Written Answers Nos. 254-273
254. Deputy Mark Ward asked the Minister for Transport if he will provide an update on the scheduled work at Kishogue train station; when work is expected to commence; when work is expected to finish; and if he will make a statement on the matter. [51911/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and oversight of public transport infrastructure in the Greater Dublin Area including, in conjunction with Iarnród Éireann, the re-commissioning works at Kishogue Station.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed reply on the specific issue raised. Please contact my private office if you do not receive a reply within 10 days.
255. Deputy Peadar Tóibín asked the Minister for Transport if his attention has been drawn to the fact that it is taking a minimum of 19 weeks in County Meath to get an invitation to book a driving test (details supplied); if he has plans to resolve this issue; and if he will fill any and all vacancies in the section given that the delays are due to a staff shortage. [51926/22]
View answerAs the Deputy may be aware, due to the suspension of driver testing services in the first 2020 lockdown, along with associated health protocols when the service resumed and further curtailing of services during subsequent restrictions, a significant backlog developed. Following the easing of public health restrictions, considerable progress was made in addressing this backlog, with waiting times being reduced significantly.
However, there has been an increase in application volumes and learners becoming eligible to take their test since the start of the year as the economy once again reopened post-pandemic and many learners who availed of increased capacity in the Driver Theory Test are now becoming eligible. While there has been some growth in demand over the summer months and accompanying seasonal capacity constraints, the Road Safety Authority (RSA) is confident that current delays within the system will rectify before year end.
In early 2022, the RSA conducted a review of the current and evolving needs of the driver tester service. As a consequence, the number of permanent driver testers employed by the RSA was recommended to be raised from 100 to 130. My Department approved this request and following the recruitment process it is expected that additional testers will commence work by year end.
As the operation of the national driving test service is the statutory responsibility of the RSA information on the driving test waiting times in the County Meath area is held by the Authority. I have therefore referred this part of the question to the RSA for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
256. Deputy Eoin Ó Broin asked the Minister for Transport the breakdown of the amount of funding that was provided to each airport for the years 2015 to 2021 and to date in 2022. [51960/22]
View answerIn response to the Deputy's question, I can advise of the following Exchequer supports provided by my Department to Irish airports during the period 2015-2021 and to date in 2022:
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
Total |
|
|
Shannon |
- |
- |
- |
- |
- |
€303,513 |
€22,438,587 |
€5,480,750 |
€28,222,850 |
|
Cork |
- |
- |
- |
- |
- |
- |
€25,068,769 |
€5,462,385 |
€30,531,154 |
|
Dublin |
- |
- |
- |
- |
- |
- |
€97,240,000 |
- |
€97,240,000 |
|
IWAK |
€1,162,971 |
€2,933,419 |
€3,199,355 |
€4,176,106 |
€9,482,903 |
€2,236,894 |
€5,997,098 |
€4,760,485 |
€33,949,231 |
|
Donegal |
€625,054 |
€807,909 |
€667,874 |
€896,043 |
€1,512,858 |
€826,105 |
€1,451,683 |
€722,169 |
€7,509,695 |
|
Kerry |
€714,043 |
€937,557 |
€1,657,991 |
€2,385,694 |
€3,196,287 |
€2,655,506 |
€5,881,963 |
€1,084,482 |
€18,513,523 |
|
Waterford |
€1,915,155 |
€1,038,596 |
- |
€750,000 |
€375,000 |
€375,000 |
- |
- |
€4,453,751 |
|
Total |
€4,417,223 |
€5,717,481 |
€5,525,220 |
€8,207,843 |
€14,567,048 |
€6,397,018 |
€158,078,100 |
€17,510,271 |
€220,420,204 |
In relation to 2022 figures provided above, these amounts relate to the amounts of capital funding that I have allocated to the eligible airports under the Regional Airports Programme in 2022 to date. This funding is to be drawn down by airports by the end of the year.
A further €22 million in operational support is also available in 2022 under the Programme, to support air traffic control, fire services and security related non-economic operations at Shannon, Cork, Donegal, Ireland West and Kerry airports. My Department is currently assessing operational funding applications from these airports with a view to this funding being dispersed in early December.
