Holly Cairns
Question:389. Deputy Holly Cairns asked the Minister for Finance if he will outline the steps he is taking to ensure State investments are protected from international market volatility. [17219/23]
View answerFiscal Policy
Questions (389)
Written answers
Banks, including AIB and PTSB, had been amongst the top performers in European stock markets in recent months as rising interest rates improved margins and many banks announced larger returns to investors. However, optimism toward the sector in general was negatively impacted following the various issues with Silicon Valley Bank, Signature Bank and Credit Suisse with the sector internationally coming under significant selling pressure.
AIB and PTSB, the Irish banks in which the State has a shareholding, were not immune from share price volatility in the days and weeks following the negative news around the banks referenced above. During this time, my officials kept me updated on any potential impact on the State's investments and also on any potential read-across to the sector from the factors which led to this latest crisis. I also met the CEO's of AIB and PTSB recently and received a general update on their performance.
Phase three of the AIB trading plan has been operational since 11 January 2023 with Bank of America Securities, acting as the trading plan manager. It is important to note that this trading plan has built-in features which were put in place to protect taxpayer value including a floor price (the price at which Bank of America Securities cannot sell below) which is reviewed from time to time. These protections resulted in relatively few shares being sold during the recent period of volatility and share price weakness.
With regard to PTSB, the State is currently not selling shares in the bank and has no such plans in the near term.
Business Supports
Questions (390)
Alan Kelly
Question:390. Deputy Alan Kelly asked the Minister for Finance his views on an anomaly in the temporary business energy support scheme in which a charity that only qualified as a section 39 organisation cannot apply this year for support given it does not have a trading position and the inflation fund that was launched this year means it also loses out as it only got section 39 status this year (details supplied). [17254/23]
View answerWritten answers
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 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.
A charity that carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D, but for the exemption provided for section 208(2)(b) of the Taxes Consolidation Act 1997, will be regarded as an eligible business under the TBESS as regards that trading activity.
Where a charity is engaged in a number of activities, only some of which would be regarded as trading activities, then only the electricity and gas costs relevant to that activity may be eligible for support under the TBESS. Only metered gas and electricity costs incurred by the charity in respect of a location where the activities of a trade are carried on may be included in a claim under the scheme. This may require apportionment of costs between those activities that are trading in nature and those that are not.
Further details on TBESS and the relevant conditions for making a claim can be found at: www.revenue.ie/en/starting-a-business/tbess/index.aspx
Tax Yield
Questions (391)
Alan Farrell
Question:391. Deputy Alan Farrell asked the Minister for Finance if he will provide the amount of income taxation raised on personal pensions over the last decade, in tabular form; and if he will make a statement on the matter. [17276/23]
View answerWritten answers
I am informed by Revenue that it is not possible to provide a breakdown of income tax paid on personal pensions due to the nature in which income tax is calculated, which is based on a taxpayers’ total gross income from all sources. Furthermore, payroll data submitted to Revenue does not explicitly distinguish between income from an employment and income arising from an occupational pension and as such, there is no basis on which to provide information on the income tax collected from this income source.
Question No. 392 answered with Question No. 384.
Question No. 393 answered with Question No. 384.
Question No. 394 answered with Question No. 384.
Question No. 395 answered with Question No. 384.
Tax Reliefs
Questions (396)
Gerald Nash
Question:396. Deputy Ged Nash asked the Minister for Finance if he will consider amending the Taxes Consolidation Act 1997 to allow members of the public claim tax relief for physiotherapy appointments without the need for a doctor's referral; and if he will make a statement on the matter. [17360/23]
View answerWritten answers
The rationale behind income tax relief for health expenses is broadly intended to provide assistance for significant or exceptional health expenses.
Consistent with this rationale, tax relief in respect of qualifying health expenses is provided for in section 469 of the Taxes Consolidation Act 1997. This section defines "health expenses" as "expenses in respect of the provision of health care including the services of a practitioner".
A practitioner is defined as "any person who is:
1. registered in the register established under section 43 of the Medical Practitioners Act 2007,
2. registered in the register established under section 26 of the Dentists Act, 1985, or,
3. in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".
