Written Answers Nos. 64-74
64. Deputy Brendan Griffin asked the Minister for Finance if he will provide details of the income to the Exchequer from inheritance tax for the past five years; and if he will make a statement on the matter. [21968/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the yield from Inheritance tax for the years in question is as set out in the following table.
|
Year |
Inheritance Tax Yield €m |
|
2009 |
202 |
|
2010 |
186 |
|
2011 |
214 |
|
2012 |
254 |
|
2013 |
258 |
65. Deputy Brendan Griffin asked the Minister for Finance the savings anticipated in 2014 by changes to the rate of rebate available to charitable organisations in respect of donations from PAYE workers; his plans to review this matter; and if he will make a statement on the matter. [21979/14]
Amharc ar fhreagraAs the Deputy is aware, changes 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 was previously 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. It is worth noting that PAYE-only taxpayers were never able to claim tax relief for donations made. As the changes were designed to be Revenue neutral, there are no anticipated savings as a result of these changes in 2014.
66. Deputy Clare Daly asked the Minister for Finance if he will remove the double taxation on maternity benefit, introduced in last year's budget as a result of the hardship caused at a time when persons need financial security. [21990/14]
Amharc ar fhreagraIt is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. Treating these payments as income for tax purposes is essentially a matter of equity. As a result of maternity benefit payments becoming liable to income tax for all claimants, from 1 July 2013, a number of possible tax outcomes can arise:
1. An individual may pay no income tax on their maternity benefit payment as their tax credits will be sufficient to reduce their tax liability to zero.
2. An individual may pay income tax on some or all of their maternity benefit payment solely at the standard rate.
3. An individual may pay income tax at the standard rate on a portion of the maternity benefit and the higher rate on the balance of the maternity benefit payment.
4. An individual may pay income tax on all of their maternity benefit payment at the higher rate.
I am aware that some employers do not pay a top up payment to their employees whilst on maternity leave. However, in such circumstances many mothers will not be subject to income tax on their maternity benefit payments as their personal credits will ensure that no tax arises on the social welfare income itself. Of course, the extent, if any, to which taxation actually arises in a given case, depends on the total level of income that the individual or couple concerned has in the relevant tax year or years. I would point out that maternity benefit payments remain exempt from Universal Social Charge and PRSI. I can assure the Deputy that income from maternity benefit is subject to taxation only once and that there is no double taxation of such income.
67. Deputy Clare Daly asked the Minister for Finance in what capacity he attended a Bilderberg Meeting in Chantilly, Virginia, USA, in 2012; the reason for his attendance; the cost of the trip and a list of those who accompanied him; if the visit was sanctioned by the Cabinet; the questions raised, and where an account of the meeting may be found. [21992/14]
Amharc ar fhreagraAs I have outlined in previous Parliamentary Questions, I attended the Bilderberg meeting in Westfield Marriot, Chantilly, Virginia, USA, from 1 to 3 June 2012. I, like a number of my European colleagues (both Ministers and EU Commissioners), was invited to attend given my position as Minister for Finance. I travelled alone and the total cost associated with my travel and accommodation came to €4,000. As standard procedure Cabinet approval is not required for Ministerial travel plans. For further information, I would point the Deputy to the Bilderberg Meetings website (www.bilderbergmeetings.org), which includes information on the organisation's governance, steering committee, meetings and associated press releases. At this meeting and its workshops I took the opportunity to set out to my fellow attendees the opportunities that exist in Ireland for investors and multinational companies. I also outlined the significant progress Ireland is making in restoring stability and growth to the economy.
The Government is focused on encouraging as much investment as possible into Ireland. In 2013, IDA reported the creation of 13,367 new jobs by client companies during that year. 2014 has seen a continuation of the strong flow of FDI projects, with a number of significant announcements to date and a strong project pipeline for the coming months. I would point out to the Deputy that a number of the business attendees represented companies which have very significant investments in Ireland that support thousands of Irish jobs.
68. Deputy Sandra McLellan asked the Minister for Finance if mortgage providers are permitted to penalise persons who sell their home while they have an outstanding mortgage in order to clear their debt (details supplied) in County Cork; and if he will make a statement on the matter. [22022/14]
Amharc ar fhreagraI am advised by the Central Bank that in relation to the provision of credit, the Central Bank's Consumer Protection Code 2012 (2012 Code) sets out rules on early repayment. Where a regulated entity offers credit on a fixed interest rate to a personal consumer, or offers a personal consumer the option to fix their rate or to switch to a fixed rate on an existing credit agreement, the regulated entity must provide, in the credit documentation, a worked example specific to the personal consumer of the early redemption charge in monetary terms and details in relation to the calculation of this charge.
