Written Answers Nos. 193 - 214
193. Deputy Michael McGrath asked the Minister for Finance the tax arrangements that apply in the scenario outlined in correspondence (details supplied); and if he will make a statement on the matter. [42349/15]
Amharc ar fhreagraUnder section 819 of the Taxes Consolidation Act 1997 an individual is resident in the State where the individual is present in the State for 183 days or more in the year of assessment; is present for 280 days or more in total in the year of assessment and the preceding year; or where they elect to be resident. A day is defined as one on which the individual is present in the State at any time during the day.
Individuals who are tax resident in the State are charged to tax on all income, whether earned or arising in Ireland or abroad, including income derived from an employment or a profession.
I am informed by the Revenue Commissioners that, in relation to the case outlined in the details supplied by the Deputy, it would appear that, notwithstanding the proposed relocation of the place of work to Belgium, the individual in question will continue to be resident in Ireland for tax purposes and, therefore, taxable here on all income. Under the provisions of the Ireland Belgium Double Taxation Convention, Belgium will also tax the income derived by an Irish resident individual from a place of work in Belgium. Belgium will tax any income derived by an Irish resident from an employment which is exercised in Belgium if the individual spends more than 183 days there; the employer is tax resident there; or the income is directly borne by the employer's place of business there.
However, I am further informed by the Revenue Commissioners that under the provisions of the Ireland Belgium Convention, which seek to avoid or relieve double taxation, credit for any tax paid by the individual in Belgium will be granted against his or her tax liability in the State. The Irish resident may claim credit for such tax in their annual self assessment return or, if an employee, by way of a review of tax liability at year-end. If, however, the individual becomes resident for tax purposes in Belgium rather than Ireland, he or she could only be taxed in Ireland on so much of the income from any of his or her professional activities or duties as is derived from the performance of those activities or duties in Ireland.
In relation to the provision of information to taxpayers by the Revenue Commissioners, I am also informed that opinions or confirmations are provided to taxpayers in order to provide clarity and certainty in relation to the applicable tax/duty rules so that taxpayers can file a correct tax return and comply fully with their tax and duty obligations. While opinions/confirmations are not binding on Revenue, and it is open to Revenue officials to review the position when a transaction has been completed and all the facts are known, generally Revenue will follow an opinion/ confirmation once it can be shown that all relevant information was disclosed and the position did not diverge or deviate from that which was outlined in the information provided in relation to the request for the opinion/confirmation.
I am further informed that where, following a review or further consideration, Revenue revises its position, the taxpayer will be given notice of the revised position. In such a case, Revenue will not seek to retrospectively apply a tax/duty charge where it can be shown that all relevant information was disclosed, either at the time the application was made or following a request from Revenue for clarification, and that the information as then disclosed does not diverge from the actual facts.
I am informed also that, as part of its strategy to deploy compliance resources appropriately in order to maximise tax recoveries from the non-compliant and to minimise the administrative burden placed on largely compliant customers, the Revenue Commissioners, in 2013, initiated a programme of interventions to address non-compliance by some individuals who were providing their services through personal services companies. In 2014, over 400 audits of contracting companies and a further 300 audits of their directors were concluded, yielding €10.5 million. Over 80% of the audits conducted on companies and their directors resulted in a tax settlement. In its Report on the Accounts of the Public Services 2014, the Comptroller & Auditor General found that the audits carried out by Revenue under this initiative were targeted effectively.
Should the Deputy and the individual wish, I will pass further details of the case to the appropriate area in the Revenue Commissioners who will be glad to assist the individual concerned in determining his or her tax position taking account of his or her particular circumstances.
194. Deputy Michael McGrath asked the Minister for Finance the approach and steps taken by the Revenue Commissioners in pursuing a person for outstanding taxes where the person's business has failed and the person concerned is now dependent on basic social protection; how such a matter is finalised; and if he will make a statement on the matter. [42451/15]
Amharc ar fhreagraI am advised by Revenue that situations of the type outlined by the Deputy are considered on a case by case basis having due regard to the specific circumstances of the individual taxpayer/business.
