Written Answers Nos. 250-271
251. Deputy Carol Nolan asked the Minister for Finance the number of collective asset management vehicles and undertakings for collective investment in transferable securities that are currently authorised, registered or incorporated in Ireland; and if he will make a statement on the matter. [9750/22]
View answerIn accordance with the Irish Collective Asset-management Vehicle ('ICAV') Act 2015, the Central Bank of Ireland is the registration body for ICAVs. The Central Bank of Ireland is also the authorisation body for Alternative Investment Funds (AIFs) and Undertakings for Collective Investment in Transferable Securities (UCITS). ICAVs must be registered as ICAVs and authorised as AIFs or UCITS before they are fully operational.
I have been advised by the Central Bank of Ireland that, to date, there are 5,119 UCITS authorised in Ireland, 1,028 of which are established as ICAVs. There are also 3,307 AIFs authorised in Ireland, 1,573 of which are established as ICAVs.
As the registrar of ICAVs, the Central Bank has also registered 794 ICAVs. The registrar function of the Central Bank is separate to the authorisation process, and was introduced in the ICAV Act 2015. This process entails the Central Bank making a registration order which specifies the date on which the ICAV will come into operation and constitute a corporate body.
The Central Bank maintains a register of authorised UCITS, a register of authorised AIFs and a register of registered ICAVs, all of which are available on their website.
252. Deputy Aindrias Moynihan asked the Minister for Finance if an online tutorial could be made available to assist persons in using the online facilities of the Revenue Commissioners; and if he will make a statement on the matter. [9751/22]
View answer253. Deputy Aindrias Moynihan asked the Minister for Finance the number of persons yet to make an online annual return for 2021; the number of telephone requests to the Revenue Commissioners on persons not having online facilities available to them to make changes to their Revenue Commissioners accounts for 2022 to date; and if he will make a statement on the matter. [9752/22]
View answerI propose to take Questions Nos. 252 and 253 together.
Revenue has advised me that over 820,000 PAYE taxpayers have filed income tax returns for 2020 and approximately 480,000 have done so for 2021. It is not possible to definitively confirm the number of PAYE taxpayers who have yet to file their returns for 2021 as in many cases they pay the correct tax throughout the year and are not required to file a return, unless there are additional credits or reliefs to which they are entitled and wish to claim. Over 99% of the tax returns filed to date were received through the online channels with any refunds due paid within three to five working days.
Revenue has answered 110,000 calls to the PAYE Helpline so far in 2022. These calls related to a broad range of issues including requests for assistance with completing the income tax return (online and paper), clarifying tax entitlements for the current year (2022) and requesting changes to individual taxpayer records. Revenue has also dealt with over 3,400 requests for paper forms through its Forms and Leaflets Ordering Service to date in 2022 and processed almost 1,350 paper PAYE returns subsequently received.
Regarding Question 9751-22, Revenue has confirmed that it already provides instructional videos to assist taxpayers using Revenue’s online facilities. These are available via the Revenue website and from the Revenue channel on the YouTube platform.
254. Deputy Alan Dillon asked the Minister for Finance the details of the help-to-buy scheme figures for 2021; the number of applications; the number of successful applications; and if he will make a statement on the matter. [3049/22]
View answerI am advised by Revenue that there were 26,025 Help-to-Buy (HTB) applications made in 2021.
Applications for HTB may be made on a provisional basis as first time buyers will want to have certainty as to their entitlements in advance of commencing the purchase of a property. An application will only progress to the final ‘claim’ stage when the applicant decides to purchase a property that is eligible for the scheme. In 2021, 7,555 applications moved to this stage and were approved.
Revenue has recently published 'Help To Buy (HTB) Statistics 2021' which is available on their webiste:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/help-to-buy-annual-report- 2021.
255. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects the economy to make a full recovery notwithstanding the impact of Covid-19; if the manufacturing and services sectors are likely to recover simultaneously; and if he will make a statement on the matter. [7049/22]
View answerBy the third quarter last year, both output and employment had exceeded pre-pandemic levels, a remarkable outcome that speaks to the success of the Government’s economic policies, which protected incomes, jobs and businesses.
