Written Answers Nos. 479-498
479. Deputy Paul Murphy asked the Minister for Finance if he is aware of the IACP Pre-Budget Submission 2024; if he will ensure that their main demands as per (details supplied) are included in the upcoming Budget; and if he will make a statement on the matter. [38835/23]
View answerAs 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 can confirm that the pre-Budget submission to which the Deputy refers was received on Wednesday 30 August 2023 and acknowledged on the same date.
The contents will be considered in the context of the forthcoming Budget, however, as the Deputy will be aware, it is a long-standing 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.
480. Deputy Darren O'Rourke asked the Minister for Finance the quantities of duty free alcohol and tobacco products brought into Ireland from the United States duty free zone in 2022 and to date in 2023, in tabular form. [38857/23]
View answerI am advised that Revenue, as Ireland’s tax and customs administration, is responsible for controlling the importation and exportation of goods in accordance with the Union Customs Code (UCC) and relevant national legislation. This includes the application of duty-free allowances and the collection of any additional duties due.
The duty-free tobacco and alcohol allowances for individuals travelling from outside the EU, including the United States, are:
- 200 cigarettes, 100 cigarillos, 50 cigars, or 250g smoking tobacco;
- 1 litre of spirits or 2 litres of other alcoholic drinks with no more than 22% alcohol.
I am advised that Revenue cannot provide details of the quantity of duty-free alcohol and tobacco products brought into Ireland from the United States by individuals for personal use as there is no requirement for such persons to declare these goods once they comply with the aforementioned limits and the goods are for personal use.
481. Deputy Peter Burke asked the Minister for Finance if he has any plans to amend the variable percentage rate offered for prize bonds set at 0.35% of the total value of prize bonds outstanding; and if he will make a statement on the matter. [38862/23]
View answerI 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 new variable rate for the prize fund is 1.00%. The rates are effective from 1 October 2023. The changes were published via the statesavings.ie website.
482. Deputy Fergus O'Dowd asked the Minister for Finance if he will examine the circumstances where a case is referred to the ombudsman in respect of cases where there are two names on a bank account and the case cannot be investigated if one or the other joint account holders will not engage with the FSPO (details supplied); if he would consider strengthening the powers of the Ombudsman to address this type of anomaly; and if he will make a statement on the matter. [38867/23]
View answerThe FSPO is the statutory body established to resolve complaints from consumers, including small businesses and other organisations, against financial service providers and pension providers. The FSPO offers an independent, fair, impartial, confidential and free service to resolve complaints through either informal mediation, leading to a potential settlement agreed between parties, or formal investigation and adjudication, leading to a legally binding decision. The functions of the FSPO are set out in the Financial Services and Pensions Ombudsman Act 2017.
Where a complaint is made to the FSPO concerning a joint account or a joint policy, the FSPO must recognise that all parties who own that account or policy have rights, entitlements and potential liabilities arising in relation to such an account or policy. In addition, certain data protection issues arise.
Whether the complaint is settled by way of agreement between the parties, using the confidential Dispute Resolution Service of the FSPO, or is the subject of a formal investigation by the FSPO, leading to a legally binding decision, the rights and obligations of all joint account holders or joint policyholders are thereby affected.
All owners of the account or policy must therefore be agreeable to the investigation of the complaint by the FSPO, and the processing of their personal data by the FSPO. Therefore, the signature of each joint owner of the policy or account is required, as evidence of their consent.
The FSPO fully recognises the difficulty for complainants who are unwilling or unable to obtain the agreement of another party to the investigation of a complaint. It is acknowledged that agreements break down and that complainants may find themselves in difficult circumstances.
Where a complainant indicates a difficulty in securing the signature of another party to an account or policy, the FSPO reviews the individual circumstances to form an understanding as to the reason for the difficulty, and where possible, offers guidance as appropriate, as to what options may be available.
The FSPO understands that in such circumstances, a decision by it not to progress a complaint without the consent of all owners of the account or policy, will be disappointing, however, the FSPO must respect the rights and entitlements of all parties to an account or policy.
The FSPO cannot give preference to the position of one account or policyholder, over the other joint owner/s.
Instances of suspected or alleged fraud should be reported to the complainant's local Garda station as it is a criminal matter, and complainants should engage with their financial service provider as early as possible to allow them to investigate the issue and try to rectify the matter.
