Written Answers Nos. 187-211
187. Deputy Patricia Ryan asked the Minister for Transport the position regarding the Athy distributor route; the progress to date; his plans to bring this project to fruition; the target date for opening; and if he will make a statement on the matter. [40137/20]
View answerThe improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of Section 13 of the Roads Act 1993. State grants, where applicable, are intended to supplement the funding allocated to the maintenance and improvement of roads by local authorities from their own resources.
The National Development Plan (NDP) does provide for the gradual build up in funding for the road network but funding is not yet at the level needed for the adequate maintenance and renewal of regional and local roads. For this reason the primary focus for capital investment continues to be the maintenance and renewal of the network with some limited investment in road improvement schemes. In this context 12 regional and local road improvement projects were identified for development, subject to necessary approvals, in the NDP and the construction of a Distributor Road to the south of Athy connecting to the N78 is one of those schemes.
Under the Public Spending Code and the terms and conditions applying to regional and local road grants, capital projects are subject to review and approval at a number of stages. In this context Kildare County Council has submitted the contract documentation for the main Athy scheme construction contract to my Department for review.
As the project will be subject to further consideration before a decision is made on whether the tender process proceeds, I cannot give an indication at this point of a construction timeframe.
188. Deputy Holly Cairns asked the Minister for Transport if any of the four newly appointed persons to the board of the Road Safety Authority were known to him before he appointed them; if so, the capacity in which they were known to him; if any were members of the Green Party; and if he will make a statement on the matter. [40183/20]
View answerIn line with statutory provision, I have, in my capacity as Minister for Transport, appointed four new members to the RSA Board following a selection process organised with the Public Appointments Service (PAS).
The recruitment of four new members was to fill vacancies that arose following the expiry of the terms of four members of the RSA board in September and October 2019.
These Board vacancies were advertised through PAS in late 2019. An Assessment Panel was convened by PAS to consider and assess the applications received. A shortlist was formed and the applications for the shortlisted candidates were forwarded by PAS to my Department, for further action.
As per Departmental procedures, the next stage of this process was an internal review, whereby the shortlisted candidates met with representatives of this Department. All the shortlisted candidates' names and applications were presented to me for consideration, along with a recommendation based on the internal reviews.
I confirm to the Deputy that none of the four newly-appointed board members were known to me previously and I remain unaware of what political affiliation (if any) they may hold.
189. Deputy Catherine Murphy asked the Minister for Transport if he will provide a schedule of all consultancy firms, accountancy firms, legal firms, project management firms and information technology, IT, firms his Department has engaged to carry out work its behalf in 2018, 2019 and to date in 2020; if he will summarise the work they were engaged to do and the full costs of the engagements; if disputes over costs ensued; if they were resolved with or without sanctions and or financial penalties and or withholding of funds; and if contracts are subject to legal challenge or mediation. [40221/20]
View answerMy Department routinely publishes information on external expenditure on its website including information on consultancy, accountancy, legal, project management and IT firms engaged. Information on external expenditure for 2018 and 2019 is available here: www.gov.ie/en/collection/30ae9c-expenditure-on-external-services/.
Details regarding expenditure on external services for the period January-September 2020 is being prepared and will be published on the Department's website shortly.
My Department has a contract with an ICT services firm concerning a systems support contract. In 2018 a dispute over costs arose during the contracted period. The dispute was resolved without any legal recourse at a negotiated additional cost to the contract of €1,650 per annum.
190. Deputy Pearse Doherty asked the Minister for Transport if there are plans for an exchange programme for holders of TM CPC UK certificates to EU or Irish certificates following Brexit; and if he will make a statement on the matter. [40358/20]
View answer192. Deputy Pearse Doherty asked the Minister for Transport if a full and final decision has been made on exchanging international haulage certificates following Brexit; and if he will make a statement on the matter. [40362/20]
View answerI propose to take Questions Nos. 190 and 192 together.
