Paul Murphy
Question:316. Deputy Paul Murphy asked the Minister for Finance if the National Asset Loan Management Ltd is still the owner of a property (details supplied). [56604/23]
View answerNational Asset Management Agency
Questions (316)
Written answers
As the Deputy may be aware, NAMA does not typically own or control properties; rather NAMA owns loans for which the properties act as security. The properties securing NAMA’s loans are owned and controlled by their registered owners or appointed receivers in the case of enforcement.
I wish to advise the Deputy that by virtue of Sections 99 and 202 of the NAMA Act, NAMA is legally precluded from disclosing confidential debtor information, including specific details relating to secured assets.
Financial Services
Questions (317)
John Brady
Question:317. Deputy John Brady asked the Minister for Finance if a scheme will be implemented to allow homeowners to buy back their mortgage from a vulture fund; and if he will make a statement on the matter. [56616/23]
View answerWritten answers
The Government is acutely aware of recent events which are impacting on mortgage interest rates and the strain these increases place on households.
On 31 August 2023, I met with the mortgage industry including the Banking and Payments Federation Ireland (BPFI), CEOs and senior representatives of all the main mortgage lenders and servicers and I made it clear that banks and all other mortgage entities should be fully aware of the significant challenges that some of their customers are facing and that lenders and servicers should respond by assisting their customers who are experiencing difficulty.
I also highlighted that greater clarity should be provided to customers on the possibility of switching provider and that this option should be fully supported by all mortgage entities, including the existing mortgage creditor. Further, I supported the steps taken by the Central Bank to ensure that firms proactively deal with emerging difficulties for their customers since the increase in interest rates.
The Central Bank requires firms to enhance the range of supports available to borrowers in or facing arrears and to have sufficient operational capacity to manage applications by borrowers to switch their mortgage or mortgage provider.
Arising from that meeting, on 6 September the Banking and Payments Federation of Ireland announced a number of further initiatives by the mortgage industry. This included:
• a second phase of a ‘Dealing With Debt’ campaign to highlight new and existing supports for concerned mortgage customers;
• mortgage servicing firms and MABS to collaborate on an expansion of streamlined customer engagement framework; and
• the provision of initial eligibility criteria by the main lenders to provide clear guidelines for home mortgage customers of credit servicing firms who are seeking to switch their mortgage.
This means that, for the first time, there is now an agreed industry wide set of initial eligibility criteria to facilitate people to redeem an existing mortgage with a non-bank creditor and to refinance it with new credit from a credit institution or other lender.
Credit servicing firms have committed to working with these criteria to support customers switching and to ensure they are aware that they may have options to switch their mortgage.
The main mortgage broker representative bodies, Brokers Ireland and the Association of Irish Mortgage Advisors, have also agreed to communicate these criteria to borrowers seeking to switch their home loans. In order to be eligible to switch under these guidelines, customers need to be making full capital and interest repayments on their mortgage. In addition, customers must have no arrears on their home mortgage or any other lending in the past two years.
Once customers meet these and other initial criteria, applications will be assessed on a case-by-case basis in line with individual lender credit policy.
It also important to note that there is a strong consumer protection framework in place for mortgage borrowers and this framework is in place regardless of the type of regulated entity with whom they are dealing, such as a bank, a retail credit firm or a credit servicing firm. I would also like to indicate that if a customer is not satisfied with how a regulated firm is dealing with them in relation to the handling of their mortgage, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes (including the Code of Conduct on Mortgage Arrears which applies to any loan that is secured on a primary residence) and regulations or other financial services law, they should make a complaint directly to the regulated firm.
If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the statutory Financial Services and Pensions Ombudsman.
Furthermore, I would advise that any person who is experiencing difficulty in relation to their mortgage should seek the assistance of the Money Advice and Budgeting Service (MABS). This is a State funded service for people whose home is in mortgage arrears or in mortgage difficulty and it can provide free legal and financial advice.
Separately, as the Deputy will know Budget 2024 provided for a temporary one-year mortgage interest tax relief scheme for homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022.
Qualifying homeowners will be eligible for mortgage interest tax relief in respect of the increased interest paid on that loan between the calendar year 2022 compared to the calendar year 2023 at the standard rate of income tax (20%), capped at €1,250 per property.
