Written Answers Nos. 183-200
183. Deputy Andrew Doyle asked the Minister for Finance if the Revenue Commissioners will provide a certificate to persons wishing to sell their home to prove that the local property tax has been paid up to a particular date; and if he will make a statement on the matter. [37410/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the Local Property Tax (LPT) liability crystallises on the sale of a residential property and must be paid in full either in advance of the sale or must be deducted from the proceeds of the sale. This includes any LPT that has been deferred by the liable person. In addition, any outstanding LPT Returns must also be submitted to Revenue. The Revenue Commissioners also advise that they have provided comprehensive information in the “About LPT” section of their website, www.revenue.ie, as to how a liable person, or a person acting on their behalf, may obtain confirmation that there are no outstanding amounts of LPT for a residential property being sold. In addition, the Commissioners have developed guidelines, also published on their website, for both vendors and purchasers which set out in detail all of the potential implications for LPT arising from the sale of a residential property.
The vendor can access the LPT details for the property being sold online via the Revenue website, www.revenue.ie, using the relevant Property ID number, their PPS number and the PIN code that was issued to them when they filed the LPT Return. The relevant LPT details can be printed off and used to satisfy the purchaser that the property in question has no outstanding LPT issues.
Alternatively, the vendor, or a person acting on his or her behalf, can contact Revenue’s LPT Branch by telephone or in writing to request the relevant confirmation. Contact details for LPT Branch are available on the Revenue website.
In order to further facilitate sales and purchases of residential property, the Revenue Commissioners will also be making an online look-up facility available to solicitors by the end of September 2013 which, with the agreement of the vendor, will allow them confirm the LPT details of properties being sold without the need to contact Revenue.
184. Deputy Andrew Doyle asked the Minister for Finance the parameters of the discussions held with ministerial colleagues at the 3252nd Economic and Financial Affairs (ECOFIN) Council meeting in Brussels on 9 July 2013; the agreements reached; if he will provide an update on matters discussed; and if he will make a statement on the matter. [37411/13]
Amharc ar fhreagraThe ECOFIN Council met on 9th July 2013; it was the first ECOFIN meeting held under the Lithuanian Presidency of the Council. The meeting was attended by representatives of all 28 EU Member States, representatives of the Commission and the European Central Bank, the European Investment Bank (EIB), the Economic and Financial Committee and the Economic Policy Committee. The following issues were discussed.
Lithuanian Presidency Work Programme
The Lithuanian Presidency presented its work programme for ECOFIN for the second half of 2013. Financial Services, European Semester, Deepening and Strengthening of Economic and Monetary Union (EMU), Implementation of the newly established economic governance framework, taxation, the 2014 EU Budget and representing the EU at G20 meetings were the main areas identified for action.
Follow-up to the European Council on 27/28 June 2013
Ministers discussed the follow-up to be given to the European Council's meeting on 27 and 28 June as regards (i) instruments proposed by the Commission and the European Investment Bank to support access to finance for SMEs and (ii) the future development of the EU's economic and monetary union.
The European Council on 27-28 June 2013 concluded that SME financing is a key priority and set out a number of measures to be implemented in the light of a report from the Commission and the EIB. This issue would be further discussed at the Informal ECOFIN meeting in September, with a final report on funding options submitted by the Presidency to the European Council in October.
Regarding EMU, the Council was briefed by the Commission on preparations for further work, namely on an expected communication on economic policy coordination and a proposal on the ex ante coordination of major economic reforms in the member states.
Adoption of the euro by Latvia
The Council adopted a decision allowing Latvia to adopt the euro as its currency as of 1 January 2014, and set a permanent conversion rate for the Latvian lats against the euro. This decision will extend the euro area to 18 member states.
Economic Governance - two-pack
The Council endorsed two documents relating to the implementation of the "two-pack" of economic governance regulations:
- a code of conduct on enhanced monitoring and assessment of draft budgetary plans of euro area member states and
- a communication from the Commission on a harmonised framework for draft budgetary plans and debt issuance reports in the euro area.
The Commission explained the impact of the two-pack in terms of process in the Autumn, including the necessity for Member States to present draft budgets by 15 October.