Waterford Airport is not eligible for funding in 2022. While the airport had been eligible for funding under the Regional Airports Programme in the past, following a continued decline in demand for services over successive years from 2008, Waterford Airport became ineligible for funding when all remaining scheduled flights ceased at the airport in June 2016. In the absence of scheduled passenger flights, Waterford Airport’s operations fail to meet the connectivity objective associated with Government policy on regional airports and the new Regional Airports Programme (2021-2025).
257. Deputy Paul McAuliffe asked the Minister for Transport if he has considered the consequences for persons who have already purchased an annual bus ticket in relation to the latest extension of the reduction of public transport fees; and if he will make a statement on the matter. [51979/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
Therefore, in light of the Authority's responsibility in this area, I have forwarded the Deputy's question in relation to the consequences for persons who have already purchased an annual bus ticket in relation to the latest extension of the reduction of public transport fees, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
258. Deputy Jim O'Callaghan asked the Minister for Transport in respect of the BusConnects project if the S4 bus route has been approved to go up and down Highfield Road every ten minutes and, if so, if there will be a cycle path; and if he will make a statement on the matter. [52022/22]
View answer259. Deputy Jim O'Callaghan asked the Minister for Transport if there will be bus stops on Highfield Road, Dublin 6 and, if so, the location; and if he will make a statement on the matter. [52023/22]
View answerI propose to take Questions Nos. 258 and 259 together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including BusConnects Dublin.
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.
260. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will clarify the specific laws, policies or exemptions that mean that stipends are untaxed income. [51836/22]
View answer261. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if Innovate for Ireland PhDs will pay income tax, USC or PRSI. [51837/22]
View answer289. Deputy Gary Gannon asked the Minister for Finance if Innovate for Ireland PhD candidates will pay income tax, USC or PRSI. [51694/22]
View answer290. Deputy Gary Gannon asked the Minister for Finance if he will clarify the specific laws, policies or exemptions that mean that stipends are untaxed income. [51697/22]
View answer291. Deputy Rose Conway-Walsh asked the Minister for Finance if he will clarify the specific legislation that allows PhD stipends to be provided as untaxed income; and if he will make a statement on the matter. [51737/22]
View answer292. Deputy Rose Conway-Walsh asked the Minister for Finance if Innovate for Ireland PhDs will pay income tax, USC or PRSI; and if he will make a statement on the matter. [51738/22]
View answer294. Deputy Paul Murphy asked the Minister for Finance the specific laws, policies or exemptions that mean that stipends are untaxed income. [51745/22]
View answer295. Deputy Paul Murphy asked the Minister for Finance if Innovate for Ireland PhDs will pay income tax, USC or PRSI. [51746/22]
View answerI propose to take Questions Nos. 260, 261, 289, 290, 291, 292, 294 and 295 together.
As the Deputies may be aware, income arising from a scholarship held by an individual receiving full-time instruction at a university, college, school or other educational establishment is exempt from income tax, Universal Social Charge (USC) and PRSI where the conditions for the relief in accordance with Section 193 of the Taxes Consolidation Act (TCA) 1997 are met.
I am advised by Revenue that, in order to qualify for the exemption, one of the key requirements is that the individual in receipt of the scholarship income must be in full-time instruction at an educational establishment. In addition, the object of the scholarship must be the promotion of the education of the holder rather than the promotion of research through the holder. For the scholarship exemption to apply, there must be no element of service (directly or indirectly) between the sponsor and the student, and the award must not arise from an office or employment (directly or indirectly) with the sponsor.
Revenue also advises that fellowships are generally regarded as being distinct from a scholarship. Students, for example post-doctoral students, who have a salaried position in order to provide research services are not considered to be under full time instruction. In such cases, the scholarship exemption does not apply, and PAYE must be operated by the payer. Further details in relation to the scholarship exemption can be found on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-26.pdf
Finally, in the case of stipends to participants in the Innovate for Ireland programme, Revenue advises that in order for the exemption from tax, USC and PRSI to apply, it will be necessary for the students to meet the conditions set out in section 193 TCA 1997. Otherwise, the stipends will be taxable in full.
262. Deputy Richard Boyd Barrett asked the Minister for Finance if he will instruct NAMA to urgently pay for the remediation costs of the building defects leading to fire safety and water ingress issues at a location (details supplied); if he will ask NAMA for an explanation as to the reason that it has not done this to date when receivers controlled by NAMA in the neighbouring estate reportedly carried out similar remediation works for defects; if he will investigate whether NAMA have and are currently selling apartments in the complex without informing purchasers of the defects; and if he will make a statement on the matter. [51095/22]
View answerI wish to remind the deputy that NAMA was established as an independent commercial body and as Minister for Finance, I do not have a role in its operations or decisions.
