Tuesday, 13 Jun 2023

Written Answers Nos. 362-381

Tax Yield

Questions (362)

Peadar Tóibín

Question:

362. Deputy Peadar Tóibín asked the Minister for Finance the amount that has been collected in the NORA levy, excise duty, carbon tax, and VAT on fuel in the past five years, in tabular form. [27391/23]

Written answers

Minister for Finance

I am advised by Revenue that a breakdown of excise receipts for 2021 and prior years is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx

In relation to VAT, I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on all fuel and energy related products and services using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated can be provided.

The total excise tax receipts for Mineral Oil Tax (MOT) and the estimated VAT receipts in respect of fuel for the past five years and the year to date are provided in the table below.

Revenue does not hold data relating to the NORA levy which is administered by the National Oil Reserves Agency.

Year	MOTNon-Carbon Component	MOT Carbon Component	Estimated VAT	Total
€m	€m	€m	€m
2023*	565	326	274**	1,165
2022	1,551	670	921	3,142
2021	1,926	541	685	3,152
2020	1,815	405	561	2,781
2019	2,164	360	689	3,213
2018	2,163	356	714	3,233

* Provisional YTD May receipts

** VAT 2023 is estimated to end of April 2023

Tax Reliefs

Questions (363)

Eoin Ó Broin

Question:

363. Deputy Eoin Ó Broin asked the Minister for Finance the number of rental properties that have availed of the tax incentive for small-scale landlords who undertake retrofitting works. [27462/23]

Written answers

Minister for Finance

A new tax incentive was introduced in Finance Act 2022 for small-scale landlords who undertake retrofitting works while the tenant remains in situ, which has the aim of attracting and retaining small-scale landlords in the private rental sector. This measure is provided for in section 97B of the Taxes Consolidation Act 1997.

The provision is intended to provide for a deduction of certain retrofitting expenses incurred by landlords on rented residential properties in calculating their Case V rental profits. The expenses that qualify for deduction are those in respect of which the landlord has received a home energy grant from the Sustainable Energy Authority of Ireland (SEAI). It should be noted that the expenses incurred must be in respect of the period 1 January 2023 to 31 December 2025. Furthermore, the maximum amount of tax deduction that can be claimed is the lesser of the qualifying expenditure incurred or €10,000 and a landlord is only entitled to claim the relief on a maximum of two of his/her rental properties.

The deduction operates in the same manner as any other permitted rental deductions. However, unlike other rental expenses, it will not be deducted for the year in which it is incurred. Instead, the deduction will be claimed against the rental income of the year following that in which the expense was incurred. For example, expenses incurred on retrofitting works in 2023 should be included in calculating rental profits for 2024 and may be claimed by a landlord on their income tax return for that year. As such, relief under this measure will be claimed for the first time in 2025, in respect of the 2024 tax year.

Income tax returns for 2024 are not due until Q4 2025 and as such, Revenue has advised me that it is not currently possible to provide information on the take-up of the deduction for retrofitting expenditure.

Tax Data

Questions (364)

Catherine Murphy

Question:

364. Deputy Catherine Murphy asked the Minister for Finance the number of homes acquired under the help-to-buy scheme since its introduction, by the number of homes per local authority, in tabular form. [27557/23]

Written answers

Minister for Finance

Help to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act 1997.

Since inception of the scheme to 31 May 2023, 40,411 HTB claims have been made, of which 39,615 are approved.

I am advised by Revenue that, while HTB claimants are required to give details of the county in which the relevant property is located, they are not required to declare the specific local authority area. Therefore, Revenue does not have data from which to provide a breakdown by local authority area.The following table sets out the number of claims by county in the period from the inception of the scheme to 31 May 2023.