Follow-up to the G20 Finance Deputies meeting on 6-7 June 2013 in St Petersburg and preparation of G20 meeting of Finance Ministers and Governors of 19-20 July 2013 in Moscow
Ministers endorsed EU terms of reference in preparation for a meeting of G20 Finance Ministers and Central Bank Governors in Moscow on 19 and 20 July. The terms of reference constitute a common position for EU representatives and those member states that participate in the G20. The main topics discussed at the Moscow meeting were the global economy and framework for growth; reform of international financial institutions; financing for investment; taxation issues; and financial regulation and inclusion.
The Presidency and the Commission also reported on a meeting of G20 Finance Deputies held in St Petersburg on 6 and 7 June.
Other business: Legislative proposal on insider dealing and market manipulation (market abuse) (MAR)
The Council took note of a provisional agreement reached with the European Parliament on 20 June on a draft regulation on insider dealing and market manipulation.
185. Deputy Andrew Doyle asked the Minister for Finance the parameters of the discussions held with Ministerial colleagues at the Informal Meeting of Ministers for Economic and Financial Affairs in Vilnius, Lithuania from 13 to 14 September 2013; if he will detail any agreements reached; if he will provide an update on matters discussed; and if he will make a statement on the matter. [37418/13]
Amharc ar fhreagraUnder the Lithuanian Presidency, an Informal meeting of the ECOFIN Council took place in Vilnius on 13-14 September 2013. Minister of State Brian Hayes deputised for me at the meeting. The meeting was attended by representatives from the Finance Ministries and Central Banks of all 28 EU Member States, representatives of the Commission and the European Central Bank, the European Investment Bank (EIB), the Economic and Financial Committee (EFC) and the Economic Policy Committee (EPC), and invited guests. The following issues were discussed.
Economic outlook and financial stability
The Commission and the European Central Bank reported on the main developments regarding the macro-economic and financial outlook of the euro area and the EU as a whole. Completion of the Banking Union was also discussed, with particular focus on proposals for a Single Resolution Mechanism, the work on which will continue and will be progressed by the Lithuanian Presidency in the weeks and months ahead.
Improving access to finance for SMEs – European policy options
The European Council on 27-28 June 2013 concluded that SME financing is a key priority. Following a proposal made by the Irish Presidency, a High-Level Expert Group on Long-Term Finance and SMEs was established. The focus of the group is on concrete capital market instruments to stimulate and permanently diversify SME and mid-cap financing and the financing of infrastructure projects. The Group produced an interim report in July and will publish its final report in November. Based on the interim report, Ministers had a discussion on which options are best to address the SME financing issue. On foot of this discussion, the Presidency will write to President Van Rompuy in advance of the European Council on 24-25 October.
Follow-up to the G20 Leaders’ Summit and preparation of the IMF/World Bank Annual Meetings and G20 ministerial meeting.
This item was primarily for information in the run-up to the IMF and World Bank Annual Meetings. Discussion at the Annual Meetings will focus on the global economy and implementation of ongoing IMF reforms, in particular, on the ratification of the 2010 quota and governance reform as well as the agreement (due by January 2014) on the IMF quota formula and the 15th General Review of Quota.
The Presidency reported on the main outcomes of the G20 Leaders’ Summit in St Petersburgh on 5-6 September. While the Summit had been overshadowed by the situation in Syria, a discussion on economic progress had been fruitful and agreement on tax transparency was a major breakthrough with the Leaders renewing their commitment to automatic exchange of information as the new global standard. The G20 Leaders also endorsed the OECD action plan on tax base erosion and profit shifting.
Future shape of financial system - from the Banking Union architecture to efficient structure of financial markets
Ministers had a discussion on the Future of the EU banking system. The focus of the meeting stressed the need for further convergence with the objective to arrest the fragmentation of banking along national lines. To achieve this we need to credibly break the link between the banks and sovereigns, as called for by the European Council.
Bruegel, the Brussels-based think-tank, presented a paper on the future shape of the financial system, highlighting two points: firstly the need for a banking system that is credibly delinked from sovereigns and the further development of other aspects of financial intermediation.
Fight against tax fraud and tax evasion – towards a global standard on automatic exchange of information
The Council had a general discussion on the development of a global standard for the automatic exchange of information between tax authorities. The OECD Secretary General was present for this discussion. Ministers supported this initiative and stressed the importance of a globally co-ordinated approach and that EU initiatives should be totally consistent with approaches being implemented or considered elsewhere.
