Written Answers Nos. 483-507
483. Deputy Bríd Smith asked the Minister for Finance the number of persons who have filed domicile levy returns; the amount collected since commencement to date for which figures are available; and if he will make a statement on the matter. [15187/21]
View answer496. Deputy Richard Boyd Barrett asked the Minister for Finance the number of persons who have filed domicile levy returns; the amount collected since commencement to the present date for which figures are available; and if he will make a statement on the matter. [15491/21]
View answerI propose to take Questions Nos. 483 and 496 together.
The Domicile Levy was introduced in the Finance Act 2010 to ensure that Irish-domiciled individuals who meet certain criteria make a contribution to the Exchequer, irrespective of where they are resident for tax purposes. The purpose of the levy is to ensure that individuals with substantial income and assets located in the State make some sort of contribution to the exchequer.
The domicile levy applies to Irish domiciled individuals whose worldwide income exceeds €1m, whose Irish property is greater in value than €5m and whose income tax liability in a year is less than €200,000. The levy is payable on a self-assessment basis on or before 31 October in the year following the valuation date. For example, the due date in respect of 2019 was 31 October 2020. The valuation date is 31 December each year.
I am informed by Revenue that the table below sets out the number of persons who have filed Domicile Levy returns and the amount collected since commencement. Returns for 2020 are not due until 31 October 2021.
|
Year |
No of Persons |
Amount Collected (€m) |
|
2010 |
36 |
€3.74 |
|
2011 |
35 |
€3.89 |
|
2012 |
28 |
€2.99 |
|
2013 |
23 |
€2.25 |
|
2014 |
14 |
€2.02 |
|
2015 |
16 |
€2.43 |
|
2016 |
15 |
€1.84 |
|
2017 |
12 |
€1.41 |
|
2018/2019 |
17 |
€3.13 |
|
TOTAL |
196 |
€23.70 |
485. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he will convene a forum meeting with the banks and financial institutions in co-operation with the Minister for Housing, Local Government and Heritage to request that they immediately play a partnership role with the State and affected families in the financial challenge of making homes safe across counties Donegal and Mayo under the defective concrete blocks grant scheme. [15200/21]
View answerI appreciate this is a very difficult issue for households which have been affected by defective concrete blocks. I note my colleague the Minister for Housing, Local Government and Heritage, who has responsibility for policy and administration of the State scheme to provide financial assistance to those private households impacted by defective blocks, has met and discussed the implementation of the redress scheme with the Donegal Action Mica Group and that they expressed a wish that mortgage providers should make a contribution to the part of the redress costs that will not be met by the State grant.
While oversight of the banking sector falls within my remit, including matters relating to the overall policy for the financial sector, the supervisory framework for regulated financial service providers and the overall consumer protection framework for Central Bank regulated entities, I do not have any role in relation to the policies and individual decisions (either of a contractual or voluntary nature) of Central Bank regulated entities. Furthermore, in relation to those banks in which the State has a shareholding interest, this commercial independence is specifically provided for in a legally binding "Relationship Framework" document which states that each bank continues to be a separate economic unit with independent powers of decision making and that it is the respective boards and management of each bank that determines its commercial policies and conducts its day-to-day operations. I am, therefore, precluded as Minister for Finance from any involvement in the commercial and day-to-day decisions of such a bank and accordingly it will not be possible or appropriate for me to intervene with individual banks on this particular matter. However, as the relevant Minister, it is open to the Minister for Housing, Local Government and Heritage to engage with any person or entity that he considers to be necessary or desirable in relation to the implementation of the scheme to support impacted households.
486. Deputy Catherine Murphy asked the Minister for Finance his plans to engage with the Revenue Commissioners in respect of liabilities due by persons in receipt of the temporary wage subsidy scheme and or the pandemic unemployment payment; his plans to reform the way in which the bills are to be settled in view of the fact that employees over the course of the pandemic worked through exceptional circumstances; and if he has considered enhancing tax credits for those with a due liability over a more protracted timeframe than offered at present. [15292/21]
View answerRevenue is independent in the exercise of its functions and I have no plans to engage with Revenue as proposed in the Deputy's question.
