Alan Farrell
Question:82. Deputy Alan Farrell asked the Minister for Finance the efforts being made to tackle the sale of cigarettes on the black market in view of rising costs; and if he will make a statement on the matter. [51594/21]
View answerIllicit Trade
Questions (82)
Written answers
I am advised by Revenue that they use a range of measures to tackle the sale of illicit cigarettes on the black market. At the core of these measures is identifying and targeting the smuggling of illicit tobacco products into the State, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2020, it seized 48.2 million cigarettes valued at €32.8 million. In the same year, it obtained 35 summary and one indictable conviction relating to the sale of illicit tobacco, with fines of €83,500 imposed. In addition, there were 8 convictions relating to tobacco smuggling in 2020, 4 of which were on indictment, with fines of €10,000 imposed.
To the end of September 2021, Revenue seized 42.4m cigarettes valued at €30m. In addition, it obtained 22 summary convictions relating to the sale of illicit tobacco with fines of €51,750 imposed, and 8 summary tobacco smuggling convictions with fines of €20,000 imposed.
The smuggling of tobacco products is an illegal transnational activity. The production and distribution of illicit cigarettes crosses international boundaries. In response Revenue, in conjunction with national and international partners, undertake a programme of activity to counter those involved in such illegal activity. Considerable success has been achieved internationally as a result of the Revenue programme of work in this area. In June 2021, Revenue identified illicit movements of raw tobacco and engaged in international operations that led to the seizure of 6.5 tonnes of tobacco in Glasgow and the identification and dismantling of a counterfeit hand-rolling tobacco factory in Stoke-on-Trent. In July 2021, as a result of a significant operation between Revenue and Her Majesty’s Revenue and Customs (HMRC), an illicit cigarette manufacturing facility was identified in Northern Ireland, leading to the seizure of 1.6 million cigarettes and 11 tonnes of tobacco along with non-tobacco materials used in the manufacturing process.
In addition, Revenue engages in joint operations with international partners, including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation in countering the activities of those involved in the illicit international tobacco trade.
I am satisfied that Revenue is very conscious of the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer. I commend Revenue and all the relevant State agencies for their work in this important area and I am satisfied that there is an appropriate focus on tackling this form of criminality.
Departmental Contracts
Questions (83)
Carol Nolan
Question:83. Deputy Carol Nolan asked the Minister for Finance if he or any official from his Department has held meetings or conducted correspondence with a company (details supplied) from 1 January 2017 to date; if his Department has engaged the services of the company for any purposes from 1 January 2017 to date; if so, the nature of such services and the costs incurred; if a tender process was conducted; and if he will make a statement on the matter. [51354/21]
View answerWritten answers
Deputy, in relation to your question concerning Kinzen Limited previously known as Neva Labs, I wish to advise that no meetings have been held and no correspondence has been conducted with this company, either by myself or by any official from my Department.
I can also confirm that my Department has not engaged the services of Kinzen Limited previously known as Neva Labs and that no payment has been made to this company.
Tax Code
Questions (84)
Colm Burke
Question:84. Deputy Colm Burke asked the Minister for Finance if his Department will ensure e-cigarettes and other so-called risk products are taxed at the same rate as traditional cigarettes in the forthcoming review of the EU Tobacco Excise Directive to make them less attractive to young smokers following publication of data from the Food and Drug Administration in the United States of America showing disposable e-cigarettes use among high school students increased from 2.6% in 2019 to 26.5% in 2020, a 1,000% increase; and if he will make a statement on the matter. [51409/21]
View answerWritten answers
Council Directive 2011/64/EU sets out EU rules on the structure and rates of excise duty applied to manufactured tobacco. The Directive defines and classifies various manufactured tobacco products according to their characteristics and lays down the relevant minimum rates of excise duty for the different types of products. The purpose of the Directive is to ensure the proper functioning of the internal market and a high level of health protection.
Every four years, the European Commission is required to submit a report to the Council on the rates and the structure of excise duties, accompanied – where appropriate – by a proposal for the revision of the Directive. The latest report was prepared by the Commission on 10 February 2020 and on 2 June 2020 the Council approved conclusions setting out its priorities in relation to the review of the Directive. A public consultation, open between 30 March 2021 and 22 June 2021, sought to ensure that all relevant stakeholders had an opportunity to express their views on the current rules and on possible changes to these rules. The Commission is expected to bring forward a new legislative proposal later this year or early in 2022 and the impact of this can be assessed when the proposal is available.
