Tuesday, 18 Apr 2023

Written Answers Nos. 353-370

Tax Code

Questions (357, 358, 370, 371)

Niall Collins

Question:

357. Deputy Niall Collins asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [16632/23]

Michael Lowry

Question:

358. Deputy Michael Lowry asked the Minister for Finance concerning the current rate of tax concessions associated with tax relief for health insurance premiums, the present tax relief available is equivalent to the lesser of the following: 20% of the policy's cost or 20% of €1,000 which is equivalent to a maximum €200 credit, given the increased cost of health insurance premiums and as this tax concession currently stands at the basic income tax rate of 20%, would he consider reinstating it to the higher rate of 40% tax relief; and if he will make a statement on the matter. [16644/23]

Fergus O'Dowd

Question:

370. Deputy Fergus O'Dowd asked the Minister for Finance if consideration will be given to a proposal regarding restoring a tax concession (details supplied); and if he will make a statement on the matter. [16672/23]

Louise O'Reilly

Question:

371. Deputy Louise O'Reilly asked the Minister for Finance in relation to health insurance policies for older people, if (details supplied) has been considered. [16850/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 357, 358, 370 and 371 together.

The position is that section 470 of the Taxes Consolidation Act 1997 (TCA 1997) provides for tax relief in respect of payments made to authorised insurers under relevant contracts in respect of medical insurance and dental insurance.

Qualifying medical insurance policies can be for health insurance, dental insurance or health and dental insurance combined.

Generally, tax relief is given as a reduction on the cost of the policy. This is known as tax relief at source, and under this treatment policy holders pay a reduced premium to the medical or dental insurer (i.e. pay the net of tax relief amount) and the authorised insurer makes a claim to Revenue for the tax relief granted at source to the policy holder.

Tax relief for medical insurance premiums is provided at the standard rate of income tax, of 20 per cent.   The relief available is equal to the lesser of (a) 20 per cent of the cost of the policy or (b) 20 per cent of €1,000 per adult or €500 per child insured.  

It should be noted that a child for the purpose of this credit is a child under 21 years of age in respect of whom a child premium has been paid.

The current ceilings on the premium values qualifying for tax relief were introduced in Budget 2014 as the cost of the tax relief had increased significantly in the years leading up to this change.  In addition, despite the increasing cost of the relief, the numbers insured were estimated to have reduced by around 150,000 over the same period, while at the same time the level of medical cover had decreased on some policies. Against this background the increase in costs was unsustainable. 

It is important to point out that the ceilings introduced in Budget 2014 ensured a level of continuing support via the tax system for those who purchased medical insurance policies, while reducing Exchequer exposure to more expensive policies. The relief is provided at source, which ensures that individuals on lower incomes can receive the full benefit of the available relief.

Section 470B TCA 1997 previously provided for an age-related tax credit in the case of payments made for medical insurance policies renewed or entered into on or after 1 January 2009 but before January 2013, where the payment was in respect of an insured person aged 50 years or more. However, the Risk Equalisation Scheme, introduced from 1 January 2013 replaced this tax credit.

Furthermore, it should be noted that tax relief in respect of medical insurance has always applied at the standard rate of tax, it has never been granted at the marginal rate of income tax and I have no plans to enhance the tax relief.

Finally, as the Deputies may be aware, the Commission of Taxation and Welfare recommended that in the context of the implementation of Sláintecare relief for private health insurance should be phased out over time. Further details are set out in the Commission’s report - www.gov.ie/en/publication/7fbeb-report-of-the-commission/

Question No. 358 answered with Question No. 357.

Official Engagements

Questions (359)

Jennifer Murnane O'Connor

Question:

359. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if he met the Mayor of Toronto during his visit to Toronto for the recent St. Patrick's day events; and if he will make a statement on the matter. [16692/23]

Written answers

Minister for Finance

The St Patrick's Day programme in which I participated for 2023 involved visits to both Toronto and Chicago. During the programme in Toronto I did not meet with the Mayor of Toronto, as that office became vacant following the resignation of Mayor Tory in February of this year.