It is important to note however that the Covid-19 shock has had a disproportionate and negative impact on certain sectors, in particular on labor-intensive service sectors, where home-working was not possible. Nevertheless, since the re-opening of the economy in spring of last year, the service sector has seen a rapid recovery, with the overall service sector output exceeding its pre-pandemic level (January 2020) by 11½ per cent in December 2021. Of course, the recovery has not been uniform across service sub-sectors and activity remains below the pre-pandemic level in the majority of these sectors, with the exception of ICT and Wholesale and Retail Trade. Indeed the recovery in these services sub-sectors stalled somewhat towards the end of last year during the height of the Omicron wave.
On the other hand, ‘knowledge-intensive’ sectors proved more resilient. For this reason the ‘’modern manufacturing sector’’ which is dominated by pharmaceutical and other MNEs performed strongly throughout the Pandemic. Perhaps more importantly, production in the ‘’traditional sector’’ is performing solidly having grown by over 5 per cent in the final quarter of 2021 compared to the previous three months.
Looking ahead, a range of business surveys suggest a continuing strong rate of growth in both the manufacturing and services sectors, as both international and domestic demand recovers. The lifting of many of the remaining domestic restrictions in January this year is an important tailwind for the services sector. My Department will continue to closely monitor and analyse these developments and will publish updated economic forecasts as part of the Stability Programme Update in April.
256. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he discussed or intends to discuss with his European Union counterparts the higher cost of mortgages in Ireland compared with the rest of the European Union with the consequent impact on Irish citizens notwithstanding the single market. [8372/22]
View answerI am aware that the general level of new lending interest rates in Ireland are higher than is the case in many other European countries. However, the price lenders charge for their loans is a commercial matter for individual lenders. As Minister for Finance I cannot determine the lending policies of individual banks including the interest rates they charge for loans including mortgages, nor can other EU counterparts.
Despite this, it should also be noted that recent trends indicate that certain mortgage rates have been falling in Ireland. For example, the interest rates on new mortgages (excluding renegotiations) have fallen from 4.05% in December 2014 to 2.69% in December 2021.
The weighted average interest rate on new fixed rate mortgage agreements stood at 2.59% in December 2021, down from a series high of 4.11% in December 2014. There has also been a reduction in the interest rates charged on loans to SMEs and consumers over the same period.
However, Irish mortgage and other loans can have different characteristics from those offered in other countries. For example, many Irish banks include incentives such as cash back offers, which reduce the effective Irish mortgage interest rate. Also Irish mortgages are generally not subject to upfront fees which are typically charged by banks in some other EU jurisdictions.
There are also a number of important factors which will likely influence the interest rates charged on Irish mortgages. These include for example operational costs, certain structural factors as referenced above (such as incentives offered), as well as the fact that pricing will reflect:
- credit risk and capital requirements which in Ireland are elevated due to historical loss experience;
- the level of non-performing loans which is higher in Ireland relative to other European banks (as provisioning and capital requirements are higher for these loans to reflect their higher risk and this in turn results in higher credit and capital costs for the Irish banks); and
- higher cost-to-income ratios which has been a characteristic of the Irish banking sector in recent years.
To conclude I appreciate that greater sustainable competition in the credit market will be of benefit to consumers and other borrowers. Accordingly, the review of the retail banking market which is now underway in my Department will consider how the banking system can best support economic activity, assess competition and consumer choice in the market for banking services and consider options to further develop the mortgage market.
258. Deputy Neale Richmond asked the Minister for Finance if he will increase the single parent carer’s credit; and if he will make a statement on the matter. [5309/22]
View answerAs the Deputy will be aware, Budget 2022 included a significant tax package amounting to a cost of €520 million. This included a substantial income tax package comprising of an increase of €50 in each of the main tax credits – personal tax credit, employee tax credit and the earned income credit – from €1,650 to €1,700. An increase of €1,500 in the income tax standard rate band for all income earners was also introduced. Furthermore, the 2% rate band ceiling for USC was also increased for 2022 in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.20 to €10.50 will remain outside the top rates of USC. Further details can be located at the following link: www.gov.ie/en/publication/7e491-taxation-measures/.