The Commission Report and the Council conclude that it is necessary to upgrade the EU regulatory framework, in order to tackle current and future challenges in respect of the functioning of the internal market by harmonising definitions and tax treatment of novel products (such as liquids for e-cigarettes and heated tobacco products), including products that substitute tobacco, in order to avoid legal uncertainty and regulatory disparities in the EU. Revision can also address the issue of tax-induced substitution across products and enable further measures to combat the illicit trade in tobacco to address tax control, revenue collection and health protection issues.
Ireland welcomes the review of the Directive to ensure that the rules remain fit for purpose, safeguard the proper functioning of the internal market and, very importantly, provide for a high level of health protection. This latter point is particularly significant in the context of the plan in the Programme for Government to introduce a targeted taxation regime to specifically discourage ‘vaping’ and e-cigarettes as well as in the European Action Plan against Cancer and our own national policy, Tobacco Free Ireland, both of which recognise that taxation plays a pivotal role in reducing tobacco consumption, in particular in deterring youth from smoking.
Ireland is committed to a policy of high taxation of tobacco to encourage people to quit smoking. Government health and social policy has focused on the further denormalisation of smoking generally as consumption of tobacco products remains one of the greatest avoidable and preventable health risks in our society. Similar considerations arise in respect of e-cigarette products and other alternative products.
Customs and Excise
Questions (85)
Matt Shanahan
Question:85. Deputy Matt Shanahan asked the Minister for Finance the reason Ireland has remained an outlier to date in adopting legislation (details supplied); the reason the Revenue Commissioners and customs and excise departments have signalled an inability to adopt rebates or new pricing controls for a period of years if such an order should be passed; and if he will make a statement on the matter. [51462/21]
View answerWritten answers
Council Directive 92/83/EEC, also known as the “Alcohol Structures Directive”, lays down a harmonised approach for the application of excise duties on alcohol and alcoholic beverages in the EU. It sets out the categories of alcohol and alcoholic beverages that fall within scope of taxation and the basis on which excise duties on such products are to be established. Council Directive 2020/1151 amends Directive 92/83/EEC and includes a new Article 13a which allows Member States the option to grant up to 50% excise relief to independent small producers of fermented beverages such as cider. The amendments to the Directive do not take effect until 1 January 2022. Therefore, I am not in a position to introduce any excise relief measures for small producers of fermented beverages such as cider until after this date.
Up until this point, it has not been possible to offer reduced rates to small producers of cider, in the same way as applies to small producers of beer, as the application of Article 4 of the Directive is restricted to beer. Ireland is not an outlier, as other Member States have been in the same position. Ireland fully supported the introduction of amendments to the Directive to allow Member States introduce excise reliefs for small producers of cider. As I outlined in my Budget Speech last week, I see the introduction of such a relief as having a similar positive effect as that provided for small independent producers of beer.
The new Article 13a is structured differently to what is permitted under Article 4. Therefore, the existing relief in Irish legislation for beer could not be simply extended to cider. It will be necessary to provide a separate new relief, which would be similar in concept but different in detail. While this measure will be broadly modelled on the existing relief arrangements for beer, further considerations will need to be given to ensure clarity in relation to scope of the relief and also to its design and implementation so as to minimise the administrative burden and any compliance risks. My Department is considering these matters further and will engage with the sector and with the Revenue Commissioners over the coming months. As I indicated in the Budget, I plan to bring forward the relevant legislative amendments in Finance Bill 2022.
Customs and Excise
Questions (86)
Matt Shanahan
Question:86. Deputy Matt Shanahan asked the Minister for Finance if he will provide a Departmental analysis of the possible cost in taxes foregone in implementing EU Structures Directive 2020/1151 in relation to excise rebates to small scale producers of cider and other fermented beverages; if his Department can also provide an analysis in overall market terms of the value of taxes presently derived from this sector; and if he will make a statement on the matter. [51463/21]
View answerWritten answers
I am informed by Revenue that the necessary data are not provided on tax returns to enable an accurate estimate of the cost of extending the 50% excise relief (available to qualifying microbreweries) to cider brewers and other fermented beverage manufacturers.
The following table sets out the value of Alcohol Products Tax (APT) relief for beer produced in qualifying microbreweries for the years 2017 to 2020.
|
Year |
Value of Relief €m |
|
2017 |
5.7 |
|
2018 |
5.8 |
|
2019 |
6.1 |
|
2020 |
5.8 |
The following table sets out the overall volumes of beer and cider/perry charged to APT for the years 2017 to 2020 and the associated receipts.
|
|
Beer |
|
Cider/Perry |
|
|
Year |
Millions of Hectolitres |
APT Receipts €m |
Millions of Hectolitres |
APT Receipts €m |
|
2017 |
4.5 |
423.8 |
0.64 |
61.1 |
|
2018 |
4.62 |
430.1 |
0.643 |
61.2 |
|
2019 |
4.529 |
421.4 |
0.632 |
59.9 |
|
2020 |
3.745 |
351.1 |
0.559 |
53 |
Additional information on volumes and receipts for excisable products is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/index.aspx.