Payments made under the Temporary Wage Subsidy Scheme (TWSS) and the Pandemic Unemployment Payment (PUP) are regarded as income supports and share the characteristics of income. As such the TWSS is liable to both income tax and Universal Social Charge (USC) while the PUP is liable to income tax only, reflecting the standard approach to the taxation of social welfare type payments.
For 2020, both the TWSS and PUP were taxed at year end rather than in the normal ‘real-time’ manner due to the urgent requirement to get payments to people as quickly as possible. The TWSS was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020, which re-established the normal requirement for employers to operate ‘real-time’ PAYE/PRSI and USC deductions. The continuation of the PUP into 2021 has also re-established the practice of operating PAYE (income tax only) in ‘real-time’ for that scheme. However, people receiving PUP payments in 2021 will only pay tax when they return to work.
I am advised by Revenue that any income tax or Universal Social Charge (USC) liabilities arising in respect of the TWSS or PUP in 2020 need not be paid as a single sum and can instead be paid, interest free, over four years from 1 January 2022, by reducing the relevant employee’s tax credits. This arrangement was put in place to ensure any financial hardship in respect of these liabilities are minimised to the greatest extent possible. This situation does not arise in 2021 because of the re-establishment of the normal ‘real-time’ deduction arrangements.
Revenue has also assured me that any persons still experiencing financial difficulties arising from the taxing obligations in respect of the TWSS and PUP can make direct contact to discuss their specific circumstances and every effort will be made to assist them.
Finally, in relation to the proposal related to enhanced tax credits, questions of equity arise. Other income earners in receipt of comparable “normal wages” are taxable on those wages and, in the interest of equity, the pandemic income support payments are subject to income tax. I have no plans to change that.
487. Deputy Michael Healy-Rae asked the Minister for Finance if a matter will be addressed in relation to investments by persons in a company (details supplied); and if he will make a statement on the matter. [15296/21]
View answerI am aware of the matter that the Deputy has raised, which my officials are monitoring.
The Central Bank of Ireland is the independent regulator of financial services providers and financial markets in Ireland. I am informed by the Central Bank that it cannot comment on investigations, including confirming whether an issue or firm is the subject of an investigation.
There is a strong legislative framework in place to protect consumers of financial services in Ireland. This includes the following:
The Financial Services and Pensions Ombudsman (FSPO) is the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. If a consumer wishes to pursue a complaint in relation to a regulated financial service provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the FSPO. When the FSPO receives a complaint, it is assessed to determine whether the FSPO can proceed to investigate the complaint. The FSPO has the power to direct a financial service provider to pay compensation of up to €500,000 to a complainant. He can also direct that a financial service provider rectify the conduct that is the subject of the complaint. There is no limit to the value of rectification he can direct.
The Investor Compensation Scheme deals with compensation claims by eligible investors. Claims can only be accepted from eligible investors when a member firm of the Investor Compensation Company Limited fails and cannot return investment instruments or client money in accordance with legal and contractual obligations. It is important for investors to understand that the Investor Compensation Scheme does not pay compensation in relation to any investment products which fall outside the definition of investment instrument, nor does it pay compensation for any losses incurred due to receiving bad investment advice, if client investments are poorly managed or if the investment performed poorly due to market conditions or other economic forces.
In terms of powers available to the Central Bank, the Consumer Protection Code applies to regulated activities of regulated entities operating in the State.
The general principles of the Consumer Protection Code note that a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market, act with due skill, care and diligence in the best interests of its customers, and does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service.
Regulated firms may also sell unregulated products, i.e., products which fall outside of the relevant legislation and thus not under the Central Bank's regulatory framwork. However, in such a situation the Central Bank's Consumer Protection Code, specifically articles 4.8 and 4.9, requires a regulated entity to distinguish between their regulated and unregulated services that is provided to a client.
