Written Answers Nos. 75 to 85
75. Deputy Michael McGrath asked the Minister for Finance the annual tax expenditure in each year since 2008 associated with the deduction of interest expense against rental income; and if he will make a statement on the matter. [24306/15]
Amharc ar fhreagraAs the Deputy will be aware, landlords may deduct 75% of interest paid on money borrowed to purchase, improve or repair residential property from the gross rent when computing their rental profits for tax purposes on that property. Interest can only be deducted during the period in which the property is let.
The estimated cost associated with the deduction of interest expense against rental income is set out in the following table:
|
Year |
€m |
|
2008 |
1,219 |
|
2009 |
731 * |
|
2010 |
641 |
|
2011 |
666 |
|
2012 |
578 |
|
2013 |
485 |
(*Restriction of 75% introduced 7 April 2009)
The estimates in the table are based on assuming that tax relief was allowed at the top income tax rate of 41% and the figure provided could, therefore, be regarded as the maximum Exchequer cost in respect of those taxpayers. I am informed that in preparing the 2013 figures, the Revenue Commissioners revised their method of calculating the estimated cost, and, for comparative purposes, the figures for previous years were collated in the same manner.
Interest relief associated with corporate landlords is not captured on the corporate tax CT1 return and is therefore not available.
76. Deputy Patrick O'Donovan asked the Minister for Finance in regard to the deposit guarantee directive, if he will use discretion under the directive to ensure that credit unions are to be charged at a lower rate of contribution; and if he will make a statement on the matter. [24316/15]
Amharc ar fhreagra78. Deputy Pearse Doherty asked the Minister for Finance with regard to the transposition of the deposit guarantee scheme directive, the consideration he is giving to using the discretion permitted to allow credit unions contribute at a lower rate, given their social ethos and for other reasons, as outlined by the Irish League of Credit Unions; and if he will make a statement on the matter. [24334/15]
Amharc ar fhreagraI propose to take Questions Nos. 76 and 78 together.
The Deposit Guarantee Scheme (DGS) provides protection of up to €100,000 per saver per credit institution, including credit unions. The scheme gives confidence to depositors that their money is safe in the event that a financial institution gets into financial difficulty.
Directive 2014/49/EU is a new EU Directive being transposed into Irish law which provides the same level of guarantee, while proposing a number of changes to the way in which the Scheme operates.
A consultation process conducted by my Department and which concluded last Friday, 12 June 2015, provided the opportunity for stakeholders to give their views on specific aspects of the Directive. In particular, Question 6 specifically asked whether or not credit unions should be considered a low risk sector and thus qualify for a lower level of contribution, it further requests justification for the answer provided. All submissions received by my Department will now be examined and the views therein considered carefully over the coming weeks.
77. Deputy Joanna Tuffy asked the Minister for Finance his views on removing value added tax from incontinence pads for elderly persons and others who use these products; if he is aware that following petitioning by the British public, the United Kingdom Government removed value added tax from incontinence products (details supplied); and if he will make a statement on the matter. [24333/15]
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 supply of incontinence pads is liable to VAT at the standard rate, currently 23%. EU VAT exemptions do not allow for exempting the supply of incontinence pads from VAT and a zero rate of VAT cannot be applied since incontinence pads were not subject to the zero rate at 1 January 1991, a requirement of the EU VAT Directive.
The position in the UK to which the Deputy refers is that where an elderly person provides a declaration to the supplier of incontinence pads that they have a disabling condition (as set out in the UK VAT Notice 701/7) that requires the use of the pads, then the supplier may provide the products to that customer at the zero rate. In all other circumstances the supply of incontinence pads is the UK is subject to VAT.
In Ireland, purchases of incontinence pads for disabled persons may also benefit from relief from VAT. Value Added Tax (Refund of Tax) (No 15) Order 1981 provides for the refund of VAT incurred on qualifying goods for the exclusive use of disabled persons. The order specifies the degree of disability and defines the qualifying goods as goods which are aids or appliances, including parts and accessories, specially constructed or adapted for use by a disabled person. I understand that VAT refunds under the Order have been made in the past for incontinence pads.