County	Number of Claims
Carlow	391
Cavan	396
Clare	684
Cork	5,168
Donegal	698
Dublin	8,919
Galway	1,956
Kerry	527
Kildare	4,968
Kilkenny	608
Laois	834
Leitrim	111
Limerick	1,265
Longford	153
Louth	1,508
Mayo	823
Meath	4,598
Monaghan	425
Offaly	576
Roscommon	357
Sligo	332
Tipperary	676
Waterford	1,000
Westmeath	549
Wexford	1,207
Wicklow	1,682
Total	40,411

I am advised by Revenue that annual statistics on the Help to Buy (HTB) scheme are available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-yearly.aspx.

In addition to this, monthly statistics are also available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx with the latest available data to end May 2023.

Departmental Schemes

Questions (365)

James Lawless

Question:

365. Deputy James Lawless asked the Minister for Finance if the case of a person (details supplied) will be examined; and if he will make a statement on the matter. [27572/23]

Written answers

Minister for Finance

Finance Act 2022 (as amended) makes provision for the Temporary Business Energy Support Scheme (TBESS). The scheme provides support to qualifying businesses in respect of increases in their electricity or natural gas costs. The TBESS is available to eligible 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. Businesses which are eligible for the TBESS can register for the scheme via Revenue’s e-Registration facility on Revenue’s Online Service (ROS) and can submit claims through the e-Repayments facility on ROS.

I am advised by Revenue there was no technical issue with the ROS system as mentioned in the details supplied. Revenue first received a query by telephone on 30 January 2023, when the director of the identified business was advised by a Revenue official that January and February 2022 bill details were required to be submitted on ROS before a claim could progress. On the same date, the business submitted a TBESS claim on ROS. On 4 March 2023, a Revenue official contacted the business by email in relation to their claim. The business had input the incorrect financial details on ROS which resulted in Revenue rejecting the claim. The business was directed to the guide ‘Understanding your Bill’ available on the Revenue website with a request to resubmit the claim with the correct details.

I am advised Revenue then received a query through Revenue’s My Enquiries portal from the business on 31 May 2023, which they responded to on the same day setting out the steps required by the business to proceed with their claim through ROS. I am also advised a Revenue official contacted the director of the identified business by telephone on 2 June 2023, advising of the requirement to update their reference period details on ROS in advance of submitting a claim. The director advised he had not checked his ROS messages and would follow up over the coming days. Revenue has advised the business has commenced a claim submission on 7 June 2023, and a Revenue official will make direct contact with the business to see if any further assistance is needed. I want to assure the Deputy there are no technical glitches in the system as is evidenced by well over 40,000 claims successfully processed.

I am advised by Revenue, that comprehensive guidelines on the operation of the scheme are available on the Revenue website at: www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf

Tax Reliefs

Questions (366)

Claire Kerrane

Question:

366. Deputy Claire Kerrane asked the Minister for Finance the full-year cost of extending consanguinity relief and acceleration of wear and tear allowances for farm safety equipment relief in 2024; and if he will make a statement on the matter. [27585/23]

Written answers

Minister for Finance

Consanguinity relief is a long-standing stamp duty relief which is available only in respect of farmland. It serves to reduce the stamp duty rate applicable to the acquisition of farmland by qualifying individuals from the current standard rate on non-residential property of 7.5 per cent to 1 per cent. It was last extended (by three years) in Finance Act 2020, so is currently due to expire at the end of 2023.

The purpose of the relief is to facilitate and encourage inter-generational farm transfers in line with both Government and EU policy.

Under the primary (but not sole) condition for claiming this relief, you must:

• be related to the transferor; and

• farm the land for at least six years or lease it for a minimum of six years to someone who will farm it.

I am advised by Revenue that the cost of consanguinity relief is published in the Cost of Tax Expenditures report on the Revenue website at:

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf. The cost of extending the relief is estimated to be in the region of the cost for the latest published year, 2022 - that is €52.5m.

The acceleration of wear and tear allowances for farm safety equipment is provided for under Section 285D Taxes Consolidation Act 1997 (TCA). Introduced with effect from 1 January 2021, this scheme is currently due to expire on 31 December 2023. Subject to certification of eligible expenditure by the Minister for Agriculture, Food and the Marine, the scheme allows persons carrying on a trade of farming to claim wear and tear allowances on such expenditure over a period of two instead of eight years, subject to a maximum tax benefit of €500,000 per undertaking.