Further details related to the Consumer Protection Code detailing the rules and principles that all regulated financial services firms must follow when providing financial products and services to consumers can be accessed at: https://www.centralbank.ie/regulation/industry-market-sectors/brokers-retail-intermediaries/guidance
488. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter regarding the temporary wage subsidy scheme (details supplied); and if he will make a statement on the matter. [15309/21]
View answerThe Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020. It was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and was an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Over 66,500 employers were supported through the TWSS in respect of more than 664,000 employees at a cost of €2.9bn. The scheme operated until 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
Payments made under the TWSS were regarded as income supports and therefore share the characteristics of income. It is important to note that other income earners in receipt of comparable ‘normal wages’ are taxable on those wages and in the interest of equity, payments under the TWSS are subject to income tax and Universal Social Charge (USC). While income tax and USC on most income is deducted in real-time as and when the person is paid, the TWSS payments were not taxed until year end due to the Government’s overarching priority of ensuring payments were made to employers and employees impacted by the COVID-19 pandemic as quickly as possible.
Where a TWSS or Pandemic Unemployment Payment (PUP) related liability arose at the end of 2020, taxpayers have the option to pay the amount owed on an interest free basis over four years from 1 January 2022 through a reduction of tax credits, thereby reducing the potential for financial hardship to the greatest extent possible. This arrangement is not required for 2021 as both PUP and EWSS payments are taxed in the normal ‘real-time’ manner.
Revenue has advised me that while it is not possible from the information provided to comment further on the case referenced by the Deputy, the final tax liability is dependent on the couple’s joint income for the year (2020), including the total TWSS received.
489. Deputy Kieran O'Donnell asked the Minister for Finance if matters raised in correspondence by a person (details supplied) in relation to small businesses will receive a response; and if he will make a statement on the matter. [15347/21]
View answerI am aware of recent representations received by my office and the Office of the Revenue Commissioners from the person referred to, and am advised that the most recent reply issued to the person from Revenue on 26 February.
In that reply, the person was assured that Revenue is very conscious of the challenges facing businesses and tax practitioners arising from the COVID-19 pandemic and has implemented some key initiatives to support taxpayers during this very difficult time. These initiatives include, among others, the administration of the wage subsidy and other support schemes (TWSS, EWSS and CRSS), the Debt Warehousing Scheme and the suspension of debt collection activity.
Regarding tax filing obligations and the imposition of late filing surcharges, the person was informed of the flexibility allowed for recent annual filing dates, and that this area remains under review.
Finally, the person was informed that Revenue is prepared to take a reasonable and pragmatic approach in exceptional circumstances where it can be demonstrated that there is genuine difficulty in meeting a tax filing deadline due to COVID-19 and was provided with relevant contact details.
490. Deputy Noel Grealish asked the Minister for Finance his plans to change inheritance tax laws for unmarried long-term cohabiting couples who are currently considered as strangers to give them the same tax status as married couples and those in civil partnerships; and if he will make a statement on the matter. [15386/21]
View answerFor the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance and the person who receives the gift or inheritance determines the lifetime tax-free threshold (the Group Threshold) below which gift or inheritance tax does not arise.
It is a long-held principle of Capital Acquisitions Tax that transfers of assets between spouses are exempt. The spousal exemption from inheritance and gift tax was extended to civil partners from 1 January 2011. A key difference between married couples/civil partners and cohabitants is that the former have a verifiable official confirmation of their status and from a practical perspective, I am advised by Revenue that it would be very difficult to administer a tax regime for cohabitants which would be the same as that for married couples or civil partners.
As you are aware, where a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for tax purposes as a separate and unconnected individual. Therefore, as you will appreciate, any change in the tax treatment of cohabiting couples in relation to Capital Acquisitions Tax can only be addressed in the broader context of the wider tax system, and future social and legal policy development in relation to such couples.
You should note that there are a number of valuable reliefs and exemptions to Capital Acquisitions Tax, eligibility which are not dependent on the relationship between the disponer and the beneficiary. These include the Dwelling House Exemption, whereby the principal private residence, generally the most substantial asset owned by an individual, can be bequeathed free from inheritance tax. This valuable exemption allows property to be inherited tax-free irrespective of its value where the beneficiary is already living in the house, subject to certain conditions.
In addition, agricultural property and relevant business property of a single individual can also be bequeathed with a significant 90% reduction in their taxable values under the Agricultural Relief and Business Relief schemes where the relevant conditions are met.
