Written Answers Nos. 163-176
163. Deputy Michael McGrath asked the Minister for Finance the amount of deferred tax assets held by the State supported banks; his plans to review how these are treated in the tax system; and if he will make a statement on the matter. [43898/14]
Amharc ar fhreagraAs per the respective bank's interim reports, deferred tax assets at 30 June 2014 were:
- Allied Irish Banks - €4.0bn
- Bank of Ireland - €1.7bn
- Permanent tsb - €0.4bn
I can confirm for the Deputy that I have no current plans to review how deferred tax assets are treated in the tax system.
164. Deputy Gabrielle McFadden asked the Minister for Finance if Revenue Commissioners officers investigating suspected petrol stretching use significant price variances among fuel sellers in a particular geographical area as a criterion for their investigation. [43916/14]
Amharc ar fhreagra165. Deputy Gabrielle McFadden asked the Minister for Finance if insurance companies provide insurance protection to motorists whose car engines have been written off because of petrol stretching. [43917/14]
Amharc ar fhreagraI propose to take Questions Nos. 164 and 165 together.
I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the exchequer by all forms of fuel fraud.
Revenue has, over the recent past, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Revenue investigates all complaints of this kind and fuel samples are taken from filling stations and referred to the State Laboratory for analysis where the investigating officers have reason to suspect excise fraud. Revenue is also working closely with An Garda Síochána in a joint investigation of a concentration of complaints in Co. Mayo.
Conclusive results have been received from the State Laboratory in one case which indicate the contamination of petrol through the presence of kerosene. A second positive result for contamination is currently under investigation. To date, no evidence of fraudulently contaminated petrol has been found in other samples referred for analysis.
Petrol stretching is an offence under section 102 (1A) of the Finance Act 1999 and if Revenue's investigations and the analysis of fuel samples by the State Laboratory indicate the presence of illegal stretching agents in petrol, Revenue will take action and pursue prosecutions against offenders where possible.
I am advised by the Revenue Commissioners that the orientation of a Revenue investigation is determined on the basis of a comprehensive evaluation of risk which takes account of all pertinent information. The charging of prices for fuel that are significantly at variance with the generality of prices in a given area is one of many risk factors that they take into account in deciding on the appropriate focus for their investigative work.
With regard to the question of insurance, I understand from Insurance Ireland that each insurer investigates individual cases in relation to damage done to car engines because of petrol stretching, it will be a matter of whether this financial loss is included or excluded under the terms and conditions of the individual contract. I understand that some insurers are paying out on these claims.
It should be noted that any person who has an unresolved insurance complaint can refer the matter to the Financial Services Ombudsman for investigation and adjudication at www.financialombudsman.ie or 1890 88 20 90.
166. Deputy Seán Kenny asked the Minister for Finance if he will extend the opening hours of the Revenue Commissioners' information office in Dublin 1 from 8.30 a.m. to 4 p.m. to 8.30 a.m. to 5 p.m.; and if he will make a statement on the matter. [43951/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that, as the Deputy has mentioned, the Central Revenue Information Office (CRIO) which is located at O'Connell St/Cathedral St, Dublin 1 is open from 8.30am to 4pm each day. The morning opening time of 8.30am has been in place since 2008, and in response to customer demand trends that saw the majority of customers calling to the office in the early morning. This trend has continued, and the early opening ensures that there is no build up of queues and consequent delays once the doors open.
As with any modern service provider, the Deputy will appreciate that good business practice requires Revenue to constantly review the delivery of services to ensure that they can facilitate peaks and troughs in demand levels, as well as changing customer preferences for the way in which they wish to carry out their transactions with Revenue. Revenue will therefore continue to monitor and evaluate customer demands in relation to the CRIO. The Deputy can be assured that a flexible and responsive approach will be taken in the event of changes in demand levels. However, Revenue is confident that the service that the Office currently provides is meeting the current demand level from customers in the Dublin area who wish to carry out their business on a face-to-face basis with Revenue.
The key objective of the Central Revenue Information Office (CRIO), is the provision of a best-practice, speedy and efficient service for customers. The Office therefore has a range of state-of-the-art systems in place to facilitate a high quality service. For example, the CRIO has:
- a reception area that deals very quickly with callers who have non-transactional enquiries, such as basic information requests. The enquiries of some 66% of callers to the CRIO are dealt with in this area;
- the availability of computers whereby customers can carry out their transactions on a self-service basis. CRIO staff are available to provide guidance on the use of Revenue's self-service systems, PAYE Anytime and the Revenue On-line Service (ROS), if required by customers;
- a modern electronic queue management system that ensures that queuing times are kept to a minimum for those customers who need to proceed to the counter;
- counter facilities that allow many customer transactions to be carried out on-the-spot;
- a dedicated team of experienced expert staff who can deal with the wide range of enquiries received in the Office.
