Written Answers Nos. 97 - 108
97. Deputy Tony McLoughlin asked the Minister for Finance if tax relief is readily available for third level education; if so, the reason no tax relief is available for lower education levels; and if he will make a statement on the matter. [10559/17]
View answerSection 473A of the Taxes Consolidation Act (TCA) 1997 provides for tax relief at the standard rate of income tax (20%) in respect of qualifying fees paid by an individual for a third level education course, subject to the terms and conditions set out in that section. Qualifying fees mean tuition fees in respect of an approved course at an approved college, reduced by the amount of the "student contribution" which, in the case of a full-time course, is currently €3,000. Full details of the relief, including the terms and conditions that apply, are set out in Revenue Leaflet IT 31 which is available on the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it31.html.
In addition, Section 476 TCA 1997 provides for income tax relief for approved courses in foreign languages and information technology subject to certain conditions. Tax relief at the standard rate of income tax is available in respect of fees paid for such courses where the fees are not less than €315 and not more than €1,270. Full details of the relief, including the terms and conditions that apply, are set out in Revenue Leaflet IT 31A which is also available on the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it31a.html.
At primary and secondary levels, the State offers free education to all eligible individuals, meaning that tuition fees are not charged to individuals for these services. For this reason I am not in favour of offering additional tax reliefs in respect of individuals who opt for fee paying alternatives to the free education offered by the State.
98. Deputy Joan Burton asked the Minister for Finance to outline his plans to institute a crackdown on overseas pensions, holiday homes, funds or other sources of income held by Irish residents abroad; the requirements for compliant taxpayers and scale of penalties for non-compliant taxpayers; the number of letters that have been issued to individuals, corporations, trusts and any other entities; and if he will make a statement on the matter. [10565/17]
View answerI have been advised that as a result of greater co-operation and information sharing between tax authorities worldwide, Revenue will receive details of offshore assets and accounts held by Irish tax-residents under a range of international agreements including FATCA the Inter-Governmental Agreement to share financial account information with the United States, the OECD Common Reporting Standard, and the EU Directives on Administrative Co-operation.
The information that Revenue receives from other tax administrations will be used to tackle non-compliance with tax law. The information will be matched to Revenue's taxpayer records and cross-checked against prior returns to ensure all relevant income and assets have been declared. The information will also be used in Revenue's risk systems to highlight cases for intervention. Revenue has a suite of compliance interventions ranging from profile interviews and aspect queries, to Revenue audit and full investigation with a view to criminal prosecution, as appropriate, and will match the appropriate intervention to the risks identified.
If a taxpayer is fully compliant and has declared all relevant income and gains from domestic or offshore sources, then no action is required.
If a taxpayer is not fully compliant, then I strongly encourage them to make a disclosure under Revenue's Code of Practice for Revenue Audit and other Compliance Interventions ("the Code"). This is particularly the case for any taxpayer who has any tax compliance issues relating to offshore matters as I introduced a specific disclosure scheme for compliance issues in the Finance Act 2016.
By coming forward before 1 May 2017 and regularising their position with Revenue, taxpayers can avail of the current qualifying disclosure benefits as set out in the Code which include reduced penalties, avoiding publication in the list of tax defaulters and not being investigated by Revenue with a view to prosecution. The Deputy should also note that with effect from 1 May 2017 it will no longer be possible to obtain the benefits of a qualifying disclosure if any issues included in the disclosure relate directly or indirectly to offshore matters. Full details of the Code and the disclosure scheme, including Frequently Asked Questions, are available on the Revenue website.
Regarding the level of penalties for non-compliance, this varies depending on the circumstances of the disclosure. Broadly speaking, where a taxpayer makes a qualifying disclosure, then penalties of 10% apply. Where a qualifying disclosure is not made, then penalties ranging from 75% - 100% apply. From 1 May 2017, it will not be possible to make a qualifying disclosure where it relates to offshore matters and as a result penalties ranging from 75% - 100% will apply.
Revenue has confirmed that they have written to around 500,000 self-assessed Income Tax payers who filed an Income Tax return in 2015. While the letter acknowledges that the vast majority of tax returns are correct, its primary purpose is to inform taxpayers of how they can correct any errors or omissions that there may be in any tax returns they have filed and thereby avail of the benefits of making a disclosure in accordance with the Code.
The letters also advise taxpayers of the various other aspects of the Code which, from time to time, may be relevant to their circumstances including the opportunity to self-review their tax affairs or understanding when a technical adjustment or innocent error might apply.
Revenue has also taken the opportunity in the above-mentioned letter to explain the changes to the Code necessitated by Finance Act 2016 and to highlight the upcoming deadline for disclosing any offshore matters.
