Peadar Tóibín
Ceist:249. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be generated from the removal of exemptions relating to horses and horse breeding. [26037/15]
Amharc ar fhreagraTax Code
Ceisteanna (249)
Freagraí scríofa
There are no specific exemptions relating to horses and/or horse breeding. Horse breeding is considered to be a trading activity for tax purposes and accordingly, profits from horse breeding are assessable to tax under Case I of Schedule D. Stallion stud fees were previously exempt from tax although all other profits from horse-breeding, such as the sale of yearlings, were always taxable. With effect from 1 August 2008, however, the exemption from tax for stud fees was removed and profits or gains from the sale of stallions are now fully taxable.
Tax Code
Ceisteanna (250)
Peadar Tóibín
Ceist:250. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be generated from a reduction of the pension fund allowable for tax purposes on retirement from €2.3 million to €1.2 million. [26038/15]
Amharc ar fhreagraFreagraí scríofa
The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million, which was subsequently reduced to €2.3 million in 2010 and further reduced in Budget 2014 and Finance (No 2) Act 2013 to €2 million with effect from 1 January 2014.
Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to either the Revenue Commissioners or to my Department by the administrators of pension schemes and personal pension arrangements. There is, therefore, no underlying data readily available on which to base reliable estimates of the savings that would arise specifically from a reduction to the SFT of the scale envisaged in the question.
Tax Code
Ceisteanna (251)
Peadar Tóibín
Ceist:251. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be generated from having 2% stamp duty on all property in excess of €500,000. [26039/15]
Amharc ar fhreagraFreagraí scríofa
I am assuming that the Deputy's Question is in relation to stamp duty on residential property, which is currently 1% on the first €1 million and 2% on the excess.
I am advised by the Revenue Commissioners that the estimated yield to the Exchequer from extending the 2% rate to residential property in excess of €500,000 would be €21 million.
Tax Code
Ceisteanna (252)
Noel Harrington
Ceist:252. Deputy Noel Harrington asked the Minister for Finance his plans to allow value-added tax to be reclaimed by commercial boat operators on small petrol engines, similar to the system in place for claiming back carbon tax; and if he will make a statement on the matter. [26047/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that the Value Added Tax (Refund of Tax) (No. 16) Order, 1983 provides for the repayment of VAT borne or paid by an unregistered fisherman on marked gas oil, marked kerosene and fuel oil used for combustion in the engine of a registered sea-fishing vessel as defined in the Order in the course of a sea-fishing business. In addition, there is provision for the repayment of mineral oil tax (including carbon tax) on tax-paid mineral oil (including petrol) used for the purpose of commercial sea navigation, including sea-fishing. The details of both repayment schemes are set out in Public Notice No. 1884 that is available on the Revenue website www.revenue.ie.
I have no plans to extend coverage of the VAT repayment scheme to petrol.
NAMA Legal Fees
Ceisteanna (253)
Pearse Doherty
Ceist:253. Deputy Pearse Doherty asked the Minister for Finance further to the Supreme Court judgment in the case of the National Asset Management Agency and the Office of the Commissioner for Environmental Information, the total legal fees incurred by the agency in the case to date; and the estimate of all legal costs, including those of the Office of the Commissioner for Environmental Information. [26060/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by NAMA that it has incurred total legal costs of €132,000 since the case commenced. As the Office of the Commissioner for Environmental Information is not a body under the aegis of the Department of Finance, details of their legal costs are not available to me.
Pension Levy
Ceisteanna (254)
Jerry Buttimer
Ceist:254. Deputy Jerry Buttimer asked the Minister for Finance if he will confirm that the levy on private pension funds will be brought to an end; if he will consider implementing measures to return the funds taken from such pension funds over a number of years; and if he will make a statement on the matter. [26133/15]
Amharc ar fhreagraFreagraí scríofa
The original 0.6% stamp duty levy on pension fund assets ended last year. The additional levy of 0.15% which I introduced for 2014 and 2015, mainly to help continue to fund Jobs Initiative, will also end after this year.
The position is that the equivalent value of all of the money raised from the stamp duty levy has been used to fund the wide range of measures introduced in the Jobs Initiative to protect existing jobs and to help create new jobs and the Initiative has been a success in this regard. The measures introduced include expenditure measures such as the Jobbridge and Springboard schemes, as well as a number of tax and PRSI incentives such as the reduction in the VAT rate from 13.5% to 9% for the tourism and hospitality sectors and the halving of the lower employer PRSI rate.
