Written Answers Nos. 63-70
63. Deputy Brendan Griffin asked the Minister for Finance the reason a person (details supplied) in County Kerry was refused a disabled driver's grant; if the case will be reviewed; and if he will make a statement on the matter. [9473/15]
Amharc ar fhreagraThe legislation governing the Drivers & Passengers with Disabilities Scheme is contained in Section 92 of the Finance Act 1989 (as amended), Section 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994). Full details of the scheme, including the legislative criteria which must be met, are set out in Information Leaflet VRT 7 which is available from the Revenue Commissioners website www.revenue.ie.
The legislation specifies that tax relief under the scheme is restricted to a vehicle which needs to be specially constructed or adapted for use by a person with a disability and which has an engine size of up to 2,000 cc. In the case of a used vehicle already registered in the State, the vehicle must be purchased from an authorised person. An authorised person means a person authorised under Section 136 Finance Act 1992 - for example, a car dealership. The legislation does not provide for any exceptions and the provisions of Statutory Instrument 353/1994 must be fully adhered to.
I am advised by the Revenue Commissioners that the person concerned submitted an application under the Scheme to Revenue on 13 January 2015. This application was refused on 14 January 2015 on two grounds: firstly the engine size of the vehicle exceeded the 2,000 cc limit for a driver with a disability and, secondly, the vehicle (which had already been registered in the State) was not purchased from an authorised person.
On 28 January 2015, the person concerned lodged an appeal with Revenue against this decision under Section 145 of the Finance Act 2001. The appeal was considered by a senior manager within Revenue who was not involved in the original decision. The first stage appeal was finalised on 13 February 2015 and the initial decision to refuse the tax relief was upheld.
The person concerned has the option to lodge a further appeal and to have his case heard by the Appeal Commissioners. The application for a second stage appeal under Section 146 of the Finance Act 2001 must be lodged with the Appeal Commissioners Office within 30 days from the date of notification of the refusal of the first stage appeal (i.e. within 30 days of 13 February 2015 in this case).
64. Deputy Thomas P. Broughan asked the Minister for Finance his plans to investigate the serious tax evasion by a number of citizens who held accounts in the Swiss HSBC thereby evading their tax responsibilities; the number of prosecutions that have been made for tax evasion yearly since 2009. [9537/15]
Amharc ar fhreagraDetails of the investigation undertaken by the Revenue Commissioners in relation to accounts held with HSBC Bank, Geneva were given in my reply to the Deputy's Questions Nos. 79 to 81, inclusive, of 25 February 2015. This investigation has led to three prosecutions and convictions for tax-related offences, and a further case remains under investigation.
The numbers of convictions for offences related to matters falling within the remit of the Revenue Commissioners, in each year since 2009, are set out in the following table.
|
Nature of Offence |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
Serious Tax/Duty Evasion |
15 |
13 |
30 |
50 |
35 |
27 |
|
Other tax cases |
9 |
4 |
16 |
29 |
5 |
12 |
|
Cigarette Smuggling |
140 |
97 |
95 |
50 |
46 |
53 |
|
Cigarette Selling |
19 |
40 |
53 |
60 |
41 |
49 |
|
Alcohol Smuggling |
11 |
26 |
7 |
4 |
2 |
2 |
|
Counterfeit Spirits |
8 |
6 |
2 |
7 |
5 |
7 |
|
Commercial Oil |
6 |
4 |
2 |
1 |
2 |
4 |
|
Marked Mineral Oil |
246 |
233 |
224 |
211 |
228 |
283 |
|
Vehicle Registration Tax |
18 |
18 |
20 |
21 |
8 |
13 |
|
Excise Licences |
87 |
83 |
94 |
155 |
112 |
81 |
|
Obstruction |
- |
1 |
- |
- |
- |
- |
|
Other Smuggling |
- |
1 |
- |
- |
- |
- |
|
Non-filing of Returns |
1,087 |
1,223 |
1,224 |
1,049 |
811 |
696 |
|
Total |
1,646 |
1,749 |
1,767 |
1,637 |
1,295 |
1,227 |
65. Deputy Timmy Dooley asked the Minister for Finance if hosts of short-term tourist accommodation using online exchange services (details supplied) to rent tourist accommodation are monitored by the relevant authorities to ensure they are tax compliant; and if he will make a statement on the matter. [9553/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that where a person has profit income from the letting of accommodation to, or the hosting of, tourists, the profit is regarded as taxable income which must be included in that person's annual tax return.
Revenue's compliance programmes cover a wide variety of business sectors including the hotel, bed & breakfast and rental sector. Revenue also actively monitor and assess the tax compliance risks from new and emerging business models that are facilitated by the internet and other technologies.
I am further informed by the Revenue Commissioners that they take a risk-based approach to targeting and tackling non-compliance. In that context, their Risk Evaluation Analysis and Profiling (REAP) system is used to cross-check and interrogate over 50 separate data sources to assesses tax compliance risks and identify cases requiring a compliance intervention. In 2013, Revenue gained access to a significant new third party data source comprising returns from merchant acquirers in respect of payments made to merchants for credit and debit card sales (a merchant acquirer is a bank or financial institution that processes credit and debit card payments and transactions on behalf of a merchant). This data is particularly relevant in assisting the Revenue Commissioners to identify on-line traders.
