Wednesday, 13 Jul 2022

Written Answers Nos. 130-149

Tax Data

Questions (130)

Ged Nash

Question:

130. Deputy Ged Nash asked the Minister for Finance the estimated cost to the Exchequer of removing stamp duty on credit cards; and if he will make a statement on the matter. [38624/22]

Written answers

Minister for Finance

I am advised by Revenue that information on stamp duty receipts on credits cards is published on the Revenue website at:

www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx.

The stamp duty receipts on credit cards would equate to the cost arising from the removal of this duty.

Tax Data

Questions (131, 132)

Ged Nash

Question:

131. Deputy Ged Nash asked the Minister for Finance the anticipated savings to the Exchequer in 2023, from ending the employment and investment incentive scheme, the key employee engagement programme, the special assignee relief programme and the foreign earnings deduction in tabular form; and if he will make a statement on the matter. [38625/22]

Ged Nash

Question:

132. Deputy Ged Nash asked the Minister for Finance the anticipated savings to the Exchequer in 2023 from the ending rent-a-room relief; and if he will make a statement on the matter. [38626/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 131 and 132 together.

I am advised that Revenue does not maintain a projected future cost for each of the schemes outlined by the Deputy, given the number of variables that would be involved.

However, the costs of the Employment Investment Incentive (EII), the Special Assignee Relief Programme (SARP), the Foreign Earnings Deduction (FED) and the Rent-a-Room scheme can be found in the ‘Cost of Tax Expenditures Report’ which is published on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

A summary table of the costs in relation to 2018 (the latest year for which data are available, except for SARP, in respect of which the 2019 figure is available) is as follows:

Measure	2018 cost (€m)
Employment Investment Incentive (EII)	14.5
Special Assignee Relief Programme (SARP)	38.2 (2019)
Foreign Earnings Deduction (FED)	5.4
Rent-a-Room relief	19.7

Regarding the Key Employee Engagement Scheme (KEEP), I am advised by Revenue that the first year the scheme became available was 2018. Generally, a qualifying employee must hold any share options granted under the scheme for at least 12 months prior to exercise. Therefore, 2019 was the earliest date that individuals were likely to exercise their options to acquire shares in qualifying companies. Revenue advises that the table below sets out the KEEP costs in 2019 and 2020:

Year	Cost (€m)
2019	0.1
2020	0.2

With the exception of the EII, the costs set out above can be assumed to be very broadly indicative of the annual saving that might arise if the schemes were ended. In the case of the EII, enhancements to the scheme made in Finance Act 2021 may give rise to an additional tax foregone cost of in the region of €10 million in the current tax year. Taking this factor into account, it is estimated that the abolition of the scheme beyond the current year could give rise to savings broadly of the order of €25 million.

As matters stand, there is no sunset clause attached to the Rent-a-Room relief, but SARP and FED are due to expire on 31 December 2022. The current sunset clause for EII extends to 31 December 2024.

As part of the preparations for Budget 2023 and Finance Bill 2022, my Department has undertaken a review of KEEP. A public consultation took place as part of this review, inviting stakeholders to comment on the operation of the scheme as it currently stands and to submit proposals for further improvements to the scheme. The output from this review will be considered as part of the forthcoming the Budget and Finance Bill process.

Question No. 132 answered with Question No. 131.

Tax Data

Questions (133)

Ged Nash

Question:

133. Deputy Ged Nash asked the Minister for Finance the revenue raised by the domicile levy for the past three years in tabular form; the estimated revenue that would be raised from doubling the domicile levy from €200,000 to €400,000 under the existing criteria; and if he will make a statement on the matter. [38627/22]

Written answers

Minister for Finance

The Domicile Levy was introduced in the 2010 Finance Act and is payable on a self-assessment basis on or before 31 October in the year following the valuation date. For example, the due date in respect of 2019 was 31 October 2020. The valuation date is 31 December each year.

Revenue have advised me of the amounts collected from the domicile levy for the years 2018, 2019 and 2020 and these are outlined in the table below. Data for the 2021 tax year are still being processed.

