Written Answers Nos. 273-292
273. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection if a fuel allowance will be granted in respect of a person (details supplied) in County Dublin in view of the circumstances outlined; and if she will make a statement on the matter. [22478/15]
Amharc ar fhreagraIn general, the fuel allowance is payable to persons in receipt of long-term payments who satisfy the qualifying conditions. Illness benefit is classed as being a short-term payment and the fuel allowance is not payable with it.
The person concerned has been in receipt of illness benefit since 20/03/14. As he is not in receipt of a payment that is classed as a long-term payment, he does not have an entitlement to the fuel allowance.
If he is unable to meet his needs or those of his household, he may be entitled to assistance under the supplementary welfare allowance scheme. Application may be made to the community welfare services at the local Health Centre or Intreo Office of the Department.
274. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection if there has been a change to the long-standing custom and practice whereby the social welfare appeals system would be exhausted before the State would initiate legal proceedings against claimants suspected of fraudulent behaviour. [22491/15]
Amharc ar fhreagraThe Department's policy on social welfare appeals and the progress of cases being considered for prosecution has not been changed.
Where a case presented for prosecution has an appeal pending, the State Solicitor’s office is advised of the appeal. If the outcome of the appeal is not known before the first hearing, the State Solicitor is instructed by the Department to seek an adjournment.
Where there is evidence of social welfare fraud, the Department is obliged to progress the case to court within a specific timeframe. Otherwise the case could become statute barred or the Department could be accused of delayed justice.
275. Deputy David Stanton asked the Tánaiste and Minister for Social Protection if her attention has been drawn to the United Nations Children's Fund report, Innocenti Report Card 12 (details supplied); the responsibility of her Department in addressing the issues raised, particularly the reduction of child poverty; her plans to address this; and if she will make a statement on the matter. [22493/15]
Amharc ar fhreagraThe indicator of poverty used in the UNICEF report is misleading and does not capture the actual level of child poverty in Ireland using official indicators.
The official indicator of poverty in Ireland is consistent poverty. The rate of consistent poverty for children in 2013 was 11.7 per cent, based on official statistics from the Central Statistics Office. This compares with an average of 8.7 per cent for the years preceding the crisis (2005-2008).
Using the at-risk-of-poverty measure, 17.9 per cent of children were in poverty in 2013, which is less than the average figure of 20.8 per cent in the years preceding the crisis. Using this indicator, Ireland is ranked 9th best of the 28 EU member states, well below the average. Furthermore, through social transfers, the at-risk-of-poverty rate for children is reduced by 60 per cent. Ireland is the third best performing of the 28 EU member states in this regard.
The Government has already adopted a key recommendation of the UNICEF report - to make an explicit commitment to end child poverty - by setting a child poverty target in April 2014, which is to lift 70,000 children out of poverty by 2020. Under Better Outcomes, Better Futures, the Government is implementing a multi-dimensional approach to child poverty.
The Department of Social Protection helps to prevent child poverty by providing a comprehensive range of income supports for families, amounting to €3 billion in 2014. In Budget 2015, the Government committed a further €96 million for children, including an increase of €5 per month in child benefit.
In order to break the cycle of child poverty, the Government is investing in prevention and early intervention services targeted at disadvantaged children through the Area Based Childhood programme and the DEIS programme.
Finally, through Pathways to Work and the Action Plan on Jobs, the Government is helping families to get back into work, supported by in-work benefits such as the family income supplement and new back to work family dividend.
276. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection the cost of eliminating the pay related social insurance step effect, as it impacts on employees. [22514/15]
Amharc ar fhreagraEmployee PRSI is not charged where weekly earnings are €352 or less. Where weekly earnings exceed €352, employees become liable to pay PRSI which is charged at the rate of 4% on all earnings. The fact that PRSI is charged on all income once the €352 threshold is exceeded causes what is referred to as the “step effect”.
The Department is currently examining the impact of this step effect and possible means of addressing its impact on employees. This work is ongoing and it is not possible, at this stage to quantify the costs associated. Any changes to PRSI would have to be considered in a budgetary context.
