Written Answers Nos. 312-331
312. Deputy Peadar Tóibín asked the Minister for Finance if a farmer who sells rights to a phone mast on their land to a private company is exempt from paying VAT on the sale of the phone mast by virtue of the fact that they are a farmer; and if he will make a statement on the matter. [63602/21]
View answerThe 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.
I am advised by Revenue that, in general, the supply of rights to a phone mast by a VAT-taxable person is a taxable event and subject to the standard rate of VAT, which is currently 23% in Ireland. However, the letting/leasing by a farmer of the land on which a phone mast is situated could be exempt.
Without additional information in relation to this particular transaction it is not possible to definitively answer the Deputy’s question.
313. Deputy Róisín Shortall asked the Minister for Finance if he has held discussions with the banking sector regarding the need to ensure a better service for older and vulnerable customers, for example, a dedicated direct phone line for older customers so that they can have a quick, easy and helpful reply to queries they may have or a dedicated desk in branches for older and vulnerable customers; and if he will make a statement on the matter. [63610/21]
View answerMany retail banks do have dedicated phone lines and priority services which were established to assist older and more vulnerable customers during the COVID-19 crisis.
While the creation of dedicated phone lines/desks in branches remains a commercial decision for each regulated entity, both the Central Bank and I expect all regulated firms to take a consumer-focused approach and to act in their customers’ best interests, particularly in dealings with vulnerable consumers.
The Central Bank’s Consumer Protection Code 2012 (“the Code”) states that: “Where a regulated entity has identified that a personal consumer is a vulnerable consumer, the regulated entity must ensure that the vulnerable consumer is provided with such reasonable arrangements and/or assistance that may be necessary to facilitate him or her in his or her dealings with the regulated entity.”
Under the Code a “vulnerable consumer” means a natural person who:
a) has the capacity to make his or her own decisions but who, because of individual circumstances, may require assistance to do so (for example, hearing impaired or visually impaired persons); and/or
b) has limited capacity to make his or her own decisions and who requires assistance to do so (for example, persons with intellectual disabilities or mental health difficulties).
Further, in light of the changing landscape for banking in Ireland I have instructed my Department to undertake a broad-ranging review of the retail banking sector. The Retail Banking Review has commenced its work and is currently in its research phase. As part of the Review, a survey of consumers will be undertaken in the coming months to ascertain their experience and perceptions of the retail banking sector in Ireland.
There will also be a public consultation process this year where members of the public can make a submission to the Department of Finance on issues that fall within the Terms of Reference.
314. Deputy Mick Barry asked the Minister for Finance if he will consider a review of the regulations in relation to the application of VAT and customs duty on gifts coming into the State from outside the European Union given many small gifts are subject to large fees upon arrival here; if a system will be agreed to that will exempt items sent as gifts that are under a reasonable threshold; and if he will make a statement on the matter. [63627/21]
View answer319. Deputy Colm Burke asked the Minister for Finance if his Department will consider increasing the threshold for relief on importation of gifts from non-EU countries from customs duty of €45 in order to support families receiving gifts outside of the EU; and if he will make a statement on the matter. [1150/22]
View answerI propose to take Questions Nos. 314 and 319 together.
I am advised by Revenue that the provisions for the relief of Customs Duty and VAT for gifts sent from one private individual in a non-EU country to another private individual in Ireland are set out in European legislation.
Under EU legislation, the relief of Customs Duty and VAT for gifts applies where the Customs Value of the gift sent is less than €45. The Customs value is the value of the item plus the cost of transport and insurance. This also includes the cost of postage where gifts are sent via the postal network.
The relief for gifts is agreed and harmonised at EU level and the provisions are common throughout all Member States in the European Union. It is not possible for Ireland to implement any measures to change the limits that are not in compliance with this legislation.
315. Deputy Pa Daly asked the Minister for Finance the communications he has received from a person (details supplied) in relation to a specific product or group of products. [1039/22]
View answerI have not received any communications from the named individual or the named organisation.
316. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the estimated financial contribution from tax revenue to the State from a company (details supplied). [1041/22]
View answerRevenues received from individual companies are not published. However, the Revised Estimates Volume 2022 notes that revenue earned by the State from mining and minerals prospecting in 2018, 2019 and 2020 was €6.3million, €5.8 million and €6.1 million respectively.
