Written Answers Nos. 104-124
104. Deputy Niamh Smyth asked the Minister for Transport the number of persons on waiting lists for driving tests in counties Cavan, Monaghan and Meath and nationwide to date; the length of time that they have been waiting; the stage they are at in their application process in tabular form; and if he will make a statement on the matter. [47255/22]
View answerSpecific details on the number of persons awaiting a driving test and the length of time they have been waiting are held by the RSA. I have therefore referred this question to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
105. Deputy Cathal Crowe asked the Minister for Transport the status of the transfer of the Shannon Heritage sites into the management of Clare County Council. [46978/22]
View answerThe Shannon Airport Group informed the Department in Summer 2020 that it was necessary to consider a comprehensive and radical adjustment to its structure to secure the long-term future of the Shannon Heritage business and its employees. Government noted, inter alia, the intention of the Group to explore the potential to transfer the business of key heritage sites, where appropriate, to the relevant local authority, which was considered the most achievable option to secure the future of the heritage assets and employees.
The Shannon Airport Group has had extensive engagement with the relevant local authorities since early last year. Shannon Heritage ended their management contracts with An Post and Fingal County Council for sites in Dublin on 31 December 2021 and the transfer of the business and employees took place without issue. King John’s Castle was successfully transferred to Limerick City and County Council on 4 April. I would like to acknowledge the extensive preparation and cooperation between the Group and Fingal County Council, Limerick County Council and An Post for the smooth transfer of these sites.
I can advise the Deputy that the Shannon Airport Group continues to engage with Clare County Council in relation to the proposed transfer of Bunratty Castle and Folk Park, Craggaunowen, Knappogue Castle, and Cliffs of Moher Retail Outlet.
The Department is engaging regularly with both parties with a view to progressing the transfer preparations. As part of its engagement with the Shannon Airport Group, Clare County Council identified a funding gap for which it sought government assistance to enable it to take over the sites. In response to this, in May of this year, my Department established an inter-departmental working group to consider the funding options. The group included the Department of Housing, Local Government and Heritage, the Department of Public Expenditure and Reform, the OPW, and the Department of Tourism Culture, Arts, Gaeltacht, Sports and Media.
To date, the working group has met three times, and identified a number of ways to support a transfer. My Department has also met with Clare County Council and the Shannon Airport Group and has asked both to continue their engagement and consider the package of measures identified by the inter-departmental working group, with a view to reaching agreement on a transfer.
Once the remaining issues around the transfer are resolved, the Shannon Airport Group will be in a position to seek the formal consent of the Minister for Transport and the Minister for Public Expenditure and Reform to execute the transfer of the Shannon Heritage business and the relevant heritage sites and this will be done with the agreement of the Minister for Housing, Local Government and Heritage.
I would like to assure the Deputy that the Government recognises the importance of these heritage sites to the mid-west region, and will continue to support the Shannon Airport Group to ensure that the transfer of the Shannon Heritage business and heritage sites will proceed as planned with a view to ensuring the long-term viability and success of the business.
106. Deputy Catherine Connolly asked the Minister for Transport further to Parliamentary Question No. 239 of 17 May 2022, if the same aircraft (details supplied) has landed at Shannon Airport on any occasion in the intervening period since it landed there on 7 May 2022; if any further investigation has been carried out into the items that were being transported on this aircraft when it landed at Shannon Airport; and if he will make a statement on the matter. [47266/22]
View answerWith regard to your question concerning the operations of a particular aircraft at Shannon Airport, I have forwarded this to Shannon Airport Group for direct reply. If you do not receive a response from them within ten working days, please contact my private office.
On the other matter referenced in your question, I would take this opportunity to refer the deputy back to the answer to Question No. 239 of 17 May 2022. The operator had indicated prior to the flight that the cargo carried consisted of basic frame armoured vehicles, without weapons. My officials had confirmed this again with the air operator, in light of the particular attention the flight generated, and were satisfied that no weapons were carried. Beyond this, no further investigation was deemed to be warranted.
107. Deputy Holly Cairns asked the Minister for Transport the steps that he is taking to improve the recruitment and retention of staff in NCT centres. [47343/22]
View answerThe operation of the National Car Testing Service (NCTS) is the statutory responsibility of the Road Safety Authority (RSA). I have therefore referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
This is a serious matter and I am very aware of the challenges that the RSA and the NCTS are currently facing to meet demand and the delays which vehicle owners have encountered since the start of this year. My department has supported any appropriate requests from the RSA for assistance in improving matters that have been received to date - this includes in relation to recruitment. I recently met with the Authority to emphasise the importance of reducing the current test backlog as soon as possible and it has committed to providing me with weekly updates on the NCTS. Further, my officials are meeting weekly with the Authority's senior management to monitor their progress in reducing test delays, in addition to normal corporate governance processes.
