Written Answers Nos 128-145
128. Deputy Billy Timmins asked the Minister for Finance in relation to the cap on the amount of premium on which tax relief is available on medical insurance introduced in the budget 2014, the number of persons impacted by this new measure including families and couples without children on their health insurance policies; and if he will make a statement on the matter. [44639/13]
Amharc ar fhreagra167. Deputy Róisín Shortall asked the Minister for Finance his estimate of the number of health insurance customers who will pay additional health insurance as a result of the budget announcement on tax relief on medical insurance. [44890/13]
Amharc ar fhreagraI propose to take Questions Nos. 128 and 167 together.
The position is that from 16 October 2013, tax relief for medical insurance premiums will be restricted to the first €1,000 per adult and the first €500 per child insured. Any portion of premium paid in excess of these ceiling will no longer qualify for tax relief. The new ceilings will ensure continuing support via the tax system for those who purchase standard policies, while reducing Exchequer exposure to more expensive policies.
I am advised by the Revenue Commissioners that it is estimated that up to 577,000 policy holders, which provide cover for 1.1 million individuals, may be affected by this measure. However, I should point out that many of these will only be affected marginally, depending on the cost of the policies that individuals purchase. In addition, individuals can of course opt for less expensive policies and therefore avoid the impact of this measure entirely.
129. Deputy Willie O'Dea asked the Minister for Finance the reason defined contribution pension holders are being charged a levy to pay for possible insolvent pension schemes from which they cannot benefit; his views on whether defined contribution pension holders should pay for potential State liabilities which may emerge from pre-existing or future pension fund difficulties; and if he will make a statement on the matter. [44650/13]
Amharc ar fhreagraThe revenues arising to the Exchequer from the stamp duty levy on pension fund assets are, in common with Exchequer revenues generally, not hypothecated to any particular item of expenditure or liability but have been used to help fund the various measures introduced by the Jobs Initiative. One of the very significant and successful measures introduced by the Jobs Initiative – the reduced VAT rate of 9% on tourism and certain other services – was due to end this year. In my Budget speech, I announced the continuation of the reduced 9% VAT rate and I indicated that the yield from the additional 0.15% pension fund levy in 2014 and the reduced levy of 0.15% in 2015 would continue to help fund the Jobs Initiative and also help to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties. In this context, for example, the cost of continuing with the reduced 9% VAT rate is estimated at €350 million in a full year while the additional yield from the changes to the levy in 2014 and 2015 is estimated at €135 million in each year. As I have indicated, the proceeds from the levy will accrue to the Exchequer and expenditure decisions on the use of those and other funds will be made as they arise in the normal way.
130. Deputy Olivia Mitchell asked the Minister for Finance if any protections, in terms of future rates and conditions, will be offered to residential mortgage holders with the former Irish Bank Resolution Corporation when the mortgage loan book is sold on by the liquidator; and if he will make a statement on the matter. [44136/13]
Amharc ar fhreagraI 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. The continued applicability of the Central Bank Code of Conduct on Mortgage Arrears and Mortgage Arrears Targets Programme will depend on the regulatory status of the ultimate acquirer of the portfolio which we will not know until the sales process has concluded. In the event that NAMA ultimately acquires this portfolio, the NAMA Board will determine its strategy at that stage and will, in doing so, be mindful of its legal obligations. The Special Liquidators confirm that all Borrowers can re-finance their borrowings at par with other lending institutions. The Special Liquidators confirm that the residential mortgage customers of IBRC Limited (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 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. The Special Liquidators have begun writing to all IBRC borrowers to update them on the sale of their IBRC Loans and Collateral Obligations. Borrowers were presented 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. Decisions concerning the sale and disposal of loan assets are a matter for the Special Liquidators and I have no role in the process.
Should a bid not be received by a qualified bidder that is equal to or in excess of the Valuation Price, then the asset/portfolio will transfer to NAMA. The valuation of all IBRC assets is to be completed by 30 November 2013 and the sale of all IBRC assets agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.