277. Deputy Niall Collins asked the Tánaiste and Minister for Social Protection the number of commissions of investigation established under the aegis of her Department, in tabular form, since the Commissions of Investigation Act 2004 came into effect; and if she will make a statement on the matter. [22758/15]
Amharc ar fhreagra278. Deputy Niall Collins asked the Tánaiste and Minister for Social Protection the number of commissions of investigation under the aegis of her Department which have yet to complete and publish their reports; if she will provide a timeframe for same; and if she will make a statement on the matter. [22769/15]
Amharc ar fhreagra279. Deputy Niall Collins asked the Tánaiste and Minister for Social Protection the number of commissions of investigation established under the aegis of her Department during the term of the current Dáil Éireann; and if she will make a statement on the matter. [22780/15]
Amharc ar fhreagraI propose to take Questions Nos. 277 to 279, inclusive, together.
No commissions of investigations have been established by my Department since the Commissions of Investigation Act, 2004, came into effect or during the term of the current Government. Accordingly, the completion and publishing of reports of such investigations does not arise.
280. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding cohabiting couples who own a shared property; and if he will make a statement on the matter. [21350/15]
Amharc ar fhreagraThe details supplied refer to the tax situation for unmarried cohabiting couples when one partner inherits from the other.
I am informed by the Revenue Commissioners that spouses or civil partners who inherit property from each other are exempted from the payment of inheritance tax on that inheritance. Other cohabiting couples are, however, liable to inheritance tax where the surviving partner inherits property from the deceased partner. The relationship between the deceased person and the person who inherits the property determines the maximum life-time aggregate tax-free threshold below which inheritance tax is not charged. There are, in all, three separate relationship thresholds (set out below). The value of each of a person's inheritances since 5 December 1991 is aggregated and inheritance tax is charged, where the aggregate value exceeds the relevant threshold, on any amount that exceeds the threshold.
Group A: tax free threshold €225,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the deceased person. This threshold also applies to parents where they inherit an absolute interest in a property from a child.
Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor (for example, a grandparent) or lineal descendant of the deceased person.
Group C: tax free threshold €15,075 applies in all other cases, for example, from uncle to niece, between in-laws and persons with no relationship to each other.
Cohabiting couples can, however, in certain circumstances be exempt from the payment of inheritance tax in respect of the inheritance of a dwelling house. The main conditions attaching to this exemption are that the person who inherits the dwelling house must have lived there for a minimum of three years prior to the inheritance and must not have had an interest in any other dwelling house. Also, with the exception of persons who are aged 55 years or over at the date of the inheritance, he or she must continue to live in that dwelling house, as his or her only or main residence, for a period of six years commencing on the date of the inheritance. This exemption ensures that what may be the family home for many people will not be liable to inheritance tax when it is the subject of an inheritance.
Given the existence of this provision I do not consider it necessary at this time to modify the tax legislation with regard to unmarried cohabiting couples.
281. Deputy Pearse Doherty asked the Minister for Finance the status of negotiations at European Union level to renew the Philip Morris International agreement; Ireland's attitudes to the possibility of renewing and extending the agreement; and if he will make a statement on the matter. [21820/15]
Amharc ar fhreagra314. Deputy Pearse Doherty asked the Minister for Finance the revenue accruing to the State each year since the signing of the Philip Morris International agreement; the purpose for which this revenue was used; the way it was accounted for; and if he will make a statement on the matter. [21815/15]
Amharc ar fhreagra315. Deputy Pearse Doherty asked the Minister for Finance the number of cigarette seizures that number over 450 million cigarettes in each of the past five years; the number of these seizures that consisted of genuine Philip Morris cigarettes. [21816/15]
Amharc ar fhreagra316. Deputy Pearse Doherty asked the Minister for Finance the total number of Philip Morris cigarettes seized in each of the past five years; and the numbers in each seizure. [21817/15]
Amharc ar fhreagra317. Deputy Pearse Doherty asked the Minister for Finance if his officials have met with Philip Morris to discuss a renegotiation or extension of the Phillip Morris International agreement; if these meetings were bilateral or in the context of European Union negotiations; the date and place of all such meetings; and if he will report on the issues discussed at each meeting. [21818/15]
Amharc ar fhreagraI propose to take Questions Nos. 281 and 314 to 317, inclusive, together.
I am advised by the Revenue Commissioners that the quantities of cigarettes seized in Ireland in each of the past five years that were branded as Phillip Morris products, and the numbers of seizures in each of those years involving such products, are as set out in the following table.
|
Year |
No. of Seizures |
Quantity of Cigarettes Seized (million) |
|
2010 |
5,065 |
57.4m |
|
2011 |
6,739 |
27.2m |
|
2012 |
6,109 |
10.4m |
|
2013 |
5,117 |
8.2m |
|
2014 |
5,627 |
7.0m |
In view of the large number of seizures, it would not be practicable to give the quantity of products involved in each individual seizure.