Tax Credits
Questions (318)
Colm Burke
Question:318. Deputy Colm Burke asked the Minister for Finance if he will consider introducing a refundable tax credit that would return unused portions of the PAYE tax credit to low-income workers; and if he will make a statement on the matter. [56657/23]
View answerWritten answers
The position is that the matter of refundable tax credits was examined as part of this year’s Tax Strategy Group (TSG) process in advance of Budget 2024 and the analysis and findings of the review were published in the Income Tax TSG paper, which is available on the Department of Finance’s website at the following link: www.gov.ie/pdf/?file=assets.gov.ie/263911/70cb5fff-21ee-4213-bf52-fd42453e7d42.pdf#page=null.
The review explored the concept of refundable tax credits, provided an overview of previous relevant studies, an overview of refundable tax credits in other countries and provided an economic analysis of refundable tax credits.
Overall, the review identified a number of issues concerning refundable tax credits. Introducing such credits would represent a fundamental change to the personal tax system. On the one hand refundable tax credits could help tackle in-work poverty and increase vertical equity. However, there are already a wide range of existing policies tackling poverty and direct supports are a simpler and more effective means of providing assistance to low income households.
Additionally, the introduction of refundable tax credits could potentially prove to be very costly and provide relatively little benefit to the majority of individuals, including those working full time and earning at least the national minimum wage because such workers generally fully utilise their tax credits. Tentative estimates provided by Revenue suggest a cost in the region of €1 billion in relation to making personal tax credits refundable. Furthermore, refundable tax credits could also have potential behavioural impacts on labour supply and reduce the incentive to work or to take on additional work. Finally, implementing a system of refundable tax credits would result in operational and administrative complexities as well as potentially reducing eligibility for some existing supports for low income households.
For the reasons outlined above, I have no current plans to introduce a system of refundable tax credits.
Tax Yield
Questions (319)
Ivana Bacik
Question:319. Deputy Ivana Bacik asked the Minister for Finance if the proceeds of the vacant homes tax and residential zoned land tax respectively will be retained centrally by the Exchequer or returned to the relevant local authority where it was raised; and if he will make a statement on the matter. [56679/23]
View answerWritten answers
As the Deputy will be aware, the Vacant Homes Tax (VHT) aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022. A residential property will be within the scope of VHT, if it has been occupied as a dwelling for less than 30 days in a chargeable period.
VHT operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable, depends on the self-assessed returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax. The first chargeable period ended on 31 October 2023 with the first self-assessed returns due on 7 November 2023 and the associated tax payable on or before 1 January 2024.
The revenue raised by VHT will accrue to the Exchequer.
The Residential Zoned Land Tax (RZLT) is a new tax which was introduced in Finance Act 2021. It seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefited from investment in services and are capable of being developed forward for housing.
The RZLT measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. However, it is important that affected landowners have sufficient opportunity to engage with the mapping process and that a fair and transparent process is applied when local authorities consider what land should be placed on the RZLT maps. Therefore, as part of Budget 2024, it was decided to extend the liability date of the tax by one year, from February 2024 to February 2025. The policy rationale behind this deferral is to allow for the annual mapping cycle to complete and afford landowners another opportunity to raise issues regarding the zoning status of their land.
Yield collected by the RZLT will also accrue to the Exchequer.
Tax Credits
Questions (320)
Ivana Bacik
Question:320. Deputy Ivana Bacik asked the Minister for Finance the number of persons who have claimed the renters credit in each month since its introduction; and if he will make a statement on the evidence used to measure its efficacy in easing financial burdens on those renting. [56694/23]
View answerWritten answers
The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by Finance Act 2022 and is available in respect of qualifying payments made during the 2022 to 2025 years of assessment inclusive.
Claims for the Rent Tax Credit for the 2022 tax year can only be made by completing an Income Tax Return. To date, over 260,000 PAYE taxpayers have made Rent Tax Credit claims for the 2022 tax year. For self-assessed taxpayers, the Rent Tax Credit for 2022 is claimed when filing the Income Tax Return, due on 31 October 2023, through the Revenue Online Service (ROS). Revenue statistics for the 2022 tax year covering all taxpayers will be available in Q2 2024.
