Written Answers Nos. 292-311
292. Deputy Darren O'Rourke asked the Minister for Transport the estimated cost of establishing the TFI bike-sharing scheme in Galway city; the annual cost of running it; and if he will make a statement on the matter. [2654/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public and sustainable transport generally. The National Transport Authority (NTA) is responsible for the development and implementation of public transport and active travel infrastructure, allocating the funding provided by my Department at project level and working in conjunction with the relevant local authorities. This includes the project mentioned by the Deputy, namely the Galway Bike Sharing Scheme.
Noting the NTA's responsibilities in the matter, I have referred your question to the NTA for a more detailed reply. Please advise my private office if you do not receive a reply within 10 working days.
293. Deputy Pádraig O'Sullivan asked the Minister for Finance if there are local property tax exemptions for persons whose estates are not taken in charge; and if he will make a statement on the matter. [62951/21]
View answerOn the introduction of the Local Property Tax (LPT), the Government decided that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
The proceeds of the LPT are largely used in the general provision and maintenance of infrastructure, services and amenities in a local authority area. Accordingly, residential property owners in estates not yet taken in charge benefit from the expenditure of these proceeds in the same way as the owners of other residential properties in the general locality in terms of the provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. LPT is accordingly payable, regardless of whether or not an estate has been taken in charge.
The relevant planning and development matters fall under the responsibility of my colleague the Minister for Housing, Local Government and Heritage.
294. Deputy Niall Collins asked the Minister for Finance the actions that are open to him to deal with the concerns of many in respect of the rising costs of insurance for community centres; if he will consider the matter of public liability, employment liability and directors liability; if assurances will be given in relation to same given the importance of community centres to local communities; and if he will make a statement on the matter. [63013/21]
View answerAt the outset, it is important to point out that neither I, nor the Central Bank, can intervene in the provision or pricing of insurance products, which is ultimately a commercial matter for each provider.
However, this point notwithstanding, the Government is committed to reforming the Irish insurance environment through delivery of the Action Plan for Insurance Reform.
One of the key developments to date is the new Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Fleming. This Office is an important element of the Government's ambitious insurance reform programme to help to enhance competition, reduce costs and increase the availability of cover.
Since its establishment, the Office has held over 60 meetings with a wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on issues surrounding competition. Minister Fleming also recently met with the CEOs of the major insurance providers in Ireland to discuss a variety of issues with them, including expanding their risk appetite in underserved areas, such as those raised by the Deputy. Furthermore he has also met with niche providers who are seeking to expand their cover here.
Separately, the Office is also working closely with the IDA to bring, where possible, new entrants into the Irish insurance market and to improve the market's overall competitiveness. Officials are seeking to leverage the ongoing reform work for potential new market entrants and are identifying targets to engage with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market where some customers are encountering difficulties.
In conclusion, this Government is committed to securing a more sustainable and competitive market through seeking to deepen and widen the supply of insurance in Ireland. In this regard, it is my intention to work with colleagues across Government departments to ensure the timely implementation of the Action Plan as the best means of helping deliver this, including for community centres as outlined in the Deputy’s question.
295. Deputy Neale Richmond asked the Minister for Finance if he will consider introducing tax relief for those in the hospitality sector who wish to purchase food waste biodigesters; and if he will make a statement on the matter. [63061/21]
View answerSection 284 Taxes Consolidation Act (TCA) 1997 makes provision for a person carrying on a trade, who incurs capital expenditure on the provision of machinery or plant for the purposes of the trade, to claim capital allowances in respect of that expenditure. Capital allowances allow the wear and tear of plant and machinery be taken into account as a deduction for tax purposes. In general, such capital allowances are claimed at a rate of 12.5% annually, over eight years.
I am advised by Revenue that capital expenditure incurred on a food waste biodigester by a person carrying on a trade in the hospitality sector would appear to represent expenditure on plant and machinery for the purposes of capital allowances, and therefore to qualify for tax relief under current rules.
296. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence from a person (details supplied); if he will review the issue raised in paragraph two; if he will examine the matter and provide clarity on same; and if he will make a statement on the matter. [63064/21]
View answerThe objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis. It is an economy-wide scheme that operates across all sectors.