It should be noted that the Financial Services and Pensions Ombudsman (FSPO) cannot investigate instances of fraud, as this is a matter for An Garda Síochána. However, the FSPO can investigate a complaint which relates to service failings of the financial service provider in dealing with a customer who suspects fraud on their account.
483. Deputy Louise O'Reilly asked the Minister for Finance if the State is in line for a rebate on its contribution to the EU given the EU's reported higher-than-expected customs duties and VAT receipts; if so, the estimated value of this rebate; and if he will make a statement on the matter. [38915/23]
View answerIreland does not receive rebates on its contributions to the EU budget. However, annual balancing exercises are carried out in respect of GNI and VAT based own resources to ensure that each Member State ends up paying the correct amount in respect of any given year. This involves retrospective comparison of the forecasts for GNI and VAT provided by the member states for the prior year with the actual outturn.
EU budget contributions are calculated through a system known as Own Resources, of which there are currently four types in operation:
• VAT-based own resource
• Traditional own resources (customs duties and levies)
• Non-recycled plastic packaging waste based own resource
• GNI-based own resource
Under the VAT-based contribution , Member States are required to apply a uniform call rate of 0.3% to the national VAT base. The VAT bases for all Member States are first harmonised and then capped at 50% of the GNI base before the levy is applied. In 2022, Ireland’s VAT contribution was €323 million.
Traditional own resources comprise of customs duties on imports from outside the EU. These are collected by Member States on behalf of the EU. 25% is retained by Member States as collection costs. These duties are levied at rates based on the common customs tariff. In 2022, Ireland’s Traditional Own Resource payments were €482 million.
Contributions based on non-recycled plastic packaging waste are calculated from the amount of non-recycled plastic packaging waste that each Member State reports to Eurostat. A uniform call rate of €0.80 per kilogram is applied to plastic packaging waste that is not recycled, with a mechanism in place to avoid excessive contributions from less wealthy Member States. In 2022, Ireland’s plastic-based contribution was €197 million.
The main source of revenue for the EU Budget is the GNI-based own resource. This is calculated proportionately to the Member States’ GNI, used as an indicator of a country’s economic strength, as a share of overall EU GNI. In 2022 Ireland’s GNI contribution was €2.555 billion.
The GNI-based own resource has gradually become the main source of revenue for the EU budget, now representing about 70 per cent of its revenue. As the EU Budget should always be in balance, the GNI-based own resource covers the difference between the overall level of expenditure and the proceeds generated from the VAT, traditional customs based, and non-recycled plastic packaging waste own resources and other revenue including contributions from non-EU countries to certain programmes, interest on late payments and fines.
The payment of VAT and GNI contributions are based on projections, with Member States required to submit data on an annual basis. The following year when the actual figures are available, a "true-up" calculation is prepared and amounts are paid to, or refunded from the EU.
The last year that Ireland received a refund on contributions paid to the EU Budget was 2019. As the GNI outturn for Ireland has since been higher than forecast due to stronger than expected economic performance, Ireland has paid in additional funds from 2020-2022 as a subsequent year adjustment as follows:
|
Gross GNI and VAT contributions (€mn) |
Subsequent year adjustment (€mn) |
Percentage adjustment |
|
|
2019 |
1,992 |
-44.5 |
-2.20% |
|
2020 |
2,187 |
84.5 |
3.90% |
|
2021 |
2,740 |
185.7 |
6.80% |
|
2022 |
2,727 |
101.5 |
3.72% |
484. Deputy John Lahart asked the Minister for Finance if, in the context of Budget 2024, he has any plans to empower the charity sector to seek philanthropic support through a strong incentivisation of fundraising and giving, which would ultimately help to alleviate some of the significant pressure on the Exchequer; and if he will make a statement on the matter. [38937/23]
View answerAs the Deputy may be aware, the Charitable Donation Scheme allows tax relief on qualifying donations made to approved bodies. Section 848A of the Taxes Consolidation Act, 1997 provides that where an individual makes a charitable donation, the approved charitable body receiving it can claim a refund of income tax paid on that donation at a blended 'grossed-up' rate of 31%. The requirements of the scheme include:
• A minimum donation of €250 per annum must be made;
• The donor or anyone connected with the donor cannot get a benefit of any kind resulting from the donation; and
• The donor must have paid income tax of an amount equal to the income tax on the grossed up amount of the donations in order for the body to receive a refund of tax.
More information on the Charitable Donations Scheme can be found on Revenue's website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-36/36-00-17.pdf .