Revenue has also confirmed to me that where possible it will always seek to work with a taxpayer/business experiencing cash-flow difficulties in preference to deploying debt collection/enforcement measures. However any such discussions are predicated on open and honest engagement in identifying and agreeing a mutually acceptable solution.
In circumstances where a business has failed, it is very important that the taxpayer makes early contact with Revenue to clarify the situation and agree an approach in regard to any outstanding tax debts and cessation of the various tax registrations.
Finally, if the Deputy has a specific case in mind I would urge him to ensure that the taxpayer/business engages with Revenue as quickly as possible.
195. Deputy Michael Lowry asked the Minister for Finance for clarification on recent changes in budget 2016 on entrepreneurs' retirement relief (details supplied). [42494/15]
Amharc ar fhreagraThe question and the details supplied indicate some confusion as between CGT retirement relief, which has been in place for some time, and a newly revised CGT entrepreneur relief. These reliefs are separate and distinct.
Retirement relief is available to business owners over the age of 55, and allows them to dispose of business assets free from CGT within limits. The operation of CGT retirement relief differs as between persons aged 55 to 65 and persons aged 66 and over. For individuals aged 55-65, the relief applies to the disposal of assets valued up to €750,000 where the assets are transferred outside the family. Where the disposal is made to a child or favourite niece/nephew, there is no monetary limit to the relief. For individuals aged 66 years and over disposing of business or farm assets outside the family the relief applies to assets valued up to €500,000. For individuals aged 66 years and over disposing of business or farm assets to a child or nephew/niece who has worked full time in the business/on the farm for the previous five years, the relief can be claimed up to a consideration or value limit of €3 million. No changes to these limits or other conditions of CGT retirement relief were introduced in Budget 2016 or Finance Bill 2015.
As part of Budget 2016 I announced the introduction of a revised CGT entrepreneur relief, which will allow for a reduced 20% rate of CGT on the disposal of qualifying business assets up to a lifetime limit of €1 million of qualifying gains with effect from 1 January 2016. There is no condition relating to the age of the entrepreneur. The relief is available to farmers in respect of the disposal of assets used in the farm business, subject to meeting the conditions of the relief. The legislative provisions giving effect to the CGT entrepreneur relief are included in section 35 of Finance Bill 2015, as passed by Dáil Éireann. This relief for entrepreneurs does not replace retirement relief, which continues to operate as before.
196. Deputy John McGuinness asked the Minister for Finance the amount of cash transfers made by Allied Irish Banks to the Exchequer in redemption of preference shares, bail-out funds and other Exchequer funding that has been advanced by the State to the bank since 2008; and if he will make a statement on the matter. [42533/15]
Amharc ar fhreagraAs the deputy is aware, the State holds €3.5 billion of preference shares in AIB. The interest payable on these securities has been €280 million per annum and is payable in cash, or in ordinary shares in the event of non-payment in cash. AIB issued ordinary shares to the State in lieu of the dividend due each May between 2010 and 2014 but in 2015 received a cash dividend of €280m for the first time. When this cash dividend together with income on our Contingent Capital Instrument and all CIFS/ELG guarantee fee income are included, the State has received cash returns of around €2.7 billion from AIB to date.
In addition to this AIB recently secured SSM approval for a redemption of €1.36 billion of the Preference Shares for €1.7 billion, which when combined with accrued interest and the redemption of the EBS Promissory Note will yield approx. €1.64bn for the State in the coming weeks.