79. Deputy Michael McGrath asked the Minister for Finance the number of unfinished housing estates approved for exemption from the local property tax in 2014 and to date in 2015; the approximate revenue foregone as a result; and if he will make a statement on the matter. [24370/15]
Amharc ar fhreagraSection 10 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a number of exemptions from Local Property Tax (LPT). These exemptions include any unfinished housing estates or portions of unfinished housing estates, which are prescribed (as unfinished) by the Minister for the Environment, Community and Local Government in Statutory Instrument (SI) No. 91 of 2013. The 'prescribed list', which was published in March 2013, can be viewed at www.environ.ie. Only properties included on the list are entitled to the exemption.
I am advised by the Revenue Commissioners that statistics relating to Local Property Tax (LPT) can be found on the statistics webpage of the Revenue website at http://www.revenue.ie/en/about/statistics/index.html. Specifically, LPT data are available at http://www.revenue.ie/en/about/statistics/lpt-compliance.html, including the number of properties in each exemption category. These figures are for 2013 through to 2015 (to April) and updates to this information will be provided in due course.
The total cost of LPT exemptions is estimated at €12m for 2014 (the most recent year for which complete figures are available). A breakdown of this cost by local authority is available at the above cited webpage. However, a breakdown of the cost of individual exemption types is not available.
80. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the total yield from each category to which the carbon tax is applied, in each year from 2011 to 2014; the projected yield in 2015; and if he will make a statement on the matter. [24371/15]
Amharc ar fhreagra81. Deputy Michael McGrath asked the Minister for Finance if his Department has carried out a review of the implementation and impact of the carbon tax since its introduction; and if he will make a statement on the matter. [24372/15]
Amharc ar fhreagraI propose to take Questions Nos. 80 and 81 together.
All taxes and reliefs are reviewed on an annual basis as part of the Budget and Finance Bill process. As part of the process the Tax Strategy Group, an inter-departmental committee which examines options in the area of taxation for the Budget and the medium and longer term, considers a specific energy and environmental taxation paper. Since the introduction of carbon tax this paper has included a review of carbon tax, including the impact it has had on fuel poverty. These papers are published and are available on the Department of Finance website.
The Sustainable Energy Authority of Ireland (SEAI) has also published a number of reports evaluating the impact of the carbon tax, notably the Energy in the Residential Sector Report 2013. This report showed that average energy-related CO2 emissions per dwelling fell by 24% since 2006. During the same period the average spend per household fell by 2.3%, even though the weighted average fuel price increase in that period was 37%. This reduction has been due in part to the Energy Affordability Strategy which tackles energy affordability in Ireland through a combination of institutional supports, investments in improving the energy efficiency of housing stock and wide availability of advice on energy efficiency. This Government has also provided, through the SEAI, generous grants via Better Energy Homes and also provides home energy upgrades free of charge to vulnerable households via Better Energy Warmer Homes to reduce dependence on combustion of fossil fuels for home heating. In 2014 the Better Energy programme provided €53m grant support towards €118m energy upgrade works.
The carbon tax, as part of the overarching energy strategy, is a key tool to reduce emissions towards meeting our climate change commitments. It is well established that, in the long term, environmental damage caused by emissions of greenhouse gases will have a negative economic impact. The cost of this damage is substantial for society. The introduction of the carbon tax is aimed at internalising these externalities and the report of the SEAI shows, is having the desired impact.
Further to positively influencing behaviour, the carbon tax has generated much needed revenue for the Exchequer.
