Written Answers Nos. 36-50
38. Deputy Fergus O'Dowd asked the Minister for Finance 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. [45664/21]
View answerSection 118(5A) of the Taxes Consolidation Act (TCA 1997) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee.
Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a travel pass.
Where a travel pass is purchased under the BIK scheme or through a salary sacrifice arrangement certain conditions must be met, for example:
- the cost incurred must relate to a monthly or annual bus, railway or ferry travel pass;
- the travel pass must be issued by or on behalf of one or more approved transport providers; and
- the approved transport provider must be contracted or licensed to provide the transport services covered by the travel pass.
The terms ‘monthly’ and ‘annual’ above refer to the period of time for which the travel pass is valid for use, being a period of 30/31 or 365/366 days respectively. The number of journeys or extent of travel which may be undertaken within the monthly or annual period covered by the travel pass will depend on the terms and conditions of the specific ticket purchased and the relevant transport provider.
Further details on the tax treatment applicable on the provision of a travel pass to an employee can be found on Revenue’s website.
As 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.
39. Deputy Róisín Shortall asked the Minister for Finance if his attention has been drawn to any company, other than a company (details supplied) that is using an equivalent of the so-called single malt tax avoidance structure to reduce their tax liability as recently revealed by an organisation; and if he will make a statement on the matter. [45722/21]
View answer40. Deputy Róisín Shortall asked the Minister for Finance if a company (details supplied) received any assurances on the operation of the single malt-type structure from the Revenue Commissioners; if his attention or that of his officials was drawn to any other company still using a single malt or equivalent tax avoidance structure; and if he will make a statement on the matter. [45723/21]
View answer41. Deputy Róisín Shortall asked the Minister for Finance if his Department has undertaken any assessment or analysis of Irish-registered companies' tax-resident in Malta for tax purposes since the signing of the Ireland-Malta Competent Authority Agreement in 2018; and if he will make a statement on the matter. [45724/21]
View answer42. Deputy Róisín Shortall asked the Minister for Finance if his Department has carried out any assessment or analysis of Irish-registered companies' tax-resident in tax treaty partner countries other than Malta for tax purposes, since the residency rule changes in the Finance Act 2014 came into force on 31 December 2020 ending the tax avoidance structure know as double Irish; and if he will make a statement on the matter. [45725/21]
View answerI propose to take Questions Nos. 39 to 42, inclusive, together.
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.
43. Deputy Sorca Clarke asked the Minister for Finance the number of properties in which the PPSN of the tenant has been allocated to the property for the purposes of local property tax by county in 2019, 2020 and to date in 2021, in tabular form. [45740/21]
View answerSection 11 of the Finance (Local Property Tax) Act 2012 (as amended) sets out the rules used to determine the ‘liable person’ of a residential property for LPT purposes. Generally, the ‘liable person’ is the owner of the residential property on the basis that he or she has the right to immediate possession or is entitled to receive the rent where occupied by a tenant. However, the legislation also provides that a tenant is liable for LPT on a residential property where the lease is for a period of 20 years or more. Local Authorities or Approved Housing Bodies are liable for LPT in cases where a tenant is renting a residential property from them.
When LPT was introduced in 2013 Revenue produced the first residential property register of all properties within the State. As the data to compile the Register was gathered from various sources, a relatively small number of tenants were incorrectly linked as ‘liable persons’ to the properties they were renting. In such circumstances, the tenants were requested to contact Revenue to confirm they were not the ‘liable person’ and to provide details of the landlord. If information regarding the landlord was not available to them, they were requested to provide the details of the person to whom they paid the rent. Once the position of a tenant was confirmed, Revenue amended to Register to reflect the correct ‘liable person’.
I am advised by Revenue that it is not possible to provide the information requested by the Deputy, as there is no requirement for ‘liable persons’ to advise that they are a tenant when meeting their LPT obligations. The only requirement is to confirm that they are the correct ‘liable person’ for the property. If the Deputy is aware of any tenant who is incorrectly linked as the ‘liable person’ to a residential property, she should advise him or her to contact the LPT Helpline at 01-738362 to have the matter reviewed and rectified.
44. Deputy Imelda Munster asked the Minister for Public Expenditure and Reform 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. [45316/21]
View answerI can confirm that my Department’s IT Infrastructure has a breadth of infrastructure monitoring in place and provide 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.
45. Deputy Emer Higgins asked the Minister for Public Expenditure and Reform the process underway by the Office of Government Procurement in relation to a possible new framework for the procurement of cloud video conference services; if the intention of the framework is to ensure fair competition across collaboration and video conferencing providers; if the Office of Government Procurement plans to consult with prospective service providers; the timeline for this consultation; the expected date for the publication of this framework; and if he will make a statement on the matter. [45352/21]
View answerOGP is engaging with its client base in relation to their requirements for cloud services (including collaboration and video conference services) which will inform OGP’s future strategy in relation to potential procurement solutions for cloud services. Any procurement of cloud services will be through public competition advertised on www.etender.ie. Pre-market engagement relating to any public procurement competition will be conducted in an open and transparent manner through a Request for Information process advertised on www.etenders.ie. It is recommended that all potential suppliers interested in tendering for OGP solutions register on www.etenders.ie. The timeline for any pre-market engagement and/or public procurement process will be determined by the outcome of OGP’s client engagement.