Between 2009 and 2011 the State invested around €20.7 billion in AIB, in order to bring stability and sustainability to the bank. These investments took a number of forms including equity and contingent capital, I have given a detailed breakdown of these in a table for the deputy's information. As I have indicated previously, I would expect that the state will be able to recoup the full value of its investment in AIB over the course of time.
|
Year |
Description |
Instrument used |
Cost €'000 |
|
2009 |
AIB Recap - NPRF |
Preference Shares |
3,500 |
|
2010 |
EBS SIS |
Special Investment Share |
625 |
|
Pro Note - EBS |
Promissory Note |
250 |
|
|
AIB Recap - NPRF |
Equity |
3,700 |
|
|
2011 |
PCAR - AIB CoCo |
Contingent Capital |
1,600 |
|
PCAR - AIB Capital Contribution |
Capital Contribution |
2,283 |
|
|
PCAR - AIB Equity/Capital Contribution - NPRF |
Equity/Capital Contribution |
8,771 |
|
|
|
Total Invested |
20,729 |
197. Deputy Pearse Doherty asked the Minister for Finance when he or the Central Bank of Ireland will review the current lending restrictions on mortgage lending and, in the context of such a review, if he will consider extending the base 10% first-time buyer deposit limit to second-time buyers who are seeking to trade up to larger homes to accommodate increased family size. [42557/15]
Amharc ar fhreagraThe Central Bank of Ireland, in line with its mandate to safeguard financial stability, has put in place macro-prudential measures for residential mortgage lending effective from last February. These measures apply proportionate loan-to-value and loan-to-income limits to mortgage lending by regulated financial service providers in the Irish market. The key objective of these measures is to increase the resilience of the banking and household sectors to the property market and to reduce the risk of bank credit and house price spirals from developing in the future.
The Central Bank is independent in the formulation and implementation of these new macro prudential measures. As indicated at the outset of this new framework, the Central Bank will continue to monitor the implemented measures on an on-going basis, particularly with regard to achieving the stated objectives of the measures and monitoring any unintended consequences. This monitoring is on-going and the Central Bank has indicated that it will inform any future decisions in this area.
198. Deputy Joanna Tuffy asked the Minister for Finance the levies paid by the banks to the State, following the bank guarantee and recapitalisation, and the funds recouped by the State from these banks through the re-sale of shares or other assets; and if he will make a statement on the matter. [42579/15]
Amharc ar fhreagraI can confirm for the Deputy that the following amounts have been received since the bank liability guarantee scheme and bank recapitalisation measures were taken:
Disposal of banking investments - €5.5bn
Income from banking investments - €1.8bn
Fees from bank liability guarantee schemes - CIFS/ELG - €4.4bn*
In addition to these amounts, which are directly related to banking stabilisation measures, a total of €125m was received in both 2014 and 2015 from AIB, BOI and PTSB, arising from the bank levy introduced in Finance Act 2014. Finally the State expects to receive another €1.64bn approximately from the recently announced capital reorganisation at AIB when this is complete.
*CIFS/ELG fees include €0.5bn from IBRC.
199. Deputy Finian McGrath asked the Minister for Finance the status of the local property tax in respect of those on social protection assistance (details supplied); and if he will make a statement on the matter. [42625/15]
Amharc ar fhreagraThe Local Property Tax legislation provides a number of reliefs and exemptions from Local Property Tax (LPT) for such residential property owners as described by the Deputy in the details supplied with his Question. Firstly, an exemption is available for residential properties vacated for an extended period by a person with a long term mental or physical infirmity.
In addition, there are two different types of relief available in respect of properties that are occupied by people who are incapacitated or who have a disability. The first is an exemption from LPT for properties that have been constructed, adapted or acquired because of their suitability for occupation by individuals who are permanently and totally incapacitated to such an extent that they are unable to maintain themselves and whose condition is so severe that it dictates the type of property they can live in. The second relief takes the form of a reduction in the chargeable value of a property that has been adapted to make it more suitable for occupation by a person with a disability, where the adaptation work has resulted in an increase in the chargeable value of the property and the payment of additional LPT. I propose to bring legislation before the Oireachtas shortly to give effect to recommendations in the recent Report on the Review of the LPT in relation to changed approaches to the implementation of inter alia the reliefs from LPT in respect of properties occupied by persons with disabilities.
