Written Answers Nos. 244-262
244. Deputy Ivana Bacik asked the Minister for Transport if he will clarify whether it is Government policy to commit to the proposed replacement of the Green Line Luas as the future southern extension of MetroLink, or whether multiple options remain open for the future development of public transport rail infrastructure servicing the south Dublin area. [55612/22]
View answerThe MetroLink route approved by Cabinet on 4 July runs from Estuary, North of Swords, to Charlemont in the City Centre. This does not include upgrading the existing Luas Green Line to a metro system. During the public consultation, a concern arose about the need to close the Green Line for a prolonged period during an upgrade. Acknowledging these concerns, an alternative approach has been developed that allows the current route of MetroLink to be built now and allows also for a possible future extension from the southern terminus of Charlemont, including an upgrade of the Green Line to metro standard.
There were a number of studies and reports that informed the development of Dublin's integrated transport system, as set out in the draft Greater Dublin Area (GDA) Transport Strategy 2022-2042, including feasibility studies for Metro to Knocklyon and Metro UCD to Sandyford. While the draft strategy states that the south Dublin area is best served by bus rapid transit (such as BusConnects) and light rail (such as Luas) for the foreseeable future, it notes that the MetroLink terminus at Charlemont can facilitate any potential future metro extensions to serve the south west, south or south east of the Dublin area should sufficient demand develop. The draft transport strategy proposes a Luas Green Line upgrade project after 2042 to deliver significant additional capacity as required.
The NTA reviews and updates the GDA Transport Strategy every 6 years and so the issue of a southern extension of MetroLink may be reconsidered in future.
245. Deputy Brendan Griffin asked the Minister for Transport if funding will be provided for traffic-calming and safety measures at a very dangerous junction (details supplied) in County Kerry; and if he will make a statement on the matter. [55613/22]
View answerAs Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and upgrade of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the junction at Loo Bridge on the N22.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
246. Deputy Robert Troy asked the Minister for Finance the position of GP and dental surgeries with regard to the temporary business energy support scheme. [55639/22]
View answerDetails of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023. The TBESS will be available to tax compliant businesses carrying on a trade or profession, the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria. The scheme will be operated on a self-assessment basis.
GP and dental surgeries will be eligible for payments under the TBESS in the same way as any other business carrying on a trade or profession that is taxable under Case I or Case II of Schedule D where they meet all eligibility criteria. Persons, including individuals, partnerships and companies operating GP and dental surgeries, which have suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period, as compared with the average unit price for electricity and/or gas for the corresponding reference period, will be eligible under the scheme.
Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount, which is the subject of the claim, and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade or profession.
While the monthly cap of €10,000 applies on a per trade basis or a per profession basis, where a business carries on its trade or profession from more than one location, as identified by the business having multiple electricity accounts/ MPRNs in different locations, the cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade. The increased cap is available in relation to both electricity and natural gas costs relating to the trade or profession. An overall cap on the amount of support that a business can claim will also apply in line with requirements of the European Commission’s Temporary Crisis Framework.
If any amount charged on an energy bill for a claim period is not expended wholly and exclusively for the purpose of the GP or dental surgery, then this amount must be deducted from the relevant energy bill amount for the claim period for the purpose of calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the GP or dental surgery and a domestic dwelling.
Claims must be made through the Revenue Online Service (ROS). It is expected that the TBESS system will go live over the weekend of 26th to 27th November, enabling businesses to register for and claim under the scheme.
Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website (Revenue.ie>Starting and running a business>Temporary Business Energy Support Scheme>Temporary Business Energy Support Scheme guidelines).
247. Deputy Patricia Ryan asked the Minister for Finance the current status of the Disabled Drivers' Medical Board of Appeal; if a new Board has been appointed; when outstanding appeals will be heard; and if he will make a statement on the matter. [54191/22]
View answerThe Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials provide support to the Department of Health in this matter.
The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. From these, three suitable candidates have been identified and are being Garda vetted. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates have been interviewed and are being assessed.
Once these processes have been completed for all candidates, I, in my role as Minister for Finance, will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
Applicants deemed not to have met one of the six eligibility criteria required for a PMC can request another PMC assessment six months after an unsuccessful PMC assessment.
248. Deputy Catherine Murphy asked the Minister for Finance if his Department and all bodies under his Department’s aegis have reviewed their estates' portfolio in the context of identifying unoccupied buildings that may be suitable for use in the context of meeting the accommodation needs of persons arriving in Ireland from Ukraine. [54216/22]
View answer249. Deputy Catherine Murphy asked the Minister for Finance the number and type of unused and or unoccupied buildings in his Department’s estates’ portfolio and all bodies under his Department’s aegis. [54234/22]
View answerI propose to take Questions Nos. 248 and 249 together.