131. Deputy Michael Healy-Rae asked the Minister for Finance how persons who overestimated their value of property last July may rectify this matter in January 2014; and if he will make a statement on the matter. [44138/13]
Amharc ar fhreagraThe Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and how a residential property is to be valued for Local Property Tax (LPT) purposes. As I told the House in my reply to the Deputy's Question No. 77 (44072/13) on 17 October 2013, Local Property Tax (LPT) is a self-assessed tax so it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. I also informed the House that the Revenue Commissioners had confirmed that if a liable person had genuinely overpaid the tax through an error or mistake, then the person should write to LPT Branch, Government Buildings, Ennis, Co Clare, clearly setting out how the overpayment arose and providing the relevant supporting documentation.
I am further advised by the Commissioners that once the relevant documentation is received LPT Branch will make direct contact with the person. Should it transpire that the person did in fact overpay the 2013 liability then it will be possible to offset some or all of the overpayment to the 2014 liability, or make a repayment.
132. Deputy Tom Fleming asked the Minister for Finance if he will support the joint pre-budget submission by organisations (details supplied) that clearly show that cuts are affecting persons with an intellectual disability and-or autism in a multitude of ways; if he will ensure that all Departments start making persons with a disability a priority; and if he will make a statement on the matter. [44147/13]
Amharc ar fhreagraI can confirm that the Pre-Budget Submission to which the Deputy refers was received by my Department on 14 October 2013 and I would note that to date we have received in excess of 600 submissions in the context of Budget 2014. However the issues which the Deputy raises relate to expenditure policy and as such are primarily matters for some of my Ministerial colleagues rather than for me as Minister for Finance.
133. Deputy Dessie Ellis asked the Minister for Finance further to Parliamentary Question No. 176 of 8 October 2013, if he will name the political party mentioned in his reply that submitted its budget proposals to his Department for costing and if any other party did so prior to budget 2014. [44180/13]
Amharc ar fhreagraPrior to Budget 2014 my Department received one request for costings from a political party and two from individual Deputies. Such requests are handled by my officials on a confidential basis and as such I cannot provide further details to the Deputy.
134. Deputy Seán Ó Fearghaíl asked the Minister for Finance his plans for the future of Newbridge Credit Union; and if he will make a statement on the matter. [44182/13]
Amharc ar fhreagra150. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he has had, or if he plans to have, discussions with the regulator of credit unions and the Central Bank of Ireland in relation to the recovery plan for Newbridge Credit Union; and if he will make a statement on the matter. [44644/13]
Amharc ar fhreagraI propose to take Questions Nos. 134 and 150 together.
On 13 January 2012, the Central Bank of Ireland secured a High Court Order for the appointment of a Special Manager to Newbridge Credit Union. Further High Court applications were made to extend the term of appointment of the Special Manager, the latest being in June 2013, and High Court Orders were secured for a 6 month extension period on each occasion.
The Central Bank undertook a process under the Central Bank and Credit Institutions (Resolution) Act 2011, involving the examination of possible combinations with other credit unions. As part of this process, Naas Credit Union submitted a proposal to the Central Bank, setting out the basis upon which Naas Credit Union would be prepared to combine with Newbridge.
At the request of the Governor of the Central Bank, I have confirmed that I am prepared, in principle, to support the proposal. However, the proposal remains subject to amongst other things due diligence, completion of relevant documentation, Naas Credit Union board approval, regulatory consideration and High Court approval. I expect that these steps will be completed expeditiously and that the Naas/Newbridge combination will be finalised by the end of this year. This will necessitate a significant capital investment of taxpayers' funds into Newbridge Credit Union to cover the losses at Newbridge and to ensure the protection of members' savings and the stability of Newbridge into the future. The successful combination of these credit unions is considered the best way to ensure the continuity of credit union services for members in Newbridge.
Newbridge Credit Union Action group has submitted an alternative proposal to me regarding Newbridge Credit Union. I have referred the proposal to the Governor of the Central Bank for examination with a view to arranging a meeting between the Central Bank and the Newbridge Credit Union Action Group.
Section 91 of the Central Bank and Credit Institutions (Resolution) Act 2011 provides that the Central Bank may direct a credit institution to prepare a recovery plan setting out actions that could be taken to facilitate the continuation, or secure the business or part of the business, of that credit institution in a situation where the institution is experiencing financial instability. The Central Bank has not issued such a direction to Newbridge Credit Union. As Minister for Finance I have no role in the exercise by the Central Bank of its functions in respect of recovery plans.
