Written Answers Nos. 74-82
74. Deputy Michael McGrath asked the Minister for Finance the number of persons affected and the amount of tax that has been collected by the Revenue Commissioners as part of its compliance campaign targeting those in receipt of a State pension and a private occupational pension; and if he will make a statement on the matter. [54562/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that they have extensive data exchange arrangements in place with the Department of Social Protection (DSP) and that these are under constant review by the two organisations. The arrangements have been significantly enhanced in recent times and following an exchange with the DSP in relation to DSP pension payments in late 2011, Revenue undertook to amend DSP pension recipients’ tax records with up-to-date pension information for the year 2012 onwards in order to ensure future tax compliance. In parallel, beginning in March 2012 Revenue examined in detail PAYE taxpayers who had DSP pensions that had not been returned for prior years. As is normal practice for any compliance work that they undertake, the Commissioners focussed initially on the highest risk cases, which are those cases where the annual non-DSP income exceeded €50,000. They moved next to those whose non-DSP income was between €40,000 and €50,000 and then to those whose non-DSP income was between €30,000 and €40,000. In March 2013, all cases involving self-assessed taxpayers who had not declared their DSP pensions and had annual non-DSP income in excess of €30,000 were examined.
Where underpayments of tax were discovered, PAYE Balancing Statements and amended Notices of Assessment were issued to the taxpayers concerned in respect of the particular years reviewed and discussions were held with regard to the collection of any arrears due.
As of December 16 2013, 10,302 examinations have been concluded. The yield to date is €24.5m, including tax, interest and penalties. There are approximately 500 cases still under enquiry and the Commissioners are making every effort to finalise these.
75. Deputy Dominic Hannigan asked the Minister for Finance if he will consider a change to the VAT regime for travel agents to enable them to offer gross wholesale accommodation prices to Irish agents so they can compete on an equal footing with travel agents from the UK which do not have to charge VAT on their offers and are at a competitive advantage; and if he will make a statement on the matter. [54581/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the same VAT rules apply to Travel Agents dealing in Irish accommodation, whether based in Ireland or the UK. Consequently, Irish agents do compete on an equal footing with travel agents in the UK. The supply of wholesale accommodation, that is the sale of a block booking of hotel rooms to another accommodation wholesaler, is not within the Travel Agents Margin scheme, and the normal VAT rules apply whether the wholesaler is based in Ireland or the UK.
The Travel Agents Margin Scheme was introduced with effect from 1 January 2010, following detailed discussions with the travel industry. The scheme deals with the activities carried on by Travel Agents who act in the capacity of a principal when supplying certain travel services such as transport and accommodation, which they have bought in from third parties for onward supply to travellers. Travel agents covered by the scheme have no entitlement to recover the VAT charged by the wholesale accommodation provider, but in turn are only liable for the VAT on their margin and not the full consideration when the service is supplied to a customer. The supply to a customer by a UK or Irish Travel Agent of accommodation in Ireland is within the Margin Scheme.
76. Deputy Finian McGrath asked the Minister for Finance if he will provide a breakdown of the interest paid to date on the promissory note; the projected interest payable for the years 2014 to 2020; and the total projected interest payable to the end of new long-term Government bonds. [54584/13]
Amharc ar fhreagraDuring 2010, Anglo Irish Bank, INBS and EBS were provided with promissory notes to the value of €30.6bn consisting of a number of tranches. Each tranche paid a market based fixed rate of interest which is set on the date of issue and is appropriate to the maturity date of the tranche. Interest paid in 2011, 2012 and 2013 on the promissory notes was €568m, €13m and €12m respectively. The reduced level of interest in 2012 and 2013 was due to the interest holiday on the IBRC promissory notes between 1 January 2011 and 31 December 2012. Following the liquidation of IBRC and the promissory note transaction in February 2013 no further interest is payable in respect of the IBRC promissory notes. In relation to EBS, the total interest payable on the promissory note for the years 2014 – 2020 will be c.€82m assuming they run to maturity.