186. Deputy Sean Fleming asked the Minister for Finance his plans to refund the pension levy deducted from pension funds in view of the new requirements which show many of them to be in an actual deficit situation; the way this levy may continue to be deducted from these funds; and if he will make a statement on the matter. [37441/13]
Amharc ar fhreagraThe 0.6% pension fund levy which applies to the value of assets under management in pension funds and pension plans approved under Irish tax legislation and which is being used to fund the Government’s Jobs Initiative introduced in 2011 will operate for 4 years. I have no plans to refund the levy as outlined in the Deputy’s question.
187. Deputy Jim Daly asked the Minister for Finance the total cost of all media advertising to his Department for each of the past five years; the efforts his Department is making to ensure that local media both print and radio are being supported as well as national media by his Department's budget; and if he will make a statement on the matter. [37478/13]
Amharc ar fhreagraThe following table sets out the total spend by my Department on public advertisements in national and local print media, radio and television for the past five years to date in 2013.
|
Year |
Advertising Costs |
|
2013 |
€140,499.69 |
|
2012 |
€179,569.51 |
|
2011 |
€437,992.01 |
|
2010 |
€40,230.90 |
|
2009 |
€76,776.41 |
Much of my Department’s media expenditure is concerned with advertisements of an obligatory nature (as stipulated by the relevant legislation) such as the advertising for senior civil servant posts and government notices in European and State publications.
In relation to the efforts made by my Department to support local and national print and radio media, the Deputy will be aware that my Department is required to apply the rules governing procurement for Government bodies including, inter alia, EU procurement guidelines, the Public Spending code, etc.
188. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of all bodies, boards or committees under the remit of his Department to which ministerial appointments are made; the statutory provision providing for the making of such appointments in each case; the annual allowances or other payments made to the chairperson; the annual allowance or other payment made to an ordinary member; and if he will make a statement on the matter. [37493/13]
Amharc ar fhreagra189. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of the boards, bodies or committees under the remit of his Department where there is currently a vacancy to be filled by ministerial appointment; if so, if the vacancy relates to the chairperson or an ordinary member or members, specifying the number of vacancies in each case; and if he will make a statement on the matter. [37508/13]
Amharc ar fhreagra190. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of the bodies, boards or committees under the remit of his Department where there is anticipated to be a vacancy within the next six months to be filled by ministerial appointment; if so, if the anticipated vacancy relates to the chairperson or an ordinary member or members, specifying the number of anticipated vacancies in each case; and if he will make a statement on the matter. [37523/13]
Amharc ar fhreagraI propose to take Questions Nos. 188 to 190, inclusive, together.
The information requested by the Deputy is contained in the following table:
|
Name of Body |
Statutory provision for making appointments |
Annual allowance or other payments paid to chairperson / annual allowance or other payment made to ordinary member |
Current vacancies to be filled by ministerial appointment / vacancy is for chairperson or ordinary member |
Anticipated vacancies in next six months to be filled by ministerial appointments |
|
Irish Fiscal Advisory Council |
Fiscal Responsibility Act 2012 |
With effect from 1 July 2012, the fees payable to Council Members are based on those payable to Directors of Category 2 Non-Commercial State-Sponsored Bodies, which are set from time to time by the Dept. of Public Expenditure and Reform. The relevant fees are €20,520 for the Chair and €11,970 for Members. The fees are not payable to members of the Irish public service. |
None |
None |
|
The Disabled Drivers Medical Board of Appeal |
The Disabled Drivers Medical Board of Appeal requires its Chairperson and Members to be appointed by the Minister for Finance after nomination by the Minister for Health. Chairperson and Members are appointed under S.I. 496/2004, Disabled Drivers and Passengers (Tax Concessions) Scheme Regulations 2004, as amended. |
The Chairperson, who is a Consultant in the National Rehabilitation Hospital, is paid their consultant salary of €178,593 through a subhead in the Finance Vote. A fee of €600 is paid to Members of the Appeal Board per sitting, where a number of appeals are heard, and those fees are also paid from the Vote. |
None |
None |
|
National Asset Management Agency Board |
National Asset Management Agency Act 2009 – section 19 |