I am further advised that Revenue has not issued any letters to entities like corporations or trusts.
99. Deputy Joan Burton asked the Minister for Finance the number of persons here who are non-resident for tax purposes; the number of high net worth persons or similar identified by the Revenue Commissioners; the number of others; the amount that has been received from such persons in respect of each year since 2009 to date in 2017; and if he will make a statement on the matter. [10566/17]
View answerI am informed by Revenue that, in respect of 2015, the latest year for which there is complete figures, 22,024 individual taxpayers declared themselves to be non-resident for tax purposes on their self assessment tax return. The overall number of individuals who filed self assessed income tax returns for 2015 was 528,533.
The tax affairs of high net worth individuals, also referred to as the High Wealth Individuals (HWIs), are overseen by the HWI Tax Districts based in Revenue's Large Cases Division (LCD). The case base of the HWI Districts consists of resident individuals with net assets in the State greater than €50 million, together with their associated investment entities (e.g. trusts, off-shore funds, etc.). Family members with net assets of less than €50 million may also be included in the HWI case base. Also included are non-resident HWIs with substantial economic interests in Ireland.
LCD currently manages about 571 such individuals, together with some 697 associated investment entities.
The following table sets out the amount of tax (all taxes and duties) paid by individuals managed in the HWI Districts of LCD in each year from 2009 to 2016.
Amount of tax (all taxes and duties) paid by individuals managed in the HWI Districts of LCD in each year from 2009 to 2016
|
Year |
€ |
|
2009 |
€485,531,551 |
|
2010 |
€476,405,229 |
|
2011 |
€583,363,090 |
|
2012 |
€604,906,767 |
|
2013 |
€643,530,333 |
|
2014 |
€659,992,205 |
|
2015 |
€168,715,245 |
|
2016 |
€504,299,018 |
It should be noted that in the period between 2009 and 2014 the HWI Districts also oversaw the tax affairs of the partners in the four largest accountancy firms and the five largest law firms, who are dealt with in the South West region, and the above amounts include the tax paid by these partners in those years. It is not possible to disaggregate the tax paid by HWIs (as defined above) and the tax paid by the legal and accountancy partners in those years. In early 2015 LCD undertook a case base review of its HWIs and as a result of this review individuals who no longer met the criteria for a HWI were moved out of LCD and other individuals who now qualify as a HWI were moved into LCD. The 2016 amount includes a number of particularly large tax payments by a small number of taxpayers.
100. Deputy Kevin O'Keeffe asked the Minister for Finance to outline the obligations of a credit union in a specific matter (details supplied). [10567/17]
View answerThe Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (2016 Regulations) (which set out services exempt from additional services requirements) set out the services that a credit union may provide to its members. These include certain insurance services on an agency basis and insurance on an introduction basis.
Loan Protection and life savings insurance (including related riders) is an insurance service listed in Schedule 2 of the 2016 Regulations that credit unions may provide to their members on an agency basis (the insurer must be authorised by the Central Bank of Ireland). This type of insurance includes Death Benefit Insurance and credit unions may provide this type of insurance without seeking approval under section 48 to 51 of the Credit Union Act, 1997.
Obligations of a credit union in relation to this type of insurance would depend on the terms of the agency agreement between the credit union concerned and the insurer concerned.
102. Deputy Catherine Murphy asked the Minister for Finance to outline his views on the help-to-buy scheme in view of the fact that first-time buyers may not benefit from the scheme (details supplied); the steps he is taking to ensure the transparency and accountability of the scheme; and if he will make a statement on the matter. [10647/17]
View answerAs the Deputy will be aware, the purpose of the Help to Buy incentive is to help first-time buyers fund their first home, whether purchased from a builder or self-built. The incentive applies for the period from 19 July 2016 to 31 December 2019. The legislative provisions for the Help to Buy incentive are set out in Section 477C of the Taxes Consolidation Act 1997, as inserted by Section 9 of the Finance Act 2016.
There are three elements to the payment provisions. Firstly, in respect of a first home purchased or self-built in the period from 19 July to 31 December 2016, the HTB refund is paid directly to the purchaser or self-builder, that is to the claimants bank account. Secondly, for a first home purchased from a qualifying contractor in the period from 1 January 2017 to 31 December 2019, the Help to Buy refund is paid to the qualifying contractors bank account. Thirdly, for a self-built home where the first tranche of the mortgage is drawn in the period from 1 January 2017 to 31 December 2019, the refund is paid to the claimants qualifying loan bank account, which is taken to be an account with the mortgage institution that extended the mortgage.
