Written Answers Nos. 196-215
196. Deputy Brendan Griffin asked the Minister for Finance if the Central Bank will investigate the widespread credit reporting errors in 2019 and 2020 by a bank (details supplied); and if he will make a statement on the matter. [42258/21]
View answerOfficials in my Department referred the Deputy's question to the Central Bank of Ireland and received the following response in this regard:
“Under S. 33AK of the Central Bank Act 1942 (as amended) the Bank is prohibited from disclosing regulatory information in respect of individual firms.
“However, on a broader note the Central Credit Register is established by the Central Bank of Ireland under the Credit Reporting Act 2013 (as amended) (‘the Act’). In order to produce full and accurate credit reports, the Bank expects that all Credit Information Providers who are within the scope of the Act submit information that is accurate, complete and up to date. This is an obligation under the Act. Lenders also have broader obligations under data protection law in respect of the treatment of personal information.
“Credit Information Providers may from time to time find that information which was not accurate, complete or up to date was reported to the Central Credit Register in error. If this happens, the Bank requires that we are notified of the error and a procedure is in place for such reporting. The Bank further expects that such errors are corrected.
“Credit Information Providers, as data controllers, may also be required to report the matter to the Data Protection Commission and they may be obliged to inform the data subjects directly.
“Any action taken subsequently by the Data Protection Commission is a matter for the Data Protection Commission.”
197. Deputy Mattie McGrath asked the Minister for Finance if the help-to-buy scheme, which is due to end in 2021, will be extended to help those trying to buy their own home; and if he will make a statement on the matter. [42302/21]
View answerThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive 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. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
As part of the normal course of events, the future of the HTB scheme beyond its current sunset date of 31 December 2021 is a matter that will fall to be considered in the context of Budget 2022 and the subsequent Finance Bill.
198. Deputy Brendan Griffin asked the Minister for Finance if the employment wage subsidy scheme will continue to be made available to childcare providers in quarter 4 of 2021 without the income reduction requirements; and if he will make a statement on the matter. [42411/21]
View answerSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the operation of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, positions of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
The objective of the scheme is to support all employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, payments of over €4.6 billion and PRSI credit of over €735 million have been granted to 51,200 employers in respect of 650,100 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made in June, it has been decided that the scheme is now to be extended until the end of December 2021. For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%.
Decisions in relation to the configuration of the EWSS in Q4 2021 in relation to its various aspects will be addressed in the coming weeks. Also, no decisions have been taken in relation to future of the scheme beyond the end of Q4, 2021.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
199. Deputy Róisín Shortall asked the Minister for Finance if his attention has been drawn to the sale of a company (details supplied); the implications of the sale for the State's investment through the Irish Strategic Investment Fund; and if he will make a statement on the matter. [42512/21]
View answer200. Deputy Róisín Shortall asked the Minister for Finance if financial safeguards were put in place to protect the State's investment in a company (details supplied); the estimated loss to the State on its investment to date; and if he will make a statement on the matter. [42513/21]
View answerI propose to take Questions Nos. 199 and 200 together.
The NTMA has informed me that ISIF has a shareholding in Genuity Science and that three operating subsidiaries of Genuity Science have been acquired by HiberCell in an all-stock transaction. ISIF continues to remain a shareholder in Genuity Science and as such is now an indirect shareholder in HiberCell.
I am also informed that the transaction with Hibercell was assessed as representing the best opportunity at this time to maximise value for Genuity Science shareholders in the future and was considered as giving the best chance to maintain ongoing Genuity operations including in Ireland, albeit now under Hibercell. ISIF has invested €66m in Genuity Science to date, alongside a range of sophisticated private investors on commercial terms which were acceptable to such investors and ISIF. Consistent with the approach it takes on all investments, ISIF conducted an appropriate due diligence exercise prior to making its investment. I understand that for reasons of commercial sensitivity ISIF does not comment on the carrying value of its investments from time to time but I note that ISIF has publicly stated that Genuity’s valuation has been negatively impacted by the global pandemic and its exposure to geopolitical events.