135. Deputy Thomas P. Broughan asked the Minister for Finance if he will consider introducing a scheme to allow sports clubs and community or voluntary groups to apply for a refund of VAT paid on the purchase of a defibrillator in view of the considerable expense incurred by such organisations in purchasing this vital piece of equipment; and if he will make a statement on the matter. [44189/13]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate, currently 23%. There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of such products. Under the VAT (Refund of Tax) (No.15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund. However, a defibrillator purchased for general use by a sports body or charity would not qualify for such a refund.
136. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the reason patients of sleep apnea cannot claim relief on electricity, in a similar way to patients on dialysis, for the use of their respirator which is a nightly requirement for those suffering from said illness; and if he will make a statement on the matter. [44193/13]
Amharc ar fhreagraRelief in respect of health expenses is allowed in accordance with the provisions of section 469 of the Taxes Consolidation Act 1997. In order to qualify for relief an individual must show that he or she has incurred “health expenses” for the provision of “health care”. It is not the case that all expenses incurred on health care qualify for relief. For the purposes of section 469 "health care" is the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability. Health expenses include the cost of treatment necessarily incurred in connection with the services of a medical practitioner. Given the nature of the treatment involved, it is clear that dialysis is necessarily undertaken in connection with the services of a medical practitioner. It is carried out under ongoing medical supervision. I am advised by the Revenue Commissioners that the granting of a deduction in respect of electricity usage by kidney dialysis patients was only determined after extensive consideration of the particular nature of their medical condition. Differing levels of relief in respect of electricity costs have been allowed depending on whether a patient requires home dialysis or is a Chronic Ambulatory Peritoneal Dialysis (CAPD) patient. The level of relief in respect of electricity costs for such dialysis patients is determined by reference to the annual consumption of electricity based on dialysis being undertaken a number of times each day, including necessary preparatory work.
Health expenses also include the supply, maintenance or repair of any medical surgical, dental or nursing appliance used on the advice of a practitioner. I am further advised by the Revenue Commissioners that the on-going cost of operating an appliance is not allowable unless the appliance is used in connection with the services of a medical practitioner and is used subject to ongoing medical supervision.
If respirators are used on the advice of a medical practitioner and under medical supervision, then, I understand that the Revenue Commissioners are prepared to consider the question of relief for the cost of the electricity used to run the machine. My officials will forward any submission in this regard to the Revenue Commissioners for their consideration.
137. Deputy Stephen S. Donnelly asked the Minister for Finance if he will intervene with the liquidators of Irish Bank Resolution Corporation in the sale of mortgages for former Irish Nationwide customers and any others whose loans have ended up in IBRC, to disaggregate the overall loan-book, allowing individual mortgagors to bid on their own loans as part of the process of liquidation, just as larger borrowers can do; if not, the reason for same; and if he will make a statement on the matter. [44280/13]
Amharc ar fhreagraThe Special Liquidators have given significant consideration to and have sought independent advice from PWC in relation to how the residential mortgage portfolio and other loans in IBRC are to be dealt with. Following that independent advice, the Special Liquidators have decided that the residential mortgage book would be split into four segments consisting of performing, non-performing, owner occupier and buy to let mortgages with a view to maximising market interest. I am advised by the Special Liquidators that the decision to offer the residential mortgage book for sale in this way was arrived at having regard to the scale of the process and size of the IBRC loan book. Furthermore the Special Liquidators have confirmed that the decision to sell these loans as part of a portfolio is the most efficient method of disposal and the one which is most likely to maximise ultimate sales realisations for the Special Liquidators having regard to the public interest.
The decision concerning how the loans will be packaged for sale and what bidders constitute qualifying bidders for the purposes of the sales process is to be made by the Special Liquidators and I will not intervene in this matter.
