Written Answers Nos. 458-478
458. Deputy Patrick Costello asked the Minister for Finance if, in light of the ongoing refusal of Irish banks to pass on ECB interest rates to Irish customers, he will establish a State savings system (separate to the existing bonds) which matches the variable ECB interest rates. [38372/23]
View answerThe National Treasury Management Agency (NTMA), through State Savings products, already offers a wide range of tax free savings products to the general public, including variable rate savings accounts and fixed rate savings bonds and certificates.
I am happy to inform the Deputy that on Friday, 1 September last the NTMA announced increases in interest rates on State Savings fixed rate products and new variable interest rates for Deposit Accounts and the prize fund rate for Prize Bonds. The rates are effective from 1 October 2023 and the changes were published via the statesavings.ie website.
459. Deputy Darren O'Rourke asked the Minister for Finance the estimated cost of abolishing stamp duty on first-time buyers of homes of less than €375,000. [38439/23]
View answerI am advised by Revenue that based on stamp duty returns for 2022, the latest year for which fully analysed data are available, the estimated cost of abolishing stamp duty for first-time buyers of homes of less than €375,000 is in the order of €34 million.
This estimate is arrived at by taking the stamp duty returns for residential property purchases made by persons identifying themselves as first-time buyers where the consideration was less than the suggested threshold and taking the associated tax liability as the potential cost of exempting them from the duty.
460. Deputy Alan Dillon asked the Minister for Finance to provide clarity on recent policy decisions regarding the acceptance of cash payments by State agencies and bodies; if there is a co-ordinated approach across all Departments in this regard; and if he will make a statement on the matter. [38464/23]
View answer461. Deputy Alan Dillon asked the Minister for Finance if, in light of the decisions by agencies like the NCTS and National Driver Licence Service centres to phase-out cash payments, he can ensure that the rights and preferences of the public are adequately taken into consideration; and if he will make a statement on the matter. [38465/23]
View answer462. Deputy Alan Dillon asked the Minister for Finance if he will commit to pausing any further decisions by State agencies or bodies to discontinue the acceptance of cash payments until the national payments strategy, specifically concerning cash acceptance, is published; and if he will make a statement on the matter. [38466/23]
View answer463. Deputy Alan Dillon asked the Minister for Finance what provisions are being made in the national payments strategy to ensure that sectors and sub-sectors, including Government and public bodies, will continue to accept cash, especially considering its importance to many in Irish society; and if he will make a statement on the matter. [38467/23]
View answer464. Deputy Alan Dillon asked the Minister for Finance if he will confirm if the decision by agencies, like the NCT service, to phase-out cash payments, will be reconsidered or reversed in light of public feedback and the forthcoming national payments strategy; and if he will make a statement on the matter. [38468/23]
View answerI propose to take Questions Nos. 460 to 464, inclusive, together.
The issue of cash acceptance in financial transactions with both public and private service providers is an important issue that is currently being considered at domestic level by Government and, now, at European level led by the European Commission.
The Deputy will be aware that the Retail Banking Review, which was published in November 2022, contained a key recommendation for the Department to lead the development of a National Payments Strategy (NPS) to be completed in 2024.
Acceptance of cash is one of several areas of focus for the NPS. The Terms of Reference for the NPS set out that the Strategy should examine whether a legislative requirement should be put in place domestically in relation to the acceptance of payment methods by certain classes of firms, sectors or sub-sectors. The Terms also include a consideration of whether it should be Government policy that public bodies should accept, or facilitate the acceptance, of cash for the payment of goods, services, taxes, levies, fees or charges.
Work on the NPS by a team in my Department is underway and it is in the initial stages of consulting with key stakeholders to ensure a coordinated approach across Government Departments, State Agencies and other Public Bodies. In this regard, my officials are in the process of advising relevant Public Bodies not make any changes to their acceptance of cash as a payment method until the NPS considers public policy on the acceptance of cash by public bodies.
On 28 June, the European Commission published a proposal for a Regulation on Legal Tender, which looks at both access to, and acceptance of, cash.
