Tuesday, 30 Apr 2024

Written Answers Nos. 232-249

Tax Rebates

Questions (232)

Michael Healy-Rae

Question:

232. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied); and if he will make a statement on the matter. [19008/24]

Written answers

Minister for Finance

I am advised by Revenue that the current timeline for processing claims in respect of refunds under the Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012, is running at just under 3-weeks. This timeline reflects a significant reduction in wait times which were running at 6-weeks in January, February and March of this year.

Claimants should ensure that all information required in support of the claim is submitted as part of the application. Where a claim is subject to review, caseworkers may return the claim for further information, which will delay the processing of the claim. Claimants are encouraged to provide supporting documentation, photos, detailed description of works carried out to the building or structure to facilitate installation of any equipment and any contracts associated with the work when submitting claims, to avoid further contacts and consequently delays in processing claims.

In addition, refunds may be held up where a claimant has returns outstanding, or payments may be offset against other outstanding tax liabilities.

Revenue has advised that claimants can request a status update on any claim by contacting Unregistered VAT Unit (Farmers and Tour Buses) via My Enquiries or by calling 01-7383667.

Tax Reliefs

Questions (233)

Richard Bruton

Question:

233. Deputy Richard Bruton asked the Minister for Finance if he will review the apparent obligation on a care centre to become a registered charity in order to get tax relief for the use of a wheelchair bus, used to transport persons who themselves have primary certificates establishing their severe disability; and if he will devise a simpler route of access to this tax relief. [19040/24]

Written answers

Minister for Finance

I am advised by Revenue that the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, S.I. No. 353 of 1994 (as amended) provides for the repayment or remission of VAT and Vehicle Registration Tax (VRT) on the purchase of an adapted vehicle for the transport of a person with specific severe and permanent physical disabilities.

An organisation can qualify for tax relief on vehicles approved under the scheme provided the organisation is a ‘qualifying organisation’. A qualifying organisation for the purposes of the scheme, means a charitable organisation within the meaning of the Charities Act 2009 (No.6 of 2009) that is entered in the register of charitable organisations pursuant to Part 3 of that Act, whose purpose is to provide services to persons with a disability and that, in furtherance of that purpose, is engaged in the care and transport of disabled persons.

I have no proposals to change this position.

Housing Schemes

Questions (234)

Mattie McGrath

Question:

234. Deputy Mattie McGrath asked the Minister for Finance if he plans to review the eligibility requirement for the help-to-buy scheme whereby the mortgage for the applicants must be 70% or more of the value of the self-build, but due to the increasing cost of building, the mortgage is no longer more than 70% of the total value and the applicants have to save a bigger deposit, and are therefore not eligible for the help-to-buy scheme. [19058/24]

Written answers

Minister for Finance

The Help to Buy (“HTB”) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (“DIRT”) paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act outlines the definitions and conditions that apply to the HTB scheme and provides that the amount of relief available shall be the lesser of:

• €30,000,

• 10 per cent of the purchase value of a new home/self-build property; or,

• the amount of Income Tax and DIRT paid in the four years before application for the relief.

One condition of the scheme is that a qualifying first-time purchaser or self-builder must take out a loan in an amount equal to at least 70% of the purchase value of the property.

The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizeable number of first-time buyers or builders take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70% so as to ensure that first-time buyers or builders did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.

Individuals who are in the position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase dead-weight in the scheme.

In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro-prudential rules. These rules stipulate the valuation should include the site value. According to Revenue statistics, from the inception of the scheme to end-March 2024 self-builds have represented 25.05% of approved claims. The nature of self-builds is such that an applicant may already own the land on which the house is built which means that they may only need to borrow only in relation to construction costs.

It would not be equitable to allow for different eligibility criteria with regard to LTV ratios in respect of self-build properties vis-á-vis that which applies to all other new build homes; the policy position remains that purchasers taking out a mortgage of less than a 70% LTV will not be able to qualify under the HTB incentive.

Question No. 235 answered with Question No. 227.

