Written Answers Nos. 101-120
101. Deputy Matt Carthy asked the Minister for Finance further to Parliamentary Question No. 72 of 25 January 2024, if he will report on his engagements with the Minister for Foreign Affairs in relation to the Illegal Israeli Settlements Divestment Bill 2023; and if he will make a statement on the matter. [5049/24]
View answerGiven that it seeks to amend the NTMA Acts in relation to investments made by the Ireland Strategic Investment Fund the Illegal Israeli Settlements Divestment Bill 2023 is under my Department’s responsibility. There has been engagement between my officials and officials of the Department of Foreign Affairs on the Bill since its publication in March last year. Such engagements have included information sharing and coordination in the respect of foreign policy approaches to Israel and the Occupied Palestinian Territories.
102. Deputy Cathal Crowe asked the Minister for Finance if he will consider reducing the VAT rate for the tourism and hospitality sectors back down to 9%; and if he will make a statement on the matter. [5068/24]
View answerAs the Deputy will be aware the 9% VAT rate applied on a temporary basis to the hospitality and tourism sectors until 31 August 2023 when it reverted to the 13.5% rate. The 9% rate was introduced on 1 November 2020 in recognition of the fact that the tourism and hospitality sectors were among those most impacted by the public health restrictions put in place throughout the pandemic.
The economic rationale for a VAT rate reduction at that time as it was in 2011 when it was also reduced to 9% was to lower consumer prices, encouraging higher demand, more output and an increase in employment.
Despite facing numerous successive headwinds over recent years, the domestic economy has proven to be remarkably resilient. Looking ahead, as inflation eases, the real disposable income of households should recover and support consumer spending. As a result, households are on a stronger financial footing and this will support demand for contact-intensive services including the tourism and hospitality sectors.
In relation to employment, between the end of 2020 when the 9 per cent rate was re-introduced, and the third quarter of 2023, total economy-wide employment expanded from 2.3 million to reach a record high of 2.66 million, an increase of 17 per cent. The Q3 2023 Labour Force Survey indicated that employment in the accommodation and food service sector stood at 181,000.
It is noteworthy that 14 EU countries have a VAT rate of 12% or higher on food services. Our nearest neighbour in Great Britain and Northern Ireland has a VAT rate of 20% on food services.
It is important to remember that VAT reductions, even temporary VAT reductions, have a cost to the Exchequer. The estimated cost of the 9% VAT rate for tourism and hospitality, from 1 November 2020 to 31 August 2023, was €1.2 billion. This represented a very substantial support by the Government to the hospitality and tourism related sectors.
The cost of a further temporary VAT reduction to 9% for a full year is estimated to be €764m.
The Government wants to maintain a healthy and profitable environment for the sector going forward. However, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework.
The Deputy will be also be aware that I recently announced changes to the tax debt warehouse scheme including a reduction in the interest rate on warehouse debt to 0% which, amongst other sectors, will assist businesses in the tourism and hospitality sector.
As at 26 January 2024, approximately 5,700 customers in the Accommodation and Food Service sector have warehoused debts amounting to €265 million, it should be noted that just over 3,100 (56%) of these have warehoused debts of less than €5,000.
In light of these points I have no plans to reduce the VAT rate for the tourism and hospitality sector to 9%.
103. Deputy Michael Lowry asked the Minister for Finance if he has been made aware of issues regarding the issuance of cheque books by Irish banks; if steps are being taken to address the issue; if there is a problem with the supply of cheque books due to issues with the printing companies; if so, the measures being taken to resolve this issue to ensure that customers of Irish banks are not adversely affected; and if he will make a statement on the matter. [5070/24]
View answerThe sourcing and issuing of cheque books to their customers is an operational matter for the banks concerned and is, therefore, not a matter in which the Minister has a statutory function.
However, a recommendation of the Retail Banking Review, which was published in November 2022, was that the Department of Finance should lead on the preparation of a new National Payments Strategy (NPS) to be ready in 2024. The Retail Banking Review recommended that the NPS set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, as well as the use of cheques and other issues.
The Department of Finance has established a dedicated team to develop the NPS and the Terms of Reference for the National Payments Strategy were published on 27 June 2023. A key objective of this Strategy is Access and Choice by promoting reasonable options for consumers and small businesses in the payment methods currently available to consumers in Ireland.