This scheme of accelerated capital allowances is aimed at incentivising the purchase of farm safety equipment and the replacement of equipment that may be old or sub-standard as well as assisting farmers who have a disability to continue work through the purchase of certain adaptive equipment. The farm safety equipment which qualifies is set out in a table in Part 2 of Schedule 35 TCA.

An overall annual budget of €5 million (excluding VAT) applies to this scheme, meaning that in any one year, the cumulative expenditure on equipment which qualifies for the relief is restricted to that amount, as tracked by the Department of Agriculture, Food and the Marine.

I am advised by Revenue that claims in respect of this accelerated tax relief were included for the first time on the 2021 Income Tax return and on the 2022 Corporation Tax return respectively. As the majority of the 2022 Corporation Tax returns are not due until later this year and will not be fully analysed until after that time, Revenue further advise that the data are not yet available to provide an accurate estimate the full-year cost of extending this measure into 2024.

However, at the time of Finance Bill 2020, my Department estimated that the measure would have a maximum up-front tax cost of €1.5 million per annum although the net cost over eight years would be closer to neutral.

Tax Exemptions

Questions (367)

Patrick Costello

Question:

367. Deputy Patrick Costello asked the Minister for Finance if he will raise the tax exemption on income up to €200 per year received by domestic micro-generators; and if he will make a statement on the matter. [27611/23]

Written answers

Minister for Finance

Micro-generation of electricity is the small-scale production of electricity by consumers who generate electricity at their own homes for their own consumption and sell the excess electricity produced.

Section 216D into the Taxes Consolidation Act 1997 provides for an exemption of up to €200 from income tax, USC and PRSI for certain profits arising to a qualifying individual who generates energy from renewable, sustainable or alternative energy sources for their own consumption. The profits which are exempted are those from the generation of residual electricity at an individual’s qualifying residence from 1 January 2022 until 31 December 2024.Any income in excess of this €200 which is earned from micro-generated electricity must be declared by the individual on their annual tax return and will be subject to income tax, USC and PRSI in the usual manner.

The exemption is available to any individual who is the electricity bill payer, and who resides in the property. If there are two or more people named on the electricity bill, each person may avail of the €200 exemption.The aim of the tax exemption is to remove the potential administrative barrier that could be created by the declaration and payment of tax on a relatively modest amount of income earned from the micro-generation of electricity from renewable, sustainable or alternative forms of energy. The €200 disregard was set to ensure that the majority of domestic renewables self-consumers, who typically have an installation of below 6kW, will pay no tax on income from this source. It is not intended to act as a financial incentive in and of itself.

With regards to income, it is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. Ireland has a progressive income tax system which is structured such that the more income you have, the more tax you pay. As a person’s income increases they move up through the various rates and bands and, as a result, while the levels of net pay increase overall, the amount of tax they pay also increases.

While decisions regarding taxation measures are usually made in the context of the annual Budget and Finance Bill process, I currently do not have any plans to increase the amount of the disregard.

Tax Reliefs

Questions (368)

Mairéad Farrell

Question:

368. Deputy Mairéad Farrell asked the Minister for Finance the estimated cost of providing an income tax relief at a rate of €2,000, €3,000 and €4,000 for those tutors training craft apprentices in the education training boards, in tabular form; and if he will make a statement on the matter. [27613/23]

Written answers

Minister for Finance

Revenue do not have information specifying the number of tutors training craft apprentices in the education training boards or the income levels of those tutors. As such, I am advised that it is not possible for Revenue to provide an estimate the cost of providing an income tax relief to such tutors.