Tax Rebates

Questions (236, 246)

John McGuinness

Question:

236. Deputy John McGuinness asked the Minister for Finance if he will consider amending S.I. No. 266/2012 relative to the refund of VAT for touring coaches, that is, the VAT 71 refund scheme, to include bus types that are electric and low-carbon vehicles; and if he will make a statement on the matter. [19068/24]

Noel Grealish

Question:

246. Deputy Noel Grealish asked the Minister for Finance if he will further amend the statutory instrument which sets out the qualifying parameters for the VAT 71 refund scheme to extend qualification to low-floor EV buses, to support the objectives of accessibility and decarbonisation; and if he will make a statement on the matter. [19382/24]

Written answers

Minister for Finance

I propose to take Questions Nos. 236 and 246 together.

The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in respect of which Member States may apply reduced rates of VAT.

The Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of the VAT exemption to the transport of passengers and their accompanying baggage. This means that under Ireland’s VAT rules, the supplier of passenger transport services does not register for VAT, does not charge VAT on the supply of their services and, consequently, has no VAT recovery entitlement on their input costs. In accordance with the EU rules, Ireland may continue to apply this existing, historic VAT exemption on the supply of domestic passenger transport but, for as long as the exemption remains, the conditions under which the exemption was granted cannot be changed. In fact, the introduction of a new entitlement to VAT recovery for the passenger transport sector could only be done if Ireland were to decide to end its historic exemption for the sector and bring passenger transport services into the VAT net; this would then require suppliers to register for VAT and charge VAT on their passenger fares.

Ireland has also maintained a relieving provision, the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012, which provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport. The order defines qualifying vehicles by reference to their use and physical dimensions as follows:

(a) a single-deck touring coach having dimensions as designated by the manufacturer of not less than 2,700 millimetres in height, not less than 8,000 millimetres in length, not less than 775 millimetres in floor height and with an underfloor luggage capacity of not less than 3 cubic metres, or

(b) a double-deck touring coach having dimensions as designated by the manufacturer of not more than 4,300 millimetres in height and not less than 10,000 millimetres in length.

The order places no restriction on the fuel source of a qualifying vehicle and therefore electric and alternatively powered vehicles that conform to the physical dimensions and designated usage requirements of the order are already eligible under the Refund Order. However, it is not possible under EU law to extend the scope of the Order to other types of vehicles while maintaining VAT exemption for passenger transport. This would be contrary to the EU VAT Directive.

Dimensions

The dimensions for single-deck buses have changed incrementally over time since the order was first introduced (table below).

Table 1 – Dimensions for Qualifying vehicles (Tour Coaches)

Single-deck touring coach dimensions (not less than)

SI	Height	Length	Floor height	Underfloor luggage capacity
266/2012	2,700mm	8,000mm	775mm	3 cubic meters
573/2004*			775mm	3 cubic meter
305/1999*	2,700mm	8,000mm	950mm	No change
98/1996	3,000mm	8,000mm	1,000mm	3 cubic meter
165/1994	3,350mm	10,000mm	1,400mm	Not a requirement
134/1993	3,350mm	10,000mm	1,400mm	Not a requirement
262/1988	3,350mm	10,000mm	1,400mm	Not a requirement
68/1986	3,500mm	10,000mm	1,500mm	Not a requirement

* Refund order amendment

Motor Industry

Questions (237)

John McGuinness

Question:

237. Deputy John McGuinness asked the Minister for Finance if he will expedite approval for the importing of a 2018 car by a family returning to work in Ireland (details supplied) having lived in England for the past 12 years and who are now experiencing bureaucratic challenges. [19093/24]

Written answers

Minister for Finance

I am advised by Revenue that each application for the exemption or relief from Vehicle Registration Tax (VRT) under the Vehicle Registration Tax (Permanent Reliefs) Regulations 1993 is considered on a case-by-case basis. Revenue has confirmed that a Transfer of Residence (TOR) exemption application was submitted by the persons concerned on 9 March 2024 with further supporting documentation submitted between the 11 March and 24 April. Revenue has further advised, following a review of the supporting documentation, that the exemption was granted on 25 April 2024, with notification issuing to the person concerned on the same day. Further guidance in relation to both VRT exemptions and reliefs, including the exemption from VRT on the basis of a ‘Transfer of Residence’ (TOR), and the VRT appeals procedure can be found on the Revenue website at www.revenue.ie/en/vrt/index.aspx.

