Tuesday, 26 Sep 2017

Written Answers Nos 62-82

Company Data

Questions (62, 63)

Michael Fitzmaurice

Question:

62. Deputy Michael Fitzmaurice asked the Taoiseach the number of companies that are domiciled here but derive all profits from outside Ireland. [40612/17]

Michael Fitzmaurice

Question:

63. Deputy Michael Fitzmaurice asked the Taoiseach the number of companies that are domiciled here but repatriate profits from overseas. [40613/17]

Written answers

Minister of State at the Department of the Taoiseach

I propose to take Questions Nos. 62 and 63 together.

The Central Statistics Office publishes information on the repatriation of profits in and out of Ireland as part of its Balance of Payments statistics. The inward profits repatriated to all Irish-domiciled firms in 2016 was €12,184m. A notable subgroup are firms that have moved their global headquarters to Ireland, mostly in the years 2008 to 2016. These firms are often termed redomiciled PLCs or corporate inversions, where their income is almost entirely received from overseas subsidiaries. These companies repatriated €5,786m in 2016 to their Irish domiciled headquarters. The Central Statistics Office does not compile or publish information on the number of companies with overseas investment or earnings.

The following table shows the corresponding figures for the years 2012 to 2016.

Extract from the Irish Balance of Payments Statistics (€m)

-	2012	2013	2014	2015	2016
Reinvested earnings inflows (profits) of Irish-domiciled firms	10,915	11,583	14,199	10,562	12,184
Net Income of Redomiciled PLCs	7,102	6,477	6,855	4,666	5,786

Taoiseach's Meetings and Engagements

Questions (64)

Micheál Martin

Question:

64. Deputy Micheál Martin asked the Taoiseach if he will report on the wide range of national and international issues he discussed with church leaders at the meeting with them and other ministers. [40712/17]

Written answers

The Taoiseach

On 31 August last, I held a formal meeting under the structured dialogue process with representatives of the Catholic Church, led by Archbishop Eamon Martin. I was accompanied at the meeting by the Tánaiste and Minister for Business, Enterprise and Innovation and by the Ministers for Education and Skills, Health, Transport, Tourism and Sport and Employment Affairs and Social Protection.

The agenda for the meeting included the World Meeting of Families 2018 and possible visit by Pope Francis; education issues; the Eighth Amendment to the Constitution; Northern Ireland and International issues (overseas development aid); and justice and social issues. A wide ranging discussion took place on these matters and I was very pleased with the engagement that took place and found the exchange to be valuable.

This was the first in a series of meetings that I will be holding with dialogue partners.

NewERA Administration

Questions (65)

Richard Boyd Barrett

Question:

65. Deputy Richard Boyd Barrett asked the Minister for Finance the amount NewERA has transferred to Coillte and Bord na Móna in respect of developing alternative energy and other new industry; the criteria which has been applied to a cost-benefit analysis of value for the use of this public funding; the amount of NewEra funding which has come from the National Pension Reserve Fund; the other sources of funding it has availed of; the person or body in charge of NewEra; the person or body overseeing its operations, that is, Minister and Department; and if he will make a statement on the matter. [40376/17]

Written answers

Minister for Finance

The NTMA, which is a body under my aegis, acts as NewERA (New Economy and Recovery Authority) in providing centralised financial and commercial advisory services and as a dedicated source of corporate finance advice to Government Ministers with respect to the following designated bodies: ESB, Ervia, Irish Water, EirGrid, Bord na Móna, and Coillte.

On request by a Government Minister, NewERA also provides financial and commercial advisory services in relation to other State bodies or assets.

In addition, NewERA works with relevant stakeholders to develop proposals for investment in energy, telecommunications, water and forestry to support economic activity and employment.  Ms. Eileen Fitzpatrick is the NTMA Director in charge of NewERA.

NewERA does not provide funding to the State Bodies or assets that it engages with such as Coillte or Bord na Mona.

