Written Answers Nos. 205 - 227
205. Deputy Jack Wall asked the Tánaiste and Minister for Social Protection the position regarding a claim to have a child dependency payment on a jobseeker's allowance claim backdated to September 2015 in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [26336/15]
Amharc ar fhreagraThe person concerned was paid the child dependent allowance (CDA) from the date her application for payment was received, i.e from 2 April 2015, up to the end of May 2015 when college finished. Arrears can only be paid from the date application is received from the claimant.
206. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection if a payment under the carer's allowance scheme will be reviewed in respect of a person (details supplied) in County Laois; and if she will make a statement on the matter. [26337/15]
Amharc ar fhreagraThe person concerned was notified on 20 May 2015 that she was awarded a carer’s allowance of €53.70 weekly, which consists of a personal rate of €9.00 and €44.70 for her 3 qualified children.
Carer’s allowance is a means-tested payment. The person in question is receiving a reduced rate of payment as a result of her means from her spouse/partner’s earnings in accordance with the statutory conditions of the scheme and the evidence provided in support of the application.
The person concerned has requested a review of this decision and that review is currently being processed. Once completed, the person concerned will be notified directly of the outcome.
207. Deputy Michael Fitzmaurice asked the Tánaiste and Minister for Social Protection in recognition of the fact that many persons being cared for by persons in receipt of carer's allowance, especially those with a disability, may also be in daily attendance at day care, health care or learning centres and that the majority of the care is provided and received outside of daytime business hours, if she will consider making a small increase in the maximum number of hours a person in receipt of carer's allowance may work; and if she will make a statement on the matter. [26339/15]
Amharc ar fhreagraIn order to qualify for carer’s allowance, the applicant must be providing full time care and attention to a person in need of such care.
The full-time care provision is moderated by permitting the carer to work or engage in education or training outside the home for up to 15 hours per week and still be considered to be providing full time care and attention.
This moderation of the full-time care provision represents a reasonable balance between meeting the requirement for providing full-time care for the care recipient and the needs of the carer to engage in employment or education. It also serves the additional purpose of reducing the social alienation experienced by many carers.
I have no plans to change the conditionality around the maximum hours at this time.
208. Deputy Michael McCarthy asked the Tánaiste and Minister for Social Protection if she will give due consideration to including sufferers of epilepsy, a long-term condition, in the free travel scheme; and if she will make a statement on the matter. [26344/15]
Amharc ar fhreagraThere are currently approximately 828,000 people in receipt of free travel at an annual cost of €77 million per annum.
The free travel scheme is available to all people aged over 66 living permanently in the State. Applicants who are under age 66, including those with epilepsy and other long-term medical conditions, must be in receipt of a qualifying payment in order to qualify for the scheme. The qualifying payments for those aged under 66 are invalidity pension, blind pension, disability allowance, carer’s allowance or an equivalent social security payment from a country covered by EC Regulations or one with which Ireland has a Bilateral Social Security Agreement.
Any decision to extend the scheme to persons who are not in receipt of a primary qualifying payment would have budgetary consequences and would have to be considered in the context of budget negotiations.
209. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection when payment of a carer's allowance will issue in respect of a person (details supplied) in Dublin 12; and if she will make a statement on the matter. [26369/15]
Amharc ar fhreagraI confirm that the department received an application for carer’s allowance from the concerned on the 4th June 2015. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.
210. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection if she will provide an update on the status of an application for a carer’s allowance in respect of a person (details supplied) in Dublin 12; and when a decision will issue. [26377/15]
Amharc ar fhreagraI confirm that the department received an application for carer’s allowance from the person in question on the 4th June 2015. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.