There are also payment deferral options available to certain property owners whose income is below specified thresholds or who have experienced personal insolvency or financial hardship, during a particular year. In these situations, a property owner is entitled to defer payment of his or her LPT liability, in full or partially. The thresholds for full deferral are €15,000 per annum for a single person or €25,000 for a couple and €25,000 (single) or €35,000 (couple) for deferral of 50% of the liability. These thresholds can also be increased by an amount equivalent to 80% of any annual mortgage interest payable on the person's main residence.
Interest is charged on LPT amounts deferred at a rate of 4% per annum instead of the 8% interest charge applied to late or non-payment of LPT.
For those who qualify for deferral but do not wish to defer their payment, or those who do not qualify for deferral because they do not meet the necessary criteria, Revenue has provided a wide range of payment options, some of which can be phased over the course of the year including deduction-at-source from payments received from the Department of Social Protection.
If the Deputy wishes to provide details of any particular case, I will ask my officials to pass this information to Revenue in order that a specific response can be provided regarding any options available.
200. Deputy Dan Neville asked the Minister for Finance the reason there has been an increase in charges of property tax for a person (details supplied) in County Limerick; and if he will make a statement on the matter. [42755/15]
Amharc ar fhreagraI am advised by Revenue that Section 20 of the Finance (Local Property Tax) Act 2012 (as amended) allows local authorities to vary the basic LPT rate for residential properties situated within their respective residential areas. The LPT rate can be increased or decreased by up to 15% from the base rate.
With regard to the specific case to which the Deputy refers, Limerick County Council reduced the rate of LPT by 3% for 2015, but opted not to reduce the rate for 2016. I am advised that a member of the LPT team has already made direct contact with the person in question and clarified the reason for the increase in 2016 over 2015.
201. Deputy Finian McGrath asked the Minister for Finance if he will amend the Finance Bill 2015 to bring tax justice to public servants, especially those who have an occupational pension (details supplied); and if he will make a statement on the matter. [42760/15]
Amharc ar fhreagraThe USC was introduced in Budget 2011 to replace the Income Levy and Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and maintain revenue to reduce the budget deficit. It is a more sustainable charge than those it replaced, and is applied at a low rate on a wide base.
The USC, like the Income Levy before it, does not apply to social welfare payments, such as the contributory and non-contributory State pensions, or payments of a similar nature. However occupational pensions, including occupational pensions of retired civil servants, are liable to the USC if the payment is greater than the exemption threshold, which for 2015 is €12,012.
As the Deputy is aware, delivering on a commitment in the Programme for Government, the USC was reviewed by my Department in the lead up to Budget 2012. The report is available on my Department's website at www.finance.gov.ie. The issue of USC applying to occupational pensions of retired public servants who entered the public service before April 1995 was examined as part of that review. Such individuals are (or were) liable to modified rate PRSI, which does not generate an entitlement to the State Pension.
The Government decided not to exempt the occupational pensions of these individuals from the USC charge as it would be very costly and difficult to achieve, and it would involve all income earners with the equivalent income benefiting from the exemption. In addition, it would also undermine the principle of the USC being applied to income with few exceptions.
However, as a result of the review of the USC, the Government decided in Budget 2012 to increase the entry point to the Universal Social Charge from €4,004 to €10,036 per annum. Budget 2015 provided for a further increase in the exemption threshold to €12,012 and I announced in my recent Budget speech that this threshold will increase to €13,000 per annum from 1 January 2016. It is estimated that over 700,000 income earners will not be liable to USC at all from next year.
This exemption threshold equalises the position for single individuals whose sole source of income is the State Contributory Pension with Public Service pensioners whose pension is at an equivalent level. Furthermore, I intend to continue to reform the tax system in future budgets should we be returned to Government and subject to having the required fiscal space.
