Written Answers Nos. 203-217
203. Deputy Bríd Smith asked the Minister for Finance the number of applications for refunds of dividend withholding tax connected to the operation of real estate investment trusts and any other corporate bodies to which this is applicable since 2013; the amounts involved by year in tabular form; and if he will make a statement on the matter. [27301/21]
View answerReal Estate Investment Trusts (REITs)
Finance Act 2013 introduced the regime for the operation of Real Estate Investment Trust companies (REITs) in Ireland and the applicable rules are set out in Part 25A, Taxes Consolidation Act 1997.
There are a number of criteria which companies must meet in order to avail of the REIT tax regime, including the requirement to be listed on the main market of an EU stock exchange, a debt cap and an income-to-financing costs ratio. Dividend Withholding Tax (DWT) provisions, at a rate of 25%, apply to distributions by REITS. The tax position of REIT investors is as follows:
- Irish resident REIT investors are required to pay tax, at their marginal rate, on any distributions they receive on a self-assessment basis, with a credit available for any DWT deducted.
- Certain investors, such as pension schemes or charities, may receive distributions gross, subject to completion of appropriate declarations.
- Foreign investors are subject to 25% DWT on distributions received from a REIT. However, non-resident investors who suffer DWT and who are resident in countries with which Ireland has a double tax agreement (DTA) may be able to reclaim some of the DWT if the relevant DTA permits.
The table below sets out the number and value of DWT refunds connected to the operation of REITs from 2015 to 2021 (year to date).
|
No. of refund applications |
Value € |
|
|
2015 |
26 |
€57,476 |
|
2016 |
93 |
€714,787 |
|
2017 |
311 |
€823,793 |
|
2018 |
387 |
€843,893 |
|
2019 |
527 |
€883,741 |
|
2020 |
911 |
€1,926,841 |
|
2021 |
447 |
€1,037,359 |
The rules relating to Irish Real Estate Funds (IREF) are set out in Chapter 1B of Part 27, Taxes Consolidation Act 1997, and were introduced by Finance Act 2016. An IREF is an investment fund, or a sub-fund, which derives 25% or more of its market value from assets acquiring their value directly or indirectly from real estate in the State.
As an investment undertaking, the profits of the IREF are not taxed within the fund, but instead are subject to tax in the hands of the investors. IREFs are subject to a 20% withholding tax on distributions to non-resident investors. Irish resident individuals/corporates are subject to investment undertakings tax. Certain categories of investors such as pension funds, life assurance companies and other collective investment undertakings are generally exempt from having IREF withholding tax applied provided the appropriate declarations are in place.
IREFs are required to declare and pay this withholding tax on an annual basis and the first returns of (IREF) taxable events were due in July 2018, in respect of 2017 (for IREFs with a 31 December year-end).
Investors can make a claim for a partial refund of IREF withholding tax if they are entitled to a lower rate of withholding tax under a DTA. The charge to Irish tax will be reduced to the DTA rate. The first applications for refunds of IREF withholding tax were made in 2019 and the table below sets out the number and value of such refunds from 2019 to 2021 (year to date).
|
No. of refund applications |
Value € |
|
|
2019 |
<10 |
€192,239 |
|
2020 |
39 |
€3,249,508 |
|
2021 |
<10 |
€2,521,413 |
208. Deputy Pearse Doherty asked the Minister for Finance the number of developments in which all or a portion of units in that development are subject to forward purchase PRS sales that have been funded through the momentum fund; the total value of that funding; the number of such developments that have been approved funding through the fund; the name of each; the number of units in each development that are subject to forward purchase PRS sales; the name of the purchaser in each development; and if he will make a statement on the matter. [27331/21]
View answer209. Deputy Pearse Doherty asked the Minister for Finance the number of developments in which all or a portion of units in that development are subject to forward purchase PRS sales that have been funded through Home Building Finance Ireland; the total value of that funding; the number of such developments that have been approved funding through Home Building Finance Ireland; the name of each; the number of units in each development that are subject to forward purchase PRS sales; the name of the purchaser in each development; and if he will make a statement on the matter. [27332/21]
View answerI propose to take Questions Nos. 208 and 209 together.
I am advised by HBFI that the number of developments in which units in that development are subject to forward purchase PRS sales which have been funded by HBFI is five developments, three of which were funded through the Momentum Fund.
The overall total value of the funding is €264.04m (includes part v units) of which €189.59m relates to funding from the Momentum Fund.
A breakdown of these developments is set out below:
|
No. |
|
|
Project 1 |
307 Units* |
|
Project 2 |
48 Units* |
|
Project 3 |
287 Units* |
|
Project 4 |
211 Units |
|
Project 5 |
63 Units |
* funded through the Momentum Fund
HBFI is not in a position to disclose the name of the purchaser in each development as this information is confidential and is commercially sensitive.