In money terms, the overall support provided to-date (13th January) by EWSS is over €7 billion comprising direct subsidy payments of €6.12 billion and PRSI forgone of €956 million to 51,900 employers in respect of over 706,700 employees.
As the Deputy may be aware, as announced on 9th December the enhanced rates of EWSS subsidy would apply for a further two months, December 2021 and January 2022. This will give certainty to businesses when they need it most.
The Government and I have been clear that there will be no cliff edge to supports for employers but we have also been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial costs to the Exchequer.
As such, from 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.
In relation to the Deputy’s specific question, the Government further announced on the 21 December 2021, that the EWSS will reopen for certain businesses who would otherwise not be eligible and that such businesses can continue to be supported until the expiry of the scheme on 30 April 2022. The new arrangements for EWSS will provide employers who have previously availed of EWSS but who are no longer eligible, with the opportunity to re-qualify for the scheme where they meet certain conditions. Broadly, to re-qualify the business must experience a 30% reduction in turnover, or customer orders during a particular reference period. Further details of the qualifying conditions can be located on my Department’s website at the following link- www.gov.ie/en/press-release/bf5d1-government-announces-significant-expansion-of-supports-for-businesses-affected-by-the-latest-public-health-restrictions/.
Employers that qualify for re-entry to the scheme will receive support on a prospective basis from 1 January 2022 onwards, and they can remain in the scheme until its expiry date (30 April 2022).
Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely.
297. Deputy Cian O'Callaghan asked the Minister for Finance the number of homes or dwellings that were completed by NAMA debtors in 2018, 2019 and 2020; the local authority areas in which they have been completed; the sale price; the number that have been sold to funds as private rented sector units, that is, non-household entities including homes that were pre-funded; and if he will make a statement on the matter. [63123/21]
View answerThrough working with debtors and receivers, NAMA’s residential delivery programme facilitated the completion of 10,052 units in the years 2018 to 2020. This total includes: 5,283 units directly funded by NAMA; and 4,769 new residential units completed on sites for which NAMA had funded planning permission, enabling works, legal costs or holding costs prior to disposal or refinance.
Table 1 below provides a breakdown by year of direct and indirect unit delivery.
Tables 2 and 3 provide a breakdown of unit delivery by local authority area and year.
Table 1: Residential units completed
|
|
2018 |
2019 |
2020 |
TOTAL 2018-2020 |
|
Directly Delivered by NAMA Debtors & Receivers |
2,516 |
2,009 |
758 |
5,283 |
|
Indirectly Delivered* |
1,729 |
1,618 |
1,422 |
4,769 |
|
Total |
4,245 |
3,627 |
2,180 |
10,052 |
*Indirectly delivered refers to new residential units delivered on former NAMA-secured sites which benefitted from NAMA asset management and/or funding prior to their sale or refinance
Table 2: Directly Delivered units by relevant local authority area, by year
|
|
2018 |
2019 |
2020 |
TOTAL 2018-2020 |
|
Dublin City Council |
423 |
373 |
202 |
998 |
|
Dun Laoghaire Rathdown County Council |
994 |
383 |
56 |
1,433 |
|
Fingal County Council |
338 |
439 |
199 |
976 |
|
South Dublin County Council |
120 |
184 |
55 |
359 |
|
Cork County Council |
225 |
231 |
119 |
575 |
|
Galway City Council |
37 |
33 |
0 |
70 |
|
Galway County Council |
8 |
12 |
0 |
20 |
|
Kildare County Council |
244 |
201 |
0 |
445 |
|
Meath County Council |
28 |
31 |
77 |
136 |
|
Monaghan County Council |
0 |
0 |
24 |
24 |
|
Wicklow County Council |
99 |
122 |
26 |
247 |
|
Grand Total |
2,516 |
2,009 |
758 |
5,283 |
Table 3: Indirectly Delivered units by relevant local authority area, by year
|
|
2018 |
2019 |
2020 |
TOTAL 2018-2020 |
|
Dublin City Council |
588 |
300 |
19 |
907 |
|
