Written Answers Nos. 142-166
142. Deputy Pearse Doherty asked the Minister for Finance the services and sectors that attract a 9% VAT rate due to the fact they are related to the tourism sector; the tax foregone to date and in the past year as a result of each service attracting the reduced rate of 9%; and if he will make a statement on the matter. [8244/17]
View answerThe 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. It applies to restaurant services, hotel and holiday accommodation; various entertainment services; the use of sporting facilities; hairdressing services; and newspapers.
Revenue estimates the cost to the exchequer of the reduced 9% VAT rate, since its introduction in 2011 to end 2016 at €2.7 billion; the cost in 2016 is estimated at €630 million. As the information furnished on VAT returns does not require identification of the yield from a particular activity or product, it is not possible to give a breakdown of each activity at the 9% rate.
143. Deputy Fergus O'Dowd asked the Minister for Finance his plans to expand the constrained assessment criteria for primary medical certificates; and if he will make a statement on the matter. [8254/17]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), an exemption from motor tax and a grant in respect of fuel, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg; or
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme is estimated to have cost of the order of €65m in 2016. This figure does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
The disability criteria for the tax concessions available under the scheme have changed over time. When the scheme was first introduced in 1968, the legislation only allowed for one medical ground. In 1989, four new medical grounds were added and in 1994, one new medical ground was added.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
144. Deputy Pearse Doherty asked the Minister for Finance if he will provide a breakdown of all costs due to consultancy and other external contracts with regard to his Department's financial services policy division, including a description in each case of the purpose of the contract in tabular form; and if he will make a statement on the matter. [8261/17]
View answerThe information requested by the Deputy is set out in the following table. This information relates to 2016. My Department publishes all such information on its website.
|
2016 |
|
|
|
Name |
Description |
Amount |
|
Price Waterhouse Coopers |
National Risk Assessment |
€73,031 |
|
Mason Hayes and Curran |
Advice regarding Subject Access Request under Data Protection Act |
€733 |
|
William Fry |
Legal Advice to the Department in relation to the Minister's investment in the banks and other commercial matters (part recoupable) |
€60,748 |
|
William Fry |
Legal Advice to the Department on capital restructuring and other related matters in relation to the State's investment in AIB (recoupable) |
€29,715 |
|
Hayes Solicitors |
Professional Fees: District Court deposition |
€3,766 |
|
Arthur Cox |
Legal Advice on restructuring of the Irish banking system, related litigation and further emerging issues (part recoupable) |
€147,475 |
|
Arthur Cox |
Legal Advice on restructuring of the Irish banking system, related litigation and further emerging issues (part recoupable) |
€43,881 |
|
Arthur Cox |
Legal Advice on restructuring of the Irish banking system, related litigation and further emerging issues (part recoupable) |
€46,356 |
|
William Fry |
Legal Advice on restructuring of the Irish banking system, further emerging issues and in relation to the State's investment in AIB (recoupable) |
€15,120 |
|
Carr Communications |
PR Consultancy in the preparation of campaign collateral in respect of mortgage arrears |
€36,605 |
|
Dr. Edward Shinnick |
Banking Sector Research |
€543 |
|
ICAN Ltd |
SME Campaign - Media Burst |
€14,315 |
|
Carr Communications |
Public Relations Consultancy in the preparation of campaign collateral in respect of mortgage arrears |
€24,354 |
|
Red C Research and Marketing |
SME Credit Demand Survey |
€58,979 |
|
Paul Martin Communications Ltd |
Mortgage Arrears Communications Campaign |
€1,427 |
|
Carr Communications |
Public Relations Consultancy in the preparation of campaign collateral in respect of mortgage arrears |
€12,177 |
145. Deputy Pearse Doherty asked the Minister for Finance the number of cherished numbers registered with the Revenue Commissioners in each of the past ten years; the cost and the revenue associated with this service; and if he will make a statement on the matter. [8271/17]
View answerI am advised by Revenue that 5,971 registration numbers were reserved in the past 10 years, yielding revenue of €2,789,175. The cost/fee for a reserved number is currently €1,000 increased from €315 on 7 October 2008. Details are set out in the following table.