Among those I met while there was Minister Bethlenfalvy, Ontario Minister for Finance. This was an opportunity to further relations between Ireland and the Province of Ontario, and I was delighted to highlight the commitment of the Government to deepening the relationship with Canada, including the increased Irish diplomatic and state agency presence in Canada. More broadly, the programme in Toronto focused on trade promotion and engagement with the Irish community.

Departmental Schemes

Questions (360)

Niall Collins

Question:

360. Deputy Niall Collins asked the Minister for Finance the steps being taken to ensure that a bank (details supplied) recognises the Croí Cónaithe grant scheme; and if he will make a statement on the matter. [16709/23]

Written answers

Minister for Finance

I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. This independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market. 

Notwithstanding the above, officials in my Department have been in contact with the bank referred to in the question and it has provided the below response:

“Discussions with the Department of Housing, through the BPFI, are ongoing with Banks to agree and finalise a Priorities Agreement that will put an agreement in place between Local Authorises and Banks to support customers using the Grant.”

Customs and Excise

Questions (361)

Catherine Murphy

Question:

361. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule indicating the number of revenue customs inspections conducted at each aerodrome location in the State including military sites since 1 January 2021 to date in 2023; the value of cash and items seized; the value of cash and items returned on appeal; and the amount collected in excise and duty inspected. [16800/23]

Written answers

Minister for Finance

I am advised by Revenue that details of Customs inspections at the various aerodrome locations, the value of cash and items seized and items returned on appeal and the amount of excise and duty collected, is provided in the table below for the years in question. The value of contraband includes all types of seizures from excisable products, weapons, controlled drugs, meats, etc. The value detailed is the value of the products excluding duties. 

I am assured by Revenue that activity levels at all these locations is evaluated and monitored on an ongoing basis and a risk-based determination as to whether a physical presence is required at these locations from time to time is undertaken by Revenue. Attendance at these locations by Revenue’s Customs staff is normally unannounced, but circumstances may require that arrangements are made to ensure personnel and records are available.