Having regard to the fiscal demands and pressures facing the State in 2022, it was not possible to increase all tax credits and remain within the fiscal parameters. However, the tax changes introduced in Budget 2022, will benefit all income earners who pay income tax, including those persons in receipt of the Single Person Child Carer Credit, and are aimed at helping taxpayers at a time when prices are rising. I would also note that those in receipt of this credit may also have entitlement to an increased standard rate band each year which is €4,000 higher than that which applies to a single person who is not entitled to the credit.
In all the circumstances, I am satisfied that the Single Person Child Carer Credit in its current form is appropriately calibrated at present and there are no immediate plans to review or amend the relief.
259. Deputy Rose Conway-Walsh asked the Minister for Finance the financial supports or pathways to funding that are available from his Department for a single parent of a young adult with highly complex physical and intellectual disabilities (details supplied). [5493/22]
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) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a Fuel Grant, and an exemption from Motor Tax. The limit of the remission or repayment of Value Added Tax and Vehicle Registration Tax cannot exceed €10,000, €16,000 or €22,000 and is based on the level of modification to the vehicle necessary.
260. Deputy Ruairí Ó Murchú asked the Minister for Finance when the employment wage subsidy scheme and the Covid restrictions support scheme will be reviewed; and if he will make a statement on the matter. [2657/22]
View answerThe Government have stated on many occasions that there will be no cliff edge to supports for employers but we have also been clear that the Employee Wage Subsidy Scheme (EWSS) and COVID Restrictions Support Scheme (CRSS) cannot run indefinitely, nor is it sustainable to continue for a prolonged period of time given the very substantial costs to the Exchequer.
In relation to EWSS the scheme was introduced to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS is an economy-wide scheme that operates across all sectors.
In money terms, the overall support provided to-date (17 February) by EWSS is just over €7.46 billion comprising direct subsidy payments of €6.45 billion and PRSI forgone of €1.01 billion to 51,900 employers in respect of over 715,300 employees.
Since the introduction of the scheme, the EWSS has been under active consideration and review in terms of its responsiveness, cost and impact. As part of Budget 2022, the Government agreed the future of EWSS including its graduated exit strategy. Since then, consistent monitoring of the scheme continued and the scheme was subsequently enhanced in response to the public health situation, namely the extension of the enhanced rates of subsidy for a further two months (across December 2021 and January 2022) and the reopening of the scheme for certain businesses as announced on 9 and 21 December 2021 respectively.
From 1 February 2022, for most businesses, 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.
Following a further assessment, I announced on 21 January 2022, that businesses availing of EWSS that were directly impacted by the public health regulations of last December, would continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates would be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022.
Turning to CRSS, the scheme was introduced as 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 CRSS was extended to 31 January 2022 in the Finance Act 2021.
The scheme was 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, set out in the relevant legislation, that prohibit or considerably restrict customer access. The legislation requires that a claim must be made no later than eight weeks from the date on which the ‘claim period’ commences.
As the Deputy will be aware, from 20 December 2021, the Government introduced certain restrictive measures for businesses within the hospitality and indoor entertainment sectors. Following the announcement of these restrictions, the CRSS was reviewed with a view to expanding the supports available to businesses during the period of restrictions. Businesses operating within these sectors, who would ordinarily operate evening and night-time trading hours, were considered to be significantly restricted from operating for the purposes of the CRSS and were eligible for support under the scheme where they meet the eligibility conditions. The Government 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, and that new businesses established between 13 October 2020 to 26 July 2021 would be eligible to apply for the scheme. To date a total of 25,600 unique premises have claimed payments under the scheme amounting to €727 million.
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.
Finally, work is underway at senior official level on an inter-departmental basis to review the experience from the introduction and operation of Covid-19 emergency income supports paid to/in respect of people whose employment was impacted due to public health restrictions, and to identify lessons learnt. My Department is represented on the relevant group which is chaired by the Department of Social Protection and also includes representatives from the Departments of Public Expenditure and Reform and Enterprise Trade and Employment and from the Office of the Revenue Commissioners.