211. Deputy John McGuinness asked the Tánaiste and Minister for Social Protection further to a previous parliamentary question in respect of a person (details supplied) in County Kilkenny, if the circumstances will be examined as a matter of urgency relative to an overpayment made to the person by her Department with a view to accepting a payment of €5 per week as an initial arrangement, based on the person's financial circumstances and the hardship that a higher repayment would cause; and if she will make a statement on the matter. [26382/15]
Amharc ar fhreagraIn accordance with the Social Welfare Consolidation Act, 2005, as amended by Section 13 of the Social Welfare Act, 2012, overpayments may be recovered by way of a weekly deduction from a person's ongoing Social Welfare entitlement up to an amount equivalent to 15% of the weekly personal rate payable without consent.
In the case of the person concerned, 15% of the weekly personal rate would amount to €29.00 weekly. However, having given due consideration to information supplied by the person in question regarding his financial circumstances and taking account of the magnitude of the debt, it was decided that the debt will be recouped by weekly deductions of €10.00 from his Invalidity Pension payment commencing from 25 June 2015.
Should the financial circumstances of the person concerned change in the future the recovery plan may be reviewed at that time.
212. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the estimated revenue that would be raised in 2016 if the rate of employer's pay related social insurance was increased by 1% on pay up to €100,000 per annum and increased to 15.75% on pay exceeding €100,000 per annum. [26385/15]
Amharc ar fhreagraThe estimated revenue that would be raised in a full year if the Class A rate of employer's PRSI contribution was increased by 1% on pay up to €100,000 per annum and increased to 15.75% on pay exceeding €100,000 per annum would be €816m. The yield in 2016 would be approximately 85% of the full year yield.
This is on the basis that the rates of 8.5% and 10.75%, as currently applied, would increase to 9.5% and 11.75%, respectively, and that the 15.75% rate would only apply to the income in excess of €100,000.
These costings do not take into account any resultant changes in employer and employee behaviour.
213. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection if she will address a matter (details supplied) regarding pensions; and if she will make a statement on the matter. [26386/15]
Amharc ar fhreagraThe State pension is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement, all contributions paid over their working life from when they first enter insurable employment until pension age are taken into account when assessing whether they are entitled to State pension contributory, and the level of any such entitlement. The Social Welfare Consolidation Act 2005 defines insurable employment as “employment such that a person, over the age of 16 years and under pensionable age, employed in that employment would be an employed contributor". To qualify for a state pension a person must –
- have at least 520 paid contributions, and
- satisfy a yearly average test (a yearly average of 48 contributions paid and/or credited is required for a maximum rate pension, reduced rates may be paid at various levels where the yearly average is between 10 and 47).
Once a person reaches pension age he/she is no longer in insurable employment and therefore is not liable to pay PRSI contributions. There are no provisions in legislation which allow a person to pay contributions beyond pension age.
If legislation was to be introduced to exempt those with 40 years of contributions from paying further PRSI, it would reduce the yearly average of those people at retirement, and they might consequently qualify for a lower rate of State pension (contributory), depending on their circumstances. It would also mean, before retirement, that they might lose entitlement to working age payments, such as Jobseekers Benefit and Illness Benefit. It would also reduce the level of PRSI payments made into the Social Insurance Fund, thereby requiring (a) an increase in the Exchequer subvention to the fund, (b) an increase in the rate of PRSI paid during working life, and/or (c) a reduction in the rates of PRSI-funded payments, such as the State pension (contributory).
214. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection the position regarding the case of a person (details supplied) and the €5 deduction out of that person's claim which was in place due to that person's spouse's claim but is still in place even though the person no longer lives with the spouse. [26425/15]
Amharc ar fhreagraAccording to the records of this Department the person concerned had two overpayments assessed against him with a current overpayment balance owed of €7,080.69, and with repayment deductions at the rate of €5.00 per week from his jobseekers allowance claim. The first overpayment arose as the person concerned claimed for his spouse as an adult dependant on his claim while his spouse was in receipt of a payment in her own right. The second overpayment arose as the person concerned was claiming for his spouse as an adult dependant while his spouse was in employment. A review of the amount of the overpayment deduction is currently being undertaken and the person concerned will be advised of the outcome once completed.
