Written Answers Nos. 134-50
134. Deputy Patrick Nulty asked the Minister for Finance in relation to the foreign earnings reduction tax relief scheme, if he will outline the rationale and criteria which were used to select the new countries which will become part of the scheme for 2013 and 2014 that is, Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana and the Democratic Republic of the Congo; and if he will make a statement on the matter. [1175/14]
Amharc ar fhreagraSection 12 of Finance Act 2012 introduced the Foreign Earnings Deduction (FED) which provides for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014.
The Department of Agriculture sought the extension of FED for employment related travel to Nigeria, Senegal, Algeria, Egypt, Ghana, the Democratic Republic of Congo, Kenya and Tanzania as these countries are currently the most important trading partners for agricultural exports from Ireland and would complement the Government Agri-Food Development Fund for Africa.
The development of export markets is a key economic priority. The reason that FED was introduced was to encourage trade with countries with which Ireland had a low level of exports. In addition, the measure sought to compensate employees for travel to locations which were difficult to access from a distance perspective and due to language barriers. Accordingly, the Minister decided to extend the measure in Finance Act 2013 to include related travel to Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana and the Democratic Republic of the Congo for the 2013 & 2014 tax years.
135. Deputy Terence Flanagan asked the Minister for Finance the total income tax, PRSI and USC paid in each county in 2012; the average paid per taxpayer in each county; and if he will make a statement on the matter. [1196/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the total income tax and USC paid in each county for the year 2012 is €15,151 million and the breakdown on a county basis is set out in the table below. Figures are not compiled on a similar basis in respect of PRSI. It should be noted that Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt within certain geographical boundaries known as a "bailiwick" which equates geographically with "county". Data on the net receipts of some taxes can be linked to bailiwicks to provide an estimated breakdown of receipts on a county basis and this had been done for the purpose of the question.
In considering the data it should be noted that the amount of tax attributed to a county may not necessarily be an indication of economic activity in that county for any of the following reasons: 1. An employer's liability for PAYE is normally attributed to the county in which wages and salaries are paid, even though the employees may work in different counties.
2. Self-employed persons are associated on the tax record with the address at which the business is located, which may be in a different county to the home address.
I am further informed by the Revenue Commissioners that as the numbers of taxpayers are not maintained with the figures of yield there is no basis on which an estimate of the average tax paid per taxpayer in each county year can be provided.
Estimated breakdown of total income tax and USC collection by county for 2012
|
County |
2012 |
|
- |
€m |
|
Carlow |
99.38 |
|
Cavan |
129.23 |
|
Clare |
243.53 |
|
Donegal |
146.54 |
|
Galway |
646.37 |
|
Kerry |
517.19 |
|
Kildare |
445.08 |
|
Kilkenny |
240.94 |
|
Laois |
62.68 |
|
Leitrim |
113.79 |
|
Limerick |
462.38 |
|
Longford |
46.29 |
|
Louth |
210.66 |
|
Mayo |
176.98 |
|
Meath |
346.91 |
|
Monaghan |
70.81 |
|
Offaly |
229.96 |
|
Roscommon |
58.91 |
|
Sligo |
122.82 |
|
Tipperary |
213.97 |
|
Waterford |
228.28 |
|
Westmeath |
775.41 |
|
Wexford |
179.89 |
|
Wicklow |
268.89 |
|
Dublin |
7555.92 |
|
Cork |
1358.00 |
|
Other/foreign |
200.19 |
|
Total |
15,151.00 |
136. Deputy Terence Flanagan asked the Minister for Finance the current proposals in the EU regarding a basic bank account, harmonising the practices across the EU; the implications this will have for Ireland; and if he will make a statement on the matter. [1221/14]
Amharc ar fhreagraThe Report on the Standard Bank Account pilot project was published on my Department’s website on 10 January 2014. The Financial Inclusion Working Group (FIWG), chaired by my Department, and including stakeholders ranging from other Government Departments, the Central Bank of Ireland, retail banks, An Post, the National Consumer Agency and voluntary sector organisations will work closely together on the finalisation and roll out of the Standard Bank Account. It is expected that the rollout of the Standard Bank Account will be achieved during 2014.
The proposed Payment Accounts Directive defines a framework for the rules and conditions according to which Member States shall guarantee a right for consumers to open and use payment accounts with basic features in the Union. A general approach has been agreed at European Council level and the proposed Directive trilogue negotiations between Council, the European Parliament and the Commission will commence shortly. The full implications for Ireland will not be known until these negotiations have concluded.