As the deputy will be aware, NAMA does not own property, rather NAMA owns loans relating to property and the properties themselves act as security for the loans. Properties commonly referred to as “NAMA properties” are in fact owned by private entities who are “NAMA debtors”. The management and maintenance of any NAMA-secured property remains the responsibility of the NAMA debtors. Where a receiver is appointed, they take over these duties and act as agent of the NAMA debtors. In relation to Carrickmines Green, John McStay and Jim Luby of McStay Luby, stand appointed as receiver and agent of the original developer.
While I recognise the considerable anxiety that building defects can cause homeowners and the substantial costs that can be associated with rectifying them, neither I, nor NAMA, can force a receiver to take a particular course of action.
Additionally, by virtue of section 10 of the NAMA Act, NAMA is required to obtain the best achievable financial return from its acquired assets. Any strategies employed in relation to the assets were therefore guided by these legal and statutory obligations.
It should be noted that there is current litigation between the receiver and the Owners Management Company (“OMC”) in relation to the development at Carrickmines Green which NAMA understands is due back in court on 24 October.
Given the on-going litigation, NAMA is not in a position to substantively engage in certain issues, which it is understood are the subject of disputed claims in the ongoing pending litigation.
263. Deputy Jim O'Callaghan asked the Minister for Finance the amount of tax that was raised in 2020 and 2021 by the 3% levy on self-employed income above €100,000; and if he will make a statement on the matter. [51100/22]
View answer264. Deputy Jim O'Callaghan asked the Minister for Finance the reason that the 3% levy on income above €100,000 is limited to those who are self-employed; and if he will make a statement on the matter. [51101/22]
View answerI propose to take Questions Nos. 263 and 264 together.
The position is that the amount of Universal Social Charge (USC) liability associated with the 3% surcharge on non-PAYE income in excess €100,000 per annum, can only be ascertained when the relevant tax returns have been filed. Data for 2020 should be available in Q4 of this year, while data for 2021 will only be available next year once the returns for 2021 are received, processed and the relevant figures compiled.
However, I am advised by Revenue that the liability associated with the 3% surcharge on non-PAYE income in excess of €100,000 amounted to €71 million and €65 million in 2019 and 2018, respectively.
The origins of the 3% USC surcharge that applies on non-PAYE income in excess of €100,000 per annum, go back to Budget 2011 and Finance Act 2011 when the USC was first introduced.
Against the background of difficult decisions at the time to address problems associated with the public finances, the 3% USC surcharge was introduced to ensure that the relative position as regards the top marginal tax rates for PAYE income earners (52%) and self-employed income earners (55%) remained unchanged when compared with the position before Budget 2011.
As the Deputy will be aware, the Programme for Government states that the 3% USC surcharge applied to self-employed income is unfair and it contains a commitment that proposals will be considered to ameliorate this over time as resources allow.
However, as the Deputy will appreciate, having regard to current cost of living pressures which impact on low income earners the hardest, it would not be appropriate to seek to address the USC surcharge issue at this time.
It is also important to note that abolishing or reducing the USC surcharge on non-PAYE income would result in a reduction in the overall tax yield, thus potentially raising the question of an alternative revenue stream.
265. Deputy John Lahart asked the Minister for Finance the total spend by his Department and the agencies under his remit on cybersecurity measures since 2019 to date in 2022; and if he will make a statement on the matter. [51172/22]
View answerFor operational and security reasons, the National Cyber Security Centre have provided advice not to disclose details of systems and processes which could in any way compromise those efforts. In particular, it is not considered appropriate to disclose information which might assist criminals to identify potential vulnerabilities in departmental, or bodies under the aegis', cybersecurity arrangements. Therefore, it is not considered appropriate to disclose particular arrangements in place in relation to total spend on cybersecurity measures, cyber security tools and services. Furthermore my Department and those State Agencies under my remit do not comment on operational security matters.