Tax Yield

Questions (369)

Kathleen Funchion

Question:

369. Deputy Kathleen Funchion asked the Minister for Finance the estimated yield if the top four local property tax rates all increased by 30% based on 2022 figures. [27621/23]

Written answers

Minister for Finance

It is assumed that the Deputy is referring to increasing the rate of Local Property Tax (LPT) by 30% for all properties valued above €1,487,500, i.e., the 30% increase applies in the four highest categories of property subject to LPT.

I am advised by Revenue that the estimated yield from the proposal in question would be in the region of €8 million.

Departmental Communications

Questions (370)

Holly Cairns

Question:

370. Deputy Holly Cairns asked the Minister for Finance the percentage of social media videos posted on each of his Departmental social media accounts, or the social media accounts of public bodies and agencies that operate under his remit, that included closed captioning/subtitling between 1 May 2022 and 30 April 2023, inclusive; and the percentage of same that feature translations into Irish or another language; and if he will make a statement on the matter. [27655/23]

Written answers

Minister for Finance

I wish to advise the Deputy that of the social media videos posted by my Department during the timeframe specified, 75% included closed captioning/subtitles and none featured translations into Irish or another language.

Those bodies under the aegis of my Department with social media accounts have advised as follows:

100% of the videos posted on social media by the Central Bank of Ireland included closed captioning/subtitles and 20% featured translations into Irish or another language. The Bank can provide captioned versions of all its videos, as well as downloadable transcripts on its website, centralbank.ie.

While 100% of the videos posted on social media by the Financial Services and Pensions Ombudsman included closed captioning/subtitles, none featured translations into Irish or another language.

In respect of Home Building Finance Ireland, 80% of the videos posted on social media included closed captioning/subtitles; none featured translations into Irish or another language.

100% of the videos posted by the Irish Fiscal Advisory Council on its social media account included closed captioning/subtitles. All posts can be translated, providing web browser translator tool is enabled and the user has translation services enabled within social media platform(s).

81% of the videos posted on social media by the National Treasury Management Agency included closed captioning/subtitles and none featured translations into Irish or another language.

100% of the videos posted on social media by the Office of the Comptroller and Auditor General included closed captioning/subtitles and 33% featured translations into Irish or another language.

88% of the videos posted on social media by the Office of the Revenue Commissioners included closed captioning/subtitles and none featured translations into Irish or another language.

100% of social media videos posted by the Strategic Banking Corporation of Ireland on its social media account included closed captioning/subtitles and none featured translations into Irish or another language.

Departmental Policies

Questions (371)

Holly Cairns

Question:

371. Deputy Holly Cairns asked the Minister for Finance if his Department, and public bodies and agencies under his remit, have an anti-racism policy which can be accessed by the public; and if he will make a statement on the matter. [27673/23]

Written answers

Minister for Finance

My Department and the bodies under its aegis do not have stand-alone anti-racism policies which can be accessed by the public.

My Department operates under the ‘Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service’, which was developed in partnership between the Civil Service Management and Staff Unions, and is publicly available. This policy, which applies to staff of my Department, aims to promote respect, dignity, safety and equality in the workplace. Along with the Civil Service Code of Standards and Behaviour, all new entrants to my Department are provided with a copy of the Dignity at Work Policy and it is also brought to the attention of staff during the induction programme.

My Department held Diversity 3.0 training for staff in 2021 and in 2022 as part of a follow up to Unconscious Bias Training held in 2019. The Diversity 3.0 is a training programme to assist staff in recognising their biases and assist in the promotion of equality, it was attended by the majority of staff. OneLearning, the Civil Service’s Learning and Development platform, offers two courses in contribution to Unconscious Bias training; these are Equality and Human Rights: Understanding your Role (Level 1) and Equality and Human Rights in the Public Service.

In line with the National Action Plan against Racism 2023-2027, my Department will review further training in this regard in due course. In addition, my Department fully adheres to its obligations under relevant legislation including the Employment Equality Acts 1998-2015 and the Irish Human Rights and Equality Commission Act 2014.