261. Deputy Mairéad Farrell asked the Minister for Finance the main reasons for a significant number of rejections of consumer complaints by the Financial Services and Pensions Ombudsman (details supplied). [9771/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
The FSPO has informed me that every complaint received by it is assessed and investigated in detail. Where a complaint closes in Registration and Assessment or in Legal Services, these complaints have been subject to an in-depth assessment.
Complaints that close in Registration and Assessment will be closed for a number of reasons. In 2020, 465 complaints were closed because they were found to be ineligible. This was mainly because these complaints were related to products, services, or service providers that do not fall within the remit of the FSPO, not enough information was provided by the complainant to proceed, the complaint was appropriate for another Ombudsman, or the complaint was deemed withdrawn because the complainant did not engage in any further communication.
There were 327 files closed following a detailed Early Jurisdictional Assessment service, where these complaints fell outside the remit of the FSPO due to jurisdictional issues. These included complaints that do not meet the time limits for bringing a complaint to the FSPO, where the complaint has been, or is the subject of legal proceedings, where fraud has been alleged or where the complaint is more suitably dealt with by a different forum.
Complaints will also be closed in Registration and Assessment when the FSPO engages directly with the financial service provider or pension provider, in order to secure a final response to the complaint for the consumer. This allows the complaint to close if the complainants are satisfied with their provider’s final response.
Where an issue arises, which requires a more detailed legal assessment, the matter is referred to the Legal Services Unit for a formal jurisdictional assessment to determine whether the complaint, or elements of the complaint, can proceed to investigation. The FSPO makes every effort to assist the parties in understanding the extent and limits of the Ombudsman’s jurisdiction. The parties to the complaint will be invited to make submissions during the assessment process, before the final determination on jurisdiction is ultimately confirmed to the parties. 536 complaints were closed following this detailed legal assessment. The total number of complaints closed during 2020 was 6,193 which occurred at various stages of the complaint management lifecycle, as detailed below.
|
Registration and Assessment |
1,401 |
|
Dispute Resolution Service |
2,960 |
|
Investigation Service |
735 |
|
Legal Service |
536 |
An additional 561 complaints that were ineligible were closed in 2020. Ineligible complaints include those for providers outside Ireland, for services that are not financial services, or duplicate complaints.
262. Deputy Mairéad Farrell asked the Minister for Finance if the Financial Services and Pensions Ombudsman is taking the position in many cases that the consumer should have been aware of misconduct (details supplied) when they signed a loan offer or when they first went into default on a loan. [9772/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
The FSPO has informed me that it can investigate complaints made about the conduct of financial service providers and pension providers, only if such complaints are made within the time limits prescribed by the Financial Services and Pensions Ombudsman Act 2017 (‘the Act’).
The Act further requires that where a question arises as to whether the Ombudsman has jurisdiction to investigate a complaint, including in relation to time limits, the question must be determined by the Ombudsman. 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. The Ombudsman must at all times act within the limits of the governing legislation.
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 about the conduct of financial service providers, in respect of a “long-term financial service". These expanded time limits were included in the Act, which commenced in January 2018, when the FSPO came into existence.
Section 51 of the Act, governing time limits, prescribes that any complaint about a "long-term financial service", can be made not only within a 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.
Section 2 of the Financial Services and Pensions Ombudsman Act 2017 originally prescribed that a “long-term financial service” essentially constituted:
(a) a product or service with a fixed term of 5 years and 1 month or more, or
(b) life assurance.
The definition of long term financial service was further refined in 2018 to ensure greater protections for consumers, such that the definition now includes the following provision:-
“Notwithstanding the fact that the financial service does not fix its duration to be of a term such as is referred to in paragraph (a) of the definition of ‘long-term financial service’ in subsection (1), a financial service shall be regarded as falling within that definition if it would be reasonable for a consumer to expect its duration to be of at least the length referred to in that paragraph and that reasonable expectation arises by reason of—
(a) the manner in which the financial service operates to provide a financial benefit to the consumer,
(b) the type of assets with which its operation is connected, or
(c) representations made by the financial service provider, as distinct from where such an expectation arises in the case of
(i) a current account with a financial institution, or
(ii) any other financial service of an indefinite duration that is widely available and does not possess specialised characteristics.”