Tax Exemptions

Questions (238)

Matt Carthy

Question:

238. Deputy Matt Carthy asked the Minister for Finance if he will exempt capital works at grassroots sports facilities from VAT or introduce a rebate scheme in order to ensure that clubs get the maximum benefit from sports capital grants and other funding sources; and if he will make a statement on the matter. [19120/24]

Written answers

Minister for Finance

As the Deputy will be aware, the VAT treatment of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the EU VAT Directive it is not possible for Ireland to exempt capital works at grassroots sports facilities from VAT or introduce a VAT refund scheme for sports facilities.

European Union

Questions (239)

John Paul Phelan

Question:

239. Deputy John Paul Phelan asked the Minister for Finance to list all Acts and statutory instruments sponsored by his Department that became law from 20 February 2020 to date in 2024 and which were necessitated, either in whole or in part, to transpose or give effect to regulations, directives or other measures passed at European Union level. [19165/24]

Written answers

Minister for Finance

A very significant number of Acts and Statutory Instruments made or sponsored by the Minister for Finance are necessitated in whole or in part by the requirements of European law. It has not been possible, in the time available, to compile the information requested by the Deputy. My officials will compile the information sought and I will write to the Deputy shortly to provide the information compiled.

Tax Code

Questions (240)

Mick Barry

Question:

240. Deputy Mick Barry asked the Minister for Finance if he will review the anomalies in the VAT treatment between different mental health professions, namely psychologists, counsellors and psychotherapists and examine a coherent and consistent approach; and if he will make a statement on the matter. [19296/24]

Written answers

Minister for Finance

As the Deputy will be aware, the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

Psychologists are listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

On 27 February 2019, the then Minister for Health, Simon Harris TD, confirmed the establishment of and appointment of members to the Counsellors and Psychotherapists Registration Board, under the Health and Social Care Professionals Act 2005 (amended) to regulate the professions of Counsellors and Psychotherapists. The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019.

Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health.

I understand that officials in my Department have engaged with their counterparts in the Department of Health in relation to this matter and have advised them that the VAT exemption in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board.

Rental Sector

Questions (241)

Jim O'Callaghan

Question:

241. Deputy Jim O'Callaghan asked the Minister for Finance the total number of rent tax credit claims made in each of the years 2022, 2023 and 2024, by county, in tabular form; and if he will make a statement on the matter. [19338/24]

Written answers

Minister for Finance

The Rent Tax Credit (RTC), 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 RTC statistics currently available refer only to claims by PAYE taxpayers. Data on claims by self-assessed taxpayers are not yet available. These data will be available, in respect of the 2022 year of assessment, later in Q2 2024 when the self-assessed tax returns for that year, filed in late 2023, are fully analysed.

Rent Tax Credit claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.

The below table outlines the number of claims by year of assessment and by county for 2022, 2023 and 2024 as at 22 April 2024.

County	2022 Year of Assessment	2023 Year of Assessment	2024 Year of Assessment
Carlow	2,505	2,173	386
Cavan	2,288	2,173	377
Clare	3,455	3,101	635
Cork	30,741	26,457	5,419
Donegal	3,433	3,039	621
Dublin	127,823	116,084	24,481
Galway	19,352	15,848	3,466
Kerry	4,232	3,702	628
Kildare	9,805	8,834	1,808
Kilkenny	2,918	2,685	531
Laois	2,164	1,877	418
Leitrim	872	738	159
Limerick	13,243	10,849	2,194
Longford	1,609	1,466	251
Louth	3,784	3,525	720
Mayo	3,962	3,548	737
Meath	5,220	5,020	920
Monaghan	1,972	1,830	334
Offaly	2,287	2,087	413
Roscommon	1,762	1,633	334
Sligo	3,149	2,580	521
Tipperary	4,858	4,380	795
Waterford	5,272	4,637	950
Westmeath	3,968	3,574	736
Wexford	4,331	3,818	751
Wicklow	3,344	3,088	654
Not Currently Available	3,910	2,673	495
Total	272,259	241,419	49,734

Housing Schemes

Questions (242)

Seán Sherlock

Question:

242. Deputy Sean Sherlock asked the Minister for Finance if there is an appeal on the valuation of the home under the help-to-buy-scheme; if he will consider a case (details supplied); and if he will make a statement on the matter. [19346/24]

Written answers

Minister for Finance

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C (11) of the Taxes Consolidation Act 1997 provides that, for a valid claim to be made, the ‘loan-to-value’ (LTV) ratio in respect of a claim cannot be less than 70%. The LTV is defined as the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence.