66. Deputy Paul Murphy asked the Minister for Finance if the Revenue monitoring agency for relevant contract tax C2 holders is still in place; if not, when it was abolished; and when the deduction form RCT1 was discontinued. [9433/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that, with effect from January 2012, the paper based Relevant Contracts Tax system was replaced by an electronic Relevant Contracts Tax (eRCT) system. Interactions between principal contractors and Revenue as regards Relevant Contracts Tax are now by way of electronic means. Under the eRCT system, a principal contractor is obliged to notify Revenue electronically when he/she enters into a relevant contract with a subcontractor and whenever he/she makes payments under that relevant contract.
Under the eRCT system the paper based C2 Certificate was discontinued. Consequently, the term C2 holder is no longer valid. Instead, a sub-contractor is allocated a deduction rate - 0%, 20% or 35% - at which tax is to be deducted from payments made by a principal contractor to that sub-contractor under a contract in the construction, meat processing and forestry sectors. The rate of tax deduction to apply depends on the sub-contractor's tax compliance record. A person who previously held a C2 Certificate under the old regime is likely to be allocated a 0% tax deduction rate in the new regime.
I am advised by Revenue that the then National C2 Monitoring Group, made up of compliance staff from each of the four Revenue Regions, was established under Revenue's 2006 Construction Industry Plan. Its role was to monitor suspect cases, share intelligence and take appropriate action to deal with abuses of the RCT system. While this Group no longer exists, monitoring abuses of the tax and duty systems, including the eRCT system, is a key element of Revenue's day to day compliance programmes.
Revenue's policing of the RCT regime has been significantly improved through a number of risk mitigation initiatives. Firstly, the old RCT regime provided for the making of RCT repayments to sub-contractors on foot of a claim made by the sub-contractor. This particular feature of the old regime was open to abuse and consequently the new RCT regime no longer provides for the making of repayments except in very exceptional cases. Secondly, a VAT Reverse Charge mechanism introduced in 2008 places the responsibility for accounting for VAT on construction contracts on the principal contractor, thereby removing the risk of VAT non-compliance by the sub-contractor.
I am advised by Revenue that it commits significant resources to compliance interventions in the construction sector. There were over 14,000 tax compliance risk interventions in the Construction Sector in 2013 and over 15,000 such interventions in 2014. In addition, the Revenue Commissioners work closely with the Department of Social Protection and the National Employment Rights Agency including conducting joint operations in the construction sector with both bodies.
Regarding the Form RCT1, I am advised that this was not a tax deduction form but rather was a paper based notification by principal contractors to Revenue of certain details regarding the nature of the contract arrangements they had with each sub-contractor. These details are now supplied to Revenue through the eRCT system.
67. Deputy Dara Calleary asked the Minister for Finance if he will provide an update on a VAT rebate application in respect of a person (details supplied) in County Mayo. [9436/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that there are no outstanding VAT repayments waiting to be processed for the person concerned. All VAT repayments due to the person concerned have either already been repaid or otherwise offset against his other tax liabilities.
If the person concerned wishes to discuss any particular VAT claim or clarify any aspect of any of the claims already repaid or offset, he should contact his local Revenue Office based at Michael Davitt House, Breaffy Road, Castlebar, Co. Mayo. (Tel: 094 9037000).
68. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide details of all properties rented by his Department; the annual cost of the leases; the duration of the leases; and the capacity and occupancy of each premises as of 31 January 2015. [9458/15]
Amharc ar fhreagraIn response to the Deputy's question my Department is not involved in any direct rental of buildings. The Department's accommodation needs are provided for by the Office of Public Works via the Property Management Services Section. Details of rental costs associated with buildings occupied by the Department may be obtained directly from the Office of Public Works.
69. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the revenue accrued to the Exchequer via the universal social charge in each year since its introduction. [9498/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the information on receipts for Universal Social Charge (USC) requested by the Deputy is available on Revenue's statistics website at: http://www.revenue.ie/en/about/statistics/index.html, under the "Revenue Net Receipts by Taxhead" on an annual basis to 2013.
The figures are reproduced in the table below with a provisional figure for 2014 included.
|
Net Receipts |
2011 €m |
2012 €m |
2013 €m |
2014* €m |
|
Universal Social Charge |
3,114 |
3,790 |
3,930 |
3,647 |
*Provisional
70. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the tax foregone by the Exchequer as a result of taxation deductions in respect of private health insurance in each year since 2007. [9500/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia from 2005 to 2014 are set out in the following table.
The estimates do not include costs to the Exchequer of age-related tax relief at source, which was established by the Health Insurance (Miscellaneous Provisions) Act 2009. Those costs are shown separately in the final column of the table. The cost of the age-related tax credit for years 2009 to 2012 inclusive is offset by a stamp duty on health insurance policies. The age-related tax credit and stamp duty were part of an interim scheme of risk equalisation, which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be revenue neutral over its duration. This interim scheme expired on 31 December 2012 and was replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the Health Insurance (Amendment) Act 2012. Risk equalisation credits are not given through the tax system effective from 1 January 2013.
|
Tax Year |
Estimated Cost €m (excluding cost of Age Related Tax Credit) |
Cost of Age-Related Tax Credit €m |
|
2005 |
230 |
Not Applicable |
|
2006 |
261 |
Not Applicable |
|
2007 |
300 |
Not Applicable |
|
2008 |
321 |
Not Applicable |
|
2009 |
374 |
216 |
|
2010 |
390 |
308 |
|
2011 |
404 |
333 |
|
2012 |
448 |
436 |
|
2013 |
473 |
103 |
|
2014 (provisional) |
354 |
30 |
(Figures shown in table are rounded to the nearest million).
