Tuesday, 25 Jul 2023

Written Answers Nos. 291-305

Official Engagements

Questions (291)

Catherine Murphy

Question:

291. Deputy Catherine Murphy asked the Minister for Finance If he plans to have a bilateral meeting with his Lithuanian counterpart. [35951/23]

Written answers

Minister for Finance

Ireland has a long-standing and excellent bilateral relationship with Lithuania, which is framed within the context of our common membership of the European Union.

Since my appointment as Minister for Finance, I have greatly valued meeting my EU counterparts, including from Lithuania, at monthly Eurogroup and ECOFIN meetings.

At present, no plans are in place for a bilateral meeting with Minister Gintare Skaiste in either of our capitals, but I look forward to engagement with her over the coming months.

Revenue Commissioners

Questions (292, 293, 294)

Marian Harkin

Question:

292. Deputy Marian Harkin asked the Minister for Finance when the Revenue Commissioners introduced their petition process for dealing with challenges against disputed penalties and taxes levied pursuant to the Revenue Commissioners seize and release VRT enforcement procedure; if the petition process has a statutory basis; if prior to the introduction of the petition process individuals disputing compromise penalties and taxes had a statutory right to an independent appeal; and if he will make a statement on the matter. [35990/23]

Marian Harkin

Question:

293. Deputy Marian Harkin asked the Minister for Finance if he will seek assurances from the Revenue Commissioners as to their petition procedure, and in particular any restriction on any statutory right to an independent appeal against disputed penalties and taxes levied pursuant to Revenue Commissioners seize and release VRT enforcement procedure, has been reviewed and approved by the Revenue Commissioners solicitor's office; if so, when; and if he will make a statement on the matter. [35991/23]

Marian Harkin

Question:

294. Deputy Marian Harkin asked the Minister for Finance if he will provide data relating to the Revenue Commissioners seize and release VRT enforcement procedure, in tabular form (details supplied); and if he will make a statement on the matter. [35992/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 292 to 294, inclusive, together.

Vehicle Registration Tax was introduced by the Finance Act 1992 as amended. Section 132(1) of the Finance Act 1992 provides that with effect from the 1st January 1993, a duty of excise, to be called vehicle registration tax shall be charged, levied and paid at whichever of the rates specified in subsection (3) is appropriate on

(a) the registration of the vehicle and

(b) a declaration under section 131(3).

Any person who is the subject of a decision by the Revenue Commissioners in relation to the liability to vehicle registration tax or the repayment of vehicle registration tax may appeal to the Commissioners against that decision under section 145(3)(d) of the Finance Act 2001 and to the Appeal Commissioners under section 146 of the Finance Act 2001.

Details of the appeal process in relation to VRT appeals is set out in Section 6 of the Vehicle Registration Tax Manual.

In relation to “disputed penalties”, I take it this refers to compromise sums paid for local release of vehicles following seizure of a vehicle as liable to forfeiture.

I am advised that Officers of the Revenue Commissioners have a statutory power under section 141 of the Finance Act 2001 to seize a vehicle as liable to forfeiture where there has been a breach of VRT legislation. Where goods have been seized as liable to forfeiture, Part 2 of the Finance Act 2001 sets out the procedures that apply as a consequence of seizure, such as, service of a notice of seizure by the Revenue officer, lodging notice of claim by the owner and condemnation proceedings in the Court. 

Revenue has a statutory discretion to restore goods that have been seized as liable to forfeiture under section 144(2) of the Finance Act 2001 as amended. Revenue Officers can offer release terms to the owner in respect of vehicles that have been seized. In this regard, paragraph 5.8 of Section 5, Enforcement of the Vehicle Registration Tax Manual sets out detailed administrative guidelines that have been published by the Revenue Commissioners in relation to the process of restoration of seized vehicles. Paragraph 5.8.1 sets out the terms for local release of seized vehicles. The options for local release are set out in paragraph 5.8.2.  Option 1 allows for release subject to registration of the vehicle in the State and payment of a compromise sum. Option 2 provides for removal of the vehicle from the State and payment of a compromise sum. 

