Written Answers Nos. 205-224
205. Deputy Joan Burton asked the Minister for Finance the data required of non-resident tax exiles; the number of days they are allowed stay here; the contribution via taxation and levies in the past three years and to date in 2017; and if he will make a statement on the matter. [38627/17]
View answerI am advised by the Deputy’s office that this question relates to the Domicile Levy.
Individuals who spend less than 183 days in this country in a tax year are considered non-resident for tax purposes. This also applies to individuals who spend less than 280 days here over a period of two consecutive years.
The Domicile Levy was introduced in the 2010 Finance Act and is payable on or before 31 October in the year following the valuation date on a self-assessment basis. For example, the due date in respect of 2015 was 31 October 2016. The valuation date is 31 December each year. The legislation providing for the Domicile Levy does not require an individual to confirm a place of residence on the return made to Revenue.
The Levy is charged on all Irish-domiciled individuals who meet the qualifying criteria in a tax year. The amount of the Levy, where it applies, is €200,000 per annum. For the tax years 2010 and 2011, it was a requirement that the person liable be both an Irish citizen and Irish domiciled. The requirement to be an Irish citizen was removed for the tax year 2012 and later years.
The Levy currently applies to an individual for a tax year if he or she is Irish-domiciled, has Irish property (as defined) greater than €5 million in the tax year, has worldwide income in excess of €1 million for the tax year and has an Irish income tax liability of less than €200,000 for the tax year. Irish tax residence is not a requirement for the Levy to apply.
The purpose of the Levy is to ensure that Irish-domiciled individuals who meet certain criteria make a contribution to the Exchequer, irrespective of where they are resident for tax purposes.
Where the Levy applies to an individual for a tax year, he or she is entitled to credit any Irish income tax paid for that year against the amount of the Levy.
The following table sets out the number of persons who have filed Domicile Levy returns and the amount collected for the three latest years for which information is available. The table excludes 2016 and 2017 to date because the Levy for 2016 is not due until 31 October 2017 and the Levy for 2017 is not due until 31 October 2018.
|
Levy Year |
No of Persons |
Amount Collected (€m) |
|
2013 |
20 |
€1.90 |
|
2014 |
13 |
€2.02 |
|
2015 |
13 |
€2.30 |
206. Deputy Joan Burton asked the Minister for Finance the number of spontaneous notifications sent by the Revenue Commissioners to other EU states and non-EU countries for which there is a tax treaty in place relating to tax affairs of companies based in those states for each of the years 2013 to 2016 and to 31 August 2017, by country; and if he will make a statement on the matter. [38630/17]
View answer209. Deputy Joan Burton asked the Minister for Finance the number of notifications sent by the Revenue Commissioners to other EU states and non-EU countries for which there is a tax treaty in place relating to persons letting property via a web platform (details supplied) in those states for 2015 and 2016 and to 31 August 2017, by country; and if he will make a statement on the matter. [38634/17]
View answer210. Deputy Joan Burton asked the Minister for Finance the number of notifications sent by the Revenue Commissioners to other EU states and non-EU countries for which there is a tax treaty in place relating to those trading through a web platform (details supplied) in those states for 2015 and 2016 and to 31 August 2017, by country; and if he will make a statement on the matter. [38635/17]
View answer211. Deputy Joan Burton asked the Minister for Finance the number of notifications sent by the Revenue Commissioners to other EU states under obligations arising from 2011/16/EU dealing with administrative co-operation on taxation, by the type of income involved (details supplied) for 2016 and to 31 August 2017, by country; and if he will make a statement on the matter. [38636/17]
View answerI propose to take Questions Nos. 206 and 209 to 211, inclusive, together.
I have been advised by Revenue that exchange of information carried out under the provisions of Ireland’s international agreements including double taxation treaties and the Council Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation is governed by strict confidentiality provisions and the details of any specific exchanges that have taken place in relation to individual companies or between Ireland and specific jurisdictions cannot be disclosed.
However Revenue has provided the following broad information in relation to exchange of information.
Spontaneous exchanges of information with other jurisdictions in relation to companies.