Dun Laoghaire Rathdown County Council |
78 |
36 |
47 |
161 |
|
Fingal County Council |
680 |
149 |
81 |
910 |
|
South Dublin County Council |
112 |
134 |
32 |
278 |
|
Carlow |
84 |
34 |
44 |
162 |
|
Cork City Council |
43 |
104 |
118 |
265 |
|
Cork County Council |
12 |
202 |
147 |
361 |
|
Galway City Council |
4 |
2 |
5 |
11 |
|
Galway County Council |
2 |
28 |
- |
30 |
|
Kildare County Council |
23 |
112 |
280 |
415 |
|
Limerick County Council |
5 |
54 |
63 |
122 |
|
Louth County Council |
- |
10 |
106 |
116 |
|
Meath County Council |
81 |
453 |
456 |
990 |
|
Sligo County Council |
17 |
- |
- |
17 |
|
Waterford County Council |
- |
- |
8 |
8 |
|
Wexford County Council |
- |
- |
8 |
8 |
|
Wicklow County Council |
- |
- |
8 |
8 |
|
Grand Total |
1,729 |
1,618 |
1,422 |
4,769 |
Sales Price
The percentage breakdown of the average gross sales prices for residential units directly funded and delivered by NAMA debtors and receivers, which sold in the period 2018 to 2020 is provided in Table 4 below.
Table 4: Average Sales Prices
|
Price Range |
% |
|
<€300k |
17% |
|
€300k-€500k |
61% |
|
>€500k |
22% |
|
Total |
100% |
Sold to Private Rented Sector
In the period 2018 to 2020, 1,099* newly built residential units were sold by NAMA debtors to firms operating in the Private Rented Sector.
*This figure excludes units in developments initially held as security by NAMA but subsequently refinanced by debtors or developed by third parties under licence (for which NAMA only receives a portion of the sale price related to the land value). It also excludes bulk sales of residential units for social housing to AHBs, local authorities and NARPS.
298. Deputy Pádraig O'Sullivan asked the Minister for Finance if a person (details supplied) will qualify for the help-to-buy-scheme; and if he will make a statement on the matter. [63211/21]
View answerThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997.
I am advised by Revenue as follows:
In addition to requiring that the new property is occupied as the sole or main residence of a first-time purchaser, the legislation also defines a ‘qualifying residence’ for the purposes of the scheme. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. Thus, for a property to qualify for the HTB scheme, it must not previously, at any time, have been used as a dwelling, or been suitable for use as a dwelling.
Revenue Tax and Duty Manual 15-01-46 outlines further guidance on what would be considered a “new” house.
As regards the specific case outlined in the Deputy’s question, given that the house was completed in 2012 and has been occupied for many years, albeit by the ultimate purchaser, the house would not be considered a qualifying residence for the purposes of HTB as it was previously suitable for use as a dwelling, and was in fact so used. In such circumstances, HTB relief would not be available.
299. Deputy Duncan Smith asked the Minister for Finance the response of his Department to the findings of the cost of disability in Ireland research report; the plans that will be made in quarter one 2022 in response to these findings; if he will implement an all-Department response which will be timescaled and measured to ensure that everyday costs are reduced for persons with disabilities; and if he will make a statement on the matter. [63222/21]
View answerI welcome the findings of this important report and note that it has been referred to the National Disability Inclusion Strategy Steering Group chaired by Minister of State Anne Rabbitte T.D. to consider what actions should follow.
I look forward to engaging with my Government colleagues and in particular with Minister of State Rabbitte in the matter.
300. Deputy Pearse Doherty asked the Minister for Finance when the Revenue Commissioners will grant relief to persons (details supplied) in County Donegal on contributions for 2020; and if he will make a statement on the matter. [63242/21]
View answerI am advised by Revenue that the tax agent representing the couple in question filed a tax return (Form 11) for the 2020 tax year on their behalf on 9 June 2021. The return included a claim for relief amounting to €10,900 in respect of pension contributions paid by the couple.
