Finian McGrath
Ceist:293. Deputy Finian McGrath asked the Minister for Finance the position regarding corporation tax (details supplied); and if he will make a statement on the matter. [21310/15]
Amharc ar fhreagraCorporation Tax
Ceisteanna (293)
Freagraí scríofa
All companies operating in Ireland are chargeable to corporation tax at the 12.5% rate on the profits that are generated from their trading activities here. A higher 25% rate applies in respect of investment, rental and other non-trading profits, as well as certain petroleum, mining and land-dealing activities, and chargeable capital gains are taxable at the capital gains tax rate of 33%.
I am advised by the Revenue Commissioners that published statistics regarding receipts of corporation tax are available on the Revenue website at http://www.revenue.ie/en/about/statistics/net-receipts.pdf.
The Deputy may wish to note the amounts of profits, before allowing credits and reliefs, that are taxable at the different rates of corporation tax are published under the heading "Total Taxable Income" at http://www.revenue.ie/en/about/statistics/corporation-tax-calculation.pdf.
The total amount of corporation tax collected in 2014 was €4.617bn.
Due to the interaction of reliefs and allowances after the calculation of gross tax at the various corporation tax rates, it is not possible to identify the amount of receipts that are in respect of profits taxable at the 12.5% rate alone. However, I am advised by the Revenue Commissioners that the vast majority of the net receipts are from the standard rate of tax.
The Revenue Commissioners have advised that it is not possible to accurately estimate the additional revenue that may be brought in from increasing the 12.5% tax rate to 15%. This would require ex ante knowledge of any behavioural changes on the part of taxpayers as a consequence. In terms of any increase in the 12.5% rate, the negative impact of behavioural effects on the corporation tax yield are likely to be relatively significant.
To give the Deputy an idea of what the effects of such a change could be, I would highlight that an OECD multi-country study found that a 1% increase in the corporate tax rate reduces inward investment by 3.7% on average. On this basis, it would take only a 2.5% increase in the rate (to 15%) to decrease Ireland's inward investment by nearly 10%. This OECD study assumes the average applies across the board but in fact the effect is likely to be more extreme for Ireland, given the economic challenges faced by a small island.
Last year my Department published the Economic Impact Assessment of Ireland's Corporation Tax Policy. This contained the results of extensive research which was carried out and commissioned by the Department of Finance in 2014 which sought to quantify the effect of corporation tax policy on the Irish economy.
As part of this project, the Economic and Social Research Institute ('ESRI') were commissioned to carry out a study into the impact that the corporation tax rate has on the decision of firms to invest in Ireland. This independent research found that if the Irish corporation tax rate had been 15% over the period of their sample, then the number of new foreign investments into Ireland would have been 22% lower.
Another paper, titled Literature Review of the Economic impacts of Corporation Tax highlighted research by the OECD and others that point to the importance of low corporate tax rates to encourage economic growth.
The maintenance of the standard 12.5% rate of corporation tax is therefore extremely important for Ireland's economy. Ireland, like other smaller member states, is geographically and historically a peripheral country in Europe. A competitive corporate tax rate is a tool to address the economic limitations that come with being a peripheral country, as compared to larger core countries. Ireland's 12.5% corporation tax rate plays an important role in attracting FDI to Ireland and thereby increasing employment here.
This evidence underpins the Government's continued commitment to the 12.5% rate.
These documents (and the others from the project) can be viewed on the Department's website at the following link: http://budget.gov.ie/Budgets/2015/2015.aspx.
Tax Credits
Ceisteanna (294)
John McGuinness
Ceist:294. Deputy John McGuinness asked the Minister for Finance if €495,352.00 relevant contracts tax will be paid by the Revenue Commissioners to a company (details supplied); if the Revenue Commissioners made an application in 2012 for a case stated to the High Court in this matter; if so, the status of such an application; the status of the determination by the Appeals Commissioner on 11 June 2012; and the reason for the delay in concluding this matter. [21349/15]
Amharc ar fhreagraFreagraí scríofa
I understand from the Revenue Commissioners that the Appeal Commissioner determined on 11 June 2012, that the company concerned is entitled to a credit of the RCT for the year 2007. While the Revenue Commissioners had initially requested that a Case Stated be prepared for the Opinion of the High Court, following further consideration of this matter Revenue decided not to proceed with the Case Stated to the High Court. The solicitors for the company concerned were advised of this on 3 June and Revenue apologised for the delay in finalising this matter.