The NPS team is engaging with the key stakeholders in the public and private sectors to ensure the NPS incorporates input from across society on the areas covered by the ToR. In addition, the team is seeking the views and perspectives from the wider public, both business and consumers from across all parts of society and the economy through a public consultation. The consultation paper is being hosted online at https://consult.finance.gov.ie/en, with a closing date for submissions of 14 February 2024.
104. Deputy Mairéad Farrell asked the Minister for Finance further to Parliamentary Question No. 212 of 30 January 2024, if the initial information requested will be provided in the manner in which it was initially sought, in tabular form with the variables specified therein; and if he will make a statement on the matter. [5232/24]
View answerThe NTMA has informed me that the Ireland Strategic Investment Fund (ISIF) is a commercial investor in a range of businesses, platforms and projects which support the delivery of new homes in Ireland. These investments are in private market commercial operations, typically featuring a significant quantum of third-party investment that deliver a range of housing tenures including purpose-built student accommodation (PBSA). These platforms include the partnership with Harrison Street Europe that was announced in September 2023 to fund regional new build PBSA, ISIF’s investment with Activate Capital which provides lending to the homebuilding sector and has funded a number of new PBSA developments and a long-term funding commitment to Dublin City University to deliver infrastructural improvements including on campus student accommodation.
A summary of these investments by ISIF is shown in the table below;
|
Investment |
ISIF Commitment |
Date of Investment |
|
Activate Capital |
€500m* |
July 2015 |
|
Dublin City University |
€54m |
April 2016 |
|
Harrison Street European Property Partners III |
€25m |
December 2021 |
|
Harrison Street European Property Partners IV |
€75m |
September 2023 |
*Activate Capital provides homebuilding finance to deliver new homes across a range of tenures including the provision of finance for two student accommodation schemes located in Dublin 1 and Cork city.
105. Deputy Peadar Tóibín asked the Minister for Finance the number of times he embarked on visits to foreign countries on behalf of the State since the formation of the Government; the geographical location of each visit; the number of days he spent abroad on such trips; the dates upon which each trip took place; and the associated travel and accommodation costs which were incurred by his Department in relation to each trip, in tabular form [5241/24]
View answerIt is not possible for my Department to provide this information in the time available. I will make arrangements to provide this information to the Deputy as soon as possible in line with Standing Orders.
106. Deputy Bernard J. Durkan asked the Minister for Finance if it can be clarified as to whether a person (details supplied) received any recent communications from the Revenue Commissioners given he received notification of same but could not find the document on his ROS account; and if he will make a statement on the matter. [5254/24]
View answerIn relation to the matter raised by the Deputy, I am advised by Revenue that the person concerned has been in correspondence with them in relation to this matter and clarification on the matter has been provided to the person directly.
107. Deputy Peadar Tóibín asked the Minister for Finance the amount spent on traditional and online advertising by his Department in each of the past ten years and to date in 2024, in tabular form. [5348/24]
View answerThe information requested by the Deputy in relation to the amount spent by my Department on advertising from 2013 to date in 2023 is set out in tabular form below, which includes both traditional and online advertising.
The Department is not in a position to demarcate online spend from other forms of expenditure, as some advertising will inevitably involve both.