ISIF’s portfolio is diversified, comprising investments in a range of asset classes across the spectrum of risk that are consistent with its mandate of achieving economic impact while earning a commercial return. High-risk investments in the life sciences and tech sectors comprise a very small percentage of the overall portfolio (less than 3%). Investments of this nature can be volatile and are often early-stage but have the ability to deliver significant return potential. ISIF has a number of direct investments that have and continue to deliver significant gains, however ISIF also expects that there will inevitably be some individual investments where it will recover less than the total invested. Notwithstanding the risks inherent in these investments, since ISIF’s inception, overall high-risk investments have delivered positive returns of circa 18% at H1 2021. Overall, the returns on the total portfolio of €9.2bn since inception exceed €2.2bn, with as of H1 2021 generating returns of 5.2% year to date. The fund has generated annual returns of 4.1% pa since inception.
201. Deputy Brendan Griffin asked the Minister for Finance his advice on an insurance matter (details supplied); and if he will make a statement on the matter. [42559/21]
View answerAt the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland, has any influence over the pricing or provision of insurance products, as this is a commercial matter assessed on a case-by-case basis. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as: the relevant driving experience; as vehicle age and type; the drivers age; the relevant claims record; the number of drivers; how the vehicle is used, etc. Insurers do not all use the same combination of rating factors, and as a result prices vary across the market. Consumers are accordingly free to choose whatever product best meets their needs, with price obviously being a relevant factor. Insurance companies also price in accordance with their own past claims experience. This illustrates the importance of shopping around for insurance.
In relation to the experience referred to with a specific insurance provider, it is important to note that as Minister for Finance, I am not in a position to comment on or intervene in respect of individual cases.
I understand that there is no statutory basis behind the individual policies of insurance companies pertaining to the time period of non-continuous driving experience for the purposes of retaining insurance cover. Officials in my Department have previously engaged with Insurance Ireland on this issue. They confirmed that the general current timeframe of two years companies use in this regard is one which appears to have evolved within the insurance market itself, rather than representing a rule imposed by the industry and/or the State, and that there may be flexibility from certain individual providers if the time period concerned is marginally over two years. Ultimately, this is a commercial matter for companies and will be reviewed on a case-by-case basis.
Throughout the pandemic, Government has consistently called on insurers to treat customers honestly, fairly and professionally, and in line with the Central Bank’s Consumer Protection Code. With regard to insurance for Small Public Service Vehicle (SPSV) drivers, I understand from my officials that several insurers in the market introduced measures last year to ease the burden on drivers, including the ability to reduce vehicle cover to social, pleasure and domestic use only with pro-rata refunds provided. However, as the Deputy will be aware, I cannot direct insurers to offer such measures. It should be noted that the National Transport Authority (NTA) advises that where SPSV insurance is not in place, the driver does not hold a valid SPSV licence. I believe that it is important that anyone concerned should engage directly with their insurer or broker and the NTA regarding their circumstances and options.
In situations where a person is not satisfied with the service of an insurance provider, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who 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.
Finally, where an individual is having difficulty in receiving an insurance quotation, or a private company has issues in relation to named drivers on their fleet policy, which may be relevant in this case, they may wish to use the Declined Cases Agreement (DCA). Under the terms of the DCA, which is adhered to by all motor insurers in Ireland, the insurance market will not refuse cover if the person has approached at least three insurers and has been unable to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website, while more generally, Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu.
202. Deputy Brendan Griffin asked the Minister for Finance if a Revenue Commissioners relevant contracts tax refund will be paid to a self-employed person (details supplied) in County Kerry; and if he will make a statement on the matter. [42560/21]
View answerSection 530P of the Taxes Consolidation Act 1997 precludes Revenue from issuing a refund of Relevant Contracts Tax (RCT) until the income tax return for the relevant year (or the Corporation Tax return for the relevant accounting period of a company) has been filed and all associated liabilities discharged. However, the RCT refund is available for offset against other tax liabilities that may arise.
I am advised by Revenue that the person in question is seeking a refund of RCT in respect of the periods July and August 2021. In accordance with the legislation, it is not possible for Revenue to process such a refund until the 2021 income tax return is filed (due by 31 October 2022), an assessment raised, and any liabilities discharged. However, the refund amount is available to offset against any other tax liabilities that arise for the person during the interim period.
Revenue has confirmed that it has already clarified the position to the person.
203. Deputy Neale Richmond asked the Minister for Finance if it is possible for a person to appeal a decision on vehicle registration tax (details supplied); and if he will make a statement on the matter. [42568/21]
View answerI am advised by Revenue that any person who wishes to appeal against the refusal of a VRT exemption can avail of a two-stage appeal process. The first-stage appeal consists of a re-examination of the original decision by a Revenue official who had no previous involvement with the case. If the appellant is still unhappy following the outcome of that re-examination, there is the option to submit a further appeal (known as second-stage appeal) to the independent Tax Appeals Commission.