For claims relating to the 2023 year of assessment onwards, PAYE taxpayers could claim in-year relief using Revenue’s Real Time Credit facility on myAccount, or by completing an Income Tax Return after the end of the year. Both options are available to taxpayers through Revenue’s on-line facilities.
I am advised by Revenue that, to date, over 130,000 claims for Rent Tax Credit have been made by PAYE taxpayers for the 2023 tax year. It is expected that the number of claims for 2023 will continue to increase, particularly in the first quarter of 2024, as PAYE taxpayers file their Income Tax Returns after the end of the year.
In addition, however, it should be noted that Section 865 of the Taxes Consolidation Act 1997 allows claims for a year of assessment to be made within 4 years of 31 December of that year. Therefore, taxpayers have until 31 December 2026 to claim the Rent Tax Credit for 2022 and until 31 December 2027 to claim for 2023.
I am advised by Revenue that it is not practicable to provide accurate month by month figures in respect of Rent Tax Credit claimants. Taxpayers may make claims or amendments to claims for tax credits at any time within the 4-year limit mentioned above for a variety of reasons. These may include where a taxpayer changes tenancy or, in the case of an Income Tax Return amendment, for a reason unrelated to the Rent Tax Credit. It would be difficult to account for all scenarios in respect of these amendments to ensure the accurate compilation of monthly figures. I am further advised by Revenue that trends in monthly figures are strongly influenced by Income Tax Return filing dates.
The figures that are provided below are point-in-time estimates on a tax year basis, based on previously reported figures compiled during 2023, as well as the latest available figures in January 2024.
Rent Tax Credit claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
The Rent Tax Credit is intended to provide assistance to those in the private rented residential sector pending further progress on the Government's Housing for All strategy. Finance Act 2023 increased this credit to €750 per year (or up to €1,500 for jointly assessed couples) for years 2024 and 2025.
The operation of the Rent Tax Credit will continue to be closely monitored by my Department in conjunction with Revenue.
|
Date of Rent Tax Credit data |
Total Rent Tax Credit claims |
Total number of taxpayer units making claims |
Taxpayer units that made claims for 2022 only |
Taxpayer units that made claims for 2022 and 2023 only |
Taxpayer units that made claims for 2023 only |
|
02-Mar-23 |
170,000 |
167,645 |
162,082 |
3,595 |
1,968 |
|
12-Apr-23 |
216,000 |
201,963 |
180,129 |
14,378 |
7,456 |
|
20-Apr-23 |
226,000 |
209,743 |
186,180 |
16,342 |
7,221 |
|
23-May-23 |
247,158 |
224,953 |
193,283 |
22,059 |
9,611 |
|
09-Jul-23 |
266,120 |
238,066 |
197,435 |
28,054 |
12,577 |
|
19-Jul-23 |
269,052 |
240,857 |
200,254 |
28,195 |
12,408 |
|
04-Sep-23 |
283,710 |
250,622 |
202,931 |
33,088 |
14,603 |
|
13-Sep-23 |
286,419 |
252,317 |
202,982 |
34,102 |
15,233 |
|
28-Sep-23 |
289,971 |
254,527 |
203,000 |
35,444 |
16,083 |
|
22-Oct-23 |
300,958 |
261,347 |
202,873 |
39,611 |
18,863 |
|
15-Nov-23 |
311,910 |
268,306 |
203,405 |
43,604 |
21,297 |
|
22-Nov-23 |
318,981 |
272,461 |
202,740 |
46,520 |
23,201 |
|
06-Dec-23 |
323,077 |
274,667 |
201,882 |
48,410 |
24,375 |
|
12-Jan-24 |
390,949 |
289,710 |
169,416 |
86,143 |
31,557 |
|
Date of Rent Tax Credit data |
Taxpayer units that made claims for 2024 only |
Taxpayer units that made claims for 2022 and 2024 only |
Taxpayer units that made claims for 2023 and 2024 only |
Taxpayer units that made claims for 2022, 2023 and 2024 only |
|
12-Jan-24 |
2,594 |
4,284 |
11,818 |
8,540 |
Appointments to State Boards
Questions (321)
Colm Burke
Question:321. Deputy Colm Burke asked the Minister for Finance what action his Department is taking to appoint a board for the Disabled Drivers Medical Board of Appeal to deal with appeals under the disabled drivers and passengers tax relief scheme; and if he will make a statement on the matter. [56696/23]
View answerWritten answers
Progress has been made on efforts to convene a new Disabled Drivers Medical Board of Appeals (DDMBA), and to recommence the appeals process.