|
Year |
|
|
|
2014 |
Recruitment for the position of Head of International & EU Division in the Sunday Business Post and Sunday Times online |
€2,787.41 |
|
|
Notice re: winding up of SAT/ICAROM (Insurance Corporation of Ireland) in Irish Daily Mail |
€130.18 |
|
|
Creative strategy, production and burst 1 of campaign to increase awareness of the Supporting SME online tool on social media |
€27,683.70 |
|
2015 |
Advertisement for the position of Governor of the Central Bank |
€12,300.00 |
|
|
Local Property Tax Review advertisements in Irish Times, Irish Independent and Irish Examiner |
€7,181.56 |
|
|
Campaign to increase awareness of the Supporting SME online tool on social media |
€50,519.18 |
|
2016 |
Mortgage Arrears Communication Campaign |
€73,136 |
|
|
Advertising: Switch Your Bank* |
€24,682 |
|
|
Outside Broadcasting of National Economic Dialogue |
€17,657 |
|
2017 |
Advertising: Switch Your Bank* |
€717,746 |
|
|
Outside Broadcasting of National Economic Dialogue |
€17,657 |
|
|
Information notice re: Beneficial Ownership |
€2,408 |
|
|
Graphic Design: Public Awareness Campaign |
€480 |
|
|
Advertising: Switch Your Bank* |
€73.80 |
|
|
Advertising: European Financial Forum |
€24.60 |
|
2018 |
Advertising: Switch Your Bank* |
€405,900 |
|
|
Outside Broadcasting of National Economic Dialogue |
€13,616 |
|
|
Advertising: Board Recruitment |
€1,707 |
|
|
Irish Language Notice (The Department's Irish Language Scheme) |
€1,240 |
|
|
Irish Language Notice (The Department's Irish Language Scheme) |
€983 |
|
2019 |
Advertising: Vacancy for Governor of Central Bank of Ireland |
€12,300 |
|
|
Advertising: Switch Your Bank* |
€2,066.40 |
|
2020 |
Irish Language Notice (The Department's Irish Language Scheme) |
€815.07 |
|
|
Advertising: Switch Your Bank* |
€2,066.40 |
|
2021 |
Advertising: Switch Your Bank* |
€3,018.95 |
|
|
Advertising: Vacancy for Appeals Commissioner in the Tax Appeals Commission |
€1,353.00 |
|
|
**Commission on Taxation |
€28,858.93 |
|
|
***FSD |
NIL |
|
2022 |
Advertisement placed in the Irish Times for the position of Financial Services and Pensions Ombudsman |
€3,049.54 |
|
|
**Commission on Taxation |
€23,102.09 |
|
|
****Banking/FSPO |
NIL |
|
|
*****Fiscal |
NIL |
|
2023 |
No spend |
|
|
2024 |
No spend to date |
|
*The cost of the Switch your Bank campaign is fully recoupable by AIB and Permanent TSB in the context of their restructuring plans. These costs relate to a Public awareness campaign as part of a range of competition measures agreed with the European Commission to raise awareness and promote customer switching of financial products. The Department of Finance facilitates this campaign as part of its remit to ensure that consumers are protected within the financial sector in Ireland and to ensure a healthy level of competition.
**Commission on Taxation: This relates to online advertising spend and it may include some traditional forms of advertising. It is not possible at the moment to provide an exact breakdown as to what advertising campaigns this spend relates to. However, a total of €4,442 was spent across LinkedIn and Twitter as part of the Public Consultation and Extension campaign.
***There was no direct spending on online advertising for the Financial Services Division. However, €4,879 was spent in 2021 on a consultancy contract with Daniel J Edelman. The consultancy was for specialist advice and support on the use of social media in international contexts for the international launches of the Government of Ireland’s Ireland for Finance strategy.
****Banking division had no direct spending on social media in either 2022 or 2021. However, Banking Division contributed €150,000 to help fund the CCPC bank switching campaign “Breaking Up with Your Bank” in August 2022. The CCPC managed how the advertising funds are spent across platforms in 2022.
*****In addition, the Department also contributed €35,000 to the Department of Housing, Heritage and Local Government for a joint print and social media campaign regarding the Residential Zoned Land Tax.
108. Deputy Peadar Tóibín asked the Minister for Finance if his Department has spent money or sought external assistance with Departmental, Ministerial public relations; if so, the cost; and the name of the agencies, consultants and companies involved in each of the past ten years and to date in 2024, in tabular form. [5366/24]
View answerI wish to inform the Deputy that my Department does not currently employ any persons or firms to deal with public relations.
From August 2019 to January 2020, my Department had a public relations contract with Daniel J. Edelman Ireland Limited. This contract was for the provision of specialist advice on using social media in overseas markets to promote Ireland for Finance. The value of this contract was €29,274 (incl. VAT).