While the pension fund levies have ceased and will be ceased as I have already outlined, I have no plans to repay the pension fund levy collected as set out in the question. The value of the funds raised by way of the levy have been used to protect and create jobs and this has helped to create the improving financial and economic position of the State. Taxpayers to whom the impact of the levy may have been passed on by the chargeable persons responsible for the payment of the levy (the pension scheme trustees etc) will benefit from the changes which I began in Budget 2015 and which will continue in future Budgets to reduce the income tax burden on low and middle income earners.
Social Insurance
Ceisteanna (255)
Sean Conlan
Ceist:255. Deputy Seán Conlan asked the Minister for Finance the reason a person (details supplied) in County Monaghan has, despite numerous requests to the Revenue Commissioners, not been afforded reckonable credits on foot of contributions made between the years 1993 and 2001, despite having furnished the Revenue Commissioners with copies of receipts of moneys paid to them, revenue and confirmation from the person's accountant that the contributions were paid during those years; and if he will make a statement on the matter. [26143/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that there is no record of a request from the person concerned for confirmation of information on the lines set out.
A direct request for such confirmation was received by Revenue from the Department of Social Protection on 19 June last. Revenue has advised that it confirmed that the required minimum payments for PRSI have been made and that the person's contribution record can be updated accordingly so the matter should now be resolved.
Tax Code
Ceisteanna (256)
Michael Creed
Ceist:256. Deputy Michael Creed asked the Minister for Finance the tax treatment of payments received for lands compulsorily acquired for new road construction; the tax treatment of these payments where it is proposed to reinvest this compensation payment in new agricultural lands; and if he will make a statement on the matter. [26155/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that Capital Gains Tax (CGT) is charged in respect of a gain arising on a disposal of land compulsorily acquired for new road construction. The gain is treated as arising in the year in which the compensation is paid. The first €1,270 of such a gain is exempt from CGT where a disposal is made by an individual and that individual did not have any other gains in the year in which the disposal occurred. The current rate of CGT is 33%.
No specific relief from CGT is available where a payment received for lands compulsorily acquired for new road construction is reinvested in other agricultural land.
I also understand that when agricultural land is acquired under a compulsory purchase order (CPO), the acquiring authorities usually pay a premium over the agricultural value. The premium may cover the tax due on the disposal and the farmer may well have received the agricultural value of the land in his or her net proceeds after disposal. This means farmers are generally able to buy agricultural land of equivalent value to the land acquired under the CPO.
Tax Rebates
Ceisteanna (257)
Jack Wall
Ceist:257. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is due a tax refund; and if he will make a statement on the matter. [26186/15]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Revenue Commissioners that based on the information available to them for the person concerned, no refund of tax is due for the years up to and including 2014. Revenue has written to the person concerned as regards 2015 requesting certain information so that it can be determined if a refund is due for this year.
Banking Sector Staff
Ceisteanna (258)
Dara Calleary
Ceist:258. Deputy Dara Calleary asked the Minister for Finance if he, as the main shareholder in Allied Irish Banks on behalf of the State, has been made aware by the bank of plans to outsource its information technology support or any information technology related positions to external companies with effect from July 2015; the bank's relationship with companies (details supplied); if these companies are in any way involved in current information technology support or in potential future information technology support; his views on whether such outsourcing is not in the best interests of employment within Ireland; and if he will make a statement on the matter. [26197/15]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
I have been informed that the bank has not at this stage confirmed any agreement to outsource additional IT Services to third party providers. However, staff working in the Application and Development Management teams have been advised that contracts are expected to be finalised with two suppliers, in early July.
Should any such decision be confirmed then affected staff will be informed and the bank will enter into a full process of information and consultation with employee representatives, as required both by law and in line with engagement principles agreed with the IBOA.
The bank has also advised that there are no planned compulsory redundancies as part of this activity.
I have been informed by the bank that the companies involved in the proposed outsourcing are establishing Delivery Centres in Ireland (in consultation with the IDA) and both organisations are committed to expanding their operations in Ireland to service their Global clients.
