Written Answers Nos. 209-228
209. Deputy Pearse Doherty asked the Minister for Finance his views on the need for taxpayers to file a tax return in order to avail of mortgage interest relief; if he is concerned that said requirement could act as a disincentive for eligible taxpayers to apply for this relief; his Department’s understanding of the rationale for this method of application; and if he will make a statement on the matter. [2545/24]
View answerAs the Deputy will be aware, Finance Act 2023 introduced the temporary one-year Mortgage Interest Tax Relief that I announced on Budget day.
Mortgage Interest Tax Relief will be available to taxpayers in respect of their principal private residence in the State where the outstanding mortgage balance was between €80,000 and €500,000 as of 31 December 2022, and the taxpayer is compliant with Local Property Tax requirements. The relief also extends to a qualifying property located in the State, which is the sole or main residence of the individual’s former or separated spouse or civil partner or a dependent relative.
The tax relief will be available at the standard rate of income tax and is based on the increase in interest paid in 2023 over interest paid in 2022. The value of the relief will be equal to the lesser of 20 per cent of this excess interest figure, or €1,250. This means that the maximum tax credit will be €1,250 per property.
Where the interest payments made in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating of the relief will apply, to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly. Revenue’s systems will carry out the calculation of the relief at the point of claim.
A taxpayer will be able to make a claim to Revenue for this tax relief by filing a 2023 Income Tax Return. Revenue provides a free and easy to use facility to file an Income Tax Return for all taxpayers. For PAYE taxpayers this is done through myAccount, with self-assessed taxpayers using ROS.
The taxpayer will be required to submit the following documents at the time the claim is made:
• Certificate of Mortgage Interest 2022,
• Certificate of Mortgage Interest 2023, and
• Confirmation of mortgage balance at 31 December 2022.
It should be noted that based on Revenue data, the number of PAYE taxpayers filing an Income Tax Return to avail of the extensive range of tax credits, reliefs and deductions is consistently high year-on-year. For example, for the 2022 tax year over one million Income Tax Returns were filed by PAYE taxpayers, which resulted in refunds in excess of €708 million issuing. It should also be noted that PAYE taxpayers have four years to make a claim for a credit, relief or deduction so they may make a claim in respect of the 2023 tax year up to 31 December 2027.
Detailed guidance material regarding this credit, including the claims process is set out in Revenue’s Tax and Duty Manual Part 15-01-01B available at:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11B.pdf
I would also point out that as part of the design feature for this tax relief, I did explore the feasibility of administering the relief at source given that it was a feature of the previous version of Mortgage Interest Relief. However, Revenue advised that the IT infrastructure that was used for the previous version of Mortgage Interest Relief had been discontinued and could not be used for the purposes of the new relief being introduced on 1 January 2024. In addition, to scope, design, build and test a new system would be very complex and come with a large monetary cost and it would not be feasible to deliver such a system by January 2024.
A key priority for the Government was to ensure that the tax relief could be claimed by taxpayers at the earliest possible opportunity. Therefore, the more effective and immediate solution was to administer the relief via a tax credit.
210. Deputy Paul Kehoe asked the Minister for Finance whether the amendment on further clarification to the 2023 concrete levy to exclude the value of pouring concrete used in precast products from the scope of the levy was introduced on 1 January 2024; whether a refund scheme has been opened for the interim period to the end of 2023; and if he will make a statement on the matter. [2553/24]
View answerThe Finance Act 2023 provided for a number of amendments to DCPL. Firstly, and as I announced on 6 September 2023, ready to pour concrete used in the manufacture of precast concrete products was removed from the charge of the levy with effect from 1 January 2024. A precast concrete manufacturer is required to make a declaration to the ready to pour concrete supplier that the ready to pour concrete that the manufacturer is acquiring or using will be utilised in the manufacture of precast concrete products.
Secondly, the amendments provided for the operation of a repayment scheme for the levy paid on ready to pour concrete, where that concrete was utilised in the manufacturing of precast concrete products between the levy coming into operation on 1 September 2023 and 31 December 2023. A precast concrete manufacturer will make a claim for a refund to Revenue, for the repayment of any such levy paid on ready to pour concrete used for the production of precast concrete products. A claim may be made within four months of 31 December 2023.
The declaration and repayment can be made in respect of ready to pour concrete utilised for precast concrete products. It does not apply to concrete cast in-situ on sites.