|
Year |
Number Reserved (*1) |
Fee/Cost per Registration |
Revenue (*1) |
|
2007 |
3,206 |
€315 |
€1,009,890 |
|
2008 |
1,536 |
€315/€1,000 (*2) |
€550,285 |
|
2009 |
143 |
€1,000 |
€143,000 |
|
2010 |
172 |
€1,000 |
€172,000 |
|
2011 |
150 |
€1,000 |
€150,000 |
|
2012 |
70 |
€1,000 |
€70,000 |
|
2013 |
108 |
€1,000 |
€108,000 |
|
2014 |
146 |
€1,000 |
€146,000 |
|
2015 |
192 |
€1,000 |
€192,000 |
|
2016 |
248 |
€1,000 |
€248,000 |
|
Total |
5,971 |
|
€2,789,175 |
(* 1) The numbers and revenue reflected in the table are those net of cancellations
(* 2) Increased on 7 October 2008
146. Deputy Brendan Griffin asked the Minister for Finance if local property tax deduction at source will be extended to persons over 66 years of age in receipt of deserted wives benefit in view of its availability to State pension recipients; and if he will make a statement on the matter. [8278/17]
View answerI am advised by Revenue that Deserted Wives Benefit is not currently one of the schemes for which it has been agreed with Department of Social Protection that deductions at source will be made in respect of Local Property Tax. The schemes from which possible deductions can be made are being kept under review and Revenue are in ongoing discussion with the Department of Social Protection in this regard.
In cases where LPT cannot be deducted from DSP payments, there are other phased payment options available to assist property owners in spreading the liability over the course of the year. These options include monthly Direct Debits through banks and certain credit union accounts and flexible payments through four approved Payment Service Providers including An Post, Payzone, Omnivend and PayPoint. Each of these service providers applies various transaction charges that are outside of Revenue's control.
147. Deputy Pearse Doherty asked the Minister for Finance the legal basis on which on-course bookmakers are treated differently for tax purposes from high street bookmakers; if there is any impediment to implementing a similar differentiation for smaller bookmakers; and if he will make a statement on the matter. [8280/17]
View answerOn-course bookmakers are exempt from betting duty on bets accepted during and at a race meeting under section 68(1)(a) of the Finance Act 2002. However, this exemption does not apply to bets entered into by any means of telecommunications, such as by telephone or online.
The current exemption from betting duty applies to very narrowly defined category of bookmakers and bets and I am advised by Revenue that issues of interpretation and definition would arise if the exemption were to be extended to a broader category of "smaller bookmakers". A broader exemption could also give rise to State Aid issues if it did not also apply to remote bookmakers and remote betting intermediaries.
I have previously given a commitment during the passage of the Finance Act 2016 to review the operation of the betting tax regime as part of the 2017 Tax Strategy Group process. This remains my intention.
148. Deputy Fiona O'Loughlin asked the Minister for Finance the number of vacant homes State-backed banks have in their possession as of 14 February 2017 by county; and if he will make a statement on the matter. [8290/17]
View answer149. Deputy Fiona O'Loughlin asked the Minister for Finance the number of vacant homes State-backed banks have given or sold to the Housing Agency or any other State body in each of the past six months; and if he will make a statement on the matter. [8291/17]
View answerI propose to take Questions Nos. 148 and 149 together.
I am firmly of the view that the Irish banking system has an important role to play in the normalisation of the Irish housing sector through the speedy return of properties in their possession to the general market. I am also conscious that where a bank comes into possession of a property the institution has a fiduciary responsibility to dispose of the property in a manner that satisfies its independent, commercial mandate. However I welcome the fact that this is now also happening through interaction with the Housing Agency, local authorities or other means.
As the Deputy is aware, the Minister for Housing, Planning, Community and Local Government last summer launched Rebuilding Ireland, the Action Plan for Housing and Homelessness. The Action Plan represents a whole of government response to the issues in the housing market with actionable measures across a wide range of areas, designed to stimulate housing supply and remove many of the barriers to a normally functioning market.
