Written Answers Nos. 190-209
190. Deputy Michael McGrath asked the Minister for Finance his plans for changes to section 114 of the Taxes Consolidation Act 1997 in view of the decision made by the Tax Appeals Commission on 24 September 2018; and if he will make a statement on the matter. [54392/18]
View answerOn 11 December last, I replied to question number 51690-18 from Deputy Pearse Doherty in connection with this matter. In accordance with section 114 of the Taxes Consolidation Act 1997, where an employee is necessarily obliged to incur and defray out of the emoluments of the employment expenses of travelling in the performance of the duties of the employment, or otherwise to expend money wholly, exclusively and necessarily in the performance of those duties, there may be deducted from the emoluments of the employee to be assessed to income tax the expenses so necessarily incurred and defrayed.
I am advised by Revenue that arising from an employee’s entitlement to a tax deduction under that provision in respect of certain expenses, there exists a long-standing Revenue practice under which employers may reimburse tax-free to employees the expenses of travel (and subsistence relating to that travel), subject to certain conditions being fulfilled. The conditions under which the reimbursement to employees of the expenses of travel and subsistence may generally be made without deduction of tax are as follows:
(a) firstly, the employee must be temporarily away from his/her normal place of work in the performance of the duties of his/her employment;
(b) secondly, the travel expenses must be necessarily incurred in the performance of the duties of the office or employment, and
(c) thirdly, arising from a long-accepted position, supported by tax case law, the expenses of subsistence must attach to travelling necessarily incurred in the performance of the duties of the office or employment.
Moreover, provided the employee bears the cost of all expenses of travel necessarily incurred in the performance of the duties of his/her employment (and bears the cost of subsistence relating to such travel), Revenue will disregard for income tax purposes the reimbursement of expenses of travel and subsistence, where such reimbursement is made by way of:
(a) a flat rate up to, but not exceeding, the prevailing Civil Service rates for travel and subsistence, or
(b) a flat rate based on any other schedule of rates and related conditions of travel and subsistence, which do no more than reimburse the employee for actual expenditure necessarily incurred.
Revenue and my Department have noted the comments of the Appeal Commissioner in the case concerned (Tax Appeals Commission Determination 20TACD2018 refers). Revenue has published extensive guidance on the Tax Treatment of the Reimbursement of Expenses of Travel and Subsistence to Office Holders and Employees – Part 05-01-06 of the Tax and Duty Manual refers – and, notwithstanding the Appeal Commissioner’s comments, has no plans to alter its practice or published guidance on this matter.
In all the circumstances, I do not see that there is a need to consider a legislative amendment to section 114 of the Taxes Consolidation Act 1997.
191. Deputy Michael McGrath asked the Minister for Finance if borrowers from the 6,272 mortgages to be transferred from a bank (details supplied) to a corporation have received correspondence or communication from the corporation; if there are restrictions in place to prevent it from communicating with impacted customers; and if he will make a statement on the matter. [54425/18]
View answerPermanent TSB has provided the following detail in relation to the communications process in answer to the Deputy’s question:
- The loans will continue to be serviced by Permanent TSB for a period of up to 6 months (from the date of the transaction). Permanent TSB will continue to be the contact point for customers during this period.
- After the transfer date (up to 6 months from the date of the transaction), impacted customer loans will no longer be serviced or owned by PTSB. Pepper Finance Corporation (Ireland) DAC (Pepper Ireland) will hold legal title to the loans. In addition, it will act as servicer and administrator handling all of the day-to-day management of these loans.
- Immediately following the completion of the transaction at the end of November last year, PTSB wrote to all customers whose loans are included in the transaction to inform them of this development.
- At least 60 days ahead of the transfer, PTSB will write to customers again providing formal notice of transfer, and following completion of the transfer, Pepper Finance will also write to customers to provide them with Pepper Finance contact details and any other relevant information relating to their specific loan agreement.