The Central Bank of Ireland is committed to creating a diverse and inclusive workplace where all the Bank’s people are respected, valued and can thrive to reach their full potential. The Bank has a well-established commitment to diversity and inclusion (D&I) that includes a D&I vision and a published D&I Strategy 2022-2026, aligned with the Bank’s organisational strategy and delivered via annual action plans. All key diversity and inclusion documentation can be accessed by the public at: /www.centralbank.ie/careers/diversity-inclusion. Furthermore, the Bank’s Dignity at Work Policy and active commitment to and reporting on its responsibility to promote equality, prevent discrimination and protect human rights under Public Sector Equality and Human Rights Duty are reflective of the Bank’s commitment to creating an inclusive environment which is free from discrimination including racism.

The Central Bank provides support services, including staffing, to the Investor Compensation Company (ICC) DAC. It shares the Bank’s office space, and therefore the Bank’s policies, are applicable to the ICC.

Staff at the Credit Review Office (CRO) are seconded from Enterprise Ireland (EI) and the CRO is based in an EI building. As such, EI policies are directly applicable to CRO staff.

The Financial Services and Pensions Ombudsman (FSPO) operates a Customer Charter and Customer Action Plan, which sets out the standards of service that customers can expect when engaging with its services. In addition, the FSPO has adopted the Civil Service ‘Dignity at Work’ Policy. It’s People Strategy 2022-2025, Developing our People, Building our Capability , places an emphasis on creating a positive, engaging and inclusive employee experience and commits to establishing a Diversity, Equality and Inclusion Policy and working group to develop programmes to cultivate inclusivity over the lifetime of the strategy. Training is also provided to all team members on equality and diversity matters, as part of its fulfilment of the Public Sector Equality and Human Rights Duty.

The Irish Fiscal Advisory Council is cognisant of the requirement of equal opportunities, equality of participation and adherence to the Irish Civil Service ‘Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service’ . An Employee Handbook and HR Manual is in place and adheres to the ‘Dignity at Work’ Policy. Its Recruitment Policy and Procedures outlines equality of opportunity at the Fiscal Council.

Training on Unconscious Bias, Inclusion and Diversity is available to all members of the Irish Financial Services Appeals Tribunal.

The National Treasury Management Agency (NTMA) has a Workplace Equality Policy and a Dignity and Respect Policy in place. In 2017, the NTMA designed and delivered Unconscious Bias training for all of its employees, and since 2018, all new employees attend Unconscious Bias training as part of their new joiner Induction Programme. Home Building Finance Ireland, the Strategic Banking Corporation of Ireland and the National Asset Management Agency are also under the remit of my Department. As the NTMA staff assigns staff to these bodies, staff-related policies in place in the NTMA are directly applicable to those organisations.

The Office of the Comptroller and Auditor General operates under the framework of civil service policies and procedures including a ‘Dignity at Work’ Policy which is an anti-bullying, harassment and sexual harassment policy for the Irish civil service, and as indicated above, is publicly accessible.

The Office of the Revenue operates a ‘Dignity at Work’ policy in line with its obligations under the Employment Equality Legislation. Revenue is cognisant of its responsibilities in line with its Public Sector Equality and Human Rights Duty , its statutory obligation to eliminate discrimination, promote equality, and protect the human rights of staff and customers. These policies are set out in Revenue’s Customer Service Charter and Revenue’s Employee Engagement Charter. Revenue also has a steadfast commitment to the principles of Equality, Diversity and Inclusivity that reflects the cultural and demographic complexity of those it serves and in ensuring a progressive and fair workplace for all its staff.

The assurance of equality is incorporated in the Quality Customer Service policy of the Tax Appeals Commission, which is accessible to members of the public through its website. The Commission adheres to the Constitution of Ireland and the Charter of Fundamental Rights of the European Union, which ensures that everyone is equal before the law. It also adheres to the ‘Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service’ . In addition, in accordance with Article 5.5 of the National Action Plan Against Racism, staff at the Tax Appeals Commission have attended compulsory training courses in relation to unconscious bias.