The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) may be relevant where a borrower is in arrears or pre-arrears on his/her primary residence. Where a lender does not offer a borrower an alternative repayment arrangement, where a borrower is not willing to enter into an alternative repayment arrangement offered by the lender or where a borrower has been classified as not co-operating, the lender must inform the borrower on paper or another durable medium of other options available to the borrower, such as voluntary surrender, trading down, mortgage to rent or voluntary sale and the implications of each option for the borrower. His/her mortgage loan account shall include:
(i) an estimate of associated costs or charges where known and, where not known, a list of the associated costs or charges;
(ii) the requirement to repay outstanding arrears, if this is the case,
(iii) the anticipated impact on the borrower's credit rating, and
(iv) the importance of seeking independent advice in relation to these options.
On the issue more generally, if a customer has made a formal complaint to the financial service provider in question and is not satisfied with the outcome, then the matter can be referred to the Financial Services Ombudsman.
The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers which are either regulated by the Central Bank or, are subject to the terms of the Consumer Credit Act 1995. All personal customers, unincorporated bodies, charities, clubs, partnerships, trusts, and limited companies with a turnover of €3,000,000 or less can complain to the Ombudsman.
Investigations by the Financial Services Ombudsman are free of charge to the customer.
69. Deputy Catherine Murphy asked the Minister for Finance if there is any flexibility in either the rate of contribution or the minimum age at which the capital of an approved minimum retirement fund may be accessed; if any changes are planned in this specific area; and if he will make a statement on the matter. [22037/14]
Amharc ar fhreagraApproved Minimum Retirement Funds (AMRFs) form part of the flexible options at retirement that are available in respect of all benefits from Defined Contribution (DC) occupational pension schemes and other DC pension savings arrangements. Choices available to individuals (after taking the retirement lump sum) include the option to purchase an annuity with the remaining funds, to receive the balance of the pension funds in cash (subject to marginal rate income tax, as appropriate) or to invest the balance in an approved retirement fund (ARF).
The options to - invest in an ARF, or receive the balance in cash - are subject to conditions. The conditions include the requirements that the individual be over 75 years of age or, if younger, that he or she has a guaranteed level of pension or annuity income ("specified income") actually in payment for life at the time the option is exercised. The purpose of the specified income requirement is to ensure, before an individual has unfettered access to their remaining retirement funds via an ARF or cash that they have the security of an adequate guaranteed pension income throughout the period of their retirement. The minimum specified income requirement is €12,700 per annum at present. Where the specified income test is not met, and an individual does not wish to purchase an annuity, then an AMRF must be chosen into which a "set aside" amount must be invested.
The purpose of an AMRF is to ensure a capital or income "safety net" throughout the latter period of an individual's retirement where their pension income is below the specified income requirement. The maximum 'set aside' amount is €63,500 of the balance of the pension fund after taking the allowable retirement lump sum, or the remainder of the pension fund if this is less than €63,500. The capital in an AMRF is not available to an individual until he or she reaches 75 years, though any income generated by the fund can be drawn down subject to tax. However, the capital in an AMRF can be used by the owner at any time to purchase a pension annuity and the AMRF automatically becomes an ARF with access to the capital sum (subject to taxation) where the specified income test is met at any time before the age of 75. Having been increased substantially in Finance Act 2011 to €18,000 and €119,800, respectively, I reduced the specified income and AMRF "set aside" requirements to their original levels, now applying, in Finance Act 2013. In light of that, I have no plans at this time to make further changes to ARF/AMRF governing rules and requirements. I will, however, give consideration, without prejudice, to any rational proposals for change which may be put to me in the context of the next Budget and Finance Bill.
70. Deputy Michael McGrath asked the Minister for Finance the number of persons in receipt of the single person child carer tax credit for 2014; the way this compares to the number who received the one-parent family tax credit in 2013; and if he will make a statement on the matter. [22049/14]
Amharc ar fhreagraI have previously replied to the Deputy in detail in relation to the Single Person Child Carer Credit on 13 February 2014 in my response to Parliamentary Questions Nos. 94 to 96, inclusive (7453/14, 7454/14 and 7455/15. I am advised by the Revenue Commissioners that for 2013, it is currently estimated that 76,800 individuals were in receipt of the One-Parent Family Tax Credit (i.e., in a position to utilise some or all of the tax credit to reduce their tax liabilities). As the Deputy is aware, the One-Parent Family Tax Credit was replaced with a new Single Person Child Carer Credit (SPCCC) from 1 January 2014. The new credit is targeted such that it is available only to the primary carer of the child. However, a primary claimant can relinquish it to a secondary claimant, an individual with whom the child must reside for not less than 100 days in the tax year. A maximum of one credit is available per claimant, regardless of whether he or she cares for more than one child. This is the same condition that applied to the One-Parent Family Tax Credit.
