax on such distributions (with a credit allowed for DWT deducted).

The legislation dealing with DWT, which is contained in Chapter 8A of Part 6 of the Taxes Consolidation Act 1997, provides for a number of exemptions from the requirement to operate DWT. These statutory exemptions apply where the recipient of a dividend from an Irish resident company would not be subject to Irish tax in respect of that income. In those cases, if exemptions from DWT were not available, any DWT deducted would have to be refunded. Deducting DWT in cases where there is no liability to Irish tax on the dividend income would result in an unnecessary burden for the recipient of the dividend, with no net additional yield to the Exchequer.

A dividend paid by an Irish resident company to another Irish resident company is not subject to corporation tax in the hands of the recipient company on the basis that the profits from which the dividend is paid will already have been subject to corporation tax in the hands of the paying company. Therefore, Irish tax legislation does not require DWT to be applied in respect of dividends paid by one Irish resident company to another. In circumstances where the paying company is not a '51% subsidiary' of the company in receipt of the dividend, the exemption from DWT is not automatic and must be established by means of an appropriate declaration of entitlement to exemption completed by the applicant company.

DWT also does not apply where a dividend is paid by an Irish resident company to a shareholder that is a collective investment undertaking such as an investment fund regulated by the Central Bank. In order for the exemption to apply the collective investment undertaking must make an appropriate declaration of entitlement to the exemption.

 Certain non-resident persons, who are not chargeable to tax in respect of the dividend income concerned, are also specifically exempted from DWT under the legislation. An individual shareholder who is resident in a country with which Ireland has a double tax treaty, such as Malta, and who is neither resident nor ordinarily resident in the State, is exempt from income tax, under Irish tax legislation, in respect of dividends received from an Irish resident company. Similarly, the individual would also be exempt from DWT in respect of such dividends provided he or she makes an appropriate declaration confirming entitlement to the exemption.

Tracker Mortgage Data

Questions (165)

Jim Daly

Question:

165. Deputy Jim Daly asked the Minister for Finance further to his written request to the Governor of the Central Bank on 9 July 2015 to provide him with information in respect of the number of mortgages that were switched from a tracker to a variable rate since 2008 to date, if he will now confirm this figure or provide the reason for this information not being available as per his written request; and if he will make a statement on the matter. [39726/16]

Written answers

Minister for Finance

I note that the Deputy previously raised this matter in a Topical Issues Debate in July 2015 and subsequently in Parliamentary Question 34323/15 in October 2015. The Central Bank has also written to the Deputy on this subject and the Central Bank has informed me that the position as outlined in its letter of July 2015 still stands.

However, as the Deputy is aware, the Central Bank has commenced an industry wide examination of tracker mortgage related issues covering among other things transparency of communications with and contractual rights of tracker mortgage customers. The Tracker Mortgage Examination is a key priority for the Central Bank and it continues to challenge lenders to ensure that progress is being made and fair outcomes are being achieved for customers.

The review is currently ongoing and while all lenders are currently in the process of carrying out their internal reviews it is important to note that some lenders may have their internal reviews completed sooner than others depending on the size of their mortgage books and the complexities associated with them completing the Examination.

As groups of impacted customers are identified, in the first instance the lender must stop charging the incorrect rate of interest on the customer's account and then communicate this to the customer to ensure that any further customer detriment is stopped as early as possible.

Once a full review of the customer's account is complete, following external independent third party assurance, the lender will then issue a letter to the customer explaining the nature of the error, the correct rate to apply to the customer's account and information on the next steps in the Examination, including the redress and compensation process.

The Central Bank will provide an update on progress on the Examination before the year end and it has indicated that it can provide a copy of this update to the Deputy.