In conclusion, the difference in the tax treatment of co-habiting couples is not confined to Capital Acquisitions Tax, and is also a feature of other tax heads, such as income tax. Therefore, any change in the tax treatment of cohabiting couples in respect of inheritance tax could only be addressed in the broader context of the tax system and future social and legal policy development, bearing in mind the current constitutional requirement to protect the institution of marriage.
492. Deputy Seán Haughey asked the Minister for Finance if he will mandate employers to pay the income tax owed by employees in respect of the temporary wage subsidy scheme and employment wage subsidy scheme given that employees are obliged to pay this income tax out of their net pay or have their credits reduced meaning that their net pay will be reduced in future years; and if he will make a statement on the matter. [15469/21]
View answerThe Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020. It was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and was an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Over 66,500 employers were supported through the TWSS in respect of more than 664,000 employees at a cost of €2.9bn. The scheme operated until 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
It will be recalled that in order to maximise the financial support provided to recipients, tax on TWSS payments was not collected in real-time through the PAYE system and that instead liability for the 2020 tax year will be determined at the end of the year by Revenue through the regular “end year review” process. Also, Revenue has confirmed that it will facilitate employers who wish to pay the tax liabilities of their employees where such income tax and USC liabilities arise from the TWSS.
Should an employer wish to pay these liabilities on behalf of their employees, on an exceptional, once off basis and subject to certain conditions, Revenue will not apply the Benefit-in- Kind rules that would usually apply where employers make payments of this nature on behalf of their employees.
The consequence for the employer is that they will not be entitled to the usual tax deduction for such payments made on behalf of their employees in calculating the tax liability of their business as the payments would not be regarded as wholly and exclusively incurred for the purposes of the employer’s trade or profession.
To prevent any abuse of this arrangement, while still allowing the employer sufficient time to consider the option on behalf of their employees, this facility is limited to payments made by employers on behalf of their employees up to end June 2021.
I would encourage any employers who are in a position to discharge such liabilities on behalf of their workers to do so, but I also acknowledge that, as with the decision around whether to avail of the TWSS in the first place, the question of whether an employer pays the income tax owed by employees in respect of the TWSS is a matter between the employer and the relevant employees.
In this regard, it is recalled that an individual’s entitlements and rights in an employment context, the amount of wages that an employer may be legally obliged to pay employees in respect of hours worked as well as an employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic on the employer’s business are all matters that are outside the remit of the scheme.
The EWSS, which replaced the TWSS from 1 September 2020, re-established the the normal requirement to operate PAYE on all employee salaries, providing for the regular deduction and remittance of income tax, USC and employee PRSI.
493. Deputy Richard Boyd Barrett asked the Minister for Finance the details of payments made by NAMA to law and accountancy firms from 2018 to date; the amount received by each of the firms for each respective year; and if he will make a statement on the matter. [15487/21]
View answerI am advised by NAMA that they are currently compiling the information as requested by the Deputy. Unfortunately they were not in a position to finalise the information within the timeframe provided, therefore I will provide this information directly to the Deputy once it is received from NAMA.
494. Deputy Richard Boyd Barrett asked the Minister for Finance the details of payments made by the Central Bank to law and accountancy firms from 2018 to date; the amount received by each of the firms for each respective year; and if he will make a statement on the matter. [15488/21]
View answerDeputy, please see below the details of payments made by the Central Bank to accountancy and law firms for the years 2018, 2019 and 2020. The Bank has also provided figures for January and February of 2021, which are the latest details available.
In terms of accountancy fees, the details below capture all of the amounts incurred by the Central Bank in relation to costs posted to the consultancy and audit fees expense lines.
The information provided in respect of legal firms captures the total costs posted to the legal fees expense line of the Central Bank. The Bank has disclosed the total costs incurred with law firms per year, as to disclose by reference to specific firms could prejudice legal proceedings.