I wish to advise the Deputy that occupied premises under my Department's remit are leased through the Office of Public Works, and therefore are not owned by my Department.
I can assure the Deputy that there are no properties vacant under my Department’s remit, this includes shared accommodations with other Government Departments. All properties are currently in use and occupied by officers employed by the Department of Finance.
The properties outlined below are occupied by my Department and are in use:
- Government Buildings, Merrion Street, Dublin 2
- 14-16 Merrion Street, Dublin 2
- 1st Floor, Miesian Plaza, Baggot Street, Dublin 2.
As the deputy will be aware, the National Asset Management Agency (NAMA) does not generally own properties, rather NAMA acquired loans for which the properties act as security. Secured properties remain in the ownership and control of their registered owners, or appointed receivers in the event of enforcement. I am advised that NAMA reviews its portfolio on an ongoing basis and monitors vacancy levels in order to assess properties for potential social housing purposes.
During 2022, NAMA reviewed its secured portfolio for properties that may be suitable for use for the Government’s requirements for accommodating people arriving in Ireland from Ukraine. Due to the dynamic nature of its reducing secured portfolio, including properties being prepared for sale, contracted for sale or currently occupied/let, NAMA did not identify any suitable, vacant residential accommodation.
While NAMA does not own residential properties, it ensures that its debtors and receivers keep vacant periods in residential properties to a minimum. I am advised that close to 100% of all secured residential units are occupied, with only 4 vacant and habitable units currently within NAMA’s secured portfolio, and with all 4 currently in the process of being sold. This figure is at a point in time and reflects some of the frictional short term vacancy typical in a functioning property portfolio.
The remaining bodies under the aegis of my Department have advised that they do not have unused or unoccupied buildings which may be suitable for use in the context of meeting the accommodation needs of persons arriving in Ireland from the Ukraine.
250. Deputy David Cullinane asked the Minister for Finance his views on a matter raised in correspondence (details supplied) regarding apartments held by NAMA in need of remediation; if he will seek an explanation from NAMA; and if he will make a statement on the matter. [54258/22]
View answerThe Deputy will be aware that NAMA was established as an independent commercial body and I, as Minister for Finance, do not have a role in its operations or decisions. I am advised that the development at Carrickmines Green is not owned or controlled by NAMA. The development is a private residential development consisting of a number of apartment blocks and houses. Each apartment owner owns their own individual unit and the various residential units are owner occupied or rented. I am advised that NAMA owns certain loans which are secured by a small number of individual apartments in the development. These units are under the control of a receiver (McStay Luby) who acts as agent of the original developer and is responsible for the management and maintenance of the properties over which they are appointed.
Neither NAMA nor I, as Minister, can direct a receiver to act counter to their statutory and fiduciary obligations. 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. Directing NAMA or the receiver to act counter to these obligations is not one open to me in the current circumstances. However, I am advised that the receiver, in his capacity as agent of the developer and without any legal obligation or requirement to do so, has carried out very substantial remediation works to the development, funded by NAMA, certification of which has been provided to the local authority.
It should be noted that there is extant litigation between the receiver and the Owners Management Company (“OMC”) in relation to the development at Carrickmines Green, which I am advised is expected to be back in court imminently. NAMA is not a party to the litigation and it is not appropriate for NAMA nor I, as Minister, to interfere with an ongoing legal case. Furthermore, 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.
251. Deputy Emer Higgins asked the Minister for Finance if he will provide an update on his Department's retail banking review; the outstanding work to be completed in respect of this; the timeline for when it will be completed and published; and if he will make a statement on the matter. [54277/22]
View answerOn 23 November last, I published the Terms of Reference for a broad-ranging review of the retail banking sector in Ireland. The Review is being conducted by officials in my Department with assistance from other Government agencies and Departments. At the time of publishing the Terms of Reference, it was confirmed that the Review team would report to me in November 2022.
As part of the Review, stakeholders, including members of the public, were invited to make submissions to the Department on issues that fall within the Terms of Reference. These submissions were by way of a public consultation which was launched at the Retail Banking Review dialogue in Tullamore on 16th May. The dialogue was attended by over 100 delegates representing a wide range of organisations, including the retail banks, non-banks, fintech, trade unions, government agencies and departments, the Central Bank, Credit Unions, An Post, the legal and accountancy professions, and the community and voluntary sector. This dialogue provided delegates with a forum to participate in an open and inclusive exchange again on the Terms of Reference. The public consultation process, which concluded on 8 July, received 102 responses.