Tax Code

Questions (166)

Brendan Ryan

Question:

166. Deputy Brendan Ryan asked the Minister for Finance the way in which Irish and international artists performing at major concert venues such as Croke Park, the Aviva Stadium, the 3Arena and so on are treated for tax purposes; and if he will make a statement on the matter. [39732/16]

Written answers

Minister for Finance

I am informed by Revenue that Irish resident artistes are taxable in Ireland on their worldwide income. Artistes who are not resident in the State for tax purposes have a liability to Irish tax on income arising from the exercise of their profession in the State. However, because foreign resident artistes merely have a transitory presence in the State, there are numerous practical difficulties associated with enforcing such a liability. For example, the vast majority of non-resident entertainers do not file an Irish tax return and there is therefore no effective mechanism to quantify the potential tax exposure of such entertainers on the income related to their Irish performances and to collect any tax owing. Similarly, an alternative system which would impose an obligation on paying agents to deduct tax from payments made to foreign entertainers and account for the tax to Revenue, would also present many difficulties such as the requirement to identify the paying agent, in order to enforce collection, as well as placing a costly compliance burden, both on Revenue and the non-resident artistes and paying agents. Imposing tax therefore would be administratively cumbersome relative to the potentially small prospective yield and would also undoubtedly discourage some artistes from performing in the State.

I can however advise the Deputy that in general where a concert takes place in Ireland, the artists performance fee is subject to Irish VAT. Where an international performer is engaged by a promoter, it is the responsibility of the promoter to account for the VAT due on the performance fee. This means that where the promoter is established in Ireland, the promoter is required to account for Irish VAT on the performance fee. In circumstances where the artist and promoter are both established outside the State, the promoter is required to account for VAT on the performance fee where she/he is established.

Where a premises provider allows a promoter who is not established in the State to hold a concert on their premises, the provider must report details of the event to Revenue. Failure to do so can make the premises provider jointly liable for any VAT arising. This is a safeguard provision to ensure the correct VAT is collected and paid in relation to any merchandise sold at the concert venue.

NAMA Portfolio

Questions (167)

Mick Barry

Question:

167. Deputy Mick Barry asked the Minister for Finance if he will direct NAMA to engage with the Irish Glass Bottle Housing Action Group that has been seeking a meeting regarding the potential for building significant quantities of social and affordable housing on that site, which they own; and if he will make a statement on the matter. [39744/16]

Written answers

Minister for Finance

It is important to stress that NAMA  is not a property developer and does not own the site to which the Deputy refers. Rather, NAMA's role is that of a secured lender to the property owner. As a secured lender, NAMA may provide funding to its debtors and receivers where it is shown that this will increase the overall recovery for NAMA from the security being funded. Such funding is entirely consistent with NAMA's mandate to secure maximum return to the Irish taxpayer.

NAMA was established as a commercially independent body mandated to achieve its Purposes under the NAMA Act. Chapter 2 of the NAMA Act provides for the establishment of the NAMA Board whose functions are to operate NAMA in accordance with the Act, and to oversee the commercial operation of NAMA. Under Section 14 of the NAMA Act, the Minister may issue directions concerning the achievement of the Purposes of the Act as set out in Section 2 of the Act. The Deputy will note that all previous Directions issued to NAMA have been technical in nature and did not relate to individual assets or NAMA's commercial decisions. The list of directions is available from the NAMA website: https://www.nama.ie/about-us/governance/legislation/.

The NAMA Act bars political interference for good reason. There is no role for political interference with the commercial decisions of NAMA, such as any proposed funding strategy for the site the Deputy references. From the outset, the Oireachtas worked to ensure NAMA would be independent in its decision-making to avoid a position where others, whether for political or commercial self-interest or for other reasons, would seek to influence decision-making in a way that would serve vested interests.

As such, issuing a direction to NAMA is not a measure that I take lightly. I have no reason to believe that NAMA is not operating within its mandate and progressing its objectives, as required by the NAMA Act in achieving the Purposes of the Act. Therefore, I do not propose to issue a direction, regarding the achievement of the purposes of the Act, at this time.

Perhaps more importantly for the Deputy's question, Dublin City Council is specified as the Development Agency for the purposes of the Planning Scheme under the Poolbeg West Strategic Development Zone designation in accordance with Part IX Section 166(3) of the Planning and Development Act 2000 and accordingly intends to prepare a Planning Scheme.