More information on NewERA’s activities is available in the NewERA section of the NTMA’s latest Annual Report at the following link: 

http://www.ntma.ie/annualreport2016/index.html

I can also inform the Deputy that neither the old National Pensions Reserve Fund (NPRF) nor its successor the Ireland Strategic Investment Fund (ISIF) have provided funding to either Coillte or Bord na Móna.

Brexit Issues

Questions (66)

Bernard Durkan

Question:

66. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he can take steps to minimise the impact of Brexit on the economy; and if he will make a statement on the matter. [40745/17]

Written answers

Minister for Finance

The Government’s Brexit priorities are clear: minimising the impact on trade and the economy, protecting the Northern Ireland Peace Process, maintaining the Common Travel Area and influencing the future of the European Union.

In relation to the economy, the Government’s paper ‘Ireland and the negotiations on the UK’s withdrawal from the European Union’, published in May 2017, sets out the twin goals of securing the closest possible economic and trading relationship between the EU and UK post Brexit and preparing the economy to cope with economic turbulence of coming years and the structural shift of new realities, including Brexit.  It also sets out the five-pronged approach which is being taken to mitigate the economic risks of Brexit: This involves, at a macro-economic level, the continued prudent management of our economy and the public finances to enable us to meet future challenges in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds; effective negotiation, as part of the EU 27, with the objective of reaching an agreement that sees the closest possible relationship between the EU and the UK while also ensuring a strong and well-functioning EU; continued support for business and the economy through Government measures, programmes and strategies; the exploration of existing and possible future EU measures that could potentially assist Ireland in mitigating the effects of the UK’s withdrawal; and exploiting fully any opportunities that arise as a result of Brexit.  

The Department of Finance has been to the fore in producing and funding a number of important macroeconomic and sectoral studies on Brexit, both before and since the UK's referendum decision in June of last year.  These studies are an important evidence base for the development of the overall Government approach to Brexit.  On Budget day last October, the Department of Finance published a paper that examined exposure of different sectors to the UK. Following on this study, Budget 2017 included a range of ‘Getting Ireland Brexit ready’ measures targeted at the most exposed sectors.  These include measures to support SMEs, entrepreneurship, agrifood and Irish exporters.

More recently, my Department has recently published a wider in-depth analysis of the possible sectoral impacts that Brexit may have on Ireland's trade relationship with the UK by comparison with the possible impacts in other EU Member States.

As regards the overall macroeconomic strategy, 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 focusing on costs we can control, by boosting our productivity and ensuring sustainable public finances.  This approach is confirmed in the Summer Economic Statement which reaffirmed that improving the resilience of the economy against the backdrop of heightened uncertainty is the key focus of our macroeconomic strategy. Budget 2018 will continue to support prudent budgetary policy to help prepare for the economic risks that we face, including from Brexit.

In terms of opportunities, Brexit will provide opportunities for Ireland to increase its share of financial services based inward investment. Minister of State at the Department of Finance, Michael D’Arcy T.D. has responsibility for Financial Services, including the implementation of the dynamic and evolving IFS2020 Strategy for driving growth in the financial services sector. The Government has also made an attractive bid for the European Banking Authority when it is relocated from the UK and will continue to leverage our IFS2020 Strategy to maximise opportunities arising as a result of Brexit.

The Department of Finance will continue to carry out the necessary research, analysis and consultations, and to develop budgetary policy in the context of Brexit.

Real Estate Investment Trusts

Questions (67, 72)

Pearse Doherty

Question:

67. Deputy Pearse Doherty asked the Minister for Finance the net total dividend withholding tax collected in respect of REIT dividends paid to non-resident investors and other relevant parties in each of the years 2013 to 2016, and to date in 2017, in tabular form; and if he will make a statement on the matter. [40140/17]

Joan Burton

Question:

72. Deputy Joan Burton asked the Minister for Finance the amount paid out by REITs here in each year since their introduction; the amount of tax collected on those payments; his plans to review the operation of REITs; and if he will make a statement on the matter. [40259/17]

Written answers

Minister for Finance

I propose to take Questions Nos. 67 and 72 together.