Revenue subsequently acknowledged to both the couple and the tax agent that the full amount of the relief claimed was granted, which reduced their tax liability for that year.
301. Deputy Cian O'Callaghan asked the Minister for Finance further to Parliamentary Question No. 203 of 7 December 2021, if he will examine and reform the timelines within the Financial Services and Pensions Ombudsman Act 2017 to provide greater protections for consumers; and if he will make a statement on the matter. [63267/21]
View answerI am assuming the Deputy is referring to Parliamentary Question No. 201 (proof No. 203) of 7 December last as it refers to the time limits for investigating a complaint by the Financial Services and Pensions Ombudsman (FSPO) and not Parliamentary Question No. 203.
In July 2017, legislative changes were made to the time limits for making complaints to the FSPO’s predecessor, the Financial Services Ombudsman’s Bureau. This introduced additional time limits for complaints in respect of a “long-term financial service”. These expanded time limits were included in the Financial Services and Pensions Ombudsman Act 2017 which established the FSPO. The definition of long term financial service was further refined in 2018 to ensure greater protections for consumers. It is not proposed to make further amendments to the time limits within the Act at this time.
I would also add that section 51 of the Act, governing time limits, prescribes that any complaint about a "long-term financial service", can be made not only within the standard period of six years of the date of the conduct complained of, but also within a period of three years of a certain "date of knowledge" as prescribed within the Act. In addition, the Ombudsman has a statutory discretion, regarding such complaints, to extend the time where there are reasonable grounds for requiring a longer period and it would be just and equitable in all the circumstances to do so.
I am advised that any jurisdictional determination, including in relation to time limits, is made by the Ombudsman on the basis of an in-depth assessment of the evidence available regarding the complaint, to ensure that the provisions of the Act are observed.
302. Deputy Christopher O'Sullivan asked the Minister for Finance if consideration will be given to reducing the VAT on building supplies to help with the cost of building new homes; and if he will make a statement on the matter. [63286/21]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. Under the EU VAT Directive and Irish VAT legislation the supply of building materials is liable to VAT at the standard rate, which in Ireland is currently 23%. In general, Member states are not permitted to apply a VAT rate lower than the standard rate to such supplies. By way of special derogation from the general rule, however, Ireland is permitted to continue its long-standing practice of applying a reduced rate, currently 13.5%, to the supply of ready-to-pour concrete and certain concrete blocks but there are strict restrictions on this derogation, including that the rate cannot be reduced below 12%.
In relation to the supply of construction services, most Member States apply the standard rate of VAT whereas Ireland applies its 13.5% reduced rate of VAT to all construction services under a derogation from the EU VAT Directive.
It is important to note that while the suppliers of new homes are required to charge VAT on sales of new homes at the reduced 13.5% rate, they are generally entitled to full recovery of any VAT incurred in the development of that property, including for example VAT at the standard rate on building materials used. This means that , even if it were permitted by the Directive, a reduction in the rate of VAT on building materials would not lead to a reduction in the cost of supplying new homes because the VAT charged on the materials and services used in construction is already recoverable by the suppliers of the homes.
303. Deputy Richard O'Donoghue asked the Minister for Finance the number of litres of white diesel, green diesel, kerosene and petrol that were imported here in 2019, 2020 and to 30 November 2021; the number of tonnes of coal and briquettes that were imported here in 2019, 2020 and to 30 November 2021; and if he will make a statement on the matter. [63371/21]
View answerI am informed by the Sustainable Energy Authority of Ireland that the level of imports for the fuels concerned is as set out in the table below. Please note that 2021 figures are provisional.
|
Fuel type |
Market flow |
Products |
Units |
2019 |
2020 |
Jan-Nov 2021 |
|
Oil Products |
Imported |
Road Diesel |
kilolitres |
3,391,883 |
2,786,272 |
2,958,789 |
|
Oil Products |
Imported |
Gasoil |
kilolitres |
305,845 |
367,401 |
255,347 |
|
Oil Products |
Imported |
Kerosene |
kilolitres |
412,546 |
446,588 |
378,175 |
|
Oil Products |
Imported |
Petrol |
kilolitres |
737,535 |
590,255 |
271,593 |
|
Solid Fuels |
Imported |
Coal |
kilotonnes |
439 |
455 |
Not Yet Available |
|
Solid Fuels |
Imported |
Peat* |
kilotonnes |
0 |
0 |
Not Yet Available |
*Peat imports for energy use.