Insofar as the incentivisation of donating to charities might relate to changes to taxation measures such as s. 848A, it is a long-standing 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. However, I would add that any such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
485. Deputy Carol Nolan asked the Minister for Finance if he is aware of concerns expressed by the Irish restaurant and hospitality and tourism sectors regarding the adverse impact of the re-introduction of the 13.5% VAT rate; if he will consider suspending the increase from 9-13.5%; and if he will make a statement on the matter. [38993/23]
View answerAs 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 reverted to the 13.5% VAT rate on 1 September 2023. The estimated cost of the final extension of the measure is €300m. This extension strikes a balance between the cost to public finances and the provision of support for these sectors.
I made it clear at the time of the most recent extension that it was not intended to further extend this 9% reduced rate after 1 September 2023. 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 would 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.
486. Deputy Róisín Shortall asked the Minister for Finance if he will respond to matters raised in correspondence (details supplied) regarding the importing of vehicles bought from the United Kingdom to Ireland; if his Department will examine the possibility of introducing a system whereby a person importing a vehicle purchased from the United Kingdom can know, before purchasing the vehicle, the full amount that they will have to pay for the vehicle after additional charges such as VAT, VRT and customs duty are applied to the overall cost of the vehicle; and if he will make a statement on the matter. [39001/23]
View answerSince the UK left the EU Single Market and Customs Union, from 1 January 2021, the movement of goods from Great Britain into the EU is an importation from a third country and, in accordance with the terms of the Withdrawal Agreement, such goods must be declared to Customs, and are liable to customs duty (if applicable) and VAT at 23% at import. Under customs law, VAT at import is chargeable on the customs value of the goods. Usually this will be the purchase price, plus the cost of transport and insurance, plus any customs duties payable. The EU-UK Trade and Cooperation Agreement (TCA) eliminated tariff duties for trade between the EU and Great Britain where the relevant rules of origin are met. This means that if vehicles are imported which are of UK origin, then a 0% duty applies, whereas duty of 10% applies to vehicles which are not of UK origin. Also, under the terms of the Protocol on Ireland/Northern Ireland and more recently the Windsor Framework, the movement of goods between Northern Ireland and the EU effectively is regarded as a movement within the EU.
In addition to these VAT and Customs requirements, imported vehicles also require to be registered within 30 days of entering the State and Vehicle Registration Tax (VRT) is payable. This is generally based on the open market selling price (OMSP) of the vehicle which is established when the vehicle is presented for registration. Revenue provides a VRT calculator on its website to assist taxpayers in estimating the likely VRT charge for a very wide range of common makes and models of cars, small commercial vehicles, and motor bikes; however, this facility does not cover situations where a vehicle’s specification is unusual, complex or specialised, and in such cases it is not possible to indicate the likely OMSP until the vehicle is examined.
The Deputy is asking about the importation of camper vans. Under law, VRT on camper vans is charged at a rate of 13.3% of the OMSP of the vehicle at the time of registration. I understand from Revenue that camper vans tend to have very individual specifications, and that the details are material to establishing the appropriate OMSP. This means that each camper van needs to be separately examined before its OMSP can be established and the appropriate VRT assessed by Revenue. Consequently, it is not possible to provide an estimate of the amount of VRT in advance of examination of the vehicle at the time of registration.
Further information is available on the Revenue website or by contacting the Revenue’s National VRT Service at (01) 7383619 between 09.30am and 13.30pm (Monday - Friday).
487. Deputy Cathal Crowe asked the Minister for Finance if he will intervene to ensure that a bank (details supplied) shares its software with another bank as it takes over the operation of in-store ATMs in Ireland; and if he will make a statement on the matter. [39008/23]
View answerI wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including a bank's policy in relation to ATM machines, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. This independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding the above, officials in my Department reached out to the bank in question who provided the below response:
"There are a number of ATM operators including Retail Banks and Independent ATM deployers (IADs). Each bank/IAD provides their own software to support their network of ATM’s. AIB customers are unable to retrieve their balance from any non-AIB owned ATMs. Customers can view their account balance through AIB Mobile, Internet or Phone Banking, in any AIB Branch or through any of our AIB owned ATMs."
488. Deputy Paul McAuliffe asked the Minister for Finance if there are any plans to increase the tax credits available to persons who have coeliac disease in purchasing food in the context of the current cost-of-living crisis; and if he has any plans to reform the system to make it easier to make a claim for purchases. [39018/23]
View answerThe position is that section 469 of the Taxes Consolidation Act 1997 (TCA 1997) provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses.