263. Deputy Mairéad Farrell asked the Minister for Finance the reason the Financial and Pensions Ombudsman is refusing to investigate complaints unless both parties to a joint and several accounts have signed the complaint form. [9773/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
The FSPO has informed me that where a complaint is made to the FSPO concerning a joint account or a joint policy, the FSPO must recognise that all parties who own that account or policy have rights, entitlements and potential liabilities arising in relation to such an account or policy, and in addition certain data protection issues arise.
Whether the complaint is settled by way of agreement between the parties, using the confidential Dispute Resolution Service of the FSPO, or is the subject of a formal investigation by the FSPO, leading to a legally binding decision, the rights and obligations of all joint account holders or joint policyholders are thereby affected. All owners of the account or policy must be agreeable to the investigation of the complaint by the FSPO, and the processing of their personal data by the FSPO. Therefore, the signature of each joint owner of the policy or account is required as evidence of their consent.
The FSPO must respect the rights and entitlements of all parties to an account or policy. It cannot give preference to the position of one account or policyholder, over the other joint owner/s.
264. Deputy Mairéad Farrell asked the Minister for Finance if he will report on the circa 1,200 tracker case complaints outstanding with the Financial Services and Pensions Ombudsman; the actions that have been taken to ensure that the backlog is cleared; and if he authorised the Ombudsman to employ additional internal and external resources to deal with this matter. [9774/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
The FSPO’s predecessor, the Financial Services Ombudsman Bureau, started receiving tracker mortgage rate complaints in 2009, and these complaints have continued to be received over the last twelve years.
The FSPO has informed me that at end 2021, 1,115 complaints on hand at the FSPO were identified as being Tracker Mortgage Interest Rate Related, of which 1,017 were classified as active complaints. During 2021, 257 new tracker mortgage interest rate related complaints were received by the FSPO Office, with a further 29 tracker mortgage complaints reopened during the year.
370 tracker mortgage interest rate complaints were closed during 2021. The breakdown of these closures is set out below.
|
Early Stage Closures |
34 |
|
Dispute Resolution Clarification |
76 |
|
Mediation Settlement |
39 |
|
Formal Investigation Resolution |
181 |
|
Legal Services Resolution |
18 |
|
Other |
22 |
These complaints continue to comprise a considerable portion of the work of the FSPO and progress through both the informal Dispute Resolution process and the formal Investigation process of the FSPO. The duration required to investigate a complaint can vary depending on the complexity of the file and the number of submissions made by the parties to the complaint.
The FSPO continues to require the services of its tracker mortgage team comprising a team of solicitors, trainee solicitors, paralegals and legal executives who are working full time within the FSPO to deal with these cases. These staff provide legal advice and investigation support services for complaints received from consumers regarding tracker mortgages, which are not resolved by mediation and require a full investigation leading to the issue of a legally binding decision.
The FSPO and its Council continue to monitor the FSPO’s operating environment, monitoring emerging demands for its services and identifying resource and skills needs, as they arise.
265. Deputy Mairéad Farrell asked the Minister for Finance if additional resources required by the Financial Services and Pensions Ombudsman to deal with consumer complaints are met by the levy on the industry generating the complaints. [9775/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
The FSPO has informed me that in accordance with the Financial Services and Pensions Ombudsman Act 2017 (‘the Act’), the Financial Services and Pensions Ombudsman Council approves the FSPO’s annual budget of operating costs.
This annual budget is funded through two distinct sources in accordance with the Act; financial services complaints are funded by a levy on the financial services industry and pension complaints are funded by the Exchequer. The apportionment of the annual budget is based upon the complaints received in the previous three-year period in respect of pensions and financial services and therefore reflects the most recent complaints handling experience. Any increase or decrease in particular categories of complaints will be reflected in the amount of the financial services industry levy due to be paid by firms within that category.
