Written Answers Nos. 179 to 194
179. Deputy Michael Healy-Rae asked the Minister for Finance if he will explain the anomaly whereby persons buying feed for horses do not pay value added tax, while persons in the greyhound industry are obliged to pay value added tax on feed purchased for their greyhounds; and if he will make a statement on the matter. [14807/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances.
Animal foodstuffs can only benefit from the zero rate in Ireland in accordance with the derogation provided by Article 110 of the VAT Directive which permits the retention of the zero rate on products which were liable to VAT at the zero rate on 1 January 1991. Since the 1970s the zero rate of VAT has applied to animal feeding stuff excluding feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets. Therefore, Ireland was permitted under Article 110 to retain the zero rate for such animal feeding stuff. Greyhound feeding stuff was liable to VAT at the standard rate since the introduction of VAT. The Finance Act 1995 introduced a reduced rate, currently 13.5%, for greyhound feeding stuff that is packaged, advertised or held out for sale solely as greyhound feeding stuff, and that is supplied in units of not less than 10 kilograms. The reduced rate is the lowest VAT rate on greyhound feeding stuff that is permitted by the EU VAT Directive.
180. Deputy Brian Walsh asked the Minister for Finance further to Parliamentary Question No. 70 of 26 March 2015 regarding the single person child carer tax credit, his plans to address the difficulties that arise for the secondary claimant when the primary claimant gets married, in order to substitute the income lost for the secondary claimant, who loses the tax credit although the circumstances remain the same for the secondary claimant; and if he will make a statement on the matter. [14808/15]
Amharc ar fhreagraAs set out in my reply to the Deputy's previous question in this matter, where a primary claimant is married, in a civil partnership or cohabiting, he or she is not entitled to the single person child carer credit (SPCCC), on the basis that the relevant child is not, in the main, being cared for by a single person. In such circumstances the primary carer cannot relinquish the credit to a secondary claimant. In addition, a secondary claimant who is married, in a civil partnership or cohabiting, is not entitled to the SPCCC, regardless of the marital status of the primary carer.
It is also worth noting that where a primary claimant qualifies for the SPCCC and chooses to retain it, a secondary claimant would have no access to the credit in any event.
There is no specific tax credit for children in the tax code. Therefore, married or cohabiting couples are unable to avail of any additional credit to assist them in the financial maintenance of their children. In certain cases, such couples also need to maintain two households due to the location of employment, for example.
While I understand the difficulties being experienced by those that lose the SPCCC, I am satisfied that the credit targets limited Exchequer resources to where they are needed most. It is also the case that a person's tax liabilities change from year to year depending on changes in their personal circumstances and whether they continue to meet the qualifying conditions for any tax credits or reliefs that they claim. In this particular case, the qualifying conditions for the SPCCC are no longer being met and I have no plans to bring forward amendments to the credit to allow for such cases.
181. Deputy Michael McGrath asked the Minister for Finance if he will publish the restructuring plan as approved for PermanentTSB; and if he will make a statement on the matter. [14816/15]
Amharc ar fhreagraI would like to welcome the approval by the European Commission of the Permanent TSB Restructuring Plan last week. The approval by the European Commission is an important external validation that the plan contains a credible strategy to return Permanent TSB to profitability and a position where it can support the Irish economy in the years ahead.
The approval of the Restructuring Plan brings to an end a period of uncertainty about what the future shape of the bank would look like which is important for all stakeholders including customers and staff.
The Restructuring Plan includes a set of commitments which Permanent TSB will respect during the restructuring period. Those commitments comprise, among other things, targets on cost reduction and deleverage of non core assets. Moreover, Permanent TSB will operate "market opening measures" to facilitate the market entry of competitors, comprising a "services package" and a "customer mobility package".
Permanent TSB has published details of the key elements of the plan on its website at:-http://otp.investis.com/clients/uk/irish/rns/regulatory-story.aspx?cid=121&newsid=504083 .
The European Commission will publish the Restructuring Plan on their website in due course and my officials will advise you when this has occurred.
182. Deputy Michael McGrath asked the Minister for Finance the amount of interest levied and collected by the Revenue Commissioners in respect of each of the years 2012 to 2014 in respect of late payment of tax liabilities; the way this is broken down across different categories of tax; and if he will make a statement on the matter. [14824/15]
Amharc ar fhreagra183. Deputy Michael McGrath asked the Minister for Finance the amount of penalties levied and collected by the Revenue Commissioners in respect of each of the years 2012 to 2014 in respect of late payment of tax liabilities; the way this is broken down across different categories of tax; and if he will make a statement on the matter. [14825/15]
Amharc ar fhreagraI propose to take Questions Nos. 182 and 183 together.
I am advised by Revenue Commissioners that the data requested by the Deputy is currently being compiled but it has not been possible to finalise the reply in the time available. A reply will issue to the Deputy as soon as possible.
