Written Answers Nos. 261-280
261. Deputy John Paul Phelan asked the Minister for Transport for an update on plans to unblock potential barriers and streamline the process for the private sector companies to access grid connections for the installation of EV charging infrastructure; and if he will make a statement on the matter. [15317/24]
View answerThe Government is fully committed to supporting a significant expansion of the electric vehicle charging network over the coming years. Having an effective and reliable charging network is an essential part of enabling drivers to make the switch to electric vehicles.
The EV Charging infrastructure Strategy 2022-2025 sets out the government’s ambition regarding the delivery of a public EV charging network to support up to 195,000 electric cars and vans by the middle of the decade.
In relation to the grid, Zero Emissions Vehicles Ireland (ZEVI) continues to work closely with ESB Networks, a key member of the ZEVI Assurance Board and Progress Group. This partnership is integral to ZEVI's mission, as ESB Networks offers support, provides constructive feedback, and expert advice on ZEVI activities.
ZEVI will continue to work closely with ESB Networks to support their work to identify and if possible, reduce barriers to grid connection for EV charging; however, issues regarding the national electricity grid and connections rest with EirGrid and ESB Networks.
EirGrid and ESB Networks are independent of the Minister in the exercise of their respective functions. EirGrid, as Transmission System Operator, has responsibility for the development of the Transmission Network and ESB Networks, as Distribution System Operator, has responsibility for the development of the Distribution Network.
The Commission for Regulation of Utilities (CRU) was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 (ERA) and subsequent legislation. The CRU is an independent regulator, accountable to a committee of the Oireachtas and not the Minister.
262. Deputy Fergus O'Dowd asked the Minister for Transport to provide an update on progress to introduce the new DART hybrid fleet on the northern line to Drogheda; and if he will make a statement on the matter. [15322/24]
View answerFollowing Government approval for a fleet framework agreement between Irish Rail and Alstom in December 2021, 95 additional DART carriages were purchased for arrival in 2025. In November 2022, the Government approved a second purchase of fleet under the framework agreement, which will see 90 new battery-electric multiple units arrive by 2026.
The first of the new trains are due to arrive later this year, for testing and commissioning before deployment. The 30 electric carriages will be used, at least initially, to augment existing DART train services along the coast. The first batch of 65 battery-electric train carriages are expected to enter service on the Dublin to Drogheda line, in early 2026. To enable the roll-out of these DART trains to Drogheda, new battery-electric charging infrastructure is being developed at Drogheda station. This will allow the DART trains to operate on battery power between Malahide and Drogheda, in advance of the extension of overhead electric wires in future.
Part of the DART+ Programme, DART+ Coastal North will provide for the operation of fully electrified DART trains between Dublin city and Drogheda. In line with the Infrastructure Guidelines my Department has received the Preliminary Business Case for DART+ Coastal North and will shortly be submitting it to Government for approval.
Following Government approval a Railway Order application will be submitted to An Bord Pleanála for the DART+ Coastal North project. This is anticipated to occur in the second quarter of this year.
As the Deputy may be aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure, including the DART+ programme.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's question to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
263. Deputy Brian Leddin asked the Minister for Transport the progress of the Moyross train station as the pathfinder project for Limerick city; and if he will make a statement on the matter. [15325/24]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the works at Moyross train station.
Construction of a new train station at Moyross is proposed under the Limerick Shannon Metropolitan Area Transport Strategy (LSMATS). Moreover, in order to support the delivery of the National Sustainable Mobility Policy, which in turn is a key part of the Government’s plan to achieve a 50% reduction in transport greenhouse gas emissions in Ireland by 2030, I launched the Pathfinder Programme in October 2022. Construction of a new train station at Moyross was selected for inclusion in the Pathfinder Programme.