I am informed by Dublin City Council that as part of its initial research, Dublin City Council has undertaken a consultation process in relation to this scheme. This non-statutory phase has helped to inform the process, ensuring that all relevant considerations are taken into account in the preparation of a Draft Planning Scheme. On 5 July 2016 a newspaper notice prepared by Dublin City Council was published in the Irish Times to advertise the consultation period. It invited interested individuals and bodies to submit ideas or comments on matters relevant to the preparation of the Draft Planning Scheme. The deadline for submissions was 4 August 2016. It was also emphasised that all comments/submissions would become a matter for public record and would be taken into account  in preparing the scheme. To coincide with the consultation period, a series of public information sessions was organised in the local area during July.

The consultation sessions provided an opportunity for members of the public to discuss aspects of the SDZ with Dublin City Council staff. I understand that these sessions were well attended and those in attendance raised a broad range of issues and concerns which related not only to the area within the SDZ boundary, but also to the surrounding areas. In addition to these sessions, representatives of groups who wished to discuss the content of a submission made could arrange to meet a member of the planning team. These meetings were then held during the week of the 8th-12th of August.

The Council's SDZ planning team is now preparing a report on the consultation process and the content of all submissions received. In parallel, research work is continuing and this includes consultation with relevant statutory bodies. These research processes, along with the development parameters defined in the Government Order and Draft City Development Plan 2017-2022 will inform the early development Draft Planning Scheme through the analysis stage, to the development of a concept plan(s) for the site.

Further updates will be provided on the Dublin City Council website (http://www.dublincity.ie/main-menu-services-planning-urban-development-plans/poolbeg-west-sdz#july/august) on how this process is proceeding along with details of further public consultation. Once the Draft planning scheme is complete a statutory public display period will take place and this will last for 6 weeks during which time submissions will again be invited. I would suggest that the Irish Glass Bottle Housing Action Group actively participate in the consultation phases of this planning process.

Separately, I have consistently explained that NAMA cannot subvent the supply of social housing. Section 10 of the NAMA Act requires NAMA to act in a commercial manner to obtain the best financial return for taxpayers. In line with NAMA's obligations under Section 10, all residential projects, including any which may be envisaged for the Glass Bottle site, will be required to pass a stringent commercial viability threshold before NAMA approves funding and funding will only be made available if it is expected to increase the overall recovery for NAMA from the security being funded. NAMA is obliged to act akin to a private sector commercial entity.

With NAMA estimating that 20,000 residential units may be delivered under its Residential Funding Programme between 2016 and 2020, the corresponding Part V contribution of 2,000 social housing units should not be forgotten. As with any delivery of housing, the Part V contribution is a meaningful contribution to social housing supply. However, for the reasons outlined above, it is not appropriate to direct or dictate a particular strategy to NAMA. The Agency cannot fund the development of residential units, private or social, on anything other than commercial terms.

Tax Data

Questions (168)

Róisín Shortall

Question:

168. Deputy Róisín Shortall asked the Minister for Finance the number of persons assessed for tax on foreign social security pensions for each of the tax years 2010 to 2015; and the number of persons assessed for tax on foreign occupational pensions for each of the tax years 2010 to 2015. [39778/16]

Written answers

Minister for Finance

I am advised by Revenue that on the basis of income tax returns filed, the following table sets out those income earners that have been assessed to tax on Foreign State Pensions or Foreign Other Pension. There are other individuals that report foreign pensions but these are not assessable for Irish tax.

Due to the manner in which such returns are received by Revenue it is not possible to separately identify occupational pensions within the other foreign pensions category. The information is provided for the years 2010 to 2014, the latest year for which data are available.

Year	Foreign State Pension	Foreign Other Pension*
2014	12,177	6,440
2013	10,896	6,043
2012	9,777	5,761
2011	8,402	5,237
2010	6,191	4,233

*Includes foreign occupational pensions

Legislative Measures

Questions (169)

Róisín Shortall

Question:

169. Deputy Róisín Shortall asked the Minister for Finance if he will instruct the Revenue Commissioners to initiate immediately a wide-ranging publicity campaign concerning the enactment of section 54 of the Finance Bill 2016. [39779/16]

Written answers

Minister for Finance

As the Deputy is aware, the provision in question, Section 56 of the Bill as passed by Dáil Éireann, is not yet signed into law. Once the provision is signed into law, I am advised by Revenue that they will be undertaking an appropriate campaign as regards the provision and its implications. In the meantime I am aware that detailed information on the proposed legislative change, as well as a number of Frequently Asked Questions, are provided on the Revenue website (see www.revenue.ie/en/business/disclosure.html). I am also advised that Revenue have also engaged with relevant professional bodies through the Tax Administration Liaison Committee (TALC) to discuss the proposed legislative change and its implementation."