192. Deputy Marc MacSharry asked the Minister for Finance the checks carried out by his officials to ensure that goods bought online from outside the State and posted to the purchaser are complying with VAT and customs duties regulations; and if he will make a statement on the matter. [54436/18]
View answerDifferent rules apply to goods bought online by customers from the EU compared to goods purchased from outside the EU. With regard to goods bought online by customers from other EU countries, such goods are not subject to customs duties. VAT is payable on these goods either in the Member State of the supplier or in Ireland, depending on the level of trade the supplier has with Ireland.
Goods purchased from outside the EU are subject to VAT and customs on importation. I am advised by the Revenue Commissioners that importations of goods bought online from non-EU countries are carried out either by express couriers or through the postal system. In the case of the express couriers, these companies make import declarations to Revenue and pay customs duty and VAT, where payable. In respect of imports from non-EU countries via the postal system, the parcels are presented by An Post to Revenue before they are delivered to the purchaser/importer and Revenue assess the duty and VAT payable. An Post pays the amounts assessed to Customs and then recoup this from the purchaser/importer at the time of delivery of the goods.
In addition, Revenue undertake random post-delivery import document checks on parcel consignments entering the country via express couriers to further manage the risk of non-compliance.
193. Deputy Fiona O'Loughlin asked the Minister for Finance the number of homes constructed which have been funded by NAMA; the number of these that have been sold by local authority and year; and if he will make a statement on the matter. [54454/18]
View answerI am advised that, from Q1 2014 to Q4 2018, NAMA funded the construction of 9,669 new residential units in Ireland on residential development land under the control of its debtors and receivers. It is important to note that NAMA can only fund developments which are under the control of its debtors and receivers and which are commercially viable.
The breakdown by local authority area and year of the residential units funded by NAMA to end-December 2018 is set out in the following table.
Unit Delivery by year and Local Authority
|
2014 |
2015 |
2016 |
2017 |
2018 |
Total |
|
|
DLRCC |
345 |
90 |
586 |
680 |
814 |
2515 |
|
SDCC |
558 |
243 |
218 |
389 |
187 |
1595 |
|
Fingal Co. Council |
115 |
333 |
386 |
399 |
352 |
1585 |
|
DCC |
241 |
99 |
182 |
258 |
444 |
1224 |
|
Cork Co. Council |
65 |
72 |
235 |
257 |
242 |
871 |
|
Kildare Co. Council |
52 |
56 |
145 |
205 |
250 |
708 |
|
Wicklow Co. Council |
10 |
57 |
73 |
143 |
141 |
424 |
|
Galway City Council |
26 |
68 |
82 |
49 |
225 |
|
|
Meath Co. Council |
51 |
29 |
31 |
10 |
31 |
152 |
|
Cork City Council |
12 |
41 |
13 |
66 |
||
|
Laois Co. Council |
71 |
4 |
75 |
|||
|
Wexford Co. Council |
52 |
4 |
56 |
|||
|
Kilkenny Co. Council |
26 |
16 |
42 |
|||
|
Clare Co. Council |
8 |
6 |
23 |
37 |
||
|
Monaghan Co. Council |
36 |
36 |
||||
|
Waterford Co. Council |
5 |
16 |
13 |
34 |
||
|
Galway Co. Council |
16 |
8 |
24 |
|||
|
Totals |
1502 |
1029 |
2117 |
2503 |
2518 |
9669 |
It is NAMA policy that units delivered through its residential delivery programme are openly marketed for sale. I am advised that, in the market conditions which have prevailed since 2014, NAMA debtors and receivers have not experienced any major delays in selling completed units. Accordingly, while the information set out in the tables above relate to completed units, I am advised that it corresponds closely to sales data.
194. Deputy Joan Burton asked the Minister for Finance the budget and spend in his Department for marketing, media and social media in each of the years 2016 to 2018; the projected spend for 2019; and if he will make a statement on the matter. [54464/18]
View answerMy department budgets in line with the subheadings outlined in the Revised Estimates Volume for Public Expenditure (REV). The budget for marketing, media and social media is included in Admin Non-Pay costs, specifically Subhead III: Training, Development, and Miscellaneous Costs.
Depending on the nature of the expenditure, it could also potentially be accounted for as part of our overall consultancy budget. However, the vast amount of our consultancy budget is to provide for the Department's requirement for legal or professional services and to cover any legal costs which arise.