It is important to note that pre-cast concrete products are not within the scope of the levy, and therefore the levy does not apply on supplies of such products. As of 1 January 2024, the DCPL applies to pouring concrete which is not utilised in the manufacture of pre-cast products and to two forms of concrete block (as detailed in Schedule 36 of the Taxes Consolidation Act 1997).
Further information on the DCPL, including the obligations of a chargeable person, is available on the Revenue website at: www.revenue.ie/en/self-assessment-and-self-employment/dcpl/index.aspx.
211. Deputy Richard Boyd Barrett asked the Minister for Finance if he is aware of the practice of insurance companies refusing to provide building/property insurance to anyone with previous convictions who has an interest in a property and whether he believes this practice would make it far more difficult for ex-prisoners to find accommodation and reintegrate and if he will take action to address this; and if he will make a statement on the matter. [2576/24]
View answerAs Minister for Finance, I am responsible for the development of the legal and policy framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive).
Notwithstanding this, my officials raised the Deputy’s query with Insurance Ireland, the representative body for insurance providers in this country. It has advised that in general, there is no consistent approach in how insurers ask a proposer if they or a member of their family ever had a previous conviction. The objective of the questions asked at the proposal stage is to establish the material facts relating to the risk, which has a bearing on the risk appetite of the insurer.
Accordingly, it is understood that insurers will use a combination of factors in making their individual decisions on whether to offer cover and what terms to apply. However, insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors.
Insurance Ireland also acknowledged that under the Criminal Justice (Spent Convictions and Certain Disclosures) Act 2016, certain minor offences (like public order and motor offences) become spent after 7 years. This means that an adult convicted of an offence covered by the Act does not have to disclose the conviction after 7 years, except in certain circumstances.
Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover. This can be accessed by calling 01 676 1820 or emailing feedback@insuranceireland.eu.
In addition, I understand that some brokers provide specialist home insurance for non-standard risks, providing quotes for consumers that may not be able to source cover due to previous convictions, however the premium would reflect the risk. Brokers Ireland has access to a wide range of providers and products, and can be contacted at: 01 661 3067 or at: insurancequeries@brokersireland.ie.
212. Deputy Bernard J. Durkan asked the Minister for Finance if a person (details supplied), whose one parent family payment ceased on 23 December 2023, is still paying emergency tax in their current employment; if any moneys due to the person can issue; and if he will make a statement on the matter. [2587/24]
View answerI am advised by Revenue that the record of the person concerned has been reviewed and updated and that they are now in receipt of their full allocation of tax credits and rate bands for 2024.
An amended tax credit certificate for 2024, confirming their tax credits and rate bands, will issue shortly and an updated Revenue Payroll Notification has issued to the person’s employer which will ensure that any over payment of income tax, to date in 2024, will be refunded through the person’s payroll.
213. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of official flights and costs of same, taken by him in 2023; if a schedule will be provided of all hotels he stayed in in 2023, including hotel name and cost per night while on official State business; and if the same information will be provided in respect of all accompanying staff and advisors. [2643/24]
View answerIt was not possible for my Department to provide the information sought in the time available. I will, however, make arrangements to provide the information to the Deputy as soon as possible.
214. Deputy Richard Bruton asked the Minister for Finance if he will indicate how many people have claimed tax relief on their rental payment, and how this number compares to the estimate which his Department made of the likely numbers that would become eligible; and if he will make a statement on the matter. [2689/24]
View answer217. Deputy Eoin Ó Broin asked the Minister for Finance the total number of claims for the private rental tax credit in 2023; the average amount of the claims for 2023; the total cost of the claims in 2023; and a breakdown, by local authority area, of the number of claims and the average amount claimed. [2716/24]
View answerI propose to take Questions Nos. 214 and 217 together.
The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
I am advised by Revenue that the Rent Tax Credit statistics currently available refer only to claims by PAYE taxpayers. Data on claims by self-assessed taxpayers is not yet available. Statistics covering all taxpayers will be available in Q2 2024.
Claims in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2023, PAYE taxpayers had the option of claiming the Rent Tax Credit due to them as rent is incurred through Revenue’s Online Service or at the end of the year through their Income Tax return.
I am further advised that the total cost of the Rent Tax Credit for the 2023 year of assessment cannot be determined until after all relevant returns are filed. Returns for the 2023 year of assessment for self-assessed taxpayers are not due until later this year. However, the total amount of Rent Tax Credit claimed to date by PAYE taxpayers in respect of the 2023 year of assessment amounts to €83.33 million.
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.
During the Budget 2023 process, it was estimated that approximately 400,000 individual persons are eligible to claim the Rent Tax Credit for 2022. The same figure was estimated for 2023.