210. Deputy Fergus O'Dowd asked the Minister for Finance if his Department is fully compliant with GDPR EU requirements, the EU network and Information Security Directive and standards with respect to his Department’s IT infrastructure including Article 29 of GDPR which requires that data processors access only the data they need for their task; if ISO 27001 Annex 9 standards on privileged access are fully met; and if he will make a statement on the matter. [27339/21]
View answer211. Deputy Fergus O'Dowd asked the Minister for Finance if any state or semi state bodies which report to his Department are fully compliant with GDPR EU requirements and the EU network and Information Security Directive and standards with respect to their IT infrastructure including article 29 of GDPR which requires that data processors access only the data they need for their task; if ISO 27001 annex 9 standards on privileged access are fully met; and if he will make a statement on the matter. [27357/21]
View answerI propose to take Questions Nos. 210 and 211 together.
In relation to my Department, I wish to advise that ICT services are provided by the Office of the Government Chief Information Officer (OGCIO). The services provided by the OGCIO are compliant with GDPR. In reference to your question about Article 29 of the GDPR in particular, as a data processor OGCIO has taken all reasonable measures to prevent unauthorised access to personal data through the use of appropriate security processes and controls. These processes and controls include: the ability to ensure the ongoing confidentiality, compliance, integrity, availability and resilience of processing systems and services; and the ability to restore the availability and access to Personal Data in a timely manner in the event of a cybersecurity, physical or technical incident.
The OGCIO has adopted a defence-in-depth security strategy which is achieved by utilisation of people, processes, and technology to support the implementation of ICT security services. The threat landscape is constantly evolving and significant effort is expended to continually enhance and strengthen ICT security to mitigate against emerging threats, risks, vulnerabilities and cybersecurity issues. In addition to deploying perimeter security measures, such as intrusion protection systems, software vulnerabilities are managed by maintaining up-to-date versions and aggressively deploying updates and patches to endpoints and applications as they become available.
The OGCIO has employed a policy of least privilege security principle. IT staff are only assigned security roles with levels of access which are essential to perform the tasks and duties associated with their functions. The allocation and usage of privileged user accounts is reviewed and monitored.
The OGCIO has developed an Information Security Management System (ISMS) aligned with the industry security standard ISO27001. This ISMS provides an overall governance framework for information security and sets out security policies, objectives, management oversight, practices and governance and ensures continual improvement of information security management. In addition are advanced in their programme for ISO 270001 certification and are on track to getting ISO 27001 certified in Q4 of 2021/Q1 2022.
Regarding the State bodies under the aegis of my Department, the Central Bank, Irish Fiscal Advisory Council, the Financial Services and Pensions Ombudsman, Irish Bank Resolution Corporation, the Irish Financial Services Appeals Tribunal, the Office of the Comptroller and Auditor General, and the Office of the Revenue Commissioners have advised that they are fully compliant with all the regulations cited.
The National Treasury Management Agency (NTMA) has confirmed that it is fully compliant with GDPR, including Article 29 requirements. The NTMA provides business and support services and systems to the National Asset Management Agency, the Strategic Banking Corporation of Ireland and Home Building Finance Ireland, which are also bodies under my Department’s aegis, and which are also fully compliant with GDPR, including article 29 requirements. The NTMA further advises that, while it is not ISO27001 accredited, NTMA policies are aligned with ISO27001 Annex 9 standards on privileged access.
The Investor Compensation Company has a comprehensive Data Protection Framework in place which includes a Data Protection policy and associated procedures and controls. This Framework complies with GDPR EU requirements, including Article 29. It has contracted an external IT services provider to ensure that it meets information security standards while also employing internal access controls as appropriate.
The Tax Appeals Commission (TAC) is fully compliant with GDPR EU requirements and the EU network and Information Security Directive and standards with respect to its IT infrastructure including article 29 of GDPR. Due to its small size and limited resources, the TAC does not subscribe to the International Organisation for Standardisation, however it does actively monitor privileged access rights for data protection purposes.
While the Credit Union Restructuring Board is a State body under my Department, it was operationally wound down in 2017 and is awaiting formal dissolution.
The Disabled Drivers Medical Board of Appeal (DDMBA) is a board of medical practitioners and has no employees or premises (including IT infrastructure). It operates through the National Rehabilitation Hospital, who provide the facilities, infrastructure and staffing to facilitate the DDMBA in carrying out its remit.
212. Deputy Brendan Griffin asked the Minister for Finance if an insurance company is permitted to withdraw flood cover from a claim in respect of a business that was never flooded and that it covered for a number of years such as in the case of a person (details supplied); and if he will make a statement on the matter. [27431/21]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial services regulation, including for the insurance sector. It is important at the outset to state that the provision of cover is a commercial matter for insurance companies. This is based on an assessment of the risks providers are willing to accept. Consequently, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as reinforced by the EU framework for insurance (Solvency II Directive). Furthermore, it is not appropriate for me to comment on individual cases.
I have been advised by the Central Bank of Ireland that it’s Consumer Protection Code states that a regulated entity must ensure that in all its dealings with customer it acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market. In the event that an insurance undertaking refuses to quote a consumer for property insurance, the insurance undertaking must, within five business days of the refusal, inform the consumer of its refusal and its reasons for declining cover. However, an underwriter cannot change the terms and conditions of a policy mid-term without the consent of the policyholder.