The Finance Act 2013 inserted Part 25A into the Taxes Consolidation Act 1997 which introduced the tax regime for the operation of Real Estate Investment Trusts (REIT) in Ireland. 

Part 25A provides, inter alia, that a REIT must distribute to its shareholders at least 85% of property income by way of property income dividends. In order to ensure that tax from foreign REIT investors is retained in the State, the REIT tax legislation specifically provides that Dividend Withholding Tax (DWT) would apply to REIT dividends at the standard rate of income tax of 20%.

Non-resident investors who might otherwise be exempt from DWT do not have an exemption in respect of dividends paid by a REIT. However, non-resident REIT investors from countries with which Ireland has a tax treaty may be able to reclaim some part of this DWT if the relevant tax treaty allows for this.  The taxation of dividends varies from treaty to treaty, but commonly a source state would retain the right to a withholding tax of up 15% on dividends paid from that state.

I am advised by Revenue that dividends amounting to €23.9m in 2015, €54.7m in 2016 and €35.6m in 2017 (to August) were paid out by REITs. No dividends were paid out prior to 2015. DWT amounting to €4.1m in 2015, €8.5m in 2016 and €5.3m in 2017 (to August) was collected in respect of dividends paid by REITs. These figures include DWT relating to both resident and non-resident investors. Due to the way in which investor details are returned it is not possible to separately identify DWT collected from non-resident investors only. However, DWT amounting to €68,000 in 2015, €235,600 in 2016 and €563,700 in 2017 (to August) was refunded to non-resident investors in respect of REIT dividends.

Irish Real Estate Fund

Questions (68)

Pearse Doherty

Question:

68. Deputy Pearse Doherty asked the Minister for Finance the net total dividend withholding tax paid by IREF funds in respect of dividends paid to non-resident investors and other relevant parties in 2016 and 2017 in tabular form. [40141/17]

Written answers

Minister for Finance

The Irish Real Estate Fund regime, which was introduced by section 23 Finance Act 2016, took effect from 1 January 2017. Therefore, there were no distributions by IREFs in 2016.

IREFs must operate a 20% IREF withholding tax on the happening of certain taxable events (such as a distribution of profits or a redemption of units). IREF withholding tax is a separate tax to dividend withholding tax and the normal exemptions which apply to dividend withholding tax do not apply to IREF withholding tax. If a non-resident who owns less than 10% of the units in an IREF is resident in a country with which we have a double tax agreement, then, depending on the terms of the agreement, they may be entitled to claim a refund of some or all of the IREF withholding tax deducted. Non-resident investors who hold more than 10% of the units in an IREF are not entitled to claim a refund of IREF withholding tax under a double tax agreement.

Any withholding tax deducted in respect of distributions made during 2017 must be returned to Revenue by the end of July 2018. Therefore, I am advised by Revenue that they are not yet in a position to identify the amount of withholding tax relating to IREF taxable events that have happened so far in 2017.

Electric Vehicles

Questions (69)

Catherine Martin

Question:

69. Deputy Catherine Martin asked the Minister for Finance if there are taxation incentives to encourage companies to get their employees to use electric vehicles as company cars as opposed to petrol or diesel vehicles; if not, if incentives are planned; and if he will make a statement on the matter. [40213/17]

Written answers

Minister for Finance

There are a number of tax incentives in place to encourage the adoption of electric vehicles which are an environmentally cleaner mode of transport.  A relief from Vehicle Registration Tax is provided up to a maximum €5,000 and the annual rate of motor tax is the lowest rate chargeable at €120.  Further to this electric vehicles qualify for the Accelerated Capital Allowance (ACA) Scheme which is a tax incentive for companies paying corporation tax with the aim of encouraging investment in energy efficient equipment.  The ACA Scheme allows for the write off of 100% of the purchase price of energy efficient equipment, including electric vehicles, in the year of purchase as opposed to the normal 8 year capital write-down. 

It is the long-standing practice of Ministers for Finance not to comment on what may be contained in upcoming budgets.