Year	Amount Collected €m
2020	2.7
2019	1.9
2018	1.5

In relation to increasing the levy from €200,000 to €400,000, I am advised by Revenue that the amount of additional levy to be paid would be contingent on the amount of Irish income tax paid by each taxpayer and available to offset against the additional levy. As this will vary according to the level of income generated by each taxpayer, there is no reliable basis on which to provide an estimate of the additional revenue that would be raised by increasing the levy in the manner outlined by the Deputy.

Tax Data

Questions (134)

Ged Nash

Question:

134. Deputy Ged Nash asked the Minister for Finance the estimated cost to the Exchequer of the e-worker tax relief for 2023; and if he will make a statement on the matter. [38628/22]

Written answers

Minister for Finance

As the Deputy will be aware, in the Finance Act 2021, I enhanced and formalised the tax arrangements for working from home in line with Government policy to facilitate and support remote working. Accordingly, for the tax year 2022, an income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heat and broadband in respect of those days spent working from home can be claimed by taxpayers. This relief is known as Remote Working Relief. The amount of the relief will depend on the particular circumstances of the remote worker in terms of the level of costs incurred and their marginal tax rate.

At the time of Budget 2022, it was estimated that this measure would cost approximately €10 million in 2022 and €11 million in 2023.

As the Deputy may also be aware, employers may pay a tax-free amount of €3.20 per day to employees who satisfy the qualifying conditions for the Remote Working Relief. Revenue has confirmed that as this payment is made tax free, it does not have details of the number of employees involved. Any amounts paid exceeding the €3.20 daily rate are subject to tax, PRSI and USC in the normal manner. If employees claim Remote Working Relief, any payment by their employer for remote working expenses must be deducted from the claim.

Real time claims for Remote Working Relief became available on the 24th January 2022. I am advised by Revenue that for the year to June 2022, 1,401 individuals have submitted claims in ‘real-time’ in respect of Remote Working Relief. In monetary terms, relief of approximately €45,000 has been granted. It should be noted, however, that this is unlikely to be the final figure for such claims, as taxpayers have up to four years to claim expenses.

Tax Data

Questions (135, 146, 147)

Ged Nash

Question:

135. Deputy Ged Nash asked the Minister for Finance the projected yield from abolishing relief under section 604A; the cost to date to the Exchequer annually of this relief; and if he will make a statement on the matter. [38635/22]

Ged Nash

Question:

146. Deputy Ged Nash asked the Minister for Finance the estimated yield from abolishing entrepreneurs' relief as provided under section 597AA of the Taxes Consolidation Act 1997; and if he will make a statement on the matter. [38651/22]

Ged Nash

Question:

147. Deputy Ged Nash asked the Minister for Finance the estimated yield from abolishing the capital gains tax retirement relief from reducing the limit that currently applies to that stated relief on disposals or transfers to children or certain other close relations if made after the age of 66 years from €3 million to €1 million; and if he will make a statement on the matter. [38652/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 135, 146 and 147 together.

I am advised by Revenue that it is not possible to estimate the tax yield from abolishing these reliefs as this would depend on the dates of future disposals and claims.

Revenue’s analysis of the costs of Section 604A relief is available at the following link, for 2018 and 2019, the latest year for which fully analysed data are available:

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf

For the Deputy’s information, Revenue’s analysis of entrepreneur relief for 2016 to 2019 is available at:

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/entrepreneur-relief-statistics.pdf

In relation to Question 38652/22, and for the Deputy’s information, the consideration amounts included on tax returns for 2014 to 2020, in respect of claims for retirement relief, are published at the following link:

www.revenue.ie/en/corporate/documents/statistics/income-distributors/summary-of-capital-gains-tax-returns.pdf

Tax Data

Questions (136, 176)

Ged Nash

Question:

136. Deputy Ged Nash asked the Minister for Finance the projected yield from every €1 per tonne increase in the carbon tax; the estimated yield if there were a €10 increase in 2023; and if he will make a statement on the matter. [38636/22]

Ged Nash

Question:

176. Deputy Ged Nash asked the Minister for Finance the savings to Exchequer from eliminating excise forgone on auto-diesel, marked gas oil, kerosene and fuel oil based on the latest available data; the savings to Exchequer from ending the diesel rebate scheme and excise forgone on commercial sea navigation in tabular form; and if he will make a statement on the matter. [38688/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 136 and 176 together.