This proposal is largely in line with emerging expectations on the acceptance of cash by aiming to ensure that everyone within the Euro Area has sufficient access to cash. It proposes that a Competent Authority in each Member State would be required to monitor the access to cash on an annual basis against a set of common indicators to be formulated by the European Commission, taking remedial measures where sufficient and effective access to cash is not ensured. The draft Regulation specifically draws attention to the need to monitor the level of 'ex ante unilateral exclusions of payments in cash' and it defines such exclusions as including a 'no cash' sign.
The recitals to the proposed Regulation state that a Member State should, if it concludes the level of unilateral exclusions of cash undermine the mandatory acceptance of euro banknotes and coin, take effective and proportionate measures including requiring specific sectors, such as healthcare, supermarkets, post offices and pharmacies, to accept cash.
In general terms, the European Commission’s proposals on access to cash are entirely compatible with the Heads of a Bill on the reasonable access to cash that is already being prepared by my Department in line with the recommendation of the Retail Banking Review. I understand that the Heads will be ready by the end of 2023.
As regards the acceptance of cash, the European Commission's draft Regulation proposes that cash acceptance should be mandatory across the Euro Area. However, it also provides flexibility around mandatory acceptance in circumstances where there is a prior agreement in place between both parties to a transaction regarding payment method, or if the refusal is made in good faith. In Ireland, the exceptions to mandatory acceptance are currently common practice across a number of sectors of the economy.
At domestic level, the work on the acceptance of cash is being undertaken through the NPS which is complementary to the work of the European Commission.
465. Deputy Alan Kelly asked the Minister for Finance the estimated additional revenue that would be generated from a 5% surcharge on all taxable income above €500,000. [38495/23]
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.
466. Deputy Catherine Murphy asked the Minister for Finance if his Department has taken advice in respect of the use of artificial intelligence (A.I.) within his Department; if any section of his Department currently makes use of A.I. and if he will outline the purposes it is utilised for and costs associated with same; and if he has consulted with any consultancy firms in respect of the use of A.I. [38566/23]
View answer468. Deputy Cian O'Callaghan asked the Minister for Finance to provide data of drug seizures at point of coastal importation in tabular form that includes individual drug type, weight of drugs seized, shipping company, type of cargo on board from the years 2017 to date; and if he will make a statement on the matter. [38593/23]
View answerRevenue has primary responsibility for the prevention, detection, interception and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State. I am advised by Revenue that its drugs interdiction strategy supports the Government’s strategic approach to the misuse of drugs under the National Drugs Strategy 2017-2025. The Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities right across the country, and every effort is made to combat not just the importation of illicit drugs but also firearms, ammunition and cash that inevitably accompany this very serious organised criminal activity. I am assured that combatting the smuggling of controlled drugs into and out of this jurisdiction is, and will continue to be, a priority for Revenue.
I am further advised that details of the shipping company and type of cargo in relation to drug seizures are not routinely recorded. During the period 2017 to end of August 2023, Revenue officers have detected drugs in a variety of concealments which includes contraband secreted within consignments of furniture, fuel tanks, and barrels of oil. Some of the more elaborate concealments involve purpose built “hides” within the roof area of refrigerated trucks, horse boxes and a detection of cocaine which was impregnated in a consignment of charcoal.
The value and volume of drugs seized at all national ports for the years 2017 to date are outlined below in tabular form:
|
Type of Drug |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 (to end August) |
|
Cannabis (herbal and resin) |
2,564kg €44.1m |
277kg €4.6m |
171kg €3.4m |
906kg €18.1m |
798kg €13.9m |
774kg €13.3m |
667kg €11.9m |
|
Cocaine and heroin |
3.8kg €0.3m |
148.3kg €10.4m |
35.6kg €2.5m |
91kg €6.4m |
802.4kg €57.7m |
97.5kg €7.3m |
445.9kg €31.2m |
|
Amphetamines, ecstasy and other |
20.3kg €0.1m |
558.9kg €3.2m |
18.6kg €0.2m |
31kg €0.8m |
32.8kg €0.5m |
36.7kg €0.3m |
64.5kg €0.5m |
|
Total |
2,588.1kg €44.5m |
984.2kg €18.2m |
225.2kg €6.1m |
1,028kg €25.3m |
1,633.2kg €72.1m |
908.2kg €20.9m |
1,177.4kg €43.6m |
In addition to the figures outlined above, during the period 2017 to date in 2023, Revenue seized approximately 63kgs of suspected cocaine which was detected when washed up along the Irish coastline. These detections are believed to be associated with failed drug smuggling attempts into the State.