Only “health expenses” incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a “practitioner”, will qualify for tax relief.
Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”.
Health expenses are defined as “expenses in respect of the provision of health care” and may include, but are not limited to, the following:
• the services of a practitioner,
• diagnostic procedures carried out on the advice of a practitioner,
• maintenance or treatment in a hospital necessarily incurred in connection with the services of a practitioner or diagnostic procedures carried out on the advice of a practitioner, and
• drugs or medicines supplied on the prescription of a practitioner.
A practitioner is a person who is:
• registered in the register established under section 43 of the Medical Practitioners Act 2007,
• registered in the register established under section 26 of the Dentists Act 1985, or
• in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there.
Coeliac patients may claim income tax relief in respect of the cost of foods that have been specifically manufactured to be gluten free. Such food may be considered an allowable expense for the purposes of a health expense claim. However, this excludes costs incurred in relation to gluten free alcohol.
A letter from a doctor stating that the taxpayer is a coeliac sufferer is generally acceptable as proof of entitlement to income tax relief on such costs.
The tax relief can be claimed on qualifying expenses by filing an Income Tax Return. If the person is a Pay As You Earn (PAYE) taxpayer, he or she also has the option to claim relief in real time during the year. Claims can be made online using myAccount or the Revenue Online System (ROS). Further details are available on the Revenue website at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/how-do-you-claim-health-expenses.aspx.
As with all claims for tax relief, Revenue may ask the taxpayer to provide additional supporting documentation to prove his or her entitlement to the tax relief claimed. The type of information that a taxpayer will need to provide will depend on the nature of the expense incurred and the relief being claimed.
If a taxpayer is requested to provide receipts to support a claim for income tax relief on the cost of gluten free foods, the receipts and documents provided by the taxpayer should contain sufficient information to satisfy the Revenue office dealing with the claim that the costs incurred by the taxpayer relate to foods, which have been specifically manufactured to be gluten free. The quickest and easiest way for taxpayers to submit their receipts is through the Receipts Tracker Service, which can be accessed through myAccount or ROS at: www.revenue.ie/en/online-services/index.aspx.
Further guidance on claiming tax relief for qualifying health expenses can be found in Tax and Duty Manual Part 15-01-12, which can be accessed at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
As the Deputy will be aware, this Government has made available €12 billion in direct support to households and businesses to help with the cost of living issue, with a focus on assisting those most in need.
Finally, I am satisfied that income tax relief for qualifying health expenses in its current form is appropriately calibrated and is the most appropriate use of fiscal resources. As such, I have no plans to enhance the relief.
489. Deputy Kathleen Funchion asked the Minister for Finance to make inquiries on behalf of a person (details supplied) who has still not received payment for returns they made through Revenue/MyGov.ie; and if he will make a statement on the matter. [39059/23]
View answerI am advised by Revenue that the Health Expenses incurred by the person concerned in 2022 were included on an amended Tax Credit Certificate which issued to them on 18 July 2022. This provided partial relief through payroll by way of additional tax credits for the 2022 tax year. The balance of the relief for the Health Expenses can be claimed by the person by filing an Income Tax Return in respect of 2022.
490. Deputy John Lahart asked the Minister for Finance following several inquiries from younger persons eager to access the property ladder, if he is considering measures such as individual savings accounts (ISAs) to enable first-time buyers to work towards a deposit, which would also act as an alternative mode of investment; and if he will make a statement on the matter. [39076/23]
View answerIn 2021 the Government launched the Housing for All (HfA) strategy, a multi-annual, multibillion euro plan which will improve Ireland’s housing system and deliver more homes of all types for people with different housing needs. HfA provides for a range of direct expenditure measures to support to assist first time buyers.
In addition, the tax-based Help To Buy scheme (HTB) assists 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. HTB allows claimants to select all or any of the previous four tax years for the purposes of calculating the refund available to them. Enhancements to the scheme were provided for in Section 8 of the Financial Provisions (COVID-19) (No. 2) Act 2020 such that the maximum rebate is currently the lower of:
• €30,000 (increased in 2020 from €20,000);
• the total income tax and DIRT paid in the previous four years; or
• 10 per cent (increased in 2020 from 5 per cent) of the purchase price of a new build property, including self-builds.
