Written Answers Nos. 187-193
187. Deputy Ged Nash asked the Minister for Finance if he is planning to create a special infrastructure development fund or equivalent vehicle with funds identified from forecasted surpluses based on windfall corporation tax receipts; and if he will make a statement on the matter. [31364/23]
View answerAs the Deputy is aware my Department published a paper on 10 May 2023 outlining a range of illustrative options to help insulate the public finances from the risks associated with an overreliance on potentially transitory windfall corporation tax receipts while also putting money aside to contribute to future ageing and other structural costs.
I note the Deputy's point regarding a possible special infrastructure development fund.
I would say that work on proposals for a long term savings fund is ongoing and no decisions have as yet been taken regarding its structure or functions.
188. Deputy Ged Nash asked the Minister for Finance if he has formally taken back responsibility for the ethics reform agenda; if he will provide an update on his legislative priorities in respect of the ethics and standards in public office agenda for the remainder of 2023; and if he will make a statement on the matter. [31365/23]
View answerThe Taoiseach transferred responsibility for the policy to which the Deputy’s question relates to my Department with effect from 1 March 2023 on foot of Minister Donohue’s recusal from certain functions at that time. This was done by way of the Standards in Public Office (Transfer of Departmental Administration and Ministerial Functions) Order 2023 (S.I. No.89 of 2023). Pending a further statutory instrument to reverse this position, which I expect to be made shortly, I continue to be the Minister responsible.
As the House may recall, the Programme for Government contains a commitment to “reform and consolidate the Ethics in public office legislation”
As the first step, Government agreed in September 2021 that the Department of Public Expenditure, NDP Delivery and Reform would undertake a review of the statutory framework. This Review considered inter alia input from key public sector stakeholders including the Departments of Justice and Housing and also engaged with the Dáil and Seanad Committees on Members' Interests. It was completed and the Review report was approved by Government in December 2022 and published in February 2023. Its recommendations broadly focused on five key themes:
• the legislative framework for Ethics should be underpinned by a set of overarching integrity principles;
• there should be new specific statutory prohibitions, including on the use of insider information;
• disclosure requirements should be strengthened to improve transparency and examining whether the regime should encompass more office holders;
• a strengthening of the Standards in Public Office Commission (SIPO); and
• any post-term employment restrictions contemplated for elected officials/public servants should seek to address matters not already covered by lobbying regulation and that should align closely with that legislation.
To further progress the Programme for Government commitment, my Department is now preparing a draft scheme for legislative reform in consultation with relevant Ministers and informed by the outcome of the Review. It is my intention that the General Scheme will be brought to Government for approval to publish during 2023.
In this, my ultimate goal is to create a fit-for-purpose, easy to understand and user-friendly ethical framework that contributes to the quality and efficacy of our public administration.
189. Deputy Michael Healy-Rae asked the Minister for Finance when arrears will issue to a person (details supplied); and if he will make a statement on the matter. [30507/23]
View answerI refer to the parliamentary question raised regarding increases due to a member of Revenue staff under the Building Momentum Agreement. The NSSO has advised Revenue that they faced a number of significant challenges in delivering these increases in such a short time frame. In response to this challenge, the NSSO created a dedicated project team, incorporating experts from both HR and Payroll areas. The NSSO have now completed over 99% of the February and October pay increases and are working hard to deliver the remaining arrears as quickly as possible. These remaining cases are complex and require extensive manual investigation, however, significant progress had been made to date and the NSSO has commenced processing arrears for these members of staff, the first of which were made on pay day 22 June 2023. I am advised that the arrears due to Ms O’Leary will issue to her on pay day 6 July 2023.
190. Deputy Aengus Ó Snodaigh asked the Minister for Finance what solution, other that the cumbersome process of getting a variation to the zoning in city or county development plans, is available for businesses that in some cases are facing a very high RZLT tax bill despite being a viable industrial business, but whose properties had been inadvertently rezoned as residential despite operating as an industry and now faced with the RZLT tax; and if he will make a statement on the matter. [30561/23]
View answer191. Deputy Aengus Ó Snodaigh asked the Minister for Finance the number of companies operating that have appealed against a designation of being liable for a RZLT which would potentially undermine the business and end up closing same; and if he will make a statement on the matter. [30562/23]
View answer192. Deputy Aengus Ó Snodaigh asked the Minister for Finance if it was ever intended that the RZTL tax would lead to the closure of viable trading companies that happen to be based on lands zoned residential rather than zoned industrial; and if he will make a statement on the matter. [30565/23]
View answerI propose to take Questions Nos. 190 to 192, inclusive, together.
The 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 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.
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.
Land in industrial use 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. 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 owners of land in industrial use, to see if their land is within the scope of the tax. If a landowner saw 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.
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.
In relation to the specific query regarding the number of companies operating that have appealed against a designation of being potentially liable to the RZLT charge, I am informed by the Department of Housing, Local Government and Heritage that the total number of appeals received by An Bord Pleanála in this regard is 627. It should be noted that this includes appeals by developers, farmers, businesses, homeowners and other landowners.
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.
193. Deputy Neasa Hourigan asked the Minister for Finance when legislation will be brought forward to remove the anomaly whereby a registered charity employing general practitioners such as one (details supplied) is not exempt from professional services withholding tax; and if he will make a statement on the matter. [30585/23]
View answerProfessional Services Withholding Tax (PSWT) is a deduction at the standard rate of income tax, currently 20%, from relevant payments made by accountable persons to specified persons in respect of certain professional services. The tax deducted is a payment on account against the specified person’s final Income Tax or Corporation Tax liability for the year, with the amount of PSWT deducted credited against the tax liability for that year. A specified person can include businesses undertaken through a company, sole trade or partnership.
Accountable persons include Government Departments, State agencies and bodies, local authorities, colleges and authorised medical insurers.
The range of professional services that come within the scope of PSWT is extensive and includes services of a medical, dental, pharmaceutical, optical, aural or veterinary nature.
A charity which is registered with the Charities Regulator can apply to Revenue for the charitable tax exemption provided for in section 207 of the Taxes Consolidation Act 1997. Where a body is granted the charitable exemption status by Revenue, payments to it by an accountable person are not subject to PSWT.
I am advised by the Department of Health that General Practitioners are private contractors, most of whom hold GMS contracts with the HSE for the provision of services without charge to medical card and GP visit card holders. GMS contracts are held by individual GP’s and payment for the related services is made by the HSE Primary Care Reimbursement Service to the GP concerned.
The legislation governing PSWT provides that a specified person may in certain circumstances make a claim for a refund of PSWT in the same tax year in which it is deducted (referred to an “interim refund”). Among the requirements for the making of an interim refund claim is the requirement that the specified person’s profits for the previous period have been finalised and that the tax due for that period has been paid.
Therefore, the PSWT is deducted from the payments to the individual GP and is refundable through the individual tax return of each doctor. The ‘anomaly’ as referred to by the Deputy does not arise from the operation of PSWT in relation to a registered charity rather it is a consequence of the GP GMS contract.
My Department and Revenue are aware of the issues arising for certain taxpayers regarding refunds of PSWT, where those refunds arise on foot of payments made by the HSE under GMS contracts. Discussions have taken place between officials from Revenue, the Department of Finance and the Department of Health on this matter. Revenue are working to clarify the issues and hope to soon be in a position to issue guidance on this matter.
Finally, the Deputy may also wish to note that the Minister for Health recently published the Terms of Reference for a Strategic review of General Practice which will be completed this year. The review, with input from key stakeholders, will examine the broad range of issues affecting general practice.