I am advised that customers seeking test appointments may contact the NCTS directly, by calling 01-4135992, or may avail of the priority waiting list function via the NCT website, www.ncts.ie. I understand that, in the majority of cases, these vehicle owners are provided with an appointment within 30 days.
108. Deputy Holly Cairns asked the Minister for Transport if an additional bus stop will be provided on the western side of Bandon to facilitate elderly residence. [47345/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the provision of bus stops and shelters.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
109. Deputy Jennifer Whitmore asked the Minister for Finance the reason that mandatory registration fees for veterinary nurses is not currently tax deductible when the mandatory registration fee is for other professions such as doctors, nurses, opticians, and veterinary surgeons; if there are plans to change this in order to make it a tax-deductible fee; and if he will make a statement on the matter. [47063/22]
View answerSection 114 of the Taxes Consolidation Act 1997 (TCA) provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
I am advised by Revenue that professional membership fees are only deductible under section 114 TCA where they are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
In the context of professional fees, this generally means where:
1. the duties of an employment necessitate that the employee is a member of a professional body, or holds a practising certificate or licence, and
2. the employee cannot exercise those duties without that membership, certificate or licence.
The flat rate expense (FRE) regime is operated by Revenue on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the Taxes Consolidation Act (TCA) 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary. Revenue has advised me that it will consider FRE applications where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer.
Applications are generally made by the representative bodies in the employment sectors concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied statutory requirement for a tax deduction.
I am advised by Revenue that Veterinary Nurses have an existing FRE valued at €400 where the individual supplies and launders their work uniforms and €150 where the work uniforms are supplied by their employer and the individual incurs only laundry costs. This current FRE for veterinary nurses does not incorporate the yearly statutory registration fee with The Veterinary Council of Ireland.
In recent years Revenue conducted a comprehensive review of the administratively based FRE regime which involved engagement with relevant representative bodies, to ensure that the expenses granted to each employment category remain justified and appropriate to modern day. Each category of FRE allowance was examined separately in the light of the legislative requirements of section 114 of the Taxes Consolidation Act (TCA) 1997, which as stated above, provides that expenses are tax deductible only if they are wholly, exclusively, and necessarily incurred by the employee in the performance of the duties of his or her employment and are not reimbursed by the employer.
I understand that, on foot of the comprehensive review carried out of the FRE rates, Revenue advised the representative body for veterinary nurses that, in their case, it is intended that the statutory registration fee will be included as part of an updated FRE rate when implemented. Revenue advises me that it remains committed to the FRE regime and encourages all taxpayers to avail of their full tax relief entitlements.
Pending the implementation of the revised FRE rates, as for all employees, veterinary nurses retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which the expenses are not reimbursed by the employer or not already included in the relevant FRE amount.
The quickest and easiest way to claim tax relief for qualifying employment expenses (including any FRE) is to complete an online Income Tax Return. This return can be found in the PAYE Services tab in myAccount on the Revenue website.
Detailed guidance on membership fees paid to a professional body is available on Revenue’s website:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-18.pdf.
Further guidance on the general rule of deduction of expenses in employment is also available on Revenue’s website: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf.
110. Deputy Catherine Connolly asked the Minister for Finance the options that are available to persons who require Government-issued photographic identification for the purposes of opening a bank account and who do not have a driving licence or passport; and if he will make a statement on the matter. [46621/22]
View answerCredit and Financial Institutions are obliged to identify and verify their customer’s identity on the basis of documents or information which they have reasonable grounds to believe can be relied upon to confirm the identify of the customer. This may include documents from a Government source, such as a passport or driving licence and institutions often use such documents to verify a customer’s identity.
However, neither the relevant legislation (the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended), nor the Central Bank of Ireland are prescriptive as to what documents and information can be relied upon. Therefore institutions have some flexibility in regard to the forms of identification documentation they may choose to rely upon and request from customers. Credit and financial institutions must take a risk-based approach when applying anti-money laundering rules and therefore it is likely that some institutions will require more - and specific - types of customer identification, than others in the sector. Accordingly these may include, but are not limited to, Government-issued photographic identification such as driving licences and passports.