2021 to date 2023

Aerodrome	No. of Customs Inspections	Value of Cash Seized   (€)	Value of Items Seized     (€)	Value of Cash Returned on Appeal (€)	Value of Items Returned on Appeal (€)	Amount Collected in Excise     (€)	Amount Collected in Duty     (€)
Abbeyfeale Airfield	1	0	0	0	0	0	0
Abbeyleix House	2	0	0	0	0	0	0
Abbeyshrule	1	0	0	0	0	0	0
Ardfert	2	0	0	0	0	0	0
Askeaton	2	0	0	0	0	0	0
Baldonnell	2	0	0	0	0	0	0
Ballina Airfield	3	0	0	0	0	0	0
Ballinabranagh Carlow	0	0	0	0	0	0	0
Ballyboe Airstrip	0	0	0	0	0	0	0
Ballyboughal Airfield	30	0	0	0	0	0	0
Ballyboy	2	0	0	0	0	0	0
Ballyvarry Airfield	3	0	0	0	0	0	0
Ballyvaloo, Wexford	1	0	0	0	0	0	0
Bantry Aerodrome	33	0	0	0	0	0	0
Belmullet Airfield	3	0	0	0	0	0	0
Birr Airfield	2	0	0	0	0	0	0
Bunnanden	1	0	0	0	0	0	0
Clonakilty	2	0	0	0	0	0	0
Clonbollogue Airfield	2	0	0	0	0	0	0
Coolnakilly, Wicklow	1	0	0	0	0	0	0
Coonagh	2	0	0	0	0	0	0
Donegal Airport	7	0	0	0	0	0	0
Dowth Hall	0	0	0	0	0	0	0
Dunboyne	0	0	0	0	0	0	0
Elphin	6	0	0	0	0	0	0
Enniskeane	2	0	0	0	0	0	0
Fermoy	2	0	0	0	0	0	0
Fethard Airstrip	2	0	0	0	0	0	0
Gowran Kilkenny	0	0	0	0	0	0	0
Granard	0	0	0	0	0	0	0
Ilas Field, Taghmon	1	0	0	0	0	0	0
Inis Meáin	0	0	0	0	0	0	0
Inis Mór	0	0	0	0	0	0	0
Inis Óirr	0	0	0	0	0	0	0
IWAK (Ireland West Airport Knock)	188	0	€5817	0	0	0	0
Kerry	171	0	€35,446	0	€21,750	0	€5017
Kilamaster Carlow	0	0	0	0	0	0	0
Kilkenny	3	0	0	0	0	0	0
Killenaule Airstrip	1	0	0	0	0	0	0
Killoughrim, Enniscorthy	1	0	0	0	0	0	0
Kilrush	2	0	0	0	0	0	0
Laytown	0	0	0	0	0	0	0
Limetree Laois	0	0	0	0	0	0	0
Lissenhall Airstrip	1	0	0	0	0	0	0
Magney Carlow	0	0	0	0	0	0	0
Midland Heli Abbeyleix	0	0	0	0	0	0	0
Miltownpass	0	0	0	0	0	0	0
Monasterevan	0	0	0	0	0	0	0
Morriscastle, Wexford	1	0	0	0	0	0	0
Mount Talbot	1	0	0	0	0	0	0
Moyglare	0	0	0	0	0	0	0
Moyne Airstrip	0	0	0	0	0	0	0
Mullinahone Airstrip	1	0	0	0	0	0	0
Na Minna, Indreabhán, Connemara	3	0	0	0	0	0	0
Navan Airfield	7	0	0	0	0	0	0
Newcastle, Wicklow	3	0	0	0	0	0	0
Portlaoise	0	0	0	0	0	0	0
Rathcoole	2	0	0	0	0	0	0
Roscommon	4	0	0	0	0	0	0
Scurlogstown	0	0	0	0	0	0	0
Sligo Airport Strandhill	12	0	0	0	0	0	0
Spanish Point	2	0	0	0	0	0	0
Taggarts	0	0	0	0	0	0	0
Tibohine	6	0	0	0	0	0	0
Trim Airfield	1	0	0	0	0	0	0
Trimblestown	0	0	0	0	0	0	0
Warrens Fields, Gorey	1	0	0	0	0	0	0
Waterford Airport	9	0	0	0	0	0	0
Weston Aerodrome	74	0	0	0	0	0	0
Total	609	0	€41,263	0	€21,750	0	€5017

Tax Yield

Questions (362)

Catherine Murphy

Question:

362. Deputy Catherine Murphy asked the Minister for Finance the estimated additional revenue that would be raised from a 5% surcharge on all taxable income above €400,000. [16929/23]

Written answers

Minister for Finance

I assume that the Deputy’s question relates specifically to Income Tax, as opposed to Universal Social Charge.

On that basis, I am advised by Revenue that the estimated first and full year yield to the Exchequer from the introduction of a third rate of income tax of 45 per cent applicable to taxable income in excess of €400,000 is €160 million and €220 million respectively.

Tax Yield

Questions (363)

Catherine Murphy

Question:

363. Deputy Catherine Murphy asked the Minister for Finance the estimated additional revenue that would be raised from increasing the rate of capital gains tax to 50% for persons earning over €375,000. [16930/23]

Written answers

Minister for Finance

I am advised by Revenue that the estimated additional full-year revenue generated from a 50% Capital Gains Tax (CGT) rate applying to the taxable gains of individuals with incomes of more than €375,000 would be in excess of €103 million. 

This full-year estimate is based on 2020 data, the latest year for which fully analysed data are available. This estimate assumes no change in behaviour by individuals resulting from the increase in the tax rate.

Question No. 364 answered with Question No. 345.

Question No. 365 answered with Question No. 345.