137. Deputy Terence Flanagan asked the Minister for Finance Ireland and the Central Bank of Ireland's current position on Bitcoin; and if he will make a statement on the matter. [1228/14]
Amharc ar fhreagraI am informed by the Central Bank that crypto-currencies such as Bitcoin are not services regulated by the Central Bank and are not legal tender in the Euro area. Consumers using Bitcoin should be aware that it is not covered by any Irish regulatory protections and does not fall under the Deposit Guarantee Scheme or the Investor Compensation Fund, so consumers would be liable for all potential losses in full.
The Deputy may also be aware of a statement issued by the European Banking Authority on 12 December 2013 warning consumers of the possible risks they may face when buying, holding or trading virtual currencies such as Bitcoin. No specific regulatory protections exist that would cover consumers for losses if a platform that exchanges or holds virtual currencies fails or goes out of business. While the EBA is currently assessing all relevant issues associated with virtual currencies, in order to identify whether virtual currencies can and should be regulated and supervised, consumers are advised to familiarise themselves with the risks associated with them.
I would also draw the Deputy's attention to my reply to a Dail question on 10 December 2013 in which I noted that the Revenue Commissioners had advised me that e-commerce, including the use of virtual currencies, present a challenge to tax administrations throughout the world. Specifically, regarding the possible use of crypto-currencies (including Bitcoin) to circumvent taxes, the Revenue Commissioners and tax administrations in other countries are actively monitoring developments. Because Bitcoin is a combination of some factors that constitute a commodity and some that constitute a currency, the implications for taxation are varied.
138. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding insurance for properties in areas prone to flooding; and if he will make a statement on the matter. [1253/14]
Amharc ar fhreagraAt the outset, it should be noted that the issue of flood cover and its unavailability is one which I am familiar with. I am also very conscious of the difficulties that the absence of such cover can causes to householders and businesses. However, I am not in a position to direct insurance companies to provide flood cover to specific individuals. The issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting.
The idea of making flood insurance compulsory has been considered. However, it would mean that in areas where there was likely to be regular flooding, the cost of insurance would almost certainly be prohibitive and could make premiums unaffordable for policyholders in general.
On the question of legislation, the Government has also examined the introduction of a scheme to protect householders who cannot obtain household insurance in respect of flooding from regular insurance bodies. However, this approach was not considered financially viable because it was believed that over time it would incentivise industry to discontinue the provision of cover in medium and high risk areas thus making the cost of such a scheme prohibitive.
What the Government can do, however, is try to address the underlying problem through appropriate remedial works where this is economically feasible. The Office of Public Works is committed to doing all it can to alleviate the impact of flooding through the provision of defences as well as a comprehensive assessment of flood risk throughout the country and development of flood risk management plans for the areas most at risk under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This commitment is underpinned by a very significant capital works investment programme which will see up to €225 million being spent on flood relief measures over a five year period from 2012 to 2016.
Most of the damage arising from the recent stormy weather was in coastal counties in the West and South. OPW, along with other relevant Depts, will be providing financial support to local authorities in relation to the repair of public infrastructure damaged in the storms. In OPW's case the support will relate to damaged coastal flood defence structures such as rock armour revetments, sea walls.
In relation to the issue of the provision of flood cover in areas where the OPW has carried out flood relief works, the OPW and the Irish Insurance Federation have been engaged in discussions to agree on a sustainable system of information sharing in relation to completed flood alleviation schemes and works undertaken by the OPW or, in certain instances, by local authorities with OPW funding, and where the standard of protection afforded by these works could be verified. There is agreement in principle but with some operational details to be finally sorted by the insurance companies.
The outcome of these discussions means that the insurance industry will have a much greater understanding of the extent of the protection provided by flood defence works and will therefore be in a position to provide the necessary flood cover to householders in such areas.
In cases where individuals who are experiencing difficulty in obtaining flood insurance believe that they are being treated unfairly they can contact the Irish Insurance Federation which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at iis@iif.ie.