Where cigarettes seized are branded as the product of a recognised tobacco company and the quantity involved is 50,000 or more, samples are sent for analysis to determine whether or not the product is counterfeit. Details of any such seizures carrying Philip Morris branding which were found on analysis to be composed of genuine product are being compiled and will be forwarded to the Deputy.
The Anti-Contraband and Anti-Counterfeit Agreement between Philip Morris International, the EU and its Member States provides for payments to Member States in defined instances of the seizure of more than 50,000 contraband Philip Morris cigarettes, and stipulates a "Baseline Amount" of 450 million cigarettes, seized in a calendar year in EU Member States as a whole, as a factor in determining the quantum of such payments.
Ireland became a party to the Agreement in 2005 and has received two payments, of €18,101.22 and €68,386.07, in 2006 and 2012 respectively, in respect of seizures of Philip Morris products. The payments are made to the Revenue Commissioners by the European Commission and are transferred to the Exchequer as Exchequer extra receipts.
I am advised by the Revenue Commissioners that they have had no meetings with Philip Morris International to discuss a renegotiation or extension of the Anti-Contraband and Anti-Counterfeit Agreement. The Agreement dates from 2004 and has a term of 12 years.
I understand that the European Commission has had exploratory talks with Philip Morris International but that no decision has been made as yet on whether or not to enter into formal negotiations on a new agreement. No determination will be made as to whether to renew or extend the agreement until the European Commission reports back to Member States on the nature and content of their discussions with Philip Morris International.
282. Deputy Finian McGrath asked the Minister for Finance his views on correspondence regarding private pension funds (details supplied); and if he will make a statement on the matter. [21851/15]
Amharc ar fhreagraThe details supplied refer briefly to public sector pensions. I understand from my colleague the Minister for Public Expenditure and Reform who has responsibility for that matter that he intends to bring proposals to Government shortly regarding the public sector pension reductions made in recent years.
The details supplied primarily refer to the Pension Fund Levies which I introduced in 2011 and 2014 on the assets of private pension funds. I announced in my Budget 2014 speech that the 0.6% levy introduced in 2011 to fund the Jobs Initiative would be abolished from 31 December 2014. I did, however, introduce an additional levy on pension funds at 0.15% for 2014 and 2015. I did this to, among other things, continue to help fund the Jobs Initiative. I confirmed in my Budget 2015 speech that the additional 0.15% levy will expire at the end of 2015.
The chargeable persons for the pension fund levy are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. The payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled, where they decide to do so, to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees to decide whether and how the levy should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible. However, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy.
The value of the funds raised by way of the levy have been used to protect and create jobs and this has helped to create the improving financial and economic position of the State. Taxpayers to whom the impact of the levy may have been passed on by the chargeable persons for the levy will benefit from the changes which I began in Budget 2015 and which will continue in future Budgets to reduce the tax burden on low and middle income earners.
283. Deputy Joe Costello asked the Minister for Finance the steps being taken to deal with the illegal sale of tobacco; his plans to strengthen the legislation dealing with its sale; and if he will make a statement on the matter. [22298/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that combating the illegal tobacco trade is, and will continue to be, a high priority for Revenue. Their work against this illegal activity includes a range of measures designed to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those responsible. This multifaceted strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources at points of importation and within the country.
Interception of illicit tobacco products is achieved by Revenue through a combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages. Revenue officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
Revenue co-operates extensively with An Garda Síochána in combating the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland through a cross-border group on tobacco enforcement to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, co-operation takes place with other revenue administrations and with the European Anti-Fraud Office (OLAF) in the ongoing programmes at international level to tackle the illicit trade.
Revenue's action against the illegal trade has resulted in significant seizures of illicit products, and in convictions of persons involved in the smuggling or sale of illicit products. In 2014 53.4 million cigarettes and 9,824 kilogrammes of tobacco were seized, and seizures this year, to the end of April, amounted to 22.1 million cigarettes and 634 kilograms of tobacco. There were 53 summary convictions and 4 convictions on indictment for tobacco smuggling, and 49 summary convictions and 5 convictions on indictment for the selling of illicit tobacco products, in 2014.