266. Deputy Mairéad Farrell asked the Minister for Finance if is satisfied with the resources employed by the Office of the Financial Services and Pensions Ombudsman; and his views on the staff numbers per million of population compared to resources employed by the UK Financial Services Ombudsman. [9776/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
In December 2018, the FSPO submitted a Workforce Plan 2019-2023 to me and I approved the recruitment of an additional 35 staff. This basis for the additional headcount was approved due to the rising number of complaints made to the FSPO and the increasing complexity of many of these complaints, which is an appropriate way to determine the resourcing requirement of the organisation.
The FSPO and its Council continue to monitor the FSPO’s operating environment, monitoring emerging demands for its services and identifying resource and skills needs, as they arise. The FSPO supports the ongoing development of its workforce and places a strong emphasis on continuous professional development to support the delivery of its functions, as set out in its establishing legislation.
267. Deputy Mairéad Farrell asked the Minister for Finance the reason the Financial Services and Pensions Ombudsman spent a total of €1.8 million on legal fees in 2020. [9777/22]
View answerAs the Deputy is aware, the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of her statutory functions and I have no role in the day to day workings of the office or in the decisions which she takes.
As the FSPO is a statutory complaints handling body its functions require the ongoing provision of legal services. The FSPO has informed me that the figure of €1.8 million incurred by the FSPO on legal fees, as detailed in its Annual Financial Statements 2020, includes expenditure relating to the management of a number of Judicial Review applications to the High Court and statutory appeals by parties following the issuing of a Legally Binding Decision of the FSPO.
It also includes the ongoing provision of the FSPO’s tracker mortgage team comprising a team of solicitors, trainee solicitors, paralegals and legal executives who are working full time within the FSPO, providing legal advice and investigation support services for complaints received from consumers regarding tracker mortgages, which are not resolved by mediation and require a full investigation leading to the issue of a legally binding decision. The expenditure also includes corporate legal fees.
All expenditure by the FSPO is provided for through its annual budget process, as outlined in the Financial Services and Pensions Ombudsman Act 2017.
268. Deputy Róisín Shortall asked the Minister for Finance when the Revenue Commissioners' public office on Cathedral Street, Dublin 1 will reopen to the public; when the public inquiry telephone numbers will be available again; and if he will make a statement on the matter. [9791/22]
View answer274. Deputy Eoin Ó Broin asked the Minister for Finance when employees of the Revenue Commissioners are expected to return to providing customer services via the telephone and in person. [10028/22]
View answerI propose to take Questions Nos. 268 and 274 together.
I am advised by Revenue that its public offices, excluding ports, airports and trade facilitation stations remain closed until further notice.
Throughout the pandemic, Revenue has continued to provide a full range of online services for taxpayers to manage their tax affairs, which for the most part removes any requirement to access public offices. These services, which include an online communications channel through the MyEnquiries system, are available 24/7, are easy to use and are fully secure.
For customers that are not comfortable with its online services, Revenue provides an extensive telephone service, which has continued to operate since the early stages of the pandemic. The full list of telephone services and their opening hours are available on the Revenue website. Revenue also continues to operate a full service for queries being received through the postal system.
Regarding situations where more complex tax issues exist that require direct engagement, Revenue provides a one to one appointment service with the relevant official. These engagements can be carried out remotely by video conferencing. Such an appointment can be arranged by contacting 01- 738 3660 from 09.30 to 13.30 (Monday to Friday).
Finally, Revenue has confirmed that the timelines around reopening public offices are kept under continuous review. In considering the most appropriate time to reopen offices, Revenue will focus on customer and staff safety as the highest priority.
269. Deputy Brendan Griffin asked the Minister for Finance if he will provide clarification on a matter (details supplied) in relation to the taxation of the pandemic unemployment payment; and if he will make a statement on the matter. [9809/22]
View answerRevenue is independent in the exercise of its functions. However, I have been advised by it as follows:
Revenue's process for taxing DSP payments, including the Pandemic Unemployment Payment (PUP) seeks to cater for the different scenarios that can arise across the PAYE case base.