Fire Service Staff

Questions (70)

Fergus O'Dowd

Question:

70. Deputy Fergus O'Dowd asked the Minister for Finance if he will address a person's (details supplied) concerns regarding retained fire fighters status; and if he will make a statement on the matter. [40250/17]

Written answers

Minister for Finance

In light of the detail provided by the Deputy, Revenue will contact the person directly to discuss the matter further. 

Living City Initiative

Questions (71)

Joan Burton

Question:

71. Deputy Joan Burton asked the Minister for Finance the estimated cost of extending the living city initiative to Drogheda and Dundalk; and if he will make a statement on the matter. [40258/17]

Written answers

Minister for Finance

I am advised by Revenue that there are no data available in respect of potential qualifying premises, or the likely additional uptake, to estimate the cost of extending the Living City Initiative scheme to Drogheda and Dundalk.

It should be noted that the Special Regeneration Areas for the Living City Initiative were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas that should be included within the remit of the Living City Initiative which were required to be taken into account by the relevant city councils when putting forward the proposed Special Regeneration Areas for each city. In particular, Special Regeneration Areas should be inner city areas which largely comprise dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use.

Officials in my Department reviewed the Living City Initiative in 2016 in consultation with the relevant councils and the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. On foot of that review, a number of changes were brought forward to the scheme in Budget 2017 in order to make the initiative more attractive and effective. The principal change extended the residential element of the scheme to landlords, who are now able to claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property, which was built prior to 1915, where such property is to be used for residential purposes. In addition, the requirement for a pre-1915 building to have been originally constructed for use as a dwelling in order to qualify for the residential element of the Initiative was removed. The floor area restriction for owner-occupiers has also been removed, while the minimum amount of capital expenditure required for eligibility for relief, under all elements of the scheme, was also amended and must now only exceed €5,000. The possibility of extending the special regeneration areas was considered, but it was decided that such a change would dilute the incentive's potential impact on the originally targeted areas and that it would be better to get it working effectively before considering any further extension of the areas eligible.

The review was included in the Report on Tax Expenditures (October 2016) that was published on Budget Day.

Question No. 72 answered with Question No. 67.

Insurance Industry Regulation

Questions (73)

Thomas P. Broughan

Question:

73. Deputy Thomas P. Broughan asked the Minister for Finance if further measures are being taken by the EU Commission and his Department to address the alleged cartel-like activity and price gouging in the insurance market; and if he will make a statement on the matter. [40285/17]

Written answers

Minister for Finance

The European Commission on 04 July 2017 carried out an unannounced inspection at the premises of companies active in motor insurance in the State. The basis for this inspection was a concern by the Commission that the companies involved may have engaged in anti-competitive practices in breach of EU antitrust rules that prohibit cartels and restrictive business practices and/or abuse of a dominant market position.

As Minister for Finance, I am not in a position to make any comment in relation to any further measures being taken by the European Commission. Any inspection or investigation being undertaken by the Commission is done independently of this Department and we have no insight into the development of any such exercise.

However, the Department has taken an active role in tackling insurance costs. The issue of rising insurance costs was the main impetus for the establishment of the Cost of Insurance Working Group in July 2016. Its report titled the Report on the Cost of Motor Insurance was published in January 2017.  The Report makes 33 recommendations with 71 associated actions to be carried out in agreed time-frames, which are set out in an Action Plan. 

Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress.  The second such update was published on the Department's website on 21 July 2017 and shows the progress to date on the overall implementation of the recommendations, with a particular focus on the 17 action points which were due for completion in the second quarter of 2017. All 17 of these action points were completed by this deadline.  The third quarterly update will issue in the coming weeks.

In addition, in January, the Cost of Insurance Working Group embarked on its second phase to examine issues around the cost of insurance for businesses, specifically employer and public liability insurance.  It is hoped that a final report will be published during the autumn/winter term. 