In the individual case raised by the Deputy, the first-time buyer purchased a house after 1 January 2017, paid the standard 10% deposit to the builder, and subsequently became aware that the Help to Buy refund is to be paid to the builder or qualifying contractor. The first-time buyer in such an instance still gets the benefit of the scheme as their Help to Buy refund is a credit against the purchase price of the house, albeit that they are not receiving the refund directly to themselves. The legislation, in Section 477C(16)(b), of the Taxes Consolidation Act 1997 is very clear in that regard, noting that: Where the appropriate payment is made in respect of a claimant to a qualifying contractor the contractor shall treat the appropriate payment as a credit against the purchase price of the qualifying residence.
I am advised that information about how refunds were to be paid, including the fact that qualifying contractors would be paid the refund for purchases after 1 January 2017, has been included in the Revenue guidance documentation and Frequently Asked Questions on Help to Buy since shortly after I announced the scheme on Budget Day last October.
Furthermore, Revenue has briefed the Construction Industry Federation (CIF) on a number of occasions on the operational detail of the scheme. CIF members have been advised that the Help to Buy incentive is to operate on the basis of helping first-time buyers meet their deposit requirements and, specifically, that contractors should give first-time purchasers the benefit of the appropriate refund when they are finalising the sale contract and the arrangements for the payment of the deposit. I am satisfied that it has been clearly communicated that any valid refunds under the Help to Buy incentive for first home purchases made after 1 January 2017 are to be paid to qualifying contractors.
On the wider issue of assuring the probity of the scheme, in the first instance, in order to qualify to participate in the scheme, a contractor must apply to become a qualifying contractor and they have to meet certain documentary requirements as well as, amongst other things, being fully tax cleared. I am also advised by Revenue that its programme of compliance checks during 2017 and beyond will include a focus on ensuring that the mechanics of the scheme, including the refund arrangements, are operating properly and in accordance with the legislation.
If the Deputy's constituent has any concerns that the scheme is not operating properly in the case of their own particular development, and if the Deputy wishes to provide specific information to my officials, I will ask Revenue to examine the matter.
103. Deputy Mick Barry asked the Minister for Finance if motor insurance companies can decline to provide a person a quote on the basis of being unemployed or on the basis of suffering anxiety or depression; and if he will make a statement on the matter. [10666/17]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies to provide cover to all categories of drivers.
I am advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply, including the age, profession, and health of the driver, the claims record, driving experience and penalty points of the driver, the number of drivers, the type and age of car, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience.
With respect to the points raised by the Deputy, I understand that insurers do not generally decline on the basis of someone being unemployed. With regard to anxiety or depression, I understand that insurers generally quote on the basis that the proposer needs to have disclosed any medical condition requiring notification to the National Driver Licence Service (NDLS) and, assuming the proposer has done so and has been issued with a licence, insurers would generally provide a quotation.
Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. In the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820, quoting the Declined Cases Agreement.
104. Deputy Noel Grealish asked the Minister for Finance to outline his plans to amend section 772(2)(e) of the Taxes Consolidation Act 1997 regarding non-trading companies which, before being formally wound up, are in a position to retrospectively meet pension obligations to their occupational pension schemes but are not allowed to avail of exempt approval status because they are non-trading; if section 772(4)(a) provides sufficient discretion for the Revenue Commissioners in approving such cases; if he is satisfied that an employer’s delay in recognising pension liabilities should absolve it from its obligations; and if he will make a statement on the matter. [10712/17]
View answerI am advised by Revenue that Section 772 of the Taxes Consolidation Act (TCA) 1997 prescribes the conditions required for the approval of a retirement benefits scheme. Under section 772 of the TCA a retirement benefits scheme shall be approved once it is established and Revenue is satisfied that the conditions set out in subsections 2 and 3 have been complied with.
As referred to by the Deputy, one of the conditions provided under section 772(2) is the requirement that the scheme seeking the approval of Revenue be 'established in connection with some trade or undertaking carried on in the State by a person resident in the State' (section 772(2)(e) TCA).
Notwithstanding the above, section 772(4) provides Revenue with the discretion to approve a retirement benefits scheme, in the absence of one or more of the conditions specified in section 772. In particular, section 772(4) authorises Revenue to approve a scheme which:
- exceeds the limits imposed by the prescribed conditions as respects benefits for less than 40 years' service,
- allows benefits to be payable on retirement within 10 years of the specified age or on earlier incapacity,
- provides for the return in certain contingencies of employees' contributions and payment of interest (if any) on the contributions or,
- relates to a trade or undertaking carried on only partly in the State and by a person not resident in the State.