304. Deputy Pearse Doherty asked the Minister for Finance the effective tax rate inclusive of the full rate of PRSI on annual earnings for a single taxpayer in percentage terms in each of the years 2011 to 2021 for incomes between €100,000 and €200,000 in intervals of €10,000. [63385/21]
View answerAs part of the Budget each year, data on the average effective tax rates for a range of earnings are published and can be located in the Tax Policy Changes document at the following link -www.gov.ie/en/publication/7e491-taxation-measures/.
My Department has prepared Table 1 below which sets out the effective tax rates for a single individual taxpayer (Class A – Full PRSI), for the period 2011 to 2021 inclusive, for the various income ranges requested by the Deputy.
Table 1: Single Individual Taxpayer (Full PRSI) - Effective Tax Rates on Annual Earnings
305. Deputy Sorca Clarke asked the Minister for Finance if his attention has been drawn to the lack of insurance providers for community groups; if consideration has been given to the State providing cover in such cases; and if he will make a statement on the matter. [63412/21]
View answerAt the outset, it is important to point out that neither I, nor the Central Bank, can intervene in the provision or pricing of insurance products, which is ultimately a commercial matter for each provider. This position is reinforced by EU legislation, specifically the Solvency II Directive.
However, this point notwithstanding, the Government is committed to reforming the Irish insurance environment through delivery of the Action Plan for Insurance Reform.
One of the key developments to date is the new Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Fleming. This Office is an important element of the Government's ambitious insurance reform programme to help to enhance competition, reduce costs and increase the availability of cover.
Since its establishment, the Office has held over 60 meetings with a wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on issues surrounding competition. Minister Fleming also recently met with the CEOs of the major insurance providers in Ireland to discuss a variety of issues with them, including expanding their risk appetite in underserved areas, such as those raised by the Deputy. Furthermore, he has also met with niche providers who are seeking to expand their cover here.
Separately, the Office is also working closely with the IDA to bring, where possible, new entrants into the Irish insurance market and to improve the market's overall competitiveness. Officials are seeking to leverage the ongoing reform work for potential new market entrants and are identifying targets to engage with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market where some customers are encountering difficulties.
In conclusion, this Government is committed to securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland. In this regard, it is my intention to work with colleagues across Government departments to ensure the timely implementation of the Action Plan as the best means of helping deliver this, including for the sectors outlined in the Deputy’s question.
306. Deputy Thomas Gould asked the Minister for Finance the grants available to a person with a disability in need of an adapted vehicle. [63415/21]
View answerThe Department of Finance does not provide any grants for the purchase of a vehicle but instead administers the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme which provides relief from VAT and VRT (up to a certain limit) set against the purchase and use of an adapted car, and for transport of a person with specific severe and permanent physical disabilities. The Scheme also provides payment of a Fuel Grant, and an exemption from Motor Tax. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.
The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle.
In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal.
To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled. The terms of the Disabled Drivers and Disabled Passengers Scheme set out six medical criteria, at least one of which is required to be satisfied in order to obtain a Primary Medical Certificate. The criteria are as follows:
- Be wholly or almost wholly without the use of both legs.
- Be wholly without the use of one of their legs and almost wholly without the use of the other leg such that they are severely restricted as to movement of their lower limbs.
- Be without both hands or without both arms.
- Be without one or both legs.
- Be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg.
- Have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
307. Deputy Ged Nash asked the Minister for Finance the reason that he approved, as the majority shareholder in a bank (details supplied), an arrangement whereby mortgages transferring from a bank are to be outsourced to and serviced by a company once the business is transferred to the bank; and if he will make a statement on the matter. [63416/21]
View answerAs the Deputy may be aware, as Minister for Finance, I have no role in the commercial decisions made by any bank in the State. This includes banks in which the State has a shareholding.
