Wednesday, 22 Sep 2021

Written Answers Nos. 21-35

Driver Test

Questions (21)

Pearse Doherty

Question:

21. Deputy Pearse Doherty asked the Minister for Transport if a driving test can be expedited for a person (details supplied) in County Donegal; and if he will make a statement on the matter. [45528/21]

Written answers

Minister of State at the Department of Transport

Under legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Driving Test.

Individual appointments are an operational matter for the RSA and I do not have any role in this process. This question is therefore being referred to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

Tax Reliefs

Questions (22)

Fergus O'Dowd

Question:

22. Deputy Fergus O'Dowd asked the Minister for Transport the discussions that have taken place to date between the NTA and his Department in relation to additional supports and changes to the taxsaver scheme that will acknowledge the change in working patterns and the significant impact the pandemic has had on ticket holders and monies spent to date and impending charges; and if he will make a statement on the matter. [45663/21]

Written answers

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares.

Following the establishment of the National Transport Authority (NTA) in December 2009, the NTA has responsibility for the regulation of fares charged to passengers in respect of public transport services, provided under public service obligation (PSO) contracts.

In relation to the possible introduction of alternative tax saver commuter ticket options following the Covid pandemic, the NTA is currently evaluating such a proposal and my Department has commenced discussions with the NTA and the Department of Finance on the matter. The NTA is proceeding with the detailed technical work associated with introduction of a more flexible Taxsaver product, whilst discussions with the Department of Finance continue.

Driver Test

Questions (23)

Jennifer Whitmore

Question:

23. Deputy Jennifer Whitmore asked the Minister for Transport when a person (details supplied) will receive a date for a driving test; and if he will make a statement on the matter. [45735/21]

Written answers

Minister of State at the Department of Transport

Under legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Driving Test.

Individual appointments are an operational matter for the RSA and I do not have any role in this process. This question is therefore being referred to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

Driver Test

Questions (24)

Jennifer Whitmore

Question:

24. Deputy Jennifer Whitmore asked the Minister for Transport if there are contingency plans being put in place to deal with the backlog of driver theory test and full driving test applications in County Wicklow; if additional staff have been put in place in the county to deal with this issue; and if he will make a statement on the matter. [45736/21]

Written answers

Minister of State at the Department of Transport

Under legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Driving Test and Theory Test.

Specific details relating to County Wicklow are held by the Road Safety Authority. This part of the question is therefore being referred to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.

Due to the suspension of driver testing services in the initial pandemic response, along with the health protocols required since the resumption of services, services are operating well below normal capacity and a significant backlog has developed.

In line with the gradual reopening of services this Summer, driving tests for all those who are eligible to take the test and have been waiting longest have now recommenced. Critical frontline workers continue to be the prioritised.

My Department is liaising with the RSA on an ongoing basis to meet the growing demand for tests. An additional 40 temporary driver testers have been authorised along with 36 approved for retention or rehire in 2020. In addition, sanction was granted at the end of June to add a further 40 testers to the cohort.

The RSA is looking to increase the number of tests from 6 to 7 per tester per day from the end of September as well as extending operating hours and expanding facilities at existing centres or opening new centres where appropriate.

The gradual re-opening of in-person driver theory test centres commenced on 8th of June. The Road Safety Authority (RSA) reopened test centres and introduced capacity to increase the number of tests from an average of 15,000 tests (in normal times) to 25,000 tests monthly, to tackle the backlog and shorten waiting times.

The gradual re-opening of in-person driver theory test centres commenced on 8th of June. The Road Safety Authority (RSA) reopened test centres and introduced capacity to increase the number of tests from an average of 15,000 tests (in normal times) to over 25,000 tests monthly. Almost 50,000 tests were provided during the month of August.

The test centres have extensive COVID-19 measures in place to protect both customers and staff and to ensure the safe delivery of the service.

The RSA has been working to expand the online theory test service. The new offering will see up to 10,000 online theory tests available for all categories of vehicles per month. Tests are available on a first-come-first-served basis with the new online service becoming more widely available later in the year.