I am advised that as of 18 January 2024, 419,561 Rent Tax Credit claims have been made by 300,787 taxpayer units consisting of:
(i) 153,714 taxpayer units that made claims for 2022 only,
(ii) 87,446 taxpayer units that made claims for both 2022 and 2023,
(iii) 4,795 taxpayer units that made claims for both 2022 and 2024,
(iv) 36,005 taxpayer units that made claims for 2023 only,
(v) 4,217 taxpayer units that made claims for both 2023 and 2024,
(vi) 3,452 taxpayer units that made claims for 2024 only,
(vii) 11,158 taxpayer units that made claims for 2022, 2023, and 2024.
Data for claims relating to PAYE taxpayers for the 2023 year of assessment is set out by county in the tables below:
|
Year of assessment |
County |
Number of taxpayer units claiming RTC |
Total RTC claimed by taxpayer units |
Average RTC claimed by taxpayer units |
|
2023 |
Carlow |
1,190 |
€715,856 |
€602 |
|
2023 |
Cavan |
1,118 |
€713,086 |
€638 |
|
2023 |
Clare |
1,743 |
€1,097,336 |
€630 |
|
2023 |
Cork |
15,266 |
€9,183,166 |
€602 |
|
2023 |
Donegal |
1,726 |
€1,086,015 |
€629 |
|
2023 |
Dublin |
66,270 |
€38,725,445 |
€584 |
|
2023 |
Galway |
9,365 |
€5,475,350 |
€585 |
|
2023 |
Kerry |
1,985 |
€1,208,114 |
€609 |
|
2023 |
Kildare |
5,037 |
€3,126,940 |
€621 |
|
2023 |
Kilkenny |
1,561 |
€939,883 |
€602 |
|
2023 |
Laois |
1,087 |
€668,485 |
€615 |
|
2023 |
Leitrim |
423 |
€256,607 |
€607 |
|
2023 |
Limerick |
6,213 |
€3,720,563 |
€599 |
|
2023 |
Longford |
766 |
€483,552 |
€631 |
|
2023 |
Louth |
2,019 |
€1,247,537 |
€618 |
|
2023 |
Mayo |
1,969 |
€1,237,355 |
€628 |
|
2023 |
Meath |
2,753 |
€1,741,258 |
€632 |
|
2023 |
Monaghan |
972 |
€606,074 |
€624 |
|
2023 |
Offaly |
1,117 |
€731,382 |
€655 |
|
2023 |
Roscommon |
889 |
€578,471 |
€651 |
|
2023 |
Sligo |
1,484 |
€911,570 |
€614 |
|
2023 |
Tipperary |
2,425 |
€1,516,696 |
€625 |
|
2023 |
Waterford |
2,646 |
€1,594,705 |
€603 |
|
2023 |
Westmeath |
2,077 |
€1,339,304 |
€645 |
|
2023 |
Wexford |
2,152 |
€1,352,517 |
€628 |
|
2023 |
Wicklow |
1,756 |
€1,097,462 |
€625 |
|
2023 |
Not yet available |
2,817 |
€1,978,980 |
€703 |
|
Total |
138,826 |
€83,333,709 |
- |
215. Deputy Richard Bruton asked the Minister for Finance if he will indicate the total value of claims for the refund of income tax on out-of-pocket medical expenses and if he has made any estimate of the likely underclaiming of such eligible expenses. [2690/24]
View answerI am advised by Revenue that the estimated value of claims for qualifying Health Expenses, broken down by year for 2004-2021, the latest year for which fully analysed data are available, is included in the ‘Cost of Tax Expenditures’ publication, which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. The data are further broken down in this publication between ‘Health Expenses (Excluding Nursing Homes)’ and ‘Health Expenses (Nursing Homes Only)’, by year for 2009-2021, the most recent year for which data is available. In 2021, there were 571,800 claims for tax relief for health expenses, with a cost of €208.2 million.
I am further advised that there are no data available to Revenue in respect of the number of people who may be entitled to claim tax relief for health expenses but who have not made a claim, either for prior years or the current year.
Further information on tax relief for health expenses can be located on Revenue's website - www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/index.aspx.
216. Deputy Richard Bruton asked the Minister for Finance if he will indicate the number of persons who claim incapacitated child tax credit and if the Revenue Commissioners have undertaken any assessment as to whether a significant number of people may be missing out on this entitlement. [2691/24]
View answerI am advised by Revenue that the estimated number of claimants for the Incapacitated Child Tax Credit, broken down by year for 2004-2021, the latest year for which data are available, is included in the ‘Cost of Tax Expenditures’ publication which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. In 2021, there were 37,900 claimants and the cost of this tax credit was €118.3 million.
