Written Answers Nos 103-119
103. Deputy Noel Grealish asked the Minister for Finance when the policy regarding VRT refunds under the VRT export repayment scheme was changed (details supplied); the date this policy change was implemented; and if he will make a statement on the matter. [12603/18]
View answerI am informed by Revenue that the Finance Act 1992, section 135(D) provides for the repayment, in certain circumstances, of Vehicle Registration Tax where a vehicle is permanently exported from the State. This section was commenced with effect from 8 April 2013.
Subsection (5) of this section originally provided that Revenue must make the repayment to the person named on the Vehicle Registration Certificate (VRC). However, an updated VRC is only issued where a vehicle is sold on to a private individual and not where a vehicle is held in stock by a motor dealer. To ensure that the export repayment is made to the current owner of an exported vehicle, this section was amended by the Finance Act 2013 to provide instead for repayment to the person named on the National Vehicle Data File (NVDF) that is maintained by the Department of Transport, Tourism and Sport, as this file contains the most up to date information on vehicle ownership, including motor dealers.
I am advised by Revenue that this provision has not been changed since its introduction in 2013 and is referenced on the Revenue website at https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/export-repayment-scheme/making-a-claim.aspx and on the NCTS website at https://www.ncts.ie/1201.
104. Deputy Fergus O'Dowd asked the Minister for Finance if a case (details supplied) will be examined in relation to the calculation of VAT on a VRT calculation; and if he will make a statement on the matter. [12637/18]
View answerThe VAT treatment of motor vehicles is subject to the requirements of the EU VAT Directive, with which Irish VAT law must comply. I am advised by The Revenue Commissioners that Motor vehicles which are brought into the State and are 'new' for VAT purposes are subject to VAT at the standard rate. In accordance to the Directive, Irish legislation provides that a motor vehicle is considered new where it is either less than 6 months old or has less than 6,000 km. Under the Directive, there is unfortunately no discretion to change this provision.
105. Deputy Timmy Dooley asked the Minister for Finance the VAT received from the sale of print newspapers in 2017; the VAT received from online newspapers in 2017; and if he will make a statement on the matter. [12642/18]
View answerI am advised by The Revenue Commissioners that traders are not required to separately identify the yield generated from a particular activity or product type on their VAT returns. The information is therefore not available to provide an estimate of the VAT received from the sale of print or online newspapers.
106. Deputy Niall Collins asked the Minister for Finance the details of the latest employment projections for the 2018 to 2022 period at national and regional level in tabular form. [12741/18]
View answerMy Department's most recent macroeconomic forecasts were published with Budget 2018 in October last year, and cover the period up until 2021. The following table sets out the total employment projections from these forecasts. My Department does not produce regional macroeconomic forecasts.
Overall, it is forecast that there will be employment growth of approximately 2.0 per cent on average per annum over the period from 2018 to 2021. For this year, employment growth of 2.3 per cent is projected. For next year, employment gains of 2.1 per cent are also anticipated. Over the remaining two years of the forecast horizon to 2021, employment growth of 1.7 per cent on average per annum is projected.
|
|
2018 |
2019 |
2020 |
2021 |
|
Employment (%) |
2.3 |
2.1 |
1.8 |
1.6 |
Source: Department of Finance
These forecasts will be updated in the 2018 Stability Programme Update which will be published in April.
107. Deputy Michael McGrath asked the Minister for Finance the procedure for prize bond draws; the location where they take place; the regularity with which they are run; the person or body that conducts the draw; if they are independently observed; if there is scope to have the draws publicised similar to the national lottery; and if he will make a statement on the matter. [12758/18]
View answerI am informed by the NTMA that Prize Bond draws are held by the Prize Bond Company in a controlled access environment in the GPO. A representative of the NTMA acts as independent observer on each occasion.
The draws usually take place on a Friday. A draw is held, at a minimum, in respect of each week of a calendar year.