266. Deputy John Lahart asked the Minister for Finance the proportion of his Department’s IT data that is stored in the cloud; the proportion of the data held by all agencies and subsidiaries of his Department in the cloud; if this represents an improvement; if so, the development that has been made towards cloud storage since 2019 to date; and if he will make a statement on the matter. [51196/22]
View answerThe Office of the Government Chief Information Officer (OGCIO) provides ICT services for my Department. The OGCIO produced a Cloud Computing Advice Note in October 2019 which moved the overall debate on the use of cloud from whether to move to cloud, to what, how and when to move to cloud. The focus of my Department and those of the State Agencies under my remit is on using cloud to deliver efficient digital services and where appropriate, use the cloud for the storage of data, in line with Data Protection guidance.
267. Deputy Brendan Griffin asked the Minister for Finance if an anomaly (details supplied) that is preventing self-employed sole trader professionals from claiming expenses for food and so on when out working will be examined; and if he will make a statement on the matter. [51210/22]
View answerFor expenses to be deductible they must be wholly and exclusively laid out or expended for the purposes of the trade or profession. This is in accordance with section 81 of the Taxes Consolidation Act 1997, which sets out the general rules for deductions for the computation of profits or gains arising in respect of trades and professions. I am advised by Revenue that, as a general rule, subsistence expenses such as food are not deductible by sole traders for tax purposes.
Expenditure incurred on food in the course of a trade or profession will generally have a duality of purpose in that the person has the ordinary need to eat. Where expenditure is incurred on food because the taxpayer must eat away from home, that expenditure is not wholly and exclusively laid out or expended for the purposes of the trade or profession and therefore is not an allowable expense.
In the case of employees, in accordance with section 114 of the Taxes Consolidation Act 1997, where an employee is necessarily obliged to incur and defray out of the emoluments of the employment expenses of travelling in the performance of the duties of the employment, or otherwise to expend money wholly, exclusively and necessarily in the performance of those duties, the expenses may be deducted from the emoluments of the employee to be assessed to income tax.
Arising from an employee’s entitlement to a tax deduction under section 114, in respect of certain expenses, there exists a long-standing Revenue practice under which employers may reimburse tax-free to employees the expenses of travel (and subsistence relating to that travel), subject to certain conditions being fulfilled. I am advised by Revenue that the conditions under which the reimbursement to employees of the expenses of travel and subsistence may generally be made without deduction of tax are as follows:
(a) firstly, the employee must be temporarily away from his/her normal place of work in the performance of the duties of his/her employment;
(b) secondly, the travel and subsistence expenses must be necessarily incurred in the performance of the duties of the office or employment, and
(c) thirdly, arising from a long-accepted position, supported by tax case law, the expenses of subsistence must attach to travelling necessarily incurred in the performance of the duties of the office or employment.
Moreover, provided the employee bears the cost of all expenses of travel necessarily incurred in the performance of the duties of his/her employment (and bears the cost of subsistence relating to such travel), Revenue will disregard for income tax purposes the reimbursement of expenses of travel and subsistence, where such reimbursement is made by way of:
(a) a flat rate up to, but not exceeding, the prevailing Civil Service rates for travel and subsistence, or
(b) a flat rate based on any other schedule of rates and related conditions of travel and subsistence, which do no more than reimburse the employee for actual expenditure necessarily incurred.
268. Deputy Sean Sherlock asked the Minister for Finance if his attention has been drawn to recent media reports that the ECB has purchased millions of dollars in bonds issued by companies linked to deforestation of the Amazon Rainforest; and if he will make a statement on the matter. [51232/22]
View answerI wish to advise the Deputy that I am aware of the recent media reports regarding bond purchases made by the ECB.
I am advised that the ECB is also aware of reports concerning corporate bond purchases under the Corporate Sector Purchase Programme (CSPP). The list of corporate bond securities held under the CSPP/PEPP as of October 2022 is available on the ECB website at the location in this link.
www.ecb.europa.eu/mopo/implement/app/html/index.en.html
The ECB further advises that the Eurosystem does not publish a detailed breakdown of its corporate bond holdings by issuer. Such disclosure could compromise the effectiveness of monetary policy and impair the ECB’s ability to pursue its primary objective of price stability. However, the Eurosystem remains committed to being as transparent as possible. It will therefore continue to publish breakdowns by country, rating and industry sector every six months.
www.ecb.europa.eu/mopo/implement/app/html/ecb.cspp_climate_change-faq.en.html
I understand that the Eurosystem aims to gradually decarbonise its corporate bond holdings, on a path aligned with the goals of the Paris Agreement. To that end, the Eurosystem will tilt these holdings towards issuers with better climate performance through the reinvestment of the sizeable redemptions expected over the coming years. The ECB will start disclosing climate-related information on its corporate bond holdings in the first quarter of 2023.