Tax Code
Ceisteanna (259)
Anthony Lawlor
Ceist:259. Deputy Anthony Lawlor asked the Minister for Finance in view of the demand for social housing, if his Department has examined the possibility of a tax incentive scheme as a means of encouraging more landlords to let their properties to tenants in receipt of rent supplement; and if he will make a statement on the matter. [26205/15]
Amharc ar fhreagraFreagraí scríofa
My officials examine regularly all tax reliefs and incentives as part of the annual Budget and Finance Bill planning process, and consider possible changes. Any decisions taken by the Government in this regard are usually announced on Budget Day. I have no plans to introduce an incentive along the lines suggested by the Deputy.
As you will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. You will also appreciate that I must be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
Central Bank of Ireland Enforcement Actions
Ceisteanna (260)
Mattie McGrath
Ceist:260. Deputy Mattie McGrath asked the Minister for Finance the number of receivers, liquidators and examiners appointed in each of the past ten years, including those court appointed and Companies Registration Office recorded appointments, private bank appointments, appointments by other entities which have the power to do so; Central Bank of Ireland recording of receivers, liquidators and examiners to financial institutions; and if he will make a statement on the matter. [26214/15]
Amharc ar fhreagraFreagraí scríofa
While the Companies Registration Office (CRO) records appointments of receivers, liquidators and examiners, I have been informed by the Department of Jobs, Enterprise and Innovation that the CRO does not hold data in a format which would allow the extraction of the information sought.
In relation to appointments to regulated financial service providers, I have been given the following information by the Central Bank.
1. Newbridge Credit Union January 2012 Special Manager/Liquidator following transfer to PTSB;
2. Custom House Capital October 2011 Liquidator;
3. Bloxhams Stockbrokers May 2011 Liquidator;
4. Berehaven Credit Union July 2014 Liquidator;
5. Quinn Insurance Limited March 2010 Administrator;
6. ESG Reinsurance Ireland Limited December 2009 Administrator;
7. Accent Europe Insurance Limited December 2009 Administrator.
Tax Code
Ceisteanna (261)
Jack Wall
Ceist:261. Deputy Jack Wall asked the Minister for Finance the tax implications for persons who own their own houses through a mortgage with the bank and who have an opportunity to rent a home in another location; the costs that would incur if they were to rent their own home to another person; and if he will make a statement on the matter. [26219/15]
Amharc ar fhreagraFreagraí scríofa
There are a number of tax implications with regard to renting a mortgaged property. These apply for all landlords, regardless of whether the landlord is renting elsewhere.
Mortgage Interest Tax Relief
Section 244 of the Taxes Consolidated Act 1997 provides for tax relief in respect of interest paid on qualifying loans taken out to purchase, repair or improve a property that is used as a sole or main residence.
The relief, which is due to end in 2017, is available in respect of all qualifying home loans taken out between 1 January 2004 and 31 December 2012.
Persons that purchased their home within this specified date range are entitled to a 30% rate of relief on interest paid up to an interest ceiling of €20,000 if married/widowed and €10,000 if single, for the first seven years. Thereafter, the ceiling reduces for the remaining years to a maximum of €6,000 if married/widowed and €3,000 if single.
Revenue has informed me that the person would initially have been entitled to the relief at the 30% rate with effect from 1 January 2008 through to 31 December 2014. However the entitlement would have been discontinued from the time the person started to rent the property out because it no longer served as his/her sole or main residence.
If the person subsequently returned to live in the property as his/her sole or main residence, then he/she should reapply for mortgage interest relief.
Tax on rental income
I am informed by the Revenue Commissioners that the taxable amount of rental income from the letting of property is the gross rent less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act (TCA) 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; and
- interest on borrowed money used to purchase, improve or repair the property. This relief is restricted to 75% of the interest payable on borrowings related to residential property and is subject to full compliance with registration requirements of the Private Residential Tenancies Board.
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 on the actual cost of the fixtures and fittings at the rate of 12.5% per annum over a period of 8 years.
The Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income. It sets out the amount of rental income to be taken account of for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing the rental income for income tax purposes. This guide is available at: http://www.revenue.ie/en/tax/it/leaflets/it70.html.
Living City Initiative
Ceisteanna (262)
Robert Troy
Ceist:262. Deputy Robert Troy asked the Minister for Finance the progress of the living city initiative; if he will consider extending it to provincial towns to incentivise persons to live in town centres; and if he will make a statement on the matter. [26226/15]
Amharc ar fhreagraFreagraí scríofa
The Living City Initiative, which was enacted in the Finance Act 2013 and commenced on 5 May 2015, has been extended beyond the original pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny as well. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities was as a result of a comprehensive, independent ex ante cost benefit analysis, conducted by Indecon International Economic Consultants.
