Tuesday, 9 May 2023

Tax Code

Questions (86)

Marc Ó Cathasaigh

Question:

86. Deputy Marc Ó Cathasaigh asked the Minister for Finance his views on applying a zero VAT rate on heat pumps; and if he will make a statement on the matter. [21306/23]

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Written answers

The Deputy should note that under the VAT Directive it is not possible to reduce the VAT on heat pumps to zero. However, following changes agreed last year in Annex III of the aforementioned Directive, there is scope to reduce the VAT rate in highly efficient low emissions heating systems to a reduced VAT rate. In Ireland that would mean a rate of 9% or 13.5%.

However, these systems have to comply with very specific technical requirements, meeting the emission benchmarks laid down in Annex V of Commission Regulation (EU) 2015/1189 and in Annex V of Commission Regulation (EU) 2015/1185 respectively and having been attributed an EU energy label to show that the criterion referred to in Article 7(2) of Regulation (EU) 2017/1369 is met. In summary, these criteria are very exacting.

Universal Social Charge

Questions (87)

Joe Flaherty

Question:

87. Deputy Joe Flaherty asked the Minister for Finance if he has any plans to amend the €60,000 USC threshold for the over-70s; and if he will make a statement on the matter. [21521/23]

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Written answers

Minister for Finance

The USC was designed and incorporated into the Irish taxation system in 2011 to replace two other charges, namely the Health and Income Levies. When the USC was introduced in 2011 those aged 70 years and over were not liable to the top rates of charge. However, in Budget 2013, it was decided that the reduced rates of USC for those age 70 years and over with an income in excess of €60,000 would be discontinued from 1 January 2013. This measure ensured equity between all citizens with incomes in excess of €60,000.

The USC is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of his/her own individual income and personal circumstances. This means that a married couple, or civil partners, both aged 70 or over can earn up to €60,000 per annum each and not be subject to the higher rates of USC. In addition, the USC does not apply to social welfare payments such as the contributory and non-contributory State pensions. Such social welfare payments are excluded when determining if a person aged over 70 has income that exceeds the €60,000 per annum threshold.

Additionally, it should be noted that those aged 65 and over are currently treated more favourably under the Irish income tax system than the generality of taxpayers. For example, persons aged 65 or over may avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Persons aged 66 and over are also exempt from PRSI.

As such, I have no current plans to increase the threshold for the reduced rate of USC for persons aged 70 or over.

The Commission on Taxation and Welfare recently reviewed the tax system in the round. The Commission recommended that age should be removed as a factor for determining the charge to income tax and USC, as it breaches the principle of horizontal equity and the concept of inter-generational equity. Further information is available at the following link: www.gov.ie/en/publication/7fbeb-report-of-the-commission/

Finally, my Department is currently undertaking a review of the personal tax system, which will take account of the Commission on Taxation and Welfare recommendations and other personal tax matters.

Economic Data

Questions (88)

Peadar Tóibín

Question:

88. Deputy Peadar Tóibín asked the Minister for Finance if his attention has been drawn to figures showing a decline in the Irish economy in the first three months of 2023 (details supplied); and if he will make a statement on the matter. [21448/23]

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Written answers

Minister for Finance

The CSO’s early ‘flash’ estimate of quarterly GDP for Ireland, released one month after the end of the relevant quarter, estimated that GDP contracted by 2.7 per cent in the first quarter of 2023 compared to the previous quarter. However, there are a number of points I would like to raise.

Firstly, as is widely acknowledged, GDP is not a useful measure of what is happening on the ground in the domestic economy. It is a volatile measure of economic activity that reflects the outsized role played by the multinational sector in the Irish economy. Production by the multinationals is notoriously volatile on a quarterly basis and can sometimes by driven by firm specific changes. Indeed there are a number of instances in recent years of quarterly declines in GDP within years when GDP grew strongly.

Furthermore, it is important to note that these are first estimates of GDP, which can often be subject to non-trivial revisions in both directions. Indeed, Ireland’s GDP growth rate for Q4 2022 was revised down from 3½ per cent in the ‘flash’ release, to 0.3 per cent in the more detailed release that followed a month later.

In any event, domestic economic developments are better captured by Modified Domestic Demand (MDD) and its drivers such as consumer spending and modified investment, which are due to be published in the more detailed release early next month. The economy has proven to be remarkably resilient despite inflationary pressures. Indeed, data releases on the domestic economy in the first quarter, including in the labour market where unemployment fell in the first quarter as well as tax receipts point to a solid opening quarter.

