James Lawless
Question:202. Deputy James Lawless asked the Minister for Finance to examine tax a collection query (details supplied); and if he will make a statement on the matter. [11231/24]
View answerTax Collection
Questions (202)
Written answers
Finance Act 2000 introduced the gross roll-up taxation regime for investments in domestic funds (in section 58) and for investments in life policies (in section 53). While Finance Act 1990 had introduced anti-avoidance rules that are known as the “offshore funds” regime, Finance Act 2001 (section 72) amended the offshore funds regime to provide for gross roll-up in certain offshore funds that were similar to the Irish funds within the gross roll-up regime.
The general thrust of the regime is that there is no annual tax on income or gains arising within the investment. However, exit tax must be deducted on the occurrence of a “chargeable event”. Exit tax applies to the profit element of each chargeable event, and chargeable events originally included –
- the making of relevant payments (which includes any dividend),
- the redemption of the investment, and
- the transfer by an investor of their investment,
Finance Act 2006 introduced the eight-year deemed disposal for all investments that benefited from gross roll-up: that is, investments in Irish funds, investments in life policies and investments in offshore funds that were similar to Irish funds. The eight-year deemed disposal was introduced as a new category of ‘chargeable event’. This amendment was designed specifically to prevent the avoidance of tax by way of indefinite deferral of tax.
My Department has commenced a review of the funds sector - “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets” which, in line with the Terms of Reference, includes the taxation regime for funds, life assurance policies and other related investment products. A public consultation was held from 21 June 2023 to 15 September 2023 and the review is now well advanced. A report is to be presented to me by Summer 2024.
Tax Reliefs
Questions (203)
Michael Healy-Rae
Question:203. Deputy Michael Healy-Rae asked the Minister for Finance if he will consider introducing measures with regard to tax relief for certain professions (details supplied); and if he will make a statement on the matter. [11269/24]
View answerWritten answers
As the Deputy will appreciate, the introduction of any new tax expenditure measure takes place in the context of the annual Budget and Finance Bill process. Proposals for tax expenditure measures are assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
Furthermore, I must always be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base and a strong and convincing case for the benefits and outcomes needs to be articulated in order for due consideration to be given for the commitment of scarce taxpayer resources for such reliefs.
Finally, in relation to proposals which would benefit certain classes of taxpayers over others, I must also be mindful for the need for tax equity.
Therefore, I have no plans at present for tax measures along the lines suggested by the Deputy.
Tax Collection
Questions (204)
Mairéad Farrell
Question:204. Deputy Mairéad Farrell asked the Minister for Finance further to Parliamentary Questions Nos. 144 and 145 of 27 February 2024, it is stated that it is “the responsibility of the employer to ensure that all payments made to the individual are processed through the payroll system with PAYE, PRSI and USC deducted from the payments and remitted to the Revenue Commissioners; Currently the PRSI liability is being “reviewed” by the employment status investigation unit; at what stage will (details supplied) be assessed for commensurate tax liabilities and the reason this has not already happened with the employees already reclassified by (details supplied) and the Scope Section. [11385/24]
View answerWritten answers
I am advised by Revenue, that Revenue is precluded under Section 851A of the Taxes Consolidation Act 1997 from commenting on the tax affairs of an individual, business or entity.
Revenue is, therefore, not in a position to comment on the specific case or details referred to in this question.
Tax Yield
Questions (205)
Carol Nolan
Question:205. Deputy Carol Nolan asked the Minister for Finance the amount of the pension levy collected in respect of the An Post Superannuation Scheme between 2011 to 2015, inclusive, under Section 125B of the Stamp Duties Consolidation Act 1999; and if he will make a statement on the matter. [11387/24]
View answerWritten answers
As the Deputy will be aware the pension fund levy was introduced at a time when the economy was in very serious difficulties. It was charged on the market value of assets in pension schemes held on 30 June in each year at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015). The levy was discontinued from 2016.
Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets. Under the legislation, the payment of the levy was treated as a necessary expense of a pension scheme and it was a matter for the trustees or insurers to decide when and how the levy should be passed on to scheme members and to what extent, given the particular circumstances of the pension schemes for which they were responsible. I have no detailed information on the decisions made by any pension fund trustees or others in relation to this matter
I am advised by Revenue that, due to its obligation to maintain taxpayer confidentiality, as provided for in Section 851A of the Taxes Consolidation Act 1997, it cannot provide any details in relation to amounts of taxes or duties paid by an identified taxpayer.