Covid-19 Pandemic Supports
Questions (87)
Noel Grealish
Question:87. Deputy Noel Grealish asked the Minister for Finance if State supports are taken into account when assessing eligibility for the employment wage subsidy scheme (details supplied); and if he will make a statement on the matter. [51583/21]
View answerWritten answers
Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses. The Finance (Covid-19 and Miscellaneous Provisions) Act 2021, signed into law on 19 July, provided for the extension of EWSS to 31 December 2021, ensuring that the scheme continues to provide ongoing and necessary employment support for eligible businesses as the economy returns to a full re-opening. In my Budget Day announcement, I confirmed that the scheme would continue to operate in a graduated form until 30 April 2022.
The EWSS legislation provides that for employers to be eligible for the EWSS, they must be able to demonstrate that their business will experience a 30% reduction in turnover or customer orders for the calendar year 2021 compared to the calendar year 2019 and that this disruption to normal business is caused by the COVID-19 pandemic.
The employer can self-assess for EWSS eligibility on the basis that there has been at least a 30% reduction in the turnover of the business or customer orders. I have been advised by Revenue that if a reduction in customer orders is the basis to determine eligibility, as a transport operator, the business must demonstrate at least a 30% reduction in the following:
- the volume of online bookings for passenger journeys; or
- the number of passenger journeys; or
- the value of passenger ticket sales.
Where a reduction in turnover is the basis to determine eligibility, when undertaking a review of the potential reduction in turnover, employers need to include all sources of trade income specifically including sales, donations, State funding, etc. This would include income from fares, Free Travel Schemes and potentially NTA funding support. However, the treatment of Government grants and public funding for the purposes of determining a reduction in turnover is dependent on the nature of the grant or funding arrangement. In reviewing their eligibility, employers should consider the specific nature and terms of the funding arrangement having regard to the applicable accounting standards and required recognition treatment of such grants or public funding arrangements.
The EWSS legislation requires that immediately at the end of each month, from the introduction of the scheme in August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.
To assist employers in conducting a monthly review of its continuing eligibility for the scheme, Revenue is providing an EWSS Eligibility Review Form through its Revenue Online Service (ROS). From 21 July 2021, completing and submitting an EWSS Eligibility Review Form to Revenue is necessary to avail of EWSS supports, with details of an employer’s monthly eligibility review check to be submitted by the 15th of the following month.
Timely submission of the form will provide assurance to both employers and Revenue that subsequent EWSS claims are appropriate and in line with the terms of the scheme. This, together with Revenue’s EWSS ongoing real-time compliance program, will reduce the possibility of employers, inadvertently or incorrectly, claiming EWSS amounts to which they are not entitled and having to subsequently repay those amounts to Revenue.
Any employers who have queries relating to the EWSS eligibility criteria should contact the Revenue office that deals with their tax affairs for assistance. In addition, detailed information relating to amounts to be included in the calculation of turnover for EWSS purposes is set out in Revenue’s published eligibility guidelines which can be found at: www.revenue.ie/en/employing-people/documents/ewss/ewss-guidelines.pdf.
Tax Code
Questions (88)
Noel Grealish
Question:88. Deputy Noel Grealish asked the Minister for Finance if he will introduce a two-tier stamp duty rate for land with a reduced rate applying to active farmers who work the land directly in order to increase output and production; and if he will make a statement on the matter. [51584/21]
View answerWritten answers
The current stamp duty rate for non-residential property, which includes agricultural land, is 7.5%.
Farming is first and foremost a business, and indeed section 655 of the Taxes Consolidation Act 1997 states "For the purposes of the Tax Acts, farming shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains of farming shall be charged to tax under Case I of Schedule D." It is therefore appropriate for acquisitions of farmland to be subject, in the normal course of events, to the rate of stamp duty applicable to other non-residential property.
However, in respect of agricultural land, there are a range of generous and targeted reliefs from stamp duty, specific to that type of property, which remove in full or reduce the rate of stamp duty payable on the acquisition of farmland, currently available. These include the young trained farmer stamp duty relief, consanguinity relief and farm consolidation relief. These reliefs are kept under regular review by my department, and are renewed, updated and added to in line with Government policy and prevailing circumstances, when necessary.
I have no plans to introduce a special stamp duty rate for active farmers or for agricultural land.