Decisions in this regard, including the specific servicing arrangements for a loan book, are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market. The Permanent TSB Relationship Framework can be accessed on my Department's website.
Officials from my Department contacted Permanent TSB on this matter and the following comment was provided:
"It is currently envisaged that Permanent TSB will partner with Pepper Finance Corporation (Ireland) DAC trading as Pepper Asset Servicing (“Pepper”) to support the servicing of the Ulster Bank mortgage book being acquired by Permanent TSB.
"This servicing arrangement will have no impact on customers and is subject to the completion of contractual and regulatory processes. Any employees who may have a right to transfer to Pepper will also be offered a role within Permanent TSB. Pepper Finance Corporation (Ireland) DAC trading as Pepper Asset Servicing (“Pepper”) is regulated by the Central Bank of Ireland".
308. Deputy Jackie Cahill asked the Minister for Finance if the sale of greyhounds for racing is considered a hobby and therefore the proceeds from same are not taxable; and if he will make a statement on the matter. [63457/21]
View answerThere is no specific income tax relief available for the sale of greyhounds for racing. However, I am advised by Revenue that an individual’s ownership and racing of greyhounds is generally considered a “hobby” or a “recreational activity” and therefore outside the scope of the income tax system.
Where a greyhound maintained as part of a hobby activity is sold, any profit arising on the sale is not liable to income tax. This also means that any associated costs incurred, or losses suffered, in relation to the greyhound are not deductible for tax purposes.
This treatment does not apply to greyhound breeders. Profits or gains arising from the sale of stud greyhound services is generally considered a trading activity and any income from the sale of those services and related activities must be taken into account in computing the taxable income of the trade.
In determining whether an individual is trading, each situation would need to be considered based on its own particular facts. As set out above, whether the proceeds of sale are taxable or fall outside the scope of income tax for the individual depends on whether the sale is made as part of a trading activity or a hobby activity.
In relation to Value-Added Tax (VAT), the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that supplies of goods and services are chargeable to VAT at the standard rate. However, Ireland by way of derogation from the general rule is permitted to continue to apply a reduced rate, currently 13.5%, to the supply of live greyhounds.
Under VAT law, traders/businesses are required to register for VAT where their taxable supplies exceed certain thresholds. Where a VAT-registered trader/business is engaged in the sale of live greyhounds they are required to charge VAT on those supplies at the appropriate reduced rate.
Individuals acting in their private capacity are not VAT-registered traders, and so they are generally not required to charge VAT on anything they sell, including live greyhounds.
309. Deputy Niamh Smyth asked the Minister for Finance if correspondence will be reviewed in relation to a primary medical certificate appeal by a person (details supplied); the status of the appeal; and if he will make a statement on the matter. [63559/21]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons who also meet one of six specified medical criteria, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant. In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire. I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
The medical criteria were included in the Finance Act 2020, by way of amendment to Section 92 of the Finance Act 1989. This amendment arises from legal advice in light of the June 2020 Supreme Court judgement that the medical criteria in secondary legislation was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989 (primary legislation).
I can confirm that a request for an appeal from the individual named in the details supplied, was received on 20th December 2021. The members of the DDMBA wrote to me recently tendering their resignation from the Board. Work is now ongoing in my Department to appoint a new Board as quickly as possible. With this in mind, my officials are engaged with the Department of Health and the Public Appointments Service in terms of seeking expressions of interest from medical practitioners to participate in the Board. It is hoped to move this process along as quickly as possible so that appeals can recommence early in the new year.
I should point out that assessments by the HSE are continuing to take place.
310. Deputy Sorca Clarke asked the Minister for Finance the number of persons in counties Longford and Westmeath, respectively, currently being supported by the employment wage subsidy scheme; the number of businesses in each county currently availing of the business resumption support scheme and the Covid restrictions support scheme, respectively; and if he will make a statement on the matter. [63590/21]
View answerAs the Deputy may be aware, Revenue has published, since the onset of the pandemic, regular statistical updates on the COVID-19 support schemes that it administers. These statistics are available at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx.
