Written Answers Nos. 239-260
239. Deputy Ged Nash asked the Minister for Finance the estimated number of housing units that are expected to be subject to the vacant homes tax in 2023; the number of homes that informed the €3 million yield in Budget 2023 documentation; and if he will make a statement on the matter. [48536/22]
View answerAs the Deputy is aware, the Vacant Homes Tax is a new measure announced on Budget Day, which aims to increase the supply of homes for rent or purchase to meet demand. Further detail on this measure will be made available on the publication of the Finance Bill on 20 October. The introduction of this tax follows from my Department's commitment under Housing for All to collect data on vacancy with a view to introducing a vacant property tax. The Finance (Local Property Tax) (Amendment) Act 2021 facilitated the collection on data on vacant property through LPT returns.
A preliminary analysis of the vacancy data was published by Revenue in July this year, following the LPT revaluation in November 2021, and can be found on their website: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx
In arriving at the estimates for the Budget documentation, certain assumptions were made based on the Revenue data and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It is tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.
As stated in my Budget speech, this measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.
240. Deputy Réada Cronin asked the Minister for Finance if his attention has been drawn to any practice of banks operating in the Irish market of assigning debt or chose in action to vulture funds but of failing to give notice to the debtor of the amounts assigned. [48541/22]
View answerThe Deputy will be aware that most loan agreements include a clause that allows the original lender to sell the loan on to another firm. When a loan is sold, the relevant Irish and EU consumer protections continue to apply.
Provision 3.11 of the Central Bank's Consumer Protection Code provides, amongst other things, that where a regulated entity intends to transfer all or part of its regulated activities to another regulated entity it must provide at least two months notice to affected consumers to enable them to make alternative arrangements, and inform the consumer that their details are being transferred to the other regulated entity, if that is the case.
All regulated firms, including banks, retail credit and credit servicing firms, are obliged to comply with the Central Bank's Consumer Protection Code 2012 (the Code) in addition to a range of other provisions of Irish financial services law which are outlined more fully below. Collectively, these provide a strong consumer protection framework, providing rules with which regulated firms operating in Ireland must comply by law.
The Consumer Protection (Regulation of Credit Servicing Firms) 2015 amended the scope of the Central Bank Act 1997 and brought ‘credit servicing’ under Central Bank regulation and supervision. This resulted in a significant strengthening of consumer protection for borrowers whereby all consumer protection obligations would travel with loans, if they were sold by a bank to a new non-bank owner. Under the 2015 legislation, the new loan owners themselves did not directly fall to be regulated; rather it was the company appointed to ‘service’ those loans by the loan owner.
The Consumer Protection (Regulation of Credit Servicing Firms) 2018 further expanded the scope of the 1997 Act and brought the loan owners (holders of legal title to the credit) directly under Central Bank regulation and supervision, and within the scope of the relevant consumer protection framework.
Therefore, since 2015, credit servicing firms have been subject to the provisions of Irish financial services law that apply to regulated financial service providers, including, but not limited to:
- the Consumer Protection Code
- the Code of Conduct on Mortgage Arrears 2013
- the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015,
- the Fitness and Probity Regime,
- the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Minimum Competency Regulations 2017, and
- the Minimum Competency Code 2017
The Central Bank’s approach to supervision of the credit-servicing sector is underpinned by an expectation of high standards and a professional and consumer-focused approach to compliance.
241. Deputy Réada Cronin asked the Minister for Finance his views on whether any instrument of assignment of a debt or chose-in-action in cases in which there has been a failure to pay duty on a chargeable instrument, is inadmissible to prove the assignment, subject to the provisions of section 127(4) of the Stamp Duty Consolidation Act 1999; if he is satisfied that all banks and vulture funds so called must and do produce certificates of proof that duty has been paid on certain instruments of assignment; if he is satisfied that any such failure to produce such certificates of proof would render those instruments inadmissible to prove the assignment; and if he will make a statement on the matter. [48542/22]
View answer242. Deputy Réada Cronin asked the Minister for Finance if he is satisfied that the Revenue Commissioners are providing certificates for all payments of duty made on chargeable instruments; if he will publish copies of all such certificates issued by the Revenue Commissioners, together with details of same in tabular form; if deemed necessary if he will request an investigation into the issuing of certificates of proof of payment of duty on chargeable instruments of assignment or debt or choses-in-action; and if so if will inform Dáil Éireann of the outcome of same; and if he will make a statement on the matter. [48543/22]
View answerI propose to take Questions Nos. 241 and 242 together.
