Written Answers Nos. 429-445
429. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount that could be raised from imposing a 2% public health levy on the profits of private human health and pharmaceutical companies here, including nursing homes and home care agencies. [41168/21]
View answerThe trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5 %.
Some of the main features of the current Corporation Tax regime are its simplicity and that it applies to a broad base. Changing this rate (or imposing additional levies on corporate profits) would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. It is not possible to accurately predict the effect that changes to the rate would have on the behaviour and decisions of large, multinational companies. This uncertainty prevents a reliable estimate being made of any yield that might accrue to the Exchequer.
Notwithstanding the above, I am further advised by Revenue that on a straightforward mathematical basis and assuming no behavioural changes by companies, the potential yield from imposing a 2% levy on the profits of private human health and pharmaceutical companies, including nursing homes and home care agencies, is tentatively estimated to be in the region of €400 million in a year. This is a tentative estimate, calculated based on data using the system of sectoral classification of businesses by NACE code.
430. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing the local property tax. [41169/21]
View answerI am informed by Revenue that the yield from Local Property Tax (LPT) for 2022 under the revaluation approach set out in the Finance (Local Property Tax) (Amendment) Act 2021 is provisionally estimated to be €560 million (before any Local Adjustment Factors are applied). These yields expected to arise in future years from the forthcoming revaluation of liable properties would be lost if LPT was abolished.
431. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of commercial trade that took place in shares here in 2020. [41170/21]
View answerI am informed by the Central Bank that, based on data reported to it by regulated entities, in 2020 there were approximately 52 million equity transactions by Irish and non-Irish firms on Irish venues (to include equity transactions that took place on bilateral systems operated by investment firms known as systematic internalisers), representing a total quantity of approximately 55 billion shares traded.
432. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of commercial trade that took place in derivatives here in 2020. [41171/21]
View answerI am informed by the Central Bank that there is no available data on the volume of derivative contracts that were entered into or traded by Irish counterparties (financial and non-financial) in 2020.
433. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount expected to be raised by the universal social charge in 2021. [41172/21]
View answerAccording to forecasts carried out by my Department as part of the Stability Programme Update, the Universal Social Charge is projected to raise €4 billion in 2021. The full set of fiscal projections will be updated as part of the Budget 2022 in October.
434. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount expected to be raised by the universal social charge from tax units paying more than €90,000. [41173/21]
View answerI am advised by Revenue that an estimated €2bn is projected to be raised by the Universal Social Charge (USC) from taxpayer units earning more than €90,000 per annum. This estimate is based on projected incomes for 2021 and is subject to revision.
435. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 12.5% minimum effective corporation tax rate on total gross profits before deductions, allowances or reliefs. [41174/21]
View answer436. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 15% minimum effective tax rate on total gross profits before deductions, allowances or reliefs. [41175/21]
View answer437. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount of tax revenue which would be generated by applying a 17.5% minimum effective tax rate on total gross profits before deductions, allowances or reliefs. [41176/21]
View answerI propose to take Questions Nos. 435 to 437, inclusive, together.
The trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Some of the main features of the current corporation tax regime are its transparency and that it applies to a broad base. Taxable profits are generally understood to be income after deduction of allowable expenses, whereas the questions refer to tax being levied on “total gross profits before deductions, allowances or reliefs”. Therefore, the proposals seem to involve changes to the existing corporation tax base and it is not possible to calculate a hypothetical yield on this basis.
Analysis undertaken by the Department of Finance, co-authored by an independent academic, a separate report undertaken by the Comptroller & Auditor General (C&AG), and Revenue’s annual analysis of Corporation Tax payments and returns, all confirm that the effective rate of corporation tax, using the most appropriate methodology, paid by corporations in Ireland is between 10% and 11%. While this percentage is lower than the 12.5% headline rate, this can be attributed to the availability of the small number of targeted tax measures that are provided for in legislation and may only be availed of where the legislative criteria for relief are satisfied. Compliance with these tax obligations and eligibility for tax reliefs are monitored by Revenue on an ongoing basis.
Notwithstanding the above, it should also be noted that seeking to change the tax base and/or to impose a minimum effective tax rate would involve increased complexity and could change the attractiveness of Ireland’s corporate tax regime. It is not possible to accurately predict how the proposed changes to the tax base and the imposition of a minimum effective tax rate would affect the behaviour and investment decisions of multinational or domestic companies. Therefore, as noted above, it is not possible to accurately or robustly estimate the potential Exchequer impact of these proposals.
The Deputy will also be aware that Ireland has expressed broad support for the OECD Inclusive Framework’s proposed two-pillar solution to address tax challenges arising from digitalisation and globalisation, but have expressed reservations in particular about the proposed global minimum effective tax rate of “at least 15%”. Given the importance of the OECD proposals, I have invited views through a public consultation and the consultation period will run until 10 September 2021.
438. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount of revenue which would be generated in 2022 by imposing €600 per year tax on all second homes, a €1,000 per year tax on all third or fourth homes and a €1,500 per year tax on all fifth or subsequent homes. [41177/21]
View answerI am informed by Revenue that the available information in respect of additional charges on second or multiple properties is included at page 29 in the ‘Ready Reckoner’, published at link: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
439. Deputy Richard Boyd Barrett asked the Minister for Finance the amount NAMA has made available to developers in loan facilities to complete projects by year up to the end of the second quarter of 2021. [41178/21]
View answerSince its inception, NAMA has advanced capital funding to its debtors and receivers in cases where it can be shown that such funding will enhance the value of the assets securing NAMA’s loan portfolio. Subject to commercial viability, NAMA funds capital expenditure for the planning, design and construction of new or acquired residential and commercial projects. NAMA also funds infrastructure, as necessary, to facilitate these developments. Additionally, NAMA provides funding for essential remediation works to existing assets or to improve the income producing potential and disposal value of assets.