EU legislation sets out a number of requirements to be satisfied in order to hold a road transport operator licence, one of which is professional competence. To fulfil this requirement, every road transport undertaking in Ireland (or in any other EU Member State) must have a nominated Transport Manager to effectively and continuously manage its transport activities. The Transport Manager must hold a Certificate of Professional Competence (CPC), in either Road Haulage or Road Passenger Transport depending on the nature of the operator's business. This certificate must be issued by an EU Member State and is ordinarily obtained by passing a written examination.
As highlighted by the European Commission in 2018, and more recently in July of this year, after the end of the Brexit transition period on 31 December, Transport Manager CPCs issued by an authority of the United Kingdom or a body authorised by the United Kingdom will no longer be valid in the EU.
As part of the Government's Brexit preparations, my Department carried out a review and identified approximately 200 individuals with a UK-issued Transport Manager CPC who are currently nominated as Transport Manager for Irish road transport operators. The Department recently wrote to these Transport Managers and the relevant operators to ensure that they are aware of the position as outlined by the European Commission.
My Department has liaised with the European Commission on this matter and has recently obtained clarification that corresponding Irish Transport Management CPCs may be issued to those UK-qualified individuals working for Irish operators and resident in Ireland, before the end of the Brexit transition period. This means that these Transport Managers will not now be required to undertake an Irish examination in order to continue to work as Transport Manager for an Irish or other EU operator.
In view of this clarification, my Department has established arrangements with the Chartered Institute of Logistics and Transport (CILT) for the application process to obtain a corresponding Irish Transport Management CPC. CILT is the body that issues Transport Management CPCs in Ireland on behalf of the Department. A further communication has now issued to affected Transport Managers to inform them of this recent update and to outline what needs to be done in order to obtain an Irish Transport Manager CPC.
It is important to note that applications must be submitted to CILT by 31 December 2020, as after that date it will not be possible to obtain an Irish Transport Management CPC on the basis of holding the UK equivalent certificate. No fee will apply in this case for obtaining an Irish Transport Management CPC.
191. Deputy Pearse Doherty asked the Minister for Transport when a driver licence will issue to a person (details supplied) requiring evidence of a valid driver licence for car insurance purposes; and if he will make a statement on the matter. [40359/20]
View answerMy Department does not have access to individual driving licence applications. All such applications are handled by the National Driver Licence Service, provided by the Road Safety Authority. I have referred the question to the Authority for direct reply and ask the Deputy to contact my office if a response is not received within 10 days.
193. Deputy Pearse Doherty asked the Minister for Transport the process to exchange UK driver licences for Irish licences for those that are not public services card holders while appointments are currently suspended for public services card applications; and if he will make a statement on the matter. [40363/20]
View answerWhile the National Driver Licence Service (NDLS) centres have remained open under the current Covid19 Level 5 Government restrictions, applicants can only attend an appointment provided they are an essential worker involved in the provision of essential services or essential retail outlets. This restriction was introduced for 6 weeks on 21 October, and it is hoped it will be eased today. Appointments can then be made by all applicants. A Public Service Card is not needed to apply in person at a NDLS centre.
The Road Safety Authority (RSA), through the NDLS, has expanded the current online facility to accommodate all driving licence and learner permit applications to enable accessibility online rather than by calling to an office. A verified MyGovID account, which requires a Public Services Card, is needed to access the online system.
My Department and the RSA have been encouraging holders of UK driving licences to exchange their licence for an Irish driving licence for the past two years.
194. Deputy Pearse Doherty asked the Minister for Transport if a process for online driver licence renewals that does not require a public services card is being considered during Covid-19 restrictions; and if he will make a statement on the matter. [40364/20]
View answerA verified MyGovID account, which requires a Public Services Card (PSC), is needed to access the online system provided by the Road Safety Authority (RSA), through the National Driver Licence Service (NDLS).
To apply for, or renew, a driving licence you are required to present photographic ID, evidence of PPSN, evidence of address and evidence of residency entitlement.