This Initiative is targeting particular areas of these six cities which are most in need of regeneration. I do not currently intend to extend the Initiative further than the six cities. However, my Department will closely monitor the progress of the Initiative in the six cities, and will keep the matter of potentially extending the relief further under review.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas in the six cities which are most in need of attention.
Financial Services Regulation
Ceisteanna (263)
Michael McGrath
Ceist:263. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland has issued any guidance to financial institutions, in terms of assessing loan applications, on the issue of considering evidence of gambling transactions on the bank statements of persons who have applied to the institution for a loan; and if he will make a statement on the matter. [26258/15]
Amharc ar fhreagraFreagraí scríofa
The lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I, as Minister for Finance, have no statutory role in relation to how they carry out their business.
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations.
I have been informed by the Central Bank that prior to offering a product or service, a regulated entity must gather and record sufficient information from the consumer appropriate to the nature and complexity of the product or service and must carry out an assessment of affordability to ascertain the personal consumer's likely ability to repay the debt over the duration of the agreement, in accordance with the requirements of the Consumer Protection Code 2012.
In the case of all mortgage products provided to personal consumers, the assessment must include consideration of the results of a test on the personal consumer's ability to repay the instalments, over the duration of the agreement, on the basis of a 2% interest rate increase, at a minimum, above the interest rate offered to the personal consumer. This test does not apply to mortgages where the interest rate is fixed for a period of five years or more.
Where the lender offers an introductory interest rate, it must carry out the 2% interest rate test on the variable interest rate to be applied after the introductory period has ended if known at the time of the offer of the introductory interest rate, or on the current variable interest rate, if the variable interest rate to be applied after the introductory period has ended is not yet known.
I understand that the Central Bank did not specifically refer to evidence of gambling in advising lenders on assessment of repayment capacity.
Property Tax Exemptions
Ceisteanna (264)
Charlie McConalogue
Ceist:264. Deputy Charlie McConalogue asked the Minister for Finance his plans to exempt those home owners in County Donegal whose houses are affected by Mica from the local property tax; and if he will make a statement on the matter. [26300/15]
Amharc ar fhreagraFreagraí scríofa
The legislation governing the administration of Local Property Tax (LPT) provides for a limited number of exemptions from LPT.
There is no specific exemption for properties affected by Mica and there are no plans to introduce such an exemption.
LPT operates on a self-assessment basis and it is a matter for the property owner in the first instance, to calculate the tax due based on his or her assessment of the market value of the property. When making an assessment, issues such as the presence of Mica would be one of the factors that a property owner should take into account in valuing their property.
Tax Exemptions
Ceisteanna (265)
Seán Kenny
Ceist:265. Deputy Seán Kenny asked the Minister for Finance his plans to promote the rent-a-room scheme in order to encourage homeowners to avail of it; and if he will make a statement on the matter. [26302/15]
Amharc ar fhreagraFreagraí scríofa
Section 216A of the Taxes Consolidation Act 1997 provides for the rent-a-room scheme. This scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence in order to bring about an increase in the availability of rental accommodation, particularly for the student sector.
The scheme provides an exemption from Income Tax, PRSI and USC on rent received where a person rents out a room or rooms in his or her principal private residence and the rent received does not exceed €12,000 per year. This was increased from €10,000 in Budget 2015.
In order to qualify for the exemption, it is necessary for the residential premises to be situated in the State and occupied by the individual as his or her sole or main residence during the tax year.
The relief only applies to individuals. It does not apply to companies or partnerships. In addition, an individual cannot avail of the relief in respect of payments for accommodation in the family home by a child of the individual. There is no restriction where rent is paid by other family members, for example, nieces or nephews.
The latest figures available relate to the tax year 2012 when the cost of the relief was estimated at €5.9 million and was availed of by 4,070 claimants. The corresponding 2011 cost was €5.6m and was availed of by 3,920 claimants.
The deputy may wish to note that the Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income, which includes details of the rent-a-room relief. This guide is available at: http://www.revenue.ie/en/tax/it/leaflets/it70.html.
Question No. 266 answered with Question No. 246.