139. Deputy Michael Healy-Rae asked the Minister for Finance the reason the Central Bank of Ireland has reiterated controversial security rules for credit unions barring them from investing in the highest rated sovereign bonds, but at the same time making exceptions for Irish Government debt and Irish banks; and if he will make a statement on the matter. [1254/14]
Amharc ar fhreagraSection 43 of the Credit Union Act 1997 sets out legislative requirements in relation to investment of surplus funds by a credit union. The First Schedule of the Trustee Act 1893 (as amended by the Trustee (Authorised Investments) Order 1998) sets out securities that trustees and, by virtue of section 43(1) of the Credit Union Act 1997, credit unions, are authorised to invest in.
The Registrar of Credit Unions, who is the independent regulator for credit unions within the Central Bank, issued a circular to credit unions on 19 December 2013 regarding Investments in State Securities other than Irish State Securities. The purpose of the circular is to provide clarification on certain requirements contained in the First Schedule of the Trustee Act 1893 (as amended by the Trustee (Authorised Investments) Order 1998) (the Order) relating to State securities. The circular does not contain any new requirements.
The requirements contained in the First Schedule of the Order do not preclude credit unions from investing in the highest rated sovereign bonds. They do include a requirement that investments other than investments in Securities issued by the Irish State and Authorised Credit Institutions can only be made where the issuer has a rating in the case of (1) long-term securities, that is not lower than AA or its equivalent or (2) in the case of short-term securities, that is not lower than A1 or its equivalent.
140. Deputy Jerry Buttimer asked the Minister for Finance the reasons for specified PAYE deductions in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [1272/14]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that on 19 November 2013, an amended tax credit certificate was issued to reflect the State Contributory Pension which became payable to the taxpayer during 2013. The effect of this was to increase the amount of tax deducted from his occupational pension payments for the remainder of 2013. Following the end of the year, the taxpayer's liability was reviewed. A refund is in course of issuing, and a revised tax credit certificate has issued. If the taxpayer has any further queries, he may contact Mr. Redmond Walsh, Higher Executive Officer, Customer Services, Cork North West District, Revenue House, Blackpool Cork, on 021-6027707.
141. Deputy Michael Healy-Rae asked the Minister for Finance the amount of money collected in County Kerry in property tax during the year 2013; and if he will make a statement on the matter. [1282/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT) for 2013 are available broken down by city and county councils nationally and the most up to date figures are published on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-stats-11-2013.pdf. As of 6 November 2013, a total of €6.6 m in LPT had been paid in County Kerry. The Commissioners will publish 2013 year-end compliance data shortly. The Commissioners have confirmed that by the end of December 2013 €318m had been transferred by Revenue to the Exchequer in respect of LPT. Of this amount, €242m was in respect of LPT for 2013 and €76m relates to 2014 LPT.
142. Deputy Michael Healy-Rae asked the Minister for Finance when the State will hold its first debt sale of 2014; and if he will make a statement on the matter. [1284/14]
Amharc ar fhreagraOn 7 January 2014 the National Treasury Management Agency (NTMA) sold €3.75 billion of a new benchmark Treasury Bond maturing in March 2024 via a syndicated sales process. The bond was sold at a yield of 3.543 per cent.
Of the amount issued 17 per cent was taken up by domestic investors and 83 per cent by overseas investors. The overseas investors were mainly from the U.K. (26%), the Nordic region (15%), Germany, Austria and Switzerland (14%), and the U.S. and Canada (14%).
Investor interest in the bond was even broader than in the previous benchmark bond sale of March 2013. The order book included interest from some 400 fund managers, pension funds, insurance companies, banks and other investors, including some from the Middle East and Asia. The total book amounted to some €14 billion.
This 10-year bond sale is the NTMA’s first capital market transaction since the exit from the EU/IMF Programme in December 2013. The size of the final order book and the spread of investor interest across the globe demonstrate the appetite for Irish Sovereign debt and Ireland’s ability to fund its needs in the private debt markets. Notwithstanding the large order book the NTMA restricted the size of the deal to €3.75 billion in order to accommodate bond auctions in its funding programme for the remainder of the year.
It is clear from the very significant demand we have seen that international and domestic investors recognise the enormous progress Ireland has made. This transaction is a real success that cements Ireland’s return to the international debt markets and provides a strong platform for bond auctions over the remainder of the year.
143. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 111 of 13 May 2013 on the value shift tax scheme, if his stated estimate of non-compliant firms has risen; the number of appeals that are pending; the length of time these appeals typically last; the number of Revenue officials currently required to pursue these tax compliance matters; and the number of the 76 or more non-compliant firms that are Irish. [1316/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the number of identified companies that participated in the value shift scheme stands at 76. Assessments to tax have been entered in respect of the shareholders of the companies and the number of tax appeals is 112. In one of the cases the Appeal Commissioner decided in favour of the taxpayer and the decision was appealed by Revenue to the High Court. It is not possible to say how long this appeal process will take but typically the time from listing before the Appeal Commissioners to a hearing before the High Court would be a minimum of two years. The value shift scheme is being investigated by Revenue's Special Projects Branch which has 13 investigators. While approximately four of these investigators are involved in aspects of the value shift scheme they are also involved in other investigations. The companies concerned are all Irish resident.
144. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide, in tabular form and year-on-year, the occasions on which he has signed off on the awarding of added years to public sector workers between March 2011 and December 2013; the grade of the persons awarded the added years; and the number of added years awarded in each instance. [1360/14]
Amharc ar fhreagraThere are various arrangements in operation throughout the Civil and Public Service which can provide in certain circumstances for added notional years of reckonable service when calculating superannuation benefits. In my Department, between March 2011 and December 2013 no individual has been awarded added years under the Professional Added Years Schemes or as a result of abolition of office (Section 6 of the Superannuation Act 1909 and Sections 6 and 7 of the Superannuation and Pensions Act 1963).
Any award of added years under Ill-Health/Death in Service (where added years may be granted in cases of retirement on the grounds of ill-health or where a Survivor's pension is being awarded in circumstances where the civil or public servant dies while still in service) between March 2011 and December 2013 was granted on an administrative basis in accordance with the terms of the relevant pension scheme or statutes.
145. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide, in tabular form and year on year, the number of commercial and non-commercial State agency board positions under the aegis of his Department that were filled between March 2011 and December 2013; the number of these positions that were publicly advertised; and the number of female appointments. [1376/14]
Amharc ar fhreagraIn response to the Deputy’s question the following table contains the information requested by the Deputy:
Appointments and re-appointments since March 2011
|
Year |
Number of commercial and non-commercial State agency board positions filled |
Number of these positions that were publically advertised |
Number of female appointments. |
|
Mar-Dec 2011 |
5 |
0 |
1 |
|
2012 |
25 including 3 reappointments |
12 |
4 |
|
2013 |
11 including 6 reappointments |
1 |
1 |
146. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide, in tabular form and year-on-year, the number of JobBridge interns taken on in his Department in 2013. [1392/14]
Amharc ar fhreagraMy Department took in one JobBridge placement during 2013.
|
Year |
No of Interns |
|
2013 |
1 |
147. Deputy Róisín Shortall asked the Minister for Finance the specific date upon which maternity benefit became taxable; if he will in respect of a mother who was mistakenly charged income tax, PRSI and universal social charge on maternity benefit in the years it was not taxable. outline the date tax refunds may be claimed. [1442/14]
Amharc ar fhreagraIncome tax is charged on maternity benefit paid on or after 1 July 2013. This benefit continues to be exempt from PRSI and the Universal Social Charge. Refund of any income tax, PRSI and Universal Social Charge mistakenly charged in respect of maternity benefit payments must be claimed within four years from the end of the year of assessment in respect of which the payments were made. A claim for refund of overpaid tax and Universal Social Charge must be made to the taxpayer's local Revenue office. A refund of overpaid PRSI can be claimed from the Department of Social Protection s PRSI Refunds Section, Oisin House, Pearse Street, Dublin 2.
148. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding tax relief for over 70s. [1465/14]
Amharc ar fhreagraThe system of income tax relief for medical insurance premiums is provided at source at the standard rate of income tax. Therefore, the State was paying 20% of the cost of all private medical insurance premiums. In Budget 2014 the Minister announced that 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 ceilings will no longer qualify for tax relief.
The cost of Income Tax relief in respect of medical insurance has increased significantly in recent years, at €404 million in 2011, €448 million in 2012 and is estimated to be €500 million in 2013. Despite the increasing cost of the relief, the numbers insured are estimated to have reduced by approximately 170,000 over the same period, while at the same time the level of medical cover has decreased on some policies. Against this background the increase in costs is unsustainable.