For the reasons outlined, I have no plans to amend Finance Bill 2015 to change the application of the USC on Public Service pensions. I would point out that the changes to the income tax system included in Budget 2015 mean that individuals who paid Income Tax and /or USC in 2014, including pensioners, are seeing a reduction in their tax bill this year where incomes are equal. Budget 2016 is now continuing this process of reducing the tax burden on low and middle income earners including, among other changes, a decrease in the three lowest rates of USC announced to take effect from January 2016.
202. Deputy Róisín Shortall asked the Minister for Finance the number of persons with incomes above €500,000 in the past tax year for which figures are available; the average effective tax rate that applied to this group; and the number of these persons who had an effective tax rate of less than 15%, 10%, 5%, 2%, and 1%, respectively. [42813/15]
Amharc ar fhreagra203. Deputy Róisín Shortall asked the Minister for Finance the number of persons with incomes of between €250,00 and €500,000 in the past tax year for which figures are available; the average tax rate that applied to this group; and the number of these persons who had an effective tax rate of less than 15%, 10%, 5%, 2%, and 1%, respectively. [42814/15]
Amharc ar fhreagra204. Deputy Róisín Shortall asked the Minister for Finance the number of persons with incomes of between €100,000 and €250,000 in the past tax year for which figures are available; the average tax rate that applied to this group; and the number of these persons who had an effective tax rate of less than 15%, 10%, 5%, 2%, and 1%, respectively. [42815/15]
Amharc ar fhreagra205. Deputy Róisín Shortall asked the Minister for Finance the number of persons with annual incomes above €100,000 who paid no tax on their income in the past tax year. [42816/15]
Amharc ar fhreagraI propose to take Questions Nos. 202 to 205, inclusive, together.
Unfortunately, having regard to the level of detail required, the Revenue Commissioners are not in a position to provide the information sought within the time available. However, I will arrange for the information to be supplied directly to the Deputy as soon as possible.
206. Deputy Pearse Doherty asked the Minister for Finance the projected revenue from the universal social charge for 2015 and for 2016 [42826/15]
Amharc ar fhreagraThe Universal Social Charge (USC) data requested by the Deputy are set out in the table below. As the Deputy will be aware, a significant USC package was introduced in Budget 2016, which will subsequently reduce the expected USC receipts in 2016.
|
USC Receipts 2015 |
USC Receipts 2016 |
|
€m |
€m |
|
4,225 |
3,995
|
207. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 165 of 24 November 2015, the amount of corporation tax paid in 2014 by the bands identified; and if he will make a statement on the matter. [42837/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the estimated amount of Corporation Tax paid in 2014, as per the bands identified in Parliamentary Question Number 165, are as set out in the table.
|
Payment Band € |
Amount Paid €m |
|
1-50,000 |
236 |
|
50,001-100,000 |
116 |
|
100,001-500,000 |
362 |
|
500,001-1,000,000 |
221 |
|
1,000,001-5,000,000 |
712 |
|
Over 5 million |
3,466 |
The total of the amount in the above table is €5,113 million. However, total net receipts of Corporation Tax for 2014 amounted to €4,617 million. The difference between these two amounts is due to the fact that a number of companies were in a position to claim repayments, which are not included in the table.
208. Deputy Bernard J. Durkan asked the Minister for Finance if it is no longer the policy of the Revenue Commissioners to receive or issue payments in respect of tax liabilities or refunds arising thereto by way of cheque, which raises considerable administrative difficulties for sole traders and small businesses; and if he will make a statement on the matter. [42861/15]
Amharc ar fhreagraI am advised by Revenue that it operates its tax payment and repayment systems in line with the Government's National Payments Plan, which includes migration from cheque usage to more cost effective electronic payment methods. A key priority for the National Payments Plan is to reduce overall cheque usage in Ireland to EU levels. In this regard Revenue is currently processing almost 98% of tax payments (by value) and 84% of tax repayments (by value) through electronic channels. Further system upgrades in early 2016 will increase the number of tax repayments suitable for repayment through electronic channels.