215. Deputy Tom Fleming asked the Minister for Finance if he will provide funding for a standard bank account through the post office network to ensure financial inclusion for all; and if he will make a statement on the matter. [25868/15]
Amharc ar fhreagra224. Deputy Ruth Coppinger asked the Minister for Finance his views on delivering a standard bank account through the post office network to increase financial inclusion; and if he will make a statement on the matter. [25731/15]
Amharc ar fhreagraI propose to take Questions Nos. 215 and 224 together.
The Strategy for Financial Inclusion called for the nationwide launch of a Standard Bank Account as a first step in promoting Financial Inclusion. A pilot project for a Standard Bank Account was run, which finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the pilot, which the Financial Inclusion Working Group (FIWG) felt was disappointing.
The Report of the Working Group on the pilot project noted a number of reasons for this, including the view of stakeholders that one of the key elements required as part of the preparations for a successful national roll-out of a Standard Bank Account is greater involvement by An Post and the credit unions.
My Department is currently transposing the Payment Accounts Directive which requires that all consumers legally resident in the EU must have access to a payment account with basic features, regardless of their financial circumstances. The Directive also allows Member States to make provision to promote financial inclusion of unbanked, vulnerable consumers. The Directive must be transposed by September 2016.
My Department is carefully considering how to make progress on this issue, in light of the requirements of the Payment Accounts Directive and the experience of the Standard Bank Account pilot project. My Department is working closely on the matter with other relevant Government departments.
216. Deputy Robert Troy asked the Minister for Finance the number of persons in County Westmeath who have not paid their property tax to date; the number who have paid; and the number eligible for a waiver. [26010/15]
Amharc ar fhreagra217. Deputy Robert Troy asked the Minister for Finance the number of persons in County Longford who have not paid their property tax to date; the number who have paid; and the number eligible for a waiver. [26011/15]
Amharc ar fhreagraI propose to take Questions Nos. 216 and 217 together.
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.
A breakdown showing compliance rates by local authority is available at the above cited webpage. This confirms that, for 2015, returns are filed for around 16,400 and 33,800 properties in Longford and Westmeath respectively. These equate to estimated compliance rates of 94.4% and 94.7%.
In addition, the webpage has a breakdown showing cost of exemptions by local authority. However, further breakdowns are not available on the number of properties exempt by local authority.
Updates to this information will be provided in due course.
218. Deputy Sean Fleming asked the Minister for Finance if persons may claim tax relief on invoices relating to orthodontic health care under the cross-border directive, as well as receiving a refund from the Health Service Executive; and if he will make a statement on the matter. [26326/15]
Amharc ar fhreagraSection 469 of the Taxes Consolidation Act 1997 provides for relief for health expenses defrayed in the provision of orthodontic health care by an individual on his or her own behalf or on behalf of others. Where certain orthodontic care is available in Ireland but the customer opts to have the treatment outside the State expenses may qualify for tax relief.
However, Section 469(3)(c) TCA 1997 provides that expenses are not regarded as having been defrayed by the individual in so far as they are recouped in any way by the individual, or by any dependant of the individual, from a public or local authority, or under a contract of insurance or by way of compensation or otherwise.
Therefore the individual will be able to claim relief for health expenses less the amount of any refund received from the Health Service Executive.
Further information in relation to relief for health expenses is available from the Revenue website at: http://www.revenue.ie/en/tax/it/leaflets/it6.html.
219. Deputy Dominic Hannigan asked the Minister for Finance if he will consider a 5% rebate from the local property tax to be provided for housing estates in county council administered areas where no estate management is undertaken by the council staff and instead is undertaken by local residents associations; and if he will make a statement on the matter. [25691/15]
Amharc ar fhreagraThe introduction of a local property tax is part of a broader approach to the taxation of property. The aim is to replace some of the revenue from transaction based taxes, which have proven to be an unstable source of Government revenue, with an annual recurring property tax, which international experience has shown to be a stable source of funding.