The procedure for the selection of Prize Bonds to be awarded prizes in a draw is as follows. The Prize Bond draw is conducted using a computer based, software-driven, random number generation system (the "system"). In conducting the draw, the system generates a random series of numbers in the same format as a Prize Bond serial number. If the series of numbers that is generated includes any serial number for bonds that have already been encashed the system will automatically remove these numbers from the series. A Prize Bond can only win one prize in each weekly draw. Prizes are awarded to the bond serial numbers (in descending order of amount) in the order in which the bond serial numbers were generated. This means that the highest valued prize is awarded to the first Prize Bond in the series, the second highest valued prize to the second Prize Bond in the series and so on until all prizes are awarded.
Following each draw, the results of the Prize Bonds draw are publicised on the State Savings website (www.StateSavings.ie ) usually from 12:30 p.m. The Prize Bond Tracker function on the website allows holders of Prize Bonds to check if their bonds have won a prize. Details of the top eleven prize winning numbers are available at all Post Offices on the same day. The media are also informed of the main prizes.
Further details on Prize Bonds may be found in the Prize Bond FAQ section of the State Savings website, available here: https://www.statesavings.ie/Downloads/PrizeBondsFAQs.pdf.
108. Deputy Michael McGrath asked the Minister for Finance when he plans to sign the statutory instrument for the transposition of the insurance distribution directive, specifically in relation to Articles 22.3 and 29.3 regarding the remuneration model; if he will await the outcome of the review by the Central Bank before implementing them; if he will avail of discretion to implement these articles until this review is complete; and if he will make a statement on the matter. [12759/18]
View answerThe Insurance Distribution Directive (IDD) was published in the Official Journal of the European Union in February 2016 and was originally to be transposed into Irish law and apply to industry by February 2018. On 20 December 2017 the European Commission published a proposal to postpone the application date of IDD to October 2018. This proposal was subsequently amended to postpone the transposition deadline to 1 July 2018. The legislative act giving effect to this proposal was published in the Official Journal of the European Union on 19 March 2018.
IDD replaces the Insurance Mediation Directive which currently regulates point of sale insurance products and aims to further enhance consumer protection and ensure a level playing field by extending the scope of the Directive to include all sales of insurance products. It will also seek to identify and mitigate conflicts of interest in particular in the area of commissions, and strengthen administrative sanctions.
As the Deputy is aware, IDD contains a number of national discretions including in relation to the payment of commission to intermediaries provided for in Articles 22 and 29 of the directive. The area of payments of commissions is a complex one and is the subject of a review by the Central Bank of remuneration, inducements and commission payments for the sale of financial services products.
Furthermore, there is an interaction with the Markets in Financial Instruments Directive (MiFID II) which came into force on 3 January 2018, in so far as functionally equivalent or substitutable investment products can be sold under either Directive.
In order to ensure a level playing field for functionally equivalent products, I have decided to exercise part of the discretion in Article 29(3) to prohibit the acceptance and retaining of fees, commissions or non-monetary benefits from third parties in relation to the provision of independent insurance advice for insurance-based investment products.
As there is no level playing field issue with insurance products in general, the discretion in Article 22(3) in relation to such products is not being availed of at this time, but will be considered further after the Central Bank consultation on Intermediary Inducements is completed in 2018.
The necessary work to progress the transposition of IDD is continuing. In this regard, my Department is working closely with the Office of the Parliamentary Council and the Central Bank of Ireland to complete the work on the transposing regulations well in advance of the deadline of 1 July.