When an applicant presents in person at a NDLS centre, a face-to-face verification can be made and the required documentation can be examined. These offices are still open for applications and renewals where someone does not have a PSC and cannot access the online system.
The same information is required when accessing the online system, and the Public Services Card satisfies this requirement as the information has already been provided and verified by another Government department. Without a PSC, it is not possible to access the online system as the necessary face-to-face validation has not been made.
195. Deputy Pearse Doherty asked the Minister for Transport if the continued recognition of UK driver licences in Ireland post Brexit is included in current Brexit negotiations; and if he will make a statement on the matter. [40365/20]
View answerSection 23A of the Road Traffic Act 1961 allows for the recognition of foreign driving licences for exchange purposes in Ireland. When the United Kingdom leaves the European Union, the UK becomes a 3rd country and the potential then exists for arrangements to be made under section 23A, similar to those made with countries like Australia and Canada.
Ireland will pursue this option and my officials are working on this at present in conjunction with the Road Safety Authority (RSA). This may take a little time to complete as it involves a formal bilateral agreement and the introduction of legislation, both here and in the UK.
While the exchange agreement is not part of the Brexit negotiations, it cannot be put in place until after the UK leaves the European Union.
196. Deputy Brian Leddin asked the Minister for Transport if older defined benefit pension schemes operated by the Irish Aviation Authority require extra funding from air traffic control user costs to ensure the sustainability of such schemes; and if he will make a statement on the matter. [40423/20]
View answerThe sustainability of IAA pension schemes is a matter, in the first instance, for the Company and the pension scheme trustees, who are required under law to comply with financial planning rules set by the Pensions Board.
The IAA is a regulated State company, and a large portion of its income derives from charges applied for air traffic control services which is provides in Irish controlled airspace. These charges are set at EU level, in accordance with an economic regulatory process administered by the EU Commission. In setting the charges, a whole range of costs and service level issues are considered and subject to detailed analysis, including staffing costs and pensions costs.
198. Deputy Sean Sherlock asked the Minister for Transport if there are new sponsors for the public bike scheme outside of Dublin. [40425/20]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to cycling and public transport infrastructure. The management of the public bike schemes is a matter for the National Transport Authority (NTA), which works closely with the relevant local authorities.
Noting the NTA's responsibilities in the matter, I have referred your question to the NTA for a more detailed reply . Please advise my private office if you do not receive a reply within 10 working days
199. Deputy Darren O'Rourke asked the Minister for Transport the membership of the taxi advisory council; the number of vacancies at present; the method and expected timeline by which they will be filled; and if he will make a statement on the matter. [40437/20]
View answerThe Advisory Committee on Small Public Service Vehicles, sometimes known as the Taxi Advisory Committee, has a statutory duty to advise the Minister and the National Transport Authority (NTA) on issues relevant to small public service vehicles (SPSVs) and their drivers. There are currently five vacancies on the Advisory Committee some of which, as the Deputy may be aware, have been carried since a competition in 2019 organised by the Public Appointments Service failed to attract a sufficient number of qualified applicants.
The Advisory Committee has played an important role in providing advice on how best to support the SPSV industry through this difficult time. A real strength of the Advisory Committee is that it enjoys a broad membership with members representing driver interests, dispatch operators, passenger interests, and official stakeholders such as Local Government and An Garda Síochána. Its recommendations have led to measures to support the industry such as the waiver of SPSV licence renewal fees for 2021 and the NTA's current proposal to further extend vehicle age limits to the end of 2021. Given that valuable contribution I am eager to fill these vacancies to ensure that the Advisory Committee features a full complement of driver and other representatives.