The scale of compromise sums is set out in paragraph 5.8.4. It is stated that these should only be departed from in exceptional cases, such as where genuine individual hardship has been established. Approval for this departure is needed from the local manager or from Revenue’s National Prosecutions and Seizures Office (NPSO), where appropriate.

Paragraph 5.8.6 states that a form of undertaking VRT20A is signed by the person acknowledging that the vehicle is being released on compromised terms as indicated in the form and undertaking to register and pay the VRT or remove the vehicle from the State within the specified time. 

Notwithstanding having agreed to the release terms, in some instances a person may request a review by Revenue of the compromise sum already paid for the release of the vehicle. Any petition made by a person subsequent to the release of the vehicle is dealt with by a manager at local level. If the person is not satisfied with the outcome of this local review, he/she is informed that the petition can be reviewed by the NPSO. In such cases, the NPSO will request a complete file on the seizure and release terms from the seizing station. Additional information may be requested from the officers concerned and/or the person whose vehicle was seized. A review is conducted, and the petitioner is written to advising of the outcome of their petition. This review is entirely independent of the seizing station.  

The process of local release in relation to vehicles seized for VRT breaches described above provides a comprehensive framework for settling restoration in a manner that is acceptable to Revenue and to the owner of the vehicle.

I will not comment on legal advice furnished to the Revenue Commissioners in any particular instance or generally.

The number of warnings issued, detentions, vehicles seized for VRT related offences, the number of cases where a compromise sum was paid, the total value of compromise sums paid, the number of petitions received and granted by the NPSO for the period January 2023 to end June 2023, is set out in the table below. I am informed by Revenue that these monthly numbers may fluctuate as Revenue’s systems are updated in respect of each case. The data is based on information extracted from Revenue systems on 17 July 2023:

2023	WARNINGS	DETENTIONS (s.140 FA 2001)	SEIZURES (s.141 FA 2001)	RELEASES ON PAYMENT OF ‘COMPROMISE PENALTY’ (s.144(2) FA 2001)	TOTAL VALUE OF COMPROMISE PENALTIES	PETITIONS RECEIVED	PETITIONS GRANTED
January	22	4	93	91	€51,993	1	0
February	24	5	82	82	€50,557	0	0
March	12	3	81	78	€65,304	0	0
April	42	6	107	104	€77,283	1	0
May	18	6	80	73	€61,162	2	0
June	11	4	94	90	€83,715	0	0

Question No. 293 answered with Question No. 292.

Question No. 294 answered with Question No. 292.

Housing Schemes

Questions (295)

Cathal Crowe

Question:

295. Deputy Cathal Crowe asked the Minister for Finance the number of home buyers in each county who have availed of the help-to-buy scheme since July 2020, in tabular form; and if he will make a statement on the matter. [36018/23]

Written answers

Minister for Finance

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives 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 the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme.

I am informed by Revenue that the table below sets out the number of claims (both approved and pending) with claim start dates between 1 July 2020 and 19 July 2023, broken down by County.

County	Claims (Approved and Pending)
Carlow	243
Cavan	235
Clare	394
Cork	3,151
Donegal	491
Dublin	3,273
Galway	1,135
Kerry	315
Kildare	3,202
Kilkenny	402
Laois	573
Leitrim	67
Limerick	680
Longford	69
Louth	939
Mayo	499
Meath	2,380
Monaghan	263
Offaly	408
Roscommon	200
Sligo	203
Tipperary	366
Waterford	584
Westmeath	306
Wexford	836
Wicklow	890
Total	22,104

Budget Process

Questions (296)

Fergus O'Dowd

Question:

296. Deputy Fergus O'Dowd asked the Minister for Finance if he has received the pre-budget 2024 submission by a group (details supplied); and if he will make a statement on the matter. [36023/23]

Written answers

Minister for Finance

In advance of the Budget, as Minister for Finance I receive a large number of pre-budget submissions on a wide range of issues. All submissions are acknowledged by my Department on receipt.

I have not received a pre-Budget 2024 submission from the group to which the Deputy refers.