The scheme, which is scheduled to sunset at the end of 2024, is open to all qualifying first-time buyer/builder taxpayers regardless of their current tenure status and any difficulties of the type set out in the question.
In relation to the specific proposal for a special savings incentive account type measure, and as the Deputy will appreciate, decisions regarding tax incentives and reliefs are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more efficient than a direct expenditure intervention.
491. Deputy Paul Murphy asked the Minister for Finance if he will advise, in relation to oversight and accountability of the FSPO, how a person can submit a complaint in relation to the FSPO; and who this office is accountable to. [39086/23]
View answerThe Financial Services and Pensions Ombudsman (FSPO) is committed to providing a receptive service that is delivered in an accessible and inclusive manner, responsive to the needs of its customers. The FSPO adheres to ‘Our Public Service’, a framework developed by the Department of Public Expenditure, NDP Delivery, and Reform for innovation and continuous development in Ireland’s public service.
A customer may make a customer service complaint to the FSPO if the service falls short of what they consider acceptable. Customers may contact the Customer Service Unit by email to servicecomplaints@fspo.ie, by phone on + 353 1 567 7000 or by writing to the FSPO at: Lincoln House, Lincoln Place, Dublin 2, D02 VH29.
All complaints will be dealt with promptly and in an objective and courteous manner.
The FSPO operates a Customer Charter and Customer Action Plan, which outline the standard of service and behaviour underpinning all interactions with customers and describe the FSPO’s policy of encouraging feedback from its customers, evaluating that feedback and, where possible, continuously improving on the quality of service offered.
While I have no role in the investigation of complaints brought to the FSPO under the Financial Services and Pensions Ombudsman Act 2017 (the Act), there is a Service Level, Oversight and Performance Delivery Agreement in place between the Department of Finance and the Office of the Financial Services and Pensions Ombudsman. This is in accordance with the Code of Practice for the Governance of State Bodies (2016), which sets out the arrangements for oversight, monitoring and reporting. It also sets out the FSPO’s commitments regarding the operational roles, responsibilities, outputs and outcomes.
Under Section 40 of the Act, the Financial Services and Pensions Ombudsman Council has the function to keep under review the efficiency and effectiveness of the Ombudsman, and to advise myself as Minister, either at my request or on its own initiative, on any matter relevant to the performance of the functions of the Ombudsman.
The Ombudsman prepares an Annual Report on the performance of the functions of the Ombudsman, and financial statements of account for the preceding year under Section 24 of the Act. The Report is presented to the Minister for Finance and the Minister for Social Protection and is laid before the Houses of the Oireachtas. The Ombudsman is also accountable to the Public Accounts Committee and to other Oireachtas Committees under Sections 22 and 23 of the Act.
492. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the estimated full-year cost if the sea-going naval personnel tax credit were increased to €1,800. [39095/23]
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.
493. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the estimated cost if the 9% VAT rate on electricity and gas were applied for the period of 1 November 2023 to 31 March 2024. [39096/23]
View answerAs the Deputy will be aware VAT returns are collected every two months. To avoid underpayments of VAT arising from error or fraud, VAT rates are changed at the start of these VAT periods rather then at other times of the year. The estimated cost of changes are therefore calculated on the basis of these VAT periods.
The cost of applying a 9% VAT rate to gas and electricity from 1 November 2023 to 29 February 2024 is estimated to be €118.7m. If the measure was extended from 1 November 2023 to 30 April 2024 the estimated cost is €176.1m.
494. Deputy Louise O'Reilly asked the Minister for Finance further to Parliamentary Question No. 269 of 18 April 2023, the penalty for a business which refuses card payment; the legislation concerned; and the penalty for such an offence. [39113/23]
View answerThe regulations introduced by the National Transport Authority last year regarding requirements for cashless payment facilities, referred to in Parliamentary Question No. 269 of 18 April 2023, apply only to small public service vehicles and they do not have general application to all businesses. These regulations state that failure by a driver of a taxi to carry a functioning cashless payment device or to accept cashless payment can both be subject to a penalty of €200.
The general position for businesses is where a business places no restrictions on the means of payment it is prepared to accept, it must accept cash as legal tender when offered by a customer to settle a debt that has arisen. If a business specifies payment must be in a form other than cash, for example through a sign stating, “cash not accepted” or “card payment only” at the store entrance or check out area, the customer cannot subsequently claim a legal right to pay in cash. The converse also applies if a business only accepts cash and will not accept payment by card.