167. Deputy Pearse Doherty asked the Minister for Finance the number of persons who availed of the rent-a-room tax relief scheme in 2013. [44016/14]
Amharc ar fhreagraSection 216A of the Taxes Consolidation Act 1997, provides an exemption from income tax to individuals who let a room or rooms in their sole or main residence, known as rent-a-room relief. The exemption applies where the gross sums receivable in a tax year in respect of all such lettings in a property, including the provision of services supplied in connection with the letting, for example meals or laundry, does not exceed the annual ceiling, which is currently €10,000.
I am informed by the Revenue Commissioners that 4,070 taxpayers availed of the rent a room tax relief in 2012 (the most recent tax year for which data are available).
In the recent Budget I announced an increase in the annual threshold from €10,000 to €12,000 in order to further encourage homeowners to rent out spare rooms in their homes, thereby increasing the supply of rental accommodation.
169. Deputy Lucinda Creighton asked the Minister for Finance if he will indicate the timescale for approval from the European Commission to make the amendments to the employment and investment incentive which was announced in budget 2015. [44036/14]
Amharc ar fhreagraAs the Deputy is aware, my Department carried out a review of the Employment and Investment Incentive (EII) and Seed Capital Scheme (SCS) in advance of this year's Budget. Part of that review included a public consultation process. A report on this review was published on Budget Day and is available on the Budget website.
As a result of the review carried out on the EII and SCS, I decided to make some amendments to the schemes in this year's Budget. The EII is being amended as follows:
- The annual company limit is being increased from €2.5 million to €5 million and the lifetime limit from €10 million to €15 million;
- The minimum holding period for shares is being increased by 1 year to 4 years;
- Medium-sized companies in non-assisted areas will be included;
- Internationally traded financial services where certified by Enterprise Ireland will qualify;
- Hotels, guest houses and self-catering accommodation will remain eligible for a further 3 years; and
- The operating and managing of nursing homes will be included for 3 years.
These changes are subject to approval from the European Commission. An application to the Commission for approval will be made shortly, subject to the passing of the Finance Bill by the Oireachtas. It is not possible to provide a timeframe for receipt of the Commission's approval but my officials will be engaging closely with the Commission to ensure that it can be provided as soon as possible. In the interim, the existing incentive will continue to be available to SMEs and investors.
170. Deputy Pearse Doherty asked the Minister for Finance the expected loss of revenue due to the cut in the imputed distribution rate to 4% in the Finance Bill 2014. [44048/14]
Amharc ar fhreagraI assume the Deputy is referring to the annual rate of imputed distribution applying to Approved Retirement Funds (ARFs) and vested PRSAs which is being reduced next year from 5% to 4% of the value of the assets in the ARF/vested PRSA where the value is €2 million or less and the owner is not aged 70 years or over for the whole of a tax year. Where the owner is aged 70 or over for the whole of a tax year the rate continues at 5%. The existing 6% rate also continues in all cases where the value of the ARF/vested PRSA is greater than €2 million.
I am informed by the Revenue Commissioners that information provided to them in the context of the tax paid on these deemed or imputed distributions does not include information on the value of the ARFs and/or vested PRSAs out of which the distributions are deemed to arise or on the age profile of the beneficial owners of these funds. Moreover, details of tax paid on actual withdrawals from ARFs or vested PRSAs are not separately collated. There is therefore no basis on which a reliable estimate of the impact on the Exchequer of the change mentioned in the question could be compiled.
The deemed or imputed distribution measure which was introduced in Budget and Finance Act 2006 is designed to encourage draw downs from ARFs and vested PRSAs so that they are used, as intended, to fund a stream of income in retirement in the same way as a retirement annuity, for which ARFs and vested PRSAs are supposed to operate as a more flexible alternative. The measure, in itself, is not intended to nor does it give rise to significant tax revenues as it does not apply to actual draw-downs from ARFs and vested PRSAs which are taxed in the normal way. By way of indication, the amounts received by the Revenue Commissioners from tax paid on imputed distributions has averaged about €4 million per annum in the period 2007 to 2013.
I should also say, however, that to the extent that the change in the imputed distribution rate to 4% will result in reduced actual draw downs by affected ARF or vested PRSA owners, that any consequent reduction in tax revenue from this source will be offset to some extent by the increased tax revenue from the beneficial owners of Approved Minimum Retirement Funds (AMRFs) who can avail from next year of the option (also introduced in Finance Bill 2014) to access up to 4% of the value of assets in those funds, subject to tax at the marginal rate.