In relation to the Irish Government Bonds that have been issued in exchange for the Promissory Notes these are floating rate bonds. The coupon on these bonds is 6-month Euribor plus a margin ranging from 2.50% to 2.68%. Given the nature of this floating rate it is not possible to be accurate with regard to the exact interest cost payable in respect of these Bonds.
77. Deputy John Browne asked the Minister for Finance the implications, should a further bailout occur where savings of up to €100,000 are protected by the Government, for saving clubs and penny banks run by community and sports clubs which would have a combined total of more than this; if these savings would be treated on an individual basis or if the total savings would be taken into account whereby the clubs would lose their protection; and if he will make a statement on the matter. [54646/13]
Amharc ar fhreagraThe Central Bank of Ireland is responsible for operating the Deposit Guarantee Scheme (DGS), according to the rules set out in the Financial Services (Deposit Guarantee Scheme) Act 2009 and the European Communities (Deposit Guarantee Schemes) (Amendment) Regulations 2009 (S.I. 228 of 2009). Under these rules, the DGS provides compensation for eligible depositors up to a maximum of €100,000 per person, per institution. In general, each eligible person or separate legal entity qualifies for coverage of €100,000 in each institution where they hold deposits, subject to certain exclusions as set out in the legislation. Savings in excess of this amount are not protected by the DGS.
A deposit to which two or more persons are entitled as members of a partnership, association or grouping of a similar nature, without legal personality, (whether or not in equal shares) shall be treated as a single deposit.
However, if the entity holding deposits does so as a trustee, and any beneficiary of the trust concerned is beneficially entitled against the trustees to any identifiable part of that amount, then coverage may be available to each individual beneficiary up to the €100,000 limit (including any deposits held by those beneficiaries with the same institution).
In the event that the club has legal personality and does not hold the funds in trust, the DGS will consider the legal structure of that entity to determine their eligibility should such a situation arise and a decision will be made at that time.
78. Deputy John Halligan asked the Minister for Finance the number of illicit cigarettes that have been seized by the Revenue Commissioners and Garda in 2013; if this represents either an increase or decrease in the number of illicit cigarettes seized by the Customs Service since 2012; the inroads the Department has made in combating this issue; the level of funding allocated to stamping out the smuggling of illicit cigarettes into the State; his views on whether the Department and all other associated Departments and agencies involved in the tracking down and seizing of these goods are becoming more successful; and if he will make a statement on the matter. [54665/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the number of cigarettes seized to 30 November this year is 40.05 million, and that the comparable figure in respect of 2012 is 93.48 million. It needs to be borne in mind in viewing these data that the level of seizures can vary significantly between years, because of factors such as the occurrence of a very large seizure in a given time period. The incidence of illicit cigarettes in Ireland is evaluated through annual surveys of smokers undertaken for the Revenue Commissioners and the National Tobacco Control Office of the Health Services Executive. The results for 2012 found that 13% of smokers had an illicit pack of cigarettes, and the comparable figure for 2011 was 15%. This would suggest that the extent of the problem is being contained, as a result of the extensive action being taken against the smuggling and sale of illicit products. A further survey was carried out recently, and it is expected that the results will be available in the first quarter of next year.
The work of the Revenue Commissioners against the illicit trade includes a range of measure designed to identify and target those who are engaged in it, with a view to seizing the illicit products and prosecuting those responsible. Key elements of Revenue’s strategy include ongoing analysis of the nature and extent of the problem, development and sharing of intelligence on a national, EU and international basis, the use of analytics and detection technologies, and ensuring optimum deployment of resources at points of importation and within the country.
Interception at the point of importation is achieved through a combination of risk analysis, profiling and intelligence, as well as the screening of cargo, vehicles, baggage and postal packages. Revenue’s enforcement officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private commercial premises. There is extensive cooperation with An Garda Síochána in combating the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market.
