Written Answers Nos. 317-335
317. Deputy Brendan Smith asked the Minister for Finance if a register of all pension schemes approved by the Revenue Commissioners exists; and if so, the statutory agency with which such a register is held; if the relevant legislation covering this can be referred to; the Department that is currently responsible for same; and if the register is available to the public and the information headings under which data is published for each scheme. [38664/12]
Amharc ar fhreagraI assume that the Deputy’s reference to pension schemes relates to occupational pension schemes established by employers on behalf of their employees. I am informed by the Revenue Commissioners that they maintain a database of all employers who have occupational pension schemes approved by them. The statutory requirements relating to applications for approval of such schemes are contained in Part 30, Chapter 1 and Schedule 23 of the Taxes Consolidation Act, 1997.
An application for the approval of any retirement benefits scheme must be made in writing by the administrator of the scheme to the Revenue Commissioners (in such form and manner as they may specify) before the end of the first year of assessment for which approval is required, and must be supported by-
(a) a copy of the instrument or other document constituting the scheme,
(b) a copy of the rules of the scheme and, except where the application is being made on the setting up of the scheme, a copy of the accounts of the scheme for the last year for which such accounts have been made up, and
(c) such other information and particulars (including copies of any actuarial report or advice given to the administrator or employer in connection with the setting up of the scheme) as the Revenue Commissioners may consider relevant.
Details of the Revenue Commissioners database of approved employer pension schemes are not publicly available due to Revenue’s obligations to taxpayer confidentiality.
I am also informed that the Pensions Board maintains a register of occupational pension schemes, all of which are approved by the Revenue Commissioners. The trustees of such schemes must (in accordance with Section 60 of the Pensions Act, 1990) register with the Pensions Board within one year of their commencement date. This register is not available to the public. The annual report published by the Pensions Board details the total number of registrations within that year along with the accumulated number of schemes and active members since inception. This information includes both defined benefit (subject to funding standard), defined benefit (not subject to the funding standard) and defined contribution schemes and indicates the range of active scheme membership.
318. Deputy Kevin Humphreys asked the Minister for Finance when the Report from the Office of the Revenue Commissioners showing the effect of the High Earners Restriction for 2011 will be published; the changes that have occurred, if any, to the restriction between 2010 and 2011; the changes, if any, that were introduced in the most recent Finance Bill; if he will provide this Deputy with a copy of the Report; and if he will make a statement on the matter. [38718/12]
Amharc ar fhreagraIt is anticipated that the report for 2011 on the high income individuals’ restriction will be published around the middle of next year. Information relating to individuals who were subject to the restriction in 2011 will only start to be submitted to the Revenue Commissioners in November 2012 when taxpayers file their tax returns for 2011. Following receipt of the 2011 tax returns, it will be necessary for the Revenue Commissioners to extract and analyse information relating to individuals who were subject to the restriction before they will be in a position to commence work on the compilation of the 2011 report. I expect to receive the 2011 report around the middle of 2013. The most recent report by the Revenue Commissioners analysing the high income individuals’ restriction is in respect of the 2010 tax year. This report, which was published by my Department on 1 August 2012 and is available on the Department’s Tax Policy website http://www.taxpolicy.gov.ie, reflects the changes made to the restriction in Finance Act 2010. Those changes extended the restriction to a greater number of individuals by reducing the income threshold at which the restriction applies from €250,000 to €125,000 and by reducing the relief threshold from €250,000 to €80,000. The objective of these changes was to achieve an average effective rate of income tax of 30 per cent where the restriction applies in full. This effective rate does not include amounts payable in respect of PRSI and other levies and charges i.e. the Income Levy and Health Levy which applied in the tax year 2010 and the Universal Social Charge which applies from the tax year 2011.
The 2010 report indicates that the number of individuals who were subject to the restriction in that year increased to 1,544, up from 452 in 2009. The additional tax payable by these individuals because of the restriction was €80.18 million, up from €38.86 million in 2009. This additional tax represents almost a doubling of the tax that would otherwise have been payable if the restriction had not applied.