109. Deputy Peadar Tóibín asked the Minister for Finance the amount spent by his Department on legal costs or legal services in each of the past ten years and to date in 2024, in tabular form. [5384/24]
View answerThe legal costs incurred by my Department were not collated centrally until recent years. Below is a table of the amount spent on legal costs or legal services by the Department of Finance in recent years. Please note that a search of official records indicates expenditure on legal fees incurred by the Shareholding & Financial Advisory Division from 2014 to 2019, while 2020 to date reflects the total legal cost for the Department of Finance.
|
Year |
Cost ( € ) |
|
January 2024 |
Nil to date |
|
2023
|
470,683.87 |
|
2022 |
282,900.02 |
|
2021 |
267,325.37 |
|
2020 |
1,097,383.18 |
|
2019 |
314,934.2 |
|
2018 |
988,336.68 |
|
2017 |
1,668,980.46 |
|
2016 |
347,797.58 |
|
2015 |
1,944,739.88 |
|
2014 |
1,602,092.54 |
110. Deputy Peadar Tóibín asked the Minister for Finance the amount spent by his Department on the procurement of office space and furniture and office IT equipment in each of the past ten years and to date in 2024. [5402/24]
View answerI wish to advise the Deputy that the procurement of office space is the responsibility of the Office of Public Works.
Please find attached tables which contain expenditure figures in respect of Office Furniture and Fittings and ICT for the past 10 years. This is based on the expenditure as per our financial reporting systems.
|
Year |
Office Furniture and Fittings Spend |
|
2014 |
€28,873.36 |
|
2015 |
€165,252.31 |
|
2016 |
€437,587.07 |
|
2017 |
€230,234.91 |
|
2018 |
€222,974.04 |
|
2019 |
€206,775.29 |
|
2020 |
€262,229.90 |
|
2021 |
€288,528.41 |
|
2022 |
€75,805.28 |
|
2023 |
€83,356.40 |
|
2024 to date |
€821.39 |
|
Total |
€2,002,438.36 |
111. Deputy Jim O'Callaghan asked the Minister for Finance if his Department intends to take steps to ensure that the public will have access to the Central Register of Beneficial Ownership which was recently restricted as a result of a judgment by the Court of Justice of the European Union; and if he will make a statement on the matter. [5432/24]
View answerIn November of 2022, the Court of Justice of the European Union ruled in Joined Cases C-37/20 and C-601/20, that a provision of the EU AML directive, under which information on the beneficial ownership of corporate and other legal entities, held in central registers, must be provided to the general public, is invalid. The Court found that the provision interfered with the rights recognised in Articles 7 and 8 of the Charter of Fundamental Rights of the EU.
To ensure our domestic legislation complies with the Court’s ruling, and following consultation with the Office of the Attorney General, a Statutory Instrument was prepared amending Regulations which govern two of Ireland’s registers of Beneficial Ownership information - the Register of Beneficial Ownership of Companies and Industrial & Provident Societies (RBO) that operate under the auspices of the Companies Registration Office as well as the Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts, which is operated by the Central Bank of Ireland.
As Minister for Finance, I signed into law the relevant Regulations: S.I. 308 of 2023, the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) (Amendment) Regulations 2023.
The Deputy maybe aware, that recent political agreement was reached in Brussels in respect of the new EU AML ‘Rule Book’. However, formal agreement including the text remains to be agreed by all Member States. The EU Council proposes that provision for access to Beneficial Ownership information, by the public, should be on the basis of ‘legitimate interest’. Following agreement of the new EU AML package, officials will consider what further amendments to domestic legislation are required, as part of the transposition process.
Transparency is very important in this area and we must await the outcome of the new EU AML package to see if changes can be made to enable more access to the registers of Beneficial Ownership in Ireland.
In the meantime, however, I have asked my officials to examine this issue further and to assess whether it is possible, currently, to allow more access within the parameters of EU law and in a manner consistent with the ECJ judgement.
112. Deputy Frankie Feighan asked the Minister for Finance if he will consider as part of his planning for Budget 2025 re-introducing the tax relief at €2,000 for persons paying tax in the State who have private health insurance and have experienced the dramatic price rises in their premiums in recent months. [5441/24]
View answerSection 470 of the Taxes Consolidation Act 1997 (TCA 1997) provides for tax relief in respect of payments made to authorised insurers under relevant contracts in respect of medical insurance and dental insurance.
Qualifying medical insurance policies can be for health insurance, dental insurance or health and dental insurance combined.
Tax relief is given as a reduction on the cost of the policy. This is known as tax relief at source, and under this treatment policy holders pay a reduced premium to the medical or dental insurer (i.e. pay the net of tax relief amount) and the authorised insurer makes a claim to Revenue for the tax relief granted at source to the policy holder.