Revenue exercises its discretionary power in relation to this Section in an open and transparent manner. To this end Revenue produces a Pensions Manual which outlines the current practice in exercising its discretionary powers. This Revenue Pensions Manual is updated on a regular basis to ensure that Revenue's discretionary powers are clear and made available to all interested parties. The scenario outlined by the Deputy is not provided for in Section 772(4), nor is it provided for in Revenue's Pensions Manual, and Revenue does not consider it appropriate to their statutory discretion.
I have no plans to amend this legislation.
The duties of employers to meet pension obligations whether on winding up or otherwise are matters which are dealt with in the Pensions Acts which come under the responsibility of my colleague the Minister for Social Protection.
105. Deputy Tony McLoughlin asked the Minister for Education and Skills if financial assistance exists for persons and families to cover costs associated with learning disabilities, specifically dyslexia; if this covers assessment, specialist tuition and assistive technology; if no financial assistance exists, if some form will be provided; and if he will make a statement on the matter. [10558/17]
View answerI wish to advise the Deputy that my Department provides a range of resources for pupils with Specific Learning Disabilities (SLD), of which Dyslexia is one such SLD.
My Department’s National Educational Psychological Service (NEPS) provides an educational psychology service to all primary and post primary schools through an assigned NEPS psychologist and in some cases through the Scheme for Commissioning Psychological Assessments (SCPA), full details of which are on the Department's website.
Funding is provided for 4 Special Schools and 12 Special Classes attached to mainstream primary schools which have been sanctioned to meet the needs of children with SLD, including dyslexia.
All mainstream schools have been allocated additional teaching resources to cater for children with high incidence special educational needs, including SLD, either under the General Allocation Model at primary school level or through High Incidence and learning support allocations for post primary schools. It is a matter for individual schools to use their professional judgment to identify pupils who will receive this support and to use the resources available to the school to intervene at the appropriate level with such pupils. Schools are supported in this regard by NEPS. Schools are not required to apply directly to my Department for learning support for SLDs such as dyslexia. Schools should monitor and utilise their allocation of additional teaching support to best support the needs of identified pupils, in accordance with my Department's guidance. The teaching time afforded to each individual pupil is decided and managed by schools, taking into account each child's individual learning needs.
A new model for the allocation of teaching resources for children with special educational needs will be implemented from September 2017.
Under the new allocation model schools will be provided with a total allocation which includes a baseline allocation for the school and an allocation based on the school profile. The provision of a profiled allocation will give a fairer allocation for each school which recognises that all schools need an allocation for special needs support, but which provides a graduated allocation which takes into account the actual level of need and pupils in each school. A new Circular will be issued to schools in the coming weeks which will provide details of how the scheme will operate while details of the allocations for each school will also be provided to schools.
Schools will also receive guidance as to how they should deploy their resources to provide additional teaching support for pupils taking into account their individual learning needs.
Funding is available to schools also for the purchase of specialised equipment such as computers and/or software to assist children with special educational needs, including children with SLDs, where relevant professionals recommend the equipment as being essential for the provision of education. Schools apply to the National Council for Special Education (NCSE) through their local Special Educational Needs Organiser (SENO) for such support. SENOs make recommendations to my Department where assistive technology is required.
The NCSE operates within my Department's criteria in making recommendations for support in the form of Assistive Technology, which is set out in my Department's Circular 0010/2013. In order to qualify for equipment under the assistive technology scheme, a child must have been diagnosed with a physical or communicative disability and must also have a recommendation in a professional assessment that the equipment is essential in order to allow the child to access the curriculum. It must also be clear that the existing I.T. equipment in the school is insufficient to meet the child's needs.
Schools who wish to apply for assistive technology support for pupils with special educational needs should contact their local SENO. All schools have the names and contact details of their local SENO, parents may also contact the SENO directly to discuss the special educational needs of their child. A list of SENO contact details is available on the NCSE website www.ncse.ie.
Further supports which are provided to support pupils with Dyslexia include an information resource pack on Dyslexia which has been made available to all primary and post-primary schools as well as provision for continuing professional development for teachers with additional training needs in the area of Dyslexia through the Special Education Support Service (SESS) and reasonable accommodations in State Examinations.
My Department also provides annual funding to the Dyslexia Association of Ireland at national level which helps the organisation operate an information service for members and the public as well as assisting in meeting the costs associated with the attendance of some children from disadvantaged backgrounds at workshops and programmes organised by the association.