|
Accountancy Firms |
2018 |
2019 |
2020 |
January & February 2021 |
|
Accountancy Firms |
2018 |
2019 |
2020 |
January & February 2021 |
|
Grant Thornton |
€2,347,569 |
€109,586 |
€296,743 |
€17,496 |
|
Deloitte |
€409,406 |
€1,143,802 |
€189,375 |
€119,036 |
|
Mazars |
€411,481 |
€597,195 |
€653,732, |
€17,514 |
|
EY |
€1,303,213 |
€111,877 |
€7,617 |
€8,817 |
|
PWC |
€325,587 |
€160,690 |
€166,226 |
|
|
KPMG |
€162,719 |
€5,101 |
€24,600 |
€157,530 |
|
Grand Total |
€4,959,974 |
€2,128,250 |
€1,338,293 |
€320,393 |
|
Legal Firms |
2018 |
2019 |
2020 |
January & February 2021 |
|
Total Legal Fees |
€6,610,350 |
€5,294,808 |
€2,717,848 |
€421,488 |
495. Deputy Richard Boyd Barrett asked the Minister for Finance the details of all pro bono work undertaken by accountancy firms for his Department from 2016 to date by the type of work, the number of hours spent and the name of the accountancy firms involved; and if he will make a statement on the matter. [15489/21]
View answerI can advise the Deputy that no pro-bono work was undertaken by accountancy firms within the Department of Finance for the period 2016 to date.
497. Deputy Richard Boyd Barrett asked the Minister for Finance the details of payments by the Revenue Commissioners to law and accountancy firms from 2018 to date; the amount received by each of the firms in each respective year; and if he will make a statement on the matter. [15486/21]
View answerI have answered this question with the assumption that it refers to consultancy payments paid by the Revenue Commissioners to law and accountancy firms.
I am advised by Revenue that €35.37m was paid to providers of legal and accountancy services from January 2018 to February 2021, inclusive. A breakdown of these payments is set out in the table below.
499. Deputy Paul Donnelly asked the Minister for Finance if the CRSS will be made available for charity shops that are closed under level 5 restrictions and backdated for same. [15514/21]
View answerI am acutely aware of the difficulties that these necessary ongoing Covid-19 restrictions are putting on all businesses right across the country. I know that Charities and charity shops are also struggling during these restrictions. Individuals and businesses are making sacrifices in order to protect their communities.
With that in mind, I recently announced the new Small Business Assistance Scheme for COVID. This scheme is now open for applications through Local Authorities and will provide a €4,000 grant for businesses for the first quarter of this year. Closing date for Local Authorities to receive applications is 21st April, 2021. A decision on the second quarter of this year will be made in due course.
Charity shops may be eligible for this grant if the criteria for the scheme are applicable to them.
The Scheme is open to companies, self-employed, sole traders or partnerships, with a minimum turnover of €50,000 and are not owned and operated by a public body. The Scheme is open to firms that currently employ less than 250 and with current turnover of less than €25m.
Businesses down 75% or more in turnover among those expected to benefit the scheme. The scheme is available to businesses not eligible for CRSS, the Fáilte Ireland Business Continuity Scheme, or the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media’s Live Performance Support.
The business must operate from a building, or similar fixed physical structure on which business rates are payable (mobile premises, or premises which are not permanently fixed in place, do not meet the definition of business premises nor do premises on which no rates are payable).
The turnover of the business over the claim period is estimated to be no more than 25% of the average weekly turnover of the business in 2019; or the projected average weekly turnover of the business for 1 January to 31 March 2021, for businesses that commenced after 1 November 2020.
You should be aware that the Government also introduced a comprehensive package to help businesses and workers during the pandemic, including the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates.
I would urge business owners including charity shops to seek the supports outlined above if they have not already done so. I would also suggest that you should contact the Department of Rural and Community Development who have developed a scheme who the charity sector.
Full details of the wide range of COVID-19 schemes are available on my Department’s website at https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
I want to assure you that I and my colleagues across Government will continue to keep the range of measures under review.
500. Deputy David Cullinane asked the Minister for Finance further to Parliamentary Question No. 166 of 24 February 2021, the way in which an importer can prove the origin of a used car as EU, UK or a third country and that under the rules of origin for a UK originating vehicle that the value of non-originating material in the production of a car does not exceed 45% of the ex-works price of a car; if he is satisfied that this requirement can be reasonably met; and if he will make a statement on the matter. [15537/21]
View answerI am advised by Revenue that importers of cars from the UK into Ireland can claim a preferential tariff rate under the EU-UK Trade and Cooperation Agreement (TCA) where they can provide proof that the goods they are importing are of UK preferential origin as required by the Rules of Origin in the Agreement. The proof requirements are provided for under EU Customs legislation including the TCA and apply in all EU member states. As Customs is an EU competence, it is not possible for Ireland to alter these requirements.