I am further advised that the available statistical information in respect of the pension levy is published on the Revenue website at revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx .
Tax Reliefs
Questions (206)
Seán Canney
Question:206. Deputy Seán Canney asked the Minister for Finance if he will provide a VAT refund scheme on the purchase of a car for owners who provide respite services for people with a disability who use their car to transport the service users; and if he will make a statement on the matter. [11408/24]
View answerWritten answers
The Drivers and Passengers with Disabilities Scheme (DPDS) is provided for by Section 92 of the Finance Act 1989 and associated regulations and provides for repayment or remission of VAT and Vehicle Registration Tax (VRT), up to a certain limit, on the purchase or adaption of a vehicle for the transport of a person with specific severe and permanent physical disabilities.
The Scheme is available to a person with a disability who meets certain medical criteria specified in law and, in order to be eligible under the Scheme, the person must hold a Primary Medical Certificate (PMC). A PMC holder can apply in respect of a vehicle that is adapted to suit their needs as a driver or a vehicle that has been adapted to suit their needs as a passenger. The adapted vehicle should be registered in the name of the PMC holder in both cases. A family member of a PMC holder, who resides with or is responsible for the transportation of the PMC holder, can also apply and in these cases the adapted vehicle should be registered in the name of the family member.
The scheme is also available to certain charitable organisations. In order to qualify for the relief an organisation must be one which is entered in the register of charitable organisations under Part 3 of the Charities Act 2009, whose purpose is to provide services to person with disabilities and is engaged in the care and transport of disabled persons.
Full details of the Scheme, including the application procedures in respect of VAT and VRT repayment/remission and the legislative criteria which must be met, are set out in a detailed information leaflet available on the Revenue website at www.revenue.ie/en/importing-vehicles-duty-free-allowances/documents/vrt/vrt7.pdf./
Tax Credits
Questions (207)
Michael Moynihan
Question:207. Deputy Michael Moynihan asked the Minister for Finance further to Parliamentary Question No. 160 on 27 February 2024, and the reply given, if he could provide in tabular form a county breakdown of the 333, 309 taxpayer units that had made rent tax credit claims as of 22 February 2024. [11456/24]
View answerWritten answers
Further to my previous reply, the Deputy may wish to note that Rent Tax Credit (RTC) claims are made in relation to a particular year of tax assessment. I previously provided a table setting out the numbers of taxpayer units claiming RTC, broken down by year of assessment and by county as at 22 February 2024. For ease of reference, I am again providing this table below.
Taxpayers have up to four years in which to make a claim is respect of a year of assessment, and therefore, this data will change over time.
Revenue advise me that due to changing personal circumstances, not all claimants will be eligible to make a RTC claim in respect in respect of the same county in each of two or more years of assessment where they have made claims in respect of more than one year of assessment. Accordingly, it is not possible to provide a definitive breakdown of the total number of taxpayer units (333,309), who have ever claimed the RTC, by county.
To further assist the Deputy in understanding the distribution of these claims I am advised by Revenue that the 518,372 RTC claims made by 333,309 taxpayer units may be further broken down as follows:
(i) 109,891 taxpayer units that made claims for 2022 only,
(ii) 129,585 taxpayer units that made claims for both 2022 and 2023,
(iii) 5,624 taxpayer units that made claims for both 2022 and 2024,
(iv) 52,541 taxpayer units that made claims for 2023 only,
(v) 8,624 taxpayer units that made claims for both 2023 and 2024,
(vi) 6,429 taxpayer units that made claims for 2024 only,
(vii) 20,615 taxpayer units that made claims for 2022, 2023, and 2024.