109. Deputy Tony McLoughlin asked the Minister for Finance his plans to investigate with the Revenue Commissioners the efforts they are making in order to increase their patrol of goods and products entering the country in small packages from non-EU countries for excise duty and taxes in view of the effect that cheap imported products which go on for resale here are having on local SMEs; and if he will make a statement on the matter. [12773/18]
View answerI am advised by Revenue that the importation of purchases made by online shoppers from non-EU countries are generally carried out either by express couriers or through the postal system. In the case of the express couriers, these companies complete the necessary import declarations and pay duty and VAT, where payable, to Customs. In respect of imports via the postal system, the parcels are produced by the postal authorities to Customs and assessed for duty and VAT. The postal authorities pay the amounts assessed to Customs and then recoup this from the importer at the time of delivery of the goods. There are some duty and VAT reliefs for low value consignments. Where the intrinsic value of a consignment is €150 or less, Customs duty will not be collected. VAT will not be collected where the value of the consignment is €22 or less. Details of these reliefs and information for members of the public on online shopping is available on the Revenue website www.revenue.ie.
In respect of goods liable to excise duty, this must be paid at importation and the personal duty free allowances available to travellers who bring goods with them on entering the EU does not apply in respect of such online purchases.
I am also informed by Revenue that it utilises a series of analytical profiling systems in addition to the physical monitoring of postal traffic flows to identify excisable products, abuse of the low value reliefs, mis-description and undervaluation. There are a wide range of sanctions available to Revenue to combat any such irregularities which includes the seizure of the goods. Where such irregularities involve commercial quantities of goods, Revenue may employ the full range of enforcement actions including follow up searches of premises, investigation and prosecution, where warranted.
Revenue is working at both national and EU level to develop better systems for processing and taxing online purchases coming into the EU from 3rd countries.
Revenue is very aware of the increase in online shopping and eCommerce and will continue to monitor trends and respond appropriately to changes in the marketplace and in the supply chain.
110. Deputy Pearse Doherty asked the Minister for Finance the number of homes or buy-to-lets lost after the Central Bank wrote to the lenders in December 2015, respectively, by lender, as a result of the tracker mortgage scandal; and if he will make a statement on the matter. [12811/18]
View answerThe Central Bank has advised that, as of end-December 2017, lenders have reported that loss of ownership has occurred in respect of 41 private dwelling homes and 100 buy to let properties arising from their failings to their tracker mortgage borrowers. However, it should also be noted that, as lenders’ analyses continues, this figure can be expected to rise. The Tracker Mortgage Examination continues to be a priority for the Central Bank and it will continue to challenge lenders in respect of the conduct of the Examination. A further Central Bank progress report will be submitted to me in due course on the basis of end March 2018 data from lenders.
111. Deputy Bríd Smith asked the Minister for Finance his plans to reintroduce tax relief for trade union members on union subscriptions; and if he will make a statement on the matter. [12816/18]
View answerA review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on budget day 2016. The review may be found at the following link:
(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf)
The review concluded that:
"...analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."
Given the conclusions of the review, I have no plans to reintroduce such a relief.
112. Deputy John Deasy asked the Minister for Finance if he has received proposals from other Departments for a scheme similar to the home renovation incentive scheme to incentivise the refurbishment of derelict business premises in towns and villages; and if so, when such a scheme will be introduced. [12867/18]
View answerI did not receive a proposal for a scheme similar to the home renovation incentive scheme to incentivise the refurbishment of derelict business premises in towns and villages from other Ministers, or their Departments, in the course of preparations for Budget 2018, nor have I received such a proposal so far this year.
113. Deputy John Deasy asked the Minister for Finance the plans or proposals received for a scheme to incentivise the purchase and renovation of old cottages and rural dwellings which may otherwise fall into dereliction; and if so, when this will be introduced. [12868/18]
View answerI have received a number of proposals for tax incentives along the lines the Deputy suggests.
The use of tax incentives and reliefs in accordance with the tax expenditure guidelines published by my Department, is one of a number of potential approaches that can be adopted to deal with the issues mentioned by the Deputy. There are number of tax incentives already in operation which incentivise the purchase and renovation of certain qualifying dwellings which may otherwise fall into dereliction.
The Living City Initiative (LCI) targets dwellings built before 1915 which demonstrate clear evidence of neglect, dereliction and under-use. The dwellings must be located within the designated ‘Special Regeneration Areas’ which are particular urban areas that have been identified as being in need of regeneration. Individuals participating in the scheme receive a tax relief for expenditure on refurbishment and conversion work.