However, the Deputy should also be aware that the Department of Finance is preparing a new National Payments Strategy to be completed in 2024 as required by one of the recommendations in the Retail Banking Review, which was approved by Government and published in November 2022. One of the key objectives of the Strategy is to ensure “Access and Choice” in the form of promoting reasonable options for consumers and small business. A key component of the strategy is a payments roadmap which will examine trends and developments in digital payments (including card) and consider how best to achieve the overarching objective of access and choice in the payment methods used in Ireland, be it cash, card, etc.. I expect the Strategy to examine the issues involved holistically and make recommendations that will ensure that the payments system enables consumers to have access to all the necessary payment means needed to fully participate in society and the economy.
The Deputy should also be aware that on 28 June the European Commission put forward two proposals within a ‘single currency package’ to ensure that individuals and businesses can continue to access and pay with euro banknotes and coins across the euro area, and to set out a framework for a possible new digital form of the euro that the European Central Bank could choose to issue in the future, as a complement to cash.
495. Deputy Jim O'Callaghan asked the Minister for Finance if he will provide an update, in tabular form, on the number of businesses in each county that have successfully applied for inclusion under the temporary business energy support scheme; the estimated value or worth of the support in each county; and if he will make a statement on the matter. [39148/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs arising from the Russian invasion of Ukraine.
Sections 100 to 102 of the Finance Act 2022 make provision for the TBESS. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 31 July 2023. 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.
Section 7 of the Finance Act 2023 provided for amendments to sections 100 and 101 of Finance Act 2022. Section 7 Finance Act 2023 reduced the energy cost threshold for businesses from a 50% increase to a 30% increase in energy costs, effective from 1 September 2022. It also increased the amount of temporary business energy payment from 40% of eligible costs to 50% of eligible costs for claim periods from 1 March 2023, subject to monthly limits.
The claim period for TBESS is a calendar month from 1 September 2022 to July 31 2023. Revenue will continue to process claims from eligible businesses until 30 September 2023. Claims cannot be made after this date.
I am advised by Revenue of the following registrations and claims as of 31 August 2023:
|
County |
Registration Applications |
Registrations Approved |
Approved Claims |
Value of Approved Claims |
Value of Paid Claims |
|
€m |
€m |
||||
|
Carlow |
441 |
433 |
813 |
1.86 |
1.7 |
|
Cavan |
665 |
657 |
1,118 |
2.53 |
2.41 |
|
Clare |
804 |
799 |
1,329 |
2.77 |
2.56 |
|
Cork |
3,965 |
3,919 |
7,197 |
14.42 |
13.82 |
|
Donegal |
1,312 |
1,298 |
2,195 |
4.28 |
4.04 |
|
Dublin |
6,782 |
6,650 |
13,187 |
38.02 |
35.87 |
|
Galway |
1,791 |
1,767 |
3,118 |
7.56 |
7.3 |
|
Kerry |
1,339 |
1,321 |
2,210 |
4.36 |
4.2 |
|
Kildare |
1,096 |
1,082 |
2,123 |
5.19 |
4.92 |
|
Kilkenny |
720 |
705 |
1,193 |
2.24 |
2.11 |
|
Laois |
433 |
429 |
759 |
1.41 |
1.34 |
|
Leitrim |
260 |
255 |
386 |
0.51 |
0.48 |
|
Limerick |
1,330 |
1,312 |
2,373 |
5.35 |
5.15 |
|
Longford |
309 |
302 |
553 |
1.14 |
1.02 |
|
Louth |
866 |
856 |
1,570 |
3.19 |
3 |
|
Mayo |
955 |
944 |
1,585 |
3.25 |
3.09 |
|
Meath |
1,116 |
1,100 |
2,054 |
4.51 |
4.19 |
|
Monaghan |
635 |
627 |
1,021 |
2.48 |
2.41 |
|
Offaly |
483 |
477 |
818 |
1.49 |
1.38 |
|
Roscommon |
384 |
377 |
700 |
1.5 |
1.44 |
|
Sligo |
437 |
429 |
765 |
1.62 |
1.5 |
|
Tipperary |
1,284 |
1,264 |
2,082 |
3.56 |
3.25 |
|
Waterford |
920 |
911 |
1,679 |
3.79 |
3.52 |
|
Westmeath |
688 |
681 |
1,264 |
2.26 |
2.07 |
|
Wexford |
1,085 |
1,073 |
1,878 |
3.84 |
3.75 |
|
Wicklow |
752 |
745 |
1,338 |
2.72 |
2.45 |
|
Total Businesses |
30,852 |
30,413 |
55,308 |
125.85 |
118.98 |
I am advised by Revenue that applications received from businesses are reviewed to determine eligibility and this accounts for the variance in the figures for ‘all applications’ and ‘approved registrations’. In addition, Revenue is publishing detailed statistical reports in relation to the TBESS, these reports are available on Revenue’s website.