The following table shows the breakdown of capital expenditure funding by year since inception. A total of €3.9 billion has been advanced to end-June 2021 for new and existing projects. All of this funding is procured from within NAMA’s own resources without any reliance on Exchequer funding.
|
Year |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Q2 2021 |
|
Capex Funding€’m |
168 |
205 |
150 |
188 |
477 |
631 |
521 |
525 |
433 |
371 |
227 |
33 |
440. Deputy Richard Boyd Barrett asked the Minister for Finance the amount NAMA has paid out to date for repair and maintenance of properties in its portfolio. [41179/21]
View answerNAMA’s statutory mandate per section 10 of the NAMA Act 2009 is to achieve the best commercial return from its acquired loans. In that context, NAMA judiciously advances funding to its debtors and receivers in order to optimise the disposal value of secured properties. Such funding is provided on a commercial basis and repaid to NAMA when the properties (or loans) are sold.
NAMA identified a number of existing properties in its secured portfolio that did not meet relevant fire regulations and building standards. Accordingly, the Agency provided funding for essential expenditure such as fire safety works and other necessary health and safety works to ensure that properties were compliant with current building regulations and health and safety requirements. Additionally, NAMA provided funding for remediation works to unfinished or defective housing in order to bring the properties to a habitable standard. Some of these remediated units were subsequently delivered by NAMA for social housing.
I am advised that from inception to end-June 2021, NAMA has provided funding of approximately €131m for remediation works to existing residential and commercial properties securing its loans, with a further €50m potentially required. Further information is included in NAMA’s 2020 Annual Report which is available on the Agency’s website: www.nama.ie.
441. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of interest paid on the national debt in 2020 that was contracted since 2008. [41180/21]
View answerI am informed by the National Treasury Management Agency that the net Exchequer cash interest paid in respect of Ireland’s National Debt in 2020 was just over €4.5bn. This was a reduction of over €0.5bn, or more than 10%, on the 2019 figure.
It includes interest paid on Government bonds, EU Programme loans, other medium/long term debt, short-term debt, and State Savings products.
It is difficult to say precisely how much of this interest relates to borrowing contracted since 2008 due to certain complexities in the debt portfolio. Examples of these complexities include (i) certain State Savings products allow additions, reinvestments and withdrawals before maturity and (ii) bonds can be auctioned or cancelled from any series regardless of their original issue date.
That said however, it is the case that the vast bulk of the national debt interest paid in 2020 relates to debt contracted since 2008.
442. Deputy Richard Boyd Barrett asked the Minister for Finance the details of empty properties and land banks that have not yet been sold with regard to the assets of NAMA; and the negotiations that have taken place to acquire these homes for social and-or affordable housing. [41181/21]
View answerThe Deputy will be aware that NAMA does not generally own properties; rather NAMA owns loans for which the properties act as security.
I am advised that, as at end-March 2021, NAMA debtors and receivers owned an estimated 577 hectares of land potentially suitable for residential development in Ireland. NAMA regularly assesses the feasibility of these sites and, where development is deemed commercially viable, NAMA provides funding for the delivery of new residential units.
I am advised that the sites currently have a delivery capacity for 24,000 residential units. Of these, 1,400 units are under construction or have funding approved for construction and 4,600 units have planning permission; planning has been lodged or is being prepared for 7,500 units and a further 8,500 units are at the pre-planning or feasibility stages, with other land that has the possibility to accommodate 2,000 units remaining unzoned by local authorities. It should be noted that many of these sites, including some of those with planning, are either not commercially viable at current sales prices and/or have specific infrastructural requirements such as roads, water or sewerage that will need to be addressed by local authorities and other State bodies before any units can be built. Furthermore, the development of some sites will require the resolution of legal disputes or title issues.
NAMA continues to review its secured portfolio in order to deliver properties for social housing purposes (albeit at a lesser level than in previous years given the reduced portfolio size). The main method of social housing delivery is by way of direct sale (by a NAMA debtor or receiver) to a local authority or an approved housing body (AHB), or alternatively, by sale to NARPS (a NAMA Group entity) for onward long-term lease to an AHB. In total, over 2,600 properties have been delivered by NAMA for social housing purposes. Negotiations are advancing with a number of AHBs in relation to the delivery of a further 189 residential properties recently built as part of NAMA’s residential funding delivery programme. This is in addition to social housing units delivered on NAMA-funded residential sites via Part V planning requirements whereby 10% of the development must be provided to local authorities for social housing.
I am advised that close to 100% of all secured housing units are occupied; there are approximately 50 habitable vacant residential units within NAMA’s secured portfolio, excluding properties which are on the market or sale agreed. NAMA is currently working with its debtors and receivers regarding appropriate strategies for these units, which includes assessing the suitability of the units for social housing.
444. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated on a first-year and full-year basis for 2022 by introducing a 3%, 4% and 5% income tax surcharge on the portion of individual incomes in excess of €140,000. [41353/21]
View answerI am advised by Revenue that the following table sets out the estimated yields to the Exchequer that would arise from the introduction of an individualised surcharge applicable on income in excess of €140,000, as set out by the Deputy.
|
Surcharge |
First Year €m |
Full Year €m |
|
3% |
176 |
230 |
|
4% |
235 |
307 |
|
5% |
294 |
383 |
These estimated figures are based on projected 2021 incomes, calculated from actual data for the year 2018, that latest year for which full data are available, and may be revised.