317. Deputy Catherine Murphy asked the Minister for Finance if he or the Revenue Commissioners plan to review the list of tax exempt charitable organisations in order that climate and environmental charities are better represented. [1050/22]
View answerIt is not the role of either my Department or Revenue to review the published list of tax-exempt charitable organisations to improve the representation from a particular sector.
It is up to individual bodies to apply to the Charities Regulator (CRA) for charitable status. The CRA is responsible for maintaining the public register of charitable organisations and determining whether an organisation’s activities meet the ‘charitable purposes’ test.
Once a charity is registered with the CRA, it can apply to Revenue for charitable tax exemption. Revenue compiles the list of tax-exempt charitable organisations which it is satisfied have met the relevant conditions to be granted charitable tax exemption and continue to comply with these conditions. The nature of an organisation’s activities is not one of the relevant conditions for obtaining, and maintaining, charitable tax exemption.
I am advised by Revenue that to apply for charitable tax exemption an organisation is required to submit the application form “Charities and Sports Bodies e-application” online through the Revenue Online Service (ROS). The charity’s application for tax exemption must include:
- the entity’s latest financial accounts or details of its financial plans,
- a statement of its activities and plans, and
- a copy of the charity's constitution which has been approved by the CRA.
Once the charity has been granted tax exemption, Revenue will issue a Charitable Tax Exemption Number or CHY Number. The charity does not need to renew its exemption provided it continues to meet the conditions for retaining the exemption.
Once Revenue grants a CHY Number to a charity, it must:
- remain tax compliant,
- maintain its charitable status with the CRA and comply with the Charities Act 2009,
- use all income for its main charitable purpose only,
- keep proper records and accounts,
- submit a copy of its first year’s financial accounts within 18 months of receiving the exemption,
- keep audited accounts if its annual income is over €100,000,
- notify Revenue’s Charities and Sports Exemptions Unit of any change of details, and
- request prior approval from Revenue’s Charities and Sports Exemptions Unit if the charity intends to accumulate funds for more than two years along with the reasons for the accumulation.
Further information on the charitable tax exemption, including links to the list of bodies with the exemption, is available on the Revenue website.
318. Deputy Catherine Murphy asked the Minister for Finance if he will clarify the position regarding an individual donor for tax relief on donations to a charity that does not currently have tax-exempt status in the State (details supplied). [1051/22]
View answerThere are no restrictions on an individual making a donation to an organisation that has tax exempt status in another country. However, I am advised by Revenue that the only organisations established outside the State which will receive tax relief from Revenue on such donations under the Charitable Donation Scheme are bodies, established in a European Economic Area (EEA) state, a European Free Trade Area (EFTA) state, or the United Kingdom, which have received a notice of determination from Revenue under section 208A Taxes Consolidation Act 1997 (TCA) at least two years before applying for authorisation under the scheme.
Section 848A TCA provides for the Charitable Donation Scheme, which is a scheme of tax relief for donations to eligible charities and other approved bodies. An “eligible charity” means any charity which is authorised in writing by Revenue for the purposes of this scheme. An authorisation will not issue unless the applicant charity:
- is a body of persons or trust established for charitable purposes only, and
- applies its income for charitable purposes only, and
- if it was a body established in the State and it has been granted exemption from tax (i.e. assigned a Charitable Tax Exemption Number (CHY)) by Revenue for a period of not less than two years prior to the date of application for authorisation or
- as outlined above, if it was a body established in an EEA State (EU countries and Iceland, Liechtenstein and Norway), an EFTA State (Iceland, Liechtenstein, Norway and Switzerland) or in the United Kingdom, it received a notice of determination from Revenue under Section 208A TCA at least two years prior to the date of the application for authorisation.
Where an individual makes a charitable donation under the scheme, the “approved body” receiving the donation can claim a refund of income tax paid by the individual at a blended 'grossed-up' rate of 31%, up to the amount of tax actually paid by the donor. The requirements of the scheme include:
- the minimum donation by an individual which qualifies for relief is €250 per annum,
- the maximum amount an individual can donate under the scheme to an approved body or approved bodies is €1 million,
- the donor or anyone connected with the donor cannot get a benefit of any kind resulting from the donation,
- the donation must not be repayable, and
- the donation must not be conditional on, or associated with, any arrangement involving the acquisition of property by the approved body.