The Credit Union Advisory Committee is an advisory committee set up to advise the Minister for Finance in relation to credit union matters. It meets on a monthly basis in my Department, with Department officials providing a secretariat function. The Credit Union Restructuring Board concluded its restructuring work on 31 March 2017. It was operationally wound down on 31 July 2017 and is awaiting final dissolution.

Banking Sector

Questions (372)

Holly Cairns

Question:

372. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to address the larger transaction charges imposed on SMEs, especially in hospitality and retail, by the banking sector; and if he will make a statement on the matter. [27736/23]

Written answers

Minister for Finance

The merchant service charge is the fee charged by an acquirer to a retailer for processing card transactions. All acquirers in Ireland are independent commercial entities and the amount of the merchant service charge varies, often depending on the volume of card transactions the retailer accepts.

One aspect of the merchant service charge is the interchange fee which is charged by card issuing banks to retailers for accepting card payments. Since 2015, interchange fees on consumer debit and credit cards have been capped. Under the Interchange Fee Regulation Ireland set the maximum interchange fee at 0.1% of the value of transactions for domestic consumer debit cards and 0.3% of the value of transactions for consumer credit cards. However, the Interchange Fee Regulation does not cover commercial debit and credit cards.

While regulated entities must comply with the rules regarding interchange fees, the merchant service charge is a commercial decision for each service provider. Acquiring services is a competitive market and retailers in general, and smaller retailers in particular, could stand to benefit from lower rates by switching provider

Tax Code

Questions (373)

Holly Cairns

Question:

373. Deputy Holly Cairns asked the Minister for Finance his views on adjusting the capital acquisitions tax thresholds for individuals without children to assign a relative or relatives from Group B - a brother, sister, niece, nephew or lineal ancestor or lineal descendant of the disponer as a primary beneficiary who is treated the same as a child for the purposes of the capital acquisitions tax; and if he will make a statement on the matter. [27737/23]

Written answers

Minister for Finance

For capital acquisitions tax (CAT) purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group threshold, CAT at a rate of 33% applies on the excess. There are three Group thresholds:

• the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer;

• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;

• the Group C threshold (currently €16,250) applies in all other cases.

The Group thresholds do not apply to gifts and inheritances between spouses / civil partners, which are exempt from CAT.

Accordingly, where a person gives an inheritance to a person who was his or her next of kin, but that person was not their child (including adopted child, stepchild and certain foster children), spouse or civil partner, either the Group B threshold of €32,500 or the Group C threshold of €16,250 will apply. CAT will be payable by the beneficiary at a rate of 33%, to the extent that the benefit received, when aggregated with any prior gift or inheritance received since 5 December 1991, exceeds the applicable Group threshold.

However, where a person leaves the family home to his or her next of kin, the beneficiary may be in a position to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the deceased person’s principal private residence at the date of death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. The beneficiary must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.

Where the beneficiary was the disponer’s niece or nephew, the niece or nephew may qualify for 'favourite niece' or 'favourite nephew' relief in respect of gifts or inheritances of business assets. The relief allows a niece or nephew who qualifies for the relief to avail of the Group A threshold. Qualifying nieces or nephews are those who have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer. For the nephew or niece to be deemed to be working substantially on a full-time basis in the business he or she must work:

• more than 24 hours per week at the place where the business, trade or profession is carried on; or

• more than 15 hours per week at the place where the business, trade or profession is carried on exclusively by the disponer, any spouse or civil partner of the disponer and the nephew or niece.

The options available for providing increases to CAT thresholds are considered in the context of available resources as part of the annual budgetary process and like all matters need to be balanced against competing demands.

Furthermore, changes to the CAT group thresholds come at a cost to the exchequer. Recent Revenue estimates indicate that the cost of increasing the Group B and Group C thresholds, to align with the Group A threshold, would be €254m and €77m respectively.

Question No. 374 answered with Question No. 331.

Question No. 375 answered with Question No. 331.

Question No. 376 answered with Question No. 331.

Question No. 377 answered with Question No. 331.