Central Bank of Ireland Staff

Questions (170)

Michael McGrath

Question:

170. Deputy Michael McGrath asked the Minister for Finance if there is a specific recruitment drive by the Central Bank of Ireland financial regulator in response to Brexit; his views on whether the regulatory regime here is fully prepared to deal with the additional financial services that may be moved to Ireland as a result of Brexit; and if he will make a statement on the matter. [39802/16]

Written answers

Minister for Finance

I am informed by the Central Bank that by the end of this year it will have increased staff numbers by approximately 115 (on a net basis). The Central Bank Commission has recently approved additional complement for 2017 to bring its set complement to 1,801 full-time equivalents, which will be a target net increase of 170 staff.

The 2017 expansion includes dedicated resources of an additional 28 staff to address specific Brexit-related new business needs. The Bank also plans to assess on a regular basis the need for contingency-based extra Brexit-related hiring in response to additional business volumes.

The Bank adopts a risk-based approach to supervision across all of the sectors that it regulates, articulated in its "PRISM" framework. This is a dynamic approach to supervision which means that priority areas of focus are kept under constant review with resources being deployed to meet the evolving priorities.

The Governor has previously indicated that where further resources are necessary due to an expanded universe of regulated and supervised firms, the Bank has the ability to effectively re-prioritise where it needs to meet the increased level of demand and also to increase staff numbers as necessary.

Departmental Legal Cases

Questions (171)

Peadar Tóibín

Question:

171. Deputy Peadar Tóibín asked the Minister for Finance if his Department has been involved in any court proceedings that involved non-disclosure agreements in the past five years; and if so, if the specific court ruling prevented knowledge of the court proceeding being known and knowledge of the participants to the court proceeding from being made known for each of these agreements. [39867/16]

Written answers

Minister for Finance

My Department has been involved in court proceedings that involved non disclosure agreements in the past five years but in no case has the specific court ruling prevented knowledge of the court proceedings being known or knowledge of the participants being made known.

Tax Treaties

Questions (172)

Paul Murphy

Question:

172. Deputy Paul Murphy asked the Minister for Finance his views on Ireland's tax treaties with developing countries; his further views on a Eurodad report (details supplied) which shows that Ireland's tax treaties have, on average of EU states, introduced the highest amount of reductions of developing country tax rates; his views on the impact this has on tax takes in developing countries; and if he will make a statement on the matter. [39892/16]

Written answers

Minister for Finance

Double Tax Treaties are agreements voluntarily entered into by countries to eliminate double taxation and to facilitate cross border investments. Countries typically agree in such treaties to allocate taxing rights in respect of activity carried out in one country by residents of the other country. This will be done to encourage trade and investment between the two countries. The exact allocation of taxing rights is a matter for negotiation between the Governments of the two countries concerned and a treaty will only be agreed if both countries are satisfied with the outcome.

As an OECD member country, Ireland's treaties are typically based on the OECD Model Treaty. However, in any of our treaties negotiated with developing countries, the final treaty contains a mix of OECD Model and UN Model Treaty provisions, which are considered favourable to developing countries. Both countries must be happy that a proposed treaty strikes an appropriate balance for it to be agreed.

Very positive efforts have been made by Ireland in recent years in the area of tax treaties and developing countries. The Department of Finance commissioned the IBFD to undertake a spillover analysis to look at the possible effects of the Irish tax system on Developing Economies. The Report was published on Budget Day in October 2015 and is available on the Department's website. Ireland is only the second country in the world to undertake such a spillover analysis and I have consistently called on all countries to undertake a similar analysis.