46. Deputy Emer Higgins asked the Minister for Public Expenditure and Reform 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. [45373/21]
View answer47. Deputy Emer Higgins asked the Minister for Public Expenditure and Reform 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. [45390/21]
View answerI propose to take Questions Nos. 46 and 47 together.
I wish to advise the Deputy that a central policy framework for Blended Working in the Civil Service will be finalised in conjunction with employee representatives over the coming months, for implementation in Q1 2022. This framework will inform the development of organisation level blended working policies tailored to the specific requirements of each Government Department/Office, including my own Department, whilst ensuring a consistency of approach across key policy areas.
All staff in my Department and the Office of Government Procurement (OGP), which is also part of the Department, are enabled to work from home. All of these staff have access to our Government hosted video conferencing services and can also access cloud hosted video conferencing services. In addition, in the order of 35% of staff have an additional licence for the purpose of organising cloud hosted video conferences. My Department utilises OGP frameworks, where available, for the procurement of laptops and other computer equipment and services, etc. Licences for the cloud hosted video conference service were procured nationally.
The position is relation to the bodies under the aegis of my Department is set out in the table below.
|
Public Body |
Percentage of staff working from home and with access to video conferencing capacity |
Framework under which procurement for remote working/video conferencing licences were managed |
|
Office of Public Works (OPW) |
77% The majority of the remaining OPW staff work primarily outdoors, with no office based activities e.g. drivers, craftsmen, general operatives etc. |
OPW uses OGP frameworks laptops and other computer equipment and services.Cloud-based video conferencing services were procured through open tender competition on eTenders.gov.ie Website and OJEU. |
|
National Shared Services Office (NSSO) |
100% |
OGP Managed Frameworks - Laptops, Citrix, MS Teams, Skype for BusinessWeBex – 3 quotes satisfied requirements due to small number of licences required (WeBex Training and WeBex Events) |
|
Public Appointments Service (PAS) |
100% |
Microsoft Licensing Services (Cloud based Videoconferencing – Microsoft Teams)Personal & Notebook Computers and Associated Services (laptops for staff) |
|
State Laboratory |
100% |
No additional procurement requirements |
|
Office of the Ombudsman |
100% |
All required hardware and software required to facilitate this are procured from OGP frameworks. |
|
Office of the National Lottery Regulator (ORNL) |
100% |
Upgrade to ICT system completed in February 2020 via eTenders. Adjustments to tender requirements were made, in compliance with OGP guidelines, e.g. to substitute desktop PCs with laptops and ancillary equipment to facilitate remote dial-in. Some items noted above are small-value projects that did not meet value criteria of OGP frameworks. |
48. Deputy Violet-Anne Wynne asked the Minister for Public Expenditure and Reform if he is satisfied with the process of Government appointments in view of recent events; and his views on whether the Public Service Management (Recruitment and Appointment) Act 2004 needs to be amended in this regard. [45439/21]
View answerThe Public Service Management (Recruitment and Appointments) Act 2004 sets out procedures relating to the recruitment and appointments for the civil service and certain other bodies in the public service.
However as Minister for Public Expenditure & Reform, I have responsibility under these acts for recruitment to the Civil Service only as set out by Section 58(1)(a) of the 2004 Act.
As the Deputy will be aware, all general appointments to the civil service are by way of open competition, and the Public Appointments Service (PAS), which operates under licence from the Commission for Public Service Appointments, is the principal recruiter for the civil service.
PAS continues to apply the standards of probity, merit, equity and fairness, consistent with the codes of practice set down by the Commission. The codes of practice are followed by PAS in the public interest for the recruitment, assessment and selection of persons for appointments in the Civil Service and other public service bodies as was set out in Section 34 (1) (b) of the 2004 Act.
Appointments to positions of Assistant Secretary General and higher in the civil service are generally undertaken by the Top Level Appointments Committee (TLAC) with the assistance of the Public Appointments Service (PAS). The Government is again committed to ensuring a policy of open recruitment and the role of TLAC, as an independent body, is to support that and ensure that the recruitment and selection process for senior Civil Service posts is accessible to the widest pool of qualified candidates.
TLAC also operates under the Code of Practice issued by the Commission for Public Service Appointments in accordance with the principles of merit, consistency, accountability, probity, best practice and professional confidentiality.
