Tuesday, 27 Jul 2021

Written Answers Nos. 378-394

Tax Code

Questions (378)

John Brady

Question:

378. Deputy John Brady asked the Minister for Finance if his attention has been drawn to the negative financial impact that the increase in VRT and VAT in Budget 2021 has had on persons who need to purchase a specially adapted vehicle on disability grounds; if he plans to make any changes to VRT or VAT for disabled drivers; if so, if he will implement a refund scheme for persons who have borne the cost of the additional VRT and VAT to purchase a new specially adapted vehicle with a ramp and hoist; and if he will make a statement on the matter. [40017/21]

Written answers

Minister for Finance

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. Details of these reliefs and the grant in respect of fuel usage are available on the Revenue website.

The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle.

It should be noted that the new VRT charging table does not necessarily result in increased VRT rates. VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. Typically, the new rates structure will result in increases for high emission vehicles, and decreases for lower emission vehicles.

Departmental Bodies

Questions (379)

Paul Kehoe

Question:

379. Deputy Paul Kehoe asked the Minister for Finance the agencies and State organisations under his Department that are receiving State funding that do not have to declare salaries of employees under the 2016 code of governance; and if he will make a statement on the matter. [40035/21]

Written answers

Minister for Finance

The Code of Practice for the Governance of State Bodies 2016 applies directly to a number of bodies under the aegis of my Department. These are the Credit Union Restructuring Board, the Financial Services and Pensions Ombudsman, Home Building Finance Ireland, the Irish Fiscal Advisory Council, the National Asset Management Agency, the National Treasury Management Agency and the Strategic Banking Corporation of Ireland.

Of these bodies, it should be noted that the National Asset Management Agency does not receive State funding and the Credit Union Restructuring Board is awaiting final dissolution, having been operationally wound down on 31st July 2017.

In compliance with the Business and Financial Reporting Requirements of the Code of Practice, all of the bodies listed above declare employees’ salaries in their Annual Reports and/or Financial Statements.

Tax Code

Questions (380)

Gerald Nash

Question:

380. Deputy Ged Nash asked the Minister for Finance if he is considering extending the excise relief programme currently available to microbrewers to micro producers of cider, perry, intermediate beverages and other fermented beverages in Budget 2022; and if he will make a statement on the matter. [40054/21]

Written answers

Minister for Finance

The Deputy will be aware it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Fuel Inspections

Questions (381)

Fergus O'Dowd

Question:

381. Deputy Fergus O'Dowd asked the Minister for Finance the number of dipping diesel fuel tests carried out by State services in 2019, 2020 and to date in 2021; the number of positive results in each year; and if he will make a statement on the matter. [40152/21]

Written answers

Minister for Finance

I am advised by Revenue that a multifaceted approach is taken to tackling the misuse of fuel. Revenue’s compliance activities in this area include roadside sampling of private and commercial vehicles at checkpoints combined with a risk-based, targeted sampling programme based on supply chain reporting obligations for suppliers and retailers. These activities leverage the benefits of the joint initiative of Revenue and HMRC in April 2015 of introducing a new marker for use in marked fuels.

The number of samples of Marked Gas Oil drawn and the consequential detections of misused fuel for the period 2019 to 30 June 2021 are set in the following table:

Year	Samples Drawn	Misuse Detections
2019	33,984	867
2020	7,244	264
To 30 June 2021	4,851	136

Revenue conducted a national oil random sampling programme in 2016 to 2019 to assess the extent of fuel laundering. The results for all four years of the sampling programmes are summarised in the report of the 2019 programme published at: https://www.revenue.ie/en/corporate/documents/research/oil-sampling-programme-2019.pd.

The results for 2019 provide confirmation of the effectiveness of the various measures introduced by Revenue in recent years to enhance compliance in the fuel trade and among users of diesel. The random sampling programme results do not signify the complete elimination of the illicit trade in fuel; however, they demonstrate that systematic selling of illicit fuel through retail outlets and its use in the transport sector is negligible.

Despite the success in combating the misuse of fuel, I am assured by Revenue that tackling such criminality continues to be a priority. Revenue and An Garda Síochána collaborate closely in acting against cross-border fuel crime and co-operate with their counterparts in Northern Ireland under the framework of the North-South Joint Agency Task Force. This cooperation plays a key role in targeting the organised crime groups who operate across jurisdictions and are responsible for much of this criminal activity.