184. Deputy Michael McGrath asked the Minister for Finance the current rate of interest charged by the Revenue Commissioners in respect of late payment of tax liabilities; the way this has changed over the past ten years; his plans to review the rate in view of the current low-interest rate environment generally; and if he will make a statement on the matter. [14826/15]
Amharc ar fhreagraI am advised by Revenue that the current rate of interest charged in respect of late payment of Income Tax, Corporation Tax, Capital Gains Tax, Capital Acquisition Tax, Local Property Tax and Stamp Duty liabilities is 8% per annum (0.0219% per day), while the rate in respect of all other taxes, for example PAYE/PRSI and VAT, is 10% per annum (0.0274% per day).
These rates came into effect on 1 July 2009 as provided for by the Finance Act 2009. The equivalent rates prior to that date were 10% per annum (0.0273% per day) and 12% per annum (0.0322% per day). These statutory charges are designed to compensate the Exchequer for loss of revenue through late payment of tax, to encourage timely payments in future and to ensure equity for those taxpayers who pay on time.
Revenue has confirmed to me that regardless of the statutory basis for the imposition of interest in respect of late payment of tax, it always notifies taxpayers in advance of the first interest charge being imposed that continued late payment will result in the sanction being applied retrospectively unless behaviour changes.
In regard to outstanding tax liabilities generally, I am aware that Revenue's clear preference is always to engage positively with viable taxpayers or businesses experiencing temporary cashflow difficulties rather than deploying the various sanctions at its disposal to secure payment. However this can only happen where there is honest and open engagement by the taxpayer/business in identifying and agreeing a mutually acceptable solution. Where there is no such engagement then Revenue has no choice but to use its debt collection/enforcement options, including charging interest on late payments as appropriate to protect the Exchequer.
Therefore, taking account of Revenue's overall balanced approach to charging interest on late payment of tax, which is both effective and reasonable, I have no plans to revise the rates currently applied at this time.
185. Deputy Mary Lou McDonald asked the Minister for Finance if there are impediments to temporary staff who are employed by outsourced companies on behalf of the Revenue Commissioners when they seek to apply for permanent jobs which are identical to the jobs they been performing on a temporary basis prior to the advertising of the new jobs. [14867/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that there are no impediments to temporary staff who are employed by outsourced companies on behalf of Revenue in relation to applications for jobs in the Revenue Commissioners providing they meet the eligibility criteria of the respective competitions.
The recruitment and appointment of permanent staff in Revenue is regulated by the Commission for Public Service Appointments (CPSA), the statutory body responsible for public service recruitment. All recruitment to permanent positions in Revenue is carried in accordance with the CPSA Codes of Practice and the terms of a recruitment licence granted by the CPSA, which ensure a fair and transparent process. Selection processes are open to all eligible applicants who meet the minimum entry criteria and an applicant's current employment status is not an impediment to applying.
186. Deputy Billy Timmins asked the Minister for Finance his plans to assist home owners in arrears and facing repossession; if he will develop a scheme that permits the home owners to remain in their houses; and if he will make a statement on the matter. [14923/15]
Amharc ar fhreagraAs the Deputy is aware, the Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions.
This has included an extensive suite of interventions designed to address the problem including specific Central Bank targets for the banks through the Mortgage Arrears Resolution Targets (MART), the Code of Conduct on Mortgage Arrears, extensive recasting of the personal insolvency legislation, the provision of advice through Department of Social Protection-led initiatives and the mortgage to rent scheme which is designed to assist borrowers in an unsustainable mortgage position to remain in their homes through the involvement of social housing agencies.
The effective management of the mortgage arrears issue is, however, an area that remains under continuous review. More and concerted action can be undertaken by the banks to assist customers in arrears and, as the Taoiseach has previously announced, my Department is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions.
187. Deputy Billy Timmins asked the Minister for Finance if he will have discussions with the banks to examine the possibility of a small loans policy which would include the option of having repayments taken from source on social protection payments; and if he will make a statement on the matter. [14924/15]
Amharc ar fhreagraIssues relating to Social Protection payments are matters for my colleague the Tánaiste and Minister for Social Protection.
I understand that An Post's Household Budget service allows recipients of certain social welfare payments to pay regular amounts towards various household bills by direct deduction from certain Social Welfare payments, up to a maximum of 25% of the weekly flat rate payment. Currently, bills to a local authority, a housing body, Electric Ireland, Bord Gáis Energy, eircom or Airtricity can be paid in this way. Similar budgeting scheme could be set up using standard SEPA payment accounts with a bank account.
My Department is currently considering the wider issue of the availability of micro-credit to low-income families. Any solution must be cognisant of the households ability to pay.