Tax relief under section 848A TCA in respect of donations made by individuals (whether self-assessed or PAYE only taxpayers) is paid to the approved body rather than to the donor.
Further information on the Charitable Donation Scheme, including links to the list of bodies with the Charitable Tax Exemption, can be found in Revenue’s Tax and Duty Manual 36-00-17 “Charitable Donations Scheme, Tax relief for Donations to Approved Bodies” on Revenue’s website.
320. Deputy Ged Nash asked the Minister for Finance the number of companies registered under the employment wage subsidy scheme that have been subjected to audit under the compliance programme of the Revenue Commissioners to 31 December, 2021; the amount that has been clawed back as a consequence of the programme as a result of initiated contact by the Revenue Commissioners and as a result of voluntary amendments made by companies liable to repay subsidies; the amount outstanding; and if he will make a statement on the matter. [1192/22]
View answer322. Deputy Ged Nash asked the Minister for Finance the number of companies that were eligible for the employment wage subsidy scheme that have voluntarily returned funding paid out under the scheme up to 31 December 2021; the number of companies that have paid back the full amount they received over the period of their use of the scheme; if the Revenue Commissioners will provide the names of the companies that have done so to date; and if he will make a statement on the matter. [1194/22]
View answerI propose to take Questions Nos. 320 and 322 together.
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 in respect of eligible employees.
As the Deputy will be aware, eligibility to EWSS is based on the employer demonstrating that its business is likely to experience a 30% reduction in turnover or orders during a specific reference period and that this disruption to business is caused by the Covid-19 pandemic. In addition, the business must also have tax clearance.
Since the introduction of the scheme, each employer availing of the scheme must carry out a self-review of its business circumstances at the end of each month 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. For July to December 2021, employers provide to Revenue details of this eligibility review on a monthly Eligibility Review Form (ERF), filed through ROS.
Revenue’s administration of the scheme is on a self-assessment basis, with employers claiming the subsidy through their payroll submission, by including a marker on payslips where the subsidy is being claimed. If employers subsequently determine they are not eligible, or they wish to voluntarily remove themselves from the scheme, they can do so by removing the marker from the submissions and repaying the subsidies claimed, without contacting Revenue.
I am advised by Revenue that it undertakes a multi-faceted approach to compliance checks to safeguard the integrity of the EWSS. This includes real time risk-based checking of submissions and cross-referencing claim data against other Revenue data sources to identify anomalies or trends requiring attention. The real time checking procedures are supported by engagement with employers, to facilitate timely resolution of issues, and to ensure employers claim the correct EWSS entitlement, or cease claiming where they no longer have an entitlement.
I am further advised that Revenue is also carrying out a risk-focused follow-up program of compliance interventions. In most instances, agreement is reached and any EWSS overpaid is recouped or the liability is warehoused under the Debt Warehouse Scheme. Where issues are identified and agreement is not reached, Revenue will raise a notice of assessment which is collectible in the same manner as any outstanding tax. Employers have the right to submit an appeal to the Tax Appeals Commission (TAC) within 30 days of the assessment. There are currently 60 assessments raised for the amount of €5.1 million of which 4 have been appealed for the amount of €1million.
Revenue have audited 212 registered companies under the EWSS via their compliance programme to 31 December 2021. Revenue have advised that 77 of these audits have been finalised, yielding almost €1.5 million and 135 are ongoing. An additional 5,594 registered employers have been subject to a compliance check under the compliance programme to 31 December 2021. Overall, Revenue has finalised EWSS related interventions with 3,500 employers, recouping €19.2 million, which equates to 0.3% of the total subsidy paid. There are further compliance checks with 2,306 employers ongoing, which will be finalised in due course.