A strong legislative framework is in place to combat the illegal tobacco trade. It is an offence to hold, produce, deliver or deal in untaxed tobacco products and to sell unstamped tobacco products. A court may impose heavy penalties for these offences and the tobacco products concerned in the offence are liable to forfeiture. On conviction following summary prosecution, a court may impose a fine of €5,000, or a term of imprisonment not exceeding 12 months, or both a fine and imprisonment. On conviction following prosecution on indictment, the court may impose a fine of up to €126,970, or a term of imprisonment not exceeding 5 years, or both a fine and imprisonment. A higher fine may be imposed where the value of smuggled tobacco products (inclusive of any tax or duty payable on them) is greater than €250,000; in such cases the court may impose a fine of an amount not exceeding three times their value.
I have introduced a number of legislative measures in recent years to assist Revenue in dealing with tobacco smuggling and illegal tobacco sales. Measures in the Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excisable products. In the Finance Act 2013, I introduced new offence and forfeiture measures relating to the illicit production of tobacco, including offences of keeping materials and equipment for the purposes of illicit tobacco production, and provision for forfeiture of any equipment, materials, or unmanufactured tobacco used for illicit production. In the Finance (No. 2) Act 2013, I strengthened the obligation of a person suspected of dealing in unstamped tobacco products to provide information to a Revenue Officer or a Garda and to present any tobacco products concerned for examination. The measure also allows the Officer or Garda to search any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
I am satisfied that the current legislative framework provides an effective basis for action by Revenue against the illegal tobacco trade and I will support any proposals for additional measures that are shown to be of assistance to Revenue in this area.
284. Deputy Colm Keaveney asked the Minister for Finance if he will confirm that minutes of meetings between the Irish Bank Resolution Corporation and his Department in August 2012 record that the restructuring of a company's loans (details supplied) were difficult, as the shareholders were not communicating; if he is satisfied that the eventual write-down of the loans was conducted prudentially; if he ever took part in any meeting, conversation, or discussion, verbal, written, or by e-mail, regarding the write-down of the company's loans; and, if so, if he will provide the details of these; and if he will make a statement on the matter. [21234/15]
Amharc ar fhreagraI can confirm that the minutes of a meeting between IBRC and officials from my Department which took place on 13 August 2012 record that the issue of restructuring of the loans associated with the company referred to in the question was "particularly difficult as IBRC would like to do restructuring but are unable to at present as the shareholders are not communicating".
The eventual sale of the loans associated with the company referred to in the question was a matter for the Special Liquidators of IBRC. I was not party to these discussions.
Under both the IBRC Act and the Companies Act, the Special Liquidators are charged with maximising the value of the assets for the creditors through their liquidation. In the context of a sale of a loan by the Special Liquidators, while the proceeds of a loan sale may not equate to the amount outstanding under the loan agreement, there is no write-down of the debt owed by the borrower.
To ensure the Special Liquidators maximised value to the creditors of IBRC, in open and transparent sales processes, the Special Liquidators have sold the relevant loan assets, including the loans associated with the company referred to in the question, for an amount no less than the independent valuation obtained. In doing so, the gross amount outstanding on the loan remains due and payable in full by the borrower to the new owner of the relevant loan assets in line with the contractual provisions of the original loan contract.
Any subsequent change in the terms of the loan contract would be a matter for the new owner and the borrower.
285. Deputy Lucinda Creighton asked the Minister for Finance further to the appearance of a person (details supplied) at the Public Accounts Committee on 14 May 2015, where the person indicated that a number of changes to procedures relating to insider trading, the market abuse directive and transferring powers from the Irish Stock Exchange to the Central Bank of Ireland were expected in the next 12 to 18 months; if he will indicate the new legislation or changes the person referred to; the way these changes are envisaged; the consultation on these proposed changes that have taken place to date; the reason that bringing these matters under the ambit of the Central Bank of Ireland, rather than under the ambit of the Irish Stock Exchange, is more appropriate than the current arrangements; and if he will make a statement on the matter. [21237/15]
Amharc ar fhreagraThe EU-wide market abuse regime was recently revised by Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse ('Market Abuse Regulation') and Directive 2014/57/EU of the European Parliament and of the Council of 16 April 2014 on criminal sanctions for market abuse ('Market Abuse Directive'). The Market Abuse Regulation and Directive will apply in all EU Member States from 3 July 2016.