Tax Code
Questions (89)
Noel Grealish
Question:89. Deputy Noel Grealish asked the Minister for Finance if he will introduce a tax incentivisation scheme that facilitates owners and purchasers of town centre commercial buildings convert them into residential properties; and if he will make a statement on the matter. [51585/21]
View answerWritten answers
The Housing for All Strategy was developed in consultation with all relevant Government Departments, including my own. The measures set out in the strategy, together with the associated timeframes for delivery, represent the current actions for priority attention in order to increase the supply of residential property.
Having said this, the Deputy will be aware of the Living City Initiative (LCI). The LCI is specifically aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting of qualifying buildings, including for residential purposes, which are located within pre-determined 'Special Regeneration Areas' (SRAs).
There are three types of relief available:
- Owner-occupier residential relief;
- Rented residential relief; and,
- Commercial/Retail relief.
In 2016 officials from my Department reviewed the measure in consultation with the relevant councils and the then Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. On foot of that review, a number of changes were brought forward in Budget 2017 in order to make the initiative more attractive and effective. The principal change extended the residential element of the scheme to landlords, who may now claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property, which was built prior to 1915, where such property is to be used for residential purposes.
In relation to property-based reliefs more generally, taxation is only one of the policy levers available to the Government through which to boost overall housing supply. In line with my Department's Tax Expenditure Guidelines, consideration of whether a tax measure is the most appropriate policy tool for a given purpose is required. The presumption should be that non-tax measures should be considered before the use of a tax–based measure. The primary responsibility for direct expenditure based policy in this area lies with the Minister for Housing, Local Government and Heritage.
Finally, Ireland’s past experience with tax incentives in this sector strongly suggests the need for a cautionary stance.
Tax Code
Questions (90, 91, 92)
Ruairí Ó Murchú
Question:90. Deputy Ruairí Ó Murchú asked the Minister for Finance if he is satisfied with the way in which the obligations for the new valuation period of 2022 to 2025 for the local property tax was communicated to taxpayers; and if he will make a statement on the matter. [51609/21]
View answerRuairí Ó Murchú
Question:91. Deputy Ruairí Ó Murchú asked the Minister for Finance if additional supports will be made available to older persons who may have had family members avail of the local property tax online options previously and who remain unaware of the obligations for the new valuation period of 2022 to 2025; and if she will make a statement on the matter. [51610/21]
View answerRuairí Ó Murchú
Question:92. Deputy Ruairí Ó Murchú asked the Minister for Finance if taxpayers can defer the obligations for the new valuation period of 2022 to 2025 for the local property tax if they were unaware of the notice; and if he will make a statement on the matter. [51611/21]
View answerWritten answers
I propose to take Questions Nos. 90, 91 and 92 together.
Local Property Tax (LPT) is a self-assessed tax. As such, for the new ‘valuation period’ of 2022 to 2025, it is a matter for residential property owners themselves to determine the market value of their property as at 1 November 2021, calculate the LPT due and submit an LPT Return to Revenue by 7 November 2021. This is the case regardless of whether a property owner has received a formal notification from Revenue or not.
However, I am advised that Revenue has issued over 1.4 million notices to property owners, setting out what is required to meet Local Property Tax (LPT) obligations for the new ‘valuation period’. This includes approximately 200,000 hard-copy LPT returns to property owners who have not previously availed of the online options and may not be able to avail of, access or use the LPT online services.
In recent weeks, Revenue has commenced a comprehensive LPT media campaign, highlighting the obligations for the new ‘valuation period’ and the assistance available to enable property owners to fulfil their LPT obligations. Revenue spokespeople have taken part in several national and local media interviews and continue to do so. The LPT media campaign will continue over the coming weeks, in the lead up to the 7 November filing date, using both print and digital channels. I am also advised that Revenue has actively engaged with various representative groups to further enhance the public communications campaign.
The Revenue website includes a dedicated page outlining what property owners are required to do for the new ‘valuation period’. When determining the market value of a property for the new ‘valuation period’, property owners can use online sources, such as the Revenue interactive valuation tool, which can be found on the Revenue website. Other online sources include the Residential Property Price Register or property sales websites such as daft.ie and myhome.ie.
Where property owners cannot use these online facilities to value their properties, sources such as the property pages in newspapers (local and/or national) or checking the information displayed in local auctioneer offices can provide useful guidance. Property owners are not required to determine an exact valuation of their property, they are only required to value their properties within a ‘valuation band’. There are 20 valuation bands, the first band is €0 - €200,000, the second band is €200,001 - €262,500 and all other valuation bands are €87,500 wide.