From the start, it has been clear that the first priority is public safety. We want to provide services, and we know people are looking for services, but we will provide them only to the limit possible while preserving public health.

Driver Test

Questions (25)

Jennifer Whitmore

Question:

25. Deputy Jennifer Whitmore asked the Minister for Transport the number of persons on a waiting list for a driving test by county; and if he will make a statement on the matter. [45741/21]

Written answers

Minister of State at the Department of Transport

Under legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Driving Test.

The information requested is held by the RSA. This question is therefore being referred to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

Tax Avoidance

Questions (26)

Róisín Shortall

Question:

26. Deputy Róisín Shortall asked the Minister for Finance his views on whether Ireland’s tax system is consistent with Ireland's stated commitment to equitable development and working with poorer countries to move beyond a reliance on aid given the recent revelations by an organisation (details supplied) regarding the tax avoidance activities of a company which show definitively that taxable profits are being siphoned from poorer countries such as Nepal and Ethiopia; and if he will make a statement on the matter. [45726/21]

Written answers

Minister for Finance

I am aware of recent media report regarding a publication concerning the tax arrangements of an individual taxpayer. From the outset, I must state that it is not appropriate for the Minister for Finance to comment on the tax affairs of individual businesses.

I am informed by the Revenue Commissioners that Revenue uses a range of resources to identify instances of tax avoidance, which would include tax avoidance arising from the arrangements described in the Agreement between the Competent Authorities of Ireland and Malta.

Those arrangements involved an exploitation of a mismatch of Irish and Maltese rules in relation to company residence and domicile, which could have led to income falling out of charge in Ireland and in Malta, resulting in double non-taxation of the income concerned. I cannot comment on the arrangements of any specific taxpayer. However, arrangements as described in the Christian Aid report are not arrangements that involve a mismatch of residence and domicile rules that would lead to double non-taxation, through amounts falling out of charge in both Ireland in Malta.

The purpose of the Ireland-Malta Competent Authority Agreement was to deter the arrangements described in the Agreement. The Christian Aid report appears to confirm that the Agreement was effective in achieving that purpose— and I am informed by the Revenue Commissioners that they have not identified information that would suggest otherwise. As regards those arrangements or any other aggressive tax planning, I have repeatedly stated that I will not hesitate to propose legislation to address tax avoidance, where it may not be possible to address arrangements within the existing code. The Revenue Commissioners liaise with my Department on that basis, in relation to potential loopholes they identify.

The Revenue Commissioners cannot comment directly or indirectly on the arrangements of a specific taxpayer. I am informed by the Revenue Commissioners – as a general statement and without their reference to, or implication in respect of, any specific case – that they do not provide confirmations or opinions to taxpayers on matters in respect of which they suspect there may be a tax avoidance purpose.

Revenue is strongly committed to identifying and challenging tax avoidance, including schemes that would seek to rely on Ireland’s Double Taxation Agreements. Revenue has reviewed Ireland’s Double Taxation Agreement (DTA) network in relation to the possibility of arrangements, similar to those addressed by the Ireland-Malta Competent Authority Agreement, being implemented using a different DTA. Specifically, Revenue has considered Ireland’s DTA with the United Arab Emirates (UAE), which has been cited in that regard.

I am further informed by the Revenue Commissioners that, in the absence of a generally-applicable corporate tax in the UAE, the UAE DTA contains provisions designed to prevent companies from qualifying as residents of the UAE for the purposes of the DTA. While Revenue will remain vigilant for indications of avoidance, they consider that DTA has been designed to prevent such possible use and that the risk of implementation of arrangements, similar to those addressed in the Competent Authority Agreement with Malta, is low in relation to the UAE DTA and other DTAs designed for restricted application.