171. Deputy Sean Fleming asked the Minister for Finance further to Parliamentary Question No. 233 of 21 October 2014 in which the consideration relating to trees growing on the land saleable under wood continues to be regarded as income arising from a trade and not capital gains, if he will indicate whether such income is considered under his proposed change in the income averaging period from three to five years; and if he will make a statement on the matter. [44055/14]
Amharc ar fhreagraThe taxation of clear-felling profits earned from the forestry sector was examined in the recently published Agri-tax review.
Profits or gains from the commercial occupation of woodlands are tax exempt for the purposes of income and corporation tax. Clear-felling forestry profits are subject to the upper tax exemption limits of the High Earners Restrictions rules.
One of the recommendations of the review was that the working group should examine the feasibility of extending income averaging to forestry clear-felling profits.
172. Deputy Olivia Mitchell asked the Minister for Finance if he will provide in tabular form the impact on single, employed PAYE earners on annual incomes of €15,000, €20,000, €25,000, €30,000, €40,000, €60,000, €100,000, €120,000, €150, 000 and €200,000 owing to the income tax and universal social charge changes in 2015 compared to 2014; if he will provide these figures in both cash terms and as a proportion of gross income; and if he will make a statement on the matter. [44056/14]
Amharc ar fhreagraThe data requested by the Deputy are set out in the table below.
|
Gross Income |
Income Tax |
USC |
Net Income |
Annual Benefit |
Change as % of Gross Income |
|||
|
Existing |
Proposed |
Existing |
Proposed |
Existing |
Proposed |
|
||
|
€ |
€ |
€ |
€ |
€ |
€ |
€ |
€ |
% |
|
15,000 |
0 |
0 |
399 |
285 |
14,601 |
14,715 |
115 |
0.8% |
|
20,000 |
700 |
700 |
719 |
545 |
17,781 |
17,955 |
174 |
0.9% |
|
25,000 |
1,700 |
1,700 |
1,069 |
895 |
21,231 |
21,405 |
174 |
0.7% |
|
30,000 |
2,700 |
2,700 |
1,419 |
1,245 |
24,681 |
24,855 |
174 |
0.6% |
|
40,000 |
6,212 |
5,940 |
2,119 |
1,945 |
30,069 |
30,515 |
446 |
1.1% |
|
60,000 |
14,412 |
13,940 |
3,519 |
3,345 |
39,669 |
40,315 |
646 |
1.1% |
|
100,000 |
30,812 |
29,940 |
6,319 |
6,444 |
58,869 |
59,616 |
747 |
0.7% |
|
120,000 |
39,012 |
37,940 |
7,719 |
8,044 |
68,469 |
69,216 |
747 |
0.6% |
|
150,000 |
51,312 |
49,940 |
9,819 |
10,444 |
82,869 |
83,616 |
747 |
0.5% |
|
200,000 |
71,812 |
69,940 |
13,319 |
14,444 |
106,869 |
107,616 |
747 |
0.4% |
It should be noted that the introduction of the 8% USC rate and the increase in the existing 10% USC rate to 11%, provided for in the Budget, are necessary measures to limit the maximum benefit from the package of tax measures to approximately €14 per week for any individual taxpayer. This ensures that those with very high incomes will only benefit to the same extent, as those with more modest incomes, reinforcing the highly progressive nature of the Irish income tax system.
The changes announced in the Budget will ensure that all those currently paying income tax and/or USC will see a reduction in their tax bill in 2015. I propose to continue this reform in future Budgets, subject to the required economic growth and the consequent fiscal space available to the Government.
173. Deputy Terence Flanagan asked the Minister for Finance the number of qualified accountants, economists and other professional staff working in his Department; and if he will make a statement on the matter. [44061/14]
Amharc ar fhreagraThere are 294.02 paid staff within the Department of Finance. Staff in the Department hold qualifications at Certificate, Diploma/Higher Diploma, Degree, Masters, PhD, Other and Professional levels. 'Other' includes but is not limited to Degrees and Masters in other disciplines, such as Engineering, Sciences, Management, IT, Marketing and Arts.