Another important component of the Review was the consumer-focused survey of a representative sample of 1,500 consumers which was completed by Behaviour and Attitudes on behalf of the Department. The purpose of this survey was to ascertain consumers’ experience and perceptions of the banking sector in Ireland. The consumer survey report was published on 16 May 2022.
The Department also commissioned a comparison of international markets, through a competitive tender process. The international comparison was completed by Deloitte which included the collection of data for seven markets with similar characteristics to Ireland.
Currently the Review team are well advanced in drafting their report, which includes consideration of the information received through the various forms of engagement outlined above, and is in line to report to me later this month as scheduled. On receipt of the report, I will take the recommendations arising from the review to Government for approval after which the report will be published.
252. Deputy Brendan Griffin asked the Minister for Finance when the temporary business energy support scheme will open for applications; and if he will make a statement on the matter. [54299/22]
View answer253. Deputy Paul Murphy asked the Minister for Finance the estimated number of data centres that will benefit from the temporary business energy support scheme; and if they will be included in the reported potential extension of the scheme past February 2023 (details supplied); and if he will make a statement on the matter. [54093/22]
View answer266. Deputy Rose Conway-Walsh asked the Minister for Finance further to Parliamentary Question No. 241 of 25 October 2022, if multinational corporations, including those with global revenue above €750 million, will be eligible for the maximum €10,000 energy grant; if multiple subsidiaries of the same company can each make applications for the energy grant up to the maximum of €10,000; and if he will make a statement on the matter. [54512/22]
View answer276. Deputy Fergus O'Dowd asked the Minister for Finance his views on concerns raised from a local business (details supplied) in respect of concerns on the 40% cap on the proposed TBESS; and if he will make a statement on the matter. [54763/22]
View answer280. Deputy Kathleen Funchion asked the Minister for Finance if his attention has been drawn to concerns raised by butchery businesses that rely heavily on refrigeration to operate their companies, in order to comply with the highest standards of food safety and hygiene, food production, processing, manufacturing and packaging, which all require a large amount of electricity; the steps that his Department has taken to ensure that more butchery businesses are not forced to close due to already high energy costs; and if he will make a statement on the matter. [54896/22]
View answerI propose to take Questions Nos. 252, 253, 266, 276 and 280 together.
Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of electricity and natural gas costs relating to the period from 1 September 2022 to 28 February 2023. The scheme is designed to be compliant with the EU state aid Temporary Crisis Framework and will need to be approved by the EU Commission in advance of making payments.
To qualify under the TBESS, a business must be tax compliant and carry on a trade or profession the profits of which are chargeable to tax under Case I or II of Schedule D. The business must also be able to demonstrate that the average unit price for electricity or natural gas on a relevant bill has increased by 50% or more as compared to the average unit price in a reference period. Where this threshold is passed, and certain other criteria are met, the business, regardless of its size, will be able to claim a Temporary Business Energy Payment amounting to 40% of its eligible cost, subject to a cap for each monthly claim period.
The eligible cost amount is calculated as the increase in an electricity or natural gas bill as compared to a bill amount in an applicable reference period.
In general, a monthly cap of €10,000 per trade or profession applies, however, this may be increased where the trade or profession is carried on across multiple locations, as identified by the business having multiple electricity accounts/ MPRNs in different locations. The cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade or profession. The increased cap is available in relation to both electricity and natural gas costs relating to the trade or profession. An overall cap on the amount of support that a business can claim will also apply in line with requirements of the European Commission’s Temporary Crisis Framework.
Where separate trades are carried on by companies within a group and the eligibility criteria are met by each of them, the group companies will each be able to make a claim under the scheme, subject to the monthly cap referred to above, and subject to the overall limits provided by the Temporary Crisis Framework.
With the exception of credit institutions and financial institutions, which are specifically excluded from obtaining aid under the Temporary Crisis Framework, the scheme is open to all sectors irrespective of company size.
The number of data centres in Ireland is not an issue that comes under my aegis as Minister for Finance. I understand from information obtained from the electricity networks that they have connection agreements for approximately 40 data centres but there could be a number of data halls behind each connection point. However, as I have said before, larger businesses who have the purchasing power to enter into favourable forward pricing arrangements and have not seen an increase of 50% over 2021 prices, will not be eligible for support under the scheme
Claims must be made through the Revenue Online Service (ROS) within 4 months of the end of the relevant claim period to which the relevant electricity or natural gas bill relates.
Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website (Revenue.ie>Starting and running a business>Temporary Business Energy Support Scheme>Temporary Business Energy Support Scheme guidelines).
254. Deputy Brendan Griffin asked the Minister for Finance if his attention has been drawn to the insurance difficulties facing activity and adventure providers; the measures that his Department is taking to address these challenges; if there is an overall trend, upward or downward, for premiums in this sector; and if he will make a statement on the matter. [54319/22]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, as this is a commercial matter. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
Notwithstanding this, Government is acutely aware of the concerns felt by many sectors, including the one highlighted by the Deputy, regarding the cost and availability of insurance, and has therefore prioritised insurance reform. In this regard, the Action Plan for Insurance Reform sets out 66 actions which aim to bring down costs for consumers and business; encourage market competition; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations. Eighty per cent of the actions contained therein are now being delivered, and work is continuing across several Government departments to implement the remaining key reforms. Of particular relevance to the adventure activity sector is the upcoming reform to the Duty of Care legislation, which is being led by the Department of Justice. This is expected to address issues of “slips, trips and falls” so prevalent in high-footfall and public-facing activities.
We can already see that the insurance market is responding to the success of the Government reform agenda, with insurers now willing to write business in areas that they had previously avoided. Certain recreational sectors, such as equestrian activities and bouncy castles, can now access insurance through the recent formation of group schemes. Minister Fleming, in his capacity as chair of the Office to Promote Competition in the Insurance Market, continues to engage with the insurance sector to understand market gaps, and has impressed upon insurance providers the Government’s expectation that any savings achieved as a result of the reform agenda will be passed onto consumers in the form of reduced premiums.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
255. Deputy Ivana Bacik asked the Minister for Finance the number of persons, expressed as a percentage of the total workforce, who were in the highest income tax bracket in Ireland in each of the years 2012 to 2021 and to date in 2022; and if he will make a statement on the matter. [54337/22]
View answerI am advised by Revenue that the numbers of taxpayers units in each tax band, including those who are exempt from paying income tax, for the years 2005 to 2018 inclusive are published on Revenue’s website at the following link:
www.revenue.ie/en/corporate/documents/statistics/income-distributors/income-earners-tax.pdf
It should be noted that 2018 is the latest year for which this tax data has been compiled based on tax returns filed for that year. It is expected that data for 2019 and 2020 will be available at the same online location before year-end. Furthermore, as tax returns for 2021 are not due to be filed until quarter 4 of this year, a breakdown of taxpayer units by tax band will not be available until mid-2023, after the data has been processed and compiled. Also, it should be noted that tax returns for 2022 are not due to be filed until quarter 4 2023.
For the Deputy’s convenience the tables below set out the distribution of taxpayer units in nominal and percentage terms across the various tax bands for the years to 2012 to 2018 inclusive.
Table 1 - Nominal distribution of taxpayer units
|
Tax Year |
2018 |
2017 |
2016 |
2015 |
2014 |
2013 |
2012 |
|
Exempt |
887,072 |
882,745 |
875,436 |
893,665 |
857,394 |
838,164 |
843,053 |
|
Marginal Relief |
28,447 |
28,390 |
27,854 |
20,688 |
24,796 |
24,110 |
38,208 |
|
Standard Rate |
1,106,568 |
1,063,048 |
1,038,837 |
983,057 |
937,419 |
901,314 |
853,755 |
|
Higher Rate |
516,744 |
487,873 |
462,646 |
404,388 |
404,439 |
383,260 |
372,192 |
|
Total |
2,538,831 |
2,462,056 |
2,404,773 |
2,301,798 |
2,224,048 |
2,146,848 |
2,107,208 |
Table 2 - Percentage distribution of taxpayer units
|
Tax Year |
2018 |
2017 |
2016 |
2015 |
2014 |
2013 |
2012 |
|
Exempt |
34.9% |
35.9% |
36.4% |
38.8% |
38.6% |
39.0% |
40.0% |
|
Marginal Relief |
1.1% |
1.2% |
1.2% |
0.9% |
1.1% |
1.1% |
1.8% |
|
Standard Rate |
43.6% |
43.2% |
43.2% |
42.7% |
42.1% |
42.0% |
40.5% |
|
Higher Rate |
20.4% |
19.8% |
19.2% |
17.6% |
18.2% |
17.9% |
17.7% |
|
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
It is important to point out that the allocation of taxpayer units into tax bands is based on the highest rate of income tax paid by the taxpayer unit, following the offset of their tax credits against their tax liability in priority of their highest rate of income tax. Therefore, the figures at the higher rate of income tax includes those taxpayer units whose higher rate liability is not fully offset by their credits.