I recently met with the Advisory Committee on SPSVs as well as with delegates from four taxi representative groups. In those meetings I stressed the importance of the Advisory Committee and the important role it plays, particularly in this critical time. I have also consulted the NTA and asked them to work with driver representatives and consider the best approach to filling these vacancies to ensure that the Advisory Committee features strong and effective representation for taxi drivers, limousine chauffeurs, and hackney drivers. This includes consideration of how best to ensure appropriate urban and rural driver representation. I look forward to finalising the approach to filling these vacancies on foot of the outcome of this work.
I attach here a table outlining the current membership of the Committee:
|
Name |
|
Mr. Cornelius O'Donohoe, chairperson |
|
Ms. Ann Campbell |
|
Ms. Joan Carthy |
|
Mr. James Cawley |
|
Mr. Noel Ebbs |
|
Mr. Kevin Finn |
|
Mr. Peter Fleming |
|
Mr. Alan Fox |
|
Ms. Mary Henchy |
|
Mr. John Murphy |
|
Superintendent Thomas Murphy |
|
Mr. James O'Brien |
|
Mr. Al Ryan |
200. Deputy Michael Healy-Rae asked the Minister for Transport his views on a matter (details supplied) regarding a UK haulage licence; and if he will make a statement on the matter. [40449/20]
View answerThe question appears to relate to a Transport Manager Certificate of Professional Competence, which is a qualification as opposed to a licence.
EU legislation sets out a number of requirements to be satisfied in order to hold a road transport operator licence, one of which is professional competence. To fulfil this requirement, every road transport undertaking in Ireland (or in any other EU Member State) must have a nominated Transport Manager who resides in the EU to effectively and continuously manage its transport activities. The Transport Manager must hold a Certificate of Professional Competence (CPC), in either Road Haulage or Road Passenger Transport depending on the nature of the operator's business. This certificate must be issued by an EU Member State and is ordinarily obtained by passing a written examination.
As highlighted by the European Commission in 2018, and more recently in July of this year, after the end of the Brexit transition period on 31 December, Transport Manager CPCs issued by an authority of the United Kingdom or a body authorised by the United Kingdom will no longer be valid in the EU.
As part of the Government's Brexit preparations, my Department carried out a review and identified approximately 200 individuals with a UK-issued Transport Manager CPC who are currently nominated as Transport Manager for Irish road transport operators. The Department recently wrote to these Transport Managers and the relevant operators to ensure that they are aware of the position as outlined by the European Commission.
My Department has liaised with the European Commission on this matter and has received clarification that a corresponding Irish Transport Management CPC may be issued to those UK-qualified individuals working for Irish operators, before the end of the Brexit transition period. This means that these Transport Managers will not now be required to undertake an Irish examination in order to continue to work as Transport Manager for an Irish or other EU operator.
In view of this clarification, my Department has established arrangements with the Chartered Institute of Logistics and Transport (CILT) for the application process to obtain a corresponding Irish Transport Management CPC. CILT is the body that issues Transport Management CPCs in Ireland on behalf of the Department of Transport. A further communication has now issued to affected Transport Managers to outline what needs to be done in order to obtain an Irish Transport Manager CPC.
It is important to note that applications must be submitted to CILT by 31 December 2020, as after that date it will not be possible to obtain an Irish Transport Management CPC on the basis of holding the UK equivalent certificate. The Department has emphasised this to affected Transport Managers and has urged them to contact CILT as soon as possible.
No fee will apply in this case for obtaining an Irish Transport Management CPC.
201. Deputy Cian O'Callaghan asked the Minister for Finance the list of projects funded by the Ireland Strategic Investment Fund and a company (details supplied); and if he will make a statement on the matter. [39557/20]
View answerThe Ireland Strategic Investment Fund (ISIF) has informed me that many of the questions raised by the Deputy are commercial matters relating to Activate Capital, therefore it is not appropriate for me to comment on them as Minister for Finance.
However, I am happy to say that the ISIF has committed €450m to Activate Capital, a senior lending platform which funds residential development projects in Ireland.
Since inception, Activate funding has supported the completion of 1,320 new homes.