I am advised that Revenue monitors and evaluates harbours and inlets along the coastline to identify the risk potential for drug smuggling. Revenue utilises the latest detection methods at the points of entry into the State, with the deployment of assets such as Revenue scanners, drug detector dogs and staff deployments on a 24/7 basis, where required, at frontier posts. Revenue deploys two Revenue Customs Cutters to patrol the coastline, undertake vessel controls and support maritime surveillance and intelligence gathering duties in relation to drugs. These vessels work closely with teams of land-based enforcement officers involved in anti-smuggling duties deployed to cover potential high-risk areas along the coastline. Revenue’s Customs Drug Watch Programme supplements work in this area and is aimed at encouraging members of the public, along with coastal and local maritime communities to notify Revenue of suspect or unusual activity around the coast by way of a confidential 24/7 free phone facility 1800 295 295.
At a national level Revenue works closely with An Garda Síochána in addressing the challenges and risks associated with drugs smuggling, together with the Health Products Regulatory Authority in acting against the illegal drugs trade. Revenue’s work against drug crime is extensive and multifaceted and is kept under continuous review to ensure that it makes the most effective contribution possible to deal with this societal problem.
Given the global nature of the illicit drugs trade, international law enforcement cooperation remains a key element in Revenue’s overall response. Revenue has strong and strategic partnerships in place at international level, targeting drugs trafficking, including working closely with relevant law enforcement agencies such as Europol and the Maritime Analysis Operations Centre for Narcotics (MAOC-N). Revenue liaison officers are stationed in both Europol and MAOC-N, ensuring Revenue is at the forefront in the area of drugs enforcement at an international level. These officers work closely with international colleagues in identifying the transnational risks associated with drug smuggling into the State.
There is also ongoing cooperation between Revenue, An Garda Síochána, the PSNI and HMRC in tackling serious crime, including drug trafficking and the supply of illicit drugs under the cross-border Joint Agency Task Force (JATF).
Finally, I think it is important to recognise the challenge of combatting drugs importations in an international context having regard in particular to the scale and scope of the international movement of people, vehicles and freight and the transnational nature of organised crime. I acknowledge the critical work of Revenue and An Garda Síochána, in particular, in tackling the challenge of illegal drugs importations. The risk-based approach being adopted, including developing and utilising intelligence in conjunction with national and international law enforcement partners, ensures optimal deployment of resources by the agencies involved. I am satisfied that Revenue is clear and focused in its resolve to tackle the challenge of illegal drugs smuggling.
469. Deputy Sorca Clarke asked the Minister for Finance the estimated full-year yield if the licence for amusement machines for up to three months increased from €38 to €70 based on 2022 figures; and the estimated full-year yield if the licence for amusement machines for up to 12 months increases from €125 to €225 based on 2022 figures. [38629/23]
View answerIn 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.
470. Deputy Catherine Murphy asked the Minister for Finance the value of counterfeit tobacco products, counterfeit alcohol products, counterfeit clothing items and counterfeit prescription drugs and narcotics seized by customs officials at State airports and ports of entry and exit; and if he will provide the information in tabular form, by location, item and value, for the years 2019, 2020, 2021, 2022 and to date in 2023. [38694/23]
View answer471. Deputy Catherine Murphy asked the Minister for Finance the value of counterfeit tobacco products, counterfeit alcohol products, counterfeit clothing items and counterfeit prescription drugs and narcotics seized by customs officials at privately owned airports and ports of entry and exit; and if he will provide the information in tabular form, by location, item and value, for the years 2019, 2020, 2021, 2022 and to date in 2023. [38695/23]
View answerI propose to take Questions Nos. 470 and 471 together.