For my part, I have repeatedly demonstrated that I am committed to taking action to ensure the Irish tax code is in line with new and emerging international tax standards as agreed globally. The January 2021 Update to Ireland’s Corporation Tax Roadmap highlights the actions that have already been taken and will continue to be taken in this process of corporation tax reform.

In this vein, it is important to remember that in recent Finance Acts, the Oireachtas has;

- substantially progressed transposition of the Anti-Tax Avoidance Directives through the introduction of Controlled Foreign Company rules, and anti-hybrid rules;

- introduced defensive measures against listed jurisdictions through enhanced Controlled Foreign Company Rules;

- updated transfer pricing rules;

- introduced legislation for OECD BEPS measures on mandatory disclosure rules; and

- substantially widened the scope of the Exit Tax regime — with the result that, on the migration of a company from Ireland to another country of residence, the increase in the value of assets to the date of the company’s departure will be chargeable to Irish tax.

It should also be recognised that Ireland has a longstanding General Anti-Avoidance Rule, which goes beyond the standard required in the EU Anti-Tax Avoidance Directives.

Further, in the upcoming Finance Bill, it is intended that we will complete the transposition of the Anti-Tax Avoidance Directives, with the introduction of interest limitation rules and anti-reverse hybrid rules. It is intended that these rules will take effect from 1 January 2022.

This reform is not complete: As set out in the update to the Corporation Tax Roadmap, over the coming years there are commitments to introduce a series of measures to further reform our corporate tax code, including through the introduction of measures to apply to outbound payments, further action against listed jurisdictions, as well as publishing a tax treaty policy statement with a particular focus on developing countries.

Tax Data

Questions (27)

Pearse Doherty

Question:

27. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated in each of the years 2022, 2023, 2024 and 2025 that were the capital allowances claimed against intangible assets onshored between 2015 and 11 October 2017 capped at the current rate of 80%; and the estimated quantum of capital allowances remaining to be claimed against those assets. [45282/21]

Written answers

Minister for Finance

The 80% cap on capital allowances for intangible assets was re-introduced in Finance Act 2017 and it applies to all intangible assets on-shored from 11 October 2017. The cap only affects the timing of relief in the form of capital allowances and related interest expenses for intangible assets and does not affect the overall quantum of relief. This is because any amounts restricted in one accounting period (resulting from the cap) would be available for carry forward to a subsequent accounting period, subject to the application of the cap in that period.

I am advised by Revenue that Corporation Tax returns do not record the on-shoring of intangible assets (or the year in which on-shoring occurred). The available information is the amounts of capital allowances claimed in respect of intangible assets.

A tentative estimate of the potential short-term cash-flow benefit that could accrue if intangible assets on-shored between 2015 and 11 October 2017 were subject to the 80% cap has been provided on previous occasions. However, as Revenue anticipate that many of the claims associated with the period 2015 to 2017 are likely to be finishing due to the write down periods for these assets, it is likely that the impact of the suggested cap in the requested years would not be significant. An estimate of allowances remaining to be claimed is not available.

Cybersecurity Policy

Questions (28)

Imelda Munster

Question:

28. Deputy Imelda Munster asked the Minister for Finance if his Department’s IT infrastructure is monitored for security breaches on a 24/7 basis; the guidance provided from Government on same; and if he will make a statement on the matter. [45310/21]

Written answers

Minister for Finance

I wish to confirm to the Deputy that my Department’s IT Infrastructure has a breadth of infrastructure monitoring in place and provides a 24/7 service, however 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.

Guidance from Government in relation to ICT security is a matter for the National Cyber Security Centre.

Tax Code

Questions (29)

Darren O'Rourke

Question:

29. Deputy Darren O'Rourke asked the Minister for Finance the annual estimated cost of reducing VAT on domestic electricity bills by 1%; and if he will make a statement on the matter. [45325/21]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that a tentative estimate on the cost of reducing VAT on residential electricity supply based on the current Ready Reckoner would be in the region of €20m.