188. Deputy Billy Timmins asked the Minister for Finance the cost of lowering the top rate of income tax by 1%; and if he will make a statement on the matter. [14926/15]
Amharc ar fhreagra189. Deputy Billy Timmins asked the Minister for Finance the cost of lowering the marginal rate of income tax by 1%; and if he will make a statement on the matter. [14927/15]
Amharc ar fhreagraI propose to take Questions Nos. 188 and 189 together.
I am advised by the Revenue Commissioners that they have published a post-Budget 2015 Ready Reckoner on the Commissioners' new statistics website at:- http://www.revenue.ie/en/about/statistics/index.html.
The Ready Reckoner, is directly accessible from that website at:- http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf, and it provides indicative costings in respect of certain changes to Income Tax rates. The costs of the specific changes requested by the Deputy are available in the "Income Tax and Universal Social Charge" section of the Ready Reckoner.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2015 incomes and are provisional and may be revised.
190. Deputy Billy Timmins asked the Minister for Finance if he will provide a list of the semi-State commercial companies under his control; the policy of a dividend payment to the Exchequer from each company; the dividend paid by each company to the Exchequer for each year from 2000 to 2014; and if he will make a statement on the matter. [14936/15]
Amharc ar fhreagraIn response to the Deputy's question only one of the bodies under the aegis of my Department would be classed as semi-state commercial company. The Strategic Banking Corporation of Ireland is a commercial entity which was established in 2014 and has not paid any dividends to date.
191. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform his views on a matter (details supplied) regarding crèches in the private sector; and if he will make a statement on the matter. [14046/15]
Amharc ar fhreagra192. Deputy Tom Fleming asked the Minister for Public Expenditure and Reform if he will examine a submission (details supplied) and grant a local authority exemption from commercial rates for all premises and facilities in the private child care sector thereby implementing equity to these vital and important child development and education providers; and if he will make a statement on the matter. [14564/15]
Amharc ar fhreagraI propose to take Questions Nos. 191 and 192 together.
The Valuation (Amendment) (No.2) Bill 2012 is expected to complete its passage through the Oireachtas shortly and the exemption of property used for early childhood care and education has been considered at a number of Stages both in the Seanad and in the Dáil.
I was pleased to introduce an amendment at Report Stage in the Seanad which will extend the exemption from rates, that exists for charitable providers, to not-for-profit providers of childcare. In addition, the Valuation Office, which is independent in carrying out its functions, interprets the existing legislation to exempt the premises of those that only provide the Early Childhood Care and Education (or ECCE) scheme.
There were calls during the passage of the Bill to extend the exemptions further but these had to be rejected on the fundamental valuation principle that those that operate with the intention of making a profit must be liable for commercial rates. The Valuation system cannot make an exception on the grounds that one activity is more worthy than another where both are provided with the intention of making a profit. Following the "for profit" principle takes the wider equity of the rates system into account.
The calculation and collection of commercial rates is a matter for individual local authorities to decide having regard to the resources required for funding local services.
193. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the position regarding the planned flood relief scheme in Cork city; if he will provide an estimate of the timeline in the delivery of the project; the level of funding that has been committed to the project; and if he will make a statement on the matter. [14600/15]
Amharc ar fhreagraThe outline design of the Flood Relief Scheme for Cork City and Blackpool is currently being finalised, with formal Public Exhibition of the proposals planned to take place in the third quarter of this year. Subject to a successful Exhibition, and statutory approval by the Minister for Public Expenditure and Reform following an independent review of the Scheme's Environmental Impact Statement, it is hoped to commence works in the first half of 2016. The proposed scheme is substantial in terms of the scale of works required and the likely cost involved, and it is anticipated that the works will take at least 4-5 years to complete.
The cost of the Scheme is currently being assessed in the context of the preparation of a Cost Benefit Analysis to be completed prior to Public Exhibition. The Government is committed to providing the necessary funding to carry out the works.
194. Deputy Michael Ring asked the Minister for Public Expenditure and Reform if he will ascertain from the Office of Public Works when a final report will be made available to a person (details supplied) in County Mayo following the site visit by engineers to inspect the flooding potential to that person's home and road as a result of the closing of an Office of Public Works drain; the redress the home owner has if this property and road floods as a result of this drain closure; and if he will make a statement on the matter. [14702/15]
Amharc ar fhreagraI am advised by the Commissioners of Public Works that the closing of a section of drain has not affected the summer drainage of lands belonging to the landowner mentioned in this question, as these lands were not included as benefitting land in the Corrib Mask Drainage Scheme and a visit by an OPW engineer confirmed this fact. In this particular case the only drainage outfall is a swallow hole which provides only summer drainage.
The Office of Public Works has no record of flooding on the landowner's property or driveway dating back to February 1990 but any evidence from the landowner showing evidence of flooding to the property would be included on the Flood Maps Information database.