I am further advised that there are no data available to Revenue in respect of the number of people who may be entitled to claim the Incapacitated Child Tax Credit but who have not made a claim, either for prior years or the current year.
Further details on the Incapacitated Child Tax Credit can be located on Revenue's website www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/index.aspx.
218. Deputy Niamh Smyth asked the Minister for Finance to review an article (detail supplied); if he will outline what his Department is doing on this matter to help prevent closures; and if he will make a statement on the matter. [2846/24]
View answerThe article referred to by the Deputy outlines recent comments by the Tánaiste in the context of a number of business closures in the hospitality sector over the past six months. In particular the Tánaiste made reference to the 9% VAT rate for hospitality and tourism sector and the Tax Debt Warehousing Scheme.
The 9% VAT rate for hospitality and tourism sector was introduced on a temporary basis on 1 November 2020 in recognition of the fact that these sectors were among those most impacted by the public health restrictions during the pandemic. The economic rationale for a VAT rate reduction at that time was to lower consumer prices, encouraging higher demand, more output and an increase in employment.
However, the reduced rate had an estimated cost to the Exchequer of €1.2 billion by the time the rate reverted to 13.5% on 31 August 2023. The Government decided to revert to the 13.5% rate following an economic assessment carried out by my Department which demonstrated that the economy had rebounded strongly from the pandemic and that economic activity was now above pre-pandemic levels. Furthermore, the reduced rate was noted to be both regressive and very costly, and this cost represented a transfer from taxpayers to the sectors concerned. Therefore, I do not currently have plans to reinstate the VAT rate to 9% for the hospitality and tourism sector.
The Tax Debt Warehousing Scheme has offered valuable and practical liquidity support to businesses during the COVID pandemic and continues to support businesses as they recover from the impacts of the pandemic and the cost of living crisis. It has assisted businesses with their cash-flow during difficult trading periods, preventing business failure.
Introduced in May 2020, the scheme allowed businesses to temporarily defer VAT and Employer PAYE, certain self-assessed income tax liabilities, and Temporary Wage Subsidy Scheme and Employment Wage Subsidy Scheme overpayments on an interest-free basis for an extended period of time after which a 3% interest rate applies until the debt is either repaid or the customer otherwise exits the warehouse.
A significant extension to the scheme, announced in October 2022, means that businesses have until 1 May 2024 to make arrangements to repay their warehoused debt. In advance of this deadline, Revenue will engage with all customers with debt in the warehouse in advance of 1 May to discuss their payment options and agree a tailored phased payment arrangement in respect of their warehoused debt based on their individual circumstances.
The overall warehoused debt has decreased substantially since January 2022 when almost €3 billion was warehoused for over 100,000 customers. As of 15 January 2024, Revenue had advised that a total of €1.747 billion was warehoused for 57,703 taxpayers, whereby 70% had outstanding liabilities of less than €5,000. With respect to the Accommodation and Food Service sector, a total of €268 million was warehoused by 5,600 taxpayers, and 1,400 (25%) of these had warehoused debts of less than €100. A further 700 (13%) had warehoused debts between €101 and €1,000 and 950 (17%) had warehoused debts between €1,001 and €5,000.
Revenue has advised me that their approach will be flexible in relation to the agreement of payment plans for warehoused debt. Where there is meaningful and proactive engagement, Revenue will work with businesses and give them every possible support in managing the payment of their warehoused debt over a timeline that suits the individual circumstances and repayment capacity of the business so that they can secure their viability into the future.
However, this flexibility is subject to the key requirement that current liabilities are filed and paid on time. Where taxpayers are finding it difficult to meet their current tax payment obligations the advice remains, as has always been the case, to engage with Revenue as soon as such difficulties start to arise so that an agreed solution can be found.
That said, I have engaged with Revenue in relation to the scheme and asked them to examine where further flexibility might be given to businesses. This work is underway by Revenue and my department and I hope to make a further announcement soon.
This Government is acutely aware of the ongoing cost challenges faced by businesses and has worked to support businesses through the COVID-19 pandemic and more recent challenging times with a wide range of measures for firms of all sizes, but particularly small and medium enterprises. These measures include the wage subsidy scheme, Restart Grants, commercial rates waivers, the extension of the 9% VAT rate, warehousing of tax liabilities, Small Business Assistance Scheme for COVID (SBASC); the Temporary Business Energy Support Scheme (TBESS); and the Ukraine Enterprise Crisis Scheme. These measures were designed to provide vital liquidity support to businesses and have assisted in preventing business failure during difficult trading periods.