My Department recently published updated forecasts as part of the Stability Programme Update last month. MDD is projected to grow by 2.1 this year, and by 2.5 per cent next year.

Mortgage Interest Rates

Questions (89)

Richard Boyd Barrett

Question:

89. Deputy Richard Boyd Barrett asked the Minister for Finance if he will introduce a cap on mortgage interest rates to prevent mortgage holders and families being impoverished by rising interest rates; and if he will make a statement on the matter. [21568/23]

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Written answers

Minister for Finance

The formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation.

The level of official interest rates influences the overall level of interest rates throughout the economy. However, the setting of retail lending rates by individual lenders is a commercial matter for that lender and I have no function or role in such decision making matters by financial institutions. It should also be noted that the weighted average interest rate on new Irish mortgage agreements at end-February 2023 was 2.92 per cent and is now among the lowest in the euro area. Also it should be noted that the structure of the Irish mortgage market is changing and that there is an increase in the take up of fixed rate mortgages - in February 2023 for example 93% of new mortgages were at a fixed interest rate - and this protects borrowers from ECB interest rate increases for the period that the interest rate is fixed.

Further, a number of measures have been implemented to support households facing rising interest other than imposing caps on mortgage interest rates which has the potential for unintended consequences for current and future mortgage holders. The Central Bank has introduced a number of increased protections for variable rate mortgage holders in recent years which help mortgage holders identify lower cost mortgage options. Firstly it made changes to the Consumer Protection Code which required lenders to explain to borrowers how their non tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates. Secondly, it also increases the level of information lenders are required to provide their customers including where there is a possibility for the borrower to move to a lower ‘loan to value’ interest rate band and signpost the borrower to the Competition and Consumer Protection Commission's mortgage switching tool.

More recently, the Central Bank wrote to all regulated firms last November to set out its expectations on how regulated firms should support their customers.

With respect to mortgages, the Central Bank is especially focused on ensuring that firms have the resources and arrangements in place to assess applications from existing and new or switching borrowers in a manner that is timely and based on prudent lending standards applied consistently across all applicants.

In addition, as the Deputy is aware, the total size of Budget 2023 was €11 billion and it contained many measures to assist families with the increased cost of living. Furthermore, on 21 Feb 2023, an extra €1.2 billion was provided to help households and businesses to meet cost of living increases

However, I am aware that some borrowers will experience repayment difficulty on a mortgage secured on a primary residence and the Code of Conduct on Mortgage Arrears (CCMA) was introduced to ensure that regulated entities have fair and transparent processes in place for dealing with such cases.

The CCMA sets out the process that entities must follow when a borrower is in or facing difficulties with their mortgage payments and it states that all arrears cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.

There is an obligation on regulated entities to explore all of the options for alternative repayment arrangements (ARAs) offered by that entity, in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances.

Ukraine War

Questions (90)

Brendan Griffin

Question:

90. Deputy Brendan Griffin asked the Minister for Finance if he is satisfied that all Irish-based financial services operations are adhering to financial sanctions imposed against Russia following its invasion of Ukraine; and if he will make a statement on the matter. [21466/23]

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Written answers

Minister for Finance

In response to Russia’s unjustified, illegal invasion of Ukraine, every European Union Member State including Ireland has been obliged to introduce a range of sanctions targeting the Russian economy. These sanctions include freezing assets prohibiting certain transactions and removing Russian banks from the SWIFT messaging system. The frozen assets in question are owned or controlled by the Russian State as well as a range of individuals and entities that are closely aligned to Russia and its war effort.

The aim of such sanctions is to dissuade Russia in its aggression, to withdraw from Ukraine and to undermine the financial and material support which supplies Russia’s armed forces.

Ireland has three competent authorities for all sanctions - the Department of Foreign Affairs, the Department of Enterprise, Trade & Employment and the Central Bank of Ireland. They oversee the different aspects of restrictive measures. In terms of financial sanctions, the Central Bank of Ireland has responsibility for ensuring these measures are implemented.

It is worth noting that there is a legal obligation on all legal and natural persons in the State to comply with sanctions, irrespective of their regulated status. A breach of a financial sanction is a criminal offence. Any person who holds the assets of a sanctioned entity or individual is required to freeze the assets and report such freezing to the Central Bank of Ireland.