To assist property owners who may be experiencing difficulties meeting their Return filing obligations Revenue is operating an LPT Helpline (01-7383626), which operates from 9.30am to 4.30pm, Monday to Friday. Property owners who have not received a notice from Revenue, or a hard-copy LPT Return and are unable to file online should contact the Helpline for assistance.
As part of the service the Helpline agents will assist with both the Return filing and payment selection processes. In advance of calling the Helpline, property owners will need to have determined the market value of their property so that the Return can be completed. They should also have their PPSN, Property ID and PIN to hand. The Property ID and PIN numbers can be found on any LPT correspondence previously received from Revenue.
In relation to the deferral of any LPT obligations, the LPT regime includes arrangements whereby a person may opt to defer, or partially defer (50%), payment of the tax in certain circumstances. These circumstances include income level, hardship and personal insolvency. They do not include the circumstances the Deputy has referred to in Question No. 51611/21, i.e. where a person was unaware of their obligations for the new ‘valuation period’. A liable person must make a claim for a payment deferral in writing to Revenue setting out his or her personal circumstances. Comprehensive information on the deferral arrangements are set out on the Revenue website.
Question No. 91 answered with Question No. 90.
Question No. 92 answered with Question No. 90.
Tax Code
Questions (93, 94)
Carol Nolan
Question:93. Deputy Carol Nolan asked the Minister for Finance if he will address concerns that the current system of tax individualisation may be discriminatory in practice as it penalises one income married couples by making it necessary for them to pay more tax than two income married couples; and if he will make a statement on the matter. [51624/21]
View answerCarol Nolan
Question:94. Deputy Carol Nolan asked the Minister for Finance if he will consider initiating a review of the current system of tax individualisation to ensure that it is not, either directly or indirectly, creating conditions in which it is more difficult for one spouse to remain at home without incurring additional tax liabilities as a one income married couple; and if he will make a statement on the matter. [51625/21]
View answerWritten answers
I propose to take Questions Nos. 93 and 94 together.
Background
Prior to 2000, income tax allowed for full joint assessment of married couples. This meant that the earner in a single income couple could use the combined tax credits and standard rate band available to both individuals – i.e. double the personal tax credit and rate band available to a single earner. As a result, where the primary earner of a couple had sufficient income to use the available reliefs in full, the second earner faced the marginal rate of tax from the first pound of income earned, which acted as a disincentive to workforce participation for second earners.
A process of moving towards an individualised system of income taxation began in the tax year 2000/2001 with the stated economic objectives of increasing labour force participation and reducing the numbers of workers paying the higher rates of income tax. Many European countries have made similar moves towards a partial or fully individualised income taxation system on the grounds that it improves equality and economic independence for women.
Individualisation was progressed to some extent in later years but never completed. The result is that we now have a hybrid system. Up to €9,000 of the standard-rate band can be transferred between spouses and the married personal tax credit, can be allocated in full to one spouse. Because the income tax system allows married couples to choose whether to be jointly or individually assessed, there can be a difference between the tax liabilities incurred by married couples on the same household income, depending on the method of assessment chosen.
However, in lieu of fully transferable rate bands, a Home Carer Tax Credit may be claimed where one spouse works primarily in the home to care for a dependent person, such as a child. This credit was introduced in the context of the move towards individualisation, in recognition of the choices made by families where one spouse stays at home to care for children or the elderly.
I would make the point that when looking at an issue such as individualisation there are a number of perspectives to consider, for example, on the one hand the points raised by the Deputy and also on the other hand the implications for labour force participation, in particular in respect of female participation in the labour market. There are of course other non-tax factors that also have significant impacts on female workforce participation, including the cost of childcare.
My Department keeps the issue of individualisation of the income tax bands under review. Most recently, the matter was considered in 2019 as part of the Tax Strategy Group deliberations ahead of Budget 2020. However, I have no immediate plans to revisit issue.
Tax Code
The Tax Code sets out the basis on which an individual is assessed to tax and provides for a significant number of credits, reliefs and exemptions, eligibility for which is subject to a wide range of conditions. While the basis of assessment and the credits, reliefs and exemptions available vary depending on the facts and circumstances applicable in each specific case, there is no discrimination in the Tax Code.
Basis of Assessment
Parts 44 and 44A of the Taxes Consolidation Act 1997 (TCA 1997) provide for joint assessment of a married couple or civil partners who live together. Where joint assessment applies, the couple are chargeable to tax on their combined total income. The couple may however apply to be assessed to tax separately, meaning that each individual is taxed as if he or she were not married or in a civil partnership. The couple may choose whichever basis of assessment is most beneficial to them, based on their personal circumstances.