Finally, I am advised by Revenue that since the scheme commenced, a total of 16 employers advised Revenue they were voluntarily removing themselves from the scheme, 9 of whom withdrew and fully repaid nearly €21 million and 7 withdrew and partially repaid just over €4.5 million. A total of 402 employers have repaid in full all subsidies claimed, totalling approximately €52 million with an additional 3,331 making partial repayments totalling approximately €54 million. This figure includes employers who deemed themselves ineligible as part of the monthly eligibility review process and repaid subsidy monies in line with the scheme requirements. Employers were not required to indicate the reason for a repayment, therefore Revenue is not in a position to provide a breakdown between those employers who repaid due to ineligibility, arising from employer self-assessment or a compliance check and those who voluntarily repaid.
Due to taxpayer confidentiality as enshrined in Section 851A of the Taxes Consolidation Act 1997, Revenue are not in a position to provide the names of employers who have paid back subsidy payments.
321. Deputy Ged Nash asked the Minister for Finance the number of firms that have benefitted from the temporary wage subsidy scheme that were found to have not met the requirements for eligibility for the scheme; the amount that has been returned as a result; the amount outstanding in terms of repayments as of 31 December 2021; and if he will make a statement on the matter. [1193/22]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which closed on 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020, provided financial support to approximately 67,500 employers in respect of 689,000 employees. The total cost of the scheme was c. €2.9 billion.
As part of the administration of the TWSS, Revenue carried out a programme of compliance checks on all employers who participated in the scheme to ensure that they were eligible to receive the supports and to ensure the funds were paid out to qualifying employees. Revenue have advised that 99.8% of these checks have been completed, with 153 cases ongoing. To date, Revenue has recouped over €31.5 million in overpayments from 1,786 participating employers, which represents around 2.7 %.
In addition, Revenue also completed a TWSS reconciliation scheme which identified an aggregate liability of €308 million, the majority of which related to the transitional period of the scheme, operated up to 5 May 2020, when €410 per week was paid to employers in respect of eligible employees. Therefore, when the compliance and reconciliation exercises are combined the aggregate amount of TWSS identified for recovery amounted to €324 million. To date, €256 million of this amount has been repaid to Revenue and €58 million is included in the tax debt warehouse. This leaves a balance of €10 million, of which €3 million is subject to appeal, and the remaining €7 million is in the process of being collected.
323. Deputy Ged Nash asked the Minister for Finance if he will request that the Revenue Commissioners undertake an examination of all companies that have benefitted from both the temporary wage subsidy scheme and the employment wage subsidy scheme to establish the extent to which relevant companies have paid out dividends to shareholders while benefitting from Covid-19 related wage subsidies; and if he will make a statement on the matter. [1195/22]
View answer324. Deputy Ged Nash asked the Minister for Finance if he plans to introduce new conditions on firms in relation to the use of and access to the employment wage subsidy scheme; his views on the fact that some companies have paid dividends to shareholders in the same financial year in which they have accessed State wage subsidies; and if he will make a statement on the matter. [1196/22]
View answerI propose to take Questions Nos. 323 and 324 together.
The Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS) which is provided for in section 28B of the Emergency Measures in the Public Interest (COVID-19) Act 2020, as amended. The EWSS remains in operation until 30 April 2022.
The key eligibility criteria for the TWSS were that the business was suffering significant negative economic impact due to the pandemic, the employees were on the payroll at 29 February 2020, and the employer had fulfilled its PAYE reporting obligations for February 2020 before 1 April 2020, at the latest.
As regards eligibility for the EWSS, an employer must be able to demonstrate that its business has experienced a 30% reduction in turnover or orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Furthermore, the employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme. Where an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer can claim an EWSS subsidy in respect of that employee.
As I have said previously, the primary purpose of the COVID wage subsidy schemes is to ensure, as much as possible, that employers keep employees in employment, thereby maintaining the employer/employee relationship, so that normal operations can quickly restart once the restrictions are lifted, rather than making them redundant and eligible for the Pandemic Unemployment Payment (PUP). These emergency support schemes were developed to deal with a situation where businesses were restricted from trading due to public health guidelines and not because of any economic or other trading conditions. It was considered that the best metric to determine the impact of the public health restrictions was a decline in turnover. At the outset of the restrictions nobody could anticipate how long or what impact the restrictions would have or how businesses or customers would react. Qualification for TWSS, and subsequently EWSS, was based on projections of the business.
