Written Answers Nos. 77-90
77. Deputy Pearse Doherty asked the Minister for Finance the number of staff at a senior level who have left the National Asset Management Agency in each of the past three years, by grade; and if he will make a statement on the matter. [29368/15]
Amharc ar fhreagraOn the basis that "staff at a senior level" is senior managers who report directly to the NAMA Chief Executive, the number of staff at a senior management level who left NAMA in each of the past three years and to date in 2015, and their titles, are set out as follows:
|
- |
2012 |
2013 |
2014 |
YTD 2015 |
|
Number |
1 |
- |
1 |
1 |
|
Title |
Head of Lending |
- |
Head of Asset Management /Board Member |
Head of Asset Recovery |
78. Deputy Pearse Doherty asked the Minister for Finance the number of staff at a senior level who have left the National Treasury Management Agency in each of the past three years, by grade; and if he will make a statement on the matter. [29369/15]
Amharc ar fhreagraThe numbers of staff at senior management level who have left the NTMA in the years 2012 to 2014 and in 2015 to date are set out in the table. The figures do not include staff assigned to NAMA which are the subject of a separate question by the Deputy.
|
|
2012 |
2013 |
2014 |
2015 |
|
Chief Executive |
- |
- |
- |
1 (retired) |
|
Senior Management Team |
- |
3 |
1 (retired) |
- |
79. Deputy Thomas Pringle asked the Minister for Finance if he will confirm that the recent consumer protection legislation will regulate credit service providers, but not the special purpose vehicles which handle their loans, as in the case of Irish Bank Resolution Corporation mortgages; and if he will make a statement on the matter. [29380/15]
Amharc ar fhreagraBorrowers whose loans are sold to unregulated entities are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 which has just been enacted. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. This Act will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad.
Owners of loan books, including Special purpose Vehicles, who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm. In other words, some regulated entity will be responsible for all credit agreements.
80. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding bank employees; and if he will make a statement on the matter. [29426/15]
Amharc ar fhreagraAs 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.
I have been informed that AIB has announced plans to outsource additional IT Services to third party providers and will now enter into formal consultation processes with employee representatives as required both by law and in line with engagement principles agreed with the IBOA.
I have been further informed that the companies involved in the proposed outsourcing are establishing Delivery Centres in Ireland (in consultation with the IDA). Both organisations are committed to expanding their operations in Ireland to service their Global clients and one of these already provides IT Services to AIB. The bank also advises that there are no planned compulsory redundancies as part of this activity.
81. Deputy Pearse Doherty asked the Minister for Finance the number of applications received for a banking licence in each of the past five years; the results of each application; and in each case if the person was Irish or foreign based. [29470/15]
Amharc ar fhreagraI am informed by the Central Bank that the number of applications for a banking licence which it received in the past five years is as follows:
2015 (YTD) None
2014 None
2013 Dell Bank International Limited licence granted [US]
2012 None
2011 None
2010 None
In addition to the above, EBS Limited was granted a banking licence in 2011 on the conversion of EBS from a building society to a bank.
It should be noted that the Central Bank operates an internal two-step process to bank licensing. Step 1 is whereby the potential applicant submits a proposal for authorisation. This is then reviewed by the Central Bank and if it is considered that the proposal meets the criteria for the granting of a banking licence then, under Step 2, an application is submitted. If the proposal does not meet the criteria then it is returned to the potential applicant. I am informed by the Central Bank that the data provided in this response refers only to applications received at Step 2.
82. Deputy Paul Murphy asked the Minister for Finance his views on reducing the value added tax rate on telecom utility bills for pensioners. [29482/15]
Amharc ar fhreagraThe VAT treatment of goods and services is governed by EU law with which Irish VAT law must comply. The rate of VAT that applies to a particular good or service is determined by the nature of the good or service, and not by the status of the customer. There is no provision in European VAT law that would allow the application of a reduction or removal of VAT on telecom utility bills to customers over a certain age.
83. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be generated from reducing the entry level adjusted income threshold to €120,000, and the full restriction level to €180,000, with an effective tax rate of 38%. [29498/15]
Amharc ar fhreagraI assume that the Deputy is referring to the restriction on the use of certain tax reliefs and exemptions by high income individuals. Data to provide a definitive estimate of the yield from the measures outlined by the Deputy is not readily available. However, based on personal income tax returns filed for the year 2013, the latest year for which data is available, it is tentatively estimated that reducing the entry level adjusted income threshold to €120,000 and full restriction level to €180,000 and to impose an effective income tax rate of 38% on those subject to the full restriction, would generate an additional yield in the order of €67 million. USC and PRSI would also be payable by the individuals concerned.
It should be noted that this estimate takes no account of any changes in taxpayer behaviour which might arise from the introduction of such a change.
In relation to effective income tax rates I would point out that, a single employee earning €180,000 this year would have an effective income tax rate of 34.4%, where only the personal and PAYE tax credits were claimed.
84. Deputy Pearse Doherty asked the Minister for Finance the revenue that was generated when the standard fund threshold was reduced from €5 million to €2.3 million in 2010. [29499/15]
Amharc ar fhreagra85. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be generated by disallowing tax relief for pensions when a standard fund threshold of €1.3 million is exceeded by a person. [29500/15]
Amharc ar fhreagra87. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No.114 of 24 June 2015, in which he estimated that a reduction in the standard fund threshold to €2 million and the increase in the current single factor of 20 would raise €120 million in 2014, the expected yield if the standard fund threshold was reduced to €1.5 million, and the current single factor of 20 used to value the defined benefit pensions for the standard fund threshold increased factors by 20%, varying with age. [29502/15]
Amharc ar fhreagraI propose to take Questions Nos. 84, 85 and 87 together.