For financial sanctions, the Central Bank of Ireland undertakes the following steps to ensure implementation:

• Communicates widely that new sanctions measures have been adopted;

• Maintains records of all frozen assets;

• Assesses applications for derogations from implementation of sanctions, for specific reasons;

• Issues any direction that it deems necessary in order to administer and enforce financial sanctions; and

• Reports any suspected breaches of sanctions, to An Garda Síochána.

Notwithstanding the fact that the Bank’s powers under the Central Bank (Supervision and Enforcement) Act 2013 or Part IIIC of the 1942 Act do not apply to financial sanctions, the Central Bank of Ireland has taken additional measures to support compliance with the Russian sanctions regime. For example, the Central Bank of Ireland maintains a dedicated webpage with information on the recent sanctions imposed on Russia and has also used appropriate social media channels to ensure that it is communicating with as wide an audience as possible.

The Central Bank of Ireland has also written to various representative bodies in the non-regulated sector to alert them to their obligations under the sanctions Regulations and to remind them in particular of the obligation to freeze and report the assets of sanctioned individuals.

Supervisors wrote to firms to notify them of the imposition of the Russia/Ukraine sanctions and provided firms with a link to the Central Bank's dedicated page on Russian sanctions. It was also highlighted that firms need to have robust processes in place to comply fully with their sanctions obligations and mitigate the risk to their businesses posed by the sanctions.

The Central Bank has seen a significant focus on Russia/Ukraine related issues and sanctions compliance in supervisory engagements with obliged entities which are under its supervision and has been proactive in meeting these concerns.

Finally, the Central Bank of Ireland continues to engage with its European counterparts and its regulated entities to ensure that there is strong awareness of the EU sanctions regime and the need for firms to continue to effectively implement all EU sanctions. The Central Bank of Ireland has also written to Russian-linked Special Purpose Entities (SPE) to seek confirmation of their adherence to sanctions.

Question No. 91 answered with Question No. 84.

Tax Reliefs

Questions (92)

Richard Boyd Barrett

Question:

92. Deputy Richard Boyd Barrett asked the Minister for Finance if he is aware of the recent examination of the section 481 film tax credit by the Oireachtas Committee on Budgetary Oversight, and in particular the concerns raised by an organisation (details supplied) about the use of buy-out contracts by producer companies on the intellectual property rights of performers and the issues raised by film crew representatives about the failure of producer companies to vindicate employment rights; and if he will address these concerns through changes to the film credit. [21572/23]

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Written answers

Minister for Finance

I am aware of the Oireachtas Committee on Budgetary Oversight’s recent examination of the section 481 film tax credit, and I understand that the report was published today.

In relation to the intellectual property rights of performers, I would note that copyright law falls within the remit of the Department of the Enterprise, Trade and Employment (DETE). Notwithstanding this, my officials have engaged with the stakeholders concerned, including representative bodies for actors and performers, to gain an understanding of the issue.

Copyright is relevant for many workers in the film sector, including authors, producers and broadcasters in addition to actors, and I have been informed that Screen Ireland has engaged an independent facilitator to meet with key stakeholders to understand the various perspectives of those concerned. Individual stakeholder meetings have been held over the past eight weeks and the next phase will progress to group discussions, and I look forward to the outputs from this process.

In relation to employment rights, the Deputy will be aware that changes were made to the film tax credit to reinforce the requirement to adhere to employment rights legislation. As part of the cultural certification process, an applicant company is required to submit an undertaking of compliance with all relevant employment legislation. This commits applicants to compliance with all relevant employment legislation in relation to the film being certified. These conditions are to be met not just by the producer company but also by the designated activity company for each production.

In relation to any specific workplace disputes, the Workplace Relations Commission (WRC) and the Labour Court are the organs of the State tasked with the resolution of such matters. It is appropriate that any relevant claims should be referred to these bodies for adjudication. I am also aware that significant progress has been made through the introduction of new collective bargaining agreements in the sector, and my officials will continue to monitor progress in this space.

Question No. 93 answered with Question No. 84.

Credit Unions

Questions (94)

Pearse Doherty

Question:

94. Deputy Pearse Doherty asked the Minister for Finance if he is aware that credit unions are no longer issuing debit cards to customers who reside in the North on the grounds that they are no longer residents of the European Economic Area; and if he will make a statement on the matter. [21540/23]

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Written answers

Minister for Finance

I thank the Deputy for his question. As I acknowledged to your colleague Deputy Carthy last week, credit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by the Central Bank, which set out the framework for the registration, regulation and operation of credit unions including detailed governance and prudential requirements.