Credit Unions

Questions (382, 383, 384)

Holly Cairns

Question:

382. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to fulfil the Programme for Government commitment to review the policy framework within which credit unions operate. [40181/21]

Holly Cairns

Question:

383. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to fulfil the Programme for Government commitment to enable the credit union movement to grow as a key provider of community banking in the country. [40182/21]

Holly Cairns

Question:

384. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to fulfil the Programme for Government commitment to support credit unions in the expansion of services to encourage community development. [40183/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 382 to 384, inclusive, together.

There are a number of commitments set out in the Programme for Government in relation to the credit union sector that the Government is progressing.

The Review of the Policy Framework is now at an advanced stage. Since September 2020, the Department has held extensive engagement with credit union representative bodies to seek their feedback. During June and July Minister Fleming, who has responsibility for credit unions, has met with ten credit union stakeholders including representative bodies, collaborative ventures, service providers, the Credit Union Advisory Committee and the regulator to gather further information to help inform the next steps of the review.

In terms of supporting and enabling the sector to grow and expand, the following are some recent developments in relation to lending and investment regulations, SME lending, access to finance for retrofit, additional services and investment in Approved Housing Bodies (AHBs).

Review of Lending and Investment Regulations

The Central Bank has in recent years completed reviews of both the lending and investment frameworks to ensure that credit unions operate under a framework that is both tailored and proportionate, to reflect the unique nature of the sector, and to provide flexibility for credit unions who have ambitions to grow.

Following introduction of the new lending regulations on 1 January 2020, credit unions now have a combined capacity to provide up to approximately €1.1 billion in additional SME and mortgage loans, with further lending capacity available to credit unions who can comply with certain conditions or on approval by the Central Bank. As at March 2021, credit unions had a combined mortgage and SME loan book of circa €355 million, an increase of 15% year-on-year.

The revised investment regulations took effect on 1 March 2018. Under these regulations, credit unions are permitted to place their surplus funds that have not been lent to members in a range of investments including accounts in authorised credit institutions, certain bank and corporate bonds, sovereign bonds and investments in Tier 3 Approved Housing Bodies (AHBs) to provide social housing.

SME Lending

Nineteen credit unions, supported by ILCU, CUDA and Metamo, were approved by the Department of Enterprise, Trade and Employment for participation in the Covid-19 Credit Guarantee Scheme. With their local knowledge, credit unions are ideally placed to support the recovery and providing loans to local businesses is a key element of the recovery. Further development of SME lending in a controlled manner could also assist credit unions in growing and diversifying their loan book. SME lending has grown 3.9% year on year to end March 2021.

Access to Finance for Retrofit

As you will be aware, the Government significantly increased the funding available to support retrofit in Budget 2021. My officials have been engaging with the Department of Environment, Climate and Communication, the Department of Public Expenditure and Reform, and the Sustainable Energy Authority of Ireland to support increased credit union participation in green retrofit loan schemes.

Other Services

The Deputy may also wish to note that under the additional services regime set out in the 2016 regulations credit unions can seek approval from the Central Bank to offer additional services such as current accounts and debit cards. 60 credit unions have been approved to provide Member Personal Current Account Service (MPCAS).

A further group of credit unions have recently begun distributing insurance products to their members.

Investment in Approved Housing Bodies

Since 1 May 2018 it has been possible for credit unions to invest in Approved Housing Bodies through a regulated vehicle. I understand that a number projects are being progressed by the sector at present, which may lead to investment in AHBs.

Question No. 383 answered with Question No. 382.

Question No. 384 answered with Question No. 382.

Tax Code

Questions (385, 393, 407)

Niamh Smyth

Question:

385. Deputy Niamh Smyth asked the Minister for Finance if the help to buy scheme will continue into 2022 (details supplied); and if he will make a statement on the matter. [40282/21]

Brendan Griffin

Question:

393. Deputy Brendan Griffin asked the Minister for Finance if he will extend the help to buy scheme and expand it to include currently uninhabitable properties or properties vacant for over two years for first-time buyers; and if he will make a statement on the matter. [40411/21]

Jennifer Whitmore

Question:

407. Deputy Jennifer Whitmore asked the Minister for Finance if the help to buy scheme will continue into 2022; and if he will make a statement on the matter. [40771/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 385, 393 and 407 together.

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with obtaining the deposit they need to buy or build a new house or apartment. The scheme gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.

An increase in the supply of new housing is fundamental to resolving the current housing crisis. One of the main aims of the policy underpinning the design of HTB was to help encourage the building of additional new properties. By restricting the scheme solely to new dwellings and new self-builds, it is anticipated that the resulting increase in demand for new build homes will encourage the construction of an additional supply of such properties.