While the Department does not have the information requested by the Deputy, I recently received the following responses to this question from the three banks in which the State has a shareholding:
AIB
All disclosures in relation to AIB's residential mortgages properties in possession can be found on page 53 of AIB's Half-Yearly Financial Report 2016. It is the bank's policy to sell all assets on a vacant possession basis. AIB has engaged directly with the Housing Agency to provide a list of more than 500 properties for consideration. As at end of December the Housing Agency has expressed an interest in over 200 of these properties with 175 of these sale agreed. AIB continues to work directly with the Housing Agency to ensure all suitable properties are made available for consideration.
PTSB
Permanent TSB have informed me that all disclosures in relation to PTSB's residential mortgages and related properties in possession can be found on page 88 of PTSB's Half-Yearly Financial Report 2016. It is PTSB's policy to sell all assets on a vacant possession basis. The bank has also informed me that the actual number of vacant properties in Permanent TSB possession at 31 December 2016 was 437 and within the last five months, the bank has completed one repossession sale to a local authority and one mortgage to rent sale to a housing body. Separately PTSB has been engaging directly with the Housing Agency since 2015.
Bank of Ireland
According to Bank of Ireland, all regulatory required disclosures for Bank of Ireland, including those related to property, can be found in their annual report.
150. Deputy Tom Neville asked the Minister for Finance if he will address an issue in respect of a person (details supplied); and if he will make a statement on the matter. [8295/17]
View answerI am advised by Revenue that according to their records the person concerned did not pay tax or USC in the years in question. The person concerned has been advised directly.
151. Deputy Pearse Doherty asked the Minister for Finance the estimated savings that would accrue from moving the entire cost of regulation of the financial sector onto the industry, as opposed to the current 50%; and his plans in this regard. [8296/17]
View answerIn July 2015, my Department and the Central Bank published a joint public consultation paper on a proposed move from the current 50 per cent funding model for financial regulation to a full funding model.
Following that consultation, I approved a phased move towards 100 per cent industry funding of the cost of financial regulation, commencing in 2017 with a move from 50 to 65 per cent of regulation costs being borne by industry, subject to parameters on the Central Bank's overall costs of regulation being implemented. The rollout of the phased increase takes into account the unique characteristics of each sector in the industry.
That part of the overall cost of regulating the industry that is not recouped from industry is funded by Central Bank subvention. The subvention in 2016 was of the order of €72 million which would represent the savings that would accrue from moving the entire cost of regulation of the financial sector onto industry.
152. Deputy Seán Barrett asked the Minister for Finance if he will consider introducing a tax credit at the standard rate for renters to help alleviate the pressure on persons who find themselves paying a large portion of their monthly salaries on rent; and if he will make a statement on the matter. [8302/17]
View answerAs the Deputy may be aware, the previous tax relief in respect of rent paid, was abolished in Budget 2011, and it is no longer available to those that commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Accordingly, the result of reintroducing this relief would be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the pressure on tenants.
In addition, a tax credit of this nature would be of little benefit to lower-income workers, the unemployed and students, who may not receive the benefit of the relief as they may not be paying sufficient levels of income tax. The actions that the Government propose to take in order to address concerns about the cost of rental accommodation are set out in the "Rebuilding Ireland: Action Plan for Housing and Homelessness". Finally, at the time of its abolition, the rental tax relief cost the Exchequer up to €97m per annum, and it is likely that this figure would be an even higher cost were a similar scheme to be introduced. Taking these factors, among others, into consideration, I currently have no plans to introduce a tax credit in the manner in which the Deputy describes.
153. Deputy Michael McGrath asked the Minister for Finance the maximum period of time that a person can be given for a repayment schedule in which exceptional personal circumstances apply in relation to the repayment of tax relief at source, TRS, owed to the Revenue Commissioners; and if he will make a statement on the matter. [8315/17]
View answerRevenue has advised me that where there is open and honest engagement by the mortgagee in dealing with a TRS overpayment, then every effort is made to agree a viable solution that takes account of his/her personal and financial circumstances.