Budget 2024 also allocated €257 million to the introduction of the Increased Cost of Business (ICOB) grant, which aims to provide financial support to small and medium sized businesses who operate from a rateable premises. In addition, the Business Users Support Scheme for Kerosene (BUSSK), launched in September 2023, provides assistance to businesses impacted by significant increases in the cost of kerosene heating oil.
Broader supports for SMEs which were announced in Budget 2024 include the extension of the 9% VAT rate on gas and electricity from end-October 2023 to end-October 2024. Furthermore, the temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were due to expire at end-October 2023 and were also extended until end-March 2024.
219. Deputy Mick Barry asked the Minister for Finance the measures his Department will take to regulate insurance prices that, according to reports (details supplied), are rising rapidly; and if he will make a statement on the matter. [2923/24]
View answerI note that the details supplied relate to a recent media report about an increase in home insurance costs in the context of the latest CSO Consumer Price Index (CPI). As the Deputy will appreciate, neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Notwithstanding this, I am aware that the cost of home insurance may be rising for some consumers, and that CSO data for December 2023 indicates an annual price increase of 9.1 per cent. However, it should be noted that the rate of increase has declined substantially from its peak in April 2023, when it reached 23.3 per cent year-on-year. While this is still high, it is welcome that it appears to be moderating somewhat.
Many factors influence the cost of home insurance, including rebuild costs, which in turn are impacted by costs such as building materials, energy, and labour. As has been widely documented, many of these have been subject to significant inflationary pressure since 2020.
Indeed, by way of illustration, the latest CSO Wholesale Price Index for November 2023 indicates that the cost of building and construction ‘materials’ rose by 34.4 per cent compared to January 2021. As construction and repair costs have generally increased, this can in turn be expected to pass-through to home insurance premiums.
It is also important to be aware of recent work by the Central Bank of Ireland and home insurance providers to increase awareness of under-insurance, in light of this inflationary environment. In September 2022, the Central Bank published a review which found that rates of under-insurance in the home insurance market increased from 6.5 per cent in 2017 to 16.5 per cent in 2022.
The Central Bank wrote to insurance firms to outline these findings and its supervisory expectations, with insurers then beginning to highlight the risk of under-insurance to consumers. During recent meetings with Minister of State Carroll MacNeill, many insurers noted the subsequent positive engagement by consumers on this issue, which has in many cases resulted in “sums insured” increasing. This in turn sees premiums also increasing. However, reducing under-insurance is a key consumer protection issue, as being under-insured can leave many individuals out-of-pocket in the event of a loss.
Finally, I wish to reassure the Deputy that the Government has continued to prioritise insurance reform with a view to improving affordability for consumers. With respect to home insurance, a significant reform has been the Central Bank’s ban on price walking, which will protect customers who prefer to stay with their current home insurer from being subject to a ‘loyalty penalty’. However, the consistent advice of consumer advocates to policyholders is to always consider comparing or switching providers.
220. Deputy Catherine Murphy asked the Minister for Finance further to Parliamentary Question No. 332 of 17 January 2024, if he will provide a timeline in respect of the sales process of a site from when the site was identified to draft contract stage and a schedule of all parties involved to include legal representation and all associated fees. [2938/24]
View answerNAMA has advised that all information relating to the site sales process and the associated timeline is a matter for the appointed Receiver (details supplied) who is responsible for the management and sale of the site or for the Department of Education, who is a party to the draft contract. NAMA’s role is simply that of a secured lender. Details supplied: Kieran Curtin, HWBC.
221. Deputy Michael Lowry asked the Minister for Finance to review the correspondence from a person (details supplied); if he will provide clarification on the interpretation by the Revenue Commissioners of section 86 of the VAT Consolidation Act 2010; the reason and when the Revenue Commissioners reviewed and changed its interpretation of section 86 of Act; the reason farmers are being refused refunds/reclaims of VAT; and if he will make a statement on the matter. [3019/24]
View answerThe VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, farmers can elect whether or not to register for VAT in respect of their farming business, and each farmer’s decision on this matter affects how VAT incurred on their inputs (such as the purchase of farm equipment) is treated.