I have now formally appointed all five members to the new DDMBA and appeal hearings recommenced in the first half of December 2023.
I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health, Department of Finance officials have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. Officials have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
Finally, I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
Tax Code
Questions (322)
Cian O'Callaghan
Question:322. Deputy Cian O'Callaghan asked the Minister for Finance if he will clarify the tax position for mortgage holders of a bank (details supplied) who will be receiving a payment from the bank in 2024 on the basis that these offset mortgages are ending; and if he will make a statement on the matter. [56689/23]
View answerWritten answers
I assume the Deputy is referring to reports in the media that a particular financial institution is to make payments to the holders of offset mortgages. I understand from such media reports that the payments in question may made to the mortgage holders in the context of the removal of an offset facility which may be a feature of their existing mortgage accounts.
I am advised by Revenue that the tax treatment of such payments can only be established by reference to particular facts and circumstances of each case.
Revenue has advised me that the payment of compensation by one party in exchange for another surrendering an existing benefit may be a taxable event, depending on the source and nature of the benefit in question. Should the payment of compensation be considered a taxable event, the nature of the compensation payment itself would need to be determined to establish if it is revenue or capital in nature. The general principles established by legislation, case law and Revenue guidance would then need to be applied to each case based on this analysis, which would then inform the potential income tax, corporation tax or capital gains tax consequences of such payments.
In addition, where a payment is made on an ex gratia basis, it may be a gift for capital acquisitions tax (CAT) purposes.
If the mortgage holders concerned wish to determine the correct tax treatment of these payments, they can present full details of same to Revenue via the "MyEnquiries" online service.
Departmental Consultations
Questions (323, 368)
Mick Barry
Question:323. Deputy Mick Barry asked the Minister for Finance to provide an update on consultations with representative organisations about the taxation treatment of GMS income for GP practices; and if he will make a statement on the matter. [56764/23]
View answer
Marian Harkin
Question:368. Deputy Marian Harkin asked the Minister for Finance if, following the recent amendment brought forward to the Finance (No. 2) Act 2023 to rectify the issues caused by changes to tax laws for the treatment of GP income, and where the changes still impact a number of GPs who are in, or hoping to be taken over by management companies to facilitate the business side of general practice, if he can advise if this matter is being addressed; and if he will make a statement on the matter. [1739/24]
View answerWritten answers
I propose to take Questions Nos. 323 and 368 together.
My Department and Revenue have, for some time, been aware of issues arising from contractual arrangements within the General Practitioner (GP) community whereby some GPs treat income under their General Medical Services (GMS) contract as income of a GP practice in which they are a partner or an employee, rather than income of that individual GP.
Revenue issued a guidance note to tax practitioners through the Tax Administration Liaison Committee in July 2023 clarifying the correct tax treatment of GMS income under tax legislation. That guidance confirmed there would be a transitional period for compliance with existing tax law, to 31 December 2023. Supplementary guidance on this matter was published on 10 November 2023 on the Revenue website.
In accordance with Section 58 of the Health Act 1970, a GMS contract is between the HSE and an individual GP. This means that, as a matter of law, income under a GMS contract belongs to the GP who entered into the contract with the HSE. The position does not change because a GP treats their GMS income as income of a medical practice. Following on from that fact, the legislation at the time did not provide for a legal basis for Revenue to treat income arising under a GMS contract entered into between an individual GP and the HSE as if it were income arising under a contract between the HSE and the medical practice in which the GP is a partner or an employee.