I am advised that the Revenue Ready Reckoner shows the estimated yield from changes to carbon tax on page 23, including the yield from a €1 per tonne increase. The Ready Reckoner is available at:

www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

The estimated yield from increases by other amounts can be extrapolated from the information in the table.

It is assumed that the Deputy is referring to setting the level of excise for auto-diesel, marked gas oil, kerosene, and fuel oil as being equal to that for Petrol. I am advised by Revenue that the estimated savings from eliminating excise forgone on auto-diesel, marked gas oil, kerosene and fuel oil are shown in the table following. The estimated savings from ending the diesel rebate scheme (DRS) and eliminating excise forgone for commercial sea navigation are also shown.

These estimates are based on 2021 data.

-	€m
Excise forgone: Auto-diesel	390
Excise forgone: Marked Gas Oil	522
Excise forgone: Kerosene	599.6
Excise forgone: Fuel Oil	20.9
Ending of the Diesel Rebate Scheme	30
Excise forgone: Commercial Sea Navigation	17

Tax Data

Questions (137, 138, 166)

Ged Nash

Question:

137. Deputy Ged Nash asked the Minister for Finance the number of persons who availed of the bike to work scheme in each of the years 2017 to 2021; the cost of the scheme in each of the years; the number of persons who accessed the maximum amount of tax relief in each of those years; the average tax relief in each year; and if he will make a statement on the matter. [38637/22]

Ged Nash

Question:

138. Deputy Ged Nash asked the Minister for Finance savings to the exchequer by decreasing the current tax relief on bike to work schemes to €500; and if he will make a statement on the matter. [38638/22]

Ged Nash

Question:

166. Deputy Ged Nash asked the Minister for Finance the estimated cost of introducing a cycle to school scheme based on the cycle to work scheme in which a parent can claim back the cost of one bicycle per child through their salary; and if he will make a statement on the matter. [38674/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 137, 138 and 166 together.

Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee.

The work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of its particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers. Accordingly, there are no records available on the number of people availing of the scheme, or the number who accessed the maximum amount of tax relief or the cost of the scheme.

Tax expenditure reports prepared by my Department have estimated the cost in the full years 2017-2019 at €4 million (based on an assumption of 20,000 beneficiaries) and notes that this figure is an estimate as separate returns are not required under the scheme. This estimate was increased to €4.5 million in 2020 on foot of the changes made to the scheme by Section 9 of the Financial Provision (Covid-19)(No.2) Act 2020. This increased the allowable expenditure from €1,000 to €1,500 in respect of e-bikes and €1,250 in respect of bicycles and allowed the purchase of a new bicycle every 4 years instead of 5. The estimate was €5.5 million for 2021 with the full year impact of the changes. With an assumption of 20,000 beneficiaries, this gives an average of €275.

The potential cost of a cycle to school scheme would depend on uptake and the marginal rate of tax being paid by the parent and the threshold value allowed under such a scheme. CSO data from Census 2016 shows that 7,326 children aged between 5 and 12 years, and 7,282 students at school or college aged between 13 and 18 years used bicycles as their means of transport. This could give a potential uptake of over 14,000 but each child would not get a new bicycle each year.

Making certain assumptions in relation to cost and uptake on a similar basis as used for reporting on the cycle to work scheme in the tax expenditure reports, such a scheme is tentatively estimated to have a potential annual cost of approximately €1 million. However, the technical and administrative details of how such a scheme would operate would also need to be considered and could impact significantly on cost.

I should add that including bicycles for use by children to cycle to school would add to the administrative burden on employers of participating in the scheme. Furthermore, I would expect considerable deadweight in such a proposal with people benefitting who would have purchased a bicycle in any event.