Tax relief for medical insurance premiums is provided at the standard rate of income tax, of 20 per cent. The relief available is equal to the lesser of (a) 20 per cent of the cost of the policy or (b) 20 per cent of €1,000 per adult or €500 per child insured.
It should be noted that a child for the purpose of this credit is a child under 21 years of age in respect of whom a child premium has been paid.
The current ceilings on the premium values qualifying for tax relief were introduced in Budget 2014 as the cost of the tax relief had increased significantly in the years leading up to this change. In addition, despite the increasing cost of the relief, the numbers insured were estimated to have reduced by around 150,000 over the same period, while at the same time the level of medical cover had decreased on some policies. Against this background the increase in costs was unsustainable.
To answer the Deputy’s specific question, I have no current plans to enhance the relief. However, it is important to point out that the current ceilings ensure a level of continuing support via the tax system for those who purchased medical insurance policies, while reducing Exchequer exposure to more expensive policies. The relief is provided at source, which ensures that individuals on lower incomes can receive the full benefit of the available relief.
Finally, as the Deputy may be aware, the Commission of Taxation and Welfare recommended that in the context of the implementation of Sláintecare relief for private health insurance should be phased out over time. Further details are set out in the Commission’s report:
https://www.gov.ie/en/publication/7fbeb-report-of-the-commission/
113. Deputy James Lawless asked the Minister for Finance the number of persons that have applied for the renters tax credit (details supplied); the number of individuals who are eligible to apply for this tax credit; the reasons for persons who are not applying for this credit; and if he will make a statement on the matter. [5497/24]
View answerThe 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. The same option is available for claims relating to 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.
I am advised that as of 25 January 2024, 453,777 Rent Tax Credit claims have been made by 310,891 taxpayer units consisting of:
• 136,660 taxpayer units that made claims for 2022 only,
• 102,473 taxpayer units that made claims for both 2022 and 2023,
• 5,413 taxpayer units that made claims for both 2022 and 2024,
• 41,415 taxpayer units that made claims for 2023 only,
• 5,678 taxpayer units that made claims for both 2023 and 2024,
• 4,591 taxpayer units that made claims for 2024 only,
• 14,661 taxpayer units that made claims for 2022, 2023, and 2024.
Data for claims relating to PAYE taxpayers is set out by county in the table below.
|
County |
Number of taxpayer units claiming RTC |
||
|
|
2022 Year of Assessment |
2023 Year of Assessment |
2024 Year of Assessment |
|
CARLOW |
2,346 |
1,479 |
247 |
|
CAVAN |
2,139 |
1,355 |
210 |
|
CLARE |
3,243 |
2,086 |
391 |
|
CORK |
29,357 |
17,905 |
3,231 |
|
DONEGAL |
3,263 |
2,046 |
363 |
|
DUBLIN |
122,109 |
78,051 |
14,449 |
|
GALWAY |
18,560 |
10,936 |
2,103 |
|
KERRY |
3,952 |
2,380 |
381 |
|
KILDARE |
9,181 |
5,894 |
1,076 |
|
KILKENNY |
2,740 |
1,830 |
329 |
|
LAOIS |
2,027 |
1,301 |
263 |
|
LEITRIM |
848 |
485 |
91 |
|
LIMERICK |
12,697 |
7,299 |
1,315 |
|
LONGFORD |
1,502 |
939 |
167 |
|
LOUTH |
3,519 |
2,355 |
443 |
|
MAYO |
3,712 |
2,361 |
460 |
|
MEATH |
4,819 |
3,228 |
577 |
|
MONAGHAN |
1,794 |
1,175 |
208 |
|
OFFALY |
2,108 |
1,330 |
246 |
|
ROSCOMMON |
1,680 |
1,060 |
209 |
|
SLIGO |
3,036 |
1,759 |
314 |
|
TIPPERARY |
4,495 |
2,860 |
493 |
|
WATERFORD |
5,011 |
3,171 |
591 |
|
WESTMEATH |
3,752 |
2,405 |
428 |
|
WEXFORD |
4,054 |
2,539 |
449 |
|
WICKLOW |
3,155 |
2,056 |
393 |
|
Not Currently Available |
4,108 |
3,942 |
916 |
|
Total |
259,207 |
164,227 |
30,343 |
114. Deputy Paul Donnelly asked the Minister for Finance the estimated cost of reducing the VAT rate to 9% for tourism and hospitality sector from 1 March 2024 to 30 November 2024. [5520/24]
View answerThe Deputy should note that VAT operates in two monthly cycles. The estimated cost of reducing the VAT rate to 9% for those sectors that previously had a 9% rate applied is €521million for the period 1 March to 31 October, and €653 million for the period 1 March to 31 December 2024.