Question No. 366 answered with Question No. 345.

Renewable Energy Generation

Questions (367)

Patrick Costello

Question:

367. Deputy Patrick Costello asked the Minister for Finance if he is aware that the report by the Oireachtas Committee on Agriculture, Food and the Marine on agriculture and the solar industry recommends that his Department conduct an appraisal as to the performance of the 50% limit on total land area used for the installation of solar panels limit with regard to CAT relief; if such a process has been undertaken; if so, the outcome; the reasoning behind the outcome of that process; and if he will make a statement on the matter. [16348/23]

Written answers

Minister for Finance

Prior to Finance Act 2017, agricultural land which was leased for solar panels was not classified as qualifying agricultural property for the purposes of Capital Gains Tax retirement relief or agricultural relief from Capital Acquisitions Tax. 

Following a review announced in Budget 2018, and in recognition of the then Government's commitment to facilitate the development of solar energy projects in Ireland, a revised approach was introduced whereby it is now possible for land leased for the installation of solar panels to be classified as qualifying agricultural property under certain conditions. A key condition is that the total area of land under lease and on which solar panels are installed does not exceed 50% of the total area of agricultural land.   

While introducing this amendment, it was important that we did not lose sight of the fundamental principle which underpins our policy in relation to agricultural relief and retirement relief.   

I recognise that allowing land leased for solar panels to be classified as qualifying agricultural property is an important element in encouraging solar energy projects. However, this must also be carefully balanced with the overarching objectives of this valuable relief which aims to encourage the inter-generational transfer of agricultural land which is being actively farmed. 

My Department is aware of the report by the Oireachtas Committee on Agriculture, Food and the Marine’s on Agriculture and the Solar Industry, which recommended an appraisal as to the performance of the 50% limit on the total land area used for the installation of solar panels.

My officials continue to engage directly with representative bodies of the solar energy industry on such matters. My Department is also engaging with the Department of Agriculture, Food and the Marine, the Department of Energy, Climate and Communications and Revenue to further consider this issue.

Departmental Schemes

Questions (368)

Paul Murphy

Question:

368. Deputy Paul Murphy asked the Minister for Finance whether Citibank has received financial support directly from the State for example through the TBESS or CRSS scheme, over the past twenty years and to outline, in tabular form, any support given on an annual basis. [16373/23]

Written answers

Minister for Finance

As the Deputy will be aware neither Revenue nor I can comment directly or indirectly on the arrangements of individual persons/businesses. Neither am in a position to identify or enumerate all financial supports provided by various Departments outside of my remit under relevant schemes designed to support or assist businesses.

However, with regard to the specific schemes mentioned and related schemes such as the Business Resumption Support Scheme (BRSS), the Temporary Wage Subsidy Scheme (TWSS), and Employment Wage Subsidy Scheme (EWSS) I can confirm that notwithstanding any obligations imposed on the Revenue Commissioners under section 851A Taxes Consolidation Act, 1997, which deals with the confidentiality of taxpayer information or any other enactment in relation to the confidentiality of taxpayer information, Revenue is obliged to publish, on its website, certain details of person or businesses that have claimed payments under these schemes. This obligation does not extend to the amount of the payment received.

With regard to CRSS, BRSS, TWSS and EWSS relevant information which is required to be published by law can be found at the following links:

• Covid Restrictions Support Scheme (CRSS): www.revenue.ie/en/self-assessment-and-self-employment/crss/list-of-businesses-received-payments-under-crss.aspx  

• Business Resumption Support Scheme (BRSS): www.revenue.ie/en/self-assessment-and-self-employment/brss/list-of-businesses-received-payments-under-brss.aspx  

• Temporary Wage Subsidy Scheme (TWSS): www.revenue.ie/en/employing-people/twss/list-of-employers/index.aspx

• Employment Wage Subsidy Scheme (EWSS) on a quarterly basis: www.revenue.ie/en/employing-people/employment-wage-subsidy/ewss/list-of-employers-who-received-payments-under-the-ewss.aspx

• With regard to the Temporary Business Energy Support Scheme (TBESS), Finance Act 2022, Section 101(26), requires Revenue to publish certain details of recipients under the scheme. The information to be published includes the name and address of the qualifying business along with the total amount of the temporary business energy payment made to the business. This information will first be published one month after the day on which the scheme ends, in respect of temporary business energy payments made during the specified period. Revenue will also publish an update five months after the specified period ends.   