A credit for Relevant Contracts is available to the company. It has been agreed with the agents for the company that this credit should be used to satisfy any VAT liability of the company concerned with any remaining balance repaid to the company. A meeting has been arranged between Revenue and the advisers to the company for 24 June to discuss and agree the quantum of the VAT liability following which it is expected that matters can be finalised without delay.
National Pensions Reserve Fund Investments
Ceisteanna (295)
Terence Flanagan
Ceist:295. Deputy Terence Flanagan asked the Minister for Finance to outline the use of the money from the National Pension Reserve Fund's sale of its Bank of Ireland holding (details supplied); and if he will make a statement on the matter. [21363/15]
Amharc ar fhreagraFreagraí scríofa
The €1.9 billion capital proceeds of disposals (i.e. excluding accrued interest) from the NPRF's Directed Portfolio holdings in Bank of Ireland in December 2013 were retained in case it was found necessary to use them in the light of the results of the Banking stress tests in October 2014. In January 2014 these proceeds were invested by the NTMA in securities at my request. A portion of these proceeds were used to provide capital and loan funds to help set up the Strategic Banking Corporation of Ireland (SBCI) in September 2014. As the outcome of the bank stress tests were favourable it was not then necessary to use the balance of the proceeds towards re-capitalising Irish banks. In light of this positive outcome in March of this year I directed the NTMA to sell the €1.6bn of remaining securities, the proceeds of which were subsequently transferred to the Exchequer and used to part-finance, together with cheaper market based funding, the early repayment of the most expensive portion of the State's IMF loan facility.
Following the majority commencement of the NTMA (Amendment) Act 2014 on 22 December 2014 the assets of the National Pensions Reserve Fund (NPRF) became the assets of the Ireland Strategic Investment Fund (ISIF). The NPRF now legally only exists to manage the transfer of its assets to the ISIF.
As you will be aware, the NPRF was set up with the intention to meet as much as possible of the cost to the Exchequer of social welfare and public service pensions from 2025 to at least 2055. While the need for the State to provide for social welfare and public service pensions obligations has not abated, fostering economic activity and employment is currently a greater priority and this will in turn put the State in a better position to meet its pensions obligations in the longer-term.
It also must be noted that there is expected to be a significant reduction in public sector pensions following the pay and pension cuts since 2009 and the freeze in pay and pension rates until after the Haddington Road Agreement.
A key result of the most recent actuarial valuation carried out by the Department of Public Expenditure and Reform to update the accrued liability in respect of Public Service occupational pensions was that the total accrued liability was estimated at €98bn as at December 2012. This compares with the previous estimate of €116bn for 2009 which was arrived at by the Comptroller and Auditor General (C&AG). Therefore, over the three years from 2009 to 2012 the liability fell by €18bn or by 16%.
Tax Compliance
Ceisteanna (296)
Terence Flanagan
Ceist:296. Deputy Terence Flanagan asked the Minister for Finance the reason a person (details supplied) in Dublin 13 has been informed of a tax liability; and if he will make a statement on the matter. [21364/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that they are in active communication with the person concerned regarding her tax affairs. Information is awaited by Revenue from the person concerned in relation to certain aspects of those tax affairs. While at this stage it is likely that the person concerned will owe some tax, the current matter cannot be finalised until the information requested is received by Revenue.
IBRC Operations
Ceisteanna (297)
Caoimhghín Ó Caoláin
Ceist:297. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the total cost, including legal fees, public relations costs and so on, to the State of the Irish Bank Resolution Corporation strategy towards the former owner-owners and senior management of the Quinn Group; the amount of the overall cost that has been-will be recouped; the way the overall outlay compares to the Quinn family offer of €2.8 billion, when same was made; and if he will make a statement on the matter. [21394/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Special Liquidators that due to commercial confidentiality and ongoing litigation, they are not in a position to provide the information requested.
Banking Sector Investigations
Ceisteanna (298)
Michael McGrath
Ceist:298. Deputy Michael McGrath asked the Minister for Finance the cost of the work known as Project Atlas conducted by PwC on certain banking issues; the persons who paid for the project; and if he will make a statement on the matter. [21410/15]
Amharc ar fhreagraFreagraí scríofa
I have been informed by the Central Bank that the Financial Regulator engaged PwC in September 2008 to conduct work on certain banking issues, known as Project Atlas. The total cost of Project Atlas was €3,794,967, of which €3,601,367 was recouped from the banks.