In the case of physiotherapy, relief can only be allowed in circumstances where the practitioner administering the therapy is a qualified practitioner as defined above, or if the treatment has been prescribed by a practitioner.
Treatment by a physiotherapist is dealt with in the same way as other treatments for health purposes in that to obtain relief, the treatment must come within the terms of the section.
I would note that this is a broadly availed of relief. In 2020, the cost of tax relief for health expenses (excluding nursing home expenses) was €146 million and it was availed of by 538,000 claimants. I am satisfied that the current legislation provides sufficient flexibility for expenses that should qualify for tax relief, while providing safeguards for the relief. Accordingly, there are no plans to change these arrangements at this time.
Further details in relation to relief for health expenses are available on the Revenue website:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/what-are-qualifying-expenses.aspx
Tax Yield
Questions (397)
Gerald Nash
Question:397. Deputy Ged Nash asked the Minister for Finance if he has carried out an analysis of the estimated additional revenue that will be generated for the Exchequer in 2024 with the introduction of his corporation tax reforms based on pillar 2 of the OECD agreement; and if he will make a statement on the matter. [17361/23]
View answerWritten answers
The Department of Finance and the Revenue Commissioners are continually monitoring the potential economic impact of the implementation of the OECD agreement.
It is important to view both Pillars of the Agreement as a package when assessing the impact of the agreement due to the way in which both Pillars of the agreement interact with each other.
An initial estimate of the potential cost of implementation of both pillars of the OECD agreement in terms of reduced tax receipts was published in 2020 as being potentially in the region of €2 billion per annum- approximately 20% of CT revenue at that time.
Since 2020, while acknowledging that CT receipts have increased considerably over that time, it has not been possible to update this figure while so many aspects of the rules remain undecided and so the estimate used for budgetary purposes has remained at €2 billion.
The EU Minimum Tax Directive will implement the minimum tax element of Pillar Two in the EU, including in Ireland. Domestic legislation will be brought forward in the Finance Bill later this year. A Feedback Statement was published recently. The Directive provides for implementation by 31 December in keeping with the OECD agreement’s requirement of implementation this year.
In relation to Pillar One, significant uncertainty remains in relation to the final design of certain elements of the rules which will have a bearing on the potential impact to the Exchequer. Officials from the Department of Finance and the Revenue Commissioners continue to engage in detailed negotiations on these matters at the OECD to ensure that Ireland’s best interests are protected.
It is clear that there will be a cost to implementation of Pillar One but we believe that this is a price worth paying for the stability of the international tax framework. The Exchequer impacts of Pillar Two will depend on the outcome of detailed implementation work and resultant business behaviours as the rules are adopted globally over the coming years. Therefore, while we continue to keep the cost of the OECD agreement under review it is not possible to arrive at an estimated Exchequer impact with any certainty at this time.
Regulatory Bodies
Questions (398)
Gerald Nash
Question:398. Deputy Ged Nash asked the Minister for Finance if he is concerned at the exposure of the Irish financial system to the non-bank or "shadow bank" sector; if he is satisfied that the Central Bank of Ireland has sufficient regulatory powers and supervisory functions over the "shadow bank" sector actors located in Ireland; if he will provide details of the nature and level of engagement he and his officials have had with the Central Bank of Ireland on this issue in recent weeks; and if he will make a statement on the matter. [17362/23]
View answerWritten answers
‘Non-bank’ is a broad term that captures a range of different non-bank financial institutions such as investment funds, money market funds, other financial institutions (OFIs) as well as insurance corporations and pension funds. These non-bank financial institutions have a range of different business models and are engaged in different activities and economic functions.
The risks or vulnerabilities of the non-bank sector for the global financial system are outlined annually by the European Systemic Risk Board and the Financial Stability Board in their monitoring reports. The IMF and other international financial organisations have also written on such matters and my officials as well as those in the Central Bank of Ireland carefully consider such views when issued.