Noting the NTA's responsibility in this matter and the specific queries raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
264. Deputy Fergus O'Dowd asked the Minister for Transport the status of the proposed Ardee by-pass; and if he will make a statement on the matter. [15339/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
I can confirm that €240,000 has been allocated for the N52 Ardee Bypass scheme in 2024. As with all national roads projects in the NDP, the delivery programme for the project will be kept under review for 2025 and considered in terms of the overall funding envelope available to TII.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
265. Deputy Fergus O'Dowd asked the Minister for Transport to provide a full update on the funding requirements and allocations required to advance the N2 Ardee to Carrickmacross road project; and if he will make a statement on the matter. [15340/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals.
Noting the above position, I have referred your question to TII for a direct update as to the current status of this project. Please advise my private office if you do not receive a reply within 10 working days.
266. Deputy Paul Murphy asked the Minister for Transport if he will consider implementing technology which would allow, without the person taking the test having to make a complaint, for a review of each driving test examination; and if he will make a statement on the matter. [15344/24]
View answerUnder the Road Safety Authority Act 2006, the Road Safety Authority (RSA) has statutory responsibility for the Driver Testing Service. The Authority carries out the driving test to a standard that complies with the EU Directive on Driving Licences.
The Authority has an appeals process where, if an applicant is unhappy with how a driving test was conducted or believe they were unfairly treated, they can appeal the decision or raise a complaint. Under section 33(6)(a) of the Road Traffic Act 1961, a person aggrieved by a test decision may also appeal to the District Court. The Court will then examine whether or not the test was conducted properly. If the court determines that the tester did not conduct the test in accordance with procedures, a further test would be offered to the applicant free of charge.
267. Deputy Éamon Ó Cuív asked the Minister for Transport when the draft revised transport strategy for Galway will be published; and if he will make a statement on the matter. [15365/24]
View answerThe National Transport Authority (NTA), in conjunction with Galway City Council and Galway County Council, is currently developing the Galway Metropolitan Area Transport Strategy. The new strategy will provide a long-term strategic planning framework for the delivery of transport and the integrated development of transport infrastructure and services in the Galway Metropolitan Area. It will replace the existing Galway Transport Strategy which was published in 2016.
Given the NTA's role in the development of the strategy, I have referred the Deputy's question to the NTA for further information. Please contact my office if you do not receive a reply within 10 days.
268. Deputy Paul Donnelly asked the Minister for Transport the number and percentage of buses in the Bus Éireann fleet (excluding school transport scheme) and in the Dublin Bus Fleet that are aged over 12 years old as of 2 April 2024; and the number of new buses for both companies that would be needed to be provided each year to ensure all buses in the fleet are less then 12 years old. [15383/24]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the provision of the national Public Service Obligation bus fleet.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
269. Deputy Richard Boyd Barrett asked the Minister for Transport how many incidents and complaints have been logged in the past 24 months with regard to public and staff safety on the Sligo to Dublin train service, particularly between Sligo and Mullingar and vice versa; if any security or staffing measures will be implemented to provide safe transport for customers and staff on this train particularly between Sligo and Mullingar and vice versa; and if he will make a statement on the matter. [15393/24]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The issues raised by the Deputy in relation to complaints and staffing measures on the Sligo to Dublin train service are matters for Irish Rail. Therefore, I have referred the Deputy's question to Irish Rail for direct response to the Deputy.
Please advise my private office if you do not receive a reply within ten working days.
270. Deputy Denis Naughten asked the Minister for Transport if he will outline, in light of the EPA Research Report 454, titled "Farm-Carbon: Hedgerows and Non-forest Woodland (Hedgerow Carbon Project)”, the plans he has to direct Transport Infrastructure Ireland and local road authorities to expand the planting of hedges on motorway medians and on wide areas on the boundaries of our road network which are currently fallow; and if he will make a statement on the matter. [15482/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
271. Deputy Pearse Doherty asked the Minister for Finance if he is concerned that a marked gap in the price of petrol and diesel in the South compared to the North that will result from scheduled increases in excise duty this year could pose a threat to the trade and viability of firms and petrol stations in Border counties; and if he will make a statement on the matter. [13598/24]
View answer314. Deputy Matt Carthy asked the Minister for Finance the remaining increases to fuel excise due in 2024; if he will reconsider their implementation; and if he will make a statement on the matter. [15313/24]
View answerI propose to take Questions Nos. 271 and 314 together.