Code of Conduct on Mortgage Arrears
Ceisteanna (299)
Thomas Pringle
Ceist:299. Deputy Thomas Pringle asked the Minister for Finance if a company (details supplied) has stated it will commit to the Code of Conduct on Mortgage Arrears; if not, the reason; and if he will make a statement on the matter. [21413/15]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Central Bank that the company referred to by the Deputy is a wholly owned subsidiary of a company that, while not regulated by the Central Bank, has voluntarily agreed to adhere to the Central Bank of Ireland's Code of Conduct on Mortgage Arrears and the parent company confirms this on its website at http://www.marscapital.ie/help-and-advice/general-faqs/.
The CCMA provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender, and that long-term resolution is sought by lenders with each of their borrowers. All cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her mortgage obligations. A lender may only commence legal proceedings for repossession where it has made every reasonable effort under the Code to agree an alternative repayment arrangement with the borrower or his/her nominated representative and the specific timeframes set out in the Code have been adhered to or the borrower has been classified as not co-operating.
The Deputy will also be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 is being introduced to regulate the activity of credit servicing, and the credit servicing firms engaged in such activity. When enacted, this Bill will ensure that borrowers retain the protections they had before the loan book was sold, including the protections of the Code of Conduct on Mortgage Arrears and the Consumer Protection Code. The Committee Stage of this Bill was taken on 27 May and Report Stage is expected to be taken on 17 June.
Legislative Measures
Ceisteanna (300)
Thomas Pringle
Ceist:300. Deputy Thomas Pringle asked the Minister for Finance if the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 will be applied retrospectively for customers in current mortgage arrears; and if he will make a statement on the matter. [21414/15]
Amharc ar fhreagraFreagraí scríofa
The legislation will apply to all loans as defined, regardless of when they were acquired, thus capturing loan books that have already been sold. A similar approach was used in 2013 in relation to debt management firms. Also, when the requirement for a retail credit firm authorisation was itself introduced in 2007, existing non-deposit taking lenders (which up to then did not require authorisation from the Central Bank) had to get an authorisation from the Central Bank in order to continue their business. The Bill has transitional provisions to allow existing firms seek and obtain authorisation from the Central Bank while continuing to do business.
The issue of retrospective legislation was referred to at the pre-legislative scrutiny hearing on 3rd December which is available on the Oireachtas website. Committee Stage of the Bill was taken on 27 May and the Bill as amended in the Select sub-Committee on Finance is available on the Oireachtas website. Report Stage is expected to be taken on 17 June.
Once the Bill is enacted, credit servicing will become a regulated activity and firms undertaking credit servicing will be subject to all Central Bank Codes including the Code of Conduct on Mortgage Arrears.
Pension Levy Yield
Ceisteanna (301)
Tom Fleming
Ceist:301. Deputy Tom Fleming asked the Minister for Finance the amount for the first quarter collected by the Exchequer on the stamp duty levy and pension fund assets; and if he will make a statement on the matter. [21432/15]
Amharc ar fhreagraFreagraí scríofa
I assume the Deputy is referring to the stamp duty levy on pension fund assets, which was introduced in the Finance (No. 2) Act 2011. The levy applies to the market value on the valuation date, generally 30 June each year, of assets under management in pension funds and pension plans approved under Irish tax legislation and is required to be paid by 25 September each year. It should be noted that payments can be received after the deadline, and at end-March 2015, €1.2 million was collected in respect of the stamp duty levy on pension fund assets. I would point out that the deadline date for payment of the levy this year is 25 September 2015.
Credit Register Establishment
Ceisteanna (302)
Michael McGrath
Ceist:302. Deputy Michael McGrath asked the Minister for Finance when the central credit register will be fully operational; the steps that have been taken, thus far, in its implementation; the reason for the delay in bringing it forward; and if he will make a statement on the matter. [21434/15]
Amharc ar fhreagraFreagraí scríofa
I have been informed by the Central Bank (Bank) that it is taking a phased approach to the implementation of the Central Credit Register (CCR). The initial phase of the CCR will focus on lending to individuals and is expected to become operational by mid-2016. A later phase will address lending to incorporated entities and is tentatively scheduled to be operational by end-2017.
Following a public procurement process, the Bank has entered into a contract with CRIF Ireland Limited to build and operate the CCR on its behalf. Following on from this, the Bank has now commenced the design of the CCR solution and processes in conjunction with CRIF Ireland Ltd.
The Bank continues to engage with representative industry groups to explain its approach and it also published a public consultation paper in April 2015 on detailed aspects of the CCR - details on this are in the following link.
http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankofIrelandlaunchesconsultationonCentralCreditRegister.aspx .
It is anticipated that the remainder of 2015 will be spent in developing and testing the technical solution with relevant stakeholders. However, the operational implementation of the credit register is a complex process and must take account of the scale of technical and operational changes to be implemented by over 500 lenders within the scope of the CCR and the final detailed obligations will also have to be set out in regulations as provided for in Credit Reporting Act.