The proofs required by Revenue include a ‘statement on origin’ from the UK exporter on an invoice or any other document that describes the car in sufficient detail to identify it. Importers requesting the issue of a ‘statement on origin’ by an exporter must satisfy themselves that the exporter will be able to provide supporting documents if requested by UK customs. Alternatively, a claim for a preferential tariff rate may be made on the basis of supporting documents, or records provided by the exporter or manufacturer which are in the importer’s possession. These documents proving the originating status of the car must be available for inspection by Revenue if requested. They must be retained for a period of 3 years from the date of importation.
Under the TCA rules of origin for a UK originating car that is not a hybrid or electric, the value of non-originating material in the production of a car must not exceed 45% of the ex-works price of a car. Alternative product-specific rules of origin apply for electrified and hybrid vehicles with both internal combustion engine and electric motor as motors for propulsion. For these cars, until 31 December 2023, the value of non-originating material used in the production of the car must not exceed 60% of the ex-works price of the car, and from 1 January 2024 until 31 December 2026, the value of non-originating material used in the production of the car must not exceed 55% of the ex-works price of the car.
I am further advised by Revenue that the proofs required for preferential origin in the TCA are the same as the proofs required in other trade agreements that the EU has entered into, and generally come from the exporter, via the car supplier or manufacturer. Where the supplier/manufacturer provides the exporter with the information necessary to determine the originating status of the car, the supplier must do so by means of a ‘supplier's declaration’. Where the information is not provided by the supplier, the exporter can supply other evidence or supporting documents coming from other sources insofar as they contain the necessary information. Such information can include a description of the originating and non-originating materials used in the production process and the value of the product as well as the value of all the non-originating and/or originating materials used in the production.
502. Deputy Ged Nash asked the Minister for Finance the status of the meeting between the Minister of State for financial services,credit unions and insurance and the chief executive officers of the main insurance companies; if the Minister of State plans to raise the issue of motor insurance rebates in view of the Covid-19 restrictions and the resulting reduction in motor claims costs for insurance companies; and if he will make a statement on the matter. [15701/21]
View answerWorking to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government. As such, it is included within the Programme for Government and the Action Plan for Insurance Reform, launched in December. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally.
I can assure the Deputy that both Minister of State Fleming and I have had extensive engagement with the main insurers and other key policy stakeholders throughout 2020 and that this will continue during 2021. As the Deputy will recall, in my meeting with Insurance Ireland in April 2020, I called on motor insurers to be pro-active and generous in relation to their customers during the COVID-19 crisis. In particular, I noted what was likely to be a significant reduction in claims for this period due to the travel restrictions that were in place at that time. This ultimately resulted in a number of insurers announcing a range of forbearance measures and motor insurance rebates for policyholders. In addition, insurers have agreed to further review the situation if extended COVID-19 restrictions on movement result in sustained lower road usage and claims frequency this year.
As part of a comprehensive engagement on the Government’s insurance reform agenda with a wide range of stakeholder interests, including Insurance Ireland, Minister of State Fleming held a series of meetings with the main Irish insurers in November and December 2020. He again raised the need for industry to respond to both the Government’s ongoing reforms and COVID-19 pandemic by lowering premiums, to continue to offer forbearance measures, and to expand their risk horizon in the market (such as providing more cover for younger drivers).
I note Insurance Ireland announced a continuance of forbearance measures on behalf of a number of its members in late January, including a number of measures directly targeting motor insurance policyholders. In the coming weeks Minister of State Fleming will again meet with the main insurers to discuss their response to the recently published Personal Injuries Guidelines. The insurance industry’s ongoing response to the COVID-19 pandemic, including the issue of motor insurance rebates, will also be included on the agenda for these meetings.
503. Deputy Marc MacSharry asked the Minister for Finance if he will consider extending the provisions of the help-to-buy incentive scheme beyond 31 December 2021 for first-time buyers especially for those who are self-building and have been unable to progress with their housing projects due to the Covid-19 level 5 restrictions affecting the construction sector; and if he will make a statement on the matter. [15741/21]
View answerThe Help to Buy (HTB) incentive was introduced in 2017. The measure is currently scheduled to expire on 31 December 2021.