No significant changes have been made to the restriction since 2010. However, in Finance Act 2011, the successor to the Business Expansion Scheme i.e. the Employment and Investment Incentive, was added to the list of reliefs covered by the restriction. Likewise, in Finance Act 2012, the new relief introduced under section 12 of that Act, in relation to income earned in certain foreign states, was also added to the list of restricted reliefs. Additionally, a technical amendment relating to the calculation of balancing charges was made by section 16 of the Finance Act 2012 to ensure that unused allowances coming forward from previous years are not treated as specified reliefs for the purposes of the restriction where they are netted-off against the gross amount of a balancing charge.
Apart from these direct changes to the legislation dealing with the high income individuals’ restriction, changes to individual reliefs that are subject to the restriction have also been made. For example, under section 17 of the Finance Act 2011, the amount of exempt income that an artist can have disregarded for tax purposes was capped at a maximum of €40,000 with effect from the tax year 2011. Finally, under section 3 of the Finance Act 2012, a surcharge of 5 per cent on income sheltered by property reliefs was introduced for taxpayers with an aggregate income of €100,000 or more.
319. Deputy Kevin Humphreys asked the Minister for Finance if he will outline each age exemption limit that exists within the income tax system and the estimated cost to the Exchequer of each of these exemptions in a full tax year; and if he will make a statement on the matter. [38720/12]
Amharc ar fhreagraThe position is that section 188 of the Taxes Consolidation Act 1997 provides for exemption limits for individuals aged 65 or over. For married individuals or civil partners, where either spouse or civil partner is aged 65 or over at any time during the tax year, the exemption limit is €36,000. In the case of single persons, widowed persons, and married persons or civil partners assessed as single persons, who at any time during the tax year are aged 65 or over, the exemption limit is €18,000. In addition, these exemption limits are increased by €575 in respect of each of the first 2 qualifying children and by €830 in respect of each subsequent qualifying child.
The section also provides for marginal relief where an individual’s total income exceeds the exemption limit applicable to that individual, but does not exceed a sum equal to twice that limit. Where marginal relief applies, the individual is taxed at 40% on all income above the exemption limits to a ceiling of twice the exemption limit. Once the income exceeds twice the exemption limit, marginal relief is no longer available and the individual pays tax under the normal tax system. It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is always given the benefit of the more favourable treatment between the use of marginal relief or the normal tax system. Exemption limits for persons aged less that 65 years ceased to apply with effect from 1 January 2008.
Deposit Interest Retention Tax (DIRT) is deducted at the source from interest paid on most deposits held by Financial Institutions such as Banks, Building Societies, the Post Office Savings Bank and Credit Unions. Where an individual, or an individual’s spouse or civil partner, is aged 65 or over during the tax year and, the indivdual’s income (or the joint income of the individual and his or her spouse or civil partner) is below the relevant annual exemption limit then he or she can apply directly to the financial institution concerned to have the interest paid without deduction of DIRT. Further information on all tax credits, reliefs and exemptions for over 65s is available from the Revenue website at: http://www.revenue.ie/en/tax/it/leaflets/it45.html#section1.
I am advised by the Revenue Commissioners that the full year cost of the age exemption limits and the associated marginal relief, estimated by reference 2012 incomes, is provisionally estimated at €87 million. This is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is therefore provisional and likely to be revised.
I am also advised by the Revenue Commissioners that sufficiently detailed figures are not captured on the statutory return of Deposit Interest Retention Tax (DIRT) filed by financial institutions in such a way as to provide a basis for compiling estimates of the impact on the Exchequer from the DIRT exemption.
321. Deputy Joanna Tuffy asked the Minister for Finance if he will re-examine an application for incapacitated child allowance in respect of a person (details supplied); and if he will make a statement on the matter. [38758/12]
Amharc ar fhreagraI am informed by the Revenue Commissioners that further to the Deputy’s question on 28 June 2012, they have re-examined the claim following receipt of additional information from the person in question. Revenue have determined that the applicant does not have an entitlement to the Incapacitated Child Credit as she does not meet the conditions in accordance with Section 465 of the Taxes Consolidation Act 1997. As advised in the reply to the question on 28 June 2012, the person in question may appeal the decision to the Appeal Commissioners. This is done by giving notice in writing setting out the basis on which the appeal is made to the person’s local Inspector of Taxes, within 30 days of the date of the determination by Revenue. The address for the local Inspector of Taxes is South County Revenue District, The Plaza Complex, Belgard Rd., Tallaght, Dublin 24.
322. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare has any outstanding tax liabilities for 2005; and if he will make a statement on the matter. [38766/12]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that based on the returns submitted, the person concerned does not have any outstanding income tax or capital gains tax liabilities for 2005.
323. Deputy Pearse Doherty asked the Minister for Finance the current rate of deposit interest retention tax; the way DIRT is applied; and the sum that could be raised for the Exchequer if DIRT was increased by five percentage points. [38777/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that since 1 January 2012 Deposit Interest Retention Tax (DIRT) is deducted at the rate of 30% from deposit interest. In addition a DIRT rate of 33% applies to interest that is not paid at annual or more frequent intervals or where the interest cannot be calculated until the maturity of the investment. This would include investments such as tracker bonds where the amount of interest payable depends on the changes in a financial or other index over a number of years. The rates of DIRT have been increased on a number of occasions in recent years as shown in the table.
Historic DIRT Rates
|
Period |
Standard Rate |
Non Standard Rate |
|
1 January 2011 to 31 December 2011 |
27% |
30% |
|
8 April 2009 to 31 December 2010 |
25% |
28% |
|
1 January 2009 to 7 April 2009 |
23% |
26% |
|
1 January 2002 to 31 December 2008 |
20% |
23% |
DIRT is a non-refundable final income tax applied to deposit interest. There are some cases where DIRT can be refunded or interest can be paid without deduction of DIRT, principally applying to deposit interest arising on accounts held by any of the following:
- an individual who (or whose spouse or civil partner) is aged 65 or over where their total income in a year (including the interest income) is below the annual exemption limit;
-an individual who (or whose spouse or civil partner) is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself and who is not liable to pay income tax because of the level of his or her income;
- individuals or companies who are not resident in Ireland, and
- companies (companies pay corporation tax at the rate of 25 per cent on any interest income earned).
The tax is deducted at source from any deposit interest paid or credited by a relevant deposit taker (e.g., a bank, building society, credit union, etc). The rate of DIRT applicable is the rate in operation on the date the interest is paid or credited to the account. It is estimated that the yield to the Exchequer from increasing the Deposit Interest Retention Tax (DIRT) rate by five percentage points would be around €95 million in a full year. This projection assumes no significant behavioral change by depositors or change in interest rates applied by financial institutions to savings.
324. Deputy Peter Mathews asked the Minister for Finance his views on whether the Central Bank of Ireland regulates all providers of pensions and financial services in accordance with the law; his views on whether the current laws are adequate to protect investors in pensions and financial services; and if he will make a statement on the matter. [38783/12]
Amharc ar fhreagraThe Central Bank is responsible for the regulation of regulated financial service providers. Pension schemes or products are not regulated by the Central Bank but are separately regulated by the Pensions Board under the aegis of the Minister for Social Protection. The Central Bank (Supervision and Enforcement) Bill 2011 is currently before the Oireachtas. The Bill strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions. It also provides the Central Bank with greater access to information and analysis and will underpin the credible enforcement of Irish financial services legislation in line with international best practice.
Section 37 of the Bill gives the Central Bank far-reaching powers of direction, which can be issued on grounds including where the regulated financial service provider is conducting business in such a manner as to jeopardise or prejudice monies held by or controlled by it on behalf of customers. Section 40(2)(l) of the Bill provides the Central Bank with the power to make regulations setting out the standards to be met, and the procedures, systems and checks to be adopted, by regulated financial service providers for dealing with and holding the assets and money of customers. This includes provisions on the safeguarding of customers’ rights, in particular in the event of insolvency; the use to which customers’ assets and money may be put; and the management of customer accounts.
Further changes to be proposed at Committee Stage of the Bill will provide further regulation-making powers to the Central Bank which are specifically targeted at enabling the Central Bank to support the protection of client assets. These powers will facilitate communication between the Central Bank and customers and clients of a regulated financial service provider, which has been identified by the Central Bank as an important tool for investigations on compliance with client assets requirements.
Section 45 of the Bill provides a means of restitution, via a Central Bank application to the High Court, where a person has been unjustly enriched or where others have suffered loss or other adverse effects arising from the commission of an offence or a prescribed contravention. This provision is to be further enhanced at Committee Stage with a proposal which will make it applicable to managers who commit offences or prescribed contraventions. Other proposed Committee Stage amendments will provide for customer redress and compensation mechanisms for consumers.