Revenue has approximately 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These staff are deployed across a number of compliance and enforcement programmes that reflect the strategic and business priorities set out in Revenue’s Statement of Strategy and Annual Corporate Plan. These programmes include anti-smuggling controls, audit, assurance checks, debt management, investigations, prosecutions and anti-avoidance interventions. Resources are continuously redeployed across the programmes in response to the Commissioners’ assessment of risk. It is not possible, therefore, to disaggregate the resources deployed exclusively on tackling the smuggling and sale of illicit cigarettes.
The Revenue Commissioners assure me that combating the illegal tobacco will continue to be a high priority for them, that they are committed to maintaining their extensive programme of action against all stages of the supply chain for illicit tobacco products, and that they will continue to make very effort to ensure that those involved in the illicit trade are brought to account before the Courts for their criminal activities.
79. Deputy Seán Ó Fearghaíl asked the Minister for Finance his views on correspondence (details supplied) regarding credit unions; and if he will make a statement on the matter. [54671/13]
Amharc ar fhreagraThe registration and regulation of credit unions is the responsibility of the Registrar of Credit Unions within the Central Bank, who is the independent regulator for credit unions. I have been informed by the Central Bank that engagements between it and individual credit unions are confidential. The Central Bank has previously confirmed that it is open to proposals to re-establish credit union services in the Newbridge area. Any proposal to establish a new credit union or to extend the common bond of an existing credit union is subject to regulatory approval by the Central Bank.
80. Deputy Martin Heydon asked the Minister for Finance if any credit unions have expressed an interest in extending their common bond area into the Newbridge area in view of the transfer of Newbridge Credit Union to PTSB in November; if there has been any engagement between the Central Bank and individual credit unions in relation to same; and if he will make a statement on the matter. [54721/13]
Amharc ar fhreagraThe registration and regulation of credit unions is the responsibility of the Registrar of Credit Unions within the Central Bank, who is the independent regulator for credit unions. I have been informed by the Central Bank that engagements between it and individual credit unions are confidential. The Central Bank has previously confirmed that it is open to proposals to re-establish credit union services in the Newbridge area. Any proposal to establish a new credit union or to extend the common bond of an existing credit union is subject to regulatory approval by the Central Bank.
81. Deputy Finian McGrath asked the Minister for Finance if the family of a disabled child who paid for the renovation of their home out of their own finances is entitled to an exemption from the local property tax; and if this is not the case, the reason for same. [54725/13]
Amharc ar fhreagra82. Deputy Finian McGrath asked the Minister for Finance the reason the family of a disabled child is being forced to pay the local property tax after paying for home renovations (details supplied). [54727/13]
Amharc ar fhreagraI propose to take Questions Nos. 81 and 82 together.
It is also unclear whether the Deputy is referring to two separate families, or whether both Questions relate to the same case.
Based on the information supplied by the Deputy it is not possible to provide a definitive reply, however, the following general information may be useful.
While there is no specific exemption from Local Property Tax (LPT) for a person with a disability or for houses which have been modified to cater for a person with a disability, in certain limited circumstances an exemption may apply. Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides that an exemption from the charge to LPT may apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence.
I am advised that section 189(A) of the Taxes Consolidation Act 1997 (as amended), defines 'incapacitated individual' as an individual who is permanently and totally incapacitated, by reason of mental or physical infirmity, from being able to maintain himself or herself. Entitlement to the exemption provided for in section 10B will depend on whether the extent of a person’s disability is such that they are permanently and totally incapacitated from being able to maintain himself or herself.
Section 15A of the 2012 Act (as amended) provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority, and where the adaptation increases the market value of the property. As the Deputy states in both Questions that the family has paid for the renovation themselves, it appears that they would not be eligible to apply for this relief.
It should also be noted that the impact of such adaptations on a property may decrease its value which may in turn impact on the LPT liability.
With regard to Question 54727/13, given the circumstances of the case, Revenue will make direct contact with the person to discuss the specifics and advise on any possible entitlement under either section 10B or section 15A of the 2012 Act (as amended).