As is usual a range of industry and regulatory interests were consulted during the EU level negotiations. My Department is currently working on the precise implementation and transposition measures of these two instruments. The Regulation by its nature will be directly applicable and I understand that any national discretions arising from the directive are likely to be minimal.
The current national and EU market abuse regimes split oversight functions between the Central Bank, the Office of the Director of Corporate Enforcement (ODCE) and the Irish Stock Exchange. Article 22 of the Market Abuse Regulation states "that each Member State shall designate a single administrative competent authority for the purpose of this Regulation". The single national competent authority under the forthcoming regime is likely to be the Central Bank of Ireland, which is already the competent authority for the purposes of the first Market Abuse Directive (Directive 2003/6/EC) and the corresponding Market Abuse (Directive 2003/6/EC) Regulations 2005 (S.I. No. 342 of 2005).
286. Deputy Lucinda Creighton asked the Minister for Finance further to the appearance of a person (details supplied) at the Committee of Public Accounts on 14 May 2015, where the person indicated that they had the fee rates set by the contract with the special liquidator for conducting the review into the Irish Bank Resolution Corporation transactions post-nationalisation of the bank, if he will provide an estimate of those fees; and a breakdown of those fees, in tabular form, as promised by this person at the committee hearing, namely, the hourly rates, the charge-out rates for the different categories of staff, the numbers working on the job, and the cost per week; and if he will make a statement on the matter. [21238/15]
Amharc ar fhreagraAs announced last week, the transaction review which the Special Liquidators were directed to conduct has been replaced with a Commission of Investigation, therefore the question posed by the Deputy is no longer applicable.
However, I can confirm that the hourly rates agreed with the Special Liquidators for the liquidation of IBRC are:
|
Grade |
Rate Per Hour (excluding VAT) |
|
Partner |
€295 |
|
Director |
€260 |
|
Associate Director |
€220 |
|
Manager |
€190 |
|
Supervisor |
€165 |
|
Senior Accountant |
€165 |
|
Semi-senior accountant |
€165 |
|
Junior accountant |
€95 |
These rates are based on NAMA negotiated rates for the relevant services. These rates were put in place following a competitive tender conducted by NAMA.
As the review by the Special Liquidator is now being replaced with a Commission of Investigation, it will be for the appointed judge to determine the type and level of resource required to achieve the aims of the investigation.
287. Deputy Lucinda Creighton asked the Minister for Finance further to a person's statement at the Committee of Public Accounts on 14 May 2015, that there would have been an initial scoping by the special liquidator to get a general sense of what was involved in the inquiry, when the special liquidator was requested by him or his Department to conduct this initial scoping; if he will confirm what this initial scoping entailed; the number of persons involved; the direction that was provided to the special liquidator for this initial scoping; and if he will make a statement on the matter. [21239/15]
Amharc ar fhreagra290. Deputy Lucinda Creighton asked the Minister for Finance further to a person's statement (details supplied) at the Committee of Public Accounts on 14 May 2015, when the scoping of the size of the special liquidator investigation shall be completed; and if he will make a statement on the matter. [21242/15]
Amharc ar fhreagra291. Deputy Lucinda Creighton asked the Minister for Finance further to a person's statement that the special liquidator may use outside help in reviewing individual transactions identified as being within the scope, the firms that are being considered by the special liquidator; the tendering process that shall be adopted in identifying those firms; and if he will make a statement on the matter. [21243/15]
Amharc ar fhreagraI propose to take Questions Nos. 287, 290 and 291 together.
The announcement of the transaction review took place on 23rd April 2015. Prior to this date, and after I and my officials decided that the Special Liquidators were in the best position to undertake the review, discussions took place between my officials and the Special Liquidators around the scope of the review.
During these discussions, the capital loss threshold of the review was discussed with the Special Liquidators, who were asked to assist in an initial scoping exercise to evaluate an appropriate threshold with reference to capital loss that would fulfil the purposes of the transaction review.
There was no direction issued to the Special Liquidators to assist in this initial scoping.
Subsequent to the announcement of the transaction review the Special Liquidators would have continued their scoping and conflict management work in conjunction with Judge Iarlaith O Neill.
As the Deputy is aware, the transaction review is no longer taking place and has been replaced by a Commission of Investigation. The scope, sizing and determination of any resources required to conduct the Investigation will be determined by the appointed judge appointed in the context of the terms of reference for the Investigation as approved pursuant to the provisions set out in the Commissions of Investigation Act 2004.
288. Deputy Lucinda Creighton asked the Minister for Finance if it is the expectation of the Special Liquidator that unsecured senior and subordinated bondholders will be repaid from the surplus of the Irish Bank Resolution Corporation asset disposal; if he expects this to occur at some stage, now or in the future, when litigation matters are wound up; and if he will make a statement on the matter. [21240/15]
Amharc ar fhreagra289. Deputy Lucinda Creighton asked the Minister for Finance further to a person's statement at the Public Accounts Committee on 14 May 2015, the total number of creditors who applied before the end of March 2015; the total number of United States of America creditors who have applied for a date in seeking distribution to them of the €1.85 billion; the total nominal amount of moneys sought by senior and subordinated bondholders; the total single entity holders of senior or subordinated bonds; if any of the surplus shall be distributed before the settlement of the outstanding cases; and if he will make a statement on the matter. [21241/15]
Amharc ar fhreagraI propose to take Questions Nos. 288 and 289 together.
As the Special Liquidators maximise the proceeds of the liquidation, it is important that they have a comprehensive view of the creditors who ultimately may be entitled to these proceeds. To this end, the Special Liquidators have published advertisements and have written to known creditors in order to finalise their claims in the liquidation. Creditors in the UK and Ireland had until 31 March 2015 to submit their claims and those creditors in the US had until 31 May 2015.
There were c. 2,700 claims made by creditors by 31 May 2015. The adjudication of all creditor claims is ongoing. Once the creditor adjudication process is complete, the Special Liquidators will write to each claimant to confirm whether their claim(s) have been admitted as valid claims against Irish Bank Resolution Corporation Limited (in Special Liquidation).
The Special Liquidators are unable to comment at this stage both on the level of proceeds that will ultimately be generated from the liquidation and on the level of valid creditor claims that will ultimately be received in respect of the liquidation. It is the balance between the proceeds generated and level of valid claims that will ultimately determine the dividend to which each creditor may be entitled.
The ultimate level of dividend paid, if any, to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known.
For the payment of proceeds from the liquidation, unsecured creditors will rank in priority to the holders of subordinated debt. The priority for the distribution of assets under the Companies Acts is generally:
- Costs and expenses of the ongoing liquidation (these claims are certain to be paid in full);
- Preferential creditors, including certain taxes and employee and pension claims arising prior to the date of liquidation (these claims are certain to be paid in full);
- Amounts owing to NAMA under the Facility Deed acquired from the Central Bank which were secured by a floating charge over the banks assets (these claims have been fully repaid and the floating charge has been released);
- Unsecured creditors, including:
- Debts owing to the Minister/NTMA under ELG
- Debts owing to the Deposit Guarantee Scheme
- Unguaranteed debt/depositors
- Unknown, including:
- Local authority development bonds
- Suppliers/other "normal" unsecured creditors
- Employees that are not preferential creditors
- Contingent creditors and other potential costs principally relating to litigation, etc.
- Subordinated creditors
- Members of the company - the Minister currently holds 100% of all shares and preference shares in the company.
The Special Liquidators hope to be in a position to make an interim dividend to those unsecured creditors whose claims have been deemed valid in Q4 2015.
292. Deputy Patrick O'Donovan asked the Minister for Finance if a tax refund will be issued in respect of a person (details supplied) in County Wexford; the options that are available to that person; and if he will make a statement on the matter. [21283/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the person concerned is registered for income tax and Relevant Contracts Tax (RCT). When the person concerned first registered for RCT he was subject to a deduction rate of 20% and this continued until April of this year when the deduction rate was revised to 0% because of his then established compliance record. RCT deductions are treated as a down-payment for income tax due for the period in which it is deducted or there is the option to have RCT offset against VAT or PAYE/PRSI.
In this instance €318 of an overall RCT credit of €2,268 has been offset against an existing VAT liability that had been paid and a refund of the payment of €318 will issue to the person concerned shortly. The balance of the RCT credit of €1,948 is available for offset against any further tax liability that arises in 2015. When the income tax liability for 2015 is determined, i.e. on the filing of the return for that year in 2016, any excess RCT for 2015 at that stage will be refunded.