In 2022 in light of the acute impact rising prices were having on households and business, the Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, auto diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but following review and monitoring of fuel prices they were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, I provided for a further extension until 31 March 2024 with a phased restoration occurring in two stages; on 1 April 2024 and 1 August 2024.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.
To note national average prices have eased considerably from highs of over €2.00 per litre which we saw in 2022. As per the Central Statistics Office Consumer Price Index, average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre for both fuels in October 2023 to approximately €1.72 per litre for auto diesel and €1.71 for petrol in February 2024. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 1 April 2024 was approximately €1.73 for diesel and €1.74 for petrol.
As the Deputies will be aware, having fully considered all relevant information including recent consumer price trends, fuel market analysis and input from industry stakeholders, the Government has proceeded with the initial phase of the restoration of excise rates which took place on 1 April 2024. I will continue to monitor and review this data in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024.
272. Deputy Matt Carthy asked the Minister for Finance the Irish contribution or projected to the EU Multiannual Financial Framework in the years 2013 through the end of this MFF in 2027, in tabular form; and if he will make a statement on the matter. [13640/24]
View answerThe annual contribution of Ireland to the EU Budget from 2013 until 2023 is outlined in Table 1 below:
Table 1. EU Budget payments 2013-2023
|
Year |
Payments to EU Budget €m |
|
2013 |
1,726 |
|
2014 |
1,686 |
|
2015 |
1,952 |
|
2016 |
2,023 |
|
2017 |
2,016 |
|
2018 |
2,519 |
|
2019 |
2,432 |
|
2020 |
2,569 |
|
2021 |
3,507 |
|
2022 |
3,557 |
|
2023 |
3,683 |
Table 2 outlines my Department's forecast, which were prepared for Budget 2024, of the gross contribution for the remaining years until the end of the current MFF period, ending in 2027.
Please note that my Department will be updating its forecast in the coming weeks for the upcoming Stability Programme Update.
Table 2. EU Budget payment forecast 2024-2027
|
Forecast Gross Payments to EU Budget |
2024 (€m) |
2025 (€m) |
2026 (€m) |
2027 (€m) |
|
Total |
3,950 |
4,125 |
4,325 |
4,500 |
Based on my Department’s forecasts, Ireland’s contribution to the EU Budget over the remainder of the Multiannual Financial Framework (2021-2027) will continue to grow. This is directly linked to a number of factors, in particular Ireland’s economic performance which impacts on our EU Budget contribution due to the EU's Gross National Income (GNI) based own resource. This own resource (i.e. mechanism for Member States to make their contributions) accounts for a significant portion of the overall funding for the EU Budget.
273. Deputy Matt Carthy asked the Minister for Finance the total or projected Irish receipts from the European Union under the EU Multiannual Financial Framework in the year 2013 through the end of this MFF in 2027; and if he will make a statement on the matter. [13641/24]
View answerMy Department collects data on Ireland’s EU Budget receipts, from relevant Government Department's, for the previous year on an annual basis for publication in the Department of Finance Budgetary Statistics and EU Transactions Reports.
This operational data may be subject to revision and any updates which may be required are reflected in subsequent publication releases.
Ireland’s annual EU Budget receipts from from 2013 until 2022 are outlined in Table 1 below.
|
Year |
Receipts from EU Budget €m |
|
2013 |
1,673 |
|
2014 |
1,423 |
|
2015 |
1,774 |
|
2016 |
1,635 |
|
2017 |
1,586 |
|
2018 |
1,837 |
|
2019 |
1,806 |
|
2020 |
1,913 |
|
2021 |
2,418 |
|
2022 |
2,124 |
My Department will, in the coming months, be collecting the data on receipts for 2023, and this information will be published before the end of the year.