Tax Exemptions

Questions (378)

Mark Ward

Question:

378. Deputy Mark Ward asked the Minister for Finance if counsellors, psychotherapists and psychologists are registered under CORU, that they would be eligible for VAT exemptions; and if he will make a statement on the matter. [27894/23]

Written answers

Minister for Finance

I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

Psychologists are listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

Tax Code

Questions (379, 385)

Bríd Smith

Question:

379. Deputy Bríd Smith asked the Minister for Finance if he can clarify (details supplied) in relation to the residential zoned land tax. [27918/23]

Patrick Costello

Question:

385. Deputy Patrick Costello asked the Minister for Finance if he will instruct local authorities to delist light industrial manufacturing sites (details supplied) from the residential zoned land tax in a similar way to farmland; and if he will make a statement on the matter. [28058/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 379 and 385 together.

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 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 disagreed with the determination they had the opportunity to 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.

Officials in the Department of Finance and Department of Housing, Local Government and Heritage continue to engaged with industry representatives, including those from the agricultural industry, with regard to consideration of their concerns about the residential zoned land tax.

In relation to the specific query regarding a residential zoning of a building in industrial use, I have been informed by the Department of Housing, Local Government and Heritage that zoning of land for particular purposes such as residential, mixed use, amenity, commercial/industrial or other uses within a development plan is solely a matter for each local authority. Decisions on whether to amend zonings as a result of submissions made under Section 653I of the Taxes Consolidation Act 1997 or at any other time in order to remove land from the scope of the tax are a matter for each relevant local authority, taking into account the need to ensure that housing supply targets across the city or county can be met.

I am further informed by the Department of Housing, Local Government and Heritage that provision is made in the Planning and Development Act 2000 for elected members to request the Chief Executive, in certain circumstances, to commence a process to amend a development plan zoning.

State Assets

Questions (380)

Catherine Murphy

Question:

380. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of his and the Central Bank's investment assets and value to the end of Q1 2023; and if he will provide a schedule of disposed investment assets and revenue for same in the past ten years to date. [27953/23]

Written answers

Minister for Finance

The Deputy will find below information on the State's shareholding in the domestic retail banks, the investment assets held by the Ireland Strategic Investment Fund, and the investment assets held by the Central Bank of Ireland, together with information on where more detail on these assets is published.

Shareholding in Domestic Banks

The total recapitalisation of the domestic banks amounted to €64.1bn, of which €34.7bn was invested in Anglo Irish Bank and INBS (IBRC) and €29.4bn in AIB, BOI and PTSB. To date, €21.6bn of the investment in the three remaining banks has been recovered in cash by way of disposals, investment income and liability guarantee fees.

As part of this activity, the State has fully disposed of its investment in BOI. The remaining investments in AIB and PTSB are currently valued at c. €6bn (end Q1 2023 value was €6.26bn) leaving a shortfall of c. €1.4bn. The investment in IBRC is largely a sunk cost with a net €1.1bn recovered to date.

A breakdown of the proceeds from disposals and the income from the State’s investments in the three banks since 2013 is found below (a further €4.6bn was recovered pre-2013):

Repaid Capital	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total €m
Sale / redemption proceeds	4,446		2,417	1,760	3,434				249	1,643	270	14,219
Investment income - including dividends	388	200	440	-	250	249	352			88	91	2,058
CIFS/ELG -net	421	155	53	41	8							678
Total	5,255	355	2,910	1,801	3,692	249	352	-	249	1,731	361	16,955

The long-standing policy of the Government is to return the three remaining banks to private ownership, while achieving value for the taxpayer. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector.

Ireland Strategic Investment Fund

Information relating to the Ireland Strategic Investment Fund (ISIF), including all investment assets, is published annually in the National Treasury Management Agency’s financial statements. I am advised that financial statements for the year ended December 2022 will be published shortly.