The person involved must pay the VRT before an appeal can be considered; where an appeal is successful, Revenue will refund the appropriate VRT amount to the taxpayer.
Before making an appeal, the person involved should be satisfied that all the facts of the case were available to Revenue in coming to its initial decision, and that all the necessary supporting documents were submitted at the time of the initial application. In cases where there has been a refusal to grant an exemption from VRT, the person involved has two months after the date of the initial decision to make an appeal.
The appeal, along with the appropriate documentation, should be made in writing to Revenue’s Central Vehicle Office. The appellant must quote either their Personal Public Service Number (PPSN) or their Revenue Customer Number. The appeal must clearly outline the grounds or the reason for the appeal.
For private individuals transferring normal residence permanently to the State from abroad, certain requirements must be met to avail of the Transfer of Residence relief, including an ability to demonstrate the vehicle has been in the claimant’s possession and used by the claimant for at least six months before transfer of residence. Certain proofs are acceptable to Revenue to demonstrate possession and use by the claimant. A failure to provide acceptable proofs will result in not qualifying for Transfer of Residence relief and not obtaining the requested VRT exemption.
The Deputy may wish to be aware that further information on the VRT appeals process and details about eligibility for the Transfer of Residence relief is available on the Revenue website.
204. Deputy Denise Mitchell asked the Minister for Finance the total amount collected by local authorities through local property tax for 2019. [42574/21]
View answerI am advised by Revenue that information relating to Local Property Tax (LPT) can be found on the statistics webpage of the Revenue website www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx.
The end of year reports at this link include both the overall annual LPT yields and the breakdown of these amounts by Local Authority area for each year since the tax was introduced in 2013.
205. Deputy Pearse Doherty asked the Minister for Finance the total value of qualifying expenditure against which capital allowances, including wear and tear allowances, were claimed with respect to data centres in each of the years 2015 to 2020, in tabular form. [42672/21]
View answer206. Deputy Pearse Doherty asked the Minister for Finance the number of data centres for which capital allowances were claimed for each of the years 2015 to 2020. [42673/21]
View answer207. Deputy Pearse Doherty asked the Minister for Finance the total tax revenue foregone in each of the years 2015 to 2020 with respect to capital allowances, including wear and tear allowances, claimed with respect to data centres, in tabular form. [42674/21]
View answer208. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be saved in 2022, 2023, 2024 and 2025, respectively, if expenditure incurred with respect to data centres was no longer qualifying expenditure for the purposes of capital allowances. [42675/21]
View answerI propose to take Questions Nos. 205 to 298, inclusive, together.
Businesses may claim capital allowances on capital expenditure it incurs on certain types of business assets and business premises. Capital allowances allow the wear and tear of plant and machinery be taken into account as a deduction for tax purposes. In general, such capital allowances are claimed at a rate of 12.5% annually, over eight years.
I am advised by Revenue that data centres are not separately identifiable on Revenue records. Nor is information captured on the nature of the claims for capital allowances by data centres in a manner that would enable the Deputy’s questions on specific activities to be answered.
Revenue’s annual paper on Corporation Tax Payments and Returns provides information in respect of capital allowances claimed by the wider Information and Communication sector. Figure 6 of this paper provides a sectoral breakdown of capital allowances claimed on 2019 corporation tax returns. which may be of interest to the Deputy.
The paper is available on the Revenue website at: www.revenue.ie/en/corporate/documents/research/ct-analysis-2021.pdf.
Question No. 206 answered with Question No. 205.
Question No. 207 answered with Question No. 205.
Question No. 208 answered with Question No. 205.
210. Deputy Pearse Doherty asked the Minister for Finance if an increase in the rate of VAT for the hospitality and tourism sector from 9 to 13.5% has been included in the projections outlined in the Summer Economic Statement or whether extending the 9% rate, for the duration of 2022, would need to be included as a stand-alone measure with cost in budget 2022; and the cost of same. [42725/21]
View answerAs the Deputy will be aware 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 the start of September 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.
I can confirm that the cost of extending the 9% reduction in VAT to 31 August 2022 has been accounted for in the Summer Economic Statement. The estimate for the cost of extending this reduction to the end of 2022 is €130m.