A GP who holds a GMS contract is a chargeable person as regards income arising under that contract and should report such income under the self-assessment system. The GP is also the specified person for the purposes of Professional Services Withholding Tax (PSWT), which means they are entitled to claim a credit for PSWT deducted by the HSE on GMS payments.
Although the guidance issued by Revenue was widely reported as a proposed tax change, it did not, in fact, introduce a change to the tax treatment of GPs. Instead, it simply clarified the existing legal and administrative position.
However in an effort to find a solution to this issue, discussions took place between officials in the Department of Finance, Revenue, the HSE and the Department of Health.
As part of Finance (No. 2) Act 2023, I introduced a new section 1008A into Part 43 of the Taxes Consolidation Act 1997. The section provides that, where individual GPs enter into contracts with the HSE to provide certain medical professional services and provide those services in the conduct of a partnership profession with other individual GPs, the income from those professional services can be treated for income tax purposes, to be that of the partnership. PSWT credits may be claimed by the partnership under such instances. Where this occurs, the partner who has the contract with the HSE, and not the precedent partner of the medical partnership, should provide the tax number of the medical partnership concerned to the HSE for the purposes of PSWT.
This provision will ensure that, where elected, all amounts paid to, or for the benefit of, a GP by the HSE in respect of GMS and ancillary public services can be treated as income of the partnership. A joint election to treat the GMS and ancillary public services as income of the partnership must be made by the GP contracted by the HSE to provide the relevant medical services and the medical partnership concerned. Revenue guidance has been updated to take account of this, with further information available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-01-15.pdf.
The provision will only apply to income tax for individual doctors who operate in partnerships with other individual doctors and will not apply to, or change, the tax situation for doctors who are employees of a partnership or other arrangement, including corporates. It is also limited only to income arising from General Medical Services (GMS) and certain ancillary public income.
It would not be appropriate for tax legislation to seek to accommodate all contracts and business practices in the sector. The core issue concerns the contractual arrangements involving GPs, which is a matter under the remit of the Minister for Health. As such, the Minister for Health has confirmed that the Strategic Review of General Practice, which is now underway, with input from key stakeholders, will examine the broad range of issues affecting general practice, including the relevant HSE contracts and propose measures necessary to modernise them.
Tax Rebates
Questions (324, 325)
Emer Higgins
Question:324. Deputy Emer Higgins asked the Minister for Finance if he will provide clarification where in the Revenue Commissioners guidance it is stated that uploading health receipts is a prerequisite for availing of a tax reclaim for gluten free foods; and if he will make a statement on the matter. [56774/23]
View answerEmer Higgins
Question:325. Deputy Emer Higgins asked the Minister for Finance if he will provide clarification on whether a receipt must specifically state ‘gluten-free’ to claim for gluten-free foods; and if he will make a statement on the matter. [56775/23]
View answerWritten answers
I propose to take Questions Nos. 324 and 325 together.
I am advised by Revenue 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. Broadly speaking, "health care” is defined as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability.
Tax relief will generally be available for the cost of foods that have been specifically manufactured to be gluten free if the individual provides a letter from a doctor stating that the person for whom the foods have been purchased is a coeliac sufferer.
A taxpayer may be asked to provide additional documentation in support of his or her claim. Revenue does not specify the exact form such additional documentation should take, although it should contain sufficient information to satisfy the Revenue officer dealing with the claim that the costs incurred by the taxpayer relate to foods which have been specifically manufactured to be gluten free.
In verifying claims for tax relief on gluten free food, Revenue officials may therefore accept:
a chemist or supermarket receipt;
evidence from food packaging; or
an annual statement from a multiple of a supermarket chain,
in support of a claim, if the information provided clearly demonstrates that the foods purchased have been specifically manufactured to be gluten free and show details of the expenditure incurred.
Revenue officials may also accept information from the Coeliac Society of Ireland’s annual Food List if it is provided by a taxpayer in support of his or her claim for tax relief, together with proof of the expenditure incurred.
Claims for tax relief on qualifying health expenses, in this case the cost of foods that have been specifically manufactured to be gluten-free, can be made during the year the expenditure is incurred or, after the year end. The benefit of making a claim during the year, as opposed to after year end, is earlier repayment of tax relief.