A review of LCI was undertaken last year by my officials and this was published in the Report on Tax Expenditures (October 2016) that was released on Budget Day. In light of the findings in the report, and in consultation with the relevant councils and the Minister for Culture, Heritage and the Gaeltacht. I announced a number of changes to the scheme in Budget 2017 to make the incentive more attractive and effective. The aim is to get the design right and working in an effective manner. It is important that the underpinning scheme is made more effective, as until that has been achieved, extension of eligibility for it to other towns or cities would be largely meaningless. Accordingly, I do not currently propose to extend the incentive beyond the present locations.
The Home Renovation Incentive (HRI) was introduced on 25 October 2013 to promote the renovation, repair and improvement of the residential stock.
HRI provides for a tax credit where the VAT exclusive spend on a qualifying property is at least €4,405. The tax credit represents 13.5% of the total cost of works subject to a maximum credit of €4,050. The incentive was extended from 15 October 2014 to include renovation, repair and improvement of rental properties whose owners are liable to income tax. The incentive was further extended to local authority tenants from 1 January 2017. Only works carried out by a tax compliant contractor qualify. The types of premises to which the Deputy refers may qualify for this incentive.
Historically, there were several area-based property incentives in operation, such as the Rural Renewal scheme. These incentives provided tax relief for expenditure incurred by owner-occupiers on the construction, conversion or refurbishment of residential accommodation in certain designated areas. Two extensive reviews of property taxation incentives were undertaken by independent economic consultants Goodbody and Indecon in 2005, which recommended that the vast majority of these initiatives be ceased. These recommendations were followed and most of these schemes have been gradually phased out of the tax code since 2006. I am not in favour of their reintroduction.
Finally, "Realising our Rural Potential: Action Plan for Rural Development" contains a detailed list of actions and priorities with a view to revitalising rural Ireland generally. This effort is being led by the Minister for Rural and Community Development in conjunction with Ministers and officials from other Departments, as well as the Local Authorities and a range of other stakeholders. A variety of actions included in this plan aim to assist in improving rural towns and making rural Ireland a better place to live.
114. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance his plans to amend the regulations on the disabled drivers' and passengers' scheme to allow drivers of cars bought through a PCP to avail of the scheme. [12928/18]
View answer115. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the number of applications under the disabled drivers' and passengers' scheme who were refused access to the scheme to date on the basis that the vehicle in question was bought under a PCP; when the disallowing distinction was introduced; the reason therefor; and if he will make a statement on the matter. [12929/18]
View answerI propose to take Questions Nos. 114 and 115 together.
I am informed by Revenue that the qualifying provisions for the Disabled Drivers' and Passengers' Scheme are contained in Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994). Regulations 8 (disabled drivers), 10 (disabled passengers) and 12 (organisations) provide that a vehicle must be “purchased” by the person or organisation.
I am informed by Revenue that there have been 15 refusals issued in relation to PCP Finance Agreements but these are currently being reviewed to establish if they qualify for the Scheme, based on the principle of whether exercising the option to purchase the acquired vehicle at the end of the contract period would clearly be the economically rational choice.
I am currently considering the position in relation to clarifying the eligibility of PCP finance agreements under the Scheme in the Regulations.
116. Deputy Catherine Martin asked the Minister for Finance his plans to extend income tax relief to routine dental expenses, such as fillings and extractions, in view of the introduction of the sugar tax; and if he will make a statement on the matter. [12946/18]
View answerSection 469 of the Taxes Consolidation Act 1997 provides for relief at the standard rate of income tax (currently 20%) on certain health expenses incurred in the provision of health care.
For the purposes of the section "Health Care" is defined as the "prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability" but excluding routine ophthalmic treatment, routine dental treatment and unnecessary cosmetic surgery.