In relation to investment firms, the Markets in Financial Instruments (MiFID) Regulations provide specific investor protections by setting out rules governing the relationship between investment firms and their clients. Proposals for revised MiFID legislation, currently under negotiations in the Council of the EU and in the European Parliament, aim to strengthen the protection of investors further.
325. Deputy Pearse Doherty asked the Minister for Finance the amount that will be paid in debt related interest in 2013; and the amount of this interest that can be attributed to debt acquired by the State as a result of banking recapitalisation. [38789/12]
Amharc ar fhreagraState support for the banking sector to date has amounted to approximately €64.2 billion, which includes Exchequer payments of €12.6 billion, Promissory Note payments in respect of IBRC and EBS of €30.9 billion and €20.7 billion has been provided from the NPRF. The Deputy should be aware that the Exchequer is funded by tax and non-tax revenue and borrowings. No specific tranches of borrowing were undertaken solely for the purpose of recapitalising the banking sector. Therefore, it is not possible to accurately quantify that part of the debt servicing bill that relates to the borrowing undertaken to recapitalise the banks. With regard to the amount of debt related interest that will be paid in 2013, the Stability Programme Update published in April 2012 provides the most recent estimates for debt interest expenditure. It forecast that interest expenditure on the National Debt to be paid from the Exchequer in 2013 would be approximately €7 billion. Separately, Promissory Note payments from the Exchequer of €3.1 billion which is comprised of capital and interest payments are profiled in 2013.
326. Deputy Michael McGrath asked the Minister for Finance if he will confirm, following receipt by Revenue of correspondence from a person (details supplied) in County Cork, that they are now registered as a PAYE employee since January 2011 and that the MED1 claim by the person for 2011 will be considered accordingly. [38825/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the person from whom the correspondence was received was at one time registered as a company director, but is now registered as a PAYE employee with effect from January 2011. The medical expenses claim submitted by him (MED 1) has now been processed accordingly.
327. Deputy Dominic Hannigan asked the Minister for Finance if a person can claim health expenses against tax by claiming for small portions of the overall expenditure of the health expense over a period of years so as to maximise the tax benefit to the person; if there is any way of claiming against the universal social charge in a similar manner; and if he will make a statement on the matter. [38836/12]
Amharc ar fhreagraThe position is that Section 469 of the Taxes Consolidation Act 1997 provides for relief in respect of qualifying expenses incurred in the provision of health care in a tax year against the tax paid by an individual for that year. Where an individual defrays the cost of health care over two or more years the individual can elect either to have the relief for the expenses allowed in the year in which the payment for the expenses was made or the year in which the health care was provided.
Section 469 provides for the granting of relief in a tax year to the extent that the relief allowed reduces the individual’s tax liability for that year to nil. It is not possible to apportion the cost of health care incurred in one year of assessment over a number of subsequent years to maximize the relief available, other than in circumstances where the payment for that care is paid by installments over the later years.
Health expenses relief is only available for expenses that have been incurred by the individual which have not been reimbursed, directly or indirectly, from any other person or estate, any public authority or any contract of insurance or means of compensation. There is no relief against Universal Social Charge (USC) for health expenses incurred. Further details in relation to relief for health expenses is set out in leaflet IT6 which is available on the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it6.html.
328. Deputy Dominic Hannigan asked the Minister for Finance if he will outline, in tabular form, both the number and the percentage of women and men on State boards under the aegis of his Department in each of the past ten years; if he will provide the most up-to-date figures available regarding the number and percentage of women and men on State boards under the aegis of his Department in 2012; and if he will make a statement on the matter. [38857/12]
Amharc ar fhreagraThe information requested by the Deputy is as follows.
The Irish Fiscal Advisory Council
The Board has 5 members, one of whom is female. This equates to 80% male and 20% female. The Council was established in July 2011. For the avoidance of doubt, there have been no changes in the membership of the Council since its establishment.
Disabled Drivers Medical Board of Appeal
The following are the details regarding composition of the Disabled Drivers Medical Board of Appeal since 2002
2002 – 1 female 2 males = 33.33% female membership 67.67% male membership.
2003 - 1 female 2 males = 33.33% female membership 67.67% male membership.
2004 – 2 females 3 males = 40% female membership 60% male membership.
2005 – 5 females 10 males = 33.33% female membership 66.67% male membership.