106. Deputy Éamon Ó Cuív asked the Minister for Education and Skills to outline the steps he has taken to ensure there will be an adequate supply of chefs available to the hospitality industry here in view of the shortage of trained chefs in the country at the moment, particularly in rural areas; the discussions he has had with the Minister for Transport, Tourism and Sport on this matter; and if he will make a statement on the matter. [10714/17]
View answerWork is progressing on the development of a new Commis Chef Apprenticeship led by the Irish Hotels Federation and the Restaurants Association of Ireland working with Kerry Education and Training Board. It is planned that this programme will commence in 2017. The Apprenticeship Council recently approved development funding for a separate proposal to develop a Chef de Partie Apprenticeship. The Council will continue to work closely with these consortia to develop their proposals into sustainable apprenticeships that can be delivered on a nationwide basis.
In relation to the overall skill needs of the hospitality sector, the Expert Group on Future Skill Needs (EGFSN) carried out a study in 2015 on the needs of the sector. The objective was to assess demand arising over the period to 2020 with the aim of ensuring that there will be the right supply of skills to help drive domestic hospitality sector business and employment growth.
Published in November 2015, the report of the study provides a set of recommendations designed to address the skills requirements of the sector over the period to 2020. A key recommendation in the report was the need to set up a National Oversight and Advisory Group comprising all the key hospitality stakeholders. Following on this recommendation, the Hospitality Skills Oversight Group was established early last year. Chaired by SOLAS for the first year, membership of the Group includes the Restaurant Association of Ireland, the Irish Hotel Federation, Irish Hospitality Institute, Licenced Vintners Association, Vintners Federation of Ireland, Fáilte Ireland, Department of Jobs, Enterprise and Innovation, Department of Education and Skills, Department of Social Protection, Higher Education Authority, Skillnets, SOLAS, ETBs, IoTs, DIT and Quality and Qualifications Ireland.
The role of the Group is to monitor progress on the implementation of the recommendations of the EGFSN and to provide a forum for on-going collaboration in addressing the skills needs of the sector and to identify and progress actions to overcome barriers on its implementation.
The Group plan to publish a report later this year. To date work has been undertaken on careers promotion via a range of fora, the launch of the Tourism Insight online programme - aimed at promoting careers in tourism and hospitality with particular reference to transition year and Youthreach participants. A Restaurant and Hospitality Skillnet has been established which aims to address key skills requirements of restaurants and catering companies to help drive the domestic hospitality sector, employment growth, talent attraction and retention. Funded through the National Training Fund by my Department, the network plans to design tailored programmes covering all aspects of the restaurant, food and beverage industry to SMEs nationally with a particular focus on career progression for those at lower skilled levels to help fill anticipated job openings and increase retention levels within the sector and is well placed to address key recommendations of the EGFSN 2015 Report. Audits of both higher and further education facilities and courses are underway.
In 2015 a new Career Traineeship initiative was initiated by SOLAS in collaboration with the ETBs and enterprise to develop a more effective model of work-based learning, primarily at NFQ levels 4 and 5, incorporating best national and international research and practice. Networks have been created to facilitate partnerships between ETBs and employers to identify training needs, design training programmes, recruit learners and deliver training on and off the job. The Career Traineeship model of work-based learning is currently being piloted with the hospitality and engineering sectors, with the involvement of seven ETBs.
Last year, over 8,000 higher education students undertook courses in the sector and provision was planned for over 6,700 beneficiaries within the further education and training sector.
Going forward the work of the EGFSN and the Skills and Labour Market Research Unit in SOLAS, particularly in the provision of forecasts for existing and future skills needs across various sectors including hospitality, will continue to support and inform the work of my Department on the overall implementation of the National Skills Strategy 2025 and the Action Plan for Education 2016-2019 to ensure we plan and provide for Ireland's skills requirements across all sectors.
107. Deputy Fiona O'Loughlin asked the Minister for Education and Skills to outline the criteria for students in the asylum protection system to gain access to the student support scheme to ensure that they can continue their education; and if he will make a statement on the matter. [10512/17]
View answer108. Deputy Fiona O'Loughlin asked the Minister for Education and Skills to set down the number of persons in the asylum protection system who have been granted access to the student support scheme to ensure that they can continue their education; and if he will make a statement on the matter. [10513/17]
View answerI propose to take Questions Nos. 107 and 108 together.
The statutory based Student Grant Scheme is not available to persons in the asylum protection system. However, an administratively based Pilot Support Scheme was introduced in 2015 for persons who are in the protection system (other than those at the deportation order stage) and who are either asylum applicants, subsidiary protection applicants or leave to remain applicants.
The pilot scheme provides similar supports to those available under the statutory based scheme. A review of the pilot support scheme will be undertaken in 2017.