Business Supports

Questions (369)

Éamon Ó Cuív

Question:

369. Deputy Éamon Ó Cuív asked the Minister for Finance what support is available to new businesses that commenced business in the past 12 to 24 months under the business energy support scheme and that are facing very high energy bills; if there is no support, whether he intends amending the scheme to support these businesses; and if he will make a statement on the matter. [16390/23]

Written answers

Minister for Finance

The Temporary Business Energy Support Scheme (TBESS) was introduced in Finance Act 2022 to support qualifying businesses with increases in their electricity or natural gas costs arising from the invasion of Ukraine by Russia.

The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to State aid approval and enactment of changes proposed in Finance Bill 2023, this period is to be extended to cover energy costs up to 31 May 2023. It is 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 is designed around determining increases in unit prices and actual consumption for each month falling within the period of the scheme as compared to the same month in the previous year based on information made available through electricity and gas meters. 

New businesses are eligible to make a claim under the scheme notwithstanding that they do not have a corresponding electricity or natural gas bill for month 12 months prior to the month of claim. Such businesses eligibility for the TBESS is determined based on a deemed reference electricity or gas unit price. This deemed monthly reference unit price is the price that has been made available by the Sustainable Energy Authority of Ireland (SEAI) and used in the energy costs threshold and eligible costs calculations.  

The deemed reference unit prices are based on data provided to the SEAI by energy suppliers and the Commission for Regulation of Utilities. If the unit price on a relevant electricity or natural gas bill is at least 50% higher (or 30% subject to State aid approval and enactment of the changes in Finance Bill 2023) than the deemed reference unit price for the corresponding period in the 12 months prior, the business will pass the threshold for support under the scheme.  In these circumstances, the eligible cost amount will be calculated by reference to the difference between the actual and deemed unit prices and will be based on consumption levels in the current bill. 

All qualifying businesses, including new qualifying businesses, wishing to claim support under the TBESS are required to register for and make a claim using the Revenue Online Service (ROS). Where the eligible business does not have a reference electricity bill or reference gas bill for the reference period, because the business had not commenced at that time or because the relevant electricity account or gas connection was not held by the business at the time, a deemed reference unit price must be used in the energy costs threshold and eligible costs calculations.

The deemed reference unit price will be applied on behalf of the business on ROS for the purposes of the energy costs threshold and also, where the energy costs threshold is passed, for determining the quantum of eligible costs in relation to a relevant electricity or gas bill. 

At registration, applicants for the TBESS are asked if the electricity account or gas connection has been held by the business since September 2021.  If the answer is ‘No’, the business is then requested to provide the date of connection. This indicates, to ROS, what reference periods will require a deemed reference unit price. The business is then requested to input an item of information regarding their category of consumption because the applicable deemed reference unit price will depend on that category. In the case of an electricity account, it is the Distribution Use of System (DUoS) Group.  The ‘DG’ number, which is on every electricity bill, indicates the DUoS profile.  In the case of a gas account, it is the ‘AC band’.

Most gas bills have an AC band listed but in the event that the AC band is not listed on the bill, customers can contact their suppliers for that information.  The DG number and AC band are usually indicated clearly on the energy bill. Revenue has published an ‘Understanding Your Bill’ Guide on its website that applicants can consult for assistance with identifying this information.

Revenue has also 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 at: www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf . Deemed reference unit prices for electricity and gas, which have been made available by the SEAI, are contained in Appendix III of the guidelines. 

Question No. 370 answered with Question No. 357.