For a property to qualify for HTB it must be new, or, converted for use as a home not having been previously been used as a home. In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is “new”. First-time buyers may purchase a site containing a house which is derelict and which they plan to demolish, in whole or in part, with the intention of building a new house. First time buyers intending to undertake such purchases should contact Revenue via MyEnquiries outlining the specific circumstances of their case and Revenue will consider them on a case by case basis.

Revenue advise me that in order for it to make an assessment that the dwelling being built on the site is ‘new’, sufficient evidence is required which shows that the previous dwelling was demolished and replaced as opposed to being extended/refurbished. Revenue also require as much evidence as possible from the builder, engineer or other professionals working on the project, about the condition of the former dwelling which made it uninhabitable or unsound and required that it was demolished (and the extent of demolition involved). If there is any other information (photos, etc.) that’s relevant in helping Revenue understand that the property meets the criteria in the legislation, this should be included.

In relation to second-hand properties more generally, an increase in the supply of new housing remains a priority aim of Government policy. As mentioned above, the HTB scheme is specifically designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties. A move to include second-hand properties within the scope of the relief would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply.

In the normal course of events, the future of the scheme, beyond its current sunset date of 31 December 2021, is a matter that would fall to be considered by Government in the context of Budget 2022 and the subsequent Finance Bill.

Revenue Commissioners

Questions (386, 387, 388, 389)

Marian Harkin

Question:

386. Deputy Marian Harkin asked the Minister for Finance if there are specific operational instructions set out in the Revenue Commissioners’ VRT enforcement manuals that VRT enforcement officers are expected to follow when they encounter a resident in the State for the first-time in possession of a vehicle legally brought into the State by a qualified person on a temporary basis; if so, the specific operational instructions in such cases; and if he will make a statement on the matter. [40304/21]

Marian Harkin

Question:

387. Deputy Marian Harkin asked the Minister for Finance if the power of seizure pursuant to section 141 of the Finance Act 2001 as amended may only be lawfully used when the Revenue Commissioners VRT enforcement officers have adequate evidence to make a determination of liability to forfeiture; if the power of detention pursuant to section 140 of the Finance Act 2001 as amended must be used instead in cases in which enforcement officers of the Revenue Commissioners VRT reasonably suspect a VRT offence has been committed but require further evidence in order to make such a determination; and if he will make a statement on the matter. [40305/21]

Marian Harkin

Question:

388. Deputy Marian Harkin asked the Minister for Finance if the Revenue Commissioners other than as set out in SI 127(4) of the Finance Act 2001 as amended, have lawful authority to not issue condemnation proceedings if they are duly served with a notice of claim; if so, the specific section of sub-section of the Finance Act 2001 that grants the Revenue Commissioners such lawful authority; and if he will make a statement on the matter. [40306/21]

Marian Harkin

Question:

389. Deputy Marian Harkin asked the Minister for Finance if officers and-or employees of the Revenue Commissioners exercising the delegated prosecutorial authority to investigate, consider, prepare and-or prosecute summary VRT offences in the name of the Director of Public Prosecutions are required to adhere to the DPP code of ethics; and if he will make a statement on the matter. [40307/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 386 to 389, inclusive, together.

Subject to certain conditions, limitations and restrictions, a vehicle which is validly registered abroad may be granted temporary exemption from the requirement to be registered in the State. Details of the conditions, limitations and restrictions can be found in Section 2 of the Vehicle Registration Tax Manual.

I understand that the Revenue VRT Enforcement Manual includes a table outlining possible scenarios that a Revenue officer may encounter, and the action considered appropriate in each of the scenarios.

Included in the table under the heading “Event” is “where a State resident is encountered for the first time in possession of a vehicle legally brought into the State by a qualified person who has been granted temporary exemption”. “Action” - “the officer should issue a verbal warning to the State resident, and to the qualified person granted temporary exemption where possible, that they are in breach of VRT legislation and that any future similar occurrence may result in the seizure of the vehicle for a possession offence under s.139(3)(a) FA 1992 ”. The officer in required to note the details and record the action taken.

Also included in the table under the heading “Event” is “where it is established that the vehicle is in the State more than 30 days without registration to the satisfaction of the Revenue Commissioners”. “Action” - “the vehicle should be seized for an offence contrary to section 139(3)(a) Finance Act 1992. The officer seizing the vehicle should follow the steps outlined at section 5.7 Detention & Seizure of vehicles. The officer should state the grounds on, and the legislation under which the vehicle is being seized, issue a Notice of Seizure and explain the procedure for contesting the seizure. A cautioned interview should be conducted.” Where a vehicle is being seized, the relevant details must be recorded, and a form of inventory completed.