My department has also taken a leadership role on appointments to State Boards. The Guidelines on Appointments to State Boards , 2014 provides a framework for appointments to the boards of State Bodies. The guidelines help provide for a more robust and transparent process and assist in both the good governance of state bodies, and, together with other relevant policies such as the Code of Practice for the Governance of State Bodies, also help in driving progress towards wider Government goals. These guidelines and the Code of Practice, are kept under ongoing review.
Finally, I understand that the Minister for Foreign Affairs has asked his department to undertake a review of the role and appointment of special envoys. The terms of reference are currently being drafted and it is anticipated that the review will be completed by mid-October 2021.
49. Deputy Mairéad Farrell asked the Minister for Public Expenditure and Reform if the €51.8 million from the National Training Fund is treated as normal Government expenditure for the purposes of budget 2022; if it will impact the deficit and General Government Balance; the way this expenditure will interact with the budgetary process; and if the same applies to the Social Insurance Fund. [45455/21]
View answerThe National Training Fund and the Social Insurance Fund form part of the General Government sector. As a result, the National Training Fund and Social Insurance Fund expenditures impact the general government expenditure. Similarly, the National Training Fund and Social Insurance Fund receipts are classified as general government revenue. Both revenue and expenditure of the National Training Fund and Social Insurance Fund impact the overall general government balance.
As set out in the Ministers and Secretaries Amendment Act 2013, expenditure of the Social Insurance Fund and National Training Fund form part of the Government Expenditure Ceiling. Consequently, in line with the fiscal strategy set out in the Summer Economic Statement, expenditure of these Funds must be accommodated within the voted spending ceiling for 2022 of €88.2 billion.
In relation to 2022, officials in my Department are currently engaging with officials in the Departments of Social Protection and Further and Higher Education, Research, Innovation and Science on the projected expenditure levels and receipts to the Social Insurance Fund and the National Training Fund next year. Details in relation to these projections will be included in the 2022 Expenditure Report to be published on Budget day.
50. Deputy Ged Nash asked the Minister for Public Expenditure and Reform his views on a recent Parliamentary Budget Office report (details supplied); and if he will make a statement on the matter. [45515/21]
View answerI have noted the recent report by the Parliamentary Budget Office (PBO), A Well-being Framework for Ireland – the Parliamentary Perspective.
In July 2021, the first report of the Interdepartmental Working Group (IDWG) was published setting out an initial Well-being Framework for Ireland. This initial Framework sets out an overarching vision of “enabling all our people to live fulfilled lives now and into the future”. The Interdepartmental Report notes that by providing an overarching structure the Well-being Framework will contribute to the development of a shared understanding of what makes for a better life and enhance strategic alignment in the identification of policy priorities, opportunities, and challenges as well as coordination and co-operation between departments and agencies.
The initial Framework has an outcomes-based approach that is focused on understanding people’s experiences across person, place and society. From my Department’s perspective, this approach builds on the performance budgeting initiative. It does so by placing an explicit focus on policy goals and evidence of progress toward achieving stated policy outcomes. This is part of a wider set of reforms that have increased the focus on the impact of public services on people’s lives such as equality budgeting. In the aggregate, these reforms seek to provide a well-rounded, holistic view of how Ireland is progressing, highlighting where progress is unequal and shaping policies that deliver better results for people.
The First Report on a Well-being Framework for Ireland set out a commitment for a second phase of consultation on the Framework. The ongoing development of the Framework will be informed by engaging with a broad range of stakeholders. I understand that the Department of the Taoiseach is preparing an approach for such a consultation.
The First Report on a Well-being Framework for Ireland set out an initial dashboard of indicators for the Well-being Framework. This dashboard complements the conceptual framework and measures life and progress in Ireland using a cohesive set of indicators. The creation of such a dashboard is in keeping with the practice of the OECD and other countries that have sought to develop a well-being perspective. The First Report also set out that, from Autumn 2021, the CSO will host an interactive version of the dashboard that will update automatically as data corresponding to individual indicators becomes available. In addition, the First Report also stated that the CSO is intending to publish a ‘how we are doing?’ section annually which will provide accessible infographics and trends.
In this context, it is important to note my Department’s ongoing engagement with the Oireachtas in the development of the performance budgeting framework, including Equality Budgeting and the Public Service Performance Report.
While high-level well-being frameworks are important in terms of developing a shared understanding of what makes for better lives and influencing public debate on strategic priorities, such frameworks do not in-and-of-themselves fulfil the ambition of improving policy and decision-making. My Department recognises the importance of going beyond presenting high-level indicators by developing a knowledge base around well-being as a policy objective and integrating well-being metrics into the various stages of the policy making process. In the Mid-Year Expenditure Report, my Department set out its perspective on how the Well-being Framework can be utilised to locate well-being within existing expenditure policy in order to inform efforts to improve the impact of public policy on people's lives and to build knowledge of well-being as a policy objective, in order to better understand policy challenges and inform the design and implementation of more effective public policies.