I am advised by Revenue that it collaborates closely with other agencies such as An Garda Síochána, the Competition and Consumer Protection Commission and the Health Products Regulatory Authority (HPRA) in combatting the threat which counterfeit goods pose to legitimate businesses, consumers and the Exchequer. Revenue implements a risk-based profiling approach which is designed to facilitate the legitimate movement of goods and to secure payment and collection of duty and VAT, as appropriate, while also protecting citizens, trade and the environment. Where compliance risks such as counterfeit goods are identified in any consignment as a result of risk profiling, Revenue takes the appropriate action to address the risk including documentary checks, physical inspections and liaising with relevant stakeholders.
The counterfeiting of goods or Intellectual Property Right (IPR) infringements damages legitimate businesses through potential reputational damage and the diversion of revenues. Counterfeit goods may also be harmful to consumers, are often of a poor quality and do not conform to accepted safety standards. The procedures under which Revenue acts against counterfeit goods apply in cases in which the holder of an intellectual property right has made an application for action to be taken to protect that right, and the application has been granted. Where goods are suspected of infringing IPR, they are detained pending confirmation by the appropriate right holder. If goods are confirmed to be counterfeit, they are seized.
I am advised by Revenue that for the years 2019 to date in 2023, there have been no detections of counterfeit clothing items at private airports or ports.
The table below outlines the location and value of detections of counterfeit clothing at State airports and ports from 2019 to date in 2023:
|
Year |
Location |
Value |
|
2019 |
Dublin Airport |
€308,755 |
|
2020 |
Dublin Airport |
€961,338 |
|
2021 |
Dublin Airport |
€1,956,862 |
|
2022 |
Dublin Port |
€21,520 |
|
Dublin Airport |
€659,457 |
|
|
2023 (to end August 2023 |
Dublin Port |
€77,642 |
|
Dublin Airport |
€155,292 |
I am advised by Revenue that the HPRA is the competent authority for the regulation of prescription drugs. Any suspected counterfeit drugs detected by Revenue are detained and transferred to the HPRA for further investigation. Revenue therefore does not hold statistics relating to counterfeit prescription drug seizures.
I am further advised that there were no seizures of cigarettes, tobacco or alcohol in privately owned ports and airports during the period in question.
Revenue does not disaggregate the volume and value of counterfeit cigarettes, tobacco and alcohol seized from its overall seizures of such illicit products. The total value of alcohol and tobacco products seizures for 2019 to 2022 for State Airports and ports of entry and exit are provided for in tabular form below:
|
Year |
Location |
Excisable Product |
Value (€) |
|
2019 |
Dublin Airport |
Tobacco |
34,085.58 |
|
Cigarettes |
294,356.77 |
||
|
Alcohol |
27,008.68 |