The legislation enacted by the Oireachtas places the administration of the subsidy schemes under the care and management of Revenue, which includes ensuring that this very significant investment of public funds is properly allocated to eligible employers and businesses in line with the legislation enacted by the Oireachtas.
The eligibility criteria for the wage subsidy schemes, as provided for in legislation, do not include any conditions related to the payment by a company of a dividend or dividends to its shareholders. Thus, there is no impediment to employers paying dividends to its shareholders and this is a business decision for a company to take based on its financial circumstances.
The Office of the Revenue Commissioners is statutorily independent in how it conducts its activities so it would not be appropriate for me to request Revenue to conduct an examination of companies who have paid out dividends, while also receiving State supports. In any event, the fact that the legislation does not prohibit the practice would seem to make such an examination inappropriate.
As regards the Deputy’s second question on whether I propose to introduce new conditions on employers in relation to the use of and access to the EWSS, it should be noted that the overwhelming majority of companies that have participated in the wage subsidy schemes did so because they genuinely believed they would need support at that point based on the effect of the pandemic on their business. The experience both Revenue and I have had is that employers participating in the scheme are doing so in good faith.
I would also note that the schemes are characterised by a high degree of compliance by beneficiary firms. I set out details of the comprehensive compliance and assurance programmes carried out by Revenue in relation to the wage subsidy schemes separately in response to other questions raised by the Deputy.
I am advised that a number of companies have returned the TWSS or EWSS payments to Revenue either because they voluntarily withdrew from either scheme, found they were ineligible or their business performance was better than they expected when they entered the schemes. In that regard 860 employers have refunded €10.9 million in TWSS payments. In addition, 16 employers advised Revenue they were voluntarily removing themselves from the EWSS, 9 of whom fully withdrew and repaid nearly €21 million and 7 partially withdrew and repaid just over €4.5 million.
A total of 402 employers have repaid in full all subsidies claimed since the EWSS began, totalling approximately €52 million with an additional 3,331 making partial repayments totalling approximately €54 million.
To date, the EWSS has helped almost 52,000 employers to keep over 700,000 employees in employment since the scheme began in September 2020. It is highly likely that the vast majority of employers who have claimed COVID-19 wage supports have not had the wherewithal to pay dividends during the period of the pandemic. It is not readily apparent to me what impact an outright ban on dividend payments, or indeed a cap on such payments, would have had on the employment prospects of those 700,000 employees whose employers have been supported by EWSS payments.
However, I have said previously that I will keep this matter under review and assess if it would be appropriate to introduce any further conditionality into the scheme. This issue requires careful consideration to ensure that businesses that may well be profitable, but are far less profitable than they were in the past, are not precluded from participating in the scheme in the future. Such firms may still require this support to have a viable and successful future. It would be important that any changes are proportionate and would not undermine the overarching policy rationale underpinning the scheme, which is to maintain employment.
325. Deputy James Browne asked the Minister for Finance the position regarding the inability by a company (details supplied) to secure Covid restrictions support scheme support owing to loss of earnings; and if he will make a statement on the matter. [1222/22]
View answer352. Deputy John Brady asked the Minister for Finance if further changes will be made to the Covid restrictions support scheme to include new businesses which have been set up in the past three to six months that have been impacted by the recent public health restrictions; and if he will make a statement on the matter. [2106/22]
View answer354. Deputy Michael Lowry asked the Minister for Finance his plans to introduce a modified Covid restrictions support scheme for retail businesses that anticipate that their income will be subjected to a substantial loss in the first quarter of 2022 due to the ongoing Covid-19 pandemic; if such a modified scheme will be examined for retail businesses that can provide evidence that their income is down 30% or more at the start of 2022 compared to their last full year of trading accounts pre-pandemic; and if he will make a statement on the matter. [2169/22]
View answer356. Deputy Brendan Griffin asked the Minister for Finance if he will introduce a 10% turnover grant for new and existing businesses that had reduced opening hours due to public health restrictions and will not meet turnover requirements to qualify for the Covid restrictions support scheme; and if he will make a statement on the matter. [2271/22]
View answer359. Deputy Neale Richmond asked the Minister for Finance if he will consider extending the eligibility for the Covid restrictions support scheme to businesses that began trading after 26 July 2021; and if he will make a statement on the matter. [2293/22]
View answerI propose to take Questions Nos. 325, 352, 354, 356 and 359 together.