As they both relate to stamp duties on chargeable instruments.
Regarding Dail Question 241 (Ref: 48542/22), I am advised by Revenue that in general, it is a requirement that all transfers or leases of property be stamped by Revenue irrespective of whether they are liable to stamp duty. All other instruments, if liable to stamp duty, must be stamped by Revenue. The requirement to submit instruments to Revenue for stamping was provided for in section 12 SDCA 1999 and subsequently by the e-Stamping Regulations for the electronic filing of instruments, which came into operation on 1 June 2011.
Section 127 of the Stamp Duties Consolidation Act (SDCA) 1999 provides that an unstamped instrument may not be used in evidence or for any purpose except as evidence in criminal proceedings or in civil proceedings by Revenue to recover stamp duty. Accordingly, I am advised by Revenue that where there is a requirement to have an instrument stamped by Revenue and that requirement is not satisfied, apart from the circumstances outlined, section 127 provides that the instrument may not be used in evidence, including to prove title to the property which is the subject of the instrument. Banks and other bodies are not excluded from these requirements.
Where a liability to stamp duty arises on an instrument of assignment of a chose-in-action and the instrument is not stamped, then, in accordance with section 127 SDCA 1999, the instrument may not be used in evidence or for any purpose except as evidence in criminal proceedings or in civil proceedings by Revenue to recover stamp duty. Prior to 7 December 2006, stamp duty was chargeable on debts such as debentures and bonds including mortgages securing loans on property situated in the State and any subsequent transfer of such debts where the amount secured exceeded €254,000. Section 100 Finance Act 2007 terminated this charge for such ‘debt’ documents executed after this date.
Regarding Dail Question No. 242 (Ref: 48543/22), I am also advised by Revenue that as stamp duty is a self-assessed duty, Stamp Certificates issue automatically once the return has been filed and any payment due, including, interest, surcharges or penalties, has been paid in full.
Revenue is obliged to treat personal and business information of all taxpayers in the strictest of confidence and therefore it is not in a position to publish copies of certificates. Revenue will, however, provide a breakdown of the number of certificates issued under each instrument to the Deputy in the coming weeks. If the Deputy has a concern relating to a specific transaction and sends details of that transaction to my Department, I can provide the details to Revenue for further examination.
244. Deputy John Paul Phelan asked the Minister for Finance the way that he intends to provide for amendments to the payable element of the research and development tax credit, to ensure that it aligns with the new international definitions; and if he will make a statement on the matter. [48591/22]
View answerAgreement was reached in October 2021 on the historic Two Pillar Solution addressing the tax challenges of the digitalised economy. Pillar Two of the agreement provides for a new global minimum effective rate of tax, and therefore consideration was required as to how tax credits, such as the R&D tax credit, would operate within such a system.
The signatory countries, including Ireland, recognise the valuable economic and societal role played by research and development activities, and the Model Rules therefore provide that “Qualified Refundable Credits” may be treated as income, rather than as reducing tax paid, thereby preserving the value of R&D tax credits in the context of the new minimum effective tax rate calculations.
A similar concept of a "fully refundable" tax credit was also introduced in U.S. Foreign Tax Credit regulations earlier this year.
These developments were considered in my Department's corporation tax Tax Strategy Group paper earlier this year.
In order to align the operation of the R&D tax credit with new international standards, I announced a number of amendments to the credit in Budget 2023. The changes all relate to the manner and timing of payment of the tax credit and do not affect the quantum of credit that a company is entitled to claim. As a result, the changes are net neutral in budgetary terms. The changes are as outlined below:
- The current system of offset of the R&D tax credit against corporation tax liabilities and payment in three payable instalments is being changed to a new, fixed three-year payment system.
- A company will have an option to call for payment of their eligible R&D tax credit or to request for it to be offset against other tax liabilities.
- Existing caps on the payable element of the credit are being removed.
- The first €25,000 of a claim will now be payable in full in the first year, to provide a cash-flow benefit for smaller R&D projects and encourage more companies to engage with the regime.
- Transitional measures will be in place for one year, to smooth the transition to the new payment system for companies that are already engaged in research & development activities.
245. Deputy John Paul Phelan asked the Minister for Finance if he will set out the current mechanism of the knowledge development box; the way the measures outlined in budget 2023 will have an impact; and if he will make a statement on the matter. [48592/22]
View answerThe KDB is an Intellectual Property (IP) regime for companies which was introduced in Finance Act 2015. The objective of the KDB is to encourage companies to develop IP in Ireland and thereby engage in substantive operations that have a high ‘value-add’ for the Irish economy. The KDB complements the existing suite of initiatives and supports that Ireland offers to create a business-friendly environment.