ISIF also publishes a half-yearly report and its Asset Allocation as at 30 June 2022* is set out below

Asset Allocation
Cash & Equivalent	€1.0BN
Fixed Income	€1.9BN
Real Assets	€1.1BN
Absolute Return	€1.4BN
Equity	€3.6BN
Total Diversified Portfolio	€9.0BN

For the Deputy’s information, the annual and half-yearly reports, which include further detail on the ISIF investment portfolio are available at: www.ntma.ie/publications.

Central Bank of Ireland

The Central Bank provides information on its investment assets on its website (www.centralbank.ie/monetary-policy/management-of-investment-assets). The Bank does not, however, publish a breakdown of individual investments, nor specify each investment which it acquired or disposed of during the year.

* Note: Figures for ISIF are as at 30 June 2022 and are preliminary and unaudited. Figures may not total due to rounding

Departmental Expenditure

Questions (381)

Rose Conway-Walsh

Question:

381. Deputy Rose Conway-Walsh asked the Minister for Finance the total spend on consulting services and on ‘business-as-usual’ outsourcing, as differentiated under the Code of ‘Practice for the Governance of State Bodies 2016’ for each non-commercial public body under the aegis of his Department for the year 2022. [27962/23]

Written answers

Minister for Finance

The Code of Practice for the Governance of State Bodies 2016, Business and Financial Reporting Requirements provides that “State bodies should disclose details of expenditure on external consultancy/adviser fees in their annual report and/or financial statements for each accounting year for each entity”.

The Code states that for the purpose of disclosure in financial statements/annual report, ‘consultancy fees’ means fees paid to external parties providing advisory services of any nature. The 2017 Guide to the Implications for the Annual Financial Statements and the Annual Report defines consultancy as "where a person, organization or group thereof is engaged to provide intellectual or knowledge-based services (e.g. expert analysis and advice) through delivering reports, studies, assessments, recommendations, proposals, etc. that contribute to decision- or policy-making in a contracting authority". The engagement should be for a limited time period to carry out a specific finite task or set of tasks that involve expert skills or capabilities that would not normally be expected to reside within the contracting authority. While the Code provides suggested categories for consultancy expenditure, this should be amended to suit the requirements of a State body. The suggested categories are Legal, Financial, PR/Marketing/Business Improvement/Other.

For the purposes of disclosure in the annual report and/or financial statements, fees paid to external parties for the provision of a service that does not fit within the definition of consultancy as outlined above, or is not included in any of the above consultancy categories, is considered 'business-as-usual'.

The table below provides total spend in 2022 on consulting services and on ‘business-as-usual’ outsourcing, as provided by the non-commercial State bodies under the aegis of my Department. In respect of the Financial Services and Pensions Ombudsman, it should be noted that details of all expenditure incurred will be included in its Annual Financial Statements 2022 and published to its website, once certified by the Comptroller and Auditor General, submitted to the Minister for Finance and laid before the Houses of the Oireachtas. Accordingly, the information provided by the FPSO must be considered draft until this process is complete.

-	Consulting Services– Total Spend 2022	‘Business-as- usual’ outsourcing – Total Spend 2022
Central Bank of Ireland	€9,360,000	€22,778,000
Financial Services and Pensions Ombudsman	€299,508	€1,049,710
Irish Fiscal Advisory Council	Nil	€11,628
National Treasury Management Agency	€3,788,000	€1,527,000

The following revised reply was received from the Department.

		Consulting Services & “Business as Usual” -Total Spend 2022*
National Treasury Management Agency		€000
	Legal	262
	Tax & Financial	2,591
	Actuarial	665
	Public Relations and Marketing	133
	Pension and Human Resources	24
	Facilities and Other	133
	Total Advisory Fees	3,788
	‘Business-as-usual’ functions	1,527
	Total Professional Fees	5,315
Irish Strategic Investment Fund	Legal	2,850
	Financial and Tax Advisory	1,619
	Total Advisory Fees	4,469

*This excludes costs incurred on behalf of, and subsequently reimbursed by, a relevant State Authority as part of NTMA business unit operations.