I am informed by the Revenue Commissioners that the yield from the Carbon Tax levy in each year 2011 to 2014 is as shown in the table following.
|
Carbon Tax |
2011 |
2012 |
2013 |
2014 |
|
|
€m |
€m |
€m |
€m |
|
Auto Diesel |
97.53 |
130.78 |
137.23 |
144.86 |
|
Petrol |
60.11 |
74.62 |
69.59 |
65.69 |
|
Aviation Gasoline |
0.04 |
0.05 |
0.03 |
0.02 |
|
Kerosene |
40.52 |
40.41 |
47.32 |
42.28 |
|
Marked Gas Oil |
48.95 |
54.72 |
60.39 |
54.17 |
|
Fuel Oil |
2.33 |
2.32 |
2.31 |
1.78 |
|
LPG (Other) |
5.43 |
6.52 |
7.58 |
7.53 |
|
Auto LPG |
0.20 |
0.03 |
0.07 |
0.11 |
|
Natural Gas |
43.13 |
44.51 |
56.54 |
51.68 |
|
Solid Fuel |
0.00 |
0.00 |
7.32 |
17.23 |
|
Total |
298.23 |
353.95 |
388.38 |
385.36 |
Please note that the receipts shown for Carbon Tax for 2014 are provisional and are subject to revision.
82. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the yield from stamp duty on share transactions on the Irish Stock Exchange, in each year from 2010 to 2014; and if he will make a statement on the matter. [24373/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that statistics relating to stamp duty net receipts can be found on the statistics webpage of the Revenue website at http://www.revenue.ie/en/about/statistics/index.html.
Specifically, a breakdown of stamp duty receipts in tabular form is available at http://www.revenue.ie/en/about/statistics/stamp-duty-receipts.pdf including the years 2010 to 2014.
The Deputy may wish to note that the net receipt figures for stamp duty paid on share transactions includes all companies which are incorporated within the State. No distinction is made between companies which are incorporated in Ireland and those quoted on the Irish Stock Exchange for the purposes of stamp duty collection. As such, a breakdown of stamp duty paid solely on share transactions on the Irish Stock Exchange is not available.
83. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the yield from the surcharge that was introduced on 1 January 2012 on persons with a gross incomes of over €100,000 on the amount of income sheltered by property reliefs, in each year from 2012 to 2014; and if he will make a statement on the matter. [24374/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the yield achieved by the Universal Social Charge (property relief surcharge) of 5%, applicable to individuals with income of €100,000 or more, on that part of an individual's taxable income which is sheltered by any of the property or area based incentive reliefs is as set out in the following table:
|
YEAR |
€M |
|
2012 |
10.7 |
|
2013 |
11.4 |
The available information in relation to the amount of income sheltered by property reliefs, including in respect of those individuals who are not subject to the property relief surcharge, involving property incentive relief claims totalling €574 million in 2012 and provisional claims totalling €450 million for 2013, the latest year available. The Deputy should note that these are the claims for the year, rather than the actual tax cost, and that the claims may not be fully used in the year due to insufficient income being available to absorb the claim, or due to the impact of the high income earner's restriction.
I am informed that the figures for 2014 are not yet available.
84. Deputy Michael McGrath asked the Minister for Finance the annual cost of tax relief for corporate investment in certain renewable energy projects, in each year from 2012 to 2014; and if he will make a statement on the matter. [24375/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that due to the relatively small number of claims in 2012 to 2014 that have claimed tax relief for corporate investment in renewable energy projects and their obligation to observe confidentiality for taxpayers and small groups of taxpayers, it is not possible to provide the information requested.
85. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the yield from excise duty and value added tax on the sale of alcoholic products, in each year from 2010 to 2014; broken down by reference to licensed premises and off-licences; and if he will make a statement on the matter. [24376/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the total amount of revenue generated for the Exchequer in each of the past five years from Excise and VAT on Alcohol is as shown in the table following. Please note that VAT receipts are estimated, as VAT returns do not require the yield from a particular product or activity to be identified. The receipts for 2014 are provisional and may be subject to revision.
|
|
Excise |
VAT |
|
Alcohol |
|
(Estimated) |
|
|
€m |
€m |
|
2010 |
826.4 |
1,010.5 |
|
2011 |
829.5 |
1,014.0 |
|
2012 |
846.1 |
1,088.8 |
|
2013 |
1,002.0 |
980.8 |
|
2014 (Prov) |
1,139.8 |
1,053.3 |
I am further advised that information regarding on or off premises sales is not available, as Excise is collected on release from bond store rather than at point of sale, and VAT receipts cannot be analysed in that detail.