My Department does not forecast EU Budget receipts due to the inherent difficulties in doing so, as receipts are contingent on a number of factors such as Departmental drawdown capability and project implementation. That said, my Department anticipates that Ireland’s receipts for the remainder of the Multiannual Financial Framework (2021-2027) will be in the range of approximately €2 - 2.5 billion each year.
274. Deputy Seán Canney asked the Minister for Finance if he will examine the system by which genuine claims for compensation for damage to vehicles due to pot holes on our public roads are being declined by a company (details supplied) without any recourse to appeal by the vehicle owner and the dismissive attitude of the company; and if he will make a statement on the matter. [13651/24]
View answerAs Minister for Finance, I am responsible for the development of the legal and policy framework governing financial regulation. As the Deputy will appreciate, I am unable to comment on individual cases, nor can I intervene in disputes that individuals may have with an insurance provider, including in the one specified.
In situations where a person is not satisfied with the service of an insurance provider, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Central Bank of Ireland’s Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO).
The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. Investigations by the FSPO are free of charge to the complainant.
Finally, it may interest the Deputy to know that Insurance Ireland, the representative body for insurance providers in this country, operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed at: feedback@insuranceireland.eu.
275. Deputy Michael Healy-Rae asked the Minister for Finance the real efforts that are being made to curtail the awful practice of smuggling drugs into Ireland (details supplied); and if he will make a statement on the matter. [13671/24]
View answerI am advised that Revenue has primary responsibility for the prevention, detection, interception and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State.
Revenue’s drugs interdiction strategy supports the Government’s strategic approach to the misuse of drugs under the National Drugs Strategy 2017-2025. The Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities right across the country, and every effort is made to combat not just the importation of illicit drugs but also firearms, ammunition and cash that inevitably accompany this very serious organised criminal activity.
As part of its risk focused approach to the discharge of its role in relation to illegal drug importations, Revenue monitors and evaluates ports, harbours and inlets along the coastline on an ongoing basis to identify the risk potential for drug smuggling. This work is supplemented by Revenue’s Customs Drug Watch Programme aimed at encouraging members of the public, along with coastal and local maritime communities to notify Revenue of suspect or unusual activity at sea or around the coastline by way of a confidential 24/7 free phone facility - 1800 295 295.
I am advised that Revenue uses the latest detection methods at the national points of entry into the State, with the deployment of resources such as scanners, drug detector dogs and 24/7 staff, where required. Alongside the detection equipment and technologies deployed at the main points of entry, Revenue also deploys two Revenue Customs Cutters to patrol the coastline, undertake vessel controls and support maritime surveillance and intelligence gathering duties in relation to drugs. These vessels work closely with teams of land-based enforcement officers involved in anti-smuggling duties deployed to cover potential high-risk areas along the coastline.
Given the global nature of the illicit drugs trade, international law enforcement cooperation remains a key element in Revenue’s overall response. Revenue has strong and strategic partnerships in place at international level targeting drugs trafficking, including working closely with relevant law enforcement agencies such as Europol and the Maritime Analysis Operations Centre for Narcotics (MAOC-N). Revenue liaison officers are stationed in both Europol and MAOC-N, ensuring Revenue is at the forefront in the area of drugs enforcement at an international level. These officers work closely with international colleagues in identifying the transnational risks associated with drug smuggling into the State.
Furthermore Revenue is an active participant, along with its national and EU partners, in initiatives under the umbrella of the EU Roadmap to Tackle Drugs and Organised Crime. These initiatives, including the European Ports Alliance, provide for EU-wide collaboration and information sharing on best practices to increase security and resilience in tackling the threat posed by drug trafficking and organised crime.