496. Deputy Steven Matthews asked the Minister for Finance the position regarding the review of the deemed disposable system relating to exchange traded funds (EFTs); and if he will make a statement on the matter. [39152/23]
View answerOn 6 April 2023, I published the Terms of Reference for a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This review will look at a range of issues relevant to the funds sector including taxation in line with the recommendations of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.
The review will specifically examine the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible; and to do so with a net revenue-raising or neutral mandate. Exchange Traded Funds (ETFs) are an important part of the funds landscape and will therefore fall within the scope of the review.
A public consultation was launched on the Department's consultation portal - consult.finance.gov.ie/en - during the summer and responses may be submitted before the deadline of 15 September 2023. A letter was sent to all members of the Oireachtas highlighting the publication of the consultation paper in June.
While it would not be appropriate to presuppose any outcomes of the review, I would encourage all stakeholders with an interest in matters relating to the funds sector, including ETFs specifically, to fully engage with the consultation process. The Review Team will report to me by summer 2024.
497. Deputy Danny Healy-Rae asked the Minister for Finance if he will increase the inheritance tax exemption, given that the value of property has increased significantly in recent times; and if he will make a statement on the matter. [39157/23]
View answerI assume Deputy Healy-Rae is referring to an increase in the Capital Acquisitions Tax "Group thresholds" in his question.
For the purposes of Capital Acquisitions Tax (CAT) the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum life-time tax-free threshold. This is known as the “Group threshold” below which gift or inheritance tax does not arise and relates to the allowance referred to in your question. Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT (at the 33% rate) applies on the excess over the tax free threshold.
There are three separate Group thresholds based on the relationship of the beneficiary to the disponer. The Group A threshold (currently €335,000) applies where the beneficiary is a child of the person giving it. The Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer. The Group C threshold (currently €16,250) applies in all other cases.
While the thresholds were reduced during the economic downturn, the Government has made significant changes to the CAT thresholds in recent years. The thresholds have been increased to the extent allowable by the resources available.
In Budget 2019, the Group A threshold which applies primarily to gifts and inheritances from parents to their children was increased from €310,000 to €320,000 and again to €335,000 in Budget 2020. This increase was in response to concerns about the potential tax burden in particular on the inheritance of the family home.
It is worth noting that there is an exemption from CAT where dwelling houses are bequeathed by individuals who live there to successors who:
* have lived there for a specified period of time before the inheritance,
* will continue to live there for a specified period of time after the inheritance, and
* who have no beneficial interest in any other residential property at the date of the inheritance.
The policy rationale behind the dwelling house exemption is to protect the family home by ensuring that a beneficiary who has been living with the disponer, and will continue to reside there after the inheritance, does not have to sell that family home to pay a CAT liability and thus will continue to have somewhere to live.
Regarding inheritance tax changes, it is important to note that there would be a significant cost in making substantial changes to the CAT thresholds and/or rate of CAT. Recent Revenue estimates put the full cost of increasing the CAT Group A threshold from its current €335,000 to €400,000, for example, at approximately €52 million. The estimated cost of increasing the Group B threshold from its current €32,500 to €35,000 would be €9 million, while the cost of increasing the Group C threshold from €16,250 to €19,000 is estimated be €4 million.
The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
498. Deputy Niall Collins asked the Minister for Finance his views on a submission (details supplied); if his Department can support this submission; and if he will make a statement on the matter. [39160/23]
View answerAs Minister for Finance, I receive a large number of pre-budget submissions on a wide range of issues. These submissions are normally sent directly to my office where, upon receipt, they are acknowledged by my Department.
I can confirm that the pre-Budget submission to which the Deputy refers had not previously been sent to my office, but has now been received via the details supplied on Tuesday 5 September 2023 in accompaniment to this question.
The contents will be considered in the context of the forthcoming Budget, however, as the Deputy will be aware, it is a long-standing 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.