I am further informed that Activate currently has 23 sites in production, all sites funded to date have the capacity to deliver over 14,500 units.
Since 2019, Activate Capital has broadened out its funding base with the addition of a large European pension group in October 2019 and a US investment fund in November 2020, alongside the existing investor base of ISIF and KKR.
202. Deputy Pádraig O'Sullivan asked the Minister for Finance if a business whose business activity is not carried out at its business premises will be eligible to receive the Covid restrictions support scheme; and if he will make a statement on the matter. [39691/20]
View answer213. Deputy Cormac Devlin asked the Minister for Finance the reason the Covid restrictions support scheme omits the business event industry; and if he will make a statement on the matter. [39807/20]
View answer214. Deputy Cormac Devlin asked the Minister for Finance the reason the Covid restrictions support scheme omits the Irish circus industry; and if he will make a statement on the matter. [39814/20]
View answer216. Deputy Cormac Devlin asked the Minister for Finance if his attention has been drawn to the case of a company (details supplied); and if he will make a statement on the matter. [39832/20]
View answer238. Deputy Pádraig O'Sullivan asked the Minister for Finance the number of businesses in County Cork that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [40391/20]
View answerI propose to take Questions Nos. 202, 213, 214, 216 and 238 together.
The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in Finance Bill 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website:
(www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf).
The support is available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.
The CRSS applies to businesses carrying on trading activities from a business premises located in a region subject to restrictions, which requires the business to prohibit or considerably restrict customers from accessing their business premises and as a result, is operating at less than 25% of turnover in 2019.
Where restrictions are eased and a business is no longer required to prohibit or considerably restrict customers from accessing their business premises, then they no longer qualify for CRSS.
Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as an events company or a circus, that business will not meet the eligibility criteria.
The CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Businesses who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS) and the range of measures announced as part of Budget 2021 to support particular sectors including Tourism and live entertainment. They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.
Deputies will be aware that the Finance Bill is currently progressing through the Houses of the Oireachtas and I have no plans to extend eligibility of the scheme.
Revenue is publishing regular statistical updates on the operation of the Covid Restrictions Support Scheme (CRSS), which are available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx.
These statistics include, among other items, the number of premises for which a CRSS payment has been claimed to date by county. The statistics will be updated every Thursday with the most recent data available and published at the same link.
203. Deputy Thomas Gould asked the Minister for Finance the current provisions in place to prevent the import of novel psychoactive substances. [40227/20]
View answerI am advised by Revenue that, under the Criminal Justice (Psychoactive Substances) Act 2010, it has the power to detain and seize psychoactive substances, even where that substance is not prohibited, if it has reasonable grounds for believing that it will not be used for legitimate purposes and is intended for human consumption.
The Criminal Justice (Psychoactive Substances) Act, 2010 is part of the Government's multi-pronged approach in targeting the importation and sale of unregulated psychoactive substances. Revenue continues to work closely with other agencies in the State including An Garda Síochána, the Department of Justice and Equality and the Health Products Regulatory Authority, in combatting the illegal drugs trade. Revenue also works closely with other international enforcement agencies in identifying any emerging trends in the importation of psychoactive substances.
Revenue's work against drugs crime is extensive and multifaceted and is kept under review to ensure that it addresses any emerging trends and that its contribution to dealing with this societal problem is optimised, in the overall framework of the Government’s National Drugs Strategy 2017-2025.
I am assured by Revenue that combating the importation of any prohibited or restricted goods into this jurisdiction is and will continue to be a priority.
204. Deputy Cian O'Callaghan asked the Minister for Finance if he will review section 127B of the Taxes Consolidation Act 1997 to ensure the fair taxation of the affected workers; and if he will make a statement on the matter. [39562/20]
View answerSection 127B of the Taxes Consolidation Act (TCA), 1997 provides that income arising to an individual from an employment exercised aboard an aircraft that is operated in international traffic shall be chargeable to tax in Ireland where the aircraft is operated by an enterprise that has its place of effective management in the State.