Further information on the above matters is available in the FAQ factsheet available on the ECB website at this link.
www.ecb.europa.eu/mopo/implement/app/html/ecb.cspp_climate_change-faq.en.html
269. Deputy Pearse Doherty asked the Minister for Finance the effective tax rate in the form of dividend withholding tax paid by Irish real estate funds as a proportion of operating and pre-tax profits respectively in each of the years 2018 to 2020; and if he will make a statement on the matter. [51241/22]
View answerThe Irish Real Estate Fund (IREF) tax regime was introduced in Finance Act 2016. An IREF is an investment undertaking, or a sub-fund, which derives 25% or more of its market value (either directly or indirectly) from real estate assets in the State. IREFs are not subject to dividend withholding tax, they are subject to an IREF Withholding Tax (WHT) of 20% on distributions to non-resident investors. The legislative provisions exempt certain categories of non-resident investors such as pension funds, life assurance companies and other collective investment undertakings from having IREF withholding tax applied in circumstances where the appropriate declarations are in place.
Irish resident investors are generally subject to a separate investment undertaking tax, at a rate of 41% for individuals and 25% for companies, on distributions received from the fund.
In addition to a 20% IREF WHT on distributions, the Finance Act 2019 introduced a charge to income tax at the rate of 20% at the level of the IREF to counter the use of excessive debt and other payments to reduce distributable profits. The three anti-avoidance measures introduced in 2019 included (i) a debt cap, to limit excessive leveraging and resulting interest, (ii) a property financing cost ratio, to limit excessive interest rates, and (iii) a “wholly and exclusively” test to limit excessive expenses.
IREF WHT applies on the happening of an “IREF taxable event” which is essentially the passing of value or profits to the unitholder. The operating and pre-tax profits of an IREF will include both realised and unrealised amounts (such as increases in the value of property held by the IREF). Therefore, it is not meaningful to compare the amount of tax arising on the transfer of profits to investors with the accounting profits of an IREF. Where profits remain in the fund, either because they are gains that are recorded in the accounts but not yet realised or because they are being reinvested in Irish property, a charge to IREF WHT does not apply.
Notwithstanding the above limitations, I have set out for the Deputy the operating and pre-tax profits* on the financial statements respectively in each of the years 2018 to 2020 in Table 1. In 2020, IREFs reported an operating loss of approximately €440 million and Revenue is in the process of establishing the nature of these losses.
Table 1 – IREF Operating Profit and Profit Before Tax Figures* as per IREF Financial Statements
|
- |
2018€ |
2019€ |
2020**€ |
|
Operating Profit (Loss) |
867,739,813 |
1,159,450,861 |
(440,534,785) |
|
Profit/(Loss) Before Tax |
498,299,253 |
724,795,840 |
(636,974,897) |
|
IREF WHT Deducted/Paid |
28,229,097 |
65,759,048 |
36,789,897 |
|
Income Tax Paid |
N/A |
6,283,824 |
17,023,498 |
|
Total Tax Paid |
28,299,097 |
72,042,872 |
53,813,396 |
*I am advised by Revenue that the profit amounts set out in Table 1 are provided for indicative purposes only and are subject to caveats. For example, there can be inconsistencies in how the figures are reported and in some cases the figures have been netted. There can also be inconsistency in the length of the financial periods, with some in excess of 12 months. This was evident last year where a number of IREFs sought derogations from the Central Bank of Ireland to prepare 18-month set of accounts for 2020 due to the impact caused by the Covid-19 pandemic.
**This data is derived from the Financial Statements submitted to Revenue. The data for 2020 has not yet been verified by Revenue.