The Government decided that the LPT should be centred on the principles of equity, transparency and simplicity; and that a universal liability should apply to all owners of residential property with a limited number of exemptions and reliefs. Limiting the reliefs available allows the rate to be kept to a minimum for those liable persons who do not qualify for relief.
With regard to properties in estates where the estate has not been taken in charge by the local authority, I am advised by the Department of the Environment, Community and Local Government that the taking in charge of residential estates by local authorities is provided for under section 180 of the Planning and Development Act 2000, as amended. Section 180(1) provides, in relation to estates which have been completed to the satisfaction of the planning authority in accordance with the planning permission, that the planning authority must, if requested to do so by the developer or by the majority of the owners of the houses involved, initiate the procedures for taking the estate in charge.
I understand that the Department of the Environment, Community and Local Government issued updated policy guidance to planning authorities on 26 February 2008 on Taking in Charge of Residential Developments/Management Arrangements. This required each planning authority to develop or update, as appropriate, its policy on taking in charge by the end of June 2008 which is based on the following principles (among others):
- Certain core facilities/infrastructure to be taken in charge on request - public roads and footpaths, unallocated surface parking areas, public lighting, public water supply, foul and storm water drainage and public open spaces;
- The procedures for taking in charge to begin promptly on foot of a request by the majority of the residents in the development or by the developer, as appropriate. Protocols, including time frames, must be set out by planning authorities to respond to requests for taking in charge.
With regard to properties in managed estates, to which management fees apply, such properties would have been purchased by their owners in the knowledge that they would be taking on commitments to partake in, and to fund, the management of the estate, and that it was the intention that many such estates would not be taken in charge by local authorities, nor would it be appropriate for local authorities to do so.
Management fees in these estates can include services such as refuse collection, maintenance of common areas as well as a sinking fund for certain repairs to the buildings, depending on circumstances. These are costs which homeowners in other households have to fund themselves for their own properties.
A requirement to pay management fees, or to contribute to estate management via a residents association, is not relevant in determining whether a property is subject to the LPT. Accordingly, whilst those who are liable for management fees to property management companies, or are party to resident association arrangements, may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees. There are no plans to change the basis of liability to LPT.
Revenue from the LPT accrues to local authorities and supports the provision of local services. Local authorities provide a broad range of services in the public realm, which benefit the wider community. The proper functioning of these services are important for the wellbeing of every community and household. These include: fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities. The benefits of these services accrue to all members of society.
220. Deputy Anthony Lawlor asked the Minister for Finance when he expects to receive a review of the operation of local property tax; when he expects to rectify the anomaly whereby pyrite-affected homeowners are expected under the legislation to pay for expensive core sample testing, completely unnecessarily, in order to avail of their entitlement to the exemption from the tax; his views on whether such testing is excessive and unnecessary given that the Revenue Commissioners' staff are not trained to interpret either X-ray diffraction or petrographic testing; and if he will make a statement on the matter. [25697/15]
Amharc ar fhreagraThe review to which the Deputy refers has regard to a number of issues which have arisen in relation to the administration of the LPT including recent residential property price developments, the overall yield from LPT and the desirability of achieving relative stability in LPT payments and the matter of the operation of the pyrite exemption provisions. I understand the Review report is presently in the final stages of drafting. It is intended that the Review be presented to me no later than summer 2015.
Revenue administers applications for exemption from LPT for residential properties that have been certified as having "significant pyritic damage". The property owner is specifically required to support a claim for the exemption by submitting a certificate, to Revenue, issued by a competent person as detailed in I.S. 398; Reactive pyrite in sub-floor hardcore material Part 1: Testing and categorisation protocol, published by the NSAI. As these certificates are issued by competent experts, Revenue has no role in interpreting the tests referred to by the Deputy.