It should be noted that updates are provided each week at the same link. The latest statistics release from 13 January 2022 shows the employers and employees being supported by the Employment Wage Subsidy Scheme (EWSS) by county for the most recent month available, i.e. currently December 2021. The release also shows information on those businesses currently being supported by the COVID Restrictions Support Scheme (CRSS).
Registration for the Business Resumption Support Scheme (BRSS) opened on 6 September 2021 and the scheme concluded on 30 November for new applicants. The statistics release dated 6 January 2022 at the above link shows the breakdown by county of the businesses that availed of the scheme.
The table below provides the EWSS, CRSS and BRSS data requested by the Deputy in respect of Counties Longford and Westmeath:
|
County |
EWSS Supported Employers (December 2021) |
EWSS Supported Employees (December 2021) |
Businesses Supported by CRSS (claim periods 20 December 2021 onwards ) |
Businesses Supported by BRSS (since scheme introduced) |
|
Longford |
170 |
1,178 |
10 |
20 |
|
Westmeath |
460 |
4,055 |
50 |
40 |
311. Deputy Róisín Shortall asked the Minister for Finance if he is giving consideration to the situation arising for some pensioners who due to the broadly welcomed €5 increase in the State pension are now paying more tax on their workplace pension leaving them financially worse off; and if he will make a statement on the matter. [63600/21]
View answer344. Deputy Claire Kerrane asked the Minister for Finance when the annual exemption limits for persons aged 65 years and over for the payment of tax on pensions was last reviewed and increased; and if he will make a statement on the matter. [1883/22]
View answer345. Deputy Claire Kerrane asked the Minister for Finance if he will review current taxation policy for the payment of tax for older couples in receipt of the State pension in cases in which they have a modest occupational pension from work given they contributed to that pension throughout their working life and payment of such tax now erodes their tax credits and lessens their weekly income; and if he will make a statement on the matter. [1884/22]
View answerI propose to take Questions Nos. 311, 344 and 345 together.
Where a person is in receipt of the State pension from the Department of Social Protection (DSP) and has an additional source of income such as an occupational pension, the mechanism used to tax payments from the DSP, is by reducing the person’s annual tax credits and rate band by the annual amount of their DSP income. This ensures that their weekly payment from the DSP is paid gross to the recipient, while their weekly/monthly occupational pension paid by their pension provider will have any tax due on the DSP income and on the occupational pension deducted from it.
I am aware that, depending on a person’s circumstances, increases in weekly DSP payments may result in higher tax deductions from a person’s occupational pension and a reduced weekly/monthly net occupational pension. However, over the course of a year as a result of the increased payment, a person’s combined net income from their occupational and State pensions after the increase will always be higher than it was before the increase.
If the Deputy wishes to provide details of any specific individual concerned, I will ask Revenue to review the case to ensure that the person is not suffering excessive tax deductions.
In relation to the annual age exemption limits, section 188 of the Taxes Consolidation Act 1997 (TCA 1997) provides for these exemptions and associated marginal relief. Where the age exemption applies the claimant’s income will be exempt from income tax in that year.
The age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
Marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40% on all income above the exemption limit to a ceiling of twice the exemption limit. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system. It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is always given the benefit of the more favourable treatment between the use of marginal relief or the normal tax system of credits and bands.
Further guidance on the application of the age exemption and marginal relief can be found on Revenue’s website in Tax and Duty Manual Part 07-01-18, which may be accessed at the links below:
- Revenue website: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/marital-and-civil-status/exemption-and-marginal-relief/marginal-relief.aspx
- Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-18.pdf.
The age exemption limits were last increased in Budget 2008. In common with other personal tax credits and reliefs, and in the context of the financial crisis, they were reduced to their current levels in Finance Act 2011.
Additional guidance on a range of other tax credits and reliefs which may be available for individuals over 65 years of age can be found in Tax and Duty Manual Part 15-01-26, which can be located at the following link – Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-26.pdf.
In addition, it is also worth pointing out that the State Contributory Pension and the State Non-Contributory Pension are not chargeable to Universal Social Charge or Pay Related Social Insurance.