Standard Rate Band
Section 15 of the TCA 1997 provides for the standard rate band, i.e. how much of an individual’s income is liable to tax at 20%. For the 2021 year of assessment, the standard rate band is €35,300 per person. In the case of a married couple or civil partner, each individual is entitled to a standard rate band of €35,300.
If the couple is jointly assessed to tax and either spouse or civil partner has insufficient income to fully utilise his or her own standard rate band, he or she may transfer a portion of their unused rate band to their spouse or civil partner. The maximum portion of the standard rate band which one spouse or civil partner may transfer to the other is €9,000 and any excess unused rate band above this amount cannot be transferred. This is the case irrespective of whether the couple has one or two incomes.
Tax Credits, Reliefs and Exemptions
Part 15 of the TCA 1997 provides for a wide range of tax credits, reliefs and exemptions. Whether or not such credits, reliefs and exemptions are available to an individual or couple depends on the circumstances of the specific case and the eligibility criteria for the individual credit, relief or exemption.
One such credit is the basic personal tax credit, which is provided for in section 461 of the TCA 1997. For the 2021 year of assessment, the basic personal tax credit is valued at €1,650 per person. In the case of a married couple or civil partnership, each spouse or civil partner will be entitled to his or her own basic personal tax credit of €1,650. Again, this is the case irrespective of whether the couple has one or two incomes.
The home carer tax credit of €1,600 is available to married couples or civil partners that are jointly assessed, where one spouse or civil partner stays at home to take care of a dependent person. The carer may earn up to €7,200 per year without affecting the amount of the credit awarded. Where the carer’s income exceeds €7,200, the amount of credit available is reduced by one half of the excess over €7,200, subject to a maximum income limit of €10,400.
Further information on the above may be accessed at the following links:
- Revenue website - www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/index.aspx
- Tax and Duty Manual Part 44-01-01 - www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf.
- Tax and Duty Manual Part 15-01-29 - www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-29.pdf
Question No. 94 answered with Question No. 93.
Banking Sector
Questions (95)
Catherine Murphy
Question:95. Deputy Catherine Murphy asked the Minister for Finance if his attention or that of his officials has been drawn to reports (details supplied) that the Central Bank is using off balance sheet structures to help in the concealment of losses; and if he or his officials have engaged with the Central Bank regarding the number of IBRC transactions that keep losses and liabilities off balance sheet. [51675/21]
View answerWritten answers
I am aware that officials in my Department have sought clarification from the Deputy in relation to this parliamentary question. If the nature of the question is clarified, a further reply can be provided directly.
The details supplied to this parliamentary question also makes reference to a media article from 2020. Mr David Tynan of PwC was appointed to the role of Assessor pursuant to the Anglo Irish Bank Corporation Act 2009 in November 2018.
The Assessor's report was published on the Department of Finance website on 12 May 2020 and the overall conclusion of this report is that the fair and reasonable aggregate value of the transferred shares and the extinguished rights in the bank as at 15 January 2009 for the purposes of payment of fair and reasonable compensation for the acquisition of those shares and the extinction of those rights was nil and therefore, that no compensation is payable to former shareholders of any class or to former rights holders.
The Assessor was appointed pursuant to the Anglo Irish Bank Corporation Act 2009 (the "Act"). Under the Act the Assessor is required to determine this value having regard to the following items:
- on the basis of the true financial state of Anglo Irish Bank on 15 January 2009, taking into account the underlying market values of Anglo Irish Bank’s assets and the extent of its actual, contingent and prospective liabilities on that date;
- having regard to the rights attaching to each class of transferred shares; and
- assuming that no financial assistance, investment or guarantee (other than the guarantee already provided under the Credit Institutions (Financial Support) Act 2008) would in future be provided to or made in Anglo Irish Bank, directly or indirectly, by the State.
The final report of the Anglo Irish Bank Assessor states that, in his opinion, absent the provision of recapitalisation funds from the Government that the former Anglo Irish Bank was unlikely to be able to continue to trade as it was "both cashflow and balance sheet insolvent", as at 15 January 2009.
The Project Atlas October 2008 report, which PwC prepared, was based on Anglo’s IFRS balance sheet as at 30 September 2008 which was after the Government bank guarantee. The report stated that the balance sheet showed that the bank’s assets exceeded its liabilities.
I note that the work conducted by the Assessor cannot be compared to the reports undertaken by PwC under Project Atlas given the different dates involved and the fact the Assessor's report was conducted on the assumption of no further future support being provided to the bank (in line with the requirements of the Act).