As we budget at this level, we do not have details of projected spend in these categories for 2019. However, we expect spend to be broadly in line with the previous years, which are detailed in the table below.
A breakdown of my department's spending in the categories queried is available in the table.
|
Year |
Description |
Spend |
|
2016 |
Switch Your Bank |
€24,682 |
|
Mortgage Arrears Communication Campaign |
€73,136 |
|
|
Outside Broadcasting of National Economic Dialogue |
€17,657 |
|
|
2017 |
Switch Your Bank (of which: YouTube) |
€717,820 €6,223 |
|
Information notice re: Beneficial Ownership |
€2,408 |
|
|
European Financial Forum |
€25 |
|
|
Outside Broadcasting of National Economic Dialogue |
€17,657 |
|
|
2018 |
Switch Your Bank (of which: YouTube) |
€402,210 €8,896 |
|
Independent Newspapers Marketing Ltd. |
€1,240 |
|
|
Tuairisc Bheo Teoranta |
€983 |
|
|
Outside Broadcasting of National Economic Dialogue |
€13,617 |
The Switch Your Bank campaign is funded, in its entirety, by AIB and Permanent TSB, as part of a range of competition measures agreed with the European Commission to raise awareness and promote customer switching of financial products.
- The Department of Finance facilitates this campaign as part of its remit to ensure that consumers are protected within the financial sector in Ireland and to ensure a healthy level of competition.
- The contract with Language Communications permitted them to appoint subcontractors for provision of services.
- Phase one of the public awareness campaign cost €738,000 in total.
- Phase two of the public awareness campaign will cost €405,900 in total.
- An additional €738 was spent on web hosting for the Switch Your Bank campaign.
195. Deputy Joan Burton asked the Minister for Finance the number of staff in his Department employed to work on marketing, media and social media in 2018. [54481/18]
View answerI wish to inform the Deputy that there are no staff in the Department of Finance employed specifically to work on marketing, media and social media.
There are currently 5 members of staff (one of whom is currently on maternity leave) in the Press Office. In addition, one of my Special Advisers, provides media advice as part of her role.
196. Deputy Joan Burton asked the Minister for Finance his plans in respect of digital taxation. [54496/18]
View answerThe Deputy is aware that the European Commission proposal for an interim Digital Services Tax, which imposes a 3% levy on the turnover of certain companies’ digital activities, has been debated among Member States at both a technical and political level since first proposed, last March.
The Digital Services Tax proposal was included as an item for policy agreement at ECOFIN on 4 December, where Finance Ministers were asked to agree the scope of the proposal. The debate was held in public session.
An agreement was not reached, with several Member States, including Ireland, expressing reservations about the proposal. An amended Franco-German proposal was tabled at ECOFIN which seeks to narrow the scope of the digital tax to online targeted advertising only. Subsequent to the discussion the Presidency proposed that Member States consider the Franco-German proposal in the coming months.
Technical discussions will now commence on this proposal. It will be for the Romanian Presidency to determine whether and when this proposal will next be discussed by Ministers. Ireland will continue to engage constructively in this debate, as we have throughout this process.
I have always been clear that I fully recognise that further change is coming to the international tax environment. I remain convinced that global agreement at the OECD offers the most appropriate way for delivering these changes. Intensive work is underway at the OECD and it is expected that an update on this work will be published in mid-2019 with a view to reaching agreement before the end of 2020.
Ireland remains committed to global tax reform. That is why Ireland has been a committed participant in, and strong supporter of, tax reform efforts led by the OECD through the BEPS process.
Ireland will continue to actively engage with work in the area of tax and the digital economy at both OECD and EU level.
197. Deputy Joan Burton asked the Minister for Finance the steps he has taken to combat the uptake of loans with high-cost, high-risk moneylenders; and if he will make a statement on the matter. [54497/18]
View answerIt is important to any society that a responsible and sustainable financial sector provides appropriate credit to consumers. Many regulated financial service providers meet this need in Ireland and provide cIredit of various duration and price for a variety of purposes. Licensed moneylenders are part of this credit landscape and provide credit to consumers who are often unable to obtain credit from another cheaper source for various reasons.