Covid Restrictions Support Scheme (CRSS) was introduced by Section 11 of the Finance Act 2020. The scheme is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the COVID-19 pandemic.
The scheme is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits of which are chargeable to tax under Case 1 of Schedule D, from a business premises that is subject to restrictions that prohibit or considerably restrict customer access.
From 20 December 2021, the Government introduced certain restrictive measures for businesses within the hospitality and indoor entertainment sectors. As part of these measures, an 8pm closing time has been imposed from 20 December 2021 to 31 January 2022. Businesses operating within these sectors, who would ordinarily operate evening and night-time trading hours, will be considered to be significantly restricted from operating for the purposes of the CRSS and will be eligible for support under the scheme where they meet the eligibility conditions. The Government have also agreed that the turnover reduction criteria will be increased from no more that 25% of 2019 turnover to no more that 40% of 2019 turnover.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19, or by public health guidance generally in force. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or significantly restrict access to its business premises.
To qualify for the CRSS, a business must have tax clearance and have been established prior to 26 July 2021. Any business established after 26 July 2021 is not eligible for the scheme. Revenue has advised me that the business referred to in question (1222/21) was established in September 2021 and, as such, does not qualify for the CRSS.
Under the existing scheme any business established after 12 October 2020 was not eligible for CRSS. The Government have decided that new businesses established between 13 October 2020 and 26 July 2021 will now be eligible to apply for the scheme. In addition to the amendment of the turnover criteria, this is a significant extension of the CRSS. The CRSS is intended as a support for existing businesses and I have no plans to further modify the eligibility criteria of the CRSS.
The legislation provides businesses with the entitlement to appeal Revenue’s decision on CRSS eligibility to the independent Tax Appeals Commission (TAC), where they dispute the interpretation applied. If a business wishes to appeal Revenue’s decision that it is not entitled to the CRSS, it should do so within 30 days of the refusal notification.
The CRSS is just one of the Government supports to assist businesses impacted by COVID-19. Businesses not falling within the scope of the CRSS may be entitled to support under other measures put in place by Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). EWSS is an economy-wide scheme that operates across all sectors. As the Deputy may be aware, as announced on 9 December, it was decided that the enhanced rates of support which were due to end on 30 November 2021 would be extended for a further two months until end-January 2022. On 21 December, it was decided on foot of the restrictions I have outlined above, that the EWSS would reopen for certain businesses who would otherwise not be eligible for the support. Businesses that previously registered for EWSS and received a payment in compliance with the scheme have the opportunity to re-qualify for the scheme where they meet certain conditions. Broadly, the business must experience a 30% reduction in turnover, or customer orders during a particular reference period and have tax clearance.
Finally, it is my intention that the legislative aspects associated with the revised arrangements for CRSS and EWSS, outlined above, will be addressed by primary legislation in the coming weeks. In the meantime, the Revenue Commissioners are operating the revised arrangements on an administrative basis pending the legislation.
326. Deputy Peter Burke asked the Minister for Finance if the acquirer of a regulated entity authorised under section 10 of the Investment Intermediaries Act 1995 must notify the Central Bank. [1257/22]
View answerThe Central Bank of Ireland is designated as the supervisory authority with respect to the Investment Intermediaries Act 1995 ('the IIA').
Section 39(1) of the IIA sets out that any person proposing to make an "acquiring transaction" (as defined in section 38(2) of the IIA) of an authorised investment business firm shall notify the supervisory authority in writing of the proposal and include with the notification specified information concerning the proposed acquiring transaction.
Furthermore, Section 40 of the Act sets out that the acquiring transaction cannot proceed without the supervisory authority informing the authorised investment business firm and the party making the acquiring transaction in writing that it approves of the acquiring transaction or until three months have elapsed during which the supervisory authority has not refused to approve of the acquiring transaction, whichever first occurs.