The Deputy should advise the person in question to immediately make contact with the TRS Helpline on lo-call 1890 263646. Once contact is made, Revenue will work with the person to agree a suitable payment arrangement.
Alternatively, if the Deputy wishes to provide the person's details to Revenue, a member of the TRS team will make direct contact with a view to agreeing a mutually satisfactory arrangement.
154. Deputy Pat Deering asked the Minister for Finance the position in relation to tax relief at source, TRS, ending in 2017; the other avenues of financial support open to persons (details supplied) who purchased their homes at the height of the property price boom and are still in negative equity; and if he will make a statement on the matter. [8334/17]
View answerThe Deputy will be aware that there is a commitment in the Programme for a Partnership Government to retain mortgage interest relief (MIR) beyond the current end date on a tapered basis. As legislation currently provides for the relief to continue to end-December 2017, it was not necessary to include legislation in Finance Bill 2016 to provide for the tapered extension of the relief. However in my Budget speech in October last I confirmed my intention to extend MIR beyond the current end date on a tapered basis to 2020 and that the details of the extension will be set out in Budget 2018.
Mortgage interest relief operates as a tax relief at source, meaning that the relief is deducted by the bank from the mortgage payment due, and the homeowner pays only the net amount due. Therefore existing recipients of the relief face a "cliff" in 2018 when their monthly mortgage payments will increase when the tax relief at source is withdrawn (all other factors being equal). The purpose of the tapered extension is to avoid a sudden significant increase in mortgage repayments for those losing the relief, but instead to withdraw the relief gradually, allowing the mortgage holder time to adjust to the change in mortgage repayments.
At present, Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Mortgage interest relief has been abolished for homes purchased since 1 January 2013.
The Deputy will also be aware that, on foot of a change I introduced in Budget 2012, first time buyers who bought at the height of the property boom between 2004 and 2008 receive a rate of mortgage interest relief of 30%. This compares favourably to the rates available to other remaining recipients of MIR which reduce on a gradual basis from 25% in years 1 and 2 of the mortgage to 15% in the 8th and subsequent years.
Single individuals and married couples / civil partners that are first-time buyers qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to ceilings of €3,000 and €6,000 respectively.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. First-time buyers who purchased between 2004 and 2008 when the property market was at its peak also receive an enhanced rate of relief. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who move in to the eighth and subsequent years of their loans. It is worth noting that the application of the ceilings already works to reduce the relief available in a gradual manner.
155. Deputy Pearse Doherty asked the Minister for Finance the total amount claimed in each of the years 2009 to 2016, inclusive, with regard to tax relief on the full cost of maintaining a person in a nursing home which may be allowed in cases in which the person has not been reimbursed in tabular form. [8335/17]
View answerIt is assumed that the Deputy is referring to the Income Tax relief available on fees paid for nursing homes. I am advised by Revenue that the following table sets out both the number of claimants and the cost to the Exchequer regarding health expenses specifically relating to nursing homes for the years 2009 to 2014, the latest year for which data are available.
|
Year |
Numbers |
Cost €M |
|
2014 |
6,200 |
29.1 |
|
2013 |
5,800 |
25.2 |
|
2012 |
5,500 |
25.2 |
|
2011 |
5,000 |
23.1 |
|
2010 |
5,100 |
21.0 |
|
2009 |
6,700 |
23.1 |
156. Deputy Pearse Doherty asked the Minister for Finance the total amount claimed, number of claimants and associated job creation in 2015 and 2016 with regard to tax relief through the employment investment incentive in nursing homes in tabular form. [8336/17]
View answer157. Deputy Pearse Doherty asked the Minister for Finance the total amount claimed, number of claimants and associated job creation in each of the years 2012 to 2015, inclusive, regarding tax relief through the employment investment incentive in tabular form. [8337/17]
View answerI propose to take Questions Nos. 156 and 157 together.
From October 2015, the operation of nursing homes became eligible to qualify for the Employment Investment Incentive (EII) scheme. I am informed by the Revenue Commissioners that there are currently no such companies in receipt of EII investment for the years 2015 or 2016 based on using NACE code sector identifiers on Revenue records. While the accuracy of the NACE codes on tax records is sufficient to underpin broad sector-based analysis there may be some inaccuracies at an individual level. This should be borne in mind when considering the information provided.