115. Deputy Steven Matthews asked the Minister for Finance the position regarding the review of the tax debt warehousing scheme; and if he will make a statement on the matter. [5560/24]
View answerThe Tax Debt Warehousing Scheme has provided vital and practical liquidity support to businesses during the COVID pandemic and subsequent cost of living challenges by assisting businesses with their cash-flow during difficult trading periods, thereby preventing business failure.
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 reduced interest rate of 3% was to be applied.
However, on Monday 5th February, I announced that the interest rate applying to warehoused tax debt will be further reduced to 0% until such time as the debt has been paid or all customers have exited the scheme.
This change has been made in light of the unique nature of the warehoused debt, and in order to further support otherwise viable businesses which were impacted by public health restrictions during the pandemic. While the necessary legislation will be introduced at the next available opportunity, in the interim Revenue has confirmed that it will operate the reduced rate on an administrative basis and refund any taxpayers who have already paid interest at the 3% rate in respect of warehoused debt.
The total debt in the warehouse has decreased substantially since January 2022 when over €3 billion was warehoused for over 100,000 customers. By 26 January 2024, a total of €1.72 billion was warehoused for 57,435 customers, of which 70 per cent have outstanding liabilities of less than €5,000. The bulk of the debt (€1.47 billion) was warehoused by 5,265 customers with outstanding balances greater than €50,000.
Businesses availing of the scheme are required to engage with Revenue by 1 May 2024 to make arrangements to pay the debt over an agreed period of time, based on their individual circumstances.
Revenue has advised me that their approach will be flexible in relation to payment plans on warehoused debt, having regard to the financial circumstances of each case and the customer's capacity to pay. These flexibilities include the possibility to extend the duration of payment arrangements beyond the typical three to five-year duration. In addition, Revenue has confirmed that an initial down payment may not always be required upon commencing a payment arrangement.
Revenue has also advised that a number of additional flexibilities are available to address any payment difficulties that may arise during the term of the payment arrangement, such as options to take a payment break, deferral of next payment due, amendment to payment date and amendment to monthly payment amounts.
With that said, it remains a key condition of the scheme that businesses continue to file their current tax returns and pay current liabilities as they fall due. By doing so, businesses will benefit from the 0% interest rate and flexible payment options available in respect of warehoused debt. The consequence of not meeting these conditions is that the warehouse facility is revoked, which will result in the standard interest rate of 10% applying and the immediate enforcement of all outstanding debt, including interest.
Where businesses are experiencing cashflow difficulties impacting their ability to meet ongoing tax obligations on a timely basis, the advice remains to engage with Revenue as soon as such difficulties start to arise, so that an agreed solution can be found. Where there is meaningful and proactive engagement, Revenue will work with businesses and give them every possible support in managing the payment of the debt over a timeline that suits the individual circumstances of the business.
116. Deputy Peter Fitzpatrick asked the Minister for Finance for assistance with a Revenue Commissioners issue (details supplied); and if he will make a statement on the matter. [5564/24]
View answerIn relation to the matter raised by the Deputy, I am advised by Revenue that they have been engaged with the representative of the person concerned and have set out the necessary steps to be completed so that the matter can be concluded.
On foot of the Deputy’s query, I am advised by Revenue that they will make further contact with the representative of the person concerned in the coming days to further clarify what is needed so that the matter can be finalised.
117. Deputy John Paul Phelan asked the Minister for Finance the expected impact on Exchequer revenues of a reduction in VAT on zero alcohol beers from 23% to 13.5%; the expected impact of such a change on consumption; and if he will make a statement on the matter. [5631/24]
View answerI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide an accurate costing for the measure outlined.
118. Deputy Gary Gannon asked the Minister for Finance when the rent tax credit of €750 will be paid out to those who have listed the tax credit on their Revenue Commissioner's account on or before 1 January; and the length of time a person will have to wait to receive their payment if they were to list their rent tax credit now or on any given day. [5724/24]
View answerThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997, was introduced by Finance Act 2022 and is available in respect of qualifying payments made during the years 2022 to 2025.
