Written Answers Nos. 142-161
153. Deputy John McGuinness asked the Minister for Finance if the tax affairs of a person (details supplied) will be determined in view of the fact that the ability of the business to tender effectively is being affected; the rationale behind the decision to set the rate of RCT at 35%; and if he will make a statement on the matter. [41983/18]
View answerI am advised by Revenue that the discussions referred to in my response to the Deputy’s previous Question on this matter (Question No. 139 of 18 September 2018) are still ongoing.
Revenue has confirmed that once the outstanding issues are fully clarified and resolved it will be possible to review the 35% RCT rate.
154. Deputy Robert Troy asked the Minister for Finance the reason a person (details supplied) is unable to obtain tax clearance from the Revenue Commissioners. [42002/18]
View answerI am advised by Revenue that there is no record of an application by the person concerned for tax clearance.
There is a real-time online facility available to facilitate applications for tax clearance – the system can be accessed via ROS (business customers) or MyAccount (PAYE and non-ROS customers).
In certain circumstances, applicants can apply for a Tax Clearance Certificate by completing a TC1 Application Form which can be obtained from their local Revenue office or by downloading from the Revenue website. Completed forms must be submitted to the Collector-General's Office, Sarsfield House, Francis Street, Limerick.
Finally, Revenue has drawn attention to the fact that a person’s tax affairs must be in order, including that any tax returns due have been filed with Revenue, before tax clearance will be provided.
Further information, as may be required by the person concerned, can be obtained through Revenue’s Helpline at 01 738 3663.
155. Deputy Maureen O'Sullivan asked the Minister for Finance if there is some leeway under the living city initiative for a pre-1915 property just outside the catchment area at the gate of the house whose owners are anxious to refurbish it. [42004/18]
View answerAs the Deputy may be aware, in order to qualify for tax relief under the Living City Initiative, the property must be located wholly within a “special regeneration area”. This condition is provided for by s. 372AAB (1) of the Taxes Consolidation Act 1997 which provides as follows:
"qualifying premises' means a relevant house - (a) the site of which is wholly within a special regeneration area,"
I am advised by Revenue that a property that is located outside the special regeneration area cannot qualify for relief under the scheme.
156. Deputy Catherine Murphy asked the Minister for Finance if food and beverages served in sports facilities will be subject to VAT at the 9% rate or the 13.5% rate in the context of budget 2019; and if he will make a statement on the matter. [42088/18]
View answer157. Deputy Catherine Murphy asked the Minister for Finance if food and beverages served in local authority and commercial golf clubs will be subject to VAT at the 9% rate or the 13.5% rate; if same is the case in respect of member owned golf clubs in view of the fact that visitor green fees attracted the 9% rate up to this date and in member owned courses green fees were VAT exempt; and if he will make a statement on the matter. [42089/18]
View answer158. Deputy Catherine Murphy asked the Minister for Finance if food and beverages served in local authority and commercial sports clubs will be subject to VAT at the 9% rate or the 13.5% rate; if same is the case in respect of member owned sports clubs; and if he will make a statement on the matter. [42090/18]
View answerI propose to take Questions Nos. 156 to 158, inclusive, together.
The supply of food and drink for human consumption in the premises of all sporting organisations, irrespective of whether the organisation is operated by a local authority or by a sports club that is members owned or commercial in nature, is liable to VAT at the same rates that apply in other locations such as restaurants or hotels.
The 9% VAT rate was retained in respect of the provision of facilities for taking part in sporting activities whereas the rate of VAT on food that is supplied in the course of catering will increase from 9% to 13.5% from 1 January 2019.
Supplies of alcohol, bottled waters, soft drinks, sports drinks and vegetable juices are liable to VAT at the standard rate in all circumstances in the course of catering. All other beverages, including fruit juices, supplied with a meal in the course of catering, are currently liable to VAT at the 9% rate but will increase to 13.5% from 1 January 2019.
159. Deputy James Browne asked the Minister for Finance his plans to introduce VAT on food supplements; and if he will make a statement on the matter. [42124/18]
View answer165. Deputy Michael McGrath asked the Minister for Finance if he will address a matter raised in correspondence (details supplied) relating to the VAT treatment of food supplements; and if he will make a statement on the matter. [42262/18]
View answerI propose to take Questions Nos. 159 and 165 together.
Issues of clarity and consistency relating to the VAT rating of health food supplements arise from the fact that a small selection of food supplements have historically been applied at the zero rate of VAT by concession of the Revenue Commissioners since the introduction of VAT in 1972. The majority of food supplements, however, are charged at the 23% standard VAT rate.
The expansion and diversification of the food supplement market since 1972, has led to a significant growth in the number and variety of food supplement products which do not qualify for the Revenue concession. The Revenue Commissioners have received a large volume of requests for confirmation of the VAT treatment on a broad range of food supplements in recent years, leading to compliance concerns and calls for fiscal neutrality.
The Revenue Commissioners has engaged with industry representatives on the matter and one solution would be to legislate to apply a reduced VAT rate to all food supplements as the VAT Directive does not permit the application of the zero rate to food supplements.
160. Deputy Catherine Murphy asked the Minister for Finance if he has read the LPT review group report in full in the context of his budget 2019 speech; if the report will be published; the timeline for the implementation of recommendations or changes to LPT in full; and if he will make a statement on the matter. [42171/18]
View answerThe report of the review of the LPT is currently being finalised in conjunction with the Departments of Public Expenditure and Reform, Housing Planning and Local Government, the Taoiseach and the Revenue Commissioners. I will of course, carefully consider the conclusions and recommendations of the report when it is presented to me. The report will also be published.
The purpose of the review is to inform me in relation to any actions I may recommend to Government concerning the LPT having regard to, inter alia, the residential property revaluation date which will arise on 1 November 2019. Any material changes would, of course, require legislation in order to enable the Revenue Commissioners to have the necessary administrative and technical arrangements in place in relation to LPT liabilities for 2020 and beyond.
161. Deputy Noel Rock asked the Minister for Finance the progress in discussions with the Brazilian authorities to remove Ireland from a blacklist of tax havens; his views on the length of this process; his further views on the potential damaging effect this has on Ireland's international reputation; and if he will make a statement on the matter. [42215/18]
View answerThere has been ongoing engagement between Irish and Brazilian officials at every possible opportunity at official, political and diplomatic level, on the issue of Ireland being included on the Brazilian tax list.
It has been raised with the Brazilian Finance Minister on numerous occasions. The Finance Ministry’s position has been that it is a matter for the Revenue Secretary.
Minister of State Joe McHugh TD travelled to Brazil as part of the “Promote Ireland” Programme for St Patrick’s Day this year. Minister McHugh engaged directly with the Head of the Brazilian Revenue Service in a meeting specific to this matter. During September, Minister of State Pat Breen TD travelled to Brazil as part of a trade mission. Minister Breen raised the question of Ireland’s tax listing, with the Undersecretary General for Trade Promotion, Investment & International Cooperation who assured the Minister that the Brazilian Foreign Ministry were aware of Ireland’s concerns on this issue and would again raise the question within their system.
The Brazilian authorities have made clear Ireland has been included on the Brazilian list solely due to having a standard corporate tax rate below 17%.
We have continued to make the case that it is inappropriate to include Ireland on the list on the basis of our longstanding 12.5% corporation tax rate. We have pointed out our views that focusing on headline rates is flawed but Brazil have maintained their position.
Department of Finance officials and officials from the Revenue Commissioners continue to actively support the Irish Ambassador to Brazil in our efforts to seek Ireland's removal from the Brazilian list.