This charge to Irish tax applies to such workers in the same way that it applies to other Irish based employments: the income is chargeable to tax under Schedule E TCA, 1997, which is generally applied to every person having or exercising an office or employment in the State by virtue of Sections 19 and 112 TCA, 1997.
The provision was introduced in Finance (No.1) Act 2011 in order to address concerns in relation to the double non-taxation of air crew working for Irish carriers on international routes and, as the Deputy may be aware, this measure has been subject to on-going legal proceedings since 2018.
I would like to assure the Deputy that, as is the case with all tax measures, the aim is to ensure that the on-going effectiveness and appropriateness of this provision is considered on a regular basis, most recently in detail as part of Budget 2019. I remain satisfied that the legislation and its operation are in accordance with international tax principles and that it ensures the effective and fair taxation of workers impacted.
205. Deputy Cian O'Callaghan asked the Minister for Finance the estimated amount owed to the State by tax head for the liquidation of a company (details supplied); and the amount that is expected to be recovered. [39571/20]
View answerThe Deputy will be aware that under Section 851A of the Taxes Consolidation Act 1997, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.
Therefore, I am unable to provide the data requested.
206. Deputy Pearse Doherty asked the Minister for Finance the remedies available for complainants that issue a complaint to the Financial Services and Pensions Ombudsman, FSPO, regarding a joint account in the name of more than one person, in which the FSPO complaint form requires the signature of both account holders, but the complainant cannot secure the signature of the other account holder; and if he will make a statement on the matter. [39619/20]
View answerFirstly, I must point out that the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of his statutory functions. I have no role in the day to day workings of the office or in the decisions which he takes.
I am advised that where a complaint is made to the FSPO concerning a joint account or a joint policy, the FSPO must recognise that all parties to the account or policy have rights, entitlements and potential liabilities arising in relation to such an account or policy, and accordingly certain data protection issues arise. Whether the complaint is settled by way of agreement between the parties, using the confidential Dispute Resolution Services of the FSPO, or is the subject of a formal investigation by the FSPO, leading to a legally binding decision, the rights and obligations of all joint account holders or joint policyholders are thereby affected. All owners of the account or policy must therefore be agreeable to the investigation of the complaint by the FSPO, and their signature provides evidence of their agreement.
If a complainant indicates a difficulty in securing the signature of another party to an account or policy, the FSPO reviews the individual circumstances to form an understanding as to the reason for the difficulty, and where possible offers guidance as appropriate, as to what options may be available. The FSPO fully recognises the difficulty for complainants who cannot obtain the agreement of another party to the investigation of a complaint. The FSPO must however respect the rights and entitlements of all parties to an account or policy.
207. Deputy Sean Sherlock asked the Minister for Finance if consideration will be given to a matter (details supplied). [39621/20]
View answerI am informed by Revenue that for inheritance tax purposes, the relationship between the deceased person (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which inheritance tax does not arise. The Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, step-child and certain foster children) of the disponer.
A foster child is treated as a child of the disponer and can avail of the Group A threshold in the following circumstances:
- in respect of an inheritance from a foster parent with whom he or she has lived, and who has cared for and maintained the child at his or her own expense, for a cumulative period of at least 5 years before the child’s 18th birthday, or
- in respect of an inheritance from a foster parent where, prior to the inheritance, the child had been placed in the care of the foster parent under the Child Care (Placement of Children in Foster Care) Regulations 1995, or the Child Care (Placement of Children with Relatives) Regulations 1995.
Therefore, the current position is that certain children in either informal long-term foster care arrangements or formal foster care arrangements can avail of the Group A tax-free threshold on inheritances from a foster parent.
Based on the information supplied by the Deputy, the foster children in this case have been placed in the care of their foster parents by the Child and Family Agency in a formal foster arrangement under the Child Care (Placement of Children in Foster Care) Regulations 1995. If this is the case, these foster children can avail of the Group A threshold in respect of any inheritances that they receive from their foster parents in the same way as the natural children of those foster parents.