2013 - 1 exchange
2014 - 2 exchanges
2015 - 3 exchanges
2016 - 28 exchanges
2017 (to August) - 2 exchanges
Since 1 April 2016, Revenue have spontaneously exchanged opinions with jurisdictions that have committed to Action 5 of the OECD’s Base Erosion and Profit Shifting Package and with which Ireland has a legal arrangement. These opinions all relate to companies. In 2016, Revenue exchanged 24 opinions and in 2017 they exchanged 2 opinions. The figure for 2016 included older opinions exchanged under a “lookback” procedure. These are included in the figures above for 2016 and 2017.
Exchanges of data under Council Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation
Revenue has provided the following broad information i.e. by category and year, in relation to the exchange of information with other Member States under the Directive on Administrative Cooperation.
|
Category |
Number of records exchanged relating to 2014 |
Number of records exchanged relating to 2015 |
|
Directors Fees |
1,763 |
1,764 |
|
Income from Employment |
1,564 |
2,045 |
|
Immovable Properties |
21,892 |
21,932 |
|
Life Insurance |
0 |
0 |
|
Pensions |
162 |
361 |
|
Total |
25,381 |
26,102 |
Records relating to 2014 were exchanged during 2016 and records relating to 2015 were exchanged during 2017. The records relating to 2016 will be exchanged in 2018. No records relating to life insurance are exchanged as this information is not available in Revenue systems and as a result cannot be exchanged with other Member States.
Other exchange of information
In addition, Revenue exchange information on request and automatically with partner jurisdictions. Automatic exchange of information includes the exchange of financial account information with the USA (under legislation implementing the Foreign Account Tax Compliance Act (FATCA)). Exchange of financial account information under Directive 2014/107/EU (which amends Council Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation) and the OECD Common Reporting Standard is due to take place before the end of September this year.
213. Deputy Stephen S. Donnelly asked the Minister for Finance if his Department has conducted an analysis of the additional costs for businesses here, including the cost of the tariffs, administration costs and commercial costs in terms of freight delays and so on, in the event of the UK leaving the customs union; and if he will make a statement on the matter. [38656/17]
View answerThis is a question more appropriate for the Minister for Business, Enterprise and Innovation who should be able to provide details of work being carried out in her Department.
215. Deputy Stephen S. Donnelly asked the Minister for Finance if he will report on the State's bid to host the European Banking Authority; and if he will make a statement on the matter. [38661/17]
View answerDue to the decision of the United Kingdom to exit the European Union, two European Agencies currently located in London, the European Banking Authority (EBA) and the European Medicines Agency (EMA), will have to relocate.
Member States interested in hosting one or both of the Agencies were required to submit a formal offer to the European Commission and Ireland’s formal offer to host the EBA in Dublin was submitted to the Commission by the Department of Finance on 31 July 2017.
The European Council has received 8 offers from Member States to host the EBA. All offers are available on the website of the European Council. Alongside Ireland’s bid, offers to relocate the EBA to Frankfurt, Paris, Prague, Warsaw, Vienna, Brussels or Luxembourg were submitted.
The Irish offer document outlines how Dublin meets the objective criteria that have been set out by the European Council and Commission, and highlights how a relocation to Dublin would result in the least amount of disruption for both the Authority and its staff.
The document outlines that as an integral part of the European System of Financial Supervision, it is essential that the Authority can continue its critical work with minimal disturbance during the transition to a new location. The retention of specialised staff is also vital for the continuity of the EBA’s work to ensure effective and consistent prudential regulation and supervision across the European banking sector.
Ireland meets all the criteria as outlined by the European Council to host the EBA, and given the economic and strategic benefits for Ireland, the proposal includes incentives to support the relocation of the EBA and the establishment of a Relocation Group to facilitate the move to Dublin.
Ireland’s bid document also highlights suitable commercial properties in Dublin which can cater to the EBA’S requirements and timeline. These properties have been identified with the help of the IDA Property Team and are located close to or within the city centre.
The European Commission will assess all of the formal offers by 30 September 2017, and submit its assessment of them to the Secretary-General of the Council for distribution to the Member States.
Since the Government’s public declaration in hosting the EBA we have been actively promoting Ireland as the location of choice for the EBA and engaging with relevant stakeholders.
Minister of State D’Arcy and myself will continue to promote Ireland’s EBA offer in upcoming meetings and engagements with our EU counterparts and other relevant stakeholders.