In terms of the exposure of the Irish financial system to the non-bank sector, while the Irish funds sector has been the leading driver of growth in the overall financial system in Ireland, these funds have limited links to the Irish banking system. They do, however, have significant interlinkages with the OFI sector in Ireland, some of which are non-bank lenders engaged in lending to the domestic Irish economy. The OFI sector has more sizable linkages with the Irish banking sector; as at end-2020, the OFI sector held deposits in domestic banks equivalent to approx. 7 percent of total bank deposits.
The largest component of the Irish-domiciled non-bank sector consists of funds, such as investment funds and money market funds. Subject to their structure and activities, these funds may be subject to an extensive set of EU rules in the form of the Undertakings for Collective Investment in Transferable Securities Directive, the Alternative Investment Fund Managers Directive and the Money Market Fund Regulation. These are supplemented by domestic Irish requirements under Central Bank regulations and rules. In 2021, the European Commission brought forward legislative proposals to improve the functioning of the EU investment funds framework. Once implemented, it is anticipated that these amending measures will strengthen the resilience of investment funds throughout the European Union as well as the ability of regulators such as the Central Bank of Ireland to monitor and enforce compliance with the rules.
In other segments of the non-bank sector, the Central Bank has introduced reporting requirements to monitor developments. For example, Irish-resident Section 110 companies are obliged to report quarterly statistical data to the Central Bank under Section 18 of the Central Bank Act 1971. While these entities are not authorised by the Central Bank they are subject to various regulatory requirements, dependent on the nature of their activities. The Central Bank is responsible for monitoring and enforcing compliance with such regulations.
Non-bank financial institutions carrying out ‘Schedule 2 activities’ under the Criminal Justice (Money Laundering and Terrorist Financing), (Amendment) Act 2010 are subject to supervision by the Central Bank for Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) purposes. Schedule 2 firms are subject to the Central Bank’s minimum engagement model and are supervised in accordance with this model. During the course of this supervision, where weaknesses in the AML/CFT frameworks are identified in Schedule 2 firms, the supervisors issue findings that the Schedule 2 firms are required to implement.
Non-bank financial institutions such as Irish-resident Section 110 companies may also be required to publish a prospectus under the EU Prospectus Regulation and will be subject to regulatory requirements in respect of their derivative activities (under the EU Regulation known as “EMIR”).
The Department of Finance and the Central Bank of Ireland are cognisant of the need to ensure resilience in the non-bank sector. Examples of action taken to ensure resilience in specific parts of the non-bank sector include the introduction of new macroprudential measures for Irish property funds by the Central Bank. The Central Bank was the first European authority to introduce macro-prudential measures for the investment fund sector via an empowerment under EU funds legislation (the Alternative Investment Fund Managers Directive).
In addition, on 6 April, I published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector. The review will seek to ensure that Ireland maintains its leading position in asset management and funds servicing and that we continue to see support for our national and regional economies. The review will also seek to ensure that Ireland’s funds sector framework is resilient, future-proofed, supportive of financial stability and a continued example of international best practice. The multi-disciplinary Review Team will be led by the Department of Finance, with support from state bodies, including Revenue and the Central Bank of Ireland, and will conclude its work in summer 2024.
My officials and I continue to engage with the Central Bank on these important issues and such matters have been discussed at the Financial Stability Group. The FSG is a group chaired by the Secretary General of my Department and is made up of the senior leadership of the Central Bank of Ireland and the NTMA). The Department of Finance and the Central Bank of Ireland also continue to actively participate in multiple EU and international fora to address the risks posed by non-banks, reflecting the global nature of capital markets.
Prize Bonds
Questions (399)
Seán Sherlock
Question:399. Deputy Sean Sherlock asked the Minister for Finance the amount of prize bonds prizes that are unclaimed or could not be claimed due to the person who held them being deceased, by county of residence last known and amount, in tabular form. [17422/23]
View answerWritten answers
The NTMA has provided me with the following table in response to the Deputy's question.
