Written Answers Nos. 277-290
277. Deputy Michael Lowry asked the Minister for Finance if he will consider a reduction in the rate of VAT for music and live entertainment performers (details supplied); and if he will make a statement on the matter. [34837/23]
View answerAs the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
Under Irish VAT law the supply of services by writers, composers and performing artists are subject to the standard rate of VAT, currently 23%. The providers of such services are required to register for and charge VAT where their supplies exceed €37,500 per annum. However, in line with normal VAT rules, if the recipients of the services are registered for VAT and use the supplies in the course of their taxable business activities, then the VAT charged on the supply is deductible by the recipient.
Section 9 of Annex III provides that Member States may apply a reduced rate to such services; however, any consideration of this possibility would need to assess the benefit of making such a change, given that the VAT charged on services supplied to a VAT-registered business is already deductible by the recipient of the supply, under the normal VAT rules.
It is also important to be aware that Section 7 of Annex III of the VAT Directive provides that the reduced rate of VAT may be applied by Member States to admission to, among other things, cinemas, theatres and concerts. Ireland currently applies the reduced rate of VAT of 9% on a temporary basis to the promotion of and admissions to live musical performances (excluding dances). If no food and drink is available then by way of special derogation, Ireland applies an exemption to such an event.
278. Deputy Frankie Feighan asked the Minister for Finance if a person (details supplied) will be afforded the opportunity to file form 11, 2022, manually and not on-line, given the person in question does not have access to broadband or the internet; and if he will make a statement on the matter. [34866/23]
View answerI have been advised by Revenue that the named individual requested an exemption from filing online on 30 October 2020 and that an e-filing exemption was granted on 15 December 2020. This exemption is still in place.
279. Deputy Pearse Doherty asked the Minister for Finance the expected annual revenue in each of the years 2023 and 2024 of the local property tax, disaggregated by valuation band; and the number of properties within each valuation band. [34891/23]
View answerI am advised by Revenue that the latest available full year information available in respect of Local Property Tax (LPT) is for the year 2022. The total number of properties for which returns and/or LPT payments have been made for the year 2022 is 1,907,308 to-date. The table below shows a breakdown of these properties by valuation band. These figures include exempt and deferred properties and properties owned by Local Authorities and Approved Housing Bodies. Payments to date in respect of the year 2022 amount to €510 million. I am further advised that my Department does not prepare an advance estimate of the anticipated annual yield from LPT. However, I note that the figures for 2023 and 2024 will be impacted by the inclusion of newly built properties and by the decisions of the Local Authorities with regard to the Local Adjustment Factor.
The Deputy may wish to note that quarterly reports showing certain available current year statistics in relation to LPT are published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx.
|
Valuation Band |
Percentage of Properties |
Percentage of Liability |
|
1: €0-€200,000 |
39.4% |
13.9% |
|
2: €200,001-€262,500 |
20.0% |
17.5% |
|
3: €262,501-€350,000 |
18.5% |
21.8% |
|
4: €350,001-€437,500 |
9.3% |
13.6% |
|
5: €437,501-€525,000 |
4.9% |
8.5% |
|
6: €525,501-€612,500 |
2.5% |
5.0% |
|
7: €612,501-€700,000 |
1.7% |
3.9% |
|
8: €700,001-€787,500 |
1.0% |
2.7% |
|
9: €787,501-€875,000 |
0.8% |
2.4% |
|
10: €875,001-€962,500 |
0.5% |
1.6% |
|
11: €962,501-€1,050,000 |
0.3% |
1.2% |
|
12: €1,050,001-€1,137,500 |
0.2% |
0.8% |
|
13: €1,137,501-€1,225,000 |
0.2% |
0.8% |
|
14: €1,225,001-€1,312,500 |
0.1% |
0.7% |
|
15: €1,312,501-€1,400,000 |
0.1% |
0.6% |
|
16: €1,400,001-€1,487,500 |
0.1% |
0.4% |
|
17: €1,487,501-€1,575,000 |
0.1% |
0.5% |
|
18: €1,575,001-€1,662,500 |
0.0% |
0.4% |
|
19: €1,662,501-€1,750,000 |
0.1% |
0.5% |
|
Over €1.75 million |
0.2% |
3.5% |
280. Deputy Pearse Doherty asked the Minister for Finance the tax reliefs/expenditures set to expire at end-2023; the cost of their extension for 2024, and the cost, if any, within the base for each in 2024. [34892/23]
View answerThe following tax expenditures have a sunset clause of end-2023:
• Sea-going naval personnel credit
• Reduced rate of USC for medical card holders
• Consanguinity relief
• Relief from VRT for electric Vehicles
• Accelerated Capital Allowances for Energy Efficient Equipment
In relation to costings it should be noted that the Department of Finance has opened its pre-budget costings service, this is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
The Budget package cost of extending measures with sunset clauses will be set out in the Budget Day documentation. If these measures were to be extended beyond 2023 these estimates would be subject to revision based on the latest available data. As the Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.
281. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised on a first- and full-year basis of removing the capital gains tax exemption for a principle private residence where the property is sold within 12 months of its purchase, and restricting the relief by 25%, 50% and 75% in the same circumstances. [34895/23]
View answerThe Department of Finance has opened its pre-budget costings service, this is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
282. Deputy Pearse Doherty asked the Minister for Finance the revenue raised on a first- and full-year basis of applying a 1% and 2% stamp duty, respectively, on all forms of share buybacks; and if he will make a statement on the matter. [34896/23]
View answerThe Department of Finance has opened its pre-budget costings service, which is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
283. Deputy Pearse Doherty asked the Minister for Finance the estimated aggregate value of share buybacks in each of the years 2018 to 2022; if the Revenue Commissioners collect such data; and if he will make a statement on the matter. [34897/23]
View answerI am advised that Revenue does not have comprehensive data on share buy-backs as there is no statutory requirement in place for such data to be provided to them. However, based on information provided to Revenue in relation to the stamp duty treatment of such transactions and on publicly available information, Revenue estimates that the aggregate value of share buybacks in each of the years 2018 to 2022 was as follows:
2022 €204 million
2021 €56 million
2020 €6 million
2019 €28 million
2018 €80 million.
The following revised reply was received on 8 December 2023
I am advised that Revenue does not have comprehensive data on share buy-backs as there is no statutory requirement in place for such data to be provided to them. However, based on information provided to Revenue in relation to the stamp duty treatment of such transactions and on publicly available information, Revenue estimates that the aggregate value of share buybacks in each of the years 2018 to 2022 was as follows:
2022 €1,985,300,000
2021 €926,380,000
2020 €175,000,000
2019 €807,100,000
2018 €2,008,000,000
284. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised by the vacant homes tax in 2023 and 2024; and if it is in the revenue base for 2024 as per the Summer Economic Statement. [34898/23]
View answerAt the time of Budget 2023, the Vacant Homes Tax was estimated to raise approximately €3 million per year. As this is a permanent measure it is considered to be part of the tax base.
285. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised in first- and full-year terms by increasing the vacant homes tax to four, five and six times the LPT base rate, respectively. [34899/23]
View answer286. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised in first- and full-year terms by increasing the vacant homes tax to four times the LPT base rate and increasing it by a single multiple of the LPT base rate for each further year it is vacant. [34900/23]
View answer287. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised in first- and full-year terms by increasing the vacant homes tax to five times the LPT base rate and increasing it by a single multiple of the LPT base rate for each further year it is vacant. [34901/23]
View answer288. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised in first and full-year terms by increasing the vacant homes tax to six times the LPT base rate and increasing it by a single multiple of the LPT base rate for each further year it is vacant. [34902/23]
View answerI propose to take Questions Nos. 285, 286, 287 and 288 together.
The Vacant Homes Tax is a new measure announced in Budget 2023, which aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022. The first chargeable period commenced on 1 November 2022. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024. Therefore, there is no data available on which to base the costings sought by the Deputy.
As the Deputy will be aware, certain information on vacancy was collected as part of Local Property Tax returns in November 2021. This data has not been verified by Revenue and was collected for informational purposes only. A preliminary analysis of this data was published by Revenue in July 2022, and is available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx. In arriving at the estimates for the Budget 2023 documentation, certain assumptions were made based on the Revenue analysis and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It was tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.
The number of properties in scope and tax payable will depend on the self-assessed returns submitted by property owners, the number of properties declared as liable and the number of property owners entitled to claim exemption from the tax.
This measure aims increase the supply of homes for rent or purchase to meet demand, rather than raise revenue. It is a new measure which comes into operation this year. The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.
289. Deputy Michael Ring asked the Minister for Finance the number of personnel in his Department at Principal Officer level or above who, on retiring from that position, were subsequently appointed to a State or semi-State board over the past ten years. [34922/23]
View answerThe State Boards of my Department have advised that no personnel from my Department at Principal Officer level or above who, on retiring from that position, were subsequently appointed to a State or semi-State board over the past ten years.
290. Deputy Michael Ring asked the Minister for Finance if he will detail the number of taxpayers who have declared an income from brand ambassadors or equivalent from motor companies over the past ten years, in tabular form. [34974/23]
View answerI am advised by Revenue that it is not possible to provide the information requested by the Deputy, as there is not sufficient detail on the Form 11 tax return to determine whether income arises from a taxpayer being a brand ambassador in any capacity, or specifically being one for a motor company.
Revenue have also confirmed that there is no specific information on the occupation/role of PAYE employees on the payroll data (PMOD) they hold.