HTB gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. An increase in the supply of new housing remains a priority aim of Government policy. The HTB scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties. It also assists first-time buyers in accumulating a deposit for a new home.
In order to help further meet these goals, I announced an enhancement to the existing scheme with effect from 23 July last for the remainder of 2020 as part of the July Stimulus Package. The legislation that gives effect to this is set out in the Financial Provisions (Covid-19) (No.2) Act 2020. The Finance Act 2020 further extended the period of application of the enhanced levels of support until 31 December 2021.
The question of the future of HTB support beyond its current expiry date is a matter that will be considered in due course in the context of Budget 2022 and the subsequent Finance Bill.
504. Deputy John McGuinness asked the Minister for Finance if the tax liability of a person (details supplied) will be re-examined immediately in view of the fact that the reduction in their income due to tax is causing hardship. [15759/21]
View answerI am advised by Revenue that the persons’ tax credits and rate band allocations have been reduced in 2021 to collect the tax due on their Department of Social Protection (DSP) Pandemic Unemployment Payments and Carer’s Income supports.
The mechanism to tax the PUP for 2021, in common with other DSP payments, including Carer’s Income and Jobseekers’ Benefit, is by reducing the recipient’s current year tax credits and rate bands. In taxing PUP payments in this manner, which is in accordance with the legislation, Revenue is ensuring, as far as possible, that people do not end up with a tax liability at the end of 2021 that will have to be paid in future years. The avoidance of such tax arrears to be paid in future years is particularly important in circumstances where taxpayers may already have an arrear in respect of 2020.
Revenue has confirmed that tax credits previously allocated to the assessable spouse’s employment are now allocated to his occupational pension to ensure the most effective benefit to him. Subject to the revised instruction from Revenue to the occupational pension provider (Revenue Payroll Notification) being implemented by the provider before it completes the March payroll run, the person will pay a reduced tax amount of approximately €203 for the month.
Once the person returns to work, he should immediately contact DSP and ensure his PUP payments are stopped. In turn, DSP will notify Revenue that the payment has ceased, and Revenue will then re-adjust his tax credits to reflect the fact that the payment has stopped. Revenue will also issue a revised instruction to his employer/pension provider to reflect the updated position and a revised Tax Credit Certificate will issue to him. Any delay in issuing the revised instruction to the employer will delay receipt of his full tax credit entitlements, so prompt notification of his return to work to the DSP is very important.
Finally, Revenue has also advised me that the person’s spouse may be entitled to claim the Home Carer’s Tax Credit for 2021 and for previous years if she meets the qualifying criteria, which is set out at link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/home-carer-credit/qualifying-for-home-carer-tax-credit.aspx. If the person’s spouse considers that she is eligible for the credit, she should complete a ‘Home Carer Tax Credit Claim’ form through Revenue’s myAccount service, which is available at link https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/documents/home-carers-credit-claim-form.pdf.
505. Deputy David Cullinane asked the Minister for Finance the total Covid-19-related spend in 2020 by his Department, agency and budget line item; and if he will make a statement on the matter. [15846/21]
View answerIn 2020, my Department had a total Covid-19 related expenditure of €480,102.44. This spend is broken down by line item in the table below.
|
Purpose of Expenditure |
Total Spend (incl VAT) |
|
Cleaning |
€11,317.61 |
|
Courier |
€15,667.56 |
|
Equipment |
€72,140.57 |
|
Personal Protective Equipment (PPE) |
€29,231.08 |
|
Sanitiser |
€18,852.20 |
|
ICT Expenditure to facilitate remote working |
€191,683.42 |
|
Economic research undertaken jointly with the Economic and Social Research Institute (ESRI) |
€141,210.00 |
There are 17 bodies under the aegis of my Department, of which 6 have confirmed that they did not incur any Covid-19 related expenditure in 2020. These are the Credit Union Advisory Committee, the Credit Union Restructuring Board, the Disabled Drivers Medical Board of Appeal, the Investor Compensation Company DAC, the Irish Fiscal Advisory Council and the Strategic Banking Corporation of Ireland.