Rent Tax Credit Claims by Year of Assessment and by County
|
County |
Number of RTC claims |
||
|
|
2022 Year of Assessment |
2023 Year of Assessment |
2024 Year of Assessment |
|
Carlow |
2,414 |
1,885 |
324 |
|
Cavan |
2,195 |
1,784 |
288 |
|
Clare |
3,332 |
2,648 |
510 |
|
Cork |
30,079 |
23,069 |
4,417 |
|
Donegal |
3,344 |
2,647 |
514 |
|
Dublin |
124,900 |
100,960 |
19,837 |
|
Galway |
18,935 |
13,804 |
2,832 |
|
Kerry |
4,077 |
3,163 |
496 |
|
Kildare |
9,446 |
7,548 |
1,440 |
|
Kilkenny |
2,830 |
2,302 |
449 |
|
Laois |
2,086 |
1,612 |
336 |
|
Leitrim |
865 |
617 |
119 |
|
Limerick |
12,983 |
9,477 |
1,777 |
|
Longford |
1,544 |
1,245 |
205 |
|
Louth |
3,637 |
3,074 |
600 |
|
Mayo |
3,844 |
3,079 |
605 |
|
Meath |
4,990 |
4,277 |
759 |
|
Monaghan |
1,872 |
1,553 |
280 |
|
Offaly |
2,210 |
1,802 |
342 |
|
Roscommon |
1,728 |
1,401 |
280 |
|
Sligo |
3,091 |
2,239 |
439 |
|
Tipperary |
4,654 |
3,729 |
666 |
|
Waterford |
5,143 |
4,091 |
804 |
|
Westmeath |
3,855 |
3,099 |
585 |
|
Wexford |
4,172 |
3,278 |
609 |
|
Wicklow |
3,232 |
2,611 |
515 |
|
Not currently available |
4,257 |
4,371 |
1,264 |
|
Total |
265,715 |
211,365 |
41,292 |
Customs and Excise
Questions (208)
Michael Healy-Rae
Question:208. Deputy Michael Healy-Rae asked the Minister for Finance what restrictions if any, are in place for bringing vegetables from the UK into Ireland for showcasing at a competition (details supplied); and if he will make a statement on the matter. [11471/24]
View answerWritten answers
I am advised by Revenue that from a Customs perspective, the temporary admission procedure can be used to import goods from outside the European Union for display at exhibitions or fairs. Under this procedure non-Union goods intended for re-export and subject to a specific use while in the EU can be temporarily imported with total relief from import duties.
This procedure can be used provided that the goods:
• are not intended to undergo any change, except normal depreciation due to the use made of them,
• are re-exported within a specified time frame and
• are covered by security or duty on deposit where a customs debt may be incurred for the goods placed under the procedure.
An application to import goods under the temporary admission procedure can be made on the Customs import declaration (a H3 declaration submitted to Revenue’s Automated Import System) at the time of importation.
Revenue also advises that a person coming into the EU from the UK has a duty-free allowance of €430. If the value of goods being imported in a person’s luggage or accompanied by a person is less than €430, there is no requirement to pay import duties. No VAT is payable as there is a 0% VAT rate on vegetables entering the EU from the UK.
As products listed are regulated for plant health, each participant will additionally require a phytosanitary certificate to accompany their produce and present to Department of Agriculture, Food, and the Marine on entry. DAFM have informed me that their Plant Health division is happy to engage with the National vegetable society on this matter and develop a process that facilities checks on entry for participants from Great Britain.
Tax Reliefs
Questions (209)
Cian O'Callaghan
Question:209. Deputy Cian O'Callaghan asked the Minister for Finance if he will consider a case (details supplied) whereby a person has been refused the mortgage interest tax relief; and if he will make a statement on the matter. [11473/24]
View answerWritten answers
Mortgage Interest Tax Relief is available for home owners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022.
Mortgage Interest Tax Relief is 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.
In order to avail of the relief, the taxpayer must file a 2023 Income Tax Return and upload their certificate of mortgage interest for 2022 and 2023, and confirmation of their mortgage balance at 31 December 2022. Furthermore, the taxpayer must have paid Income Tax in 2023 and be compliant with Local Property Tax requirements.
Finally, I am advised by Revenue that the person concerned, while they meet the qualifying criteria to claim the Mortgage Interest Tax Relief, cannot avail of the relief, as they did not pay any Income Tax in 2023.
Statutory Instruments
Questions (210)
Carol Nolan
Question:210. Deputy Carol Nolan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform how Section 17(1) of the Pensions (Increase) Act 1964, the Regulations made thereunder, and the Explanatory Note attached to S.I. No. 55/1977 impact the exercise of discretion by him, and if his discretion is absolute or fettered by these statutory provisions; and if he will make a statement on the matter. [11388/24]
View answerWritten answers
As Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy is aware, the Pensions (Increase) Act, 1964 provided for ministerial discretion on the application of pension increase policy for public servants, without a prescribed methodology for how increases would be calculated. The discretion is exercised by the Minister for Public Expenditure, NDP Delivery & Reform.
- Part II of the Act relates to the application of pension increases in 1962 only.
- Part III of the Act, which includes Section 17, relates to the application of pension increases in 1963 only. It is my view that Section 17 does not impact the exercise of ministerial discretion in the matter.