If the threshold for the cycle to work scheme was reduced to €500, the estimated cost of the scheme would be reduced on a straight line basis by €3.5 million to €2 million. This is based on other assumptions such as number of beneficiaries remaining unchanged.

Question No. 138 answered with Question No. 137.

Tax Data

Questions (139)

Ged Nash

Question:

139. Deputy Ged Nash asked the Minister for Finance the tax reliefs exempted from the high-income individual restriction; the estimated additional yield if those reliefs were not exempted; and if he will make a statement on the matter. [38639/22]

Written answers

Minister for Finance

I am advised by Revenue that the list of the tax reliefs exempted from the High-Income Earner Restriction (HIER) and estimated cost of the relevant reliefs that are subject to the HIER for 2018 (the latest year for which data are available) can be found in the High Income Individuals’ Restriction Report which is available on the Revenue website at www.revenue.ie/en/corporate/documents/research/ror-2018-report.pdf.

As stated on page 6 of that report, normal business-related expenses, deductions for capital allowances on plant and machinery, business-related trading losses and losses from a rental activity that do not arise from the use of specified reliefs are not restricted. In addition, personal tax credits are not affected by the restriction.

I am advised by Revenue that it is not possible to assess the potential implications of the extension of the restriction to other reliefs, as some reliefs are not individually itemised in tax returns filed by relevant individuals.

Additionally, I would note that the purpose of the HIER is to limit certain specified reliefs so that the relevant cohort of high income taxpayers is paying a minimum effective rate of tax. The HIER analysis published by Revenue indicates that this outcome is already being achieved.

Tax Data

Questions (140, 141)

Ged Nash

Question:

140. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of local property tax of 0.25% or 0.2875% to properties valued over €750,001, from increasing the higher rate of the tax to 0.3% on the balance of properties valued over €1.05 million and .4% per cent on the balance of properties valued over €1.75 million in tabular form; and if he will make a statement on the matter. [38643/22]

Ged Nash

Question:

141. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of local property tax of 0.25 % or 0.2875 % on the balance of properties valued over €750,001 and €1 million, respectively in tabular form; and if he will make a statement on the matter. [38644/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 140 and 141 together.

I am advised by Revenue that the valuation provided by property owners in the Local Property Tax return is the LPT band and not the exact valuation of the property; for example, properties valued by their owners at €750,001 fall into the valuation band €700,001 - €787,500. Therefore, it is not possible to provide an accurate estimate of the yield of the possible change outlined by the Deputy for properties valued over €750,001. However, based on assumptions, an additional yield of approximately €21 million has been tentatively estimated for the proposed changes of applying a higher rate of LPT of 0.25% to properties valued over €750,001, increasing the higher rate of the tax to 0.3% on the balance for properties valued over €1.05 million and applying a 0.4% rate on the further balance for properties valued over €1.75 million.

I am further advised by Revenue that, on a similar basis, an additional yield of €25 million has been tentatively estimated for applying a higher rate of LPT of 0.2875% to properties valued over €750,001, from increasing the higher rate of the tax to 0.3% on the balance for properties valued over €1.05 million and applying a 0.4% rate on the further balance for properties valued over €1.75 million.

In relation to Question 38644/22, it is assumed that the Deputy is referring to introducing an LPT rate of 0.25% on values over €750,001 and 0.2875% on values over €1.05 million, with the existing rate of 0.3% continuing to apply to values over €1.75 million. I am advised by Revenue that the estimated yield from such a change is in the region of €18.7 million.

The Deputy may also wish to note that the LPT does not comprise part of Exchequer receipts, and is paid to the Local Government Fund rather than the Exchequer.

Question No. 141 answered with Question No. 140.

Tax Data

Questions (142)

Ged Nash

Question:

142. Deputy Ged Nash asked the Minister for Finance the estimated total savings to the Exchequer from applying only the standard rate of tax to all discretionary tax expenditures costing in excess of €5 million in tabular form; and if he will make a statement on the matter. [38645/22]

Written answers

Minister for Finance

I am advised by Revenue that the estimated yields from the standard rating of income tax reliefs costing in excess of €5 million and currently available at the marginal rate, based on data from 2019 tax returns, the latest year for which fully analysed data are available, are as shown in the following table. These estimates do not take into account any possible behavioural change on the part of taxpayers as a consequence of such a change.