It is important that any changes that may be made do not go beyond the objectives of providing a temporary exemption only for homes with "significant pyritic damage". Without prejudice to the outcome of the review to which I have referred, the resolution of the matter may necessitate a change in the relevant provisions of the Finance (LPT) Act 2012 (as amended) and/or the Finance (LPT) (Pyrite Exemption) Regulations. If it is the case that legislative change is required, I will consider with the Revenue Commissioners the possibilities for applying them in advance on an administrative basis.
221. Deputy Jerry Buttimer asked the Minister for Finance if he will redress the imbalance in the different tax treatment of commercial and residential property investments; and if he will make a statement on the matter. [25716/15]
Amharc ar fhreagraI assume the Deputy is referring to the different deductions available against rental income for commercial and residential property. In that regard, I am informed by the Revenue Commissioners that rental income for tax purposes is the gross rental income less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act 1997. The main deductible expenses are:
- any rent payable by the landlord in the case of a sub-lease;
- the cost to the landlord of any goods provided or services rendered to a tenant;
- the cost of maintenance, repairs, insurance and management of the property;
- the interest on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with Private Residential Tenancies Board registration requirements for all tenancies that existed in relation to the property in the relevant year); and
- the payment of local authority rates.
In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
Section 5 of Finance Act 2009 imposed a cap of 75% on the amount of interest on loans used to purchase, improve or repair a rented residential premises that can be deducted in computing the amount of a person's taxable rental income. This restriction was introduced in the April 2009 supplementary budget in respect of all residential lettings as part of an urgent revenue-raising package aimed at stabilising the public finances. The restriction does not apply to loans taken out to finance non-residential property and the full amount of interest can continue to be deducted in such cases.
Local Property Tax
A deduction is not allowed in respect of LPT as it is not one of the specified deductions provided for in section 97(2) of the TCA.
Local Property Tax is an annual self-assessed tax on residential properties in the State and is administered by the Revenue Commissioners in accordance with the Finance (Local Property Tax) Act 2012 (as amended).
Stamp Duty
The rate of stamp duty applicable to Conveyances/Transfers of Non-Residential Property is 2%. The rates of stamp duty applicable to Conveyances/Transfers of Residential Property are: 1% for the first €1,000,000 and 2% on the excess over €1,000,000.
Commercial Rates
I am advised by the Minister for the Environment, Community and Local Government that properties used for commercial purposes are subject to rates levied by local authorities which are based on values entered on the valuation lists by the independent Commissioner of Valuation under the Valuation Acts 2001 (as amended). That Act determines the categories of properties that are liable for rates purposes.
As the Deputy will know, all tax reliefs and incentives are subject to regular review as part of the annual Budget and Finance Bill planning process. Any decisions taken by the Government in this regard are usually announced on Budget Day. If the Deputy would care to specify in more detail where he considers an imbalance exists then I will be pleased to ask my officials to investigate.
222. Deputy Jerry Buttimer asked the Minister for Finance if he will consider extending similar tax treatment, as applies to the real estate investment trust scheme, to residential property owners; and if he will make a statement on the matter. [25717/15]
Amharc ar fhreagraA REIT is a collective investment vehicle which provides the same after-tax returns to investors as direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which would otherwise apply.
The double layer of taxation applies where an individual invests in property through a company. The company must pay corporation tax on rental profits and gains and when the after-tax profits are paid out to the investors (as dividends), income tax is then payable on the dividends received (i.e. on the profits which have already been subject to corporation tax).
The double layer of taxation does not apply to residential property owners directly holding property.
The purpose of a REIT is to remove this double layer of taxation, which has tended to result in individual investors holding individual, highly-mortgaged properties. This has exposed investors to significant risk in times of falling equity and falling rental returns.