138. Deputy Gerry Adams asked the Minister for Finance if his attention has been drawn to the fact that many citizens are experiencing severe difficulties after having registered online for the local property tax; and that these citizens who had filed their returns and completed the payment option correctly and completed the payment transaction in full before the deadline have now received letters from the Revenue Commissioners stating that they have outstanding moneys to be paid; the measures he will take to rectify the situation; the measures he will take to make the process for registering for the LPT more accesible; and if he will make a statement on the matter. [44293/13]
Amharc ar fhreagraI am advised by Revenue that the vast majority of customers who opted to meet their Local Property Tax (LPT) obligations through the on-line facility and did so correctly have not received any subsequent correspondence from Revenue. However, I am informed that in a relatively small number of cases the payment transactions failed. The most common reasons for failure include: financial institutions refusing the payment request; incorrect digits in the credit/debit card number; wrong card type selected; and taxpayers exiting the system before the transaction completed.
Revenue has advised me that it has written to individuals who have outstanding LPT payments. The purpose of the letter is to remind them to pay the balance within a specified time or enter into a phased arrangement that ensures payment is made in full by 31 December 2013. The letter also advises people who may be experiencing processing problems or any other difficulties in meeting their payment obligations to contact Revenue through the LPT Helpline at 1890 200255 for assistance. This assistance provides full support for on-line filers including processing payments over the telephone. I am assured that this service operates to the highest industry standards and is completely secure.
Finally, I am assured by Revenue that it will not commence any collection recovery activity where people engage positively to ensure their 2013 LPT payment obligations are fully completed by 31 December 2013.
139. Deputy Eoghan Murphy asked the Minister for Finance the amount of revenue he anticipates the universal social charge will bring in in 2014; and if he will provide a breakdown of this figure per income earner and tax band. [44347/13]
Amharc ar fhreagraThe Universal Social Charge (USC) is collected by the Revenue Commissioners as a component of Income Tax. In Budget 2014, it is forecast that Income Tax receipts of €17,045 million will be collected in 2014 and it is expected that the yield from the USC will account for just over €4 billion of that overall forecast. I am informed by the Revenue Commissioners, that while the necessary detailed basic data is not compiled in such a manner as would enable an income distribution of expected receipts to be provided, a modelled distribution of the estimated amount of USC, due for the tax year 2014, by reference to projected incomes for 2014, has been compiled and is set out in the table below.
I am also informed by the Revenue Commissioners that the figure for total USC provided in the table is a projected estimate of the total USC liability in respect of the tax year 2014 and is not intended to correspond to the cash receipts expected to be collected in the corresponding calendar year. Figures of cash receipts are subject to timing arrangements and can also be distorted by cash flow adjustments.
The figures are estimates from the Revenue tax forecasting model using actual data for the year 2011, adjusted as necessary for estimated income and employment trends in the interim.
These are, therefore, provisional and likely to be revised.
It should be noted that the numbers of income earners shown in the table counts a married couple who has elected or has been deemed to have elected for joint assessment as one tax unit, although USC is an individualised charge and as such the estimated liability is calculated on the basis of individual incomes. Income range values commence in the table at €10,036, which is the point of income at which liability to USC commences.
It should be noted that Gross Income is as defined in the Revenue Statistical Report 2011.
Projected income distribution of USC payers in 2014
|
Range of Gross Income € |
Number |
Amount of USC € |
|
10,036 – 15,000 |
139,060 |
41,097,007 |
|
15,001 – 20,000 |
166,303 |
87,741,327 |
|
20,001 – 25,000 |
183,940 |
148,647,096 |
|
25,001 – 30,000 |
171,413 |
187,947,290 |
|
30,001 – 35,000 |
155,290 |
215,240,192 |
|
35,001 – 40,000 |
140,895 |
235,330,504 |
|
40,001 – 45,000 |
116,227 |
229,404,109 |
|
45,001 – 50,000 |