Some members of staff have more than one qualification and some qualifications can fall into one or more categories. In these cases, the first listed subject of the award is taken as the main subject and categorised accordingly. Please see table below with the full list of qualifications held by staff of the Department of Finance.
|
|
Cert |
Diploma/Higher Diploma |
Degree |
Masters |
PhD |
Other |
Prof |
Total |
|
Accounting (47 staff) |
15 |
8 |
12 |
4 |
|
2 |
11 |
52 |
|
Business (51 staff) |
13 |
10 |
25 |
9 |
|
2 |
|
59 |
|
Finance (41 staff) |
13 |
13 |
8 |
8 |
|
6 |
2 |
50 |
|
Legal (34 staff) |
3 |
16 |
17 |
4 |
|
3 |
2 |
45 |
|
Economics (70 staff) |
7 |
8 |
46 |
39 |
1 |
2 |
|
103 |
|
IT (18 staff) |
6 |
12 |
5 |
1 |
|
|
2 |
26 |
|
Other (108 staff) |
41 |
38 |
55 |
19 |
3 |
4 |
2 |
162 |
|
Project Management (22 staff) |
|
22 |
|
|
|
|
|
22 |
|
Taxation Practice and Policy (32 staff) |
|
32 |
|
|
|
|
|
32 |
|
HR (21 staff) |
8 |
6 |
3 |
5 |
|
2 |
1 |
25 |
|
Total Qualifications |
106 |
165 |
171 |
89 |
4 |
21 |
20 |
576 |
174. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 45 of 6 March if EUROSTAT has issued a ruling on the €240 million investment in Irish Water; and the way the proposal will affect the number of shares held by the three shareholders in Irish Water. [44079/14]
Amharc ar fhreagraFor statistical purposes, following discussion with the CSO, the start date for Irish Water was taken to be 1st October 2014. As a result the €240m was not treated as equity and no shares have been issued so there has been no effect on the shareholdings of the existing shareholders.
In general EUROSTAT will look on Irish Water as a whole and not at individual transactions. Once decisions are finalised regarding the structure and financing of Irish Water, a submission will be made to the CSO and EUROSTAT regarding the classification of Irish Water. Until this submission is received no decision on the classification of Irish Water will be made by the CSO or EUROSTAT. It would be expected that a decision will be made by the time of the next EDP reporting date (end March 2015).
175. Deputy Pearse Doherty asked the Minister for Finance the revenue raised at each of the universal social charge rates, that is, at 2%, 4%, 7% and 10%, for each year since the introduction of USC. [44081/14]
Amharc ar fhreagraThe total receipts collected under the Universal Social Charge (USC) are listed in the table below. It is important to take into account that these figures are based on end of year outturns and are on a Revenue net receipts basis. These can differ slightly from Exchequer receipts for reasons of accounting and timing.
|
- |
2011 |
2012 |
2013 |
|
USC Net Receipts (€m) |
3,114 |
3,790 |
3,930 |
The following table provides a breakdown of USC net receipts collected at each rate for the tax year 2012. Figures for 2013 are not yet available. No rate breakdown is available for 2011, as data were not compiled in a manner to enable collation of this information in the first year of operation for the USC.
|
USC Rate |
USC Collected (€m) |
|
2% |
360 |
|
4% |
500 |
|
7% |
2,880 |
|
3% Surcharge |
50 |
176. Deputy Michael McGrath asked the Minister for Finance the value of the State's investments in Allied Irish Banks, Bank of Ireland and Permanent TSB; the percentage ownership of each company that this represents; and if he will make a statement on the matter. [44099/14]
Amharc ar fhreagraThe value of the State's remaining investments in AIB, Bank of Ireland and Permanent TSB is as follows:
|
Bank |
Investment |
Valuation |
Ownership |
Source |
|
Allied Irish Banks |
Equity |
€6.5bn |
99.8% |
NPRF (end 2013) |
|
|
Preference Shares |
€3.5bn |
NPRF (end 2013) |
|
|
|
Contingent capital (CoCo) |
€1.6bn |
Par redemption value |
|
|
Bank of Ireland |
Equity |
c€1.3bn |
c14% |
Irish Stock Exchange - closing price 12th November 2014 |
|
Permanent TSB |
Contingent capital (CoCo) |
€0.4bn |
99.24% |
Par redemption value |
The value shown for Bank of Ireland reflects the most recent share price, whereas the value shown for AIB reflects the NPRF's most recent valuation of their investments which dates back to end December 2013. Given the positive performance of Bank of Ireland shares in the year to date and the strong financial results of AIB itself, I am confident that the valuation or our stake in AIB has risen since the year end.
In addition to the CoCo in Permanent , the State also invested €2.3bn in the bank's equity in July 2011. The State holds this investment at the investment value in the Finance Accounts. No recent independent valuation has been commissioned, nor is such an independent valuation required for the Finance Accounts. However, if an equity capital raise occurs the State will take advice from my officials and third party advisors in relation to valuation and structure. The size of the capital raise and the valuation have not yet been determined.