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.
The full year yield from the reduction in the SFT to €2.3 million with effect from 7 December 2010 was estimated at the time of the change at €20 million.
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. The estimate of the yield of €120 million in 2014 and in a full year arising from the changes to the SFT regime introduced in Finance (No 2) Act 2013 was arrived at following considerable internal work over a period by my Department involving, among other things, data gathering and consultation with private sector sources relating to the specific changes to be made. There is no readily available underlying data or methodology on which to base reliable estimates of the savings that would arise from further changes to the SFT of the scale envisaged in the questions.
I would also like to clarify some points arising from the questions raised. The Deputy might note that the SFT regime does not involve the non-application of tax relief to pension contributions. Instead, the regime addresses the problem of pension overfunding and excessive pension accrual by imposing a much higher effective tax charge on the value of retirement benefits above set limits when they are drawn down, thus discouraging the accumulation through contributions of large pension funds in the first place or unwinding the tax advantage of such overfunding by way of the higher effective tax charge.
Finally, the valuation factors to be used for establishing the capital value of defined benefit pension rights at the point of retirement for SFT purposes, and which accrue after 1 January 2014, were changed by Finance (No 2) Act 2013 from the previous single factor of 20 to a range of higher age-related valuation factors that vary with the individual's age at the point at which the pension rights are drawn down. The higher factors range from 37 for defined benefit pension entitlements drawn down at age 50 or under to a factor of 22 for pensions drawn down at age 70 or over.
86. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer by reducing the earnings cap for pension contributions from €115,000 to €60,000. [29501/15]
Amharc ar fhreagra104. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be generated through the abolition of tax relief for employer pension contributions to employee pension funds. [29521/15]
Amharc ar fhreagra105. Deputy Pearse Doherty asked the Minister for Finance the value of employer pension contributions to employee pension schemes in 2014. [29522/15]
Amharc ar fhreagra106. Deputy Pearse Doherty asked the Minister for Finance the value of employee pension contributions to their pension schemes in 2014. [29523/15]
Amharc ar fhreagra107. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be generated by capping employer pension contributions at €60,000 per employee. [29524/15]
Amharc ar fhreagraI propose to take Questions Nos. 86 and 104 to 107, inclusive, together.
Regarding the first question, I am informed by Revenue that, based on the latest information available, a reduction of the €115,000 ceiling to €60,000 per annum on the annual earnings limit for determining maximum allowable pension contributions for pension purposes, is tentatively estimated to yield in the region of €135 million.
Regarding the second question, I am informed by Revenue that in 2013, the latest year for which data are available, the cost to the Exchequer of tax relief for employer pension contributions to employee pension funds, was in the order of €133 million.
Regarding the third question, I am informed by Revenue that the overall value of employer pension contributions in 2014 is estimated to be in the order of €1.38 billion. This total figure includes employer contributions to both Occupational Pensions and Personal Retirement Savings Accounts.
Regarding the fourth question, I am informed by Revenue that the overall value of employee pension contributions in 2014 is estimated to be in the order of €1.5 billion. This total figure includes employee contributions to Occupational Pensions, Retirement Annuity Contracts and Personal Retirement Savings Accounts.
Regarding the final question, I am informed by Revenue that data on employer contributions to pension schemes and other pension arrangements are supplied to them in aggregate form and do not provide a sufficient basis to provide a reliable estimate of any tax saving in the terms set out in the question.
Question No. 87 answered with Question No. 84.
88. Deputy Pearse Doherty asked the Minister for Finance the total value of share options exercised in 2014, which information would have been declared through the relevant tax on share option procedure, and also disclosed by the paying companies, through the RSS1 form. [29504/15]
Amharc ar fhreagra89. Deputy Pearse Doherty asked the Minister for Finance the total value of restricted stock units granted to employees in 2014, which information would have been declared by employers to the Revenue Commissioners through mandatory declaration, for example through the RSS1 form. [29505/15]
Amharc ar fhreagra90. Deputy Pearse Doherty asked the Minister for Finance the total value of payments made under approved profit sharing schemes granted to employees last year, which information would have been declared by employers to the Revenue Commissioners through mandatory declaration, for example through the RSS1 form. [29506/15]
Amharc ar fhreagraI propose to take Questions Nos. 88 to 90, inclusive, together.
In relation to share options, I am informed by the Revenue Commissioners that the gains arising from the exercise of share options were €260 million in 2014. Information on the total value of share options exercised is not readily available and could not be obtained without conducting a protracted examination of Revenue records. This reflects the manner in which the information is returned to Revenue by relevant persons for Share Options and other rights awarded to directors and employees. While this information is returned through the RSS1 form, the information is then compiled separately on the Revenue records of each individual beneficiary.
The Deputy may also wish to note that since February this year the RSS1 form may be filed electronically with Revenue. To date 409 forms have been filed successfully.
In relation to Restricted Stock Units (RSU), I am advised by Revenue that the award of shares and the entitlement to a future award of shares is made through a variety of schemes. One such scheme is known as RSU. An RSU is a taxable emolument of employment chargeable to income tax. However, due to the manner in which the data are recorded, these cannot be separately distinguished from other such emoluments. Therefore, the total value of RSUs granted to employees sought by the Deputy is not available.
Finally, in relation to Approved Profit Sharing Schemes (APSS), I am advised by Revenue that information regarding the total value of payments made under APSSs to employees is returned to Revenue on Form ESS1. Returns for 2014 are currently being processed and figures will be available for 2014 in due course. As such, I am not in a position to give the information sought by the Deputy at this stage.
