Written Answers Nos. 49-55
49. Deputy Michael McGrath asked the Minister for Finance if he will arrange for the Revenue Commissioners to correct a matter regarding the local property tax in respect of a person (details supplied) in County Cork. [51190/13]
Amharc ar fhreagraI am advised by Revenue that it received no communication from either the person in question or his legal representatives in regard to a change of ownership in respect of the particular property. Revenue has also confirmed it has now investigated the ownership of the property and is satisfied that the person in question is no longer the liable person. On that basis Revenue has updated the Property Register to reflect the change in ownership and has removed the person’s 2014 liability from the record.
50. Deputy Michael McCarthy asked the Minister for Finance the position regarding an application for a review of a primary medical certificate application in respect of a person (details supplied) in County Cork. [51195/13]
Amharc ar fhreagraThe disability criteria for eligibility for tax concessions under the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get the Primary Medical Certificate, an applicant must be severely and permanently disabled and satisfy one of the following conditions:
a) be wholly or almost wholly without the use of both legs;
b) be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
c) be without both hands or without both arms;
d) be without one or both legs;
e) be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
f) have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The initial application for a Primary Medical Certificate under the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994, is made to the Senior Medical Officer of the relevant local Health Service Executive administrative area. If the Primary Medical Certificate is refused, the person may appeal the refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin.
I understand the person appealed the decision of the Senior Medical Officer not to grant a Primary Medical Certificate and a date was offered for an appeal hearing but that the applicant was unable to attend the appointment. I would point out that the Medical Board of Appeal is independent in the exercise of its functions.
51. Deputy Tom Fleming asked the Minister for Finance if he will address the loophole in the legislation whereby persons who no longer own a property in 2013 are liable for the local property tax on this property in 2014; his views on whether this is totally unfair, unjust and unreasonable; and if he will make a statement on the matter. [51215/13]
Amharc ar fhreagraIn accordance with the Finance (Local Property Tax) Act 2012 (as amended), liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which was 1 May 2013 for 2013, and, for subsequent years, 1 November in the preceding year. The liability date of 1 November 2013, which applies for 2014, is settled and was approved by the Oireachtas in passing the LPT legislation. I have responded to Parliamentary Questions on the liability date on several previous occasions. In reply to Question No. 110 on 27 March last, I specifically stated that where a liable person sells their residential property between 2 November 2013 and 31 December 2013, provided that they owned the property on 1 November 2013, they will be liable to pay LPT on that property for 2014.
I also informed the House in my replies to Questions Nos. 221 (49518/13) and 223 (49556/13) on 19 November 2013 that having a liability date before the year commences is preferable as there is certainty about who the liable person is for the coming year, that person has a reasonable amount of time to make the necessary provisions and they have access to the widest possible range of options for paying the tax.
For a tax such as LPT to function properly, legislation must specify a liability date for the tax to have application for a particular year. Whatever date is prescribed, the question of liability when there is a change of ownership has to be managed, and I expect that the LPT liability involved is likely to be factored in during negotiations between the parties on the sale price and the closing date of a particular contract. As there are a number of LPT issues to be considered when buying or selling a house, detailed guidance on LPT issues arising in the context of the sale or transfer of a residential property was prepared by the Revenue Commissioners in consultation with the Law Society and is available since last August on the Revenue website at http://www.revenue.ie/en/tax/lpt/sale-transfer-property.html and on the Law Society’s website.
An individual selling a property will often be purchasing another property at around the same time. While a vendor who owns a property on 1 November 2013 is liable for the 2014 LPT on that property, if s/he does not purchase another property before 1 November 2013 s/he will not be liable for the 2014 LPT on that "replacement" property - whoever is the owner as of 1 November 2013 will be liable. I have no plans to amend the legislation governing the liability date for LPT.
52. Deputy Seamus Healy asked the Minister for Finance if the preference shares held in Bank of Ireland by the State are callable at the discretion of BOI; if there are any restrictions on this discretion; if the State is compelled to sell the preference shares to Bank Of Ireland should the bank seek to buy them at any time; if the preference shares are convertible to ordinary shares; if so, whether the State has the option of such conversion; and if he will make a statement on the matter. [51237/13]
Amharc ar fhreagraI can confirm for the Deputy that the Bank of Ireland Preference Shares held by the State can be redeemed at the sole discretion of the Bank at any time, subject to the approval of the Central Bank of Ireland. Any approval of the Central Bank of Ireland would take into account the regulatory capital position of the Bank at the time of such a proposal to redeem. Aside from the callable price being a minimum of par, there are no other restrictions which would prevent the Bank from redeeming the Preference Shares. As a separate consideration, any option to sell the Preference Shares to 3rd party investors would be a decision for the State.
I can also confirm for the Deputy that the terms of the Preference Shares do not include any provision relating to the conversion of the Preference Shares to ordinary shares.
53. Deputy Michael McGrath asked the Minister for Finance the number of meetings officials from his Department have had with the tobacco industry or representatives on its behalf in 2013; and if he will make a statement on the matter. [51272/13]
Amharc ar fhreagraOfficials from my Department have had a total of 4 meetings with representatives of the tobacco industry in 2013. Representatives of Imperial Tobacco, Philip Morris, PJ Carroll and the Irish Tobacco Manufacturers Advisory Committee were each met once during the year.
54. Deputy Michael McGrath asked the Minister for Finance if he has considered the report of the Forum on philanthropy and fundraising in relation to the number of days a non-tax resident person may stay in Ireland and when he expects to respond to the report; and if he will make a statement on the matter. [51273/13]
Amharc ar fhreagraThe Report of the Forum on Philanthropy and Fundraising was published in May 2012. I understand that Recommendation IV of the report calls for the establishment of a “social innovation fund” to “support the establishment and growth of social innovations with the potential for transformative impact on critical social issues facing Ireland, including unemployment and the environment”. The report itself makes no mention of changes to the residence rules. However, I have received a separate proposal, developed jointly by the Forum and the Worldwide Ireland Funds, to set up a “jobs and social cohesion initiative”. The proposal involves modifying the residence rules to allow certain individuals to be in the State for up to 182 days in a year without becoming resident for tax purposes if they paid an upfront fee and an annual levy for ten years, with the money paid linked to the creation of jobs. The proposal also suggested the re-introduction of the “Cinderella rule” for participants in the scheme – that is, participants would only be treated as present in the State on a day for tax residence purposes if they were in the State at midnight on that day.
I asked the Joint Oireachtas Committee on Finance and Public Expenditure Reform to examine these proposals. The Committee has indicated that it thought the proposal had some merit but that certain issues warranted further scrutiny. While I am always open to constructive proposals, I have no plans to change the day counting rules at present.
55. Deputy Michael McGrath asked the Minister for Finance the use to which the proceeds of the sale of the State’s holding of Bank of Ireland convertible capital was put; and if he will make a statement on the matter. [51274/13]
Amharc ar fhreagraI can confirm for the Deputy that proceeds from the sale of the Bank of Ireland convertible capital were deposited in the Exchequer. Funds in the Exchequer come from a number of different sources such as tax revenue, non-tax revenue including the sale of State Assets, and borrowings by the State from the market and under the EU/IMF Programme. As these funds are used in the day-to-day running of the State, it is not possible to quantify which specific funds are used for which purpose.