Departmental Contracts
Questions (96)
Carol Nolan
Question:96. Deputy Carol Nolan asked the Minister for Public Expenditure and Reform if he or any official from his Department has held meetings or conducted correspondence with a company (details supplied) from 1 January 2017 to date; if his Department has engaged the services of the company for any purposes from 1 January 2017 to date; if so, the nature of such services and the costs incurred; if a tender process was conducted; and if he will make a statement on the matter. [51359/21]
View answerWritten answers
I wish to advise the Deputy that my Department has not engaged any services from the named company during the period specified. I can also confirm that I have not engaged in any meetings or correspondence with the named company in my capacity as Minister for Public Expenditure and Reform. This is also the position that applies to officials of the Department.
Departmental Data
Questions (97)
Darren O'Rourke
Question:97. Deputy Darren O'Rourke asked the Minister for Public Expenditure and Reform if he will provide details of the up-to-date Government research his Department holds on the use of carbon tax funds (details supplied); and if he will make a statement on the matter. [51561/21]
View answerWritten answers
In summer 2020, the Government asked the ESRI to undertake analysis to determine whether the Irish carbon tax could be increased in a progressive manner, with impacts on lower-income households and poverty offset through additional spending on social welfare supports.
The resulting ESRI research paper, “Carbon Taxes, Poverty and Compensation Options ” published alongside Budget 2021 stated that expenditure levels of just €50m - €55m, less than one third of the expected revenues raised from a €7.50 increase, were sufficient to counteract the regressive nature of the increase. Allocations of this level would result in a reduction in the poverty rate and could leave the lowest two income deciles better off than before the increase.
In light of the ESRI research and the commitment to ensure that the carbon tax is progressive, the Government has committed to very significant increases in a targeted package of social protection supports in Budget 2022. These supports were selected to counteract the impact of the increased carbon tax on low income households. The specific measures are:
- An increase to the a Qualified Child Payment of €2 per week for children under 12 and €3 per week for children over 12 - This protects low income families and will reduce child poverty;
- An increase in the Living Alone Allowance of €3 per week - People living alone are often the elderly most at risk of poverty or people suffering from a disability. These groups are likely to have higher energy needs than average;
- An increase to the Fuel Allowance of €5 per week - This will compensate a broad range of lower income households (since the Fuel Allowance is means-tested) for the additional energy costs they are likely to incur due to an increase in the carbon tax. This will be combined with a broadening of the threshold for Fuel Allowance eligibility and an increase in the income allowed for the means test that is applied to applicants;
- An increase in the income threshold for the Working Family Payment of €10 per week – Research has found that children in energy poverty have a greater likelihood of respiratory illness. Using carbon tax funds to compensate low paid employees with children will lead to improved health outcomes, particularly when combined with the qualifying child payment.
The total cost of these interventions is projected at €146m in 2022. This will be funded by the additional carbon tax funds of €105m that have been allocated to the Department of Social Protection, with the remaining €41m cost met by the Exchequer. This allocation is nearly triple the level of expenditure recommended by the ESRI to ensure that that carbon tax increase is progressive.
Analysis undertaken in my Department before the publication of Budget 2022 using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package estimates that the net impact of the combined measures is progressive. Households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures. This is a tangible demonstration of the Government’s commitment to achieving a Just Transition.
Economic and Social Research Institute
Questions (98)
Darren O'Rourke
Question:98. Deputy Darren O'Rourke asked the Minister for Public Expenditure and Reform his views on the Economic and Social Research Institute report entitled Carbon Taxes, Poverty and Compensation Options 2020 cited by his Department as proof that carbon tax increases leave the lowest income fifth of households on average better off and reduces poverty, fails to take into account the huge increase in energy prices since its publication; and if he will make a statement on the matter. [51562/21]
View answerWritten answers
In summer 2020, the Government asked the ESRI to undertake analysis to determine whether the Irish carbon tax could be increased in a progressive manner, with impacts on lower-income households and poverty offset through additional spending on social welfare supports. The resulting report entitled "Carbon Taxes, Poverty and Compensation Options" paper examined how the Irish carbon tax can be raised without increasing poverty and disproportionately affecting low-income households.
The paper stated that expenditure levels of just €50m - €55m, less than one third of the expected revenues raised from a €7.50 increase, were sufficient to counteract the regressive nature of the increase. Allocations of this level would result in a reduction in the poverty rate and could leave the lowest two income deciles better off than before the increase.