State Bodies

Questions (297)

Fergus O'Dowd

Question:

297. Deputy Fergus O'Dowd asked the Minister for Finance further to Parliamentary Question No. 81 of 5 July 2023, if he will seek a breakdown of the yearly payments (details supplied), in tabular form. [36043/23]

Written answers

Minister for Finance

The National Treasury Management Agency (NTMA) assigns staff to Home Building Finance Ireland (HBFI), the National Asset Management Agency (NAMA) and the Strategic Banking Corporation of Ireland (SBCI). It was not possible for the NTMA to provide the information sought in the time available in respect of these bodies, and it will therefore provide this information directly to the Deputy in due course.   

 A breakdown of yearly payments provided by the remaining bodies under the aegis of my Department is in the attached table.

Yearly Payments

Tax Exemptions

Questions (298)

Alan Farrell

Question:

298. Deputy Alan Farrell asked the Minister for Finance if exemptions to the residential zoned land tax will be considered where commencement of construction is delayed due to planning matters; and if he will make a statement on the matter. [36046/23]

Written answers

Minister for Finance

The residential zoned land tax (RZLT) was included as a part of the Finance Act 2021. It represents the delivery of a commitment under Housing Policy Objective 15.2 of Housing for All, to introduce a new tax to activate land for residential purposes.

The tax measure, which will be levied at 3% of the market value of the zoned land, is intended to encourage activation of lands which are suitably zoned and which have benefited from investment in services to support housing but which remain undeveloped.

The aim of the tax is to ensure that zoned serviced land which is ready to deliver housing is activated and the process of seeking, gaining and activating planning permissions is encouraged. The RZLT is a part of the process of ensuring that zoned serviced land is used in an effective and timely manner.

Activation of planning permissions on greenfield and brownfield regeneration lands is a key aim of Housing for All, and will have the consequence of increasing supply, and broadening tenures.

It is worth pointing out that a number of deferrals from the tax were provided for in the legislation relating to planning matters. These include deferrals in circumstances where a commencement notice has been lodged in relation to land following the grant of planning permission and deferrals in relation to appeals and judicial reviews regarding draft and supplemental maps.

Furthermore, provision exists for a refund of the tax where, following publication of a final map, it is subsequently determined that development could not take place on a site due to issues regarding its physical condition.

Housing Provision

Questions (299)

Alan Farrell

Question:

299. Deputy Alan Farrell asked the Minister for Finance the consideration he is giving to the residential zoned land tax and the impact on house prices; and if he will make a statement on the matter. [36047/23]

Written answers

Minister for Finance

The residential zoned land tax (RZLT) is designed to prompt residential development by owners of land that is zoned as suitable for residential development purposes and that is serviced. The principal purpose of the measure is to change the behaviour of the owners of such land, rather than to raise revenue, and to encourage development in areas where the residential zoning of the land acknowledges a housing need.

Housing for All (HfA), the Government’s plan for housing, aims to increase housing supply to reflect the need for an average of 33,000 new homes per annum between 2020 and 2031. RZLT is one of a range of measures within the Housing for All Strategy to support a sustained increase in the output of housing and to enhance the viability of residential development, through the additional measures set out in Pathway 1 – Supporting Homeownership and Increasing Affordability and Pathway 3 – Increasing New Housing Supply.

A number of deferrals from the tax have been provided for in legislation including in circumstances where a commencement notice has been lodged in relation to land following the grant of planning permission. By ensuring development of land for housing takes place in a consistent manner and at sufficient pace to meet demand, increased supply as a result of the measure will help address issues of affordability for prospective homeowners.

The RZLT measure remains a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations.

Legislative Measures

Questions (300)

Violet-Anne Wynne

Question:

300. Deputy Violet-Anne Wynne asked the Minister for Finance further to Parliamentary Question No. 267 of 20 June 2023, if he will provide an update on the Finance Bill and primary legislation set out in section 92 to reflect transfer of Department functions; and if he will make a statement on the matter. [36097/23]

Written answers

Minister for Finance

In exercise of powers conferred upon me by Section 92 (as amended by section 36 of the Finance Act 2020 (No. 26 of 2020)) of the Finance Act 1989 (No. 10 of 1989), I am required to consult with the Minister for Health and with the Minister for Communications, Climate Action and Environment in respect of any changes to regulations concerning the Disabled Drivers and Disabled Passengers Scheme.