Finally, it should be noted that the figures contained in the tables above represent the total number of income earners, which is the information available to Revenue, rather than the total workforce.
256. Deputy Ged Nash asked the Minister for Finance the incentives, if any, that will be provided to companies and workers who require company vehicles, to move to EVs, especially in view of the impact of changes to the BIK regime on such workers; and if he will make a statement on the matter. [54338/22]
View answerRecent Government policy has focused on strengthening the environmental rationale behind company car taxation. 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%. In terms of impacts, broadly speaking this means that higher emission vehicles will experience BIK increases versus the 2022 year of assessment, while lower emission vehicles will experience a lower BIK liability depending on mileage levels. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
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 favourable treatment for low emission vehicles in this new structure, there is currently also a BIK exemption for BEVs with an OMV up to €50,000. The current BIK exemption will continue to apply to 31 December 2022 as currently provided for in the legislation. From 2023, the original market value (OMV) reduction for BIK purposes is progressively phased out until end 2025. This extension is in support of Government policy to incentivise the transition to electric vehicles. The relief serves to reduce the OMV of the vehicle, for the purposes of determining the taxable cash equivalent, by €35,000 in 2023, €20,000 in 2024 and €10,000 in 2025.
This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including
- Vehicle Registration Tax relief of up to €5,000 for battery electric vehicles (BEVs). From January 2021, this relief is no longer available for BEVs with an Open market Selling Price of more than €50,000. This cap was introduced as a value for money consideration to ensure the reliefs remains targeted.
- Home Charger Grant - Up to €600 towards the installation cost of a domestic charge point for new and second-hand BEVs or PHEVs.
- Low Motor Tax - BEVs qualify for the lowest tax band of motor tax at €120 per annum, while a plug-in hybrid vehicle (PHEV) is typically taxed at circa €170 per annum.
- BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles
- A grant of up to €10,000 to support the purchase of a BEV in the taxi/hackney/limousine sector with an additional €2,500 available for those choosing to make their vehicle wheelchair accessible.
- Those scrapping older, more polluting, or high mileage vehicles are now eligible for double the normal grant if they make the switch to electric with up to €20K available for a new BEV, €25K for a new wheelchair accessible BEV and €15K for a new wheelchair accessible PHEV.
- Alternatively Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme - grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent.
In summary, I am satisfied that the Government has provided a broad suite of supports for the uptake of EVs.
257. Deputy Mattie McGrath asked the Minister for Finance the number of drug seizures which were seized on entry into Ireland in 2022; the location of such seizures; if he is concerned regarding the level of drugs entering the country; the efforts that are being taken to clamp down on drugs entering the country; and if he will make a statement on the matter. [54366/22]
View answerRevenue has primary responsibility for the prevention, detection, interception and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State. I am advised by Revenue that its drugs interdiction strategy supports the Government’s strategic approach to the misuse of drugs under the National Drugs Strategy 2017–2025. This Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities right across the country. Combatting not just the importation of illicit drugs but also firearms, ammunition and cash that are closely aligned with the activities of organised crime gangs and drugs importations is a priority.
Details of drugs seized on entry into Ireland from 1 January to 30 September 2022, inclusive, are set out below in tabular form:
|
Drug Type |
Weight (Kgs) |
Value of Drugs Seized (€) |
|
Cannabis (Herbal and Resin) |
1,191 |
21,232,076 |
|
Cocaine |
115 |
8,045,439 |
|
Heroin |
9 |
1,274,243 |
|
Amphetamines, Ecstasy and Other |
1,267 |
3,516,249 |
|
Total |
2,582 |
34,068,007 |
The drug seizures outlined above were detected at key points of entry into the State, including ports, airports, postal and parcel courier hubs. I am advised by Revenue that it deploys enforcement personnel on a risk assessment basis at airports, ports and mail hubs/postal depots where goods enter the State.
I am aware that as part of its risk-based approach in this area of its activities, Revenue monitors and evaluates harbours and inlets along the coastline to identify the risk potential for drug smuggling. Revenue utilises the latest detection methods at the points of entry into the State, with the deployment of assets such as the Revenue scanners, drug detector dogs and 24/7 staff, where required, at frontier posts. Revenue’s Customs Drug Watch Programme supplements work in this area and is aimed at encouraging members of the public, along with coastal and local maritime communities to notify Revenue of suspect or unusual activity around the coast by way of a confidential 24/7 free phone facility 1800 295 295.