Credit union current accounts

The 1997 Act and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations) set out the services that credit unions may provide to their members.

Until very recently, credit unions providing current account services have provided these under one of two separate brands – ‘MYCU’ and ‘Current Account from your Credit Union’ - each supported by different service providers. Those credit unions who previously operated under the ‘MYCU’ brand have now moved to the ‘Current Account from your Credit Union’ brand and supporting service providers, including a new card issuer.

The new card issuer is not authorised to issue cards to members of the credit unions who are working in the State but resident in Northern Ireland. This specific matter is relevant to a small number of credit unions and credit union members and is not related to debit cards issued by banks.

It is my understanding that impacted customers have been notified by their credit unions, who have advised them to seek an alternative debit card solution as soon as possible.

More generally, in respect of the provision by EEA financial services firms, including card issuers, of services in the UK, a temporary permissions regime (TPR) was established in the UK by the UK Government to enable relevant EEA firms and funds who were using the passporting regime to transition to the UK full regulatory regime post Brexit.

The TPR will end on 31 December 2023; however relevant firms that wanted to apply for full authorisation in the UK were required to do so by 31 December 2022.

Question No. 95 answered with Question No. 70.

Tax Reliefs

Questions (96)

Alan Dillon

Question:

96. Deputy Alan Dillon asked the Minister for Finance if he intends to expand the rent-a-room scheme; if he is considering additional supports to renters and landlords in the upcoming budget 2024; and if he will make a statement on the matter. [21430/23]

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Written answers

Minister for Finance

The Rent a Room scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation. In accordance with section 216A of the Taxes Consolidation Act 1997, an individual who lets a room or rooms in her or his sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2023. Although the relief applies automatically, the amount of exempt rental income must be included in the individual’s tax return for the year in question.

The upper income threshold of €14,000 would allow an individual to receive income of up to €1,166.66 per month over a 12 month period under the scheme, without it giving rise to a tax liability.

The following table sets out data on the number of taxpayer units availing of the scheme, together with the Exchequer cost of the relief for the years 2016 - 2020 (the latest year for which data are available).

Year	Exchequer Cost €m	Number of taxpayer units
2020	20.7	9,310
2019	22.2	9,810
2018	19.7	9,240
2017	12.0	8,160
2016	9.3	7,350

My Department is not aware of evidence which suggests that the current scheme is insufficient. While there was a reduction in Exchequer cost and number of claimants in 2020, this may be a result of the COVID-19 pandemic.

As the Deputy will appreciate, decisions regarding tax incentives and reliefs, whether in respect of the introduction of new measures or the amendment of existing measures, are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.

Tax reliefs, no matter how worthwhile in themselves, may serve to narrow the tax base and can make general reform of the tax system that much more difficult. While the use of tax measures to retain landlords in the rental market, or increase supply may be well-intentioned, Ireland’s history shows the issue of property-based tax expenditures should be approached with caution.

With that said, my Department continues to monitor all aspects of the property market, and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.

Tax Yield

Questions (97)

Willie O'Dea

Question:

97. Deputy Willie O'Dea asked the Minister for Finance his estimate for corporation tax receipts in 2023; the proportion of tax revenues that corporation tax receipts will comprise in 2023; the proportion of corporation tax receipts he estimates as windfall; and if he will make a statement on the matter. [21490/23]

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Written answers

Minister for Finance

My Department set out its spring economic and fiscal forecasts in the Government's Stability Programme Update that was published in April.

Corporation tax receipts are projected at €24.3 billion this year, which would amount to 27 per cent of the total projected tax-take for 2023.

My Department estimates that almost €12 billion, or approximately half, of corporation tax receipts is ‘windfall’ in nature. My Department has signalled a more appropriate fiscal measure - GGB* - which is the headline general government balance excluding windfall tax receipts. On this basis, an underlying deficit of €1.8 billion is in prospect for this year .

It is crucial that ‘windfall’ corporation tax receipts are not used to fund permanent expenditure. This is why the Government transferred €6 billion to the National Reserve Fund over the last year.

The Government has repeatedly warned that it would be inappropriate to build up permanent fiscal commitments on the basis of transitory, windfall revenues. Accordingly it is my intention to establish a longer-term savings fund, capitalised by these windfall receipts. The monies will be drawn-down at some stage over the next decade (the 2030s onwards) inter alia to partly finance the budgetary costs associated with an ageing population.