Furthermore, the Deputy should be aware that Section 15 of the Consumer Insurance Contracts Act 2019, specifically outlines that an insurer who intends to exclude certain areas from cover under the insurance contract shall do so explicitly in writing before the commencement of the contract.
Finally, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. I would also note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover including flood insurance, at feedback@insuranceireland.eu.
214. Deputy Catherine Murphy asked the Minister for Finance if he will clarify an aspect of section 4 of the Taxes Consolidation Act 1997 benefit-in-kind charges in the context of the action plan on climate change; the way in which BIK changes can incentivise companies to change the fleets of vehicles to hybrid and or electric in view of the fact that under the current policy 0% BIK exemption for electric vehicles will cease at the end of 2022 with no certainty if this will be extended; and if he will consider the example (details supplied). [27441/21]
View answerIreland’s vehicle benefit-in-kind (BIK) regime has come under criticism for the absence of any environmental rationale underpinning its design. In recognition of this, the Government’s Climate Action Plan contained a commitment to consider the introduction of an environmental rationale into the vehicle BIK regime.
In Finance Act 2019 I legislated for a CO2-based BIK regime for company cars from 1/1/2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles. The 0% BIK rate forms part of a broader series of very generous measures to support the uptake of electric vehicles, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees and 0% BIK on electric charging. The BIK exemption was intended as a temporary measure and is set to end at year end 2022, coinciding with the onset of the new BIK regime on 1/1/2023.
The reduction in mileage bands from five to four bands serves to weaken any perverse incentives of increasing mileage to reduce tax liability, while still seeking to tax the person in proportion to the quantum of benefit derived from the car. Electric vehicles will benefit from a preferential rate of BIK, ranging from 9 – 22% depending on mileage. This new structure with CO2-based discounts and surcharges provides a broad structure which will incentivise employers to provide employees with low-emission cars.
215. Deputy Matt Carthy asked the Minister for Finance the number of civil servant posts that were filled through open and internal panels, since April 2020, in his Department and the bodies under the aegis of his Department, by county and by month in tabular form. [27598/21]
View answerI wish to advise the Deputy that since 1 April 2020, the number of civil servant posts in my Department filled through open and internal panels were as follows:
|
Year |
Month |
Open - Dublin |
Internal - Dublin |
|
2020 |
April |
1 |
1 |
|
2020 |
May |
1 |
0 |
|
2020 |
June |
4 |
1 |
|
2020 |
July |
3 |
2 |
|
2020 |
August |
1 |
2 |
|
2020 |
September |
6 |
0 |
|
2020 |
October |
1 |
0 |
|
2020 |
November |
2 |
2 |
|
2020 |
December |
0 |
0 |
|
2021 |
January |
6 |
0 |
|
2021 |
February |
3 |
1 |
|
2021 |
March |
4 |
0 |
|
2021 |
April |
5 |
2 |
Three bodies under the aegis of my Department employ civil servants, namely the Office of the Comptroller and Auditor General, the Office of the Revenue Commissioners and the Tax Appeals Commission.
Details of civil servant posts that were filled in the Office of the Comptroller and Auditor General and the Tax Appeals Commission through open and internal panels since April 2020 are attached. A separate table of such posts filled in the Office of the Revenue Commissioners is also attached.
216. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform if the civil service mobility scheme has resumed; if not, when it is planned to resume; and if he will make a statement on the matter. [27244/21]
View answer217. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform if it is planned to facilitate additional transfers via the civil service mobility scheme as a result of the scheme being paused due the Covid-19 pandemic; and if he will make a statement on the matter. [27245/21]
View answerI propose to take Questions Nos. 216 and 217 together.
As the Deputy will be aware, movement through Civil Service Mobility for the grades of Clerical Officer and Executive Officer was temporarily placed on hold in March 2020 due to the Covid-19 pandemic. During this phase staff were still able to register their interest in Mobility however offers of Mobility under the scheme were placed on hold.
The list-based scheme re-opened on the 19th October 2020 for the grades of Clerical Officer and Executive Officer. From that date it allowed Civil Service organisations to resume making offers of Mobility through the Scheme. A number of further phases of the Mobility scheme were launched following the re-opening of the scheme.
- Phase 2C - Advertisement-Based Mobility for Assistant Principals went live on 2nd November 2020. The terms of the scheme directly mirror that of the Principal Officer Mobility scheme which went live in September 2015.
- Phase 2A - The application Stage of the list-based Mobility Scheme for Higher Executive Officer and Administrative Officer generalist grades went live on 18th January 2021. The offer stage of this phase is due to go-live in the coming month.
Plans are on target to launch Phase 2B in the coming months. This is an Advertisement-based Mobility scheme for positions which require qualifications or more specialist expertise for the grades of Higher Executive Officer and Administrative Officer.
The number of vacancies that can be filled through mobility depends on the workforce requirements of each organisation, however not all vacancies are required to be filled through Mobility. Organisations are required to fill vacant posts by adhering to an organisational grade-based nationwide sequencing which was agreed to by the Staff Unions.