At a national level Revenue works closely with An Garda Síochána in addressing the challenges and risks associated with drugs smuggling, together with the Health Products Regulatory Authority in acting against the illegal drugs trade. Revenue’s work against drug crime is extensive and multi-faceted and is kept under continuous review to ensure that it makes the most effective contribution possible to deal with this societal problem.
Given the global nature of the illicit drugs trade, international law enforcement cooperation remains a key element in Revenue’s overall response. Revenue has strong and strategic partnerships in place at international level, targeting drugs trafficking, including working closely with relevant law enforcement agencies such as Europol and the Maritime Analysis Operations Centre for Narcotics (MAOC-N). Revenue liaison officers are stationed in both Europol and MAOC-N, ensuring Revenue is at the forefront in the area of drugs enforcement at an international level. These officers work closely with international colleagues in identifying the transnational risks associated with drug smuggling into the State.
Revenue actively engages with its European partners under Europol’s EMPACT programme. This programme has identified a range of significant threats to the EU including the trafficking of illicit drugs. Revenue participates with other Member States in planning and undertaking action to counteract the activities of those involved in international drug smuggling, specifically in the areas of cannabis, cocaine and heroin, as well as any emerging psychoactive substances.
There is also ongoing cooperation between Revenue, An Garda Síochána, the PSNI and HMRC in tackling serious crime, including drug trafficking and the supply of illicit drugs under the cross-border Joint Agency Task Force (JATF). The JATF was established under the 2015 Fresh Start Agreement to bring a concerted and enhanced effort to tackle cross-jurisdictional organised crime. The Task Force is led by senior officers from An Garda Síochána, Revenue, the PSNI and HMRC, with involvement from the Criminal Assets Bureau and the National Crime Agency, as needed, in operational activity.
Finally, I think it is important to recognise that the challenge of combatting drugs importations must be seen and understood in an international context having regard in particular to scale and scope of the international movement of people, vehicles and freight and the transnational nature of organised crime. I acknowledge the critical work of Revenue and An Garda Síochána, in particular, in tackling the challenge of illegal drugs importations. The risk-based approach being adopted, including developing and utilising intelligence in conjunction with national and international law enforcement partners, ensures optimal deployment of resources by the agencies involved. I am satisfied that Revenue is clear and focused in its resolve to tackle the challenge of illegal drugs smuggling.
258. Deputy Michael Lowry asked the Minister for Finance the steps that are being taken to appease the concerns raised by an organisation (details supplied) regarding the uplift to section 481 for the film, television, and animation tax credit, which provides an additional financial incentive to productions based outside counties Dublin, Wicklow, and Cork, and has helped to preserve the better regional spread achieved by those in the media production industry since its introduction; the measures that can be introduced by his Department to alleviate the concerns raised by the organisation should the uplift to the Section 481 not be extended beyond its 2023 expiry date; and if he will make a statement on the matter. [54455/22]
View answerSection 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture.
Finance Act 2018 introduced a short-term, tapered regional uplift for productions being made in areas designated under the State aid regional guidelines. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.
The uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector, Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted this year with a reduction to 3%, it will reduce 2% in 2023, and Nil thereafter.
There are currently no plans to increase the regional uplift rate or to introduce alternative proposals for regional specific changes in the context of Section 481. However I would note that the main film tax credit will remain available to qualifying productions in all areas of the country following the winding-down of the uplift.
There are however a number of other supports available to ensure the continued growth of the film industry across Ireland. I am informed by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media (DTCAGSM) that Screen Ireland, the national development agency for the Irish film, television and animation industry, has recently announced an investment of over €2 million towards the establishment of five new National Talent Academies in Wicklow, Limerick, Galway and Dublin for film and TV drama, animation and production crew. These new Talent Academies will build on the success of the Section 481 skills model to develop and drive opportunities for new and diverse regional talent on a national level. This will ensure an overall national approach to creative talent, crew and workforce development in line with the significant growth ambition for the industry and commitment to social cohesion.
Also in 2021 Screen Ireland announced the Creative Futures fund as part of a commitment to grow strong and resilient companies throughout the country. The fund is designed to help support companies strengthen and hone their expert creative capabilities and ambitions and build cultural resilience to enable high quality cultural projects. I am informed by DTCAGSM that 35% of successful companies were based regionally (outside of Dublin and Wicklow).