Chairperson:€150,000 per annum Ordinary Member: €60,000 per annum With the exception of one ordinary member (who is also Chairperson of the Credit Committee) who receives €75,000 per annum. 3 members (the Chief Executives of the NTMA and NAMA who are ex officio members and another member of the NAMA Executive, as an Executive Board Member) receive no fees in respect of their membership |
Currently, 1 ordinary member vacancy |
3 ordinary member initial terms due to expire in December 2013. |
|
Credit Union Advisory Committee |
Appointed by the Minister for Finance under Section 180 of the Credit Union Act 1997 |
Annual allowance of €3,705 for Chairman and €2,470 for ordinary member. |
7 (1 Chairman and 6 ordinary members) |
None |
|
ReBo (Credit Union Restructuring Board) |
Credit Union and Co-operation with Overseas Regulators Act 2012 |
Fees are €11,970 per annum to the Chair and €7,695 per annum to ordinary members. No fees are paid to Department of Finance or Central Bank representative. |
No current vacancies |
No anticipated vacancies |
|
Central Bank Commission |
In accordance with the provisions of 18CA of the Central Bank Act 1942, the Central Bank Commission comprises the Governor (Chairman), the Deputy Governor (Financial Regulation), the Deputy Governor (Central Banking), the Secretary General of the Department of Finance and at least 6 but no more than 8, other members appointed by the Commission. There are currently 5 “other” members appointed to the Commission by the Minister |
The Governor, as chairman of the Commission is not paid an annual fee in that capacity. Ex officio members of the Commission do not receive a fee in respect of their membership of the Commission. The annual fee for ordinary members of the Commission is €14,936. |
Section 18CA (b) provides that the Commission must comprise at least 6 but no more than 8 members appointed by the Minister. The Commission currently comprises 5 members appointed by the Minister. There are currently a minimum of 1 and a maximum of 3 vacancies on the Central Bank Commission. None of the vacancies relate to the chairman. All vacancies relate to ordinary members |
As one ordinary member’s term is due to expire on 30 September a further vacancy does arise. |
|
Irish Financial Services Appeals Tribunal (IFSAT) |
Central Bank and Financial Services Authority of Ireland Act 2003 |
The members of IFSAT are entitled to the remuneration and conditions of services determined by the President of Ireland on the day of the advice of Government pursuant to Schedule 5 as inserted by Section 33 of the Central Bank and Financial Services of Ireland Act 2003 as follows: Sitting days: 1.Chairperson €584.00 2. Deputy Chairperson €450.00 3. Lay members €416.00 In addition the Chairperson is to be paid an administrative fee of €584.00 per day for one day a month in respect of his statutory administrative functions |
The term on the current Tribunal has expired. A new Tribunal is to be appointed by the President on the nomination of the Government. |
The term on the current Tribunal has expired. A new Tribunal is to be appointed by the President on the nomination of the Government. |
|
National Treasury Management Agency (NTMA) Advisory Committee |
National Treasury Management Agency Act 1990, Section 9, Second Schedule |
Chairperson: €45,000 per annum Ordinary Member: €22,500 per annum Secretary General of the Department of Finance receives no fee in respect of his membership. |
3 current vacancies including Chairperson |
1 ordinary member’s term due to expire in December 2013 |
|
State Claims Policy Committee |
National Treasury Management Agency (Amendment) Act 2000, Section 12 (1) |
Chairperson: €13,713 per annum Ordinary Member: €9,142 per annum 2 members (serving civil servants) received no fees in respect of their membership (one of these members replaced the other as a member during the year). 1 member waived their fee. |
None |
None |
|
National Pension Reserve Fund (NPRF) Commission |
National Pensions Reserve Fund Act 2000 Section 7(3) |
Chairperson: €51,424 per annum Ordinary Member: €34,283 per annum The Chief Executive of the NTMA as an ex officio member receives no fee in respect of his membership. |
1 current vacancy ordinary Member |
2 ordinary member’s terms due to expire in January 2014 |
|
National Development Finance Agency (NDFA) Board |
National Development Finance Agency Act 2002 Section 12(4) |
Chairperson: The Chief Executive of the NTMA is Chairperson of the NDFA. As an ex-officio member he receives no fee in respect of his membership. Ordinary Member: €12,600 per annum The Chief Executive of the NDFA receives no fee in respect of his membership. Secretary General of the Department of Public Expenditure and Reform receives no fee in respect of his membership. 1 ordinary member waived their fee. |
3 current vacancies – ordinary members. |
None |
|
Investor Compensation Company Limited |
Section 18 of the Investor Compensation Act, 1998 (as amended) ‘the Act’ – Directors of Company. 385/2005 Investor Compensation Act, 1998 (Section 18(4)) (Prescription of Bodies & Individuals) (Amendment) Regulations, 2005. 570/2004 Investor Compensation Act, 1998 (Section 18(4)) (Prescription of Bodies & Individuals) (Amendment) Regulations, 2004. |