94,415 |
216,052,142 |
|
50,001 – 55,000 |
78,218 |
203,539,648 |
|
55,001 – 60,000 |
62,481 |
182,019,232 |
|
60,001 – 65,000 |
52,126 |
168,361,756 |
|
65,001 – 70,000 |
45,029 |
159,733,042 |
|
70,001 – 75,000 |
37,390 |
145,017,965 |
|
75,001 – 80,000 |
30,829 |
129,559,995 |
|
80,001 – 85,000 |
25,559 |
115,971,554 |
|
85,001 – 90,000 |
21,334 |
103,900,014 |
|
90,001 – 95,000 |
17,845 |
93,008,245 |
|
95,001 – 100,000 |
15,219 |
84,478,642 |
|
100,001 – 120,000 |
41,458 |
262,270,018 |
|
120,001 – 140,000 |
22,315 |
172,009,680 |
|
140,001 – 160,000 |
12,689 |
115,244,530 |
|
160,001 – 180,000 |
8,355 |
87,421,173 |
|
180,001 – 200,000 |
5,622 |
66,289,398 |
|
200,001 – 250,000 |
8,128 |
114,085,545 |
|
250,001 – 300,000 |
4,459 |
77,737,516 |
|
300,001 – 350,000 |
2,680 |
55,541,952 |
|
350,001 – 400,000 |
1,675 |
40,409,810 |
|
400,001 – 450,000 |
1,108 |
30,238,253 |
|
450,001 – 500,000 |
787 |
24,344,035 |
|
500,001 – 750,000 |
2,036 |
80,068,423 |
|
750,001 – 1,000,000 |
703 |
39,399,770 |
|
1,000,001 – 2,000,000 |
597 |
52,504,778 |
|
Over 2,000,000 |
148 |
39,335,185 |
|
Overall Total |
1,666,331 |
4,003,949,825 |
As previously indicated the necessary detailed basic data is not compiled in such a manner to enable expected receipts to be broken down by tax band. I trust that the data broken down by income bands as shown will be of assistance to the Deputy.
140. Deputy Micheál Martin asked the Minister for Finance if he will review with the Revenue Commissioners if the long version of form IT38 for capital gains tax can only be paid online; if this is the case, if he will review the impact on non-ROS registered taxpayers, not all of whom might have computer access; and if he will make a statement on the matter. [44430/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that Form IT 38 is the statutory return on which beneficiaries declare any gifts or inheritances they receive for Capital Acquisitions Tax (CAT) purposes and it is assumed that this is the tax to which the Deputy is referring. Chargeable gains for Capital Gains Tax purposes, on the other hand, may be returned on the Form CG1 or Form 11. Depending on the circumstances of the case, CAT can be a complex tax. The Commissioners advise me that there is a short form of IT 38 which may be submitted on line or in paper form, and this is used in the simpler straightforward cases for example where no relief/exemption/credit is claimed, apart from the small gift exemption or where the property included in the return was taken from only one disponer and is not part of a larger benefit or series of benefits.
On the other hand where the circumstances of the gift or inheritance taken by a beneficiary are complicated by factors such as them claiming the more complex reliefs from CAT or, where the benefit they are taking is not an absolute interest, taxpayers are obliged to complete the long version of the Form IT 38 that must be filed online through the Revenue Online Service (ROS). Because of the complexity, it is the Commissioners' experience that these type of cases are generally handled by a solicitor or tax practitioner and in these circumstances filing online should not present any difficulty.
In line with the Government's policy on e-Government and e-payments, Revenue's stated strategic objective is to establish the use of electronic channels as the normal way of providing services to taxpayers and this, it seems to me, is a reasonable approach. Filing and paying taxes online is easier, more accurate, more efficient and taxpayers get more time to file.
A taxpayer who is not using an agent such as a solicitor to handle the relevant gifts or inheritances and wishes to file the long form IT Form IT 38 themselves, will, I am advised find it much easier to do so on line than on paper. The design of ROS ensures that the online form is simpler and quicker to complete. As information is entered, the system progressively customises the screens that have to be completed, thus minimising the number of screens and options presented. In addition, ROS holds up-to-date rates of tax, indexed group threshold amounts and other key data that ensure the correct tax due is automatically calculated once certain details are input by the taxpayer. Calculating the CAT liability on paper returns is significantly more difficult for taxpayers than using ROS as they have to enter the figures on the Return form and compute the liability themselves.
In addition, using the online IT 38 Return results in speedier processing by the Revenue Commissioners which in turn, in the case of inheritances, ensures that the administration of Estates are quicker, more efficient and less costly for the Estate and the ultimate beneficiaries.