While Revenue's preference is for customers to pay and file online using Revenue's Online Service (ROS), payments can also be made by Direct Debit, Single Debit Authority, which operates like an 'electronic cheque' and enables once-off payments to be made directly a bank account, or by credit/debit card.
Revenue has confirmed to me that while its strong preference is to process all payments via the various electronic channels, this does not mean that it will refuse a cheque payment from a taxpayer. However cheque payments are more expensive for both the taxpayer and for Revenue and staff will always encourage customers to consider the cheaper electronic methods.
In regard to tax repayments, Revenue will transfer the amount owed directly to the taxpayer's bank account where systems permit and the relevant details are available. The electronic transfer means that the funds are available to the taxpayer/business much quicker than if repaid by cheque. However, in situations where it is not possible or the necessary bank account details are not available to facilitate an electronic transfer then a refund can be made by cheque.
209. Deputy Thomas P. Broughan asked the Minister for Finance his views on recent reports that he is considering major increases in the household property tax over the lifetime of the next Dáil, and that such increases will double the property tax in the Dublin, Cork, Limerick and Galway urban regions; and if he will make a statement on the matter. [42882/15]
Amharc ar fhreagraI am very conscious of the concerns of homeowners over increasing property prices and the effects this will have on their Local Property Tax (LPT) liabilities, particularly in urban areas. For this reason I asked Dr Don Thornhill to review the operation of the LPT and, in particular, any impacts on LPT liabilites due to recent property price developments.
In my Budget 2016 statement, I announced that I would propose to Government the postponement of the revaluation date for the LPT from 2016 to 2019. This is one of the recommendations in the Review of the Local Property Tax submitted to me by Dr. Don Thornhill, which has been published on the Department of Finance website. The postponement of the revaluation date means that home owners will not be faced with significant increases in their LPT in 2017 as a result of increased property values and it gives sufficient time for the other recommendations in Dr Thornhill's report to be considered in full. I propose to bring legislation to give effect to the postponement before the Oireachtas shortly. This legislation will also give effect to two of the recommendations in the review report in relation to changed approaches to the implementation of the pyrite exemption from LPT, and reliefs from LPT in respect of properties occupied by persons with disabilities, both of which are being implemented on an administrative basis by the Revenue Commissioners at my request.
Issues relating to the implementation of other recommendations in the Report will be a matter for consideration by the next Government.
210. Deputy Thomas P. Broughan asked the Minister for Finance if he will report to Dáil Éireann on the Central Bank of Ireland's report in July 2015; if the report confirms the fears of standard variable mortgage holders that their mortgage agreements are being burdened with additional interest to subsidise the cost to banks of new mortgage and loan business; and if he will make a statement on the matter. [43036/15]
Amharc ar fhreagraFirstly, I need to acknowledge that it is not clear from the question which Central Bank report is being referred to. The Central Bank published two Economic Letters in July 2015; 'Switch and Save in the Irish Mortgage Market' and 'Mortgage Interest Rate Types in Ireland'. These reports are available on the bank's website at the following links:
https://www.centralbank.ie/publications/Documents/EL_2015_8.pdf and https://www.centralbank.ie/publications/Documents/Economic%20Letter%20-%20Vol%202015,%20No.%209.pdf. The report on switching examined how many borrowers could save by switching provider, the costs involved in switching, the numbers switching and initiatives that would benefit borrowers, including increased information and greater transparency on mortgage products. The report on mortgage interest rate types looked at the number of borrowers on different interest rate types, the propensity of contracts to change rate type over time and the level of instalments for different mortgage contract types.
These reports do not directly relate to the issues raised by the Deputy in his question. Nonetheless, as the Deputy will be aware, I have taken steps to ensure that the banks provide options for mortgage holders to reduce their monthly repayments. Last May, I requested a report from the Central Bank on the topic which was subsequently published on my Department's website and on the Central Bank's website. This report was entitled 'Influences on Standard Variable Rate Pricing in Ireland' and is available here: http://www.finance.gov.ie/sites/default/files/Influences%20on%20SVR%20Pricing%20in%20Ireland.pdf.