259. Deputy Robert Troy asked the Minister for Finance the date in 2014 that section 126 (2b) of the Tax Consolidation Act 1977 was amended; if there was a regulatory impact assessment carried out in advance of the amendment; and the rationale for the amendment. [54456/22]
View answerSection 126 of the Taxes Consolidation Act 1997 (TCA) deals with the tax treatment of certain benefits payable under the Social Welfare TCA.
By way of background, I am advised by Revenue that the Social Welfare Consolidation Act 2005 (SWCA) provides for the payment of the weekly state pension. The payment is made by the Department of Social Protection to an individual who fulfils the statutory criteria. The SWCA also provides for an increase in the amount of state pension where the beneficiary of the pension has a qualified adult dependant. The qualified adult portion is described as an “increase” in the pension and is payable in respect of a spouse, civil partner or cohabitant who is being financially maintained and whose income is not greater than a specified amount.
Section 12 of the Finance (No. 2) Act 2013, which was signed into law by the President on 18 December 2013, inserted subsection 2B into section 126 TCA. The subsection became effective from 1 January 2014, confirming the tax treatment of the qualified adult dependent increase. It provides that, for all the purposes of the Income Tax Acts, any increase in the state pension in respect of a qualified adult dependent is treated as if it arises to and is payable to the beneficiary of the pension, that is, the main pension recipient.
The intention behind the amendment was to put beyond doubt that the beneficiary of a Department of Social Protection pension is assessable on the aggregate of the pension and the amount by which the pension is increased for a qualified adult dependent. This means that the pension payment is not subject to double taxation as the qualified adult increase is deemed to be part of the pension of the person beneficially entitled to the pension rather than a separate source of income for the qualified adult.
Consequently, for the tax years 2014 onwards, only one employee (PAYE) tax credit is available in respect of the state pension, including the qualified adult dependent increase, and there is no entitlement to any increase in the amount charged to income tax at the standard rate as a result of the qualified adult dependent payment.
No Regulatory Impact Assessment (RIA) was carried out in advance of the amendment to section 126 to insert subsection 2B. While such assessments are desirable, the Finance Bill falls within the category of exceptions that are provided for under the Revised RIA Guidelines issued by the Department of the Taoiseach in June 2009. The Guidelines are available at the following link:
assets.gov.ie/43562/b2c5a78227834a96ad001b381456ab18.pdf .
260. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the fact that the Revenue Commissioners are currently writing to carers, widow’s pensioners, people on invalidity pensions and other DSP recipients, with no other income sources requesting them to complete income tax return before 31 October 2022 and 16 November 2022 for previous years 2019, 2020 and 2021 due to PAYE underpayments (details supplied) and if he will make a statement on the matter. [54488/22]
View answerAs the Deputy is aware, the 31 October deadline for submitting paper Self-Assessed Income Tax returns is well established, as is the annual extended deadline to on or around 16 November each year for filing and paying online. Those self-assessed customers who, according to Revenue records, require a paper Form 11, receive their Form well in advance of the Pay & File deadline and I can advise that over 60% of the expected returns have been uploaded to Revenue’s systems to date, albeit this number will rise significantly in the coming days.
In addition to the guidance provided with the Form 11, Revenue has written to customers aged 65 and over, providing additional personal information to help them to complete their Form 11 in the quickest and easiest way possible. The information includes, where applicable, PAYE income (pension and employment) and State pension income for the individual (and their spouse, where applicable). Customers are also advised where to enter the information on the Form 11, noting that the Form 11 is a large form which must cater for a very wide range of customers.
Revenue also provides Access Officers who help and guide persons with disabilities as required and a Forms Ordering Service which is available 24 hours on 01 738 3675. Further information on the Forms Ordering Service can be found on the Revenue website if you go to Revenue.ie>online services>tools and calculator>forms ordering service.
For PAYE customers, the quickest and easiest way to submit returns is online through Revenue’s MyAccount platform, through which in excess of 99% of PAYE employees and pensioners submit their returns. Where customers are unable to submit their return online or by the requested date, they should advise Revenue as soon as possible. Revenue will facilitate all requests for assistance however, customers are advised to seek such assistance in advance of the deadlines.
One of the benefits of submitting a return online is that the information that Revenue has from employers about an employee’s or pensioner’s pay, tax and / or USC deducted is prefilled to the draft return. This means that the customer can quickly review their income information and only needs to update the draft return if they have additional income from another source or if there are credits or reliefs or expenses which they have not yet claimed for.