I believe that the implementation of these reports will make a difference to the pricing of insurance premiums over the next 12-18 months.  It is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, will achieve the objective of delivering fairer premiums for consumers.  I also believe that the Setanta judgment, by finding that MIBI is not liable to meet third party claims, removes a major uncertainty from industry, which I would expect to be reflected in motor insurance pricing in the short to medium term.

It should be noted that the most recent CSO data (for August) indicates that private motor insurance premiums have reduced by 14% year-on-year.  While the CSO statistics indicate a greater degree of stability on an overall basis, these figures represent a broad average and therefore there are many people who may still be seeing increases.  I am hopeful however that greater stability in pricing will continue to occur, and that premiums will continue to fall from the very high level of last year.

Revenue Commissioners Resources

Questions (74)

Michael McGrath

Question:

74. Deputy Michael McGrath asked the Minister for Finance the definition of an income tax case, for example, if it includes all persons in receipt of taxable income with regard to the Revenue Commissioners budget 2018 ready reckoner; and if he will make a statement on the matter. [40298/17]

Written answers

Minister for Finance

I am informed by Revenue that the relevant Income Tax and Universal Social Charge (USC) figures in the pre-budget 2018 Ready Reckoner include all cases registered with Revenue for self-assessment Income Tax or as PAYE employees (employees for this purpose includes those in receipt of occupational pensions).

The income data published in the Ready Reckoner relates to gross income. The definition generally used for gross income is that it is considered the income before adjustments are made in respect of capital allowances, losses, allowable expenses, retirement annuities etc., but after deduction of superannuation contributions by employees. It also includes certain income belonging to individuals whose total income is below the exemption limits. Certain social welfare incomes will also be included in some cases. Therefore the gross income data presented in the Ready Reckoner includes both tax cases with taxable income and tax cases that are exempt from tax and/or USC.

The data presented in the Ready Reckoner is presented in terms of tax units. A tax unit may consist of a singly assessed individual; married persons / civil partners who have elected or who have been deemed to have elected for joint assessment that would then be treated as one tax unit; or married persons/civil partners who elect to be separately assessed.

The publication of the Ready Reckoner, as well as the increased information contained therein in recent years across the full range of taxes, represents an important contribution by Revenue to using the data available to them to inform policy makers and support research work. I am advised by Revenue that they are seeking to ensure the Ready Reckoner is as relevant as possible to the demands of users and are open to feedback from the Deputy or from any other interested parties. 

Mortgage Interest Rates

Questions (75)

Michael McGrath

Question:

75. Deputy Michael McGrath asked the Minister for Finance the interest rate banks (details supplied) apply to the warehouse portion of a split mortgage; and if he will make a statement on the matter. [40299/17]

Written answers

Minister for Finance

The Central Bank is aware of various information about the operations of regulated firms as their supervisor. The Central Bank is subject to strict confidentiality requirements under section 33AK of the Central Bank Act 1942, which prevent the disclosure of firm-specific information gathered in that role.

My Department sought information from the Banks in which the State has an interest, and received the following responses: 

Permanent TSB's current policy in respect of interest rates on the warehoused portion of Split Mortgages is as follows:

- The Bank applies a rate of 0% on the warehoused portion of debt secured by way of a Primary Residence, and under the protection of the Code of Conduct on Mortgage Arrears 2013.

- The Bank applies a reduced rate of interest on the warehoused portion of debt secured by way of a Buy To Let property. The reduced rate depends on the level of rental cash flow and principal repayment. It is typically 0.5%, 1.00% or 1.5%.  Interest rates outside of these bands may apply in limited circumstances, but once again at a reduced level dependent on rental cash flow and principal repayment.

AIB have confirmed that the warehoused portion of the split mortgage is currently at a rate of 0% within AIB and EBS.

Bank of Ireland state that their Owner Occupier borrowers may choose to stay on their existing interest rate or choose one of the Bank's fixed rate products.