Claims during the year are made via Revenue’s “Real Time Credit” facility which can be accessed through a taxpayer’s “myAccount”. Further information can be accessed using the following link www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/real-time-credits/index.aspx.
When a real time claim is made it is required that the taxpayer provides receipts at the time of claim via the “Receipts Tracker” service. Further information can be accessed using the following link www.revenue.ie/en/online-services/services/common/manage-your-receipts-with-receipts-tracker.aspx.
Part 4.1.1 of Revenue’s Health Expenses Tax and Duty Manual Part 15-01-12, states “to claim tax relief in real time, taxpayers will be required to provide details of the qualifying health expenses and nursing home fees they have incurred, along with a readable image of their receipts”. This Tax and Duty Manual Part is available via the following link www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
Claims for tax relief on qualifying health expenses made after the year end by way of filing an Income Tax Return do not require the provision of receipts at the time of the claim. However, a claim for health expenses may be subject to a verification check at a later date by Revenue, similar to verifications for other types of expense claims, tax credits or deductions, etc.
Question No. 325 answered with Question No. 324.
Departmental Policies
Questions (326)
James Lawless
Question:326. Deputy James Lawless asked the Minister for Finance to examine a matter (details supplied); and if he will make a statement on the matter. [56783/23]
View answerWritten answers
As the Deputy may be aware, 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 correspondence. 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.
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.
In the relation to the query regarding the specific circumstances as outlined by the Deputy, it is worth noting that there is an exemption from CAT where dwelling houses are bequeathed by individuals. The dwelling house exemption is available, subject to certain conditions, to successors of the house 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. It is not necessary for the beneficiary of an inheritance under the dwelling house exemption to be a child or relative of the disponer.
Further information regarding the dwelling house exemption is available on the Revenue website at the following link: www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx.
Vehicle Registration Tax
Questions (327)
Noel Grealish
Question:327. Deputy Noel Grealish asked the Minister for Finance the reason the VRT refund scheme was originally set up; if it was to comply with an EU directive; how much it cost to set up the scheme; and if he will make a statement on the matter. [56862/23]
View answerWritten answers
Since 8 April 2013, a person exporting a passenger car from the State may claim for repayment of a portion of the Vehicle Registration Tax (VRT). The VRT export repayment scheme was introduced under the Finance Act 2012, which inserted Section 135D into the Finance Act 1992. The scheme allows for repayment of residual VRT based upon the vehicle’s value at the time of export, subject to a minimum value and an administration charge.
Prior to the introduction of the scheme, parties exporting vehicles had no way of recouping the residual VRT in a vehicle and, in 2010 the European Commission initiated infringement proceedings against Ireland on the basis that “the effect of the Irish provisions relating to Vehicle Registration Tax is a disproportionate obstacle to the freedom to provide services for leasing companies in other Member States who wish to offer their services to Irish residents”. The Commission’s case was that by charging VRT on the full value of a vehicle leased to an Irish citizen by a foreign leasing company the vehicle then had a residual, “trapped” VRT element that made these vehicles less competitive for subsequent leasing outside of the State on completion of the original lease term. Following a careful analysis, the export repayment scheme was provided for in the 2012 Finance Act to address the particular concern in relation to freedom of services for leasing companies.
When the scheme was introduced section 135D(4)(b) of the Finance Act 1992 provided that an administration charge of €500 be deducted from the amount of VRT refunded upon export of a vehicle. The charge was to recoup the costs associated with setting up and running the scheme, including developing the necessary information technology platform and interfaces. The administrative charge was subsequently reduced to €100 per vehicle from 1 January 2016 under the Finance Act 2015; by that time, the necessary systems were in place and operating effectively.
I have been informed that information on the total set-up costs is not readily available.
Tax Yield
Questions (328)
Michael Ring
Question:328. Deputy Michael Ring asked the Minister for Finance the amount of carbon tax accrued for 2023; to provide a full and comprehensive breakdown of what these monies will be used for, in tabular form; and if he will make a statement on the matter. [56879/23]
View answerWritten answers
I am advised by Revenue that the provisional Carbon Tax receipts for 2023 are €935m. Carbon Tax receipts for 2022, and previous years, are published on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.