In addition, a Preliminary End of Year statement is made available to all PAYE employees and pensioners on MyAccount. This statement provides the detail on any possible overpayment or underpayment and further reduces the need to contact Revenue.
Separately, Revenue has recently written to approximately 300,000 PAYE customers advising them of possible overpayments or underpayments of tax. The letters provide clear instructions on what the recipient needs to do to submit the relevant returns and in the vast majority of cases, there will be no need to contact Revenue. To provide some context, up to now over 1 million PAYE employees have submitted tax returns in respect of 2019, 930,000 PAYE employees have submitted returns in respect of 2020, and 880,000 PAYE employees have submitted their returns in respect of 2021.
Notwithstanding, during the peak Pay & File period each year, Revenue provides extended phone services to assist customers in meeting their obligations to Pay & File. Revenue published these details in e-Brief No. 184/22, to see this go to Revenue.ie>Tax and duty professionals>e-Brief.
Revenue’s resources are constantly reviewed in light of the demands for service and other priorities, and it is continually working to improve the services provided to its customers. Given the significant investment in online services and the ease of use of Revenue’s systems, it is considered that there are sufficient resources to meet customer service demand, with no reason to extend the current deadlines.
261. Deputy Michael Collins asked the Minister for Finance if it is envisaged that farmers who own their own land on the edge of a town, within the town boundary, will be liable for the proposed 3% land tax (details supplied); and if he will make a statement on the matter. [54492/22]
View answerFinance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners, including farmers, of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.
RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. It applies to land that is both zoned as suitable for residential development and is serviced. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
In order that landowners, including farmers, can know if their land may be subject to the tax, each local authority has prepared and published draft maps identifying land within the scope of the tax. These map were published by local authorities on 1 November 2022. These maps are available on each local authority's website and in their public offices. A central webpage has been published which sets out information about RZLT and provides links to each Local Authority's map. This is available at: www.gov.Ie/rzlt
The purpose of the draft map is to allow landowners, including farmers, to see if their land is within the scope of the tax. If a landowner sees that their land is included on the draft map, and believes that it should not be, there are two separate courses of action open to them:
1. If the landowner believes that the land is not serviced or falls into one of the specific exceptions provided for in the legislation, they can make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map. The local authority will consider the submission and make a written determination on whether the land should stay on the map or be removed from it. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála.
2. If the landowner believes that the land should not be zoned as suitable for residential development, they can submit a request to the local authority, again by 1 January 2023, seeking to have the land rezoned. The local authority will consider the request and, if appropriate, they will commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process.
It should be noted that, while appearing on the local authority RZLT maps, residential property which is subject to LPT is exempt from RZLT. Further information regarding the maps and related submission/variation processes are available on each local authority website, or at www.gov.ie/rzlt.
A number of amendments to the existing RZLT legislation are proposed in Finance Bill 2022, as initiated. One such amendment proposes to introduce an exemption for land that is within the scope of the tax but is subject to a contract that precludes the landowner from developing it. In order for the exemption to apply, the contract must have been entered into prior to 1 January 2022 i.e., prior to the introduction of RZLT. For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions of the proposed amendment are met, the farmer may claim an exemption from the tax for the period of the lease.
262. Deputy David Stanton asked the Minister for Finance further to Parliamentary Question Nos. 239 and 240 of 25 October 2022, the number of first stage appeals and second-stage appeals that were upheld, failed and refused in respect of VRT calculations in each of the years 2020 and 2021 and to date in 2022, in tabular form. [54504/22]
View answerI am advised that Revenue favours a practical and conciliatory approach to both Stage 1 and Stage 2 VRT Appeals which results in an early resolution for the majority of cases without recourse to an Appeal Hearing. The following tables summarise the outcomes of closed VRT Appeals for the years in question, where available.
Stage 1 Appeals:
|
Year |
No. of Second-hand Vehicles Registered |
No. of Appeals |
Upheld |
Not Upheld |
|
2022 |
56,891 |
494 |
388 |
106 |
Detailed statistics on the outcomes of Stage 1 Appeals in 2020/2021 are not available.
Stage 2 Appeals:
|
Year |
No. of Appeals * |
Settled Pre- Hearing |
Upheld |
Not Upheld |
|
2020 |
33 |
32 |
1 |
|
|
2021 |
71 |
65 |
1 |
5 |
|
2022 |
46 |
45 |
1 |
*Excludes ongoing Appeals