Financial Services Regulation

Questions (76)

James Lawless

Question:

76. Deputy James Lawless asked the Minister for Finance if his attention has been drawn to the practice by which banks are requesting know-your-customer-type anti-money-laundering documentation (details supplied) for accounts held by voluntary and community groups under threat of accounts being frozen should such documentation fail to be provided within one week; if he will request the Central Bank to direct some latitude to be given regarding timelines in such cases; and if he will make a statement on the matter. [40325/17]

Written answers

Minister for Finance

I am aware that banks may request documentation of the type described from any account holder, including voluntary and community groups, as part of ongoing efforts to combat both money laundering and terrorist financing.

The Central Bank oversees regulated financial services providers in Ireland and an important part of its supervisory remit is to ensure that credit and financial institutions comply with their obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010-2013. In carrying out these functions the Bank is required to act in an independent fashion and consequently I am not in a position to request it to direct some latitude to these groups regarding timelines for compliance.

It should be noted that section 33 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, sets out the requirements in relation to customer due diligence (‘CDD’).  Pursuant to section 33, designated persons, including banks, are required to identify the customer and verify the customer’s identity on the basis of documents (whether or not in electronic form) or information which the designated person has reasonable grounds to believe can be relied upon to confirm the identity of the customer. 

The legislation does not set out the CDD requirements to be carried out in relation to customers that are voluntary and community groups and as such designated persons will take a risk based approach to determining how they comply with section 33 in relation to those customers.

Guidelines on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing have been published which advise credit and financial institutions to take a risk-based approach in the following terms:

“There may be circumstances where it is reasonable to delay discontinuing a business relationship while the designated person facilitates the customer’s efforts to rectify the failure. The reasonableness of such a delay will vary depending on the circumstances of each case. Where a customer refuses to provide requested documentation or information then the business relationship should be discontinued once the customer has been warned of the potential implications and given time to respond accordingly”.

In summary, banks are required to ensure that all of their customers provide them with the necessary anti-money laundering documentation as per section 33 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, however the guidelines referred to above do appear to give them some latitude as to the approach they adopt based on the circumstances of each case.

Poultry Industry

Questions (77, 78, 79)

Micheál Martin

Question:

77. Deputy Micheál Martin asked the Minister for Finance if his attention has been drawn to allegations from a person (details supplied) regarding tax loopholes in the poultry sector that allow or allowed co-op members to avail of VAT rebates even if not registered; the actions that were taken by his Department following notification of same; if the loopholes have been corrected; if they apply to other sectors; and if he will make a statement on the matter. [40443/17]

Micheál Martin

Question:

78. Deputy Micheál Martin asked the Minister for Finance if the Revenue Commissioners were requested to investigate VAT loopholes in the poultry sector further to comments made by his predecessor at the economic and monetary affairs committee in 2016; and if he will make a statement on the matter. [40444/17]

Micheál Martin

Question:

79. Deputy Micheál Martin asked the Minister for Finance if the European Commission was in contact with him regarding a tax loophole in the poultry sector that put co-op members at a competitive advantage; and if he will make a statement on the matter. [40445/17]

Written answers

Minister for Finance

I propose to take Questions Nos. 77 to 79, inclusive, together.

The Deputy will be aware that the Revenue Commissioners advised my Department that a business model had emerged in the poultry sector that could result in a systematic excess of flat rate addition payments to farmers over VAT incurred on their inputs.

While the business structures and contractual arrangements employed in the sector were lawful they are not acceptable if they result in a systematic overcompensation of farmers for the VAT borne on their input costs.  Accordingly, when this matter was brought to the attention of my predecessor a provision was introduced in Finance Act 2016 that enables me to exclude, by Ministerial Order, any specified agricultural sector where the business structures or models employed result in a systematic excess of flat-rate addition payments over input costs borne by flat-rate farmers within that sector. If it proves necessary to do so, I fully intend to make any order required to exclude any sector from the flat rate scheme. 