This report found that the spread between official ECB rates and the standard variable rate is relatively high and that new lending rates are above average compared to European peers. However, they noted that the pricing of loans reflects three main factors: credit risk, competition and bank profitability. Credit Risk is influenced by the high level of non-performing loans and the lengthy and uncertain process of collateral recovery; Competition is weak and this is not unrelated to the credit risk as new entrants may be deterred from entering the Irish market; Bank profitability is constrained by legacy issues. Profitability is needed to build capital buffers and to meet increasing regulatory requirements.
It should also be noted that the interest rate charged by banks is determined taking into account a broad range of factors including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding.
Last May I met with the six main mortgage lenders and outlined my view that the standard variable rate being charged to Irish customers was too high. The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers.
In September I concluded a series of follow up meetings with these banks and the reality is that the majority have put options in place to allow borrowers reduce their repayments. These options range from lower variable rates to new suites of variable rates based on loan to value and reductions in fixed rates.
While it is a matter for each individual borrower to decide what suits their circumstances, I encourage both new and existing borrowers to see what is available to them in their circumstances or, for existing customers, to consider moving to another bank, where possible, if the offer is not satisfactory. In this regard, the Competition and Consumer Protection Commission (CCPC) website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions.
You may also be aware that on 12 November the Central Bank published a consultation paper on proposed increased protections for variable rate mortgage customers. This is called Consultation Paper CP98 and is available on their website. The suggested measures fall under three broad categories:
- Lenders would be required to publish a summary statement of the factors that impact on their variable rate and the criteria and procedures that apply to setting such rates;
- On an annual basis lenders would be required to notify variable borrowers of alternative mortgage options. They would also have to notify borrowers of these options when increasing SVR rates and provide borrowers with a link to the Competition and Consumer Protection (CCPC) website to assist borrowers who wish to switch;
- The Central Bank is consulting on increasing the notification period for variable rate increases (it is currently 30 days) and they are also consulting on a proposal to require the lender to state the reason for changing the rate.
The closing date for submissions to the public consultation is 12 February 2016.
This initiative should increase transparency around the factors which influence a bank's standard variable rate pricing.
211. Deputy Thomas P. Broughan asked the Minister for Finance his views on reports that online retailers of alcohol from outside of Ireland are offering lower prices, allegedly without paying the correct excise and value added tax; and if he will make a statement on the matter. [43037/15]
Amharc ar fhreagraI am informed by Revenue that the importation of alcohol into the State is subject to tight regulation. It is illegal under excise and VAT law to supply alcohol products in Ireland without accounting for the appropriate excise duty and VAT on the products concerned. This includes alcohol products sold on-line to Irish consumers.
A supplier located in another Member State who sells alcohol products directly to consumers in Ireland is required to appoint a tax representative and to register for VAT in the State for the purpose of paying duty and VAT on the products concerned.
Alcohol products supplied by non-compliant traders are liable to forfeiture and may be seized and any person concerned in the supply may be prosecuted for the offence of evading or attempting to evade payment of excise duty. I am informed by Revenue that they are aware of a number of websites offering alcohol products for sale and that they regularly seize alcohol products on their arrival into the State.
212. Deputy Pat Rabbitte asked the Minister for Finance the reason fortnightly-paid workers who have a 27th payment date for the universal social charge in 2015 are being charged at a higher rate without the application of the lower rates and credits; the basis for this apparent overcharging on this specific payment; if the affected workers will receive a refund or a credit for having paid an additional universal social charge in this period; and if he will make a statement on the matter. [43042/15]
Amharc ar fhreagraThe Deputy may be aware that I brought forward amendments to Finance Bill 2015 at Report Stage in the Dáil to address this issue, whereby an employee may suffer a fall in net income in their last payment of the year in a 'week 53' or 'fortnight 27' year. These amendments were passed by the Dáil.