As the Deputy will be aware, the Minister for Public Expenditure, NDP Delivery and Reform has policy responsibility for all expenditure decisions. In Budget 2023 the Department of Public Expenditure, NDP Delivery and Reform published "Budget 2023 : The use of carbon tax Funds". This document provides full details of expenditure relating to carbon tax in 2023 and is available on the Budget website: www.budget.gov.ie under the sections Previous Budgets, Budget 2023, Budget Publications.
Question No. 329 answered with Question No. 315.
Tax Code
Questions (330)
Colm Burke
Question:330. Deputy Colm Burke asked the Minister for Finance if due consideration will be given in coherence with Food Vision 2030, to the review and optimisation of the tax treatment of investment by agtech companies in research and development for products and services which can support sustainability goals at farm level,; and if he will make a statement on the matter. [56899/23]
View answerWritten answers
Food Vision 2030 is our shared strategy for the continuing development of the agri-food sector in Ireland, developed for the sector by the sector. Food Vision is a landmark for the Irish agri-food sector with the potential to transform our agriculture, food, forestry and marine sectors in the period to 2030, with sustainability at its core.
The research and development (R&D) corporation tax credit, as provided for in Part 29 of the Taxes Consolidation Act 1997, is available to all companies, including Agri-Technology companies, which are within the charge to Irish tax and which incur qualifying expenditure on qualifying R&D activities. For accounting periods commencing on or after 1 January 2024, the R&D corporation tax credit is available at a rate of 30% of allowable expenditure. For accounting periods commencing prior to 1 January 2024, the rate of the credit is 25%.
In making a claim for the R&D corporation tax credit, companies must satisfy two tests: the activity must be a qualifying activity (a science test) and the amount of the claim must be based on R&D expenditure incurred (an accounting test).
For the activities to be qualifying R&D activities, they must be systematic, investigative or experimental activities in a field of science or technology and involve one of the following research categories:
• Basic research,
• Applied research, or
• Experimental development.
In addition, the R&D activities must seek to achieve a scientific or technological advancement and involve the resolution of scientific or technological uncertainty.
The R&D corporation tax credit is available in respect of expenditure incurred wholly and exclusively in the carrying on by the company of qualifying R&D activities.
Full information regarding the R&D corporation tax credit, including the categories of activities which may qualify for the credit, is available in Revenue’s published Tax and Duty Manual on the Research and Development (R&D) Corporation Tax Credit, which can be accessed on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-29/29-02-03.pdf.
Research and Development
Questions (331)
Denis Naughten
Question:331. Deputy Denis Naughten asked the Minister for Finance if he will list the ongoing research commissioned under the remit of his Department through the North-South Ministerial Council, Shared Island Initiative or through other all-island arrangements; if he will outline the research that has been completed; the date of publication of the research since the signing of the Good Friday Agreement; and if he will make a statement on the matter. [56913/23]
View answerWritten answers
While my Department has not commissioned research under the initiatives listed, the Deputy may be interested to note that under the Department of Finance/ESRI Joint Research Programme, the ESRI is carrying out a study on cross-border employments and it is anticipated that this work will be completed in 2024.
To support development of a more ambitious agenda for cooperation and connection on the island, the Shared Island unit in the Department of the Taoiseach is delivering a comprehensive research programme, working with the ESRI, the National Economic and Social Council, the Irish Research Council and other partners. Research will continue to be published through 2024, focused on opportunities to deepen cooperation across a range of economic, social and environmental domains. Further information is available at www.gov.ie/SharedIsland/Research.
Site Acquisitions
Questions (332)
Catherine Murphy
Question:332. Deputy Catherine Murphy asked the Minister for Finance if he will provide an update in respect of the purchase of a school site in a project that involves the NTMA (details supplied); and the date on which the acquisition of lands is due to be finalised. [57140/23]
View answerWritten answers
I have raised this matter with NAMA and have been advised that the appointed Receiver over this site has advanced a draft contract for sale with the Department of Education which is currently under negotiation. The site is zoned for community and education purposes, and it is understood that the Department intends providing a school campus on these lands.