Regarding Question 8337/17, I am advised by Revenue that the following table sets out the Annual cost to the Exchequer and the number of investors for the years 2012 to 2015:
|
Year |
Tax Cost €M |
Investors |
|
2012 |
4 |
352 |
|
2013 |
12.7 |
1,028 |
|
2014 |
18.8 |
1,395 |
|
2015 |
22.2 |
1,530 |
Due to the manner in which the EII Scheme operates, it is not possible to provide the number of created employments in tabular form as requested, as the terms of EII involve employments being created over a four year period. Returns outlining the employment created over a four year period have only been made to Revenue in respect of the companies who availed of EII relief in 2012. In respect of those companies, it is estimated that approximately 230 employments have been created.
158. Deputy Pearse Doherty asked the Minister for Finance the total amount and number of claimants in each of the years 2012 to 2015, inclusive, regarding tax relief on retirement for certain income of sportspersons in tabular form. [8338/17]
View answer159. Deputy Pearse Doherty asked the Minister for Finance the total amount and number of claimants in each of the years 2012 to 2015, inclusive, regarding the artist exemption on certain profits or gains earned by writers, composers, visual artists and sculptors from the sale of their work in certain circumstances in tabular form. [8339/17]
View answerI propose to take Questions Nos. 158 and 159 together.
In relation to Parliamentary Questions Nos. 158 and 159, I am advised by Revenue that a Costs of Tax Expenditures Table is available on the Revenue Statistics webpage at
http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
This table provides an annual breakdown of the cost to the Exchequer for the 'Retirement Relief for Certain Sports Persons' and 'Exemption of Certain Earnings of Writers, Composers and Artists' reliefs from the years 2004 to 2014, the latest year for which data are available. The table will be updated in due course as newer data become available.
160. Deputy Pearse Doherty asked the Minister for Finance the external consultants paid by his Department to aid in the preparation of the Central Bank consolidation Bill; the amount of moneys paid to them; and if he will make a statement on the matter. [8398/17]
View answerWork is ongoing on the preparation of a draft Central Bank consolidation Bill which is a substantial and complex piece of legislative reform.
A tender was awarded to Matheson to assist the Department in the process.
The tender was awarded for a fixed fee of €100,000, however, no monies have been paid to date.
161. Deputy Charlie McConalogue asked the Minister for Finance when a reply will issue to an interim response (details supplied); and if he will make a statement on the matter. [8436/17]
View answerI am happy to inform the Deputy that a detailed response issued on 20/02/2017 to the correspondence he refers to in his question. I trust the Deputy will be satisfied with the response.
162. Deputy Pearse Doherty asked the Minister for Finance the number of voluntary disclosures made and received to date since the Finance Act that are related to offshore tax evasion; the estimated total in penalties that would have been collected had those disclosures not happened during the window in which no penalties were imposed; and if he will make a statement on the matter. [8474/17]
View answerIn my Financial Statement to the House on 11 October 2016 I indicated that I would act to restrict the opportunity for offshore defaulters to use the voluntary disclosure regime with effect from May 2017. In line with this undertaking, section 56 of the Finance Act 2016 provides that, as and from 1 May 2017, the making of a qualifying disclosure will not be permitted where the tax liabilities involved relate to offshore matters. Those matters include accounts held, property situated, or income or gains arising or accruing in, a country or territory other than the State. Anybody who has tax liabilities relating to matters of that kind and who does not act to address them before 1 May will face the prospect of substantially higher penalties, publication in the Quarterly List of Tax Defaulters and possible prosecution.
I am advised by Revenue that 13 voluntary disclosures relating to offshore matters have been received since 11 October 2016, resulting in settlements amounting to €188,650 in tax, interest and penalties. The intention to make a voluntary disclosure has been indicated to Revenue in two other cases, and a payment of €47,000 has been made on account in one of them.