In Accordance with section 18(5) of the Act, the Chairperson and Deputy Chairperson are appointed by the Governor of the Central Bank of Ireland. Chairperson €31,500 per annum. Deputy Chairperson €15,750 per annum. Ordinary Director €8,550 per annum |
None |
None |
|
Financial Services Ombudsman Council |
The Central Bank Act 1942 (as amended) |
5 members each receive €12,600 per annum and one member the chairperson receives €21,600 per annum |
None |
Term of 6 current members of FSOC expires on 28 October 2013 |
|
Revenue Commissioners |
Statutory Instrument No. 2/1923 – Revenue Commissioners Order, 1923 The Revenue Commissioners are appointed by the Taoiseach following a TLAC competition |
Full time employed positions: Chairman of the Commissioners - Salary Level: Secretary General Level 1 2 Commissioners – Salary Level: Secretary General Level 3 |
None |
None |
|
Appeal Commissioners |
Section 850 Taxes Consolidation Act, 1997. The Appeal Commissioners are appointed by the Minister for Finance |
Full time employed positions: There are 2 Appeals Commissioners – Assistant Secretary Salary Plan |
None |
None |
191. Deputy Andrew Doyle asked the Minister for Finance the measures that are being taken by State owned financial institutions to combat ATM fraud; his views on the current level of scamming that is taking place; and if he will make a statement on the matter. [37548/13]
Amharc ar fhreagraI can inform the Deputy that the State owned financial institutions have provided me with the following information with regard to the measures that they are taking to combat ATM fraud.
AIB
All AIB issued Debit and Credit cards are monitored 24/7 for potential fraudulent spend. AIB utilises industry leading fraud monitoring software that learns cardholder behaviour and provides a fraud risk score for each transaction. Where a transaction is deemed suspicious, AIB may take preventative action and make contact with our customer to confirm recent transaction history. AIB constantly reviews the performance of its fraud monitoring strategies to minimise the impact of fraud monitoring on their genuine customers.
Card Protection Kits (CPKs) are anti-fraud devices that are installed on AIB ATMs to prevent skimming attacks. These devices are tested and where necessary updated regularly to ensure maximum protection against this fraud type. In the event that a skimming device is detected on an ATM, the ATM is automatically closed and remains closed until a full inspection of the ATM has been completed. It is only after this inspection that the ATM is returned to service.
Presently, in the event that a customer’s card has been compromised as a result of this fraud type, they are refunded the value of any fraudulent spend completed on their card. AIB’s ATM network is monitored 24/7, and support lines are available for customers to report anything suspicious found at an ATM.
All AIB ATMs are protected by CCTV, so in the event of criminal activity, this CCTV is available to the An Garda Síochána on request. AIB works closely with other ATM acquiring banks, Card Issuers, An Garda Síochána and other industry groups such as Irish Payments Service Organisation (IPSO) and the Irish Banking Federation (IBF) to ensure that every effort is made to share knowledge and reduce fraud on our ATM networks.
AIB is represented at various industry ATM and Card fraud forums both in Ireland and across Europe to ensure that they are aware of current trends and any potential fraudulent threats at ATM networks.
In the event of significant fraudulent attacks at their ATM network, AIB has a crises management team that comes together to discuss, review and agree next steps. This information is also shared with other ATM acquiring banks via IPSO.
Permanent TSB
permanent tsb employ a zero tolerance to ATM fraud and configures its ATM fleet with some of the best technologies available on the market.
Some of the technologies the Bank employ include Anti-Skimming technology with metal detection and digital signal jamming around card slots, PIN pad protection to prevent shoulder surfing, anti-cash trapping devices and CCTV.
The Bank has also configured the ATMs that in the event of a skimming fraud attempt, the ATM will go out of service automatically. It will only be returned to service once it is confirmed that the machine is no longer tampered or compromised, indicating to the fraudsters that the Bank’s devices will not tolerate any attempt at tampering.
permanent tsb also have a monitoring system in place which alerts the Bank to the possibility of fraudulent transactions. Alerts are driven by the most probable fraud scenarios based on prevailing trends.
Customer education also forms part of any additional security and the Bank’s ATM on-screen advice to customers is to always cover their PIN and to report anything unusual or suspicious about the device to the local Garda Síochána.