Claims for the Rent Tax Credit for 2022 and 2023 can be made by completing an Income Tax Return. For self-assessed taxpayers, an income tax return can be filed through the Revenue Online Service, and PAYE taxpayers can file an income tax return through myAccount. Any refund of tax due will be transferred to the bank account on record, and the majority of refunds are issued within 5 working days of making a claim.
PAYE taxpayers can also claim in-year relief using Revenue’s Real Time Credit facility on myAccount. This allows taxpayers to receive the benefit of the credit through their payroll over the course of the current year. Following such a claim, an amended Tax Credit Certificate will issue confirming the amount of relief and a revised Revenue Payroll Notification containing the total of the claimant’s tax credits will be made available to their employer. This process typically takes no more than 3 to 5 working days.
For 2022 and 2023, the maximum relief available is €500 per year, or €1,000 for jointly assessed couples. For 2024 and 2025, the maximum relief available is €750 per year, or €1,500 for jointly assessed couples.
Further information is available on the Revenue website at https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/rent-credit/index.aspx
119. Deputy Robert Troy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to detail efficiency reforms agreed as part of the new public sector wage agreement; and if he will make a statement on the matter. [5035/24]
View answerReform and transformation of our public services remains a key priority for government and it is always a feature of Public Service Agreements. As such, the proposed Public Service Agreement 2024 – 2026 includes a chapter on transformation. If ratified, the Agreement will underpin the ongoing transformation of our public services, allowing reform to continue in a collaborative and cooperative way.
The agreement also reaffirms the extensive provisions of previous agreements, as they apply to the transformation of public services, so that they can continue to provide a framework to enable the sustained transformation of public services.
In 2023, “Better Public Services – The Public Service Transformation 2030 Strategy” , was published. This strategy seeks to deliver better public services through the implementation of actions in line with the core themes of Digital and Innovation at scale, Workforce and Organisation of the future and Evidence informed policy and services designed for and with our public. The new agreement seeks to support this strategy as actions are initiated and progressed during its lifetime and provides for dialogue and engagement, in this regard.
The parties to the Agreement have acknowledged that the public service must play its part in taking a lead role, embracing and adapting to digitalisation and technological developments. This will include maximising the benefits of modern and emerging information technology including Artificial Intelligence, and related technologies, Robotic Process Automation (RPA) and Data Analytics.
Sectoral reform priorities are specified in the suite of strategies and plans that are contained in the Appendix. In support of public service delivery, there will be engagement, at sectoral level, in relation to these, which include, amongst others:
• Civil and Public Service Transformation Strategies;
• Cross Sectoral reform strategies that support the achievement of climate related goals;
• Health reform, including Slaintecare and the delivery of Regional Health Areas.
A key element of the proposed Agreement is that each sector will produce and publish reform action plans and progress reports that will demonstrate delivery each year. These plans provide each sector with an opportunity to identify and agree specific goals and initiatives to be progressed during the lifetime of the Agreement. This is in line with the previous Agreement - Building Momentum and is required in order for pay increases to be realised.
Full detail of the agreed overarching reforms can be found in chapter 2 of the Agreement which has been published and is attached.
120. Deputy Cathal Crowe asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an overview of the works, including costs incurred, undertaken at the Sate-owned Shannon 153 building in Shannon, County Clare as plans were being developed to transform it into an accommodation centre for international protection applicants; and if he will make a statement on the matter. [5231/24]
View answerIn 2022, the Office of Public Works (OPW) offered a State owned building, Unit 153 in the Shannon Business Park to the Department of Children, Equality, Diversity, Integration and Children, as a potential location for the accommodation of refugees fleeing the war in Ukraine.
The Department asked the OPW to consider a design and layout which would facilitate occupation by Ukrainian refugees and International Protection Applicants (IPAs).
The OPW developed suitable layouts and undertook necessary surveys to establish the condition of the building including the roof, building systems and services, structural fabric etc. These surveys were required regardless of how the building is to be used in the future.
The Department of Children, Equality, Diversity, Integration and Children has recently released its interest in the property and therefore the building is no longer required for provision of accommodation for refugees or IPAs.
No building works have been undertaken to this building to date. The costs associated with developing the proposed layouts for the building are currently being finalised.