The Revenue Commissioners estimate that up to 577,000 policy holders, which equates to just under 53% of all policies, may be affected by this measure. However, I should point out that many 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. The new ceilings will ensure continuing support via the tax system for those who purchase medical insurance policies, while reducing Exchequer exposure to more expensive policies.
The Commission on Taxation in its 2009 report recommended the retention of medical insurance relief but that it should be limited. The introduction of an upper ceiling on the amount of medical insurance premiums that will qualify for tax relief achieves this recommendation. The Government fully supports the elderly in retaining access to medical insurance via community rating of insurance premiums. Community rating, in principle, provides that everybody is charged the same premium for a particular health insurance plan, irrespective of age, gender and the current or likely future state of their health. Community rating therefore means that the level of risk that a particular consumer poses to an insurer does not directly affect the premium paid. It also means that premiums for younger or healthier lives are typically higher than their expected claims would require, whereas for older or less healthy lives, premiums are typically lower than the expected claims would require. Older people who have been paying health insurance premiums for many years will have contributed to intergenerational solidarity when they were younger and could reasonably expect to benefit from it now. The support system that enables community rating, which involves the charging of a levy on the policies of younger individuals, is referred to as risk equalisation. In view of these existing supports for the elderly in obtaining medical insurance, I am not in favour of the introduction of additional tax relief for those aged over 70.
149. Deputy Seán Kenny asked the Minister for Finance his plans to provide funding for the purchase of an additional mobile X-ray scanner to the Revenue Commissioners. [1498/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that Revenue currently has three mobile scanner systems. Two of these are mobile X-ray container scanning systems that are based at Dublin Port and Rosslare Ferry Port respectively. Both of these scanners are available for deployment at other ports, and at other locations such as warehouses, as required, and Revenue utilises them, on a risk assessment basis, at various locations throughout the country. The other mobile scanning system is a Scan Van that was acquired in July 2012. This specialist vehicle incorporates an X-ray facility, radiation detection facilities and ionscan technology. It is used for monitoring baggage and cargo at airports and ports for narcotics, cigarettes, radioactive materials and other contraband. It also allows Revenue enforcement officers to perform controls at other locations such as warehouses and courier depots.
The mobile scanner systems are complemented by static baggage/parcel scanners in all major ports, airports and postal depots. I am advised that three modern replacement baggage X-ray scanners were purchased in the recent past for use at Dublin Airport, Shannon Airport and Rosslare Ferry Port.
The Revenue Commissioners continuously review their detection equipment requirements, taking account of developments in detection technologies, and have availed of part-funding under the European Union's Hercule II programme to acquire such equipment. I understand that they are generally satisfied with their current scanning capabilities and consider that the container ports are adequately serviced by the two mobile X-ray container scanning systems. I am advised also that the performance of the Scan Van since its acquisition is being evaluated on an ongoing basis and that the possibility of augmenting this resource with additional units is being considered.
150. Deputy Pearse Doherty asked the Minister for Finance the situation and rights of those who have a life assurance policy which is not in arrears assigned to a mortgage that is in arrears. [1523/14]
Amharc ar fhreagraSection 126 of the Consumer Credit Act 1995 requires that, subject to certain exemptions set out in the Act, “a mortgage lender shall arrange a life assurance policy providing, in the event of the death of a borrower before a housing loan made by the mortgage lender has been repaid, for payment of a sum equal to the amount of the principal estimated by the mortgage lender to be outstanding in the year in which the death occurs on the basis that payments have been made by the borrower in accordance with the mortgage”.
By way of general information, the most common type of mortgage protection is a reducing cover life assurance policy. Such policies are designed so that cover reduces in line with the amount of capital outstanding on the mortgage, assuming that mortgage repayments are made as they fall due. Where arrears arise the mortgage amount owing to the credit institution will not decrease while the mortgage protection cover will continue to decrease. In such cases the policy may only pay what would be due under normal circumstances, i.e., repayments being made and therefore the additional amounts due arising from the arrears may not be covered.
Where a borrower has concerns in relation to an action taken by a mortgage lender in respect of a life assurance policy, the borrower should, in the first instance, examine carefully the terms and conditions of the relevant contract. If the borrower’s concerns remain, then a formal complaint should be made to the lender.
Finally, if there is not a satisfactory outcome as a result of this approach, then there is the option of referring the matter to the Financial Services Ombudsman who deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers. The Office can be contacted at http://www.financialombudsman.ie/ and is a free service to the complainant.