Where a disclosure is made which is not a qualifying disclosure, the level of penalty that applies is determined by reference to considerations such as the category of default and the degree of cooperation given by the taxpayer. It is not possible, therefore, to say precisely what levels of penalties would have applied in the case of the 13 voluntary disclosures mentioned above, had they not been voluntary disclosures. It is estimated, however, that, had those cases not been voluntary disclosures, and if the category of default had been deliberate behaviour and cooperation had been forthcoming, the penalties to be imposed would have been some €75,000 higher.
We are in an era of increased global financial and tax transparency, and Revenue is at the forefront of international developments for Automatic Exchange of Information. Key developments in this field are the OECD's Common Reporting Standard, the EU's Directives on Administrative Cooperation and the US Foreign Account Tax Compliance Act (FATCA) initiative. Revenue has advised me that they are considering carefully how to make the best possible use of all data sources of this kind to identify any cases of tax evasion by Irish residents using offshore accounts, structures or assets, and that any cases discovered will be rigorously pursued.
163. Deputy Pearse Doherty asked the Minister for Finance the number of persons who have availed of the rent-a-room relief in each of the past five years; the number who have applied since the increase in the threshold to €14,000; and if he will make a statement on the matter. [8485/17]
View answerI am advised by Revenue that a Costs of Tax Expenditures table is available on the Revenue Statistics webpage at
http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
This table provides an annual breakdown of the cost to the Exchequer for the 'Rent-A-Room' relief from the years 2004 to 2014, the latest year for which data are available. The table will be updated in due course as newer information becomes available.
The threshold for the rent-a-room relief was increased in Budget 2017 from €12,000 to €14,000. There are currently no statistics available in relation to either the cost or the number of claimants since the change of threshold was implemented.
Although the relief applies automatically, an individual who is required to submit an annual return of income must, nevertheless, enter the amount of exempt rental income on the return (in the 'Exempt Income' section of the form). The usual return of income is the Form 11. Revenue may also require certain individuals who are taxed under the PAYE system and who also have non-PAYE income to submit an annual return of income (Form 12).
164. Deputy Michael Harty asked the Minister for Finance if voluntary community organisations involved in the extension and maintenance of local graveyards can be exempted from VAT; and if he will make a statement on the matter. [8495/17]
View answer165. Deputy Michael Harty asked the Minister for Finance if voluntary community organisations involved in the extension and maintenance of local graveyards can be exempted from VAT, as in a case (detail supplied); and if he will make a statement on the matter. [8510/17]
View answerI propose to take Questions Nos. 164 and 165 together.
Schedule 1 of the Value-Added Tax Consolidation Act 2010 lists the activities that are exempt from VAT which includes the provision of services by a funeral undertaker but does not extend to the supply of graves. The supply of a grave in a graveyard that is more than 5 years old is also exempt from VAT, but the supply of a grave in a newly developed graveyard is liable to the reduced rate of VAT (13.5%). However, the operator of a newly developed graveyard is entitled to VAT deductibility on their development costs as well as ongoing maintenance costs during the period where VAT is applied to the supply of graves.
166. Deputy Pearse Doherty asked the Minister for Finance the steps the Revenue Commissioners have taken to identify possible customs posts on the Border; the locations that have been examined for these posts; and if he will make a statement on the matter. [8539/17]
View answer171. Deputy Gerry Adams asked the Minister for Finance if officials from the Revenue Commissioners have been engaged in examination and identification of locations for full Border checkpoints with red and green channel facilities in counties Louth, Monaghan, Cavan, Leitrim and Donegal and on the M1 motorway between Dublin and Belfast; and if he will make a statement on the matter. [8710/17]
View answerI propose to take Questions Nos. 166 and 171 together.
The Government's position in relation to the border with Northern Ireland in the context of BREXIT is very clear and has been articulated by the Taoiseach on several occasions. Continued freedom of movement, absence of a hard border, and minimal impact on business and trade are key objectives. Like all Government agencies, the Revenue Commissioners are actively engaged in examining a range of scenarios in order to support Ireland's objectives. The precise arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK after formal notification under Article 50.