There appears to be a misunderstanding in the information supplied that foster children in formal foster care arrangements need to be maintained at the foster parent’s own expense. This is not the case. This condition only applies in respect of informal foster arrangements. I have been informed by Revenue that it is satisfied that the material published on its website is clear and accurate in this regard.
208. Deputy Ged Nash asked the Minister for Finance if fee-paying third level students and their families in cases of more than one third level student per family will receive the full €250 reduction or credit note per student as part of the one-off Covid-19 payment scheme; if the net tax reduction will be less in certain cases (details supplied); and if he will make a statement on the matter. [39624/20]
View answerAs the Deputy will appreciate, the operation of support measures for third level students is a matter for the Minister for Further and Higher Education, Research, Innovation and Science.
Generally speaking, all payments to individuals are taxable in the hands of the recipient unless specifically exempted. However, the basis on which the payment is made is a determining factor in the potential tax treatment of same.
Section 192F of the Taxes Consolidation Act 1997 provides an exemption for payments made by an awarding authority to, or in respect of, a student in accordance with a scheme or scheme of grants made by the Minister under the Student Support Act 2011. Any payments made in accordance with that section, such as a top-up to SUSI payments, should fall within the exemption under s192F.
I am advised by Revenue that in the case of a payment which is not made in accordance with s. 192F, it would be taxable. Such payments may include a once-off credit provided by relevant institutions to students which is available for use against institutional services, such as registration fees, or in the case of a direct payment to students, where students have been unable to utilise their “once-off credit” with the institution.
In the case of a refund, tax relief is available for tuition fees paid for full time students, subject to a single disregard amount of €3,000 per family. Revenue advise me that, in the circumstances mentioned by the Deputy, if an amount is refunded against the student contribution towards tuition fees, it may result in the net tax deduction being less in certain circumstances.
209. Deputy Seán Canney asked the Minister for Finance if he plans to lower the threshold on tax free sales by non-EU tourists; and if so, the proposed lowest threshold; and if he will make a statement on the matter. [39668/20]
View answerThe Retail Export Scheme enables visitors that are resident outside the EU benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. Under existing rules, when the UK becomes a third country, visitors from Britain will be able to avail of the scheme. No minimum threshold currently applies in respect of expenditure on which VAT relief may be claimed.
The Brexit Bill as published provides that the value of qualifying goods must exceed €175 in order to be eligible for a refund under the scheme. This change is fully compatible with EU law and is in line with the EU VAT Directive. The Bill also introduces a requirement of proof of importation of the goods into the UK and the associated proof of payment, where applicable, of relevant UK VAT and duties, for the goods purchased under the scheme in order to qualify for a refund.
In recognition of the difficulties facing retailers, especially businesses in the tourism sector, I introduced an amendment at committee stage to reduce the threshold to €75. This reduction retains protections for the exchequer while also acknowledging the potential impact that not making this change would have on retailers across the country at this difficult time.
210. Deputy Paul Murphy asked the Minister for Finance if the funding students receive from the student assistance fund will be regarded as taxable income for those students who are not eligible or in receipt of a SUSI grant; and if so, if he will consider exempting all payments from the student assistance fund from being regarded as taxable income. [39685/20]
View answerAs the Deputy will appreciate, the operation of support measures for third level students is a matter for the Minister for Further and Higher Education, Research, Innovation and Science. However, I understand that the Deputy's question refers to the Student Assistance Fund which, through the HEA and individual institutions, provides financial support to full or part-time students who are experiencing financial difficulties while attending college. I am advised that payments from the fund average of the order of €500 per recipient per year. Payments may be made from the fund regardless of whether a recipient is also in receipt of a SUSI payment.
I have been advised by Revenue that, generally, all payments to individuals are taxable in the hands of the recipient unless specifically exempted. There is no special exemption for payments made through the Student Assistance Fund. However, bearing in mind the nature of such hardship payments, the extent to which taxation may arise is likely to be minimal, if at all.