192. Deputy Andrew Doyle asked the Minister for Finance the role of the Credit Union Restructuring Board; its activities since it was established; his views on whether having the board independently separate from the Central Bank of Ireland is the best use of this body; and if he will make a statement on the matter. [37550/13]
Amharc ar fhreagraThe Credit Union Restructuring Board (ReBo) is a body corporate established by statute on 1 January 2013 in accordance with the Credit Union and Co-operation with Overseas Regulators Act 2012. The establishment of a restructuring board was a core recommendation of the Report of the Commission on Credit Unions which was agreed with all credit union stakeholders. The role of ReBo is to facilitate and oversee the restructuring of credit unions in accordance with the 2012 Act. The restructuring functions of ReBo are set out in Section 44 of that Act and include:
a) analysing and examining information provided to it by the Bank, credit unions or by any other person,
b) developing provisional proposals and plans with credit unions for the restructuring of the credit union sector,
c) engaging with credit unions to facilitate agreement on restructuring proposals,
d) assisting credit unions in the preparation of restructuring plans,
e) considering and assessing restructuring plans submitted to it by or on behalf of credit unions including any funding requirements under the plan including requiring credit unions to engage third parties to verify information and provide a report to ReBo,
f) approving, approving with conditions or rejecting those restructuring plans,
g) recommending the restructuring plans to the Minister and advising the Bank of its recommendations,
h) overseeing the implementation of restructuring plans, including the provision of post-restructuring support.
Since the establishment of ReBo on a statutory basis, significant progress has been made in putting the ReBo organisation in place, including the approval of its governance structures and policies and procedures by the Board of ReBo and the development of systems and processes to assist credit unions with restructuring proposals. ReBo has also recruited a Chief Executive Officer and a number of staff.
In order to carry out its functions under the Credit Union and Co-operation with Overseas Regulators Act 2012, ReBo continues to interact with credit unions and sector stakeholders through speaking at sector events and meetings. It has also launched a website www.rebo.ie. In addition, expressions of interest forms were sent to every credit union and I have been informed that the response to date has been very positive and follow up from ReBo is underway.
I have also been informed that ReBo has received a number of requests from credit unions for assistance. ReBo is engaging with these credit unions and restructuring plans are being analysed and developed.
It is important to maintain the independence of the Credit Union Restructuring Board from the Central Bank as the two bodies have significantly different roles as set out in legislation and as recommended in the Report of the Commission on Credit Unions.
However, the Credit Union and Co-operation with Overseas Regulators Act 2012 sets out that ReBo shall co-operate with the Central Bank in a way that contributes to promoting the best interests of credit unions generally.
193. Deputy Tom Fleming asked the Minister for Finance in view of the decision to reduce the VAT rate from 13% to 9% and the significance of this reduction to the tourism sector in Kerry and throughout the country and the very positive implications it has had on the industry in creating and maintaining jobs, giving value for money, if he will support the calls to keep the VAT rate at 9% and ensure that Ireland has a strong and competitive tourism industry going forward; and if he will make a statement on the matter. [37630/13]
Amharc ar fhreagraThe 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In line with best international practice it was introduced as a temporary measure and is due to expire at end December 2013, at which point it will revert to 13.5%. Retaining the 9% rate would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere.
Any proposal to maintain the 9% VAT rate will be considered in the context of the Budget.
195. Deputy Robert Troy asked the Minister for Finance the amount Ireland pays annually in penalties for not complying with EU regulation to abolish vehicle registration tax; and the amount the Government receives from VRT each year. [37716/13]
Amharc ar fhreagraIreland does not pay any penalties in respect of EU regulation to abolish vehicle registration tax. The legislation in relation to vehicle registration tax is compatible with the provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union.Vehicle registration tax is a feature of the tax system in 18 other Member States of the European Union.
The net VRT receipts in 2012 were €379 million.
196. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will address the concerns raised in correspondence (details supplied) regarding excise duty and below cost selling of alcohol; if he will implement the recommendations made; and if he will make a statement on the matter. [37736/13]
Amharc ar fhreagraThe issue of excise rates on alcohol will be considered in the context of the forthcoming Budget.
General policy in the area of pricing is a matter for the Department of Enterprise, Jobs and Innovation. However, with regard to the VAT treatment of below cost selling, VAT is a tax on the value added to a supply, and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer. Under EU and domestic VAT rules traders who are registered for VAT collect VAT on the goods and services that they sell. In turn such traders are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods or delivery of services. Consequently, if there is a decrease in value at any stage in the process the trader is entitled to a refund of the excess of VAT incurred over that collected.