In light of the ESRI research and the commitment to ensure that the carbon tax is progressive, the Government has committed to very significant increases in a targeted package of social protection supports in Budget 2022. These supports were selected to counteract the impact of the increased carbon tax on low income households. The specific measures are:
- An increase to the a Qualified Child Payment of €2 per week for children under 12 and €3 per week for children over 12 - This protects low income families and will reduce child poverty;
- An increase in the Living Alone Allowance of €3 per week - People living alone are often the elderly most at risk of poverty or people suffering from a disability. These groups are likely to have higher energy needs than average;
- An increase to the Fuel Allowance of €5 per week - This will compensate a broad range of lower income households (since the Fuel Allowance is means-tested) for the additional energy costs they are likely to incur due to an increase in the carbon tax. This will be combined with a broadening of the threshold for Fuel Allowance eligibility and an increase in the income allowed for the means test that is applied to applicants;
- An increase in the income threshold for the Working Family Payment of €10 per week – Research has found that children in energy poverty have a greater likelihood of respiratory illness. Using carbon tax funds to compensate low paid employees with children will lead to improved health outcomes, particularly when combined with the qualifying child payment.
The total cost of these interventions is projected at €146m in 2022. This will be funded by the additional carbon tax funds of €105m that have been allocated to the Department of Social Protection, with the remaining €41m cost met by the Exchequer.
The focus of the paper was exclusively on addressing the impact of carbon tax increases. However, the 2022 allocation is nearly triple the level of expenditure recommended by the ESRI to ensure that that carbon tax increase is progressive and follows a similarly sized package in Budget 2021.
This allocation of carbon tax revenue usage was announced in the context of a social welfare budget package worth an additional €558 million in 2022, with total spending on social protection measures expected to reach €23.3 billion. This is supplemented by a 100% Christmas bonus double payment to be paid in December 2021 at an estimated cost of over €313m and immediate implementation of the Fuel Allowance increases.
Analysis undertaken in my Department before the publication of Budget 2022 using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the specific compensatory welfare package, estimates that the net impact of the combined measures is progressive. Households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures.
I also note that the ESRI in their analysis of Budget 2022, have stated that the budget measures overall will compensate most households for rising prices and will result in lower levels of poverty. The ESRI also specifically noted that the Budget contained well-targeted reforms with clear policy objectives,
Horticulture Sector
Questions (99)
Ruairí Ó Murchú
Question:99. Deputy Ruairí Ó Murchú asked the Minister for Public Expenditure and Reform if considerations have been given to plant nurseries in relation to carbon tax and the reuse of carbon by LPG generators; and if he will make a statement on the matter. [51616/21]
View answerWritten answers
The Programme for Government committed to increasing the carbon tax to €100 euro per tonne by 2030. It also committed to hypothecating all of the revenues arising from these increases. It is estimated that, over the decade, this will provide an additional €9.5bn in spending that would not otherwise be available.
As per the commitment in the Programme for Government, all of the revenue that will be raised by these increases in carbon tax will be used to:
- Ensure that the increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition (Department of Social Protection);
- Provide €5 billion to part fund a socially progressive national retrofitting programme (Department of Environment, Climate and Communications);
- Allocate €1.5bn of additional funding to encourage and incentivise farmers to farm in a greener and more sustainable way (Department of Agriculture).
The specific programme measures in each sector are a matter for those Ministers receiving funding.
Departmental Contracts
Questions (100)
Carol Nolan
Question:100. Deputy Carol Nolan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she or any official from her Department has held meetings or conducted correspondence with a company (details supplied) from 1 January 2017 to date; if her Department has engaged the services of the company for any purposes from 1 January 2017 to date; if so, the nature of such services and the costs incurred; if a tender process was conducted; and if she will make a statement on the matter. [51363/21]
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I am advised that neither I nor any officials in my Department had any contact with the company identified by the Deputy during this period.
Sport and Recreational Development
Questions (101)
Seán Sherlock
Question:101. Deputy Sean Sherlock asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media when the announcement for the sports capital grant will be made. [51366/21]
View answerWritten answers
The Sports Capital and Equipment Programme (SCEP) is the primary vehicle for Government support for the development of sports and physical recreation facilities and the purchase of non-personal sports equipment throughout the country. The 2020 round of the SCEP closed for applications on Monday 1st March 2021. By the closing date, over 3,100 applications were submitted seeking over €200m in funding. This is the highest number of applications ever received.
The scoring system and assessment procedures were published earlier this year and all applications are being assessed accordingly. Approximately one thousand of the submitted applications were for 'equipment-only' projects. These applications were assessed first and grants with a total value of €16.6m were announced on the 6th August.
The remaining applications for capital works are now being assessed. This work is ongoing with allocations for all successful applications expected to be announced in the coming months.