A number of members within the credit union movement in Ireland offer the Personal Micro Credit (PMC) Scheme. This began as a pilot scheme, supported by Government, in November 2015. Loans under the initiative are branded "It Makes Sense" loans. The PMC Implementation Group was established to oversee and drive the implementation of the scheme through its pilot phase and subsequently through to implementation nationwide. My Department is represented on the PMC Implementation Group, which is chaired by the Department of Employment Affairs and Social Protection.
It should be noted that credit unions are independent and it is at management discretion if they sign up to offer the "It Makes Sense" loan to consumers. Additionally credit unions can only lend within their common bonds. Currently 48% of credit unions are involved in the PMC scheme and, therefore, only consumers within the common bond of these credit unions can avail of the “It Makes Sense” loan. As a result the "It Makes Sense" loan is not yet available as a nationwide mainstream alternative of affordable credit for current users of licensed moneylenders.
Anyone wishing to engage in the business of moneylending requires a licence from the Central Bank in accordance with the Consumer Credit Act 1995 (the Act) and the Central Bank assesses applications in line with the criteria set out in the Act. The Act provides that the Central Bank can refuse to grant a licence to a moneylender if it is of the opinion that the cost of credit is excessive.
One of the specific challenges that the Bank faces in considering rates charged by licensed moneylenders on specific loans is finding a balance between, on the one hand, the availability of credit for people who do not have access to legitimate credit elsewhere or who do not use other regulated credit providers and, on the other hand, the provision of short term unsecured loans at what can be a high cost.
There is a strong framework of protection in place for consumers who choose to avail of the services of licensed moneylenders including the Bank’s Consumer Protection Code for Licensed Moneylenders.
In March 2018, the Central Bank proposed new measures to enhance the framework of protections for customers of moneylenders, including
- Measures aimed at further ensuring that moneylenders adopt and implement a responsible lending culture.
- Moneylenders to prompt consumers to consider alternatives, including cheaper options, to moneylending loans.
- Measures to reduce the possibility of consumers over-extending themselves when borrowing from moneylenders.
The Bank undertook a public consultation on the proposals and it expects to finalise and publish Regulations under Section 48 of the Central Bank (Supervision and Enforcement) Act 2013, to replace the Consumer Protection Code for Licensed Moneylenders, in 2019.
198. Deputy Joan Burton asked the Minister for Finance his views on closet indexing which is subject to investigation of 2,000 Irish investment funds in view of the fact that the European Securities Market Authority has indicated between 5% and 15% of UCITs could be closet indexers. [54498/18]
View answerThe Central Bank of Ireland is the competent authority for authorising and supervising UCITS funds in Ireland.
I have been informed by the Bank that in Q4 2018 it began key supervisory work to review all Irish domiciled UCITS funds that report to be actively managed to determine if they are potentially index tracking.
ESMA has defined closet indexing as the situation ‘whereby asset managers claim, according to their fund rules and investor information documentation, to manage their funds in an active manner while the funds are, in fact, staying very close to a benchmark and therefore implementing an investment strategy which requires less input from the investment manager and charge management fees in line with those of funds that are considered to be actively managed. ’
The Central Bank investigation of 2,000 Irish investment funds is to ensure that investors are not misled or misinformed about the investment objectives, policies and charges set out in fund documentation.
The Central Bank’s supervisory work on potential closet indexing takes into account the work and methodology developed by ESMA, which the Bank has contributed to, and the findings in its study.
It is important that any issues identified by the Bank in their investigation of these 2,000 Irish investment funds are dealt with appropriately in order to ensure that investors are treated fairly.
To that end, the Bank has informed me that they will be following-up with any relevant funds identified in the review as potential ‘closet indexing’ funds, up to and including the use of the Central Bank’s full suite of supervisory powers depending on the nature of the findings.