Mortgage Interest Rates

Questions (98)

Pádraig O'Sullivan

Question:

98. Deputy Pádraig O'Sullivan asked the Minister for Finance the steps he is taking to reduce the impact of interest rate rises on persons whose home loans rest with a non-pillar bank or vulture fund; and if he will make a statement on the matter. [21434/23]

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Written answers

Minister for Finance

Research has indicated that there is potential for existing mortgage holders to make mortgage savings by switching their mortgage. This is a particularly important consideration at a time of rising interest rates.

I have met with the CEOs of the retail banks and with a number of non-bank lenders where I emphasised that they should take a consumer focused approach to encourage switching where possible. I have also asked the Banking and Payments Federation to develop a campaign to ensure consumers are aware of the supports available.

On behalf of my Department, the Economic and Social Research Institute (ESRI) is currently carrying out work which will inform the development of tools to promote switching. However the ESRI’s work also serves to highlight consumer inertia as a critical issue which deserves further attention.

The Competition and Consumer Protection Commission (CCPC) and Money Advice and Budgeting Service (MABS) also play an important role in informing consumers about the options available to them. It is a priority for me to ensure that the regulatory framework supports borrowers in the mortgage switching process. In the context of the review of the Consumer Protection Code, I have indicated that the Central Bank should further review the existing regulatory provisions and consider whether more dedicated mortgage switching resources, such as a standalone mortgage switching code, could better encourage and facilitate switching in the mortgage market.

In that context and the rise in the cost of living more generally, the Central Bank wrote to all regulated firms last November to set out its expectations on how regulated firms should support their customers.

With respect to mortgages, the Central Bank is especially focused on ensuring that firms have the resources and arrangements in place to assess applications from existing and new or switching borrowers in a manner that is timely and based on prudent lending standards applied consistently across all applicants.

The Central Bank is scrutinizing the switching and lending activity of the retail banks to ensure there is no discrimination based on who a borrower's current creditor is and it has confirmed that the work identified no evidence to date of such discrimination.

Question No. 99 answered with Question No. 84.

Tax Reliefs

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Written answers

Minister for Finance

I propose to take Questions Nos. 100, 103, 105, 113 and 115 together.

The Help to Buy Incentive, announced in Budget 2017, is an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. With a view to increasing the supply of new housing and stimulating demand, the relief is only available in respect of ‘new builds’.

In the July 2020 Stimulus Plan, the scheme was amended so that the level of support available to first time buyers was increased to the lesser of:

• €30,000 (increased from €20,000);

• 10 per cent (increased from 5 per cent) of the purchase price of a new home / self-build property, or,

• the amount of Income Tax and DIRT paid in the four years before the purchase or self-build. The scheme was extended in its enhanced form in Budget 2021.

Help-to-Buy was extended in Finance Act 2022 for a further two years to end of 2024. This approach took account of the need for certainty in the market pending an increase in new housing supply envisaged in Housing for All and is in line with a recommendation of the independent review of the scheme completed July 2022 and takes.

Applications for Help to Buy may be made on a provisional basis as first-time buyers seek to clarify their entitlements in advance of commencing the purchase of a property. An application will only progress to the “claim” stage if and when the applicant decides to purchase a property that is eligible for the scheme. It is at the "claim stage" that the property address details become available.

To end April 2023, 39,657 HTB claims had been made, of which 38,924 had been approved. The estimated total value of approved HTB claims to date is in the order of €786.3 million and the total value of approved and pending HTB claims to date is in the order of €799.6 million,

In relation to Deputy Burke's question, I am advised that Cork has accounted for 5,050 Help to Buy claims since the scheme's inception in 2016. Claims in this instance relates claims made by tax-payer units which includes both individual tax-payers and those (married couples and civil partners) who share tax credits.

Any extension of the scheme beyond its current sunset date of 31 December 2024 will fall to be considered by Government as part of the Budget and Finance Bill process at the appropriate time.