At a national level, the Joint Task Force, which is an interagency collaboration consisting of Revenue, the Garda National Drugs and Organised Crime Bureau and the Naval Service, was put in place specifically to target illicit drug importations by sea into Ireland and uses the full capability and resources of each agency as required at an operational level.
The Joint Task Force operates successfully under agreed protocols when activated for a specific targeted operation. During 2023, it was initiated on three occasions to act on specific targeted intelligence regarding suspected drug importations by sea. One of these operations resulted in the seizure of 2,253kgs of cocaine, with an estimated value of €157 million, and the arrest of 8 crew members from two maritime vessels in Cork in September 2023. This was the largest seizure of cocaine in the history of the State.
I am assured that combatting the smuggling of controlled drugs into and out of this jurisdiction is, and will continue to be, a priority for Revenue.
276. Deputy Pearse Doherty asked the Minister for Finance following the Trilogue agreement on EU level anti-money laundering legislation, whether he will amend S.I. No. 308 of 2023 to allow greater access for civil society and others to the register of beneficial ownership; and if he will make a statement on the matter. [13681/24]
View answer310. Deputy Catherine Murphy asked the Minister for Finance further to Parliamentary Question No. 82 of 1 February 2024, if he will provide an update in respect of the commitment made by him in his initial response (details supplied). [15011/24]
View answerI propose to take Questions Nos. 276 and 310 together.
In November 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 complied with the Court’s ruling, and following consultation with the Office of the Attorney General, a Statutory Instrument was prepared to amend Regulations which govern two of Ireland’s registers of beneficial ownership information - the Register of Beneficial Ownership of Companies and Industrial & Provident Societies (RBO), which operates under the auspices of the Companies Registration Office, and 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.
As the Deputy is aware, I have asked my officials to examine this issue further and to assess whether it is possible, currently, to allow for greater access to the registers of beneficial ownership within the parameters of EU law and in a manner consistent with the ECJ judgement. In that regard, my officials are examining potential legislative amendments to achieve greater transparency taking into consideration the current EU AML law (as interpreted by the ECJ judgement) and to pre-empt the requirements for this area under the New AML Rule Book which is expected to be agreed this month. As is the usual practice, Ireland will have a set period to transpose the new EU AML Directive and aspects of the Regulation – within two and three years respectively.
277. Deputy Pearse Doherty asked the Minister for Finance the revenue generated by restricting the remittance basis of taxation with respect to non-domiciled individuals to a lifetime limit of two, three and five years respectively; and if he will make a statement on the matter. [13708/24]
View answerAn individual who is resident or ordinarily resident, but not domiciled in the State, is taxable on the remittance basis of tax in respect of foreign income and gains. Such individuals pay tax on:
(1) Income and gains arising in Ireland,
(2) Foreign income which they “remit” or bring into the State, and
(3) Foreign gains which they remit into the State where the gain accrues from the disposal of assets situated outside the State.
It should be noted that the benefit of the remittance basis only arises where such an individual has foreign income or gains for the year. An individual who is taxable on the remittance basis in respect of foreign income or gains is required, under self-assessment provisions, to report the amount of the foreign income or gains which are remitted to the State in a tax return for the year in which the remittance occurs.
I am informed by the Revenue Commissioners that an individual who is not domiciled in the State must state so when completing an Irish tax return, however, such individuals are not required to report whether they have availed of the remittance basis of foreign income and gains when completing a return. On this basis, it is not possible to provide an estimate of the revenue which would be generated by restricting the remittance basis of tax to a lifetime limit of two, three and five years respectively, as appropriate statistics are not available to confirm the numbers of taxpayers who avail of the remittance basis of tax in cases where they are in receipt of foreign income and gains.
278. Deputy Pearse Doherty asked the Minister for Finance the number of non-domiciled individuals taxed on a remittance basis in each of the years 2020, 2021, 2022 and 2023. [13710/24]
View answerAn individual who is resident or ordinarily resident, but not domiciled in the State, is taxable on the remittance basis of tax in respect of foreign income and gains. Such individuals pay tax on:
(1) Income and gains arising in Ireland,
(2) Foreign income which they “remit” or bring into the State, and
(3) Foreign gains which they remit into the State where the gain accrues from the disposal of assets situated outside the State.