Officials in my Department are maintaining contact with our Embassies and Missions abroad who are also promoting our bids among relevant contacts in EU capitals. In addition they are also engaging with their counterparts in other finance ministries to put forward Ireland's case to host the EBA.
A final decision on the new location of the Agencies will take place by a voting process on 20 November in the margins of the General Affairs Council (GAC) (Art. 50).
217. Deputy Stephen S. Donnelly asked the Minister for Finance the status of the development of sectoral response plans for Brexit; the publication date of these plans; and if he will make a statement on the matter. [38694/17]
View answer218. Deputy Stephen S. Donnelly asked the Minister for Finance the issues identified for consideration in the context of Brexit, including opportunities and their prioritisation; and if he will make a statement on the matter. [38710/17]
View answer219. Deputy Stephen S. Donnelly asked the Minister for Finance the details of issues identified for consideration in the context of Brexit, including threats and their prioritisation; and if he will make a statement on the matter. [38726/17]
View answer220. Deputy Stephen S. Donnelly asked the Minister for Finance the scenario planning that has been conducted by his Department for Brexit; and if he will make a statement on the matter. [38742/17]
View answer221. Deputy Stephen S. Donnelly asked the Minister for Finance the methodology employed in the prioritisation of responses to Brexit; and if he will make a statement on the matter. [38758/17]
View answer222. Deputy Stephen S. Donnelly asked the Minister for Finance the funds that have been requested in response to threats resulting from Brexit; and if he will make a statement on the matter. [38774/17]
View answer223. Deputy Stephen S. Donnelly asked the Minister for Finance the funds have been allocated in response to threats resulting from Brexit; and if he will make a statement on the matter. [38806/17]
View answer225. Deputy Stephen S. Donnelly asked the Minister for Finance his Department’s priorities for risk mitigation in response to Brexit; and if he will make a statement on the matter. [38838/17]
View answerI propose to take Questions Nos. 217 to 223, inclusive, and 225 together.
The comprehensive document “Ireland and the negotiations on the UK’s withdrawal from the European Union: The Government’ Approach” published on 2 May outlined in detail the structures put in place by the Government to ensure a strategic and whole-of Government response to Brexit that ensures a coordinated approach to the identification of key priority issues for the EU-UK negotiations and the wider domestic response.
Since the publication of the comprehensive document, the Government has sought to further increase its strategic oversight of Brexit through the addition of a dedicated responsibility for Brexit matters to the role of the Minister for Foreign Affairs and Trade. The Cabinet Committee structures have also been reformed and a new Cabinet Committee has been established to deal with EU Affairs including Brexit.
The Government’s National Risk Assessment 2017, which provides a systematic overview of strategic risks facing the country, was published on 29 August following a public consultation process. The National Risk Assessment acknowledges the significance of risk arising from Brexit, and that Brexit represents an overarching theme that could have far-reaching impacts on nearly all aspects of national life. It identifies areas where Brexit poses a specific risk, particularly in relation to the economy.
As set out in the comprehensive document of 2 May, the Government’s continuing work to ensure that Ireland’s interests are reflected in the EU’s approach to the ongoing EU-UK negotiations is a central dimension of Ireland’s strategic response to Brexit.
Work is also continuing across Government on Ireland’s wider response to the challenges and opportunities posed by Brexit, building on ongoing cross-Government research, analysis and consultations with stakeholders and encompassing the following themes:
- sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not least from Brexit;
- policies to make Irish enterprise more diverse and resilient, to diversify trade and investment patterns, and to strengthen competitiveness;
- prioritising policy measures and dedicating resources to protect jobs and businesses in the sectors and regions most affected by Brexit;
- realising economic opportunities arising from Brexit, and helping businesses adjust to any new logistical or trade barriers arising;
- making a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.
Policy decisions in support of these objectives also arise across a wide range of areas, including the annual budgetary process; the forthcoming National Planning Framework 2040; the new 10-year National Capital Plan; the Review of Enterprise 2025 Policy, and sectoral policies and investment decisions in areas such as agriculture, enterprise, transport, communications and energy.
Within the whole-of Government framework for Brexit, the Department of Finance has lead responsibility for the macroeconomic and financial sector issues. The Department has been assessing and preparing for the impact of Brexit since well before the UK referendum in June 2016. This included the study, published in November 2015, under the ESRI-Department of Finance research programme, entitled 'Scoping the Possible Economic Implications of Brexit on Ireland' . Following the result of the UK referendum, a Brexit Unit was established within the EU and International Division of my Department, to oversee and coordinate the work of fully understanding and preparing for the challenges and opportunities associated with Brexit.