||
|
Cork Airport |
Tobacco |
4,166.06 |
|
|
Cigarettes |
15,809.02 |
||
|
Alcohol |
1,452.13 |
||
|
Knock Airport |
Tobacco |
509.2 |
|
|
Cigarettes |
875.58 |
||
|
Alcohol |
444.35 |
||
|
Shannon Airport |
Tobacco |
2,441.48 |
|
|
Cigarettes |
12,092.01 |
||
|
Alcohol |
5,910.55 |
||
|
Cork Tivoli |
Tobacco |
1,006.34 |
|
|
Cigarettes |
24,920.26 |
||
|
Alcohol |
353.45 |
||
|
Dublin Port |
Tobacco |
143,852.35 |
|
|
Cigarettes |
594,996.70 |
||
|
Alcohol |
1,143,282.68 |
||
|
Rosslare Europort |
Tobacco |
2,394.58 |
|
|
Cigarettes |
8,787.77 |
||
|
Alcohol |
26,759.49 |
||
|
2020 |
Dublin Airport |
Tobacco |
41,926.59 |
|
Cigarettes |
244,687.32 |
||
|
Alcohol |
41,185.52 |
||
|
Cork Airport |
Tobacco |
7,341.19 |
|
|
Cigarettes |
10,134.57 |
||
|
Alcohol |
383.13 |
||
|
Knock Airport |
Tobacco |
201.00 |
|
|
Shannon Airport |
Tobacco |
1,505.49 |
|
|
Cigarettes |
7,422.71 |
||
|
Alcohol |
4,610.26 |
||
|
Cork Ringaskiddy |
Alcohol |
110,693.25 |
|
|
Cork Tivoli |
Tobacco |
33.50 |
|
|
Cigarettes |
7,042.37 |
||
|
Alcohol |
13.87 |
||
|
Dublin Port |
Tobacco |
280,275.74 |
|
|
Cigarettes |
3,003,966.58 |
||
|
Alcohol |
1,252,459.82 |
||
|
Rosslare Europort |
Tobacco |
2,810.65 |
|
|
Cigarettes |
10,216.82 |
||
|
Alcohol |
289,699.39 |
||
|
2021 |
Dublin Airport |
Tobacco |
54,576.19 |
|
Cigarettes |
466,832.34 |
||
|
Alcohol |
66,319.60 |
||
|
Cork Airport |
Tobacco |
761.79 |
|
|
Cigarettes |
1766.89 |
||
|
Alcohol |
630.61 |
||
|
Knock Airport |
Tobacco |
408.70 |
|
|
Cigarettes |
5.68 |
||
|
Shannon Airport |
Tobacco |
3,707.78 |
|
|
Cigarettes |
7,746.02 |
||
|
Alcohol |
8,859.24 |
||
|
Cork Ringaskiddy |
Alcohol |
181,102.00 |
|
|
Cork Tivoli |
Tobacco |
77.05 |
|
|
Cigarettes |
20,289.76 |
||
|
Alcohol |
726.20 |
||
|
Dublin Port |
Tobacco |
2,231,195.14 |
|
|
Cigarettes |
2,796,562.10 |
||
|
Alcohol |
576,210.88 |
||
|
Rosslare Europort |
Tobacco |
96,635.44 |
|
|
Cigarettes |
684,846.84 |
||
|
Alcohol |
177,452.22 |
||
|
2022 |
Dublin Airport |
Tobacco |
68,668.97 |
|
Cigarettes |
382,663.46 |
||
|
Alcohol |
67,039.44 |
||
|
Cork Airport |
Tobacco |
4,937.90 |
|
|
Cigarettes |
14,476.55 |
||
|
Alcohol |
4,357.93 |
||
|
Knock Airport |
Cigarettes |
71.1 |
|
|
Alcohol |
55.48 |
||
|
Shannon Airport |
Tobacco |
3,500.75 |
|
|
Cigarettes |
21,890.83 |
||
|
Alcohol |
18,321.54 |
||
|
Cork Ringaskiddy |
Alcohol |
9,470.43 |
|
|
Alcohol |
9,470.43 |
||
|
Cork Tivoli |
Tobacco |
263.31 |
|
|
Cigarettes |
23,983.84 |
||
|
Alcohol |
5,194.25 |
||
|
Dublin Port |
Tobacco |
446,658.85 |
|
|
Cigarettes |
1,581,182.44 |
||
|
Alcohol |
212,711.95 |
||
|
Rosslare Europort |
Tobacco |
5,885.95 |
|
|
Cigarettes |
1,107,482.2 |
||
|
Alcohol |
1,675,428.76 |
I am assured that Revenue acts against all aspects of the illegal tobacco and alcohol trade, and uses a combination of risk analysis, profiling and intelligence, and risk-based screening of cargo, vehicles, baggage and postal packages to intercept illicit products. Action after importation includes checks at retail outlets, markets and private and commercial premises.