2006 – 5 females 12 males = 29% female membership 71% male membership.
2007 – 7 females 8 males = 46.67% female membership 53.33% male membership.
2008 – 7 females 8 males = 46.67% female membership 53.33% male membership.
2009 - 7 females 8 males = 46.67% female membership 53.33% male membership.
2010 – 2 males 3 females = 40% male membership 60% female membership.
2011 – 2 males 3 females = 40% male membership 60% female membership.
2012 - 2 males 3 females = 40% male membership 60% female membership.
Credit Union Restructuring Board
The Credit Union Restructuring Board was established on 31st August 2012. This is the only State Board on the Credit Union side in the last 10 years. Details are set out below:
The Credit Union Restructuring Board
13 Members
2 Female members (15%)
11 Male members (85%)
Chair is Male
|
Name of Body |
- |
- |
Central Bank of Ireland |
- |
|
Year |
Number of Women |
Percentage |
Number of Men |
Percentage |
|
2003 |
1 |
7.69% |
12 |
92.31% |
|
2004 |
1 |
7.69% |
12 |
92.31% |
|
2005 |
1 |
7.69% |
12 |
92.31% |
|
2006 |
1 |
7.69% |
12 |
92.31% |
|
2007 |
1 |
7.69% |
12 |
92.31% |
|
2008 |
1 |
7.69% |
12 |
92.31% |
|
2009 |
1 |
8.33% |
11 |
91.67% |
|
2010* to 30/9/2010 |
1 |
8.33% |
11 |
91.67% |
|
2010* from 1/10/2010 |
1 |
11.11% |
8 |
88.89% |
|
2011 |
1 |
10.00% |
9 |
90.00% |
|
2012 |
1 |
11.11% |
8 |
88.89% |
*As at 31 December each year with the exception of 2010.
329. Deputy Paschal Donohoe asked the Minister for Finance his plans to introduce an essential user diesel rebate scheme; and if he will make a statement on the matter. [38870/12]
Amharc ar fhreagraAs the Deputy is aware a working group was set up between officials of my Department, the IRHA and members of the Oireachtas. This working group had a series of meetings to discuss issues of concern to the haulage industry. I have recently received a submission from the group and I am considering the matters raised.
332. Deputy Pearse Doherty asked the Minister for Finance if he has contacted the Revenue service regarding the implementation of a property tax. [38925/12]
Amharc ar fhreagra333. Deputy Pearse Doherty asked the Minister for Finance the steps the Revenue service are undertaking in preparation for the implementation of a property tax. [38927/12]
Amharc ar fhreagraI propose to take Questions Nos. 332 and 333 together.
The Government has decided that the Revenue Commissioners will be responsible for the collection of the Local Property Tax and that a Bill to introduce the tax would be published with the Budget. My officials have been in contact with the Revenue Commissioners in this regard and have participated in the Interdepartmental group which the Government agreed that Revenue should set up to plan the implementation of the tax.
I am advised by the Revenue Commissioners that they are actively planning for the implementation of the tax. This includes preparing a specification for the operation of the tax, assessing the impact on Revenue systems of its implementation, assessing the IT and other infrastructure requirements, identifying the work involved in establishing a property and property owners register, etc. Work is also underway to prepare the necessary legislation. Revenue is engaging with a wide range of Government Departments and agencies and other service providers in planning the implementation of the tax.
334. Deputy Pearse Doherty asked the Minister for Finance the amount spent on mortgage interest relief in 2011. [38928/12]
Amharc ar fhreagra335. Deputy Pearse Doherty asked the Minister for Finance the amount estimated to be spent on mortgage interest relief in 2012 and 2013 respectively. [38929/12]
Amharc ar fhreagraI propose to take Questions Nos. 334 and 335 together.
I am informed by the Revenue Commissioners that the cost to the Exchequer of mortgage interest relief for principal private residences by way of tax relief at source (TRS) in each of the years 2011 to 2012 inclusive is as follows:
|
Tax Year |
Cost €m |
|
2011 |
357.3 |
|
2012 (8 months) |
267.3* |
* This figure is provisional and subject to revision.
The cost to the Exchequer of tax relief allowed for mortgage interest in 2012 is provisionally estimated at €414 million. I am not in a position to provide a forecast of the cost of mortgage interest relief for 2013 at this stage.