The Deputy refers to people who may not be ROS registered or have no computer access. Registration can be arranged in such cases, and there is a dedicated ROS Helpdesk available at tel:1890201106. In the unlikely circumstances of a more complex case not being handled by a solicitor, the taxpayer can make a case to Revenue to be excluded from their obligation to pay and file electronically if Revenue is satisfied that the taxpayer does not have the capacity to do so. A person who considers that he/she may qualify for an exclusion should apply in writing to the local Revenue district.
For this purpose, “capacity” means sufficient access to the Internet and, in the case of an individual, also means not prevented by reason of age, or mental or physical infirmity from making a specified return or paying any specified liabilities by electronic means. Where Revenue does not approve a request for exclusion, the taxpayer has a right to make a formal appeal to the Appeal Commissioners.
Finally, while the long form IT 38 must be filed electronically, the Revenue Commissioners confirm that taxpayers can pay their CAT liabilities either electronically through ROS or alternatively directly to the Collector General by cheque, for example.
141. Deputy Dan Neville asked the Minister for Finance the position regarding the proposed Ireland-Taiwan double taxation agreement. [44443/13]
Amharc ar fhreagraAs has been outlined to the House before by my colleagues in Government, Ireland, along with all EU partners, adheres to the "One China" policy and therefore does not have diplomatic relations with Taiwan, though this does not prevent the development of economic and trade relations. Since Taiwan is not recognised as a State by Ireland we cannot enter into a legally enforceable agreement which would be governed by international law. However a number of other EU countries have negotiated commercial agreements with Taiwan along the lines of Double Taxation Agreements. I can advise the Deputy that officials from my Department and their colleagues in the Revenue Commissioners and Department of Foreign Affairs and Trade have had discussions on possible ways to progress this issue.
My Department will shortly write to the Office of the Attorney General to seek their advice on the various legal issues that may arise.
142. Deputy John McGuinness asked the Minister for Finance the reason the property tax is being withdrawn from the wages of a person (details supplied) in County Carlow; in view of the fact that they are living in a listed unfinished estate; and if he will expedite a refund. [44462/13]
Amharc ar fhreagraThe properties in unfinished estates which are exempt from Local Property Tax (LPT) are set out in the Finance (Local Property Tax) Regulations 2013 (S.I. 91 of 2013) made by the Minister for the Environment, Community and Local Government. I am advised by the Revenue Commissioners that the information in the regulations did not make it possible to accurately identify the relevant properties. I am further advised that the difficulties in the case referred to by the Deputy occurred because the person in question failed to make contact with Revenue on foot of either the original issue of the LPT 1 Return in March 2013 or the subsequent reminder in August 2013. The August reminder specifically advised the person of the imminent commencement of mandatory deduction at source from his income if he did not complete the LPT 1 Return and indicate either a payment option or an entitlement to deferral or exemption. Because the person still did not engage with Revenue, an instruction issued to his employer to commence deductions.
The Deputy will be aware that Revenue conducted a comprehensive communications programme at the commencement of the LPT, which clearly outlined the obligations on property owners to file their LPT 1 Return and confirm either their liability to the tax or their entitlement to relief or exemption from it. Revenue stated it would seek to collect the estimated amount, which was included with the LPT 1 Return, in circumstances of non-payment or non-engagement. Revenue also confirmed that it would deploy its various enforcement options, including mandatory deduction from a defaulting person's income, where it was necessary to do so to secure payment.
I can confirm to the Deputy that Revenue has now received a completed LPT 1 Return in respect of the property in question claiming exemption on the basis of a 'listed' unfinished estate. On the basis of the information supplied, Revenue has issued instructions to the person's employer to cease the mandatory deductions. Revenue has also confirmed that it will shortly make direct contact with the person in question to arrange a refund of the monies deducted.
143. Deputy Seán Kenny asked the Minister for Finance his plans to increase the number of dogs in the Revenue Commissioners dog unit; when this unit was last increased; and if he will make a statement on the matter. [44532/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that their enforcement and intelligence teams currently deploy 13 detector dog teams at strategic locations throughout the country. Each team comprises a detector dog and handler, and the dogs are used in the detection of drugs, tobacco and cash. While the detector dog teams are deployed primarily within their regions of assignment, they are also available for deployment elsewhere, as required. Revenue also ensures that the teams maintain a high visibility at the ports, airports, postal depots and freight forwarders' premises in which they routinely operate. In addition, the teams assist in operations carried out by An Garda Síochána, whenever requested to do so.