The Finance Act states that an “approved valuation”, for the purposes of a self-build qualifying residence, means the valuation of the residence, as approved by the qualifying lender, at the time the qualifying loan is entered into.

While the HTB scheme’s LTV ratio criteria was originally a minimum LTV of 80%, following a review, based on Central Bank data which indicated that a large number of first-time buyers take out a mortgage with a LTV of less than 80%, the ratio was reduced to a minimum of 70% to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.

Further information to the HTB Scheme can be found on Revenue’s website at:

www.revenue.ie/en/property/help-to-buy-incentive/index.aspx

I am advised by Revenue that there are no cases currently under appeal regarding the valuation of the home under the Help to Buy scheme, however, should the individuals concerned wish to appeal Revenue’s decision, they can lodge that appeal with the Tax Appeals Commission (TAC). Further information on lodging Tax Appeals can be found on the TAC website at: www.taxappeals.ie

Tax Data

Questions (243)

Catherine Murphy

Question:

243. Deputy Catherine Murphy asked the Minister for Finance the number and value of claims made under the charities VAT compensation scheme in each of the years 2019, 2020, 2021, 2022, and 2023, in tabular form; and if he will make a statement on the matter. [19350/24]

Written answers

Minister for Finance

The Charities VAT Compensation Scheme, administered by Revenue, was introduced in Budget 2018 to reduce the tax burden on charities and to partially compensate them for the VAT paid in delivering on their charitable purposes. Under the scheme, eligible charities may claim a refund of a proportion of their VAT costs based on their level of non-public funding. Where the total amount of eligible claims in a year exceeds the capped amount, claims are paid on a pro-rata basis. The annual fund available for payment under the scheme was initially capped at €5m and was increased to €10m in Budget 2024The number and value of claims made under the scheme, as requested by the Deputy, is set out in the table below. Further information on the Scheme is available on Revenue’s website at: www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/vat-compensation-scheme/vat-compensation-scheme-for-charities/index.aspx

YEAR	2019	2020	2021	2022	2023
NO OF CLAIMS	1,143	910	726	686	654
VALUE OF CLAIMS	€37,446,576	€39,651,891	€31,625,193	€31,976,407	€36,371,924

Philanthropy Initiatives

Questions (244)

Catherine Murphy

Question:

244. Deputy Catherine Murphy asked the Minister for Finance the cost of supporting philanthropic giving under the new philanthropy strategy through the implementation of a direct tax incentive for major gifts of a minimum of €5,000 and maximum of €5 million; and if he will make a statement on the matter. [19351/24]

Written answers

Minister for Finance

There is insufficient detail in the Deputy’s question upon which to base a costing for a new measure as suggested, as such it is not possible to answer the question. However, and as the Deputy may be aware, the Charitable Donation Scheme allows tax relief in Income Tax and Corporation Tax on qualifying donations made to approved bodies. Section 848A of the Taxes Consolidation Act, 1997 provides that where an individual makes a charitable donation, the approved charitable body receiving it can claim a refund of Income Tax paid on that donation at a blended 'grossed-up' rate of 31%. In the case of a corporate donor, the relief is in the form of a deduction against Corporation Tax.

The requirements of the scheme include:

• A minimum donation of €250 per annum must be made;

• The donor or anyone connected with the donor cannot get a benefit of any kind resulting from the donation; and

• The maximum amount of eligible donations from a single taxpayer in a year is €1 million.

In 2021, the latest year for which data are available, the Exchequer cost of this measure was of the order of €47.8 million.

More information on the Charitable Donations Scheme can be found on Revenue's website at www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/charitable-donation-scheme/index.aspx

The Minister for Rural and Community Development has primary responsibility of the implementation of the National Philanthropy policy. My Department will engage with that Department as relevant and as required. However, insofar as the incentivisation of donating to charities might relate to changes to taxation measures such as the Charitable Donation Scheme, or indeed new measures, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions. I would add that any such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.