It should be noted that the benefit of the remittance basis only arises where such an individual has foreign income or gains for the year. An individual who is taxable on the remittance basis in respect of foreign income or gains is required, under self-assessment provisions, to report the amount of the foreign income or gains which are remitted to the State in a tax return for the year in which the remittance occurs.
I am informed by the Revenue Commissioners that an individual who is not domiciled in the State must state so when completing an Irish tax return, however, such individuals are not required to report whether they have availed of the remittance basis of foreign income and gains when completing a return. On this basis, it is not possible to confirm the number of non-domiciled individuals who availed on the remittance basis for these years, as appropriate statistics are not available.
279. Deputy Pearse Doherty asked the Minister for Finance to clarify eligibility for the mortgage interest tax credit with respect to cross-Border workers in particular in situations (details supplied); if such individuals may qualify for the mortgage interest tax credit; if not, if he agrees that this reflects an inherent inequity in the operation of the tax credit; and the measures he will consider to rectify it; and if he will make a statement on the matter. [13731/24]
View answerMortgage 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.
It 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 relief 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 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. The relief operates by way of a credit offset against taxpayer’s income tax liability for 2023.
In relation to the particular situation outlined by the Deputy, Revenue have advised me that it is assumed that the person in question qualifies for Transborder Workers Relief (TBWR), as provided for under section 825A of the Taxes Consolidation Act 1997. TBWR effectively removes the earnings from a qualifying employment from liability to Irish tax where foreign tax has been paid on same (and that tax is not refundable). This relief is generally claimed where the foreign income tax rate is lower than the Irish income tax rate. Where an individual chooses to claim TBWR and has no other source of income, he or she will have no further Irish income tax liability. However, where an individual chooses not to claim TBWR, he or she may benefit from claiming the Mortgage Interest Tax Credit, depending on his or her circumstances.
In summary, a claimant must have an Irish income tax liability to benefit from the credit. If a claimant has no tax liability (for whatever reason), he or she will not benefit from the credit. If the credit due exceeds the claimant’s income tax liability, the credit will apply to the extent that it reduces the claimant’s income tax liability for 2023 to nil.
Further detailed guidance regarding the Mortgage Interest Tax Credit is included 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
Further detailed guidance on the TBWR is available in Revenue’s Tax and Duty Manual Part 34-00-06 available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-34/34-00-06.pdf
280. Deputy Francis Noel Duffy asked the Minister for Finance his views on the assertion that the new BIK thresholds and rules encourages drivers who are in possession of company cars to do additional unwanted mileage to ensure they receive maximum benefit under the new scheme; if this will be reviewed in light of the environmental impact of the change; and if he will make a statement on the matter. [13749/24]
View answerThe Government remains committed to the environmental rationale behind the current emissions-based vehicle benefit-in-kind (BIK) regime, which has been in operation since 1 January 2023. Since this date, the amount taxable as BIK continues to be determined by the car’s Original Market Value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands were also reduced from five to four.
Battery Electric vehicles (BEVs) benefit from a preferential rate of BIK, ranging from 9-22.5% depending on mileage, while fossil-fuel vehicles are subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
I am aware that the mileage bands in the new BIK structure can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars that are more integral to the conduct of business receive preferential tax treatment.
In addition to the favourable treatment for low emission vehicles in the new BIK structure, Budget 2024 also extended the EV tapering mechanism applied to BIK relief for electric vehicles of €35,000 to end 2025, with reductions of €20,000 in 2026 and €10,000 in 2027. This measure forms part of a broader series of generous tax related measures for BEVs, including a reduced rate of 7% VRT, a VRT relief (to end 2025), low motor tax of €120 per annum, and 0% BIK on electric charging.