It was not possible for 2 of the bodies, the National Asset Management Agency (NAMA) and the National Treasury Management Agency (NTMA), to respond to the information request in the time available and therefore I will provide the information in line with Standing Orders.
Details of the Covid-19 related expenditure incurred by the remaining 9 bodies under the aegis of my Department are set out in the attached table.
|
Body under aegis of Department of Finance |
Purpose of Expenditure |
Total Spend (incl VAT) |
|
Signage and touch free solutions |
€86,000 |
|
|
Cleaning, materials and sanitiser |
€290,000 |
|
|
Ergonomic equipment for remote working |
€45,000 |
|
|
Delivering remote working equipment |
€74,000 |
|
|
External IT and other contractor costs |
€793,000 |
|
|
Peripherals and monitors for remote working |
€437,000 |
|
|
Additional data charges for remote working |
€85,000 |
|
|
Additional remote working licenses |
€68,000 |
|
|
Additional Webex costs |
€32,000 |
|
|
Covid awareness video |
€9,000 |
|
|
Computer Equipment |
€122,000 |
|
|
Central Bank |
Premises alterations |
€17,000 |
|
Advertising |
€13,448.42 |
|
|
Credit Review Office |
Social media |
€1,959.27 |
|
IT equipment |
€74,713.90 |
|
|
Home working equipment |
€3,785.94 |
|
|
Ergonomics training |
€2,157.91 |
|
|
Financial Services and Pensions Ombudsman |
Telecoms |
€1,886.82 |
|
Legal costs associated with the establishment of the Momentum Fund |
€39,198.22 |
|
|
Home Building Finance Ireland |
Momentum Fund: Report by third party accountancy firm on ‘Senior Bank Development Finance Terms’ |
€6,125.40 |
|
Facilities |
€15,680.14 |
|
|
Irish Bank Resolution Corporation |
ICT |
€24,211.84 |
|
Hand-sanitiser and disposable masks |
€48.23 |
|
|
Irish Financial Services Appeals Tribunal |
Audio-visual equipment for the purposes of conducting remote hearings |
€3,469.88 |
|
ICT |
€52,277.97 |
|
|
Incidentals (incl Personal Protective Equipment, disinfectants & signage) |
€12,977.42 |
|
|
Couriers |
€4,972.79 |
|
|
Office of the Comptroller and Auditor General |
Deep cleaning |
€1,321.14 |
|
Personal Protective Equipment |
€1,822,969 |
|
|
Mobile phones |
€246,103 |
|
|
Cleaning costs (incl. specialised industrial cleaning) |
€53,000 |
|
|
Screens & sanitiser stations |
€40,000 |
|
|
Covid signage |
€21,732 |
|
|
Printing and distribution of printed goods |
€7,647 |
|
|
Covid related Travel and Subsistence |
€2,817 |
|
|
Office of the Revenue Commissioners |
ICT (mainly related to development of wage subsidy schemes) |
€2,903,858 |
|
Sanitisers, signage and masks |
€3,992 |
|
|
IT licences |
€1,332 |
|
|
Remote Polycom / Pexip Units |
€43,234 |
|
|
Tax Appeals Commission |
Perspex Screens |
€21,500 |
507. Deputy Emer Higgins asked the Minister for Finance the payment options available for persons to pay fines, charges or bills by his Department; and if there are plans to provide further online payment facilities. [15854/21]
View answerI am advised by Revenue that it provides a wide range of online payment facilities to support taxpayers in meeting their tax payment obligations. These payment options are available through the Revenue On-Line Service (ROS) and the MyAccount service on a 24/7 basis and are fully secure.
The available on-line options include ROS Debit Instruction (RDI), Single Debit Instruction (SDI), direct debit and debit/credit card facilities. For Local Property Tax (LPT), Revenue also provides deduction at source from salary, pension and certain Government payments as well as through approved third-party service providers, including An Post, Omnivend and Payzone.
Finally, while Revenue’s strong preference is to manage payments through its on-line channels, it will accept cheque or electronic file transfer payments on an exceptional basis where it is the most viable alternative for individual taxpayers.