My officials are seeking advice to ascertain whether existing regulations transferring Departmental functions, or other primary legislation regarding changes in Ministers' and Secretary Generals' responsibilities, may already give effect to changes in consultation requirements with the relevant Ministers, in respect of any changes to DDS regulations.   

Once this matter is clarified, I will consider the matter further.

Tourist Accommodation

Questions (301)

Mary Butler

Question:

301. Deputy Mary Butler asked the Minister for Finance if he will consider the matters raised by an organisation (details supplied) on behalf of 27 local hotels and guesthouses. [36118/23]

Written answers

Minister for Finance

As the Deputy will recall, I extended the 9% VAT rate for the tourism and hospitality sectors to 31 August 2023 from the previous end date of 28 February 2023. It will revert to the 13.5% VAT rate on 1 September 2023. The estimated cost of this measure is €300m. This extension strikes a balance between the cost to public finances and the provision of support for these sectors.

It is not intended to extend this 9% reduced rate for a further period. As you may know, officials from my Department compiled a ministerial briefing on a number of measures, including the temporary 9% VAT rate. This briefing included an economic assessment of the measure. This considered the macroeconomic backdrop to any extension of the 9% rate, noting that the economy has rebounded strongly from the pandemic and that economic activity is now above pre-pandemic levels. The briefing also noted that the reduced rate is both regressive and very costly, and that this cost represents a transfer from taxpayers to the sectors which it covers. 

The Government accepted the Department’s economic assessment, which found that there was no longer an economic case for the temporary 9% rate, and, therefore, decided upon a reversion to the 13.5% VAT rate. Specifically, the Government decided that the 9% VAT rate for the tourism and hospitality sectors will only apply until 31 August 2023. This decision was made in recognition of the employment provided in the sectors to which the 9% rate applies, as well as to give businesses a transition period to adapt to the changing economic and policy environment. Finally, the Government was cognisant of avoiding adding to upward pressure on prices while inflation remains so elevated.

Prize Bonds

Questions (302)

Michael McNamara

Question:

302. Deputy Michael McNamara asked the Minister for Finance how many prize bonds were won in each of the past 20 years, in tabular form; and if he will make a statement on the matter. [36126/23]

Written answers

Minister for Finance

I am advised by the National Treasury Management Agency who manages State Savings that the below table shows the number of prize bonds won in each of the past 20 years:

Year	Number of Prizes	Comment
2003	105,322
2004	110,579
2005	129,934
2006	145,793
2007	148,231
2008	148,429
2009	222,709
2010	303,708
2011	385,078
2012	438,682
2013	475,116
2014	472,264
2015	389,033
2016	392,176
2017	302,064
2018	224,474
2019	248,140
2020	280,333
2021	228,015
2022	237,659
2023	124,596	to end of June 2023

Prize Bonds

Questions (303, 304, 305)

Michael McNamara

Question:

303. Deputy Michael McNamara asked the Minister for Finance how many requests for the receipt of prize bonds winnings were made in each of the past 20 years, in tabular form; and if he will make a statement on the matter. [36127/23]

Michael McNamara

Question:

304. Deputy Michael McNamara asked the Minister for Finance how many requests for the receipt of prize bonds winnings returned no prize bonds winnings in each of the past 20 years, in tabular form; and if he will make a statement on the matter. [36128/23]

Michael McNamara

Question:

305. Deputy Michael McNamara asked the Minister for Finance how many requests for the receipt of prize bonds winnings had proof of prize bonds purchases furnished to support a claim in each of the past 20 years, in tabular form; and if he will make a statement on the matter. [36129/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 303 to 305, inclusive, together.

I am advised by the National Treasury Management Agency who manage State Savings that Prize Bond winnings are paid automatically with prize winners being notified of all prizes at their registered address.

Up to February 2020 cheques, reinvestment of winning prize or Electronic Funds Transfers (EFT) were processed for Prize Bond winners.  Since February 2020, Prize bonds winners may choose for prizes to be automatically paid into their bank account or for prizes to be automatically invested into Prize Bonds. 

There is no requirement on holders to claim or request their winnings.

Question No. 304 answered with Question No. 303.

Question No. 305 answered with Question No. 303.