A REIT is exempt from corporation tax on qualifying income and gains from rental property, subject to a high profit distribution requirement to shareholders (the Irish distribution requirement is 85% of property profits). Under Irish REITs legislation, there is no distinction in tax treatment between residential and non-residential property.
Irish investors are subject to tax on receipt of REIT dividends in broadly the same way as if they had invested directly in rental property.
When individuals invest directly in property, they are subject to income tax on their rental profits and capital gains tax on sales proceeds.
Similarly, REIT dividends will be taxable income for individual shareholders, so their rate of tax will depend on what other income they have in the relevant tax year. Marginal rate Irish taxpayers will be liable to income tax at their marginal rate on REIT dividends, and taxpayers under the marginal rate threshold will pay the standard rate of tax on their dividends.
Foreign individual investors will receive REIT dividends net of Dividend Withholding Tax at 20%, which may be mitigated under the terms of a double tax agreement. Foreign investors may also be subject to further tax in their country of residence.
223. Deputy Jerry Buttimer asked the Minister for Finance if he will consider increasing the proportion of mortgage interest on rented residential property that is tax deductible; if he considers that such a measure would help to counteract the increase in rents on residential properties; and if he will make a statement on the matter. [25718/15]
Amharc ar fhreagraThis question relates to the interest restriction applying to residential lettings, whereby the deductibility of interest in computing taxable rental income from residential property (insofar as it would otherwise be allowable) is limited to 75% of such interest. The restriction was introduced in the April 2009 Supplementary Budget in respect of all residential lettings as part of an urgent revenue-raising package aimed at stabilising the public finances.
I am informed by the Revenue Commissioners that for the year 2013, the latest year for which relevant information is available, and making certain assumptions about the data available to Revenue, it is estimated that the cost from increasing the level at which individuals can claim interest repayments against tax for residential rental properties from 75% to 100% could be in the order of €80 million. This is based on the assumption that tax relief was allowed at the top income tax rate of 41% and the figures provided could be regarded as the maximum Exchequer cost.
Rental income of companies is returned as net of interest on borrowings and the figures for interest are not separately distinguished in Corporation Tax returns. There is, therefore, no basis for an estimate of the cost of changing the tax relief for corporate landlords.
As with all proposals to change reliefs relating to property, there are a number of considerations which must be taken into account to correctly target the measure and ensure this success. As the Deputy will know, all tax reliefs and incentives are subject to regular review as part of the annual Budget and Finance Bill planning process. Any decisions taken by the Government in this regard are usually announced on Budget Day.
225. Deputy Áine Collins asked the Minister for Finance if there is a special tax relief for land that was previously owned by the Land Commission and is now being sold to developing farmers under the restructuring scheme. [25750/15]
Amharc ar fhreagraI understand that this question relates to transactions to which capital gains tax (CGT) relief for farm restructuring under section 604B Taxes Consolidation Act 1997 may be sought. The details relating to this relief are set out hereunder. As regards a special tax relief for land previously owned by the Land Commission, I can say that no specific relief in relation to such land has ever been provided for under CGT legislation. I would require much more detailed information on the nature of the tax relief being referred to before I could comment more generally. My understanding is that the Land Commission was dissolved in 1999 and that any questions regarding its activities and responsibilities would be a matter for my colleague, the Minister for Agriculture, Food and the Marine, Mr Simon Coveney TD.
As regards the CGT farm restructuring relief, I am advised by the Revenue Commissioners that section 604B Taxes Consolidation Act 1997, as amended by section 49 Finance Act 2014, provides for relief from CGT on disposals of farm land for farm restructuring.
The relief applies to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2016 where Teagasc has certified that a sale and purchase or an exchange of agricultural land was made for farm restructuring purposes. The initial sale or purchase, or the exchange, must occur in the relevant period and the subsequent sale or purchase must occur within 24 months of that sale or purchase.