Tax Yield

Questions (30)

Darren O'Rourke

Question:

30. Deputy Darren O'Rourke asked the Minister for Finance the amount of VAT collected on domestic electricity in 2019 and 2020; and if he will make a statement on the matter. [45326/21]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that it’s not possible to obtain an exact figure for VAT raised from electricity as traders are not required to identify specific activities on their VAT returns.

However, they do compile estimates based on the most recently available CSO / SEAI data.

Below are estimates for the VAT yield for 2019 and 2020;

2019 - 224 (€m estimate)

2020 – 228 (€m estimate)

Flexible Work Practices

Questions (31)

Emer Higgins

Question:

31. Deputy Emer Higgins asked the Minister for Finance the steps taken by his Department to support the implementation of the national remote work strategy Making Remote Work; the approximate number or percentage of staff within his Department who have access to cloud services for remote videoconferencing and the capacity to work remotely; his plans to increase this percentage; the framework under which procurement for this is managed; and if he will make a statement on the matter. [45367/21]

Written answers

Minister for Finance

I wish to indicate to the Deputy that Departments and Offices are currently working in line with Government COVID-19 guidance, which provides for home working to continue where possible.

My Department is an active participant on the interdepartmental working group that is developing a central policy framework for Blended Working in the Civil Service. It is expected that this will be finalised in conjunction with employee representative bodies over the coming months. This framework will inform the development of organisation level blended working policies tailored to the specific requirements of each Department/Office, whilst ensuring a consistency of approach across key policy areas. Furthermore, my Department’s Covid-19 Response Management Group meets weekly and continues to consolidate work already advanced in response to the pandemic in line with on-going Government guidance and recommendations.

The ICT services of the Department are provided by the Office of the Government Chief Information Officer (OGCIO) for all staff. These services support remote videoconferencing and the capacity to work remotely. The ICT equipment procured for staff to work remotely has been procured in line with the appropriate procurement guidelines.

In excess of 93% of staff are enabled to work from home. Those who are not enabled to work from home have continued to work on-site over the last 18 months. With regards to these members of staff, it should be mentioned that their onsite presence is required due to the nature of their work.

Flexible Work Practices

Questions (32)

Emer Higgins

Question:

32. Deputy Emer Higgins asked the Minister for Finance the steps taken by agencies under the remit of his Department to support the implementation of the national remote work strategy Making Remote Work; the approximate number or percentage of staff within these agencies who have access to cloud services for remote videoconferencing and the capacity to work remotely; if there are plans to increase this percentage; the framework under which procurement for this is managed; and if he will make a statement on the matter. [45384/21]

Written answers

Minister for Finance

The following is the position in relation to those bodies under the aegis of my Department that have employees:

The Central Bank of Ireland, which also provides staffing and facilities for the Investor Compensation Company DAC, is continuing to evolve its ways of working so that it is a fulfilling workplace for its staff and an effective organisation that can deliver on its mandate in the public interest. Its people and systems have adapted well to the remote environment during which the vast majority of staff worked from home in line with public health guidelines. As public health guidelines change, more staff will begin returning to the office on a phased and limited basis. The Bank’s staff are well-equipped to work remotely, with the vast majority using videoconferencing, collaboration software and other services remotely, as such the Bank has no requirement to increase the participation in these services at this time. Some staff, due to the nature of their work, will need to be onsite e.g. security and catering. It is envisaged that the majority of staff will work in a hybrid model in the future.

The Credit Review Office has two members of staff, both of whom have been working remotely since March 2020.

The Financial Services and Pensions Ombudsman (FSPO) has, since March 2020, taken measures to facilitate remote working in order to comply with public health measures in the context of the COVID-19 pandemic. Since then, the FSPO has ensured the continuity of its operations by facilitating remote working for the majority of its staff, with only a small number of roles requiring office attendance for essential business needs to ensure it continues to fulfil its statutory role and meet the needs of its customers. All FSPO staff, including new employees, have access to the necessary IT equipment, cloud services for remote videoconferencing and the capacity to work remotely. For this reason, it is not envisaged that any further procurement is required by the FSPO in order to support the implementation of the national remote work strategy Making Remote Work. All decisions in relation to future working arrangements for the FSPO will be taken in the context of public health guidance, guidance from the Department of Public Expenditure and Reform, business needs and staff welfare.