- Part IV of the Act codifies miscellaneous provisions, and includes Section 29, which provides for the ministerial discretion around application of public service pension increases.
The Regulations made under the Act generally also relate to pension increases granted at a point in time, and the methods used to calculate those increases.
The Explanatory Note attached to S.I. No. 55/1977 contextualises the intent of the instrument, which was to apply pension increases in 1976, and to clarify the methods to be used for those increases. The two methods specified were to increase public service pensions via comparison to in-service salaries as at 1 July 1976, and to increase Military pensions and other pensions by a flat percentage. It is my view that the Explanatory Note, and S.I. No. 55/1977 itself, do not impact the exercise of ministerial discretion in the matter.
To conclude, the statutory provisions do not impact Ministerial discretion on public service pension increases.
Tourism Industry
Questions (211)
Neasa Hourigan
Question:211. Deputy Neasa Hourigan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of visitors to the Phoenix Park Visitor Centre, in tabular form, in each month since January 2022 to date. [11464/24]
View answerWritten answers
My officials are currently evaluating and auditing the Visitor Data. Once the information has been collated, I will respond directly to the Minister
Employment Rights
Questions (212)
Bríd Smith
Question:212. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment the actions he is taking to protect workers' rights in the technology sector who are currently experiencing mass layoffs, specifically silent layoffs; the way in which he will ensure that companies are not able to circumvent collective redundancy laws by continuously dismissing employees to avoid consultation period with the workers and the Minister (details supplied); and if he will make a statement on the matter. [11230/24]
View answerWritten answers
Ireland has a robust framework of legislative protections and supports for workers who are impacted by redundancy. This includes:
• The Protection of Employment Act 1977, as amended, which requires employers in collective redundancy situations to consult with employees’ representatives and to notify the Minister for Enterprise, Trade and Employment before implementing redundancies.
• The Redundancy Payments Act 1967, as amended, which requires employers to pay statutory redundancy payment to eligible employees with more than two years’ service. Employers are also required to give at least two weeks’ notice under this Act before implementing a redundancy, distinct from any other statutory or contractual rights to minimum notice.
• The Minimum Notice and Terms of Employment Act 1973, as amended, which obliges employers to give a certain level of notice to employees prior to dismissal, with the length of such notice depending on the employee’s length of service,
• The Unfair Dismissals Act 1977, as amended, which protects employees with more than one year’s service from Unfair Dismissals.
The Protection of Employment Act 1977, as amended, defines a collective redundancy as where, during any period of 30 consecutive days, the employees being made redundant are:
• 5 employees where 21-49 are employed,
• 10 employees where 50-99 are employed,
• 10% of the employees where 100-299 are employed,
• 30 employees where 300 or more are employed.
It is the employer’s responsibility to comply with its obligations under the 1977 Act and there are robust mechanisms in place to ensure compliance. An employer who fails to initiate consultations and provide information to employee representatives or to notify the Minister is guilty of an offence and will be liable on summary conviction to a fine not exceeding €5,000. An employer who dismisses employees before the expiry of the 30-day period following notification to the Minister is guilty of an offence and will be liable on conviction on indictment to a fine not exceeding €250,000. The Workplace Relations Commission (WRC) is the statutory agency responsible for bringing such prosecutions.
The 30-day reference period and thresholds set out in legislation are in line with the majority of other Member States and I am satisfied that they are sufficient in achieving the objective of ensuring employees are consulted with and provided with relevant information. Any proposed change would require consultation with employee and employer representative groups and careful consideration would have to be given to avoid potential unintended consequences.
Where redundancies occur which are outside the parameters of collective redundancies, employers are still legally obliged to conduct the redundancy process fairly and to use reasonable selection criteria in choosing to make people redundant. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
If employees believe their employment rights as outlined above have been breached, they have the right to refer complaints to the WRC for an adjudication and compensation where appropriate.
Statutory redundancy is a lump-sum payment based on an employee’s pay and length of service. An eligible employee is entitled to two weeks' pay for every year of service plus one additional week's pay. Weekly pay is capped at €600 per week.
Any proposed changes to the minimum statutory redundancy payment would have to be considered in the overall policy and budgetary context. Consultation with employer and employee representative groups and other relevant stakeholders would also be required.
Finally, the State also supports workers who face job losses through the Intreo service of the Department of Social Protection, which can assist with income supports and training and employment opportunities.