My officials have contacted the Banking and Payments Federation Ireland (BPFI) and are advised that the BPFI is aware of the issues arising from the upcoming departure from the State, of Ulster Bank and KBC. BPFI advised that institutions risk-assess customers on a case-by-case basis, including those customers switching bank accounts from Ulster Bank and KBC. BPFI also advised that it is currently drafting guidance for its members in relation to this matter.
Full lists of accepted proof of identity and address documents and information on how to open a bank account can be found on each of the retail banks' websites. Anyone who is unsure of how to meet the identification requirements should inquire with the bank of his/her/their choice on what would be acceptable.
The Competition and Consumer Protection Commission (CCPC) has developed advice for consumers switching their current accounts, available on its website at www.ccpc.ie/move.
111. Deputy Matt Carthy asked the Minister for Finance the amount raised through the carbon tax on glasshouse growers of food crops using CO2 enrichment in each of the years 2017 to 2021 and to date in 2022, in tabular form; and if he will make a statement on the matter. [46634/22]
View answerI am advised by Revenue that Carbon Tax receipts for each of the years since its introduction in 2010 up to 2021 are published on the Revenue website at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.
I am further advised that receipts raised from Carbon Tax specific to glasshouse growers of food crops using CO2 enrichment is not available.
112. Deputy Matt Carthy asked the Minister for Finance the amount raised through VAT on non-oral animal medicines and vaccines in each of the years 2017 to 2021 and to date in 2022, in tabular form; and if he will make a statement on the matter. [46635/22]
View answerI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods or services in their periodic VAT returns. Therefore, it is not possible to provide an estimate of the amount of VAT raised from non-oral animal medicines and vaccines.
113. Deputy Cathal Crowe asked the Minister for Finance if the rules in relation to flat-rate expenses will be amended to include podiatrists and chiropodists (details supplied). [46651/22]
View answerSection 114 of the Taxes Consolidation Act 1997 (TCA) provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
The flat rate expense (FRE) regime is operated by Revenue on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the Taxes Consolidation Act (TCA) 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary.
Chiropodists and podiatrists
Revenue has advised me that it will consider FRE applications where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer.
Applications are generally made by the representative bodies in the employment sector concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied, statutory requirement for a tax deduction.
I am advised by Revenue that a submission to apply a FRE, in respect of chiropodists and podiatrists has not been made to them. Should such a submission be submitted from the representative body, outlining the expenses incurred by chiropodists and podiatrists, which satisfy the legislative conditions, it will be considered by Revenue.
Notwithstanding that an FRE is not in place for chiropodists or podiatrists, as for all employees, they retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which the expenses are not reimbursed by the employer or not already included in the relevant FRE amount.
The quickest and easiest way to claim tax relief for qualifying employment expenses (including any FRE) is to complete an online Income Tax Return. This return can be found in the PAYE Services tab in myAccount on the Revenue website.
Detailed guidance on membership fees paid to a professional body is available on Revenue’s website:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-18.pdf.
Further guidance on the general rule of deduction of expenses in employment is also available on Revenue’s website: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf.
114. Deputy Michael Healy-Rae asked the Minister for Finance if increases in benefit-in-kind that are due to take effect on 1 January 2023 as a result of changes brought in by the Finance Act 2019 will be postponed (details supplied); and if he will make a statement on the matter. [46653/22]
View answer119. Deputy Joe Carey asked the Minister for Finance if the proposed changes to the benefit-in-kind on company cars which will then be calculated with reference to CO2 emissions will be implemented in January 2023; the changes that will be introduced to help offset the dramatic additional cost to both the employer and employee; and if he will make a statement on the matter. [46719/22]
View answer124. Deputy Michael Creed asked the Minister for Finance if he will review the activation of section 6 of the Finance Act 2019 as it relates to liability for benefit-in-kind for employees with company cars given that presently the availability of lower emission, hybrid and electric vehicles is significantly curtailed thereby constraining employers and employees in their efforts to move to more sustainable motoring; and if he will make a statement on the matter. [46811/22]
View answerI propose to take Questions Nos. 114, 119 and 124 together.
At the outset, the Deputy should note that recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes I brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four. EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges will incentivise employers to provide employees with low-emission cars.
I am aware there have been arguments surrounding the mileage bands in the new BIK structure as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its implementation in 2023. Therefore there are no plans to postpone its introduction.