The experience of the Revenue Commissioners is that detector dog teams play an important part in detecting illicit drugs and tobacco and the illegal movement of cash. The number of teams was increased substantially in recent years. Arrangements are currently in train for the replacement of two detector dogs that were taken out of service this year, and for the acquisition of two further dogs that will be trained to detect tobacco and cash. This will bring the number of detector dog teams to 17, and the Revenue Commissioners consider that that complement will provide the requisite support for their work in detecting and seizing illegal drugs and tobacco products and cash. The position will, however, be kept under review on an ongoing basis, in light of emerging circumstances and requirements.
144. Deputy Robert Troy asked the Minister for Finance if he will reintroduce tax deductions for charitable donations made by the self-employed. [44545/13]
Amharc ar fhreagraChanges were made to the scheme of tax relief for donations to approved bodies in Finance Act 2013 as follows:
- Donations from all individual donors under the scheme are treated in the same manner, with the tax relief in all cases being repaid to the charity.
- A blended rate of relief of 31% applies to all taxpayers regardless of their marginal tax rate. All donations are grossed up as is currently done for donations from individuals within the PAYE collection system.
- The charitable donations scheme has been removed from the scope of the high earners' restriction in recognition of the fact that donors will no longer benefit from the tax relief associated with their donations.
- An annual donation limit of €1 million per individual, for which a refund of income tax can be claimed by approved bodies, has been applied.
These changes were made following a process of engagement between officials at the Department of Finance and the Revenue Commissioners with representatives of the charities sector from the Irish Charities Tax Reform Group (ICTR).
The objectives of that process were threefold: (i) to simplify the operation of the regime, (ii) to reduce the administrative overheads on charities and on the Revenue Commissioners incurred in the operation of the scheme, and (iii) to ensure that any change would be Revenue neutral from the Exchequer perspective. The proposals for the changes were also recommended in the Report of the Forum on Philanthropy and Fundraising.
It is worth noting that PAYE-only taxpayers were never able to claim tax relief for donations made. I have no plans to reverse any of the changes made in the recent Finance Act in relation to the donations scheme.
145. Deputy Terence Flanagan asked the Minister for Finance the position regarding a pension in respect of a person (details supplied) in Dublin 3; and if he will make a statement on the matter. [44584/13]
Amharc ar fhreagraI assume that the Deputy's question relates to an individual with an Approved Minimum Retirement Fund (AMRF) who wants to have access to the fund. AMRFs are part of the Approved Retirement Fund (ARF) regime introduced in 1999. The ARF regime gives a considerable degree of control, flexibility and personal choice to individuals in Defined Contribution pension arrangements in relation to the drawing down of benefits from their pension plans. These choices include the options to purchase an annuity, to receive the balance of the pension fund in cash (subject to tax, as appropriate), to invest in an approved retirement fund (ARF) or an Approved Minimum Retirement Fund (AMRF), subject to certain conditions.
Under the regime, the options to:
- invest in an ARF, or
- receive the balance of the pension fund in cash (subject to tax, as appropriate)
are subject to conditions. The conditions include the requirements that the individual be over 75 years of age or, if younger, that the individual has a guaranteed level of pension income (specified income) actually in payment for life at the time the option to effect the ARF or cash option is exercised. Finance Act 2011 increased the guaranteed level of pension income required from the previous fixed amount of €12,700 introduced in 1999, to a variable amount equal to 1.5 times the maximum annual rate of the State Pension (Contributory) bringing the “specified income” requirement to €18,000 per annum. In Finance Act 2013, I rescinded this increase and reinstated the original lower specified income requirement of €12,700 on the grounds that the Finance Act 2011 change did not provide for adequate transitional arrangements to allow individuals to adjust to the increased pension income requirement.
Where the specified income requirement of €12,700 per annum is met by an AMRF owner at any time after retirement and before age 75, the AMRF automatically becomes an ARF with full access to the funds, subject to taxation as appropriate. It should also be borne in mind that (irrespective of the level of guaranteed pension income) an AMRF owner can access the funds in an AMRF at any time for the purpose of purchasing a pension annuity.