|
County/Country |
Value of Unclaimed Prizes |
|
Co. Armagh |
€2,512 |
|
Co. Antrim |
€6,712 |
|
Co. Clare |
€51,636 |
|
Co. Cork |
€309,959 |
|
Co. Cavan |
€30,618 |
|
Co. Carlow |
€25,594 |
|
Co. Dublin |
€1,618,461 |
|
Co. Donegal |
€54,585 |
|
Co. Down |
€9,701 |
|
Co. Derry |
€3,929 |
|
Co. Fermanagh |
€9,375 |
|
Co. Galway |
€105,859 |
|
Co. Kildare |
€88,939 |
|
Co. Kilkenny |
€37,103 |
|
Co. Kerry |
€72,239 |
|
Co. Longford |
€19,419 |
|
Co. Louth |
€51,081 |
|
Co. Limerick |
€115,361 |
|
Co. Leitrim |
€18,661 |
|
Co. Laois |
€74,475 |
|
Co. Meath |
€69,426 |
|
Co. Monaghan |
€22,397 |
|
Co. Mayo |
€58,109 |
|
Co. Offaly |
€28,362 |
|
Co. Roscommon |
€33,737 |
|
Co. Sligo |
€85,072 |
|
Co. Tyrone |
€9,235 |
|
Co. Tipperary |
€86,493 |
|
Co. Waterford |
€102,520 |
|
Co. Westmeath |
€36,339 |
|
Co. Wicklow |
€90,348 |
|
Co. Wexford |
€63,312 |
|
Outside Ireland |
€249,826 |
|
€3,641,396 |
Question No. 400 answered with Question No. 384.
Tax Reliefs
Questions (401)
Jennifer Murnane O'Connor
Question:401. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the timeline for the publication of the review of the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [17561/23]
View answerWritten answers
Minister Donohoe committed to a comprehensive review of the Disabled Drivers and Passengers Scheme (DDS) as part of a broader review of mobility supports. In order to achieve this objective, Minister O’Gorman agreed in September 2021 that the DDS review should be incorporated into the work of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG).
The National Disability Inclusion Strategy Transport Working Group (TWG), comprising members from a range of Departments, agencies and Disabled Persons Organisations, was tasked under Action 104 to review all Government-funded transport and mobility supports for those with a disability, including the Disabled Drivers and Disabled Passengers Scheme (DDS). Officials from DCEDIY led the work of the group.
The NDIS TWG final report was published on 24 February 2023 and welcomed the proposal put forward by the Department of Finance and the Criteria Sub-Group that the DDS is replaced with a needs-based, grant-aided vehicular adaptation and indicated that the proposal was a clear deliverable on which work could begin in the relatively near future.
The NDIS TWG final report also notes in its conclusion that the DDS is outdated and that the scheme needs to be addressed as a matter of priority.
The reasons that the scheme is considered outdated are as follows:
- Introduced in the 1960s, the DDS has an outdated, ‘in-or-out’, medically-based policy rationale.
- It does not meet the needs of a significant group of those with a disability and with mobility impairments;
- It requires individuals to 'prove' they are sufficiently 'disabled' and any expansion of eligibility criteria will still mean some individuals will not meet the criteria
- The DDS administrative and operational model is not and will never be fit-for-purpose in meeting the standards expected of a modern scheme
- The DDS is significantly divergent from international best practice on almost all scheme parameters.
- Ireland is the only country to provide a lump-sum tax relief, the only country to have a Ministry of Finance solely responsible for vehicle-related provisions, the only country to provide life-long provisions and with the shortest vehicle retention period, i.e. provisions can be renewed every two years.
While the NDIS TWG endorses the proposal to develop a new needs-based, grant-aided vehicular adaptation scheme, the final report does not set out next steps.
It will be a matter for Government as to how to take this matter forward.
Departmental Bodies
Questions (402)
Jennifer Murnane O'Connor
Question:402. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the status of the Disabled Drivers Medical Board of Appeal; and if he will make a statement on the matter. [17562/23]
View answerWritten answers
The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT 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 who meet specified medical criteria, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.
In the event that a PMC is not granted by the relevant Principal Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA).
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 previous DDMBA members in November 2021, I had hoped that I would be in a position to establish a new DDMBA and recommence the appeals process by this point.