Reliefs and Expenditures	Full Year Yield (€m)
Dispositions such as Maintenance Payments	6
Employing a Carer	2
Health Expenses (Nursing Homes)	9
Permanent Health Benefit Premiums	2
Employee Pension Contribution	516
Rental Deduction for Leasing of Farm Land	7
Stock Relief (General) (S666 Taxes Consolidation Act 1997)	2
Foreign Earnings Deduction	2
Donations to Charities and Approved Bodies	10
Total	556

Tax Data

Questions (143, 144)

Ged Nash

Question:

143. Deputy Ged Nash asked the Minister for Finance the estimated savings to the Exchequer by abolishing the current tax-free lump sum that can be withdrawn from a pension pot upon retirement, by reducing the current tax-free lump sum that can be withdrawn from a pension pot upon retirement from €200,000 to €100,000 or €50,000 respectively in tabular form; and if he will make a statement on the matter. [38648/22]

Ged Nash

Question:

144. Deputy Ged Nash asked the Minister for Finance the estimated yield to the Exchequer by reducing the standard fund threshold from €2 million to €1 million; and if he will make a statement on the matter. [38649/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 143 and 144 together.

I am advised by Revenue that there is no requirement for information to be included in tax returns in relation to lump sums of less than €200,000, which is the current life-time limit on tax-free retirement lump sums. Therefore, there is no data available that could be used as the basis for an estimate of the savings from the changes outlined by the Deputy.

The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes, which was introduced in Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million; it was subsequently reduced to €2.3 million with effect from 7 December 2010, and further reduced to €2 million with effect from 1 January 2014.

I am advised by Revenue that information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be provided to Revenue by the administrators of pension schemes and personal pension arrangements. Therefore, there is no underlying data available to Revenue on which to base reliable estimates of the savings that would arise from the proposed change to the SFT threshold.

Question No. 144 answered with Question No. 143.

Tax Data

Questions (145, 148, 149)

Ged Nash

Question:

145. Deputy Ged Nash asked the Minister for Finance the estimated yield from abolishing the primary private residence relief from capital gains tax from capping the primary private residence relief from capital gains tax at €1 million; and if he will make a statement on the matter. [38650/22]

Ged Nash

Question:

148. Deputy Ged Nash asked the Minister for Finance the estimated yield from capital gains tax retirement relief from applying a limit of €3m or €1m respectively to disposals or transfers to children or certain other close relations between the ages of 55 and 66; and if he will make a statement on the matter. [38653/22]

Ged Nash

Question:

149. Deputy Ged Nash asked the Minister for Finance the estimated yield from abolishing capital gains tax relief that is given to property acquired between 7 December 2011 and 31 December 2014; and if he will make a statement on the matter. [38654/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 145, 148 and 149 together.

I am advised by Revenue that the consideration amounts included on tax returns for previous years in respect of claims for principal private residence relief and retirement relief are published at the following link: www.revenue.ie/en/corporate/documents/statistics/income-distributors/summary-of-capital-gains-tax-returns.pdf

I am further advised that the yield from applying limits on these reliefs would depend on future disposals of the relevant assets, associated gains from these disposals and the impact of behavioural change as a result of these proposed changes. Therefore, any potential yields from the proposed changes cannot be accurately estimated.

Finally, I am advised by Revenue that it is not possible to provide the estimated yield from abolishing the capital gains tax relief that is given to property acquired between 7 December 2011 and 31 December 2014, as this would depend on the dates of disposal for future claims. However, analysis of previous claims of Section 604A relief is available at the following link:

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf

Question No. 146 answered with Question No. 135.

Question No. 147 answered with Question No. 135.

Question No. 148 answered with Question No. 145.

Question No. 149 answered with Question No. 145.