The KDB provides for an effective 6.25% rate of corporation tax on income arising from qualifying assets. Qualifying assets in respect of the KDB are:
- Computer programs;
- Inventions protected by a qualifying patent; or
- Certified inventions for SMEs.
To qualify for the KDB, the qualifying assets must result from qualifying R&D activities carried out by the company in Ireland. This meets the OECD’s ‘modified nexus standard’, an approach which provides that a taxpayer may only benefit from an IP regime to the extent it can clearly show that it incurred expenditure that resulted in the qualifying asset(s).
The KDB regime is currently available to companies for accounting periods commencing before 1 January 2023. I announced in Budget 2023 that Finance Bill 2022 will provide for the extension of this sunset provision to accounting periods commencing before 1 January 2027.
In preparation for the implementation of the Pillar Two Subject to Tax Rule (STTR), Finance Bill 2022 will also provide for an increase in the effective rate of the KDB to 10%, to be brought into effect by commencement order when agreement is reached at the OECD on implementation timelines for the STTR.
This will allow for the retention of the KDB incentive within the Irish tax system, where it will continue to deliver a benefit for those companies that are eligible to claim it, while also putting in place necessary preparations for implementation of the Pillar Two agreement.
246. Deputy John Paul Phelan asked the Minister for Finance if he will report on the research and development tax credit and knowledge development box public consultation; the next steps that his Department will take; and if he will make a statement on the matter. [48593/22]
View answerAn evaluation of the R&D tax credit and the Knowledge Development Box (KDB) took place this year in line with my Department’s Tax Expenditure Guidelines.
As part of that review, my Department held a public consultation on the R&D tax credit and the KDB, closing on 30 May 2022. Twenty-one submissions were received from a range of respondents, including companies engaged in R&D activities, advisory firms, and other Government Departments.
The submissions received are all now available online at the following link: www.gov.ie/en/consultation/d12cb-public-consultation-on-the-research-development-tax-credit-and-the-knowledge-development-box-april-2022/
The completed review can also be found online at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/, in the Report on Tax Expenditures 2022, which was published on Budget Day.
I announced a number of amendments to the R&D tax credit in Budget 2023, primarily to align the operation of the credit with new international standards. The changes all relate to the manner and timing of payment of the credit and do not affect the quantum of credit that a company is entitled to claim. As a result, the changes are net neutral in budgetary terms. The changes are as outlined below:
- The current system of offset of the R&D tax credit against corporation tax liabilities and payment in three payable instalments is being changed to a new, fixed three-year payment system.
- A company will have an option to call for payment of their eligible R&D tax credit or to request for it to be offset against other tax liabilities.
- Existing caps on the payable element of the credit are being removed.
- The first €25,000 of a claim will now be payable in full in the first year, to provide a cash-flow benefit for smaller R&D projects and encourage more companies to engage with the regime.
- Transitional measures will be in place for one year, to smooth the transition to the new payment system for companies that are already engaged in research & development activities.
With regard to the KDB, I provided in Budget 2023 for the extension of the relief for a further four years, making it available for accounting periods commencing before 1 January 2027. In preparation for the implementation of the Pillar Two agreement, I also provided for an increase in the effective rate of the KDB to 10%, to take effect from a commencement date which I will prescribe via a commencement order. This will be linked to international agreement on implementation of the Pillar Two Subject to Tax Rule, which is expected in 2023.
247. Deputy Eoin Ó Broin asked the Minister for Public Expenditure and Reform the number of domestic flights for work purposes taken by him, Ministers of State in his Department and department staff for each of the years 2019 to 2021 and to date in 2022, in tabular form. [47919/22]
View answerI wish to advise the Deputy that I have not taken any domestic flights for work purposes since my appointment as Minister for Public Expenditure and Reform in June 2020. The details of any such travel by my predecessor as Minister for Public Expenditure and Reform for the period 2019 to June 2020 will be included in the response to this Parliamentary Question provided by the Minister for Finance.
In addition, I wish to advise the Deputy that no such travel has been undertaken by any of the officials in my Department, by the Minister of State Ossian Smyth, T.D., or by his predecessor.
This year, Minister of State at the Office of Public Works, Patrick O’Donovan, T.D., has taken one domestic return flight from Connemara Airport to Inís Mór.
248. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which Garda plans for a new permanent station at a location (details supplied) are still being advanced; the status of the plans; and if he will make a statement on the matter. [48104/22]
View answerThe Gardai have a new facility in Dublin Port which was completed last year. The former Calor Gas building was fully refurbished, renewed and extended. It is now occupied by the Gardai.
249. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform his views in relation to an overnight allowance in an OPW site (details supplied) in County Kerry; and if he will make a statement on the matter. [48183/22]
View answerI wish to confirm to the Deputy that this issue is currently being progressed and investigated by the Office of Public Works with the assistance of the Revenue Commissioners and the Department of Public Expenditure and Reform as a matter of urgency. I have asked my officials to revert to you directly on the matter, advising on background and progress to date.
250. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform if he will provide an update on a matter (details supplied); if a contractor has been appointed; the timeline for when this facility will be operational; and if he will make a statement on the matter. [48269/22]
View answerA site owned by Mayo County Council has been identified for the new Coast Guard Station in Westport and the formal transfer of the site to the Office of Public Works is being finalised.
Full Planning Permission has been granted and design documents have been prepared for the new Coast Guard Station. The project is now progressing to procurement stage in tandem with the site transfer and it is envisaged that a contractor will be appointed when a successful procurement process is completed.
251. Deputy Cathal Crowe asked the Minister for Public Expenditure and Reform if he will urgently request senior Office of Public Works engineers to assess the works that were recently undertaken to arrest coastal erosion at Spanish Point Beach, County Clare and to determine if further remedial works are required (details supplied); and if he will make a statement on the matter. [48318/22]
View answerCoastal Erosion issues are a matter, in the first instance, for each Local Authority to investigate and address. All Local Authorities may carry out coastal erosion mitigation works, using either their own resources, or by applying for funding under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme.
Under this scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects. Applications are assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including a cost benefit to cost ratio and having regard to the availability of funding for flood risk management. Full details of this scheme are available on www.floodinfo.ie/minor-works/
In 2020, Clare County Council was granted €225,000 of funding from the OPW Minor Flood Mitigation Works and Coastal Protection Scheme, to provide rock armour a 75 metre length of Spanish Point Beach and recent works have been carried out.
As the works at Spanish Point Beach are a matter for Clare County Council, if it determines that further works are required, the Council can apply for funding under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme.
252. Deputy Danny Healy-Rae asked the Minister for Public Expenditure and Reform if his attention has been drawn to the case of a mural (details supplied); the reason that the mural was painted over; and if he will make a statement on the matter. [48324/22]
View answerI understand from my officials that the mural in question was placed on a wall in the laneway off Castle Street in Tralee, and was part of a temporary arrangement with the owner of the property for the duration of the filming of a film. The wall in question is owned by a private retail business.
The OPW shares parts of the building facade with the business. Recently, as part of a planned maintenance programme, the OPW’s Property Maintenance Division was carrying out routine external painting maintenance of Atlas House to enhance the aesthetic of the building. The OPW agreed the painting scheme with the owners of the shop. At no stage was the OPW alerted that there was any long-standing agreement in place to retain the artwork on the wall, beyond the temporary nature outlined above, and proceeded with the works as was agreed between the property owners.
254. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if an issue in relation to the provision of a vehicle storage unit (details supplied) will be examined; and if he will make a statement on the matter. [48500/22]
View answerThe Office of Public Works has been engaged by the Department of Transport Coast Guard Service to examine the feasibility of the construction of a vehicle storage unit for the Iveragh / Waterville Coast Guard Station. A feasible storage unit option to meet the requirements of the Coast Guard has been identified at the site of the former Garda Station.
There is ongoing engagement with an adjoining land owner at the site in order to reach agreement on the future use. It is not expected that this will cause any unusual delay to the project. Work is ongoing on the details of a final design aimed at bringing the proposal forward to formal planning stage.
255. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he continues to exercise the functions of reform throughout all Departments given that this applies to achieving the best possible results through this medium budgeting; and if he will make a statement on the matter. [48661/22]
View answerI thank the Deputy for his question.
The Department of Public Expenditure and Reform’s mission as laid out in the Statement of Strategy 2021- 2023 is to serve the public interest through sound governance of public expenditure and by leading and enabling reform across the Civil and Public Service.
To date a number of strategies have been published to carry out the Department’s mission, and at present the next phase of public service reform (to succeed Our Public Service 2020) is being prepared by officials. It will incorporate priorities that were articulated in the Public Service Innovation Strategy, Making Innovation Real in addition to aligning with the ambitions set out in the programme of renewal for the Civil Service (Civil Service Renewal 2030) and its recently published three year Action Plan (Civil Service Renewal 2024).