As part of the initial response to Brexit, Budget 2017 contained a number of measures to address the challenges of Brexit, to mitigate future risks, and to support any opportunities that might arise. These included measures to support SMEs, entrepreneurship, agri-food and Irish exporters. These followed on from the Department’s detailed analysis of sectoral exposure to Brexit across the economy which was published with the Budget.
Subsequently, the Department worked with the ESRI to deepen the macroeconomic analysis and a report titled 'Modelling the Medium to Long Term Potential Macroeconomic Impact of Brexit on Ireland' was published in November 2016. In April 2017, updated macroeconomic forecasts were published by my Department, as part of the Stability Programme Update.
Department of Finance contingency work is ongoing and rightly continues to examine all possible scenarios, challenges and opportunities. This work is an important input to the whole-of-Government work being overseen through the relevant structures. In accordance with its role, the Department continues to monitor the economic impacts and carry out relevant analysis, and to frame budgetary policy advice in this new context of Brexit.
It is clear from the Department's own published research that the potential impact on the Irish economy is significant. The medium to long term economic impacts of a ‘hard Brexit’ with reversion to the WTO trade rules are set out in the November 2016 study referenced above. Looking at the effect ten years after a UK exit, a hard Brexit scenario results in the level of GDP being almost 4% below what it otherwise might have been.
As regards the prioritisation of responses to Brexit, the Summer Economic Statement sets out the Government’s approach which is to strengthen the resilience of the economy against an international backdrop of heightened uncertainty. The best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to prudently manage the public finances in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds. It is important also to recognise that the full impact of the UK's exit is only expected to materialise over time. As we cannot control the international environment, we will need to continue to improve our competitiveness, including by focussing on costs we can control, by boosting our productivity and ensuring sustainable public finances. Continued prudent management of the public finances is a critical aspect of the Government’s overall strategy to mitigate the economic challenges associated with Brexit, as outlined in the Government’ s Position paper published on 2 May and in the Summer Economic Statement.
Of course, Brexit will also provide opportunities for Ireland. There include opportunities to increase our share of financial services based inward investment. Minister of State Michael D’Arcy T.D. has responsibility for Financial Services, including the implementation of the dynamic and evolving IFS2020 Strategy. We will continue to leverage our IFS2020 Strategy to maximise opportunities arising as a result of Brexit.
The Department is working within the whole-of-Government framework for the preparation of sectoral Brexit response plans. This will ensure that that we will be in a position to counter negative economic impacts arising from Brexit, that our interests are protected in the negotiations at EU level, and also that we can seek to maximise opportunities arising, including in the financial services sector.
The Department will continue to carry out the necessary research, analysis and consultations, and to develop budgetary policy in the context of Brexit.
224. Deputy Stephen S. Donnelly asked the Minister for Finance the number of vacancies in his Department for Brexit related roles; the expected date for these roles to be filled; and if he will make a statement on the matter. [38822/17]
View answerThe Department of Finance has been assessing and preparing for the impact of Brexit since well before the referendum on 23 June 2016. Following the result of the UK referendum, work has been intensified across the whole of Government level, including in my own Department, to ensure that Ireland’s interests are protected in the negotiations at EU level and to ensure that Ireland will be in position to mitigate the negative economic impacts arising from Brexit.
In my own Department, a Brexit Unit was established in July 2016, within the EU and International Division, to oversee and coordinate this work and to act as a key liaison point with the Department of the Taoiseach, in particular. This Unit is currently at full operational capacity.
In addition, the Department of Finance staff complement in the Irish Permanent Representation to the EU in Brussels has been strengthened. The challenge which we face as a result of Brexit is mainstreamed across all divisions of my Department and this is reflected in business planning.
Brexit issues are mainstreamed into the Department’s work in all areas including economic analysis, financial services and taxation. Brexit issues are being dealt with on a cross department basis and managed through the EU Strategy Committee (at Assistant Secretary level) and a cross-divisional Working Group at Principal level. Brexit is a standing item on the Department’s weekly Executive Board agenda and is mainstreamed across all divisions, something that is reflected in business planning.