Disabled Drivers and Passengers Scheme
Ceisteanna (267)
John McGuinness
Ceist:267. Deputy John McGuinness asked the Minister for Finance if an application for tax relief under the drivers and passengers with disabilities scheme will be approved in respect of a person (details supplied) in County Kilkenny. [26359/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that the person concerned applied for tax relief under the Drivers & Passengers with Disabilities Scheme on 2 April 2015. To avail of the scheme, the person with the disability must be in possession of a Primary Medical Certificate. On 8 April 2015 Revenue requested a Primary Medical Certificate from the person concerned. To date, the required Certificate has not been received by Revenue. The application will be processed as soon as the Certificate is provided to Revenue.
Financial Services Regulation
Ceisteanna (268)
Tom Fleming
Ceist:268. Deputy Tom Fleming asked the Minister for Finance further to Parliamentary Question No. 167 of 14 January 2015, if he will provide an update on proposals to form an alliance of post offices and credit unions to grant loans to the general public; and if he will make a statement on the matter. [26362/15]
Amharc ar fhreagraFreagraí scríofa
The credit union sector plays an important role in providing financial services nationally, but in doing so must retain the responsibility of ensuring members' funds are not put at undue risk.
As I noted in Parliamentary Question No. 167 of 14 January 2015, my Department received a proposal in August 2014 outlining a plan to establish and operate joint initiatives between participating Limerick County Credit Unions and An Post. This plan involves a Pilot Project that would see the channelling of some of An Post services through credit unions and also looks at the prospect of An Post providing some credit union services. Officials from my Department met with one of the proposers of this plan on the 29 August 2014 and again on 29 January 2015. In April 2015, Department officials and I met with a Galway credit union that expressed an interest to be involved in any pilot scheme between credit unions and An Post.
I am always open to considering proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector. The proposals to date have been at a very early stage of development and would require additional work. Also, such proposals would require agreement from all stakeholders before a pilot project could be rolled out.
The Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions and as such, any proposal in relation to credit unions would be subject to regulatory approval by the Regulator.
Tax Code
Ceisteanna (269)
Peadar Tóibín
Ceist:269. Deputy Peadar Tóibín asked the Minister for Finance if he will provide, in tabular form, the revenue that would be generated by providing a full pay-as-you-earn credit for self-employed persons with income up to €70,000, a reduced credit by 5% per €1,000 for gross income between €70,000 and €90,000, and a 0% credit on gross income in excess of €90,000. [26378/15]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Revenue Commissioners that the estimated first and full year cost of providing a PAYE credit to self-employed persons as set out by the Deputy is as follows:
|
Income Range |
First Year Cost €m |
Full Year Cost €m |
|
< €70,000 |
90 |
198 |
|
€70,000 - €90,000 |
11 |
20 |
|
Total Cost |
101 |
218 |
These figures are estimates for 2015, from the Revenue tax forecasting model using data for the year 2012, the latest year for which data are available, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
I am also advised by the Revenue Commissioners that, given the current tax structures, major issues would need to be resolved as to how in practice such a credit could be integrated into the current system and how this would affect the relative position of different types of income earners.
Eurozone Issues
Ceisteanna (270, 271)
Micheál Martin
Ceist:270. Deputy Micheál Martin asked the Minister for Finance if the German Finance Minister made contact with him before the European Union Council on 25 June 2015; and if he will make a statement on the matter. [26430/15]
Amharc ar fhreagraMicheál Martin
Ceist:271. Deputy Micheál Martin asked the Minister for Finance if the Greek Finance Minister was in contact with him before the European Union Finance Council on 25 June 2015; and if he will make a statement on the matter. [26431/15]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 270 and 271 together.
The European Council meeting of Heads of State and Government took place on 25 and 26 June in Brussels. The Taoiseach represented Ireland at the meeting. During the same week, a Euro Summit was convened at short notice on 22 June, which the Taoiseach also attended. In addition, special Eurogroup meetings on Greece were organised for Eurozone Finance Ministers on 22, 24, 25 and 27 June which I attended.
I can confirm that neither the German nor Greek Finance Ministers contacted me before any of these meetings.
I do, however, use the opportunity provided by the Eurogroup meetings, and indeed Ecofin meetings, to communicate with other Finance Ministers on a broad range of issues related to economic and financial matters. These can also be occasions to engage with colleagues in bilateral discussions on topical issues.