Departmental Data
Questions (333)
Catherine Murphy
Question:333. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of the personal and or person-specific data sets his Department holds that have been provided and/or shared with other Departments and/or Ministers and/or State bodies and/or agencies and/or local authorities in the past 20 years to date; if he will clarify if the transfer of data and/or records was in aggregated form or on an individual basis; and the reason the data and/or records were provided. [57210/23]
View answerWritten answers
As the Deputy will be aware, the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 came into effect in May 2018 and formalised data sharing arrangements. This was subsequently supplemented by the Data Sharing and Governance Act 2019. In this context, I am informed by my Department that a schedule of the personal or person specific dataset as requested by the Deputy is not available for the last 20 years.
The work of my Department does not generally involve the collection or sharing of personal datasets. Personal data are only shared by my Department where there is a specific and legitimate need for such sharing, and details of what data is held or shared are set out in our Data Protection Statements which are published on our website.
Where personal data are shared, my Department has in place Data Sharing Agreements which set out in detail the roles and responsibilities of the bodies involved in the data sharing activity along with the technical safeguards that protect such personal data.
My Department has internal Records Management policies, Data Protection Policies and electronic systems in place to ensure good governance in data protection and records management, and we are mindful of our obligations under the Data Protection Act 2018.
Tax Code
Questions (334)
Eoin Ó Broin
Question:334. Deputy Eoin Ó Broin asked the Minister for Finance if VAT applies to social and affordable housing funded by his Department and delivered by councils and approved housing bodies; and if, in those cases where VAT does apply, he will outline whether such charges could be waived to allow the delivery of social and affordable homes at lower cost. [57224/23]
View answerWritten answers
The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. A small number of categories in Annex III may have a zero rate of VAT applied. The supply and construction of housing, as part of social policy is listed in Annex III of the Directive and, therefore, can be subject to VAT at a reduced rate.
While under the EU VAT Directive the supply of construction services is liable to VAT at the standard rate generally across the EU, Ireland applies a 13.5% reduced rate of VAT to all construction services under a derogation from the EU VAT Directive, again subject to strict restrictions. The Deputy will be aware that this derogated rate also applies on sales of new homes.
However under the VAT Directive it is not possible to waive VAT or apply a zero rate of VAT to social and affordable housing.
Technically, it would be possible for Ireland to decide, on social policy grounds, to apply the 9% reduced rate to the construction, repair and renovation of residential housing. However, in accordance with the Directive, such a decision would not be permitted in relation to housing built for reasons other than social policy. Such a situation would involve having two separate VAT rates applying to different housing areas. This could be very difficult to administer and would have the high risk of accidental or fraudulent underpayments of VAT. There is also no expectation or requirement that a VAT reduction would result in lower prices for consumers.
Tax Reliefs
Questions (335)
Pauline Tully
Question:335. Deputy Pauline Tully asked the Minister for Finance if, in line with Action 74 of the Autism Committee’s Final Report, she has plans to adopt a needs-based approach to the disabled drivers and passengers scheme; and the estimated first- and full-year cost, respectively, of implementing this proposal. [57321/23]
View answerWritten answers
I am aware that Action 74 of the Joint Committee on Autism's June 2023 report proposes adoption of a needs-based approach to the Disabled Drivers and Disabled Passengers Scheme (DDS). The Department of Finance has oversight of the (DDS) only. It has no role in broader disability policy or services.
The final report of the NDIS Transport Working Group's review of mobility and transport supports including the Disabled Drivers and Disabled Passengers Scheme (DDS), endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS, as it is no longer fit-for-purpose on any and all aspects. The proposals note this was a clear deliverable for the near future.
The NDIS TWG was chaired by Minister Anne Rabbitte and led by the Department of Children, Equality, Disability, Integration and Youth (DCEDIY).
Access to transport for people with disabilities is a multifaceted issue that involves work carried out by multiple Government departments and agencies. Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward. My officials are proactively engaging with this Senior Officials Group work as an important step in considering ways to replace the DDS, as one specific personal transport response, in the context of broader Government consideration of holistic, multifaceted and integrated transport and mobility supports for those with a disability. Three meetings of the SOG have been held, in July, November and December 2023.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.