Full relief from CGT will be given where the consideration for the purchase of agricultural land is equal to or greater than the consideration for the sale of such land. Where the consideration for the purchase of agricultural land is less than the consideration for the land that is sold, relief will be reduced on a proportionate basis. In the case of an exchange of agricultural land, full relief from CGT will be given where the value of the land that is exchanged is equal to or greater than the value of the other land that is exchanged. Where the value of the land that is exchanged is less than the value of the other land that is exchanged, a corresponding reduction will apply to the relief that will be given.
Provision is made for the clawback of the relief where qualifying land in respect of which relief has been given is disposed of within 5 years of the date of the purchase or exchange of that land. A clawback does not apply where the disposal arises under a compulsory purchase order.
A prerequisite to any disposal and acquisition of farm land qualifying for this relief is that an application for a farm restructuring certificate is made to Teagasc, that Teagasc grants such a certificate and that such certificate has not been withdrawn. Guidelines relating to the application for, and the issue of, a farm restructuring certificate are available on the Department of Agriculture, Food and the Marine's website.
226. Deputy Paul Murphy asked the Minister for Finance the number of C2 subcontractors who were registered in each of the construction, meat processing and forestry sectors, for each year from 2008 to 2014; and the amount of tax paid by each sector in each of these years arising from the C2 arrangement. [25752/15]
Amharc ar fhreagra227. Deputy Paul Murphy asked the Minister for Finance if the national C2 monitoring group is still operational; and the number of times it has met in the past five years, by year. [25753/15]
Amharc ar fhreagraI propose to takes Questions Nos. 226 and 227 together.
I dealt comprehensively with questions relating to C2 Certificates in my responses to Parliamentary Question No. 9433/15 on 4 March 2015 and Parliamentary Question No. 13903/15 on 15 April 2015, both of which were put down by the Deputy.
I previously explained that the National C2 Monitoring Group no longer exists and that the C2 Certificate was discontinued with effect from 1 January 2012 when the paper based Relevant Contracts Tax (RCT) system was replaced by the electronic Relevant Contracts Tax (eRCT) system.
While the National C2 Monitoring Group no longer operates, monitoring abuses of the tax and duty systems, including the eRCT system, is a key element of Revenue's day to day compliance programmes.
Under the C2 Certificate regime in place up to 31 December 2011, a sub-contractor applied to Revenue for a C2 Certificate which was issued only to tax compliant subcontractors. Those sub-contractors in possession of a C2 Certificate received payments from principal contractors without having tax deducted at source from those payments whilst those sub-contractors not in possession of a C2 Certificate had tax deducted at source, at the rate of 35%, from payments made to them by principal contractors.
Under the eRCT system, a sub-contractor is allocated a deduction rate - 0%, 20% or 35% - at which tax is to be deducted from payments made by a principal contractor to that sub-contractor under a contract in the construction, meat processing and forestry sectors. The rate of tax deduction to apply depends on the sub-contractor's tax compliance record. A person who previously held a C2 Certificate under the old regime, and whose tax compliance record has remained good, is very likely to be allocated a 0% tax deduction rate in the current regime.
As to the amount of tax paid under the "C2 arrangement", as I have explained, holding a valid C2 Certificate meant that a subcontractor received payments from a principal contractor without having tax deducted at source from those payments and therefore the matter of tax paid does not arise in such cases.
As to the Deputy's question about the number of registered subcontractors who held a C2 Certificate, as explained, the C2 Certificate was abolished at the end of 2011. A person who previously held a C2 Certificate under the old regime, and whose tax compliance record has remained good, is very likely to be allocated a 0% tax deduction rate in the current regime. The number of subcontractors at the 0% allocated rate of tax deduction under the new system is as follows:
|
Tax Year |
Number of sub-contractors with 0% rate of tax deduction |
||
|
|
Construction |
Meat Processing |
Forestry |
|
2012 |
30,015 |
355 |
533 |
|
2013 |
30,606 |
349 |
536 |
|
2014 |
31,981 |
362 |
568 |