Disabled Drivers and Passengers Scheme
Ceisteanna (303)
Seán Fleming
Ceist:303. Deputy Sean Fleming asked the Minister for Finance when an application form for tax relief in relation to vehicles purchased for use by persons with disabilities will be approved in respect of a person (details supplied) in County Laois; and if he will make a statement on the matter. [21462/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that the vehicle purchased by the person concerned has been approved for motor tax exemption and assistance in respect of fuel costs under the Drivers/Passengers with Disabilities Scheme. A Certificate of Approval to exempt the vehicle from payment of annual motor tax issued to the person on 13 May 2015.
Any further information or assistance that the person may require is available from Revenue's Central Repayments Office, Monaghan, Telephone LoCall: 1890 60 60 61
Tax Relief Availability
Ceisteanna (304)
Brendan Griffin
Ceist:304. Deputy Brendan Griffin asked the Minister for Finance if tax relief is available to a person who disposed of shares to purchase agricultural land; and if he will make a statement on the matter. [21475/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that capital gains tax applies to the disposal of shares. No relief is available in respect of such a disposal where the proceeds of the disposal are used to purchase agricultural land. Individuals who dispose of shares in order to purchase agricultural land are no different to any other taxpayers who may decide to dispose of shares or other assets.
It is important to bear in mind that it is only an actual chargeable gain that is subject to capital gains tax, not the entire consideration that is derived from a disposal of shares. In addition, an individual can dispose of shares and make a gain of €1,270 each year without incurring any capital gains tax, assuming that he or she did not have any other gains in that year.
Revenue Commissioners Expenditure
Ceisteanna (305)
Seán Kenny
Ceist:305. Deputy Seán Kenny asked the Minister for Finance if he will increase the number of dog teams available to the Revenue Commissioners; and if he will make a statement on the matter. [21482/15]
Amharc ar fhreagraFreagraí scríofa
The acquisition of detector dogs and the deployment of dog teams is a matter for the Revenue Commissioners.
I am advised by the Commissioners that the total number of dog units in operation is currently 17. An additional dog unit is being set-up in Dublin Airport to target the importation of foodstuffs. This dog unit will be operated by Revenue on behalf of the Department of Agriculture.
Revenue is satisfied that the total number of dog units is sufficient for current day-to-day operations but this is kept under constant review.
Tax Credits
Ceisteanna (306)
Jack Wall
Ceist:306. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is in receipt of the correct tax credits, and so on, for a married person with two dependent children; and if he will make a statement on the matter. [21507/15]
Amharc ar fhreagraFreagraí scríofa
I have been advised by the Revenue Commissioners that they are in direct communication with the person concerned to clarify and confirm certain aspects of the personal circumstances of that person and in that context to update and grant any additional tax credits and reliefs to which the person concerned is entitled.
Capital Allowances
Ceisteanna (307)
Caoimhghín Ó Caoláin
Ceist:307. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the total number of tax breaks for private hospitals and the land gift scheme for each of the years 2010 to 2014 and for 2015 to date; his plans to continue same; and if he will make a statement on the matter. [21510/15]
Amharc ar fhreagraFreagraí scríofa
It is assumed that the Deputy is referring to the capital allowances that are available in respect of capital expenditure on qualifying private hospitals under the property incentive scheme. I am informed by the Revenue Commissioners that the available information on the estimated cost of tax forgone and the number of claimants for the most recent five years available is as set out in the following table.
Private Hospitals
|
Year |
Exchequer Cost |
Number of Claimants |
|
|
€m |
|
|
2009 |
12.5 |
346 |
|
2010 |
16.7 |
524 |
|
2011 |
14.4 |
508 |
|
2012 |
12.1 |
498 |
|
2013* |
9.2 |
357 |
*Provisional
The estimated relief claimed has assumed tax foregone at the 41% rate in the case of individuals. The figures shown correspond to the maximum Exchequer cost in terms of income tax.
As regards the land gift scheme, I am advised that there is no specific tax incentive for the gifting of land for private hospitals but if the Deputy could provide further details on the provisions he believes to be relevant then I will ask my officials to investigate further.