Following significant consideration by Revenue, the basis of taxation adopted aims, as far as possible, to collect the right amount of tax at the right time while avoiding an accumulation of liabilities at year-end in as many of the different scenarios as possible. While the option proposed has merit in some less complex cases, (like in the worked examples provided in the details supplied with the question), it could lead to significant hardship in many cases, particularly where credits were allocated other than 50/50 between jointly assessed couples.
For example, married couples who are jointly assessed may choose to alter ‘the split’ in the tax credits they jointly share. In such circumstances, where one or both was on the PUP, applying the process proposed could result in significant financial hardship where the allocated tax credits to one spouse or civil partner does not cover the tax due.
By way of example, a jointly assessed couple may opt to have the married personal tax credit allocated to one partner for 2021 rather than split evenly. This would result in a scenario where one has tax credits of €4,950 for the year (made up of the married personal tax credit of €3,300 and the PAYE tax credit of €1,650) while the other has the remaining PAYE tax credit of €1,650. If the person on the lower tax credits was on the maximum rate of PUP, s/he could have a potential liability of €995 after 26 weeks if those credits were allocated on a ‘week 1’ basis.
When a person who was in receipt of PUP payments returned to work in 2021, his or her tax credits and rate band were generally restored on a ‘week 1 basis’. This was to avoid any possible financial hardship that could arise from an increased tax liability for that pay period under the ‘cumulative basis’. However, a person who received the maximum rate of PUP could still have a tax liability at the end of the year because the tax due exceeded his or her available tax credits.
For a person who received less than the maximum weekly rate of PUP, his or her tax credits may have exceeded the tax due by between €3.46 and €22.86 (depending on which PUP rate applied). In such circumstances it was more beneficial to the person that his or her tax credits were restored on the ‘cumulative basis’ rather than the ‘week 1’ basis, thereby ensuring that any over-deducted tax was refunded through salary.
In some instances where a person returned to work, the final PUP payment (paid in arrears) overlapped with the first salary payment resulting in an overpayment of tax for that period because the necessary adjustments to the tax credits had not taken place. For a person on the maximum rate of PUP, the additional tax deducted minimised his or her liability at year end, while for employees on the lower rates of PUP, the additional tax deducted was refunded once their credits were restored to the ‘cumulative basis’.
Revenue has assured me that taxpayers that were placed on a ‘week one’ basis can opt to be switched back to the ‘cumulative basis’ where it is advantageous for them to do so. A very sizeable proportion of PUP recipients chose this option in 2021 and where an overpayment existed, it was repaid to them through their salary.
When the Income Tax Return for 2021 is submitted after year end and there is an overpayment of tax in the year but there is an outstanding liability for other years, the refund due is firstly offset against the outstanding amounts before any remaining balance is repaid. This is the normal practice and applies to 2021 as it does for any other year.
Finally, Revenue has assured me that it is constantly seeking to ensure that its processes do not disadvantage taxpayers and that it stays as close as possible to the principle that people should pay the right tax at the right time.
270. Deputy Michael Ring asked the Minister for Finance if his Department has won any award from a publication (details supplied); if so, when this award was won; and if he will make a statement on the matter. [9832/22]
View answerI wish to inform the Deputy that my Department has not won any award from Public Sector Magazine.
271. Deputy Eoin Ó Broin asked the Minister for Finance the details of any recent EU VAT rule changes that relate to the reuse or renovation of public buildings as part of the EU New Green Deal. [9856/22]
View answerAs the Deputy will be aware, the EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. The compromise text agreed at ECOFIN in December last year has been amended significantly in comparison to the original proposal. As agreed at ECOFIN, the proposal amends category 10a of Annex III of the VAT Directive. The revised text will now read "Construction and renovation of public and other buildings used for activities in the public interest;"
As the compromise text agreed at ECOFIN in December has been amended significantly the EU Parliament has once again be consulted for their opinion. Once the Parliament has issued its opinion on the proposal, the Council will formally adopt the directive. It will then enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
In the interim officials in my Department will be reviewing the options now available to Ireland in setting VAT rates. Future tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.