As regards Section 140(3) of the Finance Act 2001, this allows an officer of the Revenue Commissioners or a member of the Garda Síochána on reasonable suspicion that a vehicle has not been registered in the State, or a vehicle has been converted and a declaration of conversion has not been made or vehicle registration tax has not been paid in respect of a vehicle to detain the vehicle for such period as is required to carry out such examination, enquiries or investigations as may be deemed necessary by the officer or member to determine whether such vehicle has been registered, such declaration has been made or such vehicle registration tax has been paid. When the determination has been made or on the expiry of a period of one month whichever is the earlier, the vehicle is either to be seized as liable to forfeiture under Section 141 or released.

Section 141 (1) of the Finance Act 2001 as amended provides that ‘any goods or vehicles that are liable to forfeiture under the law relating to excise may be seized by an officer’ .

I am advised that a Revenue officer exercises his or her statutory power to either detain or to seize a vehicle depending on the information available to the officer at the time the power is exercised. In addition, internal guidance, to which I have already referred, is provided to the Revenue officers in the VRT Enforcement Manual.

As regards condemnation proceedings, Section 128(5) of the Finance Act 2001 provides that the Revenue Commissioners may in their discretion stay or compound any condemnation proceedings and may restore anything seized which is the subject of such proceedings, and the Minister for Finance may order any such restoration. That provision also provides for restoration of the seized goods.

Finally, I am advised that the Revenue Commissioners have published their Code of Ethics which applies to all of its officers and employees and this is available on the Revenue website: www.revenue.ie. The Office of the Director of Public Prosecutions’ Code of Ethics is publicly available. I understand that the main aim of that Code ‘is to promote and enhance those standards and principles recognised as necessary for the proper and independent prosecution of offences’ . It is further stated that it is intended to supplement rather than to replace applicable codes governing the conduct of lawyers, civil and public servants. The DPP’s Code of Ethics therefore supplements the Revenue Code of Ethics in applicable circumstances.

Question No. 387 answered with Question No. 386.

Question No. 388 answered with Question No. 386.

Question No. 389 answered with Question No. 386.

Revenue Commissioners

Questions (390)

Paul Donnelly

Question:

390. Deputy Paul Donnelly asked the Minister for Finance the estimated cost in 2022 of providing five additional drug detector dogs for the Revenue Commissioners. [40323/21]

Written answers

Minister for Finance

I am advised by Revenue that the initial cost of each additional detection dog team is approximately €100,000 (€500,000 for 5 teams).

This includes the cost of a trained detection dog, salary of the handler, 8 weeks training for the handler with the dog, a fully fitted out dog transport van, a kennel and associated security at the handler’s home. The ongoing annual cost would be in the region of €40,000 per dog team (€200,000 for 5 teams), which includes salary, allowances, uniform, food, vet bills and other related costs .

Revenue has also confirmed that it keeps the recruitment of detection dog teams under continuous review and is satisfied that the current deployment is sufficient for operational needs.

Tax Reliefs

Questions (391)

Richard O'Donoghue

Question:

391. Deputy Richard O'Donoghue asked the Minister for Finance his views on the extension of consanguinity relief for children of same sex couples and their recognition by his Department; and if he will make a statement on the matter. [40335/21]

Written answers

Minister for Finance

Consanguinity relief is the relief that applies in relation to transfers of farmland between certain blood relatives whereby the applicable rate of stamp duty is reduced from 7.5% to1%. The details and conditions of the relief are set out in Schedule 1(5) of the Stamp Duties Consolidation Act 1999. The relief was extended in Budget 2021 until the end of 2023 . The relevant relationships for this relief include:

- Lineal descendent (child, step-child, grandchild etc.)

- Parent, step-parent and grandparent

- Husband, wife and civil partners

- Brother, sister, step-brother and step-sister

- Aunt and uncle

- Nephew and niece

It is not available on leases or on transactions involving cousins and/or in-laws, and only applies to agricultural land including farm buildings, but not farm-houses.

I have been advised by Revenue that this relief does not discriminate and applies to children of same sex couples as well as children of non-same sex couples.