Local Authorities

Questions (245)

Catherine Murphy

Question:

245. Deputy Catherine Murphy asked the Minister for Finance if he will provide the amount of grant-aid returned and or surrendered to his Department, by local authority in 2022, 2023 and to date in 2024, to include the heading of which it was intended for. [19360/24]

Written answers

Minister for Finance

My Department does not provide grant-aid to local authorities and therefore had no grant-aid returned or surrendered by local authorities in the year 2022,2023 and to date 2024.

Question No. 246 answered with Question No. 236.

Pension Provisions

Questions (247)

Seán Haughey

Question:

247. Deputy Seán Haughey asked the Minister for Finance if he will allow householders to withdraw money from their personal pension funds in order to carry out retrofitting and insulation works to their homes without having to incur a tax obligation; if he will consult with the Minister for the Environment, Climate and Communications on this proposal; and if he will make a statement on the matter. [19408/24]

Written answers

Minister for Finance

Overall, the policy objective for tax relief on pension contributions is to encourage individuals to save for retirement; to help meet a targeted level of supplementary pension coverage and income replacement; and to assist in preventing an over-reliance on State support for citizens in later life. Accordingly, pensions already have their own special treatment within the tax system to encourage these preparations - an Exempt, Exempt, Tax (EET) system. Contributions to pensions (within certain limits) are exempted from income tax, pension fund gains are exempted from income tax, and income from pension drawdown is taxed other than a tax free lump sum. This can be seen as a form of tax deferral which is intended to encourage individuals to save appropriately for retirement.

The Deputy is asking whether early drawdown of pension funds is allowed in certain circumstances, in order to carry out retrofitting and insulation works to their homes. There are a number of reasons why pre-retirement access to pension savings is not permitted on a general basis. Any early drawdowns from a pension fund, for any purpose, would reduce the pension savings from which individuals could provide for their retirement, with smaller pension schemes losing a larger proportion of their overall savings. In addition, it should be noted that pensions are taxed on drawdown with the exception of a tax free lump sum, and withdrawing money without incurring a tax liability would in fact not align with the EET approach.

As introduction of a scheme to allow early access to funds would not be in alignment with the goal of supporting savings for retirement and could undermine the integrity of the EET regime. Therefore, I do not currently have any plans to allow pension savers to access their funds tax free before retirement. However, as with all taxation, the rules regarding pensions are kept under ongoing review and I am of course open to engaging with my Ministerial colleagues on any proposals they may have in the context of the annual budgetary cycle, taking into account the Guidelines for Tax Expenditures prepared by my Department.

I would finally note that there are already a number of Government programmes in place to support retrofitting including schemes such as the National Home Energy Upgrade Scheme, the Better Energy Homes Grants as well as the Home Energy Upgrade Loan Scheme.

Fuel Prices

Questions (248)

Cian O'Callaghan

Question:

248. Deputy Cian O'Callaghan asked the Minister for Finance if he is aware that people and families, and notably older people, are struggling due to the increased costs of home heating oil; if he will introduce measures to assist people with these rising costs; and if he will make a statement on the matter. [19484/24]

Written answers

Minister for Finance

At the outset, the Deputy should note that both I and the Government are conscious of the implications of fuel costs for all sectors of society.

This is reflected in the fact that 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.

In addition to rate increases related to reversing the 2022 Mineral Oil Tax cuts, increases to the carbon component rates of Mineral Oil Tax on kerosene, marked gas oil, and LPG are legislated to come into effect on 1 May 2024 when the amount charged per tonne of carbon dioxide emissions from non-auto fuels increases from €48.50 to €56.00. These rate increases which impact home heating oil are delayed until 1st May each year, until after the winter heating season.

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.

A number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. While taxation affects the final retail price, amendments to tax rates cannot fully absorb price shocks given the larger impacts of energy markets, embedded costs as well as pricing policy at wholesale and retail level. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained. The Deputy should note that I will continue to monitor and review the position in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024.

The carbon tax forms an integral part of the Governments response to the need to address climate change and forms part of the Programme for Government commitment to increase Carbon Tax over a 10-year trajectory with a view to reaching €100 per tonne of CO2 by 2030. A significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long term, provide support against fuel price impacts by reducing our reliance on fossil fuels. Analysis undertaken using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package has confirmed that the net impact of the combined measures is progressive. Households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures

The Deputy will be aware that the Department of Social Protection provides a number of supports towards the cost of heating a home to those who qualify.