In relation to the other questions, where the actual relief allowed is less than €20,000 I am advised by Revenue that it is not possible in the available data to classify claims as being subject to the enhanced HTB scheme, as their relief allowed may have been limited by their Income Tax and DIRT paid, rather than the percentage of the purchase price. However, it is possible to identify those claims where the cost to the Exchequer was impacted by the Enhanced HTB Scheme, that is, the relief allowed is greater than 5% of the purchase price/approved valuation. The table below sets out the approximate number of claims and the amounts claimed, broken down by County, of all claims where the relief exceeded €20,000, or exceeded more than 5% of the purchase price/approved valuation.

County	Number of Claims for Enhanced HTB that resulted in additional cost to the Exchequer	Relief Allowed €m
Carlow	180	4.4
Cavan	180	4.3
Clare	300	8.1
Cork	2,560	71.1
Donegal	340	7.9
Dublin	2,800	80.8
Galway	910	24.7
Kerry	230	5.8
Kildare	2,570	72.7
Kilkenny	300	8
Laois	450	11.5
Leitrim	50	1.2
Limerick	540	15
Longford	50	1.3
Louth	720	18.6
Mayo	380	9.6
Meath	1,850	50.7
Monaghan	190	4.9
Offaly	330	8.6
Roscommon	150	3.9
Sligo	160	3.9
Tipperary	290	7.4
Waterford	450	11.5
Westmeath	250	6.7
Wexford	620	15.8
Wicklow	710	20
Total	17,530	478.4

Question No. 101 answered with Question No. 82.

Tax Rebates

Questions (102)

Aindrias Moynihan

Question:

102. Deputy Aindrias Moynihan asked the Minister for Finance the amount yet to be reclaimed in PAYE overpayments collected by the Revenue Commissioners for 2022; the number of individuals yet to make an application under the rent relief scheme through Revenue for 2022; and if he will make a statement on the matter. [21497/23]

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Written answers

Minister for Finance

I am advised by Revenue that over 810,000 PAYE employees have submitted tax returns in respect of 2022 in the first quarter of this year. Of these, just over 650,000 have received a refund of tax. Revenue has to date refunded €453 million to PAYE taxpayers in respect of 2022, which represents just over 9% of the tax paid by these taxpayers. Where an income tax return is not completed, Revenue may not be aware of any additional credits or reliefs due to the taxpayer or additional incomes that are not taxed through the PAYE system. Therefore, it is not possible to provide the final details on the amount of overpaid or underpaid tax as individual taxpayer circumstances differ. A Preliminary End of Year Statement is made available to PAYE taxpayers through the myAccount service after the end of each tax year. This statement sets out each taxpayer’s provisional tax position for that tax year, based on the information available on Revenue records.

Revenue also advises that 1,910,100 PAYE taxpayers have yet to file a 2022 Income Tax return. The analysis for those PAYE taxpayers yet to file shows that 1,239,400 (65%) taxpayers had a balanced tax position, 252,300 (13%) taxpayers potentially underpaid tax to an amount of €95m and 418,400 (22%) taxpayers potentially overpaid tax to an amount of €286m.

Regarding the question on the number of individuals yet to make an application under the rent relief scheme through Revenue for 2022, I assume that the Deputy is referring to the Rent Tax Credit provided for in section 473B of the Taxes Consolidation Act 1997.

Claims for the Rent Tax Credit in respect of the 2022 year of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. The statistics currently available on the Rent Tax Credit refer only to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to-date. Data on claims by self-assessed taxpayers for 2022 is not yet available as these taxpayers’ returns are generally submitted later in the year due to the statutory filing date for such tax returns is 31 October 2023.

According to Revenue's published statistics, up to and including 20 April 2023, over 226,000 Rent Tax Credit claims had been made by over 209,000 taxpayer units in respect of the tax years 2022 and 2023. Of these, 202,522 taxpayer units made claims in respect of 2022.

Rent Tax Credit claims made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment. Claims for the Rent Tax Credit for 2022 can only be quantified when a taxpayer unit submits their Income Tax return at the end of the year. For this reason, it is not possible to provide the Deputy with an estimate of the number of individuals yet to make a claim for the Rent Tax Credit for the 2022 tax year.

However, during the Budget 2023 process it was estimated that there were 400,000 persons eligible to claim the credit in 2022. The estimate assumed that, for each given year, every person entitled to the credit would apply for it. I would note though that tax refunds can be requested within four years after the end of the tax year to which the claim relates, so it is possible that eligible persons may not claim the Rent Tax Credit in respect of 2022 until 2026, if at all.

Further information and statistics in relation to PAYE Income Tax returns and credits claimed are available on Revenue’s website: www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/peoys.aspx