Some points of concern in relation to our treaties with Zambia and Pakistan were noted in the spillover analysis. Those treaties were two of Ireland's oldest double taxation agreements and were both already under re-negotiation when the study started. They have now been renegotiated and the new treaties were signed and ratified by Ireland in 2015.

I note the publication of the report 'Survival of the Richest' by a number of civil society organisations. The report also references a previous report by ActionAid which had included in its analysis those older tax treaties which have been replaced. It is unclear exactly which Irish tax treaties were included in the analysis in this new report and the inclusion, for example, of treaties which have been replaced would clearly distort any analysis. As the report has just been published, my Department intends to seek further information from the authors of the report providing further clarity on the analysis.

Tax Avoidance

Questions (173)

Paul Murphy

Question:

173. Deputy Paul Murphy asked the Minister for Finance his views on reported dramatic increases of so-called sweetheart deals between states and corporations to minimise tax in the EU and, in particular, in Luxembourg and Belgium (details supplied); his further views on whether such facilitation of aggressive tax planning and avoidance is negative; if he will support measures at an EU level to prevent these practices; and if he will make a statement on the matter. [39893/16]

Written answers

Minister for Finance

I reject the assertion in the report mentioned that Advanced Pricing Agreements are "sweetheart deals" with taxpayers. Ireland does not do "deals" with taxpayers. Our tax system is founded on the strict application of the law, as enacted by the Oireachtas, without exception.

Revenue do not issue unilateral Advance Pricing Agreements. The Apple case concerns two advance opinions issued by Revenue in 1991 and 2007.

Revenue has published detailed guidelines on the provision of tax opinions which are available on Revenue's website at www.Revenue.ie. While it is open to any taxpayer to seek an opinion from Revenue on the tax treatment of a particular transaction or activity, the circumstances in which a taxpayer should require an opinion from Revenue are relatively limited. This is because Revenue already publishes extensive detailed information on the application of tax legislation in various tax briefings and guidelines which are available on the Revenue website.

An opinion will be provided by Revenue where the issues are complex, information is not readily available or there is genuine uncertainty in relation to the applicable tax rules as set down in the legislation. An opinion will provide Revenue's view of the correct application of tax law to a particular transaction or situation so that the taxpayer can file a correct tax return as required under the legislation.

In no case has Revenue the authority or discretion to depart from the applicable rules as set out in tax law.

In relation to Advanced Pricing Agreements more generally, I would highlight that they are a standard feature of the international tax system. Taxpayers can seek such an agreement where they want certainty that they are correctly applying transfer pricing rules. One of the recommendations from the OECD Base Erosion and Profit Shifting (BEPS) Project was that countries should implement bilateral APA programmes to provide greater certainty in relation to the taxation of cross-border transactions. Acting on this OECD recommendation, Revenue introduced a formal bilateral Advance Pricing Agreement programme and the guidance on how the programme is operated is available on the Revenue website. As I have already mentioned, Revenue do not issue unilateral Advance Pricing Agreement so such agreements will only be issued if the tax authorities in both countries impacted by a transaction are satisfied that the correct pricing is being applied.

 At EU level, Member States have agreed a Directive to require the automatic exchange of both tax opinions or 'rulings' and Advanced Pricing Agreements between tax authorities in Member States. I was an enthusiastic supporter of this Directive. I expect to have completed the transposition of this Directive into Irish law  through a combination of Regulations and Finance Bill changes by the end of this year.

Primary Medical Certificates

Questions (174)

Paul Kehoe

Question:

174. Deputy Paul Kehoe asked the Minister for Finance further to the reply to Parliamentary Question No. 208 of 1 December 2016, if he will direct the Revenue Commissioners to locate and forward a primary medical certificate in respect of a person (details supplied) in view of the circumstances outlined; and if he will make a statement on the matter. [39977/16]

Written answers

Minister for Finance

I have no role in directing Revenue in the manner suggested by the Deputy. I am advised by Revenue that the person concerned submitted an application for tax relief under the Drivers/Passengers with Disabilities Scheme on 24th October 2016.  A Primary Medical Certificate, which is a matter for the HSE to provide, is required in support of the application and the person concerned has been advised of this on two separate occasions by Revenue.