199. Deputy Joan Burton asked the Minister for Finance the preparations made for a significant increase in businesses registering here ahead of Brexit; the measures he is taking in order to protect Irish SMEs during an influx into the economy; and if he expects a significant increase in the amount of corporation tax paid from foreign investment. [54499/18]
View answerThe Government are aware of the complexity of Brexit which, in whatever form it takes, will likely have a negative economic impact on Ireland. My Department has been to the forefront in assessing the impact of Brexit on our economy, commissioning joint research with the ESRI on the issue even prior to the referendum taking place. It is clear from this research and further studies, that a hard Brexit will have a considerable negative impact for Ireland.
The Government has already taken a number of important steps to prepare our economy for the challenges of Brexit. The Government has been building resilience through the creation of fiscal capacity, including by balancing the books and reducing our debt burden, building resilience to economic shocks through the establishment of the ‘Rainy Day Fund’. The fund is intended to act as an economic buffer in the event of a particularly severe economic downturn.
Our recent economic history highlights the importance of creating a fiscal safety buffer to help absorb inevitable shocks, at the same time, ensuring the long-term sustainability of the public finances.
The Government is also providing dedicated loan funds for affected businesses. As the Deputy will be aware, I announced a €300 million Brexit Loan Scheme in Budget 2018 to provide support to Irish SMEs to diversify and restructure their businesses in light of Brexit. This Scheme was launched at the end of March of last year. Following on from the successful launch of the Brexit Loan Scheme, as part of Budget 2019 I announced the development of the Future Growth Loan Scheme of up to €300m to provide long-term investment finance of 8-10 years to help Irish businesses invest strategically in a post-Brexit environment. I anticipate that this Scheme will be launched early this year.
The measures introduced in Budget 2019 continue the process of ensuring that Ireland’s economy remains competitive and resilient against the backdrop of heightened uncertainty, including from Brexit.
The Government and State agencies will also continue working hard to exploit any opportunities from Brexit, including promoting trade and investment opportunities in Ireland, as an English speaking member of the EU with unfettered access to the EU market.
At the sectoral level new opportunities have been identified – particularly in the international financial services sector which is heavily reliant on access to the Single Market and ongoing compliance with EU regulatory standards. Brexit has already seen opportunities for Ireland to increase its share of financial services-based inward investment. Public announcements to establish or expand operations have been made by a number of companies.
With regard to business registrations, I am advised by Revenue that the numbers of companies and businesses registering for Corporation Tax and Income Tax has been increasing in recent years. However, it is not possible to identify those registering as a result of Brexit separately from normal growth and expansion of the Irish economy.
I am further advised that Revenue provides an easy to use on-line facility that allows new customers to register for their taxes online. This facility can cater for significant numbers of new registrations if the need arises.
As the Deputy is aware, forecasts of tax receipts are produced by the Department of Finance with assistance from Revenue. The role of Revenue is to advise of any potential increases and decreases in taxation that they have been made aware of from administering the taxes and other data sources available to them. Revenue are not currently aware of any significant increases in tax receipts expected as a result of increased investment due to Brexit.
200. Deputy Richard Boyd Barrett asked the Minister for Finance if emails, memos or minutes of meetings between his Department and public or private banks in regard to cases of mortgage arrears or potential repossessions on the book of those banks will be provided; and if he will make a statement on the matter. [54527/18]
View answerAs the Deputy will be aware, I and my officials have regular meetings with the CEOs/senior officials of the banks operating in Ireland. Some of these meetings focus on specific issues such as the tracker investigations but also can cover more wide ranging general issues.
Obviously due to client confidentiality, commercial sensitivities and General Data Protection Regulation, the specifics of individual mortgage arrears cases or potential repossessions cases would not be discussed.
201. Deputy Joe Carey asked the Minister for Finance the position in relation to VAT on food supplements, vitamins and minerals; his plans to impose a 23% VAT rate on such products; and if he will make a statement on the matter. [54539/18]
View answerUnder the VAT Consolidation Act 2010, the standard rate of VAT applies to all food supplements, which are not foods in the ordinary and everyday meaning of the word. However, a longstanding concession provided through Revenue guidance permitted the zero rating of certain types of food supplements including vitamins, minerals and fish oils. The operation of the current concession became extremely problematic because of efforts by certain businesses in the industry to exploit the concession to extend zero rating way beyond the scope permitted by Revenue. These businesses consistently challenged Revenue guidance and Revenue decisions on the VAT rating of products giving rise to serious concerns about compliance within the industry and unfair competition between compliant and non-compliant businesses.