212. Deputy Richard O'Donoghue asked the Minister for Finance the reason young drivers in certain counties pay extremely high insurance premiums especially the counties Limerick and Dublin; and if he will make a statement on the matter. [42854/21]
View answerAt the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland, has any influence over the pricing or provision of insurance products, as this is a commercial matter assessed on a case-by-case basis. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as: the drivers age, experience and number of drivers; vehicle age and type; the relevant claims record; how the vehicle is used, etc. Insurers do not all use the same combination of rating factors, and as a result prices vary across the market. Consumers are accordingly free to choose whatever product best meets their needs, with price obviously being a relevant factor. Insurance companies also price in accordance with their own past claims experience.
Notwithstanding the above, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. It is my intention, along with Minister of State Fleming, to work to ensure that the commitments outlined in the Programme for Government are progressed in accordance with the Action Plan for Insurance Reform. As the Deputy may be aware, the Cabinet Committee Insurance Reform Sub-Group in July published the first six-monthly Implementation Report of the Action Plan. This shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed. The Sub-Group’s focus now is on implementing the outstanding actions on time.
In relation to motor insurance prices more generally, I would note that, according to Central Statistics Office (CSO) data for July 2021, motor insurance prices are continuing to decline. Motor insurance prices in June were 34.7% lower than their peak in July 2016; and 5.7% lower than when the Government’s Cabinet Committee Sub-Group on Insurance Reform was established in September 2020. It is the Government’s intention that this positive downward trend continues as the reform agenda progresses.
I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the Personal Injuries Assessment Board, reduce fraud, and make changes to the duty of care in order to strengthen waivers and notices. It is my hope that the implementation of these key actions in particular should further help to improve the affordability and availability of insurance for all consumers, businesses and voluntary groups – including young drivers in particular.
213. Deputy Aengus Ó Snodaigh asked the Minister for Finance if he will address a series of matters concerning refunded exit taxes (details supplied). [42857/21]
View answerI am advised by Revenue that Section 189 of the Taxes Consolidation Act 1997 (TCA) exempts permanently incapacitated individuals from Income Tax, Pay Related Social Insurance (PRSI), Universal Social Charge (USC) and Capital Gains Tax on the income arising and gains accruing from the investment, in whole or in part, of compensation payments which arise from an order under section 38 of the Personal Injuries Assessment Board Act 2003 or the institution by the individual of court proceedings in respect of personal injury claims. The injury must be such that the individual is permanently and totally incapacitated from maintaining himself or herself.
Furthermore, section 739G TCA applies an exit tax to collective investment undertakings and is generally deducted on the occurrence of a chargeable event. Such chargeable events can arise on the making of relevant payments or on the transfer by a unit holder of their entitlement to units (including on death). An exit tax must always be deducted from payments to investors with the exception of specific categories of investors such as a pension scheme, a life assurance company or a non-resident individual, provided the investment undertaking is in possession of the appropriate declarations in advance of the chargeable event.
A permanently incapacitated individual who is exempt from tax under section 189 on income from the investment of compensation payments arising from personal injury claims may be entitled to a repayment of the exit tax. Revenue confirmed a refund of exit tax has occurred in such circumstances, where the requirements of section 189 have been met. However, where income or gains arise to, or are received by, the estate of a deceased individual, the exemption provided for in section 189 would not apply in those circumstances and consequently the repayment of any exit tax deducted cannot be made by Revenue.
As Revenue was never entitled to make repayments of the exit tax that arises under section 739G TCA to the estate of a deceased individual and there has been no change in the law to permit such refunds, I am advised that there has been no change in Revenue’s practice in relation to these matters.
214. Deputy Gary Gannon asked the Minister for Finance if his ministerial phones have been hacked or attempted to be hacked during the term of office. [42924/21]
View answerI wish to indicate to the Deputy that to my knowledge, I am not aware of any instance of a hack on my Ministerial phone.
The Department’s ICT providers (the Office of the Government’s Chief Information Officer [OGCIO]) have deployed a multi layered approach to security, with defence-in-depth comprising of people, process and technology to protect against cyber security attacks.
For operational security reasons, my Department is not in a position to provide further details of its cyber security systems as it would be inappropriate to disclose information that may in any way assist those with malicious intent.
215. Deputy Gary Gannon asked the Minister for Finance if he has ever used his personal phones for Government business; and if so, if the personal phones have been hacked during his term of office. [42942/21]
View answerI can confirm to the Deputy that I do not use a personal phone for Government business.
I also wish to indicate to the Deputy that to my knowledge, I am not aware of any instance of a hack on my phone.