115. Deputy Matt Carthy asked the Minister for Finance the status of a review into farm contractors regarding the carbon tax; if he intends to introduce any measures arising from such in Budget 2023; and if he will make a statement on the matter. [46661/22]
View answerFinance Act 2012 introduced section 664A of the Taxes Consolidation Act 1997 which provides that a farmer may take an income tax or corporation tax deduction for farm diesel (including any carbon tax charged in respect of diesel) and then a further deduction for farm diesel which is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
The measure was reviewed as part of the Tax Strategy Group and part of the Climate Action and Tax Paper which is available at: assets.gov.ie/231224/4d31b697-1bfb-4177-bb96-a744bbdfba99.pdf.
The relevant TSG paper concluded that:
"On the grounds of equity, the case for a continuation of section 664A for farmers is not a strong one. In a more benign set of circumstances for farm enterprises, a clear recommendation to remove section 664A, perhaps on a phased basis over a number of years, might be appropriate. The fact that the normal business deduction in respect of input costs would remain in place as well as the VAT refund scheme for business diesel expenditure should also be kept in mind.
However, the war in Ukraine has caused fuel prices to increase and has raised concerns domestically about food security and the supply of fodder. The Minister for Agriculture, Food and the Marine has tasked a National Fodder and Food Security Committee to prepare an industry response to the emerging crisis in feed, fodder, fertiliser and other inputs, and to develop contingency plans and advice to assist farmers in managing their farm enterprises. Against this background, the 2022/2023 autumn-winter period would not seem to be the appropriate time to make a change. It may be preferable to consider signalling a policy change in the current year but to defer action until a later date.
At the same time, a move to extend the scope of section 664A beyond the current cohort of beneficiaries might be seen to undermine the desired objective of putting in place a policy approach which is more aligned across different goals. If it is considered that farm contractors require support, this might best be addressed in the context of a longer-term policy for agriculture."
The position is that I have not made any change, either to extend or curtail the so called double deduction for farm diesel, in today's Budget.
116. Deputy Matt Carthy asked the Minister for Finance the remaining increases in carbon tax that will apply to agricultural diesel in 2022 and 2023; if he has considered delaying or rescinding entirely such increases; and if he will make a statement on the matter. [46662/22]
View answerIn line with the Programme for Government commitment on carbon tax policy, Finance Act 2020 legislates for annual increases in the rate of carbon tax out to 2030. Finance Act 2020 sets out the specific rate impacts and date of impact for each affected fuel and is available online :
Finance Act 2020 , Section 27 (irishstatutebook.ie).
As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
117. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied) ahead of Budget 2023; and if he will make a statement on the matter. [46699/22]
View answerAs the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of a Budget decision. The correspondence submitted by the Deputy has been reviewed as part of the pre-budget process.
118. Deputy John Lahart asked the Minister for Finance the reason that private pension holders continue to pay a pension levy; and if he will make a statement on the matter. [46711/22]
View answerCurrently, private pension holders are not required to pay a pension levy.
An annual levy was charged on pension schemes from 2011 to 2015 in accordance with section 125B of the Stamp Duties Consolidation Act 1999. The levy was introduced in the wake of the financial crash, at a time when the economy was in very serious difficulties. It was charged on the market value of assets in pension schemes held on 30 June in each year at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015). Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets.
The levy was discontinued from 2016.
120. Deputy Violet-Anne Wynne asked the Minister for Finance if a special wage support and other emergency subsidies will be targeted to help SMEs and entrepreneurs similar to the effective emergency measures supports during Covid; and if he will make a statement on the matter. [46744/22]
View answerThe Employment Wage Subsidy Scheme (EWSS) was a key component of the Government’s response to the Covid-19 pandemic. It was an emergency measure to support employment and maintain the link between employers and employees. Notwithstanding the current challenges facing some businesses associated with high energy costs, the present circumstances are different to those in place when the EWSS was introduced. As such, I have no current plans to introduce a wage subsidy scheme.
However, as announced in my Budget Day speech, I am introducing a Temporary Business Energy Support Scheme to assist businesses with their energy costs over the winter months. Further details in relation to this new temporary scheme are set out in the documentation published on www.gov.ie.
121. Deputy Violet-Anne Wynne asked the Minister for Finance if a special grant or tax measure will be considered for businesses to acquire more energy efficient equipment as a special short-term measure during the current energy crisis; and if he will make a statement on the matter. [46745/22]
View answerThe Deputy may be aware that the tax code already provides an incentive to encourage businesses to invest in energy efficient equipment. The Accelerated Capital Allowance (ACA) scheme for Energy Efficient Equipment (EEE) is provided for in Section 285A of the Taxes Consolidation Act 1997. The ACA scheme for EEE allows taxpayers to deduct the full cost of expenditure on eligible equipment from taxable profits in the year of purchase. This differs from the standard treatment applicable to capital assets, whereby wear and tear is taken into account as a deduction for tax purposes at a rate of 12.5% annually, over eight years.