211. Deputy Pearse Doherty asked the Minister for Finance the amount of corporation tax paid by a company (details supplied) on its profits from the sale of loans previously purchased from a bank in 2018; the manner in which the company avoided tax liability through debt transactions; and if he will make a statement on the matter. [39777/20]
View answerI would like to advise the Deputy that I am not in a position to comment on the activities of individual taxpayers. The examination of accounts and tax returns submitted by taxpayers is a matter for Revenue and, in monitoring tax compliance, Revenue can scrutinise returns received to ensure they comply with legislative provisions.
While I cannot comment on a specific taxpayer, I can give the following overview of Section 110 of the Taxes Consolidation Act 1997 as it relates to the securitisation of mortgages.
Securitisation allows banks to raise capital and to share risk and, by providing a repackaging and resale market for corporate debt, it lowers the cost of debt financing. It is accepted that having the option for more diversified sources of financing is good for investment and business. It is also important for financial stability in the economy, as the ability to securitise loan books plays an important role in allowing banks to meet their capital requirement obligations and to continue lending to businesses and individuals.
The importance of securitisation has been recognised by the European Commission through their work on Capital Markets Union, one of the aims of which is to seek to build a sustainable securitisation regime across the European Union.
Section 110 sets out a regime for the taxation of special purpose companies. The tax provisions are intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes. The section 110 regime enables noteholders to invest through one structured vehicle without giving rise to an additional layer of tax as compared to a direct investment in the underlying assets. As such, having regard only to the taxation of the company, and not also to the taxation of its noteholders, gives only a partial picture.
The regime is subject to a number of anti-avoidance provisions designed to ensure that a deduction / no inclusion outcome does not arise. For example, Finance Act 2011 restricted the ability of a section 110 company to take a tax deduction for interest payments to connected persons in respect of the “profit participating note” (PPN). In general terms, this means that a section 110 company cannot take a tax deduction for interest paid to a connected party unless that connected party is taxable on the interest. More recently, in Finance Act 2019, I brought forward amendments to strengthen this anti-avoidance rule to ensure that it is effective and operates as intended. The focus of the 2019 amendment was to ensure that the anti-avoidance rules apply to all connected parties.
Concerns with regard to investments in financial assets backed by Irish property, such as mortgage loans, were addressed in Finance Act 2016. The changes restricted the ability of a section 110 company to claim a deduction for profit-participating interest to any noteholder (be it a connected party or third party) unless it is liable to tax on receipt in an EU Member State. An exception is allowed for bona-fide securitisations carried out in line with the Capital Requirement Regulation of 2013 on prudential requirements for credit institutions and investment firms (CRR). However, I would note that these Finance Act 2016 restrictions are layered on top of the Finance Act 2011 provisions. This means in that, even in the case of a CRR securitisation, a deduction is not available on PPN interest paid to a connected party unless it is subject to tax on receipt.
Finance Act 2019 also introduced anti-hybrid rules which apply to all corporate taxpayers in Ireland with effect from 1 January 2020. While the anti-hybrid rules introduced a general rule to prevent deduction / no inclusion mismatch outcomes arising due to hybridity, they also include more stringent rules to deal with those mismatch outcomes which arise in relation to hybrid financial instruments. The anti-hybrid rules require that a deduction is denied in situations where such a mismatch outcome would otherwise arise. These anti-hybrid rules apply to section 110 companies in addition to the specific anti-avoidance rules contained within section 110.
I am aware that there are competing concerns in this area – on the one hand, ongoing concerns regarding loan-book sales and appropriate levels of taxation, and on the other hand a recognition that bona-fide securitisation is an essential support to both consumer lending and bank capital requirements. My officials, together with officials in Revenue, therefore continue to monitor the sector on an ongoing basis, with a view to taking action should it be deemed necessary.