All staff of the Irish Fiscal Advisory Council have been working remotely since March 2020 and have the capacity and necessary resources, including cloud services, to work remotely and it is planned to continue to maintain this. The Council has a remote working policy in place with a hybrid-model applying on a physical return to the office. A Procurement Policy is in place which aims to ensure that the Fiscal Council, relative to the nature and volume of procurement undertaken, complies with its legal obligations, and procures openly, objectively, and transparently to get the best value for money in line with the Guidelines of the Office of Government Procurement.

Employees of the Office of the Comptroller & Auditor General are currently working in line with Government COVID-19 guidance, which provides for home working to continue where possible. A central policy framework for Blended Working in the Civil Service will be finalised in conjunction with employee representatives over the coming months — the move to blended working supports commitments in the national remote working strategy. Due to the nature of the work of the Office, a degree of remote working was already facilitated prior to the current pandemic, a teleworking policy was in place and staff had the necessary equipment to work outside of the Office, at home or in client premises. All staff of the Office have access to teleconferencing facilities and access to other platforms is arranged as required on a case by case basis. A model for the future of work in the Office, developed with extensive staff consultation, has recently been approved by the Audit Board. The model will facilitate a hybrid working arrangement enabling staff to divide their time between remote and in-office work while ensuring that the business objectives are achieved. The model will form the basis of a blended working policy for the Office to be developed once the central policy framework has been agreed.

The National Treasury Management Agency (NTMA) introduced remote working for employees in July 2019 by way of the NTMA Remote Working Guide. Since the onset of the pandemic in 2020, and in accordance with Government advice, NTMA employees have predominantly, approximately 95% of staff, worked from home. It is the NTMA’s expectation that a hybrid working model will be available to all employees and the NTMA Remote Working Guide will be updated to reflect this. The NTMA has the IT infrastructure in place to facilitate staff working remotely. This infrastructure has been procured in line with the NTMA Procurement Policy.

The NTMA assigns staff to Home Building Finance Ireland, the National Asset Management Agency and the Strategic Banking Corporation of Ireland.

The Office of the Revenue Commissioners is actively developing its blended working policy in response to the Making Remote Work strategy. Revenue already has the technology in place to support remote working for all staff, noting that some staff such as Customs Officers cannot work remotely. Revenue currently supports approximately 4,500 remote workers on a daily basis. Video conferencing facilities are available to all staff including all remote workers and this service operates in the cloud. This technology was procured pre-Covid-19 via a tender for Revenue’s Office productivity suite.

The Tax Appeals Commission (TAC) has drafted a remote working policy for its staff members and is currently awaiting final guidelines and direction from the Department of Public Expenditure and Reform before implementation takes place. To date, no staff member has requested remote working on a permanent or hybrid-basis but the Commission conducted an internal anonymous survey in May 2021 which indicated a level of interest in some form of hybrid working. From 20 September 2021, in accordance with Government recommendations, staff physically returned to the office on a staggered basis. To maintain social distancing, the overall daily number of staff attending the office is limited and this will be an excellent pilot for hybrid working post pandemic. The ICT services of the Commission are provided by the Office of the Government Chief Information Officer which already supports remote videoconferencing and the capacity to work remotely.