Additionally, in March 2022, the Office of the Government Chief Information Officer in my Department published a new Public Service Digital Strategy 'Connecting Government 2030: A Digital and ICT Strategy for Ireland’s Public Service', which articulates my Department’s ambitions for digital reform by further embedding digitisation and the increased delivery of digital services to the public.
As regards the drive for more value for money all public organisations are required to treat public funds with care, and to ensure that the best possible value for money is obtained whenever public money is being spent or invested. This is in accordance with the Public Spending Code. Moreover, Action 5 of Our Public Service 2020 (Action 5) emphasises the need to ensure value-for-money principles are adhered to across the Public Service.
As part of this broader approach to ensuring value for money, the introduction of shared services and centralised procurement in earlier phases of reform have been further integrated in public service operations and expanded into new areas. These expansions will continue apace and this Department is actively exploring new areas and mechanisms to further embed reforms and efficiencies that will enhance the cost-effectiveness of public services; for example, through greater use of opportunities presented through digitalisation, intelligent automation, innovation and the implementation of new ways of working and service design.
The Deputy may also wish to note that, as part of the Public Service Pay Agreement ‘Building Momentum’ (and any extension thereof), parties are committed to the ongoing reform and development of public services to meet the changing needs of citizens, communities, businesses and the staff who deliver our public services.
257. Deputy Eoin Ó Broin asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the number of domestic flights for work purposes taken by her, Ministers of State in her Department and department staff for each of the years 2019 to 2021 and to date in 2022, in tabular form. [47923/22]
View answerMy Department was established in June 2020. Consequently, the table below outlines information on domestic flights for work purposes taken by me, Minister of State, Jack Chambers, T.D., and officials from that period to-date. The Deputy may wish to note that my Department has offices in Dublin, Killarney, Galway and Donegal and that many of the functions of the Department, including those that relate to sport, tourism, culture and the Gaeltacht necessitates travel across Ireland for meetings and events.
|
DOMESTIC FLIGHTS FOR WORK PURPOSES |
June - Dec 2020 |
2021 |
2022 to date |
TOTAL |
|
Minister |
0 |
0 |
0 |
0 |
|
Minister of State |
0 |
1 |
4 |
5 |
|
Department officials |
0 |
6 |
8 |
14 |
|
|
|
|
|
|
|
TOTAL |
0 |
7 |
12 |
19 |
258. Deputy Michael Creed asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the funding that is available from her Department or agencies funded by her Department for the fit-out of new theatres; and if she will make a statement on the matter. [47973/22]
View answerRecent decades have seen the development of a nationwide infrastructure of venues and arts centres, many of which were initiated and funded by local authorities. These centres also benefit from capital schemes operated by my Department. Annual support provided to these arts centres by local authorities and the Arts Council is critical to ensuring that a stable and vibrant network can be maintained. The Arts Council and County and City Management Association (CCMA) have a joint ten year agreement which is strongly focused on continued investment.
Capital schemes including the Arts and Culture Capital Scheme 2016-2018 and the Cultural Capital Scheme 2019-2022 provides capital grants for not-for-profit arts and culture organisations and are administered by my Department. The schemes focus on enhancing the existing stock of arts and culture centres throughout the country.
I will be shortly announcing details of a further Stream of capital funding for these not-for-profit arts and culture centres. The focus will be on reducing an organisation’s carbon footprint and also providing additional capacity for artists in terms of artists' workspaces, for artistic production, or other capital projects that are deemed necessary including health & safety projects, universal access etc. The full details of this new Stream of capital funding will be available on my Department’s page of the gov.ie website when it is launched.
259. Deputy Chris Andrews asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if her Department will continue to support a tournament (details supplied) on an annual basis. [48047/22]
View answerSport Ireland, which is funded by my Department, is the statutory body with responsibility for the development of sport, increasing participation at all levels and raising standards along with its allocation of funding.
As funding for the event mentioned by the Deputy was administered by Sport Ireland I have referred the Deputy's question to Sport Ireland for direct reply. I would ask the Deputy to inform my office if a reply is not received within 10 days.
260. Deputy Sorca Clarke asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she has met formally with a person (details supplied) to date in 2022. [48240/22]
View answerI can confirm to the Deputy that I have not had any formal meetings with the person specified to date in 2022.