327. Deputy Paul Kehoe asked the Minister for Finance the options that are available to an applicant to the help-to-buy scheme who disputes the valuation provided by the lender; and if he will make a statement on the matter. [1260/22]
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. Section 477C of the Taxes Consolidation Act outlines the definitions and conditions that apply to the Help to Buy scheme.
One such condition is that a qualifying first time buyer must take out a loan in an amount equal to at least 70% of either the purchase price of the property in the case of a purchased house, or the value of the property in the case of a self-build house. The valuation of a self-build is as approved by the lender, determined in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation as being the site cost plus the cost of construction.
Revenue does not have discretion to vary the conditions for qualification for relief under the HTB scheme. As such, where the minimum loan value of 70% is not achieved, the conditions of the scheme are not met, and the relief cannot be granted.
I am advised by the Revenue Commissioners that where the valuation of the property is in dispute, the determination of the valuation of the property is not a matter for Revenue. This is a matter between the purchaser and the lender.
328. Deputy Catherine Murphy asked the Minister for Finance the amount collected in stamp duty in respect of bank and credit cards since the levy was introduced to date in 2022, by year. [1275/22]
View answerI am advised by Revenue that the available information in relation to the yield from Stamp Duty on bank and credit cards for the years 2010 to 2020 is published on the Revenue website at:
www.revenue.ie/en/corporate/documents/statistics/receipts/stamp-duty-receipts.pdf.
This information will be updated over coming months to reflect 2021 data once available.
329. Deputy Éamon Ó Cuív asked the Minister for Finance if it is intended to change the tax relief on pension contributions for employees if an auto-enrolment pension scheme is introduced; and if he will make a statement on the matter. [1383/22]
View answerIreland operates what is described as an “Exempt – Exempt – Taxed” or “EET” pension regime. Contributions to a pension fund are relieved from tax and growth in these funds are also accumulated on a tax-free basis. Payments out of the fund during retirement are then subject to income tax, and USC and PRSI where applicable. I do not have any plans to change the current arrangements for tax relief on pension contributions.
As the Deputy may be aware, the Programme for Government contains a commitment to introduce a pension auto-enrolment system. This aims to address the low proportion of Irish employees with supplementary pension cover, which includes both occupational and personal pensions. My colleague Deputy Humphreys, Minister for Social Protection, is finalising a proposal for Government on the overall design of the AE system. As such it would not be appropriate to comment on any specific design features of the AE regime in advance of Government approval. In line with the Economic Recovery Plan, published in July 2021, implementation of the AE system will commence over the course of 2022 and 2023 with the necessary legislative, organisational and organisational structures being put in place.
330. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [1420/22]
View answer331. Deputy Pearse Doherty asked the Minister for Finance the number of persons availing of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [1421/22]
View answerI propose to take Questions Nos. 330 and 331 together.
I am advised by Revenue that the available information in relation to the cost of tax relief on pension contributions is available on the Revenue website at link www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
The information includes the number of taxpayers availing of the relief as well as the total cost, broken down by year, to the tax year 2018, the latest year for which data are currently available.
For the convenience of the Deputy, the following table sets out the relevant tax costs for 2016, 2017 and 2018, as data for 2019 and 2020 are not yet available.
|
Pension Type |
2018 |
2017 |
2016 |
|||
|
|
Cost € |
Numbers |
Cost € |
Numbers |
Cost € |
Numbers |
|
Employees’ Contributions to Approved Superannuation Schemes’ |
677.7 |
663,900 |
598.1 |
614,200 |
582.4 |
599,200 |
|
Employers’ Contributions to Approved Superannuation Schemes |
173.2 |
413,000 |
159.8 |
366,700 |
158.4 |
345,500 |
|
Exemption of Employers’ Contributions to BIK |
658.3 |
413,000 |
607.3 |
366,700 |
601.9 |
345,500 |
|
Pension Contributions (Retirement Annuity and PRSA) |
241.3 |
98,300 |
229.3 |
93,600 |
221.3 |
95,900 |
The information above reflects the totals for each year. Information on pension contributions at individual (employee) level was not separately recorded on tax returns prior to 2019. However, following changes to the PAYE system, the information sought by the Deputy will become available in the coming weeks for 2019 and for subsequent years as soon as possible thereafter. The data will be published on the Revenue website once available.