In this case, where a retailer is in a situation of net VAT gain as a result of below cost selling, this is not a loss to the Exchequer or an additional benefit to the retailer, it is merely how VAT is charged.
197. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will address concerns raised in correspondence (details supplied) regarding a pension scheme; and if he will make a statement on the matter. [37738/13]
Amharc ar fhreagraAs the Deputy will be aware the pension arrangements for the staff of Permanent TSB are a matter for the management of that company and for the trustees of the relevant pension schemes. It would not be appropriate for me to comment on the implications for an individual arising out of any restructuring by Permanent TSB of its defined benefit pension schemes.
198. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding mortgages; and if he will make a statement on the matter. [37745/13]
Amharc ar fhreagraI am advised that the Special Liquidators of IBRC are maintaining contact with its mortgage holders and with the Central Bank (as part of its overall Mortgage Arrears Resolution Strategy (MARS) process) with a view to appropriately dealing with INBS mortgage holders in arrears on their mortgage.
The Special Liquidators also confirm that the residential mortgage customers of IBRC (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on mortgage arrears and other protections in Irish consumer law.
The Central Bank’s Code of Conduct on Mortgage Arrears, which applies to all mortgage lending activities of all regulated entities, except Credit Unions, operating in the State, remains a key protection for those cooperating INBS/IBRC mortgage holders who are in difficulty in meeting their mortgage commitments. The Code provides, inter alia, that mortgage lenders should allow for a flexible approach in the handling of arrears and pre-arrears cases and that they should aim, as far as possible, at assisting the borrower who is in genuine difficulty having regard to the specific circumstances in individual cases. In particular, the Code provides that a lender’s Arrears Support Unit (ASU) must base its assessment of the borrower’s case on the full circumstances of the borrower including:
- the personal circumstances of the borrower;
- the overall indebtedness of the borrower;
- the information provided in the standard financial statement (SFS);
- the borrower’s current repayment capacity, and
- the borrower’s previous history.
In relation to the sale of the IBRC mortgage book, the Special Liquidators are taking professional advice on the appropriate method of disposing of loan assets and on the appropriate criteria for determining who should qualify to bid for loan assets. As part of this process the Special Liquidators have also begun writing to all IBRC borrowers to update them on the sale of their IBRC Loans and Collateral Obligations and providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. The Special Liquidators are under instruction from the Minister to ensure that the valuation of all IBRC assets is completed by 30 November 2013 and that the sale of all IBRC assets is agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.
I am advised that the contractual terms and conditions of customer mortgages and other borrowings will not change as a result of the appointment of the Special Liquidators or the ultimate sale of the obligations to a third party. All debts owing to IBRC will remain due and enforceable. It is important that, to avoid breaches of their obligations, customers continue to make payments on their loans and otherwise honour the contractual obligations of their borrowings.
199. Deputy Michael Healy-Rae asked the Minister for Finance his views on whether it is critical that the taxation measures that improve the competitiveness of agriculture and encourage investments and restructuring are supported and should include the retention of the 90% agricultural relief and capital acquisition tax thresholds; and if he will make a statement on the matter. [37747/13]
Amharc ar fhreagraThe Capital Acquisitions Tax (CAT) code includes gift tax, inheritance tax and discretionary trust tax.
The tax is charged on the amount gifted to, or inherited by, the donee (the person receiving the gift/inheritance). There is a tax-free threshold (referred to as a ‘group threshold’), based on the relationship between the disponer (the person making the gift/leaving the inheritance) and the donee (the beneficiary). Previous gifts/inheritances since 1991 from other disponers in the relevant group are counted when calculating the taxable amount over the threshold. The balance of the gift/inheritance above the threshold is taxable, currently at a single rate of 33%.
The Group A tax-free threshold is €225,000; the Group B tax-free threshold is €30,150; and the Group C tax-free threshold is €15,075.
Group A relates to gifts and inheritances taken by children from their parents. Group B covers gifts and inheritances between relatives, for example, brothers and sisters, grandparents to grandchildren, uncles and aunts to nieces and nephews. Finally, Group C deals with gifts and inheritances between all other persons.
There is a CAT agricultural relief. In order to qualify for this relief an individual receiving a gift or inheritance of agricultural property must qualify as a farmer. For the purpose of the relief a farmer is an individual at least 80% of whose assets constitute agricultural property.