Farmers who elect to register for VAT are – like any VAT-registered business – obliged to account for VAT on their supplies and, equally, are entitled to claim a deduction for VAT incurred on inputs used by the business. Therefore, VAT-registered farmers are entitled to reclaim the VAT incurred on farm equipment, including the calf feeders and milking parlour equipment which the Deputy has raised. The claim is made through the farmer’s normal VAT return.
Alternatively, farmers can decide not to register for VAT, and to avail instead of the Flat-rate Farmers Scheme which applies to VAT-unregistered farmers. As is normal for VAT-unregistered businesses, unregistered farmers are not entitled to reclaim VAT incurred on the various individual inputs used in their farming business. However, uniquely for the farming sector, the Directive permits a special arrangement – known as the Flat-Rate Farmer’s Scheme – which compensates unregistered farmers for the overall VAT incurred by their sector. The Scheme is designed as an administrative simplification measure to enable unregistered farmers to be compensated on an overall basis for VAT on inputs, while remaining outside the VAT system, thereby avoiding the burdens associated with VAT registration and filing. The Scheme allows unregistered farmers to add and retain a percentage charge (known as the “flat-rate addition”) onto the amount they invoice VAT-registered businesses whom they supply with agricultural goods and services in the course of their farming business. Each year, the level of the flat-rate percentage is reviewed and, if needed, re-set under law, in order to ensure that the Scheme continues to allow appropriately for the unregistered farming sector to be fully compensated, on an overall basis, for the VAT it incurs. The Flat Rate Scheme is provided for in legislation by Section 86 of the VAT Consolidation Act 2010.
Generally, businesses that are not registered for VAT are not permitted to reclaim any VAT they incur. However, in addition to the compensation for VAT-unregistered farmers provided by the Flat-rate Scheme, Irish VAT law also permits flat-rate farmers to reclaim VAT they incur on some particular business expenditure, as set out in the Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012). The Refund Order is permitted under EU law, subject to certain conditions, including that its scope is not extended.
The Order allows unregistered farmers to claim refunds for VAT incurred on the following farming business expenditure:
a. the construction, extension, alteration or reconstruction of farm buildings or structures;
b. the fencing, draining or reclamation of farmland; and
c. the construction, erection or installation of qualifying equipment for the micro-generation of electricity for use in the farm business.
Expenditure incurred by flat-rate farmers on any other farming business inputs, such as farm equipment, does not come within the scope of the Refund Order. Farm equipment which is outside the scope of the Order would include the calf feeders and milking parlour equipment to which this question relates. However, where the installation of farming equipment requires the alteration or reconstruction of a farm building or structure, the corresponding expenditure may be allowed in certain circumstances.
I understand from Revenue that claims by unregistered farmers for refunds under the Order are made on a self-assessment basis. Claimants should satisfy themselves that any claim complies with the Refund Order. As is normal for self-assessed taxes and schemes, claims received are risk-assessed for review by Revenue. Each reviewed claim is assessed on its own merits.
Revenue has confirmed that they have not changed their interpretation of the law on the Refund Order. In recent times, though, their risk-assessment of claims has identified ineligible claims for the refund of VAT on various types of farm equipment, which is outside the scope of the Refund Order.
Claims that do not comply with the Order cannot qualify for a refund of the VAT. Where a VAT refund is refused by Revenue, a farmer can appeal the decision to the Tax Appeals Commission, which is an independent statutory body that hears and determines appeals against assessments and decisions of the Revenue Commissioners, including decisions to refuse claims under this Refund Order.
222. Deputy Catherine Murphy asked the Minister for Finance if he will clarify whether the transfer of data and-or records from his Department that is transferred to other Departments, State bodies and local authorities is in aggregated form or on an individual basis; and the reason the data and-or records are provided. [3081/24]
View answerI understand that the question is seeking clarification on the transfer of personal data and/or records, as per the Deputy's previous question, no. 333 of 17 January 2024, and my answer will therefore relate to personal data, rather than the transfer of data and/or records in general.
As previously set out, 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. The data shared - which would generally relate to Departmental staff information - may be aggregated or individual depending on the legislative provisions which set out the purpose for which the data can be shared.
223. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 359 of 17 January 2024, the number of residential units subject to the 10% rate of stamp duty with respect to the acquisition of certain residential property where a person acquires at least ten such units during a 12-month period, disaggregated by county in which the property was located, in each of the years 2021, 2022 and 2023. [3097/24]
View answerI am advised by Revenue that, based on returns for the period since the commencement of the Section, the available information for the years 2021, 2022 and 2023 is as shown in the table below. The information has been aggregated for the relevant years and for counties with low numbers of properties to protect taxpayer confidentiality. The data is provisional and may be subject to revision.
|
Stamp Duty Section 31E - County |
Number of properties |
|
Dublin |
696 |
|
Cork |
172 |
|
Carlow |
64 |
|
Kildare |
56 |
|
Meath |
55 |
|
Wicklow |
52 |
|
Offaly |
23 |
|
Roscommon |
19 |
|
Galway |
14 |
|
Limerick |
13 |
|
Westmeath |
13 |
|
Other |
28 |
|
Total |
1,205 |
224. Deputy Michael Creed asked the Minister for Public Expenditure, National Development Plan Delivery and Reform how the tender process operates for the Office of Government Procurement; if he will specifically outline how the Office of Government Procurement defines the most economically advantageous tender; how cost, product quality and environmental sustainability of the product are factored into the procurement process; if he will further clarify who exactly is obliged to procure from the successful tenderer; and if he will make a statement on the matter. [2442/24]
View answerOGP’s tendering process operates in adherence with the requirements of the National Public Procurement Policy Framework. OGP awards contracts based on relevant objective criteria ensuring compliance with the principles of transparency, non-discrimination and equal treatment.
Prior to publishing a tender, OGP conducts detailed market engagement to determine the capabilities of the market, and detailed stakeholder engagement to determine the Public Service Bodies (PSBs) requirements. OGP is obliged to award each tender based on the Most Economically Advantageous Tender (MEAT), as defined in Directive 2014/24/EU (Article 67). MEAT criteria may include qualitative, environmental and/or social aspects, specifically linked to the subject-matter of the public contract in question.
The split between price and the qualitative criteria is specific to each tender. Key factors influencing this split include the procurement regulations, relevant Government policies, marketplace capabilities and the Public Service Bodies requirements.
Each tender is objectively evaluated by a Sourcing Team which is comprised of relevant subject matter experts, representatives for key Public service Bodies and OGP.
The Procurement Regulations require that each tender advertised clearly identifies the Public Service Bodies that are in scope for that tender. Each tender advertised by OGP adheres to that requirement, clearly identifying the non-commercial Public Service Bodies that are in scope for that tender.
225. Deputy Thomas Pringle asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when funding will be provided to Donegal County Council for works for a sea wall which is to be built in County Donegal (details supplied); and if he will make a statement on the matter. [2471/24]
View answerCoastal protection and localised flooding issues are matters, in the first instance, for each local authority to investigate and address. To assist Local Authorities in managing the coastline for coastal erosion, the Office of Public Works (OPW) has undertaken a national assessment of coastal erosion (including erosion rates) under the Irish Coastal Protection Strategy Study (ICPSS) and the results of this study have been published on the OPW website. This data enables Local Authorities to develop appropriate plans and strategies for the sustainable management of the coastline in their counties.
The report of the Inter-Departmental Group on National Coastal Change Management Strategy was published in October 2023. This report contains a range of recommendations centred on developing management responses to coastal change over the short, medium and longer terms and providing a comprehensive whole of Government approach to the development of the range of policy responses that the challenge of coastal change encompasses. With regard to short-term measures, the report included a recommendation for local authorities to continue to identify potentially vulnerable locations that could be affected by coastal change, and to engage with local communities to help ascertain the most appropriate interventions.
The Minor Flood Mitigation Works and Coastal Protection Scheme was introduced by the OPW on an administrative, non-statutory basis in 2009. The purpose of the scheme is to provide funding to local authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas. Applications for funding from local authorities for measures, or studies, costing up to €750,000 can be made under this scheme. Funding of up to 90% of the total cost is available, subject to meeting specific economic, technical, social, and environmental criteria.
Following an application by Donegal County Council, the OPW approved funding to undertake a Coastal Flooding and Erosion Risk Management (CFERM) study at multiple locations including Magheraroarty, in 2018. The aim of the study was to inform the appropriate measures necessary to address the coastal erosion risk into the future and identify any measures necessary to manage that risk. The draft study was completed by Donegal County Council in 2022.
At present, no request for funding has been received by the OPW, from Donegal County Council, for proposed works at Magheraroarty. Donegal County Council can submit a further application for additional funding under the Minor Flood Mitigation Works and Coastal Protection Scheme, for sea walls or other risk management measures at this location. The OPW will review and assess any such application in line with the relevant eligibility criteria.