Revenue published new guidance on 27 December concerning the rate of VAT that applies to food supplements. The new guidance withdraws the concessionary application of the zero rate to certain food supplements provided for in previous guidance and these products will be liable at the standard rate from the 1 March 2019.
However, independent of Revenue’s decisions on interpretation, I agreed during the recent Finance Bill to put in place a process that will conclude in the 2019 Tax Strategy Group Paper to examine some of the policy choices around the VAT treatment of food supplements.
It should be noted, however, that human oral medicines, including certain folic acid and other vitamin and mineral products, licenced by the Health Products Regulatory Association will continue to apply at the zero rate of VAT. Infant foods will also continue to be zero rated.
202. Deputy Michael McGrath asked the Minister for Finance the steps he plans to take, including timelines, for the implementation of the recommendations and action points set out in the recent Central Bank report on behaviour and culture in the banking sector; and if he will make a statement on the matter. [1014/19]
View answerOfficials from my Department have been in discussion with the Central Bank with regard to the proposals as set out in the report on behaviour and culture in the Irish retail banks since its publication in July 2018.
My officials are preparing a detailed analysis of the proposals, which has been informed by the discussions with the Central Bank and learnings from HM Treasury's experience of the UK Senior Managers' Regime. When I have completed my review, I will give my initial views on the proposals with the intention to proceed and will, if required, engage with the Attorney General's Office for formal legal advice.
As I have previously stated in this House, I intend to seek Cabinet approval to draft the Heads of Bill by the end of Quarter 1 2019. As with any complex piece of legislative drafting, I expect that it will be some months after that before the draft Bill/Scheme goes to Government with its associated Regulatory Impact Analysis.
I would highlight now that it may be necessary to adjust this timeline to accommodate urgent Brexit-related legislation, which, as the Deputy is aware, must take priority.
203. Deputy Danny Healy-Rae asked the Minister for Finance if a system will be introduced in which clubs and associations that raise money voluntarily will be reimbursed VAT being charged (details supplied); and if he will make a statement on the matter. [1038/19]
View answerThe VAT Compensation Scheme for Charities was introduced in Budget 2018 to reduce the VAT burden on charities through the partial compensation of VAT they incur. This Scheme was introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, up to a total capped fund of €5m.
One of the conditions for qualification under the scheme is registration as a charity under Section 207 of the Taxes Consolidation Act 1997. Bodies established for the promotion of athletic or amateur games or sports are normally granted tax exemption under Section 235 Taxes Consolidation Act 1997, and this being the case may not be eligible to claim under the Charities Compensation Scheme.
204. Deputy Michael Healy-Rae asked the Minister for Finance if he will put forward a proposal (details supplied) at EU Council level; and if he will make a statement on the matter. [1087/19]
View answerEU Directive 92/83/EEC deals with the harmonization of the structures of excise duties on alcohol and other alcoholic beverages. This Directive provides that Member States may apply reduced rates of excise for small beer producers and also for small distilleries (spirit drinks producers). Ireland has exercised the option to apply reduced rates of excise for small beer producers.
Having regard to public health concerns, Directive 92/83/EEC set the production threshold for the application of excise relief for small distilleries at 10 hectoliters of pure alcohol per annum. In fact only seven Member States apply an excise relief for small distilleries and the commercial viability of such a scale of production was found by the European Commission to be very limited, most beneficial to ancillary producers.
A proposal to amend the current Directive 92/83/EEC was published by the European Commission in 2018. The legislative proposal includes an option for Member States to apply reduced rates of excise for cider and other fermented drinks, but it does not amend the existing small distilleries threshold nor is there any discernible interest among Member States in making any such amendment.
205. Deputy Fergus O'Dowd asked the Minister for Finance if consideration will be given to implementing the living city initiative in Drogheda, County Louth to help drive residential numbers up and vacant properties down (details supplied); and if he will make a statement on the matter. [1088/19]
View answerThe Living City Initiative was introduced in the Finance Act 2013 and commenced on 5th May 2015 when the initiative was extended beyond the original planned pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analyses.