Seirbhísí trí Ghaeilge
Ceisteanna (308)
Éamon Ó Cuív
Ceist:308. D'fhiafraigh Deputy Éamon Ó Cuív den Aire Airgeadais cé na bearta atá á ndéanamh ag a Roinn chun an pobal a chur ar an eolas faoi na seirbhísí i nGaeilge atá ar fáil ón Roinn agus ó na heagraíochtaí atá faoi choimirce na Roinne; agus an ndéanfaidh sé ráiteas ina thaobh. [21522/15]
Amharc ar fhreagraFreagraí scríofa
Tá na seirbhísí a chuireann an Roinn seo ar fáil mar aon lenár gcuid aidhmeanna do na trí bliana le teacht leagtha amach sa Dara Scéim Teanga 2014-2017 atá ar fáil ar ár suíomh Gréasáin ag http://www.finance.gov.ie/sites/default/files/Dara%20Sc%C3%A9im%20Teanga%20na%20Roinne%20Airgeadais%202014-2017.pdf. Go háirithe, cuirtear roinnt faisnéise faoin mBuiséad bliantúil agus preaseisiúintí ar fáil i nGaeilge. Maidir le comhlachtaí faoi choimirce na Roinne, ghlac siad le beartais agus le gníomhartha ar leith chun úsáid na Gaeilge ina n-eagraíocht a chur chun cinn.
Banking Operations
Ceisteanna (309)
Pat Deering
Ceist:309. Deputy Pat Deering asked the Minister for Finance his views on the State owned Allied Irish Banks unilaterally abolishing overdraft facilities to sporting organisations; if he considers this further evidence of the bank not facilitating communities; and if he will make a statement on the matter. [21590/15]
Amharc ar fhreagraFreagraí scríofa
I have been informed by AIB that the bank has not unilaterally abolished overdraft facilities to sporting organisations. There are particular constraints in lending to unincorporated bodies or associations and a typical solution is for borrowings to be placed in the name of the club or association trustees.
AIB continues to provide credit facilities to sporting clubs and associations and, on a case by case basis, seeks to find solutions to the above legal constraints relating to unincorporated entities.
AIB is available to discuss individual club or association credit requests across its branch network or through its Direct Channel.
Home Renovation Incentive Scheme Data
Ceisteanna (310)
John Deasy
Ceist:310. Deputy John Deasy asked the Minister for Finance the number of applications that have been received and approved, to date, in each county, under the home renovation incentive scheme; and if he will provide a breakdown of the estimated value of works per county since its introduction. [21630/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners based on the available information to date that 21,187 individual properties have registered works in respect of the Home Renovation Incentive scheme. A total of 28,708 works have been registered, the estimated value of which is €447 million (a single property can have more than one body of qualifying works completed). These include all works registered for the scheme but also works currently under the minimum threshold to qualify for the tax credit. A county breakdown is provided in the table following.
|
County |
Number of Properties |
Number of Works |
Estimated Value of Works €m |
|
Carlow |
156 |
208 |
1.98 |
|
Cavan |
124 |
152 |
1.76 |
|
Clare |
331 |
415 |
5.18 |
|
Cork |
2,362 |
3,240 |
47.82 |
|
Donegal |
134 |
174 |
2.49 |
|
Dublin |
10,151 |
13,860 |
248.83 |
|
Galway |
846 |
1,149 |
17.27 |
|
Kerry |
387 |
511 |
6.47 |
|
Kildare |
1,121 |
1,489 |
18.53 |
|
Kilkenny |
291 |
383 |
5.16 |
|
Laois |
122 |
164 |
2.01 |
|
Leitrim |
86 |
101 |
1.41 |
|
Limerick |
628 |
882 |
10.74 |
|
Longford |
67 |
98 |
1.11 |
|
Louth |
326 |
404 |
5.26 |
|
Mayo |
274 |
359 |
4.59 |
|
Meath |
704 |
964 |
12.77 |
|
Monaghan |
79 |
108 |
1.34 |
|
Offaly |
165 |
220 |
2.49 |
|
Roscommon |
183 |
257 |
2.62 |
|
Sligo |
228 |
314 |
5.29 |
|
Tipperary |
505 |
656 |
8.29 |
|
Waterford |
391 |
529 |
6.94 |
|
Westmeath |
288 |
393 |
4.87 |
|
Wexford |
396 |
523 |
6.63 |
|
Wicklow |
842 |
1,155 |
15.49 |
|
Total |
21,187 |
28,708 |
447.35 |
Tax Rebates
Ceisteanna (311)
Michael Creed
Ceist:311. Deputy Michael Creed asked the Minister for Finance if a person (details supplied) in County Cork is due a refund of income tax; and if he will make a statement on the matter. [21635/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that following recent engagement between the person concerned and Revenue it has been established that the person concerned is due a refund for 2014. This refund will issue to the person concerned in a matter of a few days.