With respect to the recruitment of new members, as background five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. The Department of Health has led on all actions and tasks with respect to Expression of Interest Campaigns to recruit candidates. Department of Finance officials have provided support to the Department of Health in this matter. Active recruitment efforts began shortly after the resignation of all members in November 2021, with the first Expression of Interest Campaign launched in January 2022. By November 2022 after three recruitment campaigns, five individuals had been nominated by the Minister of Health, pending successful completion of Garda vetting of two final candidates. These candidates successfully completed Garda vetting in January 2023.
Engagement began in December 2021 with the National Rehabilitation Hospital (NRH), to ascertain the conditions for their continued hosting of the new DDMBA. In February 2023, the NRH (which has hosted the DDMBA since 2000) indicated their intention to withdraw their services with immediate effect. Finance and Health officials are actively seeking to implement new arrangements, including engaging with the NRH. As there are a range of requirements and complex issues involved this may take some time.
Requests for appeal hearings can still be sent to the DDMBA secretary based in the NRH.
Assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.
Credit Availability
Questions (403)
Eoin Ó Broin
Question:403. Deputy Eoin Ó Broin asked the Minister for Finance if he is aware of the practice of a bank (details supplied); his views on whether this practice is correct; and if he will make a statement on the matter. [17598/23]
View answerWritten answers
Individual lending decisions are commercial decisions for lenders. Neither the Central Bank nor I can intervene directly in the commercial decision-making process of any financial institution.
I have been informed by the Central Bank that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times.
There are certain consumer protection requirements which govern the provision of mortgage credit. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement.
The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
Furthermore, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
Within this regulatory framework, the decision to grant or refuse an application for mortgage credit remains a commercial matter for the individual lender.
If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for credit, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm.
If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman.
Question No. 404 answered with Question No. 384.
Tax Data
Questions (405)
Ivana Bacik
Question:405. 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 2021, 2022 and to date in 2023; and if he will make a statement on the matter. [17634/23]
View answerWritten answers
I am advised by Revenue that tax return data in relation to 2021, 2022 and 2023 are not yet available for analysis and publication. Instead, the Deputy may be aware of Revenue’s Ready Reckoner (Post Budget 2023), which is available on the Revenue website at:
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
This sets out, on page 2, an estimated allocation of taxpayers to tax bands in the year 2023. These estimates are arrived at using Revenue’s micro-simulation tool Tax Modeller, which uses actual tax return data for 2019 and takes account of income and labour fluctuations in the interim. For the Deputy’s ease of reference the table is set out below.
Estimated Income Earner Taxpayer Units by Income Tax Rates in 2023
|
Year |
Exempt (standard rate liability covered by credits or age exemption limits) |
Standard Rate (including those whose liability at the higher rate is fully offset by credits) |
Higher Rate (not fully offset by credits) |
Total |
|
2023 |
1,220,400 (37%) |
1,411,500 (43%) |
643,500 (20%) |
3,275,400 |
As shown on page 2, an estimated 20 per cent of taxpayers (643,500 taxpayer units) pay tax at the higher rate of income tax. However, this figure must be viewed in the context of the accompanying note, which indicates that if a taxpayer’s nominal liability at 40 per cent is fully covered by their tax credits then they are represented in this table as being a standard rate income taxpayer.
Tax Code
Questions (406)
Michael Ring
Question:406. Deputy Michael Ring asked the Minister for Finance if he will confirm whether or not active farmland is excluded from RZLT; and if he will make a statement on the matter. [17680/23]
View answerWritten answers
Finance 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. 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.
It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.
Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development.
Agricultural land which is zoned solely or primarily for residential use meets the criteria set out within the legislation and therefore falls within the scope of the tax. Agricultural land that is zoned for a mixture of uses including residential is not in scope. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area and landowners within such zonings may fall within the scope of the tax, in the interests of ensuring an appropriate supply of housing on zoned lands.
A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was 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, they had the opportunity to make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map, or they could have sought to have their land rezoned.
Local authorities will have now considered the submissions received and made written determinations 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. If a landowner requested a rezoning of their land, the local authority would consider the request and, if appropriate, they would 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.
Furthermore, Finance Bill 2022 introduced 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. 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 are met, the farmer may claim an exemption from the tax for the period of the lease.