The specific Special Regeneration Areas for the Living City Initiative in each city 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 are largely comprised of 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 then 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 aim is to get the design of the Initiative right so that it can work in an effective manner. Once it is proven that this have been achieved, it will then be possible to consider if and how the Initiative should be extended to other locations. Unless the underpinning scheme is made more effective, extension of eligibility for it to other towns would be largely ineffective.
206. Deputy Michael McGrath asked the Minister for Finance the amount collected from the sugar tax in 2018; the way in which this compares to the amount expected to be collected in 2018; the estimated yield from the tax for 2019; and if he will make a statement on the matter. [1108/19]
View answerI am advised by Revenue that the provisional receipts from Sugar Sweetened Drinks Tax (SSDT) in 2018 are €16.5m. As this was a new tax, forecasting the level of receipts in advance was challenging, but based on the best available information was estimated at €30m. This assumed a commencement date of 1 April 2018. The subsequent 1 May commencement date impacted on the returns filed and payments made. The estimated yield from SSDT in 2019 is provisionally set at €35m.
Finally, the Deputy will be aware that the primary purpose of this tax is to change behaviour rather than to raise revenue. As such, the early indications are that the tax is working effectively in reducing the volume of sugar sweetened drinks being consumed in Ireland.
207. Deputy Michael McGrath asked the Minister for Finance the amount of stamp duty collected in 2018 from non-residential property; the amount expected to be collected for 2019; and if he will make a statement on the matter. [1109/19]
View answerI am advised by Revenue that the provisional receipts of Stamp Duty associated with property in 2018 amounted to €661 million. It is estimated that €490 million of these receipts relate to non-residential property. While a formal forecast for Stamp Duty on non-residential property for 2019 is not prepared, Revenue's tentative estimate on a full-year basis is €530 million.
208. Deputy Michael McGrath asked the Minister for Finance the amount of Ireland’s sovereign debt that falls due for refinancing for each year from 2019 to 2025; and if he will make a statement on the matter. [1110/19]
View answer209. Deputy Michael McGrath asked the Minister for Finance the estimated cost for each year from 2019 to 2025 to Ireland of every 1% increase in sovereign borrowing costs; and if he will make a statement on the matter. [1111/19]
View answerI propose to take Questions Nos. 208 and 209 together.
The National Treasury Management Agency (NTMA) has advised me that at end-2018, the volume of medium/long-term Irish sovereign debt due to mature over the seven year period to end-2025 was just over €73 billion. The annual breakdown is set out in the table below. The maturity profile of Irish Government bonds and EU Programme loans is available on the website of the NTMA at the link pasted below and is updated monthly.
https://www.ntma.ie/business-areas/funding-and-debt-management/statistics/maturity-profile.
|
Year |
Principal Repayments*(€ billions) |
|
2019 |
15.2 |
|
2020 |
19.0 |
|
2021 |
0.5** |
|
2022 |
11.9 |
|
2023 |
7.0** |
|
2024 |
8.1** |
|
2025 |
11.5** |
Source: NTMA
* Reflects Government Bond and EU Programme loan maturities as at end-2018. Figures include the effect of currency hedging transactions.
** Excludes EFSM maturities as these loans are due to be extended following the maturity extensions granted in mid-2013.
The Deputy should be aware that the figures in the table for the years 2021, 2023, 2024 and 2025 exclude maturities of European Financial Stabilisation Mechanism (EFSM) loans of €3 billion, €2 billion, €0.8 billion and €2.4 billion respectively. This is because, owing to the maturity extensions granted in 2013, it is not expected that Ireland will have to refinance any EFSM loans before 2027. In total, over the period from 2019 to 2025, this reduces the refinancing requirement by €8.2bn to €73 billion .
While the vast bulk of Ireland’s National Debt is at fixed rates of interest the cost of refinancing that debt could become more expensive if interest rates were to rise.
However, it should be noted that the debt interest estimates set out in Budget 2019 are based on prudent assumptions and already allow for an increase in rates on Exchequer borrowing over the forecast period.