Covid-19 Pandemic Supports

Questions (33)

Gerald Nash

Question:

33. Deputy Ged Nash asked the Minister for Finance the status of the temporary wage subsidy scheme, employment wage subsidy scheme and Covid restrictions scheme compliances programmes respectively; the percentage of employers availing of each scheme who have been contacted by the Revenue Commissioners regarding repayments; the total amount of repayments due from employers under each scheme; the total amount collected to date in tabular form; and if he will make a statement on the matter. [45440/21]

Written answers

Minister for Finance

The temporary wage subsidy scheme (TWSS) closed at the end of August 2020, and I am advised that Revenue has been carrying out a programme of compliance checks on all employers who participated in the TWSS scheme to confirm eligibility and that the supports were properly paid out to qualifying employees. Revenue has confirmed that to date, compliance checks have been completed in respect of 64,710 employers, representing more than 99.6% of cases, with the remainder in progress. I am further advised by Revenue that the compliance checks have shown significantly high levels of compliance with the TWSS requirements by employers with 1,523 employers, approximately 2% of cases, having to repay the TWSS subsidy as they failed to meet the requirements of the scheme. Settlements in these cases totalled €27.7m.

Following a reconciliation exercise conducted at the end of June 2021 in respect of 67,525 employer registrations the overall TWSS liability due is €309m. There is €79.5m currently outstanding with approximately €63.5m of that amount included in the debt warehouse.

In relation to the employment wage subsidy scheme (EWSS), I am advised that Revenue is undertaking a compliance programme which to date has seen 7,223 employers availing of EWSS contacted, or 14% of the 51,450 employers who registered for the scheme. Of these, 2,584 were Revenue initiated contacts, and 4,639 were voluntary amendments made by employers where they were liable to repay EWSS subsidies to Revenue. The total amount collected to date is €50m with an amount of €7.3m remaining due to be collected. €6.4m of the outstanding amount is included in the debt warehouse.

The Covid restriction support scheme (CRSS) is a scheme designed to provide targeted support for businesses significantly impacted by restrictions introduced to combat the effect of the pandemic. I am advised that the compliance approach by Revenue is primarily focused on eligibility confirmation at application, with ongoing monitoring of claimants as sectoral restrictions change.

Tax Reliefs

Questions (34)

Michael Moynihan

Question:

34. Deputy Michael Moynihan asked the Minister for Finance if he will prioritise the inclusion of lithium battery plant machinery on the triple E register to avail of accelerated capital allowance; his views on the advantages of promoting this technology; and if he will make a statement on the matter. [45460/21]

Written answers

Minister for Finance

Finance Act 2008 introduced the Accelerated Capital Allowance (ACA) scheme for Energy Efficient Equipment (EEE). The scheme provides a tax incentive for companies and sole traders who invest in highly EEE. The ACA scheme allows taxpayers to deduct the full cost of expenditure on eligible equipment from taxable profits in the year of purchase. This differs to the standard treatment of capital allowances which are claimed at a rate of 12.5% annually over eight years.

To qualify for the scheme, equipment must fall within one of the 10 classes of technology specified in Schedule 4A of the Taxes Consolidation Act 1997. In order for equipment in these classes of technology to qualify for the scheme it must also meet detailed energy efficiency criteria as set in statutory instrument by the Minister for the Environment, Climate and Communications with the approval of, and after consultation with, the Minister for Finance. A statutory instrument is also required to update such criteria. The SEAI maintains the listing of eligible products on its Triple E Register, and plays a key role in the process for setting the eligibility criteria by undertaken periodic technical reviews of the technology groups.

Last year my officials, in conjunction with officials in the Department for the Environment, Climate and Communications (DECC), the SEAI and the Revenue Commissioners, completed a Tax Expenditure Review of the scheme in accordance with the Department of Finance guidelines for evaluating tax expenditures. This review established that the policy objective of the scheme remains valid and provided evidence of increased uptake of the relief, particularly among micro and small businesses in recent years. Finance Act 2020 extended the end date of the scheme from 31 December 2020 to 31 December 2023. The review also recommended the classes of technology included in Schedule 4A and the existing energy efficiency qualifying criteria be reviewed with a view to updating the criteria to reflect technological advances in energy efficiency.