USC rate bands for employees are divided equally across the year, assuming a 52-week or 26-fortnight year. However a calendar year consists of 52 weeks and 1 day, or 52 weeks and 2 days in a leap year. As a result, once every 5 to 6 years for weekly-paid employees the additional day will be a payday, resulting in 53 paydays falling within the calendar year. Similarly, once every 10 to 12 years a 'fortnight 27' arises for fortnightly paid employees. As no USC rate bands remain for that year, the full amount of the pay is liable to higher rates of USC, resulting in a lower net income for the employee in that week or fortnight.
The same issue arises for income tax purposes, and regulations provide for an additional set of credits and rate bands to be allowed in a 'week 53' or 'fortnight 27' year. The amendments that were made to the Finance Bill will provide for additional USC rate bands to cater for the additional payday which falls within the calendar year, so that individuals will not have a larger USC liability solely because of the weekday on which their salary payment falls. This will bring the application of USC into line with that of income tax.
The amendments also ensure that those who are exempt from USC due to low income do not become liable to USC on all of their income solely as a consequence of the additional day in the calendar year being a payday. It similarly provides that those who benefit from the exemption from the higher rates of USC, including those over 70 and medical card holders whose income does not exceed €60,000, will not inadvertently become liable to higher rates of USC as a consequence of the additional payday falling within the calendar year.
These amendments will come into effect for the current year which means that individuals affected by this issue who are due to be paid on 31 December this year will benefit from the changes. In cases where payroll providers do not implement the changes within sufficient time for the benefit to be provided to employees in their last salary payment of this year, the relevant refund may be claimed back from the Revenue Commissioners.
213. Deputy Billy Timmins asked the Minister for Finance the number of legal cases currently ongoing against his Department, including State agencies under his aegis; the number of cases that took place during the years 2011 to 2014, inclusive; the cost of those that were contested and what damages were involved; the costs and damages of those that were settled; and if he will make a statement on the matter. [43266/15]
Amharc ar fhreagraIt has not been possible in the time available to collate all of the information sought by the Deputy. However, the requested information will be collated and forwarded to the Deputy in writing.
214. Deputy James Bannon asked the Minister for Public Expenditure and Reform his future plans for political reform; and if he will make a statement on the matter. [42352/15]
Amharc ar fhreagraA number of key future reform initiatives are underway in this area building on the significant progress achieved under the Programme for Government. For example:
- It is intended to publish a Public Sector Standards Bill which will provide a new and reformed legal framework for ethics for all public officials, significantly enhancing the existing framework for identifying, disclosing and managing conflicts of interest as well as minimising corruption risks and ensuring the institutional framework for oversight is robust and effective.
- It is intended to publish a Bill to facilitate greater data sharing between public bodies to occur under best-practice governance arrangements and fully consistent with data protection legislation.
- It is intended to publish a Statute Law Reform Bill which will repeal spent and obsolete Acts enacted between 1922 and 1950.
- Under my Open Data Initiative, the recent established Open Data Governance Board intends to further enhance the potential of access to information and data held by public bodies in order to deliver real economic, social and democratic benefits across society.
- Under the Regulation of Lobbying Act 2015 lobbyists must have registered and made their first return with the Standards in Public Office Commission by 21 January 2016 if they have engaged in lobbying activities during the period 1 September 2015 to 31 December 2015. To date over 500 persons and organisations have registered on the lobbying register. Guidance notes and other supports are available on www.lobbying.ie.
- A range of initiatives to strengthen accountability including the development of a Code of Standards and Behaviour for Special Advisers are expected to be implemented. This Code will be supported by an induction programme. In addition, in conjunction with the Public Appointments Service, a review of the Guidelines on Appointments to State Boards, introduced in 2014, will be undertaken early in the new year.
- Development of the second action plan under the Open Government Partnership initiative will also be advanced.