Therefore, in current legislation, the individual can claim tax relief in respect of non-routine dental care provided by a registered practitioner. While non-routine dental treatment is not defined in legislation, a non-exhaustive list of relevant procedures is available on the Revenue website at: http://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/dental-expenses.aspx. These include major interventions such as periodontal treatment for gum disease and orthodontic treatment.
Routine dental treatment is defined as "the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures".
The exclusion of expenses incurred in respect of routine dental treatment has been in place since the relief’s inception in 1967. The rationale is that health expenses relief is broadly intended to provide assistance through the tax system in respect of significant or exceptional health expenses, but excluding those of a routine nature or minor nature.
However, the Deputy will be aware that there has in recent years been an increase in dental and optical benefits through the social insurance system. Budget 2017 extended Treatment Benefits to the self-employed, including a free dentist check-up examination once a year.
Additional treatments were added to both the optical and dental benefit schemes from 28th October 2017 for all qualifying individuals. Dental benefit seen the re-introduction of an annual scale and polish treatment in addition to the existing annual free examination. Optical benefit had the supply and repairs of a range of spectacles types re-introduced, in addition to the free once every two year free examination. Further information on these benefits can be provided by my colleague the Minister for Employment Affairs and Social Protection, Regina Doherty T.D.
The new tax on sugar-sweetened drinks is due to come into effect from 6th April, subject to approval from the European Commission. I would note however that hypothecation, the dedication of revenue from a specific tax for a particular expenditure purpose, is not a feature of the Irish tax system in general. My Department is opposed to the hypothecation of revenue funds as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
An annual budget is allocated to the Department of Health as part of the estimates process and that budget is assigned according to the needs within that Department, including in relation to measures to tackle the problem of obesity.
117. Deputy Paul Murphy asked the Minister for Finance if he has discussed bribery allegations against a Latvian ECB board member with his EU colleagues or with the ECB; and if he will make a statement on the matter. [12971/18]
View answerAs the Deputy will be aware I meet regularly my European colleagues to discuss a wide range of issues, particularly at Eurogroup and ECOFIN meetings. With regard to the allegations the Deputy refers to, I have not discussed this with my colleagues.
118. Deputy Niall Collins asked the Minister for Finance the projects mentioned in the National Development Plan 2018-2027 that come under his Department's remit or bodies under its aegis; and the estimated completion dates for each project in tabular form. [12990/18]
View answerI can inform the Deputy that my Department does not have any projects mentioned in the National Development Plan 2018 to 2027.
Of the seventeen bodies under the aegis of my Department, I am informed that fourteen are not involved in any projects mentioned in the National Development Plan 2018 to 2027. One of the bodies, the Office of the Revenue Commissioners, are involved in the PAYE Modernisation Project. The core Employer functionality will go live at the end of 2018. The core employee functionality will be in place by mid-2020. It was not possible for two bodies to respond to this information request in the time available and therefore I will make arrangements to provide a response in line with Standing Orders.
119. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the amount of all unclaimed lottery prizes for each of the five years before the sale of the lottery licence in 2014; if all unclaimed lottery prizes are being treated in the same way now as they were prior to 2014; the amount of all unclaimed prizes from 2014; if the licence arrangement with a company (details supplied) is a public document; if not, the reason therefor; the percentage of lottery funds given to good causes before and after 2014; the number of lottery agents prior to 2014; the number at present; if the licence agreement stipulates the number of agents; and if he will make a statement on the matter. [11884/18]
View answerMy officials have been advised by An Post National Lottery Company that the value of unclaimed lottery prizes for each of the 5 years before the sale of the licence in 2014 cannot be disclosed as these figures are considered commercially sensitive.