Covid-19 Pandemic Supports

Questions (392)

Neale Richmond

Question:

392. Deputy Neale Richmond asked the Minister for Finance if it is necessary for employers to resubmit their eligibility for the employment wage subsidy scheme monthly given the demand on businesses and accountants and the additional pressure this would exert on them; and if he will make a statement on the matter. [40352/21]

Written answers

Minister for Finance

Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the introduction of the Employment Wage Subsidy Scheme (EWSS) from September 2020. The EWSS is an economy-wide enterprise support for eligible businesses in respect of eligible employees. The Finance (Covid-19 and Miscellaneous Provisions) Act 2021, which was signed into law on 19 July 2021, provides for the extension of the subsidy scheme to 31 December 2021.

As well as extending the duration of the EWSS, the recently enacted legislation also provides for a significant change in the assessment period used to determine eligibility for the payment of supports to employers in respect of pay dates between 1 July and 31 December 2021. For most businesses, eligibility will now be determined by comparing the turnover or level of customer orders of the business for the full calendar year 2021 with the turnover or level of customer orders for the full year 2019. Employers must be able to demonstrate a 30% reduction in turnover (or orders) in 2021 compared to 2019.

With many businesses remaining closed or limited in their capacity to trade due to the public health restrictions in place, upon the resumption of normal trading, such businesses can potentially generate turnover or customer orders of up to 70% of their full turnover/customer orders for 2019 during the remainder of 2021 and may still remain eligible to claim support under the scheme.

It has been a key requirement of the EWSS since its introduction that employers undertake a review on the last day of every month to ensure they continue to meet the scheme’s eligibility criteria. If it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments. With the further extension of the EWSS, it continues to be very important that employers review their ongoing eligibility for the scheme, and this is especially so as elements of normal trading activities resume for certain businesses.

To assist employers in conducting this monthly review of their continuing eligibility for the scheme, Revenue has developed an EWSS Eligibility Review Form which is available via its online service, ROS.

The Eligibility Review Form is completed by entering data, that should be readily available to employers from their financial records, into a series of fields on an online screen. Once these fields have been updated by the employer for the first monthly review, they are automatically pre-filled each month thereafter and only minimal data entry is required from then on.

Completing and submitting an EWSS Eligibility Review Form to Revenue will be necessary to continue to avail of EWSS supports, with details of an employer’s monthly eligibility review check to be submitted by 30 July 2021 in respect of the review for the month of June 2021 and by the 15th of the following month in respect of each month in the July to November 2021 period.

The development of the EWSS Eligibility Review Form is a very welcome initiative from Revenue and should greatly assist employers and their agents in monitoring their own/their clients’ ongoing entitlement to subsidy payments from the EWSS. Timely submission of the form provides assurance to both employers and Revenue that subsequent EWSS claims are appropriate and in line with the terms of the scheme.

As the Deputy is aware, the EWSS has been a key component of the Government’s response to the Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. The EWSS continues to be a major support for businesses as to date, payments of over €4.04 billion and PRSI credit of over €652 million have been granted to 50,700 employers in respect of almost 622,000 employees.

The requirement for employers to review their eligibility for the scheme has been a feature of the scheme since its introduction last September. Given the scale of resources being disbursed from Exchequer funds under the EWSS, I consider that the eligibility review is the minimum level of due diligence required of employers and Revenue has sought to make the process as user-friendly as possible. As the economy opens up, greater variability in trading conditions will be a feature of trading from now on. In this context the EWSS Eligibility Review Form provides employers and Revenue with a very practical means to ensure eligibility for the scheme and it will reduce the possibility of employers, inadvertently or incorrectly, claiming EWSS amounts to which they are not entitled and having to subsequently repay those amounts to Revenue.

Question No. 393 answered with Question No. 385.

Tax Code

Questions (394)

Brendan Griffin

Question:

394. Deputy Brendan Griffin asked the Minister for Finance if he will extend the time period for which the 9% VAT rate will apply to the relevant sectors until the end of 2023 in light of the ongoing and protracted nature of the Covid-19 crisis; and if he will make a statement on the matter. [40434/21]

Written answers

Minister for Finance

Budget 2021 provided for a reduction in the rate of VAT from 13.5% to 9% for Hospitality and Tourism related services and goods. This was a temporary measure to provide support for 14 months from 1 November 2020 to the end 2021. The measure is being extended to 31 August 2022 in recognition of the continuing challenges facing the Hospitality and Tourism sector.

While temporary, this measure will still provide support for a further 8 months to 31 August 2022, the end of the 2022 summer season, allowing for a longer period of recovery for the sector. It exists alongside other measures and will directly support businesses and jobs.

Given the scarcity of resources available to the government when looking at potential support measures, and in the context of future uncertainty, this remains a temporary measure. My Department and Revenue will continue to monitor the impact and need of this reduction on an on-going basis along with the other support measures put in place.