270. Deputy Mairéad Farrell asked the Minister for Finance the names of all special advisors working in his Department; the Minister and Junior Minister who each advisor is associated with and their respective salaries, in tabular form; and if he will make a statement on the matter. [51255/22]
View answerI wish to inform the Deputy that the information for special advisor’s, for the Minister and Minister of State, for the Department of Finance, are as per below;
|
Name |
Minister |
Salary Grade |
Salary Scale |
|
Ms. Fiona O'Connor |
Minister Donohoe |
Principal Officer Standard PPC |
€95,301 - €110,811 |
|
Ms. Deborah Sweeney (temporarily on leave) |
Minister Donohoe |
Principal Officer Standard PPC |
€95,301 - €110,811 |
|
Mr. Aidan Murphy (temporary, acting capacity) |
Minister Donohoe |
Principal Officer Standard PPC |
€95,301 - €110,811 |
|
Mr. Aidan O'Connor |
Minister Fleming |
Assistant Principal Officer Standard PPC |
€73,236 - €85,730 |
271. Deputy Eoin Ó Broin asked the Minister for Finance the annual corporate tax, and other named taxes, paid by the revenues generated by aircraft leasing firms based here in each of the years between 2014 and 2022, in tabular form;; and if he will make a statement on the matter. [51305/22]
View answerI am advised by Revenue that information in respect of the years 2019 to 2021 is available on the Revenue website at: www.revenue.ie/en/corporate/documents/research/ct-analysis-2022.pdf
The information is contained in Table 17, and 2021 is the latest year for which data are available.
The information for the years 2014 to 2018 is shown in the table below.
|
Year |
Corporation Tax €m |
Employment Taxes €m |
VAT €m |
|
2014 |
23 |
89 |
-15 |
|
2015 |
34 |
122 |
-26 |
|
2016 |
61 |
138 |
-19 |
|
2017 |
40 |
211 |
-24 |
|
2018 |
54 |
248 |
-32 |
Ireland is the leading centre for aircraft leasing globally - the industry reports that over 60% of the world’s leased aircraft are managed from Ireland. This industry forms part of our rich eco-system of high calibre indigenous businesses and multinational corporations, which is a key driver of economic growth and allows Ireland to compete in a globalised world.
272. Deputy Pearse Doherty asked the Minister for Finance the assessment his Department has made of the planned payment of three €200 electricity credits to multiple homeowners in their distributional analysis of Budget 2023; and if he will make a statement on the matter. [51313/22]
View answerThe distributional analysis published by my Department shows that the overall impact of the budgetary measures is strongly progressive. The analysis provides a breakdown of the measures included in the October to December Cost of Living (CoL) package, i.e. measures impacting incomes in 2022, and of the Budget 2023 package, i.e. measures impacting incomes in 2023.
Overall, household disposable income increases by 3 per cent due to the Budget 2023 package and by 1.6 per cent due to the CoL package. The impact of the measures is shown in nominal terms, i.e. not adjusted for projected inflation in 2023.
Focusing on the electricity credit, the analysis takes account of two electricity credits as part of the Budget 2023 package and one credit as part of the CoL package. The disposable income of households is estimated to increase by 0.7 per cent in 2023 and by 0.4 per cent in 2022 due to the electricity credit.
The lowest income deciles see the highest proportional gains in their disposable income. On average, income deciles 1 to 4 see gains of 1.5 per cent in 2023 and 0.7 per cent in 2022 due to the credit.
Single retired and lone parents experience the highest gains in their disposable income, with single working-age adults with no children and couples with at least one retired person experiencing the next highest gains due to the credit.
Overall, the analysis shows the effectiveness of the Government’s approach in protecting the most vulnerable households from the recent rise in energy prices.
273. Deputy Bernard J. Durkan asked the Minister for Finance if he will provide an update in the case of a person (details supplied); the extent to which the perceived benefit is payable, taxable or otherwise; and if he will make a statement on the matter. [51316/22]
View answerI am advised by Revenue that the benefits concerned in this case relate to Personal Retirement Savings Accounts (PRSA) funds. In general, where an individual dies before benefits are taken, any PRSA funds will pass to the estate of the deceased with no Income Tax liability arising. Details on the treatment to apply are provided in Revenue’s Tax and Duty Manual on PRSA’s, which is published on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-24.pdf
Revenue have reviewed all of the records in this case. They have confirmed that they have identified an error in the submission made to them by the pension provider. They will contact the pension provider to correct the record immediately, ensuring the correct treatment, as set out in their published guidance, is applied.
Revenue have also confirmed that as the estate was transferred to the spouse in this case that there is no Capital Acquisitions Tax (CAT) liability, as any gifts/inheritances between spouses/civil partners are exempt from CAT. Further information relating to the receipt of gifts and inheritances, including the various tax exemptions, can be found on Revenue’s website at www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx
