Written Answers Nos. 312-332
312. Deputy Noel Coonan asked the Minister for Finance when an application for incapacitated child tax credit will be finalised in respect of a person (details supplied) in County Tipperary; and if he will make a statement on the matter. [21637/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the spouse of the person concerned is the assessable person for tax purposes. The Incapacitated Child Tax Credit is included in a revised Certificate of Tax Credits that Revenue is now issuing for 2015.
As regards the years 2012, 2013 and 2014, Revenue has requested outstanding returns of income for those years and as soon as these are received by Revenue, the granting of the credit for those years can be finalised.
313. Deputy Michael McGrath asked the Minister for Finance the cost of capital gains tax entrepreneur relief in 2014; the projected cost in 2015; and if he will make a statement on the matter. [21742/15]
Amharc ar fhreagraCGT entrepreneurial relief was introduced to encourage entrepreneurs (in particular "serial" entrepreneurs) to invest and reinvest in assets used in new productive trading activities. The measure applies where an individual, who has paid capital gains tax on the disposal of assets, makes investments in a new business in the period 1 January 2014 to 31 December 2018 and subsequently disposes of this investment no earlier than three years after the date of investment. The CGT payable on the disposal of the new chargeable business assets will be reduced by the lower of (i) the CGT paid by the individual on a previous disposal of assets in the period from 1 January 2010 and (ii) 50% of the CGT due on the disposal of the new investment. This measure was included in Budget 2014 and Finance (No 2) Act 2013, subject to receipt of EU State Aid approval, and was subsequently put into effect in Finance Act 2014 with certain amendments to comply with EU State Aid rules and to improve the effectiveness of the relief.
Due to the conditions attaching to the relief, as outlined above, no Exchequer cost arises in either 2014 or 2015.
318. Deputy Jim Daly asked the Minister for Finance if he will clarify the deductions of tax of a pension payment in respect of a person (details supplied) in County Cork [21850/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the income of the person in question increased during 2014 compared to 2013. In 2013, the person's income was below the exemption threshold and was not liable to tax; however, the increase in income during 2014 moved the person concerned above this threshold and a liability to tax arose. A revised tax credit certificate issued to the person concerned reflecting the credits to which he was entitled having regard to the increase in income.
319. Deputy Eoghan Murphy asked the Minister for Finance Dublin's tax contribution to overall Exchequer finances in 2013. [21878/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that a wide range of statistical information is now available on the Commissioners' statistics web page at www.revenue.ie/en/about/statistics/index.html.
In response to the Deputy's Question, detailed information regarding Dublin's tax contribution to Exchequer finances can be found under the 'Revenue Net Receipts by County' heading at www.revenue.ie/en/about/statistics/net-receipts-by-county.pdf. This breakdown is available for receipts of VAT, PAYE, self assessed Income Tax, Corporation Tax and Capital Gains Tax only.
This information is estimated on the basis of 'bailiwick' (meaning the jurisdiction or boundaries within which Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt). Bailiwick broadly equates geographically with "county".
It should be noted that the amount of tax attributed to a county may not necessarily be an indication of economic activity in that county for several reasons. The liability of a trader to VAT is generally dealt with by reference to the location of the trader's registered office, even though the economic activity may be carried on in another county. An employer's liability for PAYE is normally attributed to the county in which wages and salaries are paid, even though the employees may live or work in different counties. Companies are associated on the tax record with the address of the head-office or branch with which contact is established for tax purposes, which may be different to the locations of other branches. The distribution of the taxes in question can also vary from year to year as businesses move premises. In considering the figures, it should also be noted that VAT receipts include only VAT internal (VAT on imports and VAT on products leaving tax warehouses are excluded).
320. Deputy Maureen O'Sullivan asked the Minister for Finance in view of the fact that the Finance Act 2007 removed Irish securities stamp duty reliefs, market maker, broker dealer, and closings relief and introduced the central counterparty relief and intermediary relief (details supplied), if this change had not been introduced the amount of stamp duty revenue on these transactions in 2014. [21902/15]
Amharc ar fhreagraI assume that the Deputy is seeking to ascertain the impact on stamp duty revenues if, on the abolition by Finance Act 2007 of certain reliefs (i.e. market maker, broker/dealer and closings relief), these reliefs had not been replaced by alternative reliefs (i.e. intermediary and central counter party reliefs).
Arising from a concern that the stamp duty code did not reflect developments in the market for equities and modern share dealing practices, my Department carried out a review of the operation of this market. The objective was to ensure that the market in Irish equities would continue to be a modern, liquid market, conducive to capital acquisition by Irish firms. The outcome of the review was the consolidation and replacement of outdated reliefs by Finance Act 2007. The overall thrust of the measures was to ensure that any intermediary (such as brokers or counter parties) in the chain of a share dealing transaction would continue to be exempt from stamp duty where they do not hold shares as an investment for their own benefit. The ultimate purchaser in the chain of a share dealing transaction continued to be liable for stamp duty at the prevailing rate on the consideration given for shares. This rate was 1% when the reliefs were introduced and remains at 1%. Therefore, the new measures, in themselves, would not have resulted in any change in stamp duty revenue for the Exchequer.
The Deputy's question is hypothetical in that it asks about the effect of not having introduced a tax measure that was in place for a particular year, i.e. 2014. It cannot be assumed that, in the absence of the new measures the removal of the existing reliefs would have yielded a certain amount of stamp duty as it may have been counterproductive and had the effect of discouraging share transactions. It would therefore be inappropriate to speculate on the matter.
In relation to actual share dealing transactions, I am advised by Revenue that there were in excess of 10 million individual transactions carried out through the CREST share settlement system in 2014. Obtaining details of the cost to the Exchequer of reliefs claimed under central counter party and intermediary relief would require an extensive investigation and analysis of Revenue's records which could only be carried out at a disproportionate cost.
In any event, my view is that the usefulness of carrying out such an exercise is questionable.
321. Deputy Maureen O'Sullivan asked the Minister for Finance the amount of revenue in the form of taxation that was generated by the sale of alcohol in 2014. [21912/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the revenue in the form of taxation that was generated by the sale of alcohol in 2014 is in respect of Alcohol Products Tax (Excise Duty) and VAT. It should be noted that the VAT receipts are estimated, as VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified.
|
|
Beer |
Spirits |
Wine |
Cider |
Total |
|
2014 |
€ m |
€ m |
€ m |
€ m |
€ m |
|
Alcohol Products Tax |
424.9 |
301.8 |
354.6 |
58.5 |
1,139.8 |
|
VAT (Estimated) |
516.6 |
233.4 |
209.1 |
94.3 |
1,053.3 |
322. Deputy Brendan Smith asked the Minister for Finance his plans to change the criteria for the primary medical certificate; the measures he plans to implement to address the concerns of the Ombudsman in relation to the scheme being overly rigid and inflexible, and that it may be causing inequity; and if he will make a statement on the matter. [21924/15]
Amharc ar fhreagraI am aware that the Ombudsman wrote to the Secretary General of my Department in December 2014 and made comments regarding the eligibility criteria of the Disabled Driver and Disabled Passengers Scheme. The Ombudsman stated, inter alia, that he believed that the 'scheme is overly rigid and may well be causing inequity'.
The Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the assistance with fuel costs used by members of the Scheme, based on provisional figures the Scheme represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities, and I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. However, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond those currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
323. Deputy Michelle Mulherin asked the Minister for Finance what was the projected requirement of housing units to be built annually to meet demand, up to and including 2015, at the time the National Asset Management Agency was established; and if he will make a statement on the matter. [21936/15]
Amharc ar fhreagraIn the Stability Programme Update (SPU) published by the Department of Finance in December 2009 (NAMA was established in November 2009), it was indicated that over the medium term, new housing output levels were expected to gradually revert back towards 30,000 units per annum. The SPU noted that this figure was the tentatively estimated sustainable level over the medium term.
As is well recognised, projections regarding housing requirements are sensitive to assumptions regarding the change in population particularly migration (which in turn is sensitive to economic conditions), headship rates (the inverse of the average number of people per household), the rate of obsolescence of existing stock, and the natural housing vacancy rate.
324. Deputy Robert Dowds asked the Minister for Finance if he will introduce legislation to compel the banks to reduce the rate of variable mortgages to bring it close to parity with average European variable mortgage rates, in view of the fact that the average European variable mortgage rate is significantly lower than that here; and if he will make a statement on the matter. [21943/15]
Amharc ar fhreagraAs you know, I met with senior management of Ireland's six main mortgage providers in May. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks.
I outlined my view, that Standard Variable Rates being charged in the Irish market are too high. There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation.
The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.
In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.
The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.
Officials in my Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
325. Deputy Michael McGrath asked the Minister for Finance the total administration costs of the Credit Union Restructuring Board for each calendar year since its establishment; and if he will make a statement on the matter. [21947/15]
Amharc ar fhreagraThe Credit Union and Co-operation with Overseas Regulators Act 2012 provides the statutory basis for the restructuring of credit unions and placed the Credit Union Restructuring Board - ReBo - on a statutory footing from 1 January 2013. ReBo is currently in the process of overseeing and facilitating restructuring on a voluntary, incentivised and time-bound basis and is working towards the timetable set out in the Commission on Credit Unions report, with a view to completing the process by the end of 2015.
The Government has made available €250 million to the Credit Union Fund for the voluntary restructuring of credit unions.
ReBo's administrative costs since establishment are as follows:
- 2013 €696,000
- 2014 €1,254,000
Consistent with the co-funding of ReBo by the credit union movement and the State, as recommended by the Commission on Credit Unions, a levy on the sector has been put in place to recoup 50% of ReBo's total expenditure.
326. Deputy Michael McGrath asked the Minister for Finance in relation to the €250 million from the Central Fund of the Exchequer, made available to the credit institutions resolution fund by him in December 2011, the total drawdown to date; the amounts used in each of the years 2011 to 2014, and in 2015 to date; the number of credit unions supported; the amount used to support each credit union for which the fund was used; and if he will make a statement on the matter. [21948/15]
Amharc ar fhreagraThe Government put €250 million into the Credit Institutions Resolution Fund which was established by section 10(1) of the Central Bank and Credit Institutions (Resolution) Act 2011 (as amended) (2011 Act). The purpose of the Resolution Fund under the 2011 Act is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution. In particular the Resolution fund may be used for:
- the payment of financial incentives for transfers;
- providing capital for a bridge bank (details of a bridge bank are set out in Part 4 of the 2011 Act);
- meeting the expenses of the Central Bank incurred when discharging functions under the Act, and
- making certain payments under the Act, for example, the payment of expenses to an assessor appointed under the Act.
To date, the resources of the Resolution Fund have been utilised to fund the resolution of 4 credit unions. In the case of 3 of those credit unions, the resolution action taken was a directed transfer under the 2011 Act, and the Resolution Fund funded a financial incentive for the transferee. The remaining case was a liquidation, and no incentive was paid from the Resolution Fund in respect of that resolution. In each of the 4 cases, the Central Bank discharged its third party resolution related costs against the Resolution Fund.
The amounts paid or payable to date from the Resolution Fund for incentives in each of the 3 transfer resolution cases are as follows:
- Newbridge Credit Union Limited: €27 million
- Howth Sutton Credit Union Limited: €2.15 million
- Killorglin Credit Union Limited: €2.15 million
- Central Bank resolution related expenses that have been discharged against the Resolution Fund to date amount to €2.7 million.
To date €35.4 million has been drawn down from the Resolution Fund by way of expenditure relating to incentives for credit union resolution, Central Bank resolution related expenses and interest expenses.
The breakdown of expenses per year of operation of the Resolution Fund is as follows:
|
October 2011 to December 2012* |
€1.3 million |
|
2013 |
€26.9 million |
|
2014 |
€6.9 million |
|
2015 (YTD) |
€0.3 million |
The Resolution Fund has income over the period amounting to €29 million. This is made up of €23.7 million in levy income; €1.4 million in interest income; and €3.9 million in income estimated from the Newbridge Credit Union liquidation process.
Under Section 12(2) of the Resolution Act, as Minister for Finance I am entitled to be reimbursed from the Resolution Fund for all contributions to that Fund and for any financial incentive provided.
*The CIRF was established by the 2011 Act, and was only in operation from October in 2011; therefore the first set of published accounts for the CIRF relate to period from 28 October 2011 to 31 December 2012.
327. Deputy Michael McGrath asked the Minister for Finance in respect of the Credit Union Restructuring Board, and the credit union fund available to the board, the total number of credit unions assisted, to date; the estimated total number of credit unions that are expected to be assisted; the amount that will be used to support credit unions before the board is scheduled to be wound up; and if he will make a statement on the matter. [21949/15]
Amharc ar fhreagraThe Credit Union and Co-operation with Overseas Regulators Act 2012 provides the statutory basis for the restructuring of credit unions and placed the Credit Union Restructuring Board - ReBo - on a statutory footing from 1 January 2013. ReBo is currently in the process of overseeing and facilitating restructuring on a voluntary, incentivised and time-bound basis and is working towards the timetable set out in the Commission on Credit Unions report, with a view to completing the process by the end of 2015.
The Government has made available €250 million to the Credit Union Fund for the voluntary restructuring of credit unions.
ReBo undertook a high level assessment of all credit unions based on financial data from Central Bank and engagement with each credit union. To date, 48 credit unions have been assisted in ReBo approved mergers. A further 121 are currently being assisted in ongoing merger projects. Based on these figures, ReBo estimates that it will assist approximately 169 credit unions in achieving a voluntary restructuring solution. To date, drawdown from the Credit Union Fund has totalled €5.9 million. ReBo is continuing to engage with credit unions to provide an opportunity for those credit unions to merge on a voluntary basis. The remaining expenditure will depend on the number of credit unions that will engage in a restructure with ReBo in the coming months.
328. Deputy Michael McGrath asked the Minister for Finance in respect of the Credit Union Restructuring Board, the schedule for conclusion of the board’s work; if there has been any request or discussion between him, his Department, the board or the Central Bank of Ireland regarding extending the planned time frame of the board’s work and remit; and if he will make a statement on the matter. [21950/15]
Amharc ar fhreagraThe Credit Union Restructuring Board - ReBo, was established on a statutory basis on 1 January 2013. The objectives of the restructuring process are to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model. ReBo is continuing to work to the timetable set out in the Commission on Credit Unions Report and is expected to accept restructuring proposals up to the end of December 2015.
Section 43 of the Credit Union and Co-operation with Overseas Regulators Act 2012 provides that a review of the work of ReBo will be carried out no later than 1 January 2016. This review will inform me as to whether or not ReBo has completed the performance of its functions. When I am satisfied that ReBo's work is done, I will by order dissolve ReBo. Section 43(2)(b) further provides that following this review, where it is shown that ReBo has not completed the performance of its functions, a further review must be carried out within 12 months of the first review.
I am expecting to receive the review on the work of ReBo from its establishment to that date, before the end of the year. This review will inform my decision on the future of ReBo.
329. Deputy Mary Lou McDonald asked the Minister for Finance the protocol for selecting the areas included in the Living City Initiative; if he will consider including the areas of the Royal Canal Bank and Broadstone, Dublin 7, in this Initiative; and if he will make a statement on the matter. [21969/15]
Amharc ar fhreagraThe Special Regeneration Areas for the Living City Initiative were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas which should be included within the remit of the Living City Initiative which were required to be taken into account by the relevant city councils when putting forward the proposed Special Regeneration Areas for each city.
As the Living City Initiative is a very targeted urban regeneration incentive, the criteria to be met for the inclusion of an area in the scheme are more stringent than simply being located in the relevant city and constructed pre 1915. In particular, it was stated that the Special Regeneration Areas should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use. It was specified that areas which are generally regarded as affluent, have high occupancy rates and which do not require regeneration should not be included in the Special Regeneration Areas.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas which are most in need of attention. However, as is the case with all tax reliefs, the scheme will be kept under review.
330. Deputy Michael McGrath asked the Minister for Finance the progress that has been made in respect of the liquidation of Setanta Insurance; if those caught up in outstanding claims are facing any losses; the role of the Insurance Compensation Fund; the role of the Motor Insurance Bureau of Ireland; the current estimate of the number and value of outstanding claims; the current estimate of the shortfall; and if he will make a statement on the matter. [21972/15]
Amharc ar fhreagraSetanta Insurance Company Limited is a Maltese incorporated company. Setanta was formally placed into liquidation by the Maltese Financial Services Authority on 30th April 2014 when a liquidator was appointed under the provisions of the Maltese Companies Acts 1995. The liquidation is proceeding according to Maltese law.
The liquidation of an insurance company is a legally complex and time consuming process. The Liquidator has advised that settlements and refunds of premiums can only be paid out by the Liquidator after all of the Company's liabilities are quantified. Since it could take some time for a particular case to be finalised and, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim, it may take some years before the liquidation process is completed.
As at the end of May 2015, the total number of open Setanta claims was 1,710. The Liquidator had advised that he estimates that the total claims provision which will be required by Setanta to pay claims is between €87.7 million and €95.2 million. This figure includes provision for claims not yet reported as well as a provision for deterioration in the position of currently open claims. The Liquidator has also informed my Department that based on these claims estimates, he does not expect to be in a position to meet more than 30% of the amounts due to Setanta creditors.
The respective roles of the Insurance Compensation Fund and the Motor Insurers' Bureau of Ireland in the compensation of former Setanta policyholders is currently before the High Court. The matter will be heard by Justice Hedigan on 13 July 2015.
331. Deputy Sandra McLellan asked the Minister for Finance the reason a search and rescue organisation was refused a request for a vehicle registration tax exemption on a vehicle required to carry out that organisation's emergency response work (details supplied); if this decision will be overturned; and if he will make a statement on the matter. [22037/15]
Amharc ar fhreagraWhere a vehicle is a category D vehicle for Vehicle Registration Tax (VRT) purposes as defined in Section 130 of the Finance Act 1992 then the rate of VRT payable is zero per cent of the value of the vehicle.
I am advised by the Revenue Commissioners that the intended use of the particular vehicle as advised to them does not meet the exclusive use requirements to qualify for a category D classification for VRT purposes. Consequently the vehicle is not eligible for the zero rate of VRT. The position has been explained by Revenue to a representative of the organisation concerned.
332. Deputy Sean Fleming asked the Minister for Finance if he will provide a breakdown of how an amount is due from a person (details supplied) in County Laois, in respect of the household charge arrears; how a person can make a payment on this matter at this stage, when the amount of the arrears is fully verified; and if he will make a statement on the matter. [22042/15]
Amharc ar fhreagraI am advised by Revenue that the person in question has to date failed to meet any of his payment obligations in respect of Household Charge (HHC) or Local Property Tax (LPT). The total outstanding debt at this point is €425, which includes €200 in respect of HHC, €45 in respect of 2013 LPT (Half Year) and €90 each in respect of 2014 and 2015 LPT.
Revenue has further advised me that it provides a wide range of HHC/LPT payment methods, including various phased and single sum options, so that property owners can meet their liabilities in a manner that best suits individual circumstances. For example, the phased options include Direct Debit (DD) and Deduction at Source (DaS) from salary or pension while the single sum payment options include cheque/postal order, Single Debit Authority (SDA), Debit/Credit cards and payment through approved Payment Service Providers (PSPs). The PSP's include An Post, Omnivend, Paypoint, and Payzone. Further detail on the various payment options is available on Revenue's website at www.revenue.ie.
The person in question has already received compliance notifications from Revenue in respect of the outstanding amount and will be subjected to debt collection/enforcement action unless payment is received in the very near future. The various debt collection/enforcement options available to Revenue are:
- Mandatory deduction at source from salary or occupational pension.
- Withholding or offsetting of any refunds due in other taxes to outstanding LPT/HHC liabilities.
- Withholding of Tax Clearance certification.
- Referral to the Sheriff for collection.
- Referral to Solicitors for Court action.
- Notice of Attachment as provided for by Sec 1002 Taxes Consolidation Act 1997 (as amended)
- Income Tax, Corporation Tax or Capital Gains Tax surcharge as appropriate.
- Imposition of penalties for non-filing of LPT Returns.
Any unpaid HHC/LPT liabilities are liable to an interest charge at a rate of 8% per annum. Also, unpaid HHC/LPT liabilities, and interest thereon, automatically attach as a charge on the property. This charge must be satisfied before a property can be transferred or sold. Finally, I would strongly recommend that the person in question immediately engages with Revenue to agree a mutually acceptable payment solution thereby avoiding additional costs and the stress of dealing with debt collection/enforcement sanctions. If the person has any queries or requires any advice or assistance he should contact the LPT Helpline at 1890 200 255.