472. Deputy Catherine Murphy asked the Minister for Finance the value of cash, valuable metals and jewels and or jewellery seized at State-owned and private airports and ports of entry and exit; the value of same returned on appeal and or request; and if he will provide the information in tabular form, by location, item and value, for the years 2019, 2020, 2021, 2022 and to date in 2023. [38696/23]
View answerI am advised by Revenue that under the provisions of the Proceeds of Crime (Amendment) Act 2005 it can detain cash amounts of €1,000 or more which are suspected to be the proceeds of, or intended for use in, criminal activity. When cash is detained, an application is made by Revenue to the Courts requesting further time to investigate the source of the cash. The Courts, once satisfied with the application, may grant a detention order for a period of up to three months and for a total duration of no longer than 24 months to allow Revenue to carry out a comprehensive investigation with a view to having the money forfeited to the State, where appropriate.
I am advised by Revenue that there have been no seizures of cash at private airports and ports in the period 2019 to date in 2023. The table below outlines the value of cash seized at State ports and airports from 2019 to date 2023, and cash returned directly relating to those seizures. The cash returned value is related to the original cash seizures for each year even where the cash is returned in a subsequent year.
|
Year |
Location |
Cash Seized |
Cash Returned |
|
2019 |
Dublin Airport |
€435,768 |
€81,103 |
|
Dublin Port |
€189,420 |
€9,410 |
|
|
Knock Airport |
€10,025 |
€0 |
|
|
Rosslare Port |
€38,567 |
€38,567 |
|
|
Shannon Airport |
€27,050 |
€0 |
|
|
2020 |
Dublin Airport |
€408,846 |
€51,845 |
|
Dublin Port |
€55,471 |
€14,865 |
|
|
Rosslare Port |
€791,385 |
€77,470 |
|
|
Shannon Airport |
€8,100 |
€0 |
|
|
2021 |
Dublin Airport |
€218,651 |
€97,058 |
|
Dublin Port |
€176,947 |
€62,761 |
|
|
Rosslare Port |
€234,180 |
€19,810 |
|
|
2022 |
Dublin Airport |
€343,470 |
€19,885 |
|
Dublin Port |
€868,376 |
€0 |
|
|
Rosslare Port |
€22,050 |
€6,550 |
|
|
2023 (to 31 August) |
Dublin Airport |
€2,258,061 |
€0 |
|
Dublin Port |
€321,919 |
€4,065 |
|
|
Rosslare Port |
€40,953 |
€9,250 |
|
|
Shannon Airport |
€9,500 |
€0 |
As previously mentioned, on the basis of renewed detention orders granted by the Courts, Revenue has a maximum of 2 years to investigate cash detentions/seizures. As a result, a proportion of cash seized in 2021, 2022 and 2023 is continuing to be investigated, impacting on the value of returns for these years.
The importation of goods, including valuable metals, jewels, and jewellery, from a third country must be declared to Revenue and are liable to customs duty and VAT, if applicable, on importation. I am advised that there have been no seizures of valuable metals and jewels and/or jewellery at private airports and ports for the years 2019 to date. In respect of State ports and airports for the period in question, I am advised that there were no seizures of valuable metals or jewels for the requested years. The value of jewellery seized, and the value of jewellery returned are outlined in the table below.
|
Year |
Location |
Value of Jewellery Seized |
Value of Jewellery Returned |
|
2019 |
Dublin Airport |
€4556.63 |
€4,416 |
|
2020 |
Dublin Airport |
€68,689.37 |
€67,639 |
|
2021 |
Dublin Airport |
€4150 |
€ 0 |
|
2022 |
Dublin Airport |
€38,268 |
€38,268.34 |
|
2022 |
Kerry Airport |
€21,689 |
€21,689 |
Jewellery seized by Revenue at ports and airports may be released on payment of the applicable VAT and Duty. It should be noted that a valuation is sought from the Assay Office to determine the correct value of the jewellery which will represent the value for Customs Duty and VAT payable. The importer may appeal this valuation to Revenue and will be required to provide documentation to support any appeal.
475. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to an anomaly (details supplied) in the approved retirement fund legislation whereby upon the death of an ARF holder, foster children are treated under the others category rather than the child category; and if he will make a statement on the matter. [38763/23]
View answerAs the Deputy may be aware, as a general rule, where there is a distribution from an Approved Retirement Fund (ARF) on the death of an ARF holder, this will trigger charges to both Income Tax and Capital Acquisitions Tax (CAT). The distribution is treated as income of the ARF holder for the year in which he or she dies and will come within the charge to Income Tax. The Income Tax payable will be payable on behalf of the deceased ARF holder. CAT will be payable by the beneficiary on the value of the distribution received by him or her to the extent that it exceeds the applicable Group threshold.
The treatment is subject to certain exceptions, including in cases where the beneficiary was a child of the ARF holder.
If the beneficiary was a child of the ARF holder and aged under 21 years of age on the date of death:
• The amount distributed from the ARF to the beneficiary will be exempt from Income Tax, and
• The value of the inheritance received by the beneficiary will be subject to CAT, payable by the beneficiary, at the rate of 33% to the extent that this amount exceeds the Group A threshold (€335,000).
If the beneficiary was a child of the ARF holder and aged 21 years of age or over on the date of death:
• The amount distributed from the ARF to the beneficiary will be charged to Income Tax at the rate of 30%, payable on behalf of the deceased ARF holder, and
• The value of the inheritance received by the beneficiary will be exempt from CAT.
Where the beneficiary of such a distribution has been fostered by the deceased ARF holder, the beneficiary will not be considered a “child” of that individual for this specific tax treatment purposes, which is the point raised in the Deputy's question.
I am aware of this differential treatment and my officials are examining the issue. In this context it is worth noting the Commission on Taxation and Welfare have recommended that assets held within an ARF should be treated for inheritance tax purposes in the same way as other assets where inherited by anyone other than the individual’s spouse, and therefore subject to both Income Tax and CAT.
476. Deputy Carol Nolan asked the Minister for Finance if he will support the abolition of the standard rate of 23% on sun cream and sun protection factor (SPF) 30+ products to introduce a 0% VAT rate; and if he will make a statement on the matter. [38784/23]
View answerThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in respect of which Member States may apply reduced rates of VAT.
Under EU VAT law, there is no scope for a reduction in the rate of VAT on sunscreen products. The supply of sunscreen products is liable to the standard rate of VAT, currently 23%.
477. Deputy Patrick Costello asked the Minister for Finance given the rent-a-room scheme promotes a mechanism of tax relief, the measures the Government will introduce to ensure that such relief is only made available to homeowners who act in good faith when promoting a vacancy and attracting tenants. [38797/23]
View answerThe Rent a Room scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation.
In accordance with section 216A of the Taxes Consolidation Act 1997 (TCA), an individual who lets a room or rooms in her or his sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2023. Although the relief applies automatically, the amount of exempt rental income must be included in the individual’s tax return for the year in question.
To qualify for rent-a-room relief, the total payment for the letting must be below the annual limit, which is €14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income. The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.
Further information on rent-a-room relief is available from the Revenue website at:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx.
As the Deputy will appreciate, in relation to the scheme, my role relates to taxation policy. Broader matters concerning landlords and tenants are, in the first instance, matters for the Minister for Housing, Local Government and Heritage.
478. Deputy Patrick Costello asked the Minister for Finance if his Department is conducting any performance review for the rent-a-room relief scheme to outline the effectiveness of the scheme, issues arising from its implementation and exploring whether there is any benefit from the scheme to the wider issue of student accommodation. [38818/23]
View answerThe rent-a-room scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation.
In accordance with section 216A of the Taxes Consolidation Act 1997, an individual who lets a room or rooms in her or his sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2023. Individuals who let a room/s to students and meet the above eligibility criteria are able to avail of rent a room relief.
Although the income is exempt it must be included in the individual’s tax return for the year in question. This relief does not apply to companies or partnerships.
Initially, in 2001, the upper income threshold was set at £6,000 but this has been increased several times over the intervening period (most recently in Finance Act 2016) to €14,000.
The scheme is not currently the subject of a review by my Department of type suggested by the Deputy.