I am informed by the SEAI that it is possible that the types of machinery referred to by the Deputy may qualify for the scheme under the technology group ‘Electrical Vehicles and Associated Charging Equipment’, which is included in the Class of Technology ‘Electric and Alternative Fuel Vehicles’ in Schedule 4A. Whether or not a specific item of machinery qualifies for the scheme depends on whether it meets the qualifying criteria set for that technology group. If a taxpayer wishes to confirm whether an item of equipment qualifies for the scheme they may consult the SEAI at the following email address: [e-mail] or [phone]. Information on the ACA scheme can be found on the SEAI website through www.seai.ie/business-and-public-sector/business-grants-and-supports/accelerated-capital-allowance/.

The SEAI is the body responsible for setting the eligibility criteria and maintaining the register of eligible products for which the incentive can be claimed. The SEAI is currently undertaking a technical review of the scheme which includes the detailed energy efficiency criteria equipment must meet to qualify for the scheme. I am informed by my colleagues in DECC that the SEAI intend on engaging with industry stakeholders in the coming period during the review process. Through this process stakeholders will have an opportunity to make representations relating to the existing technology groups and propose new technologies.

Tax Reliefs

Questions (35, 36, 37)

Pearse Doherty

Question:

35. Deputy Pearse Doherty asked the Minister for Finance the total cost to the Exchequer of tax relief on pensions contributions from 2016 to 2020 disaggregated by year and pension type in tabular form. [45649/21]

Pearse Doherty

Question:

36. Deputy Pearse Doherty asked the Minister for Finance the total cost to the Exchequer of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [45650/21]

Pearse Doherty

Question:

37. Deputy Pearse Doherty asked the Minister for Finance the number of persons availing of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [45651/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 35 to 37, inclusive, together.

I am advised by Revenue that the cost of tax relief on pension contributions for the years 2004 to 2018 (the latest year currently available) are available on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

For 2018 the published items in relation to pension contribution relief are:

- ‘Employees’ Contributions to Approved Superannuation Schemes’,

- ‘Employers’ Contributions to Approved Superannuation Schemes’,

- ‘Exemption of Employers’ Contributions to BIK’, and

- ‘Pension Contributions (Retirement Annuity and PRSA)’

For the convenience of the Deputy, the following table sets out the relevant tax costs for the years 2016-2018 as figures for 2019 and 2020 are not yet available.

Tax Relief	2018	2018	2017	2017	2016	2016
	Cost€m	Number of taxpayers	Cost€m	Number of taxpayers	Cost€m	Number of taxpayers
Employees’ Contributions to Approved Superannuation Schemes	677.7	663,900	598.1	614,200	582.4	599,200
Employers’ Contributions to Approved Superannuation Schemes’	173.2	413,000	159.8	366,700	158.4	345,500
Exemption of Employers’ Contributions to BIK	658.3	413,000	607.3	366,700	601.9	345,500
Pension Contributions (Retirement Annuity and PRSA)	241.3	98,300	229.3	93,600	221.3	95,900
Total Cost	€1,750.5m		€1,594.5m		€1,563.7m

In relation to the Deputy’s question regarding the total cost to Exchequer of tax relief on pension contributions and the number of persons availing of this relief from 2016 to 2020, disaggregated by year and salary band, I am advised by Revenue that prior to the introduction of real-time reporting (PAYE Modernisation) on 1 January 2019, pension contributions were reported to Revenue at an employer level rather than an employee level, and therefore the breakdown requested by the Deputy is not available for years prior to 2019.

The Deputy may be interested in Revenue’s paper on ‘Statistics and Insights from the First Year of Real-Time Payroll Reporting (PAYE Modernisation)’ which is available at www.revenue.ie/en/corporate/documents/research/pmod-statistics-paper.pdf. In this paper, on page 17, a breakdown is provided of the level of pension contributions through payroll, as well as the number of individuals, broken down by income band for the year 2019.

I am advised by Revenue that a broad indication of the tax cost by income band may be inferred from this table in relation to employees. However, comparable information for employees and self-assessed cases combined is not available. Data from tax returns (PAYE and self-assessed individuals) for the year 2019 are currently being processed and will be available in the coming months.