I am advised by Revenue that they have engaged with all relevant players in the poultry sector to establish the detail and extent of such structures and contractual arrangements and to establish if they plan to unwind any structures and arrangements that could give rise to overcompensation of farmers for the VAT borne on their input costs. I also understand that following undertakings to change important elements of the business model employed in the sector, Revenue will now evaluate if systematic overcompensation of flat rate farmers in the sector could still arise, which is still a risk given the nature of some of the contractual arrangements that are a feature of the sector. If Revenue’s evaluation finds that there is still an excess of flat rate addition payments to farmers in the sector over the VAT borne on their input costs, they will prepare a report for my office as provided for in Section 86A of the VAT Consolidation Act, 2010 (inserted by Section 47 of Finance Act 2016).

In relation to other agricultural sectors, I am advised by Revenue that they are conscious of the risks and are actively looking for indications of the emergence of similar structures and contractual arrangements in other agricultural sectors and have discussed this matter with the Irish Farmers Association.

With regard to your question in relation to the European Commission, Ireland responded to a number of questions raised by the Commission on the application of the Flat-Rate Scheme for Farmers in the agricultural sector in Ireland. The Commission closed this file in February 2017.

NAMA Reports

Questions (80)

Mick Wallace

Question:

80. Deputy Mick Wallace asked the Minister for Finance if his Department has issued yearly reports to the EU Commission for the Directorate General for Competition on the use of NAMA's post-acquisition powers; the number of yearly reports that have been issued to date; and if he will make a statement on the matter. [40478/17]

Written answers

Minister for Finance

A stipulation of the European Commission's decision of 26 February 2010 on the "Establishment of a National Asset Management Agency (NAMA): Asset relief scheme for banks in Ireland", (Ref: State aid N725/2009 - Ireland), was a requirement that the Irish authorities "report on a yearly basis on the use of such post acquisition powers to both the Commission and the Irish competition authorities (paragraph (74)vii.7)".  The Commission's decision is publically available via the following link: http://ec.europa.eu/competition/state_aid/cases/234489/234489_1086237_117_2.pdf.

I can confirm that yearly reports on NAMA's use of post-acquisition powers have been submitted to the European Commission and Irish competition authorities for the years 2010 - 2016 inclusive, a total of seven such reports.

Film Industry Tax Reliefs

Questions (81, 82)

Peadar Tóibín

Question:

81. Deputy Peadar Tóibín asked the Minister for Finance if his attention has been drawn to the fact that foreign companies may be partnering with Irish companies for the purpose of availing of section 481 tax exemptions; and if he has put in place mechanisms to ensure that real work and real development happens within Ireland as a result of the section 481 scheme. [40510/17]

Peadar Tóibín

Question:

82. Deputy Peadar Tóibín asked the Minister for Finance if Irish companies receive section 481 tax exemptions for work exclusively carried out outside Ireland; and if so, the value of the section 481 tax exemptions granted to Irish companies for work carried out in total or in part abroad for each of the past five years. [40511/17]

Written answers

Minister for Finance

I propose to take Questions Nos. 81 and 82 together.

I am advised by the Revenue that the film tax credit, found in section 481 Taxes Consolidation Act 1997, provides for a tax incentive for companies which produce films in Ireland.  The tax incentive may apply to any portion of the production, or post-production work, carried on in Ireland.  The design of the film tax credit ensures that the work on the production of a qualifying film takes place in Ireland.

An application for eligibility for the relief must be made prior to the completion of the film.  For each film, the Minister for Culture, Heritage and the Gaeltacht specifies the number of trainees who must be engaged in the production of the film in Ireland. The aim of this trainee requirement is to ensure that a skilled workforce is available to work on the production of films here. 

Relief is given by way of a tax credit calculated with reference to the “eligible expenditure” incurred in producing the film.  “Eligible expenditure” is defined as amounts paid to employees who carry out their employment in Ireland plus any amounts spent on the goods and services which are used in the production of the film in Ireland and which were acquired from a person in Ireland.  Therefore, relief under section 481 is not given in respect of expenditure incurred outside of Ireland. 

The companies who have received the film tax credit are published on the Revenue website at: http://www.revenue.ie/en/companies-and-charities/reliefs-and-exemptions/film-relief/beneficiaries-of-film-relief.aspx.