CAT agricultural relief takes the form of a reduction in the market value of the agricultural property - currently by 90% - for the purposes of establishing the Group thresholds and determining whether or not a CAT liability arises on a transfer. This relief has increased over the years from an original reduction of 50% when CAT was introduced in 1975. The relief will be withdrawn if the agricultural property is sold or compulsorily acquired within six years of or, in certain circumstances, ten years of the gift or inheritance unless the proceeds are reinvested in other agricultural property.
The overall position as regards CAT is therefore, that parents can transfer a family farm with a market value of up to €2,250,000 to a child without any charge to CAT arising on the transfer, (assuming the child qualifies as a “farmer” under the 80% assets test) as the market value of the agricultural lands transferred would be reduced by 90% to €225,000 – this is the Group A threshold for transfers from parent to child for CAT purposes – to leave no CAT payable (assuming that the child has received no prior gifts or inheritances from his or her parents).
Preparations for Budget 2014 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment on what changes, if any, are being considered in this relief or any other tax relief. I will, however, bear in mind the Deputy’s concerns in this matter.
200. Deputy Michael Healy-Rae asked the Minister for Finance in view of the estimated loss of over €200 million a year through the illegal sale of fuels, that is, washed diesel being sold as proper road diesel, if he will consider bringing in a quality assurance scheme nationwide which would guarantee the consumer the quality of the product that they are purchasing; and if he will make a statement on the matter. [37751/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners, who are responsible for the collection of mineral oil tax and for tackling the illicit trade in mineral oil products that, while the introduction of a quality assurance scheme for fuel is not a matter for them, Revenue regularly reminds motorists and the public generally that, in addition to its impact on the exchequer and legitimate trade, they should be aware of the risks that the use of laundered fuel poses to their vehicles and that sourcing fuel in this way is funding criminal activity.
The Commissioners have introduced a comprehensive licensing and reporting system for fuel traders with the objective of identifying and removing illicit fuel from the supply chain and closing down the suppliers and retailers involved in the illicit trade by withdrawing their trading licences. These supply chain control measures are designed to make it difficult for fuel criminals to source marked fuel for laundering and to get laundered product onto the market. From their regular contact with fuel trade representatives, Commissioners are aware of a number of initiatives by fuel traders to provide assurance to customers about the quality of their fuel in response to the threat posed by illicit supplies. Such assurance can be provided only for fuel that is sourced through the legitimate supply chain and accordingly these initiatives and the supply chain controls operated by Revenue are mutually beneficial.
The legitimate trade can contribute to closing down the illicit trade by providing information on the outlets that are selling laundered diesel. Revenue chairs the Hidden Economy Monitoring Group (HEMG) and has established regional sub-groups of the HEMG to facilitate the reporting of information by traders through their representative associations. Retailers who suspect or have evidence that laundered diesel is being sold in their area should report this directly or through their representative associations to Revenue, and I would encourage the Deputy to avail of these channels. Any such reports are treated as confidential and are fully investigated by Revenue.
Revenue collects some €1.1 billion annually in excise duty from road diesel so the potential for loss of tax revenue from fuel laundering is very significant. However, estimating the extent of any illegal activity is inherently problematic and claims about the extent of this activity and the associated tax loss must be treated with caution. While it has not been possible to establish the cost of fuel laundering to the exchequer, Revenue recognises that fuel laundering represents a significant risk.
In response, Revenue has made action against fuel laundering one of its priorities and is implementing a comprehensive strategy to tackle the problem. In addition to the supply chain controls mentioned already, Revenue is working with Her Majesty’s Revenue and Customs (HMRC) in the UK on the acquisition of a more effective fuel marker. Revenue and HMRC signed a Memorandum of Understanding in May 2012 on a joint approach to finding a more effective marker for use in both jurisdictions. The final evaluation of submissions received in response to an Invitation to Make Submissions (IMS) is underway and the outcome of this process is expected later this year.
Revenue, in co-operation with other law enforcement agencies on both sides of the border, continues to intensify enforcement action against fuel fraud and this work has yielded significant results to date. In the past two years 106 filling stations throughout the State were closed for breaches of licensing conditions. Since the beginning of 2010, over 3.14 million litres of fuel have been seized and 29 oil laundries detected and closed down, including 5 oil laundries in 2013 to date.