These supports include the Fuel Allowance payment which is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €384 million in 2024.

The Department of Social Protection also pays an electricity or gas allowance under the household benefits scheme. The Household Benefits package (HHB) is separate from the Fuel Allowance Scheme and a further €224 million will be spent on the scheme in 2024. The gas and electricity element is paid at a rate of €35 per month, 12 months of the year.

Furthermore, Additional Needs Payments may also be made to help meet an essential expense that a person cannot pay from their weekly income. Additional Needs Payment are available to anyone who needs it and qualifies, whether the person is currently receiving a social welfare payment or working on a low income.

Payments are made at the discretion of the officers administering the scheme, taking into account the requirements of the legislation, and all the relevant circumstances of the case in order to ensure that the payments target those most in need of assistance.

Any person who considers they may have an entitlement to an Additional Needs Payment is encouraged to contact their local community welfare service. There is a National Community Welfare Contact Centre in place - 0818-607080 - which will direct callers to the appropriate office. In addition, applications can be made online via www.mywelfare.ie.

EU Directives

Questions (249)

Ged Nash

Question:

249. Deputy Ged Nash asked the Minister for Finance the background to and current situation with regard to the European Commission’s announcement of 24 April 2024 that it was sending Ireland a letter of formal notice (INFR(2024)2037) for the incorrect transposition of Directive (EU) 2018/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (the 5th anti-money laundering directive); and if he will make a statement on the matter. [19497/24]

Written answers

Minister for Finance

On 24 April, the European Commission issued a letter of formal notice, citing what it considers incorrect transposition of the Fifth AML Directive by Ireland. This was one of the three notices issued on that date to Ireland on transposition matters across different Government Departments. On the Fifth AML Directive, the Commission contend that there was an incorrect transposition of the requirements for Ireland’s Central Register for the Beneficial Ownership of Trusts (CRBOT), which is operated by the Revenue Commissioners. The issues cited by the Commission relate to the mechanisms for accessing the information and for ensuring that the information filed is both accurate and complete.

The Central Register of Beneficial Ownership of Trusts (CRBOT) was established to help prevent money laundering and terrorist financing by improving transparency on who ultimately owns and controls Irish Trusts. Anti-Money Laundering (“AML”) legislation requires each EU Member State to establish such a Register. Revenue welcomes the acknowledgement by the Commission that this Register is operational and also appreciates their understanding that Trusts differ from legal entities in terms of the breadth of their structures and the fact that they do not all have filing obligations allowing easy identification as would be the case, for instance, in relation to companies covered by the Companies Registration Office.

The Department of Finance is already engaging on an ongoing basis with Revenue on a number of legislative changes to augment the powers of the Registrar to help improve compliance with the relevant obligations. In addition, Revenue undertakes compliance activity to increase registration levels. For example, in 2022/23, a campaign focused on Special Purpose Vehicles took place to increase registration in this sector. The total registration numbers have nearly doubled from the figure of 6,354 referenced in the Commission’s letter to 11,536 as of 31 March 2024. There are continued outreach and compliance activities to increase the numbers registered on the CRBOT in high-risk sectors.

Apart from officials of Competent Authorities and law enforcement Agencies, access to the Trusts Register was designed to facilitate ‘designated persons’ (i.e. designated financial and non-financial businesses and professions having anti-money laundering obligations) in carrying-out due diligence as part of their AML obligations. The system operates by providing access to the CRBOT Trusts Register through a token system. This minimises data protection risks, while enabling access to persons who need to have access under AML requirements. The data protection risks are significant given the prevalent use of Trusts in Ireland, often for low-risk activities, and the sensitivity of the data held. Access to the Register remains free to minimise the compliance costs on designated persons in carrying out their AML due diligence.

Ireland recognises the importance of an EU-wide harmonised approach in the fight against Money-Laundering and the Financing of Terrorism. Ireland continues to closely work with the Commission and our EU colleagues in this regard. The Department of Finance is actively engaging with Ireland’s Beneficial Ownership Registers, including working closely with the Revenue Commissioners and the Central Register for the Beneficial Ownership of Trusts, in supporting the strengthening of its powers through legislative changes to help the Register fulfil its mandate in line with EU law. Ireland is committed to fulfilling its EU AML requirements whilst protecting data as required under GDPR.