I am advised by the Office of the National Lottery Regulator as follows:
The current treatment of unclaimed prizes is specifically provided for under Clause 6.9 of the Licence to operate the National Lottery between the Regulator, the Minister for Public Expenditure and Reform and Premier Lotteries Ireland Limited, which states
"6.9 It is expressly agreed that unclaimed prizes paid to the Licensee as per Clause 6.8 shall be treated as follows:
6.9.1 In accordance with the provisions of Clauses 3.1 and 8, the Licensee shall clearly define in the respective Lottery Game rules, the manner and time period within which prizes must be claimed and shall use its best endeavours to notify Participants of the existence of such unclaimed prizes and to facilitate that such prizes are claimed;
6.9.2 Any expired Unclaimed Prizes shall be forfeited in favour of the Licensee, provided that such Expired Unclaimed Prizes shall be used:
6.9.2.1 solely for the promotion of the National Lottery and/or the Lottery Games (excluding Base Marketing), in a manner determined by the Licensee, which shall include the funding of special draws and additional or top-up prizes; and which may include Incremental Marketing and advertising of the National Lottery and/or Lottery Games; or such other activities to promote the National Lottery and/or Lottery Games as specifically agreed in writing with the Regulator from time to time;
and 6.9.2.2 no later than within three hundred and sixty five (365) days from the date on which they were forfeited in favour of the Licensee."
The previous treatment of unclaimed prizes is provided for under Bullet 7 of "Schedule 2 – Clause 5 The Prize Payment" of the Licence Authorising the Holding of the National Lottery on behalf of the Minster for Finance with An Post National lottery Company Limited (Licensee), which states
"7. Unclaimed prizes may be returned to the players up to the target prizes percentages and any money not so returned will remain in the Fund."
Please note that the information sought regarding the value of expired unclaimed prizes since the new licence came into place is the Licensee's confidential information and under Clause 20.6.1 of the Licence cannot be disclosed by the Regulator. I am further advised that the Regulator asked the Licensee for its permission to disclose this confidential information and the Licensee responded that PLI considers that this information is commercially sensitive and thus it would not be appropriate to release it at this time.
Please note that the Licence to Operate the National Lottery, subject only to minor redactions in respect of confidential information of the Licensee, is a public document and is available on the website of the Regulator www.rnl.ie.
Please note that under Bullet 2 of "Schedule 2 – Clause 6: Good Causes Contribution" of the Licence to operate the National Lottery between the Regulator, the Minister for Public Expenditure and Reform and Premier Lotteries Ireland Limited,
"Amounts in the Fund, allocated to Good Causes pursuant to Clause 6.6 of the Licence shall amount to 65% of the GGR calculated on an annual basis".
(Please note Clause 1.1.24 of the Licence states " 'Gross Gaming Revenue' or 'GGR' means Total Net Sales minus prizes calculated over a Financial Year. For the purposes of this clause 1.1.24, the word 'prizes' means the amount resulting from applying the weighted average prize percentage stated in the Lottery Game rules proposed by the Licensee and approved by the Regulator, calculated over all Lottery Games over the Financial Year on the Total Net Sales".)
Under the Licence Authorising the Holding of the National Lottery on behalf of the Minster for Finance with An Post National lottery Company Limited (Licensee) the percentage of lottery funds to be given to good causes is not stated. In Section 5, the licence sets out the payments to be made to the Fund and the payments to be made from the Fund. The remainder, after such payments and receipts is the amount available to good causes. Under the licence, this amount to good causes is subject to the variable amounts of the payments and receipts to the Fund.
Please note that the number of Retail Outlets at commencement of the Licence was 3,700 as stated in Clause 4.1 of the Licence to operate the National Lottery between the Regulator, the Minister for Public Expenditure and Reform and Premier Lotteries Ireland Limited,
"4.1 The Licensee shall ensure that within forty-eight (48) hours after the Effective Date the number of Retail Outlets shall be at least three thousand seven hundred (3,700)."
Please note that as of Tuesday 6th March, the number of authorised retail outlets is 5,790.
Please note that Section 42(1)(b) of the National Lottery Act 2013 provides that the Licence must set out a minimum number of agents. Neither the Act nor the Licence impose a maximum number.