The purpose of the scheme is to provide a tax incentive for companies and sole-traders to invest in highly EEE, to improve the overall energy efficiency of Irish companies and sole-traders, and to aid Ireland in meeting our national and EU targets on energy savings and the reduction of carbon emissions.
In order for equipment to qualify for the scheme it must meet detailed energy efficiency criteria as set by the Sustainable Energy Authority of Ireland (SEAI). Products which meet these criteria are listed on the SEAI’s Triple E Register which provides a benchmark register of best in class energy efficient products. There are approximately 30,000 eligible products on the SEAI’s Triple E Register across 10 classes of technology.
ACA on EEE is claimed through the normal self-assessment provisions, there is no requirement to obtain prior approval for capital expenditure on the equipment. The allowance should be claimed on the person’s return of income, the Form CT1 for a company or Form 11 for an unincorporated business (sole-trader or member of a partnership). Both the CT1 and Form 11 include a separate line for claims made under section 285A, allowing claimants to separately claim wear and tear allowances for other plant and machinery.
To establish whether equipment qualifies for the ACA scheme for EEE, taxpayers can search for the equipment on the Triple E Products Register on the SEAI website at the link below: triplee.seai.ie/AcaProducts/Search.aspx.
122. Deputy David Cullinane asked the Minister for Finance his views on matters raised in correspondence (details supplied) in relation to benefit-in-kind on company cars; and if he will make a statement on the matter. [46781/22]
View answer126. Deputy Niall Collins asked the Minister for Finance if the benefit-in-kind charge in relation to a person (details supplied) is correct; and if he will make a statement on the matter. [46840/22]
View answerI propose to take Questions Nos. 122 and 126 together.
The query is referring to the implementation of the new rules applying to the calculation of benefit-in-kind in respect of employer provided vehicles to employees, for the tax year 2023 and subsequent years.
Broadly, new rates of benefit-in-kind will apply to the provision of a company car, from 1 January 2023, which among existing factors will now take into account the CO2 emissions of the car. As a consequence, lower rates of tax will generally apply to cars that are more environmentally friendly.
From 1 January 2023 the amount taxable as a benefit-in-kind remains determined by the car’s original market value (OMV) and the annual business kilometres driven, but new CO2 emissions bands will be used to determine whether a standard, discounted, or surcharged rate applies. Thus, under the new charging regime, the carbon footprint and fuel emissions of the car play a key role in determining the benefit-in-kind charge.
Regarding the specific circumstances of the person referred to in the details supplied, a 6% BIK rate under the current rules would suggest that the person concerned does mileage in excess of 48,000 per annum. The person also indicates that under the new rules, for the 2023 tax year and subsequent years, they will be liable to BIK at a rate of 18%. This suggests they are driving a non-electric car in category C (i.e. CO2 Emissions more than 99g/km up to and including 139g/km) with business mileage of between 39,001 to 52,000.
The precise arrangements surrounding what types of vehicles are provided by employers for those employees that are ‘on the road’ in the performance of their duties is a matter between the employee and their employer. Given the new taxation rules that will apply for company cars from 1 January next, it may provide an opportunity for the person concerned to discuss the matter with their employer.
I am aware there have been arguments surrounding the mileage bands in the new BIK structure as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its implementation in 2023. Therefore there are no plans to postpone its introduction.
123. Deputy Michael Ring asked the Minister for Finance the reason that an Act which was never intended for small community groups is being applied rigorously to the community groups (details supplied); and if he will make a statement on the matter. [46797/22]
View answerThe National Treasury Management Agency (NTMA) who manages State Savings have informed me that, under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended, designated bodies, such as An Post and the Prize Bond Company, are required by law to comply with anti-money laundering requirements and verify all customers’ identities.
State Savings products are distributed and administered by An Post and the Prize Bond Company acting as agents of the NTMA and are subject to published Terms and Conditions which contain the applicable requirements regarding confirmation and verification of the identity of all purchasers/holders.
State Savings products are offered by the Minister for Finance acting through the National Treasury Management Agency (NTMA) pursuant to the powers conferred on the NTMA by the National Treasury Management Agency Act 1990 and the National Treasury Management Agency Act 1990 (Delegation of and Declaration as to Functions) Order 1990 (S.I. No 277 of 1990).