It is currently estimated that 85,000 individuals have been granted the SPCCC to date in 2014, most granted automatically, as I previously explained. Data on the number of taxpayers who ultimately receive the SPCCC - i.e. who are in a position to utilise some or all of the tax credit to reduce their tax liabilities - will not be available until after the end of the current tax year, so it is not possible to directly compare against the 2013 data for the One-Parent Family Tax Credit at this time.
71. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the annual tax expenditure associated with research and development tax credits in each year from 2010 to 2013; and if he will make a statement on the matter. [22050/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the annual tax expenditure associated with research and development tax credits in each year from 2010 to 2012, the latest year available, is as set out in the following table.
|
Year |
R&D Credit Cost |
|
€m |
|
|
2010 |
224 |
|
2011 |
261 |
|
2012 |
282 |
Data for the tax year 2013 are not yet available as the bulk of tax returns for 2013 are not due until later this year. The Deputy may wish to note that the R&D Tax Credit was comprehensively reviewed in 2013, and the results can be viewed on the Department of Finance website.
72. Deputy Michael McGrath asked the Minister for Finance the number of persons who paid income tax on maternity benefits in 2013; the total yield from taxation of maternity benefits; and if he will make a statement on the matter. [22051/14]
Amharc ar fhreagra73. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the tax expenditure associated with top slicing relief in each year from 2008 to 2013; and if he will make a statement on the matter. [22052/14]
Amharc ar fhreagra77. Deputy Michael McGrath asked the Minister for Finance the number of over 70s who are now subject to the standard rate of universal social charge; the number who are paying the reduced rate; and if he will make a statement on the matter. [22060/14]
Amharc ar fhreagraI propose to take Questions Nos. 72, 73 and 77 together.
I am informed by the Revenue Commissioners that in respect of the year 2013 it is estimated approximately 26,700 maternity benefit claimants paid tax on this benefit, yielding an estimated €14 million in the year. I am further advised by the Revenue Commissioners that the cost of top slicing relief, in each year from 2008 to 2011, is as set out in the following table. Data in respect of the year 2012 are currently being processed and will be available in due course, while data in respect of 2013 are still being collected.
Top Slicing Relief
|
Year |
Number of Claimants |
Estimated Cost €m |
|
2008 |
3,790 |
45 |
|
2009 |
6,110 |
48 |
|
2010 |
4,580 |
37 |
|
2011 |
3,350 |
32 |
Furthermore, I am advised by the Revenue Commissioners that the number of income earners aged 70 and over, earning between €16,017 and €60,000 and who are subject to the reduced rate of Universal Social Charge (USC) is estimated at approximately 56,900. The number of income earners aged 70 years of age and over, earning over €60,000 and who are subject to the standard rate of USC is estimated at approximately 10,300. These figures are estimated by reference to 2014 incomes, from the Revenue tax forecasting model using actual data for the year 2011, adjusted as necessary for income, employment and self-employment trends in the interim. These estimates are provisional and may be revised.
74. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the tax expenditure associated with the tax relief on donations to charitable and other approved bodies in each year from 2008 to 2013; and if he will make a statement on the matter. [22057/14]
Amharc ar fhreagraSection 848A of the Taxes Consolidation Act 1997 (TCA) provides for a scheme of tax relief on donations to approved bodies. The list of approved bodies, which includes eligible charities, bodies approved for education in the arts and eligible primary, secondary and third level institutions, is available on the Revenue website (www.revenue.ie). For donations made pre-2013, the precise arrangements for allowing tax relief on donations varied depending on whether the donor was a PAYE-only taxpayer, a chargeable person subject to self-assessment or a company. For a PAYE-only donor, the relief was given on a "grossed up" basis to the eligible charity or approved body, rather than by way of a separate claim to tax relief by the donor. The claim for refund was made by the eligible charity or approved body in respect of the PAYE-only donor. In the case of a self-assessed donor, that individual claimed the relief and there was no grossing up arrangement. In the case of a company, it would claim a deduction for the donation as if it were a trading expense. For donations made after 1 January 2013, relief for PAYE-only and self-assessed taxpayers is payable to the charity at a blended rate of 31%. The level of tax relief on donations to charities and other approved bodies is as shown in the following table. The figures for 2012 and 2013 are available only at the current time in respect of PAYE-only donors.
|
Year |
Estimated Cost €m |
|
2008 |
52 |
|
2009 |
54 |
|
2010 |
51 |
|
2011 |
47 |
|
2012 |
25 (PAYE-only donors) |
|
2013 |
24 (PAYE-only donors) |