226. Deputy Cathal Crowe asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if the OPW would consider selling the former Garda station in Broadford, County Clare, to the Broadford Parish Council; and if he will make a statement on the matter. [2547/24]
View answerI am advised by the Commissioners of Public Works (OPW) that they, like other State bodies, are obliged to follow central Government policies on the disposal of surplus properties including former Garda station properties. The arrangements involved are set out in the following Department of Public Expenditure, NDP Delivery and Reform (DPENDR) Circulars:
• Circular 11/2015: Protocols for the Transfer and Sharing of State Property Assets
• Circular 17/2016: Policy for Property Acquisition and for Disposal of Surplus Property
As a matter of policy, no property is disposed of until there is absolute certainty that there is no alternative State use for that property.
The OPW policy with regard to non-operational (vacant) State property is to:
1. Identify if the property is required/suitable for alternative State use by either Government Departments or the wider public sector.
2. If there is no other State use identified for a property, the OPW will then consider disposing of the property on the open market if and when conditions prevail, in order to generate revenue for the Exchequer.
3. If no State requirement is identified, or if a decision is taken not to dispose of a particular property, the OPW may consider community involvement (subject to a detailed written submission, which would indicate that the community/voluntary group has the means to insure, maintain and manage the property and that there are no ongoing costs for the Exchequer).
In line with the above policy and in accordance with the Department of Public Expenditure, NDP Delivery and Reform Circular: Protocols for the Transfer and Sharing of State Property Assets. (DPENDPR Circular 11/15) the OPW sought alternative State use by offering the property to all relevant State Bodies including Clare County Council but none of the State Bodies expressed an interest in acquiring the property.
Therefore, in the absence of an agreed proposal from a State body to acquire the property, the OPW must dispose of the former Garda station on the open market in an open and transparent manner.
The former Garda station at Broadford is currently being prepared for sale by public/online auction, which will be held at 12 pm on 15 February 2024 and managed by Rooney Auctioneers. Full details of the auction are available from Rooney Auctioneers, 99 O’Connell Street, Limerick, V94 P8CY and www.rooneys.eu.
227. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform further to Parliamentary Question No. 246 of 14 December 2023, to detail the practical implications of retired members attempting to claim this supplementary pension; if he plans to reform the current system; and if he will make a statement on the matter. [2618/24]
View answerAs the Deputy is aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.
I have previously detailed the practical implications on retired members claiming a supplementary pension in my reply to Parliamentary Question No. 246 of 14 December 2023.
Furthermore, with regards to reform of the current system, as previously mentioned in my reply to Parliamentary Question No. 246 of 14 December 2023:
“My Department is aware that there are some issues concerning the procedures for qualifying for the payment of an Occupational Supplementary Pension and we are liaising with the DSP and other key stakeholders to review the processes involved and establish if a more efficient and streamlined approach is possible.”
It should be noted that no Interdepartmental Working Group has been established to examine this matter, rather officials are engaging with the relevant stakeholders in order to progress the matter. My Department understands that this is a live issue and appreciate the concerns raised by members of An Garda Síochána and their representative bodies and the matter is under active consideration.
228. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide a schedule of official flights and costs of same taken by him in 2023; if a schedule will be provided of all hotels he stayed in in 2023, including hotel name and cost per night while on official State business; and if the same information will be provided in respect of all accompanying staff and advisors. [2649/24]
View answerIn my capacity as Minister for Public Expenditure, NDP Delivery and Reform I undertook two visits on official state business to Germany for St. Patrick's Day and the United States in November. A full breakdown of costs for myself and the officials who accompanied are outlined below:
|
Flight Costs |
Le Meridien |
Hotel Berlin |
Recouped from Eurogroup |
||
|
Germany 15-18 Mar |
Minister |
€218.20 |
€400 per night |
€180 per night |
Yes |
|
Private Secretary |
€218.20 |
€400 per night |
€180 per night |
||
|
Special Adviser |
€218.20 |
€400 per night |
€180 per night |
||
|
Secretary General |
€480.47 |
€400 per night |
€180 per night |
||
|
Flight Costs |
Dupont Circle |
Fitzpatricks |
Recouped from Eurogroup |
||
|
USA 28 Nov - 1 Dec |
Minister |
€4,250.88 |
€192.79 per night |
€328.64 per night |
Yet to be recouped - waiting on final invoice |
|
Private Secretary |
€967.58 |
€192.79 per night |
€328.64 per night |
||
|
Special Adviser |
€937.85 |
€192.79 per night |
€328.64 per night |
||
|
Secretary General |
€937.85 |
€192.79 per night |
€328.64 per night |
I would note that I undertook some elements of both programmes in my capacity as President of the Eurogroup. As such, the costs of both visits for myself were recouped from the European Council.
