Written Answers Nos. 98-108
98. Deputy Michael McGrath asked the Minister for Finance the status of the amount of debt owed by small and medium-sized enterprises, SMEs; the amount that is in arrears and classified as non-performing; and if he will make a statement on the matter. [43396/15]
Amharc ar fhreagraI am informed by the Central Bank that they do not publish statistics on SME debt as part of any of their statistical series. However, the Central Bank does publish the level of outstanding debt, through the statistical release "Trends in Business Credit and Deposits: Q2 2015", which indicates that total loans by resident credit institutions to Irish resident SMEs was €50.6 billion at end-June 2015. This publication is available on the Central Bank website at: http://www.centralbank.ie/polstats/stats/cmab/pages/businesscredit.aspx.
The Deputy may be interested in the Central Bank publication "SME Market Report 2015 H1", which reports on SME default numbers (as per the Basel II definition of default). This publication is available on the Central Bank Website http://www.centralbank.ie/publications/Documents/SME%20Market%20Report%202015H1.pdf.
99. Deputy Michael McGrath asked the Minister for Finance the number of projects in which the Ireland Strategic Investment Fund, ISIF, has currently invested; the number of new jobs created as a result of these projects; and if he will make a statement on the matter. [43397/15]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) published its first Baseline Economic Impact Report at the end of Q2 2015.
Key figures show that as at 31 December 2014:
- ISIF had committed €1.4 billion to investments in Ireland, with €726 million already drawn down.
- 79 Irish companies and projects with a combined annual turnover of €472 million are benefitting from ISIF investment.
- Approximately 8,362 jobs are supported directly and indirectly by ISIF investments.
At 31 December 2014, the funds ISIF invested in had significant engagement throughout the Irish market - with 3,573 engagements and 99 completed investments since inception.
Further information is available online at: http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/.
The ISIF has advised that it is currently surveying underlying investees and plan to publish updated figures in respect of H1 2015 in the coming weeks.
100. Deputy Michael McGrath asked the Minister for Finance the number of Irish incorporated companies that are not judged to be resident here under the test of management and control and that have advised the Revenue Commissioners as to where they are actually resident since the change announced in budget 2014; and if he will make a statement on the matter. [43398/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that they have been advised of companies that will be affected by the change in residence rules arising from Section 39 of the Finance (No. 2) Act 2013. However, because of the small number of companies involved the Revenue Commissioners' obligation in relation to confidentiality of taxpayer information precludes them from providing the information requested.
101. Deputy Michael McGrath asked the Minister for Finance the number of residential mortgage holders classified as non-co-operating under the code of conduct on mortgage arrears; and if he will make a statement on the matter. [43399/15]
Amharc ar fhreagraI am informed by the Central Bank that it does not publish statistics in relation to the number of non-cooperating borrowers under the Code of Conduct on Mortgage arrears. Furthermore, while my Department publishes monthly data on mortgage arrears in the six main banks it does not have data on non-cooperating borrowers.
As the Deputy will be aware, the Central Bank publishes Quarterly Residential Mortgage Arrears and Repossessions Statistics. Their latest publication relates to Q2 2015 and is available at https://www.centralbank.ie/polstats/stats/mortgagearrears/Documents/2015q2_ie_mortgage_arrears_statistics.pdf.
The Code of Conduct on Mortgage Arrears provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender, and that long term resolution is sought by lenders with each of its borrowers. It is very important that borrowers engage and cooperate with their lender and avoid being classified as non-cooperating.
102. Deputy Michael McGrath asked the Minister for Finance the number of deposit savings accounts yielding less than €200 in deposit interest retention tax, DIRT; and if he will make a statement on the matter. [43400/15]
Amharc ar fhreagra103. Deputy Michael McGrath asked the Minister for Finance the average payment of deposit interest retention tax, DIRT, per eligible account in which a DIRT tax liability arose in 2014; and if he will make a statement on the matter. [43401/15]
Amharc ar fhreagra105. Deputy Michael McGrath asked the Minister for Finance the number of interest paying accounts on which deposit interest retention tax, DIRT, was paid in each year from 2011 to 2014; and if he will make a statement on the matter. [43403/15]
Amharc ar fhreagraI propose to take Questions Nos. 102, 103 and 105 together.
I am informed by Revenue Commissioners that Deposit Interest Retention Tax (DIRT) on interest bearing deposits is declared and paid on a four-times yearly basis by financial institutions: in April, July and October of the tax year in question, and in the following January. Returns for each year are due by 15 January of the following year, and the total value of DIRT due and paid is reported to the Revenue Commissioners on the January returns at institutional level. Detailed figures are not required in these returns to provide the information the Deputy has sought, specifically to identify the number of deposit-savings accounts yielding less than €200 in DIRT, the average payment of DIRT per eligible account or the total number of interest paying accounts on which DIRT was paid.
However, the Deputy may be interested to note that, separately, under regulations as provided for in Section 891B of the Taxes Consolidation Act 1997, certain financial institutions, such as banks and credit unions, are required to make automatic annual returns at account level electronically to Revenue. The primary purpose of this Section is to provide information for use in risk analysis by Revenue and therefore the requirement to report interest focuses on account holders in receipt of larger payments. The information under S891B is provided where the payment of interest is greater than €635 in a year and in all instances of a first interest payment on newly opened accounts irrespective of amount. These returns include DIRT exempt accounts. Returns for 2011, 2012, 2013, and 2014 were due by the end of March 2012, 2013, 2014 and 2015 respectively. It is important to note the information received under Section 891B is not limited to individuals but also includes interest payments on accounts held by corporations and other entities. It should also be noted that the reporting threshold was reduced from €635 to €300 from 2014 onwards.
The number of interest bearing deposit accounts reported under the S891B regulations for 2011, 2012, 2013 and 2014 is 1.43 million, 1.23 million, 1.21 million and 1.32 million respectively. The total value of interest paid to these accounts for 2011, 2012, 2013 and 2014 is €2.42 billion, €2.11 billion, €1.97 billion and €1.38 billion respectively. Financial institutions reported that DIRT was not deducted on around 193,000, 197,300, 201,400 and 163,300 of these accounts for 2011, 2012, 2013 and 2014 respectively but data on the amount of DIRT forgone in respect of such accounts are not available. These figures are provisional and may be subject to revision.
104. Deputy Michael McGrath asked the Minister for Finance if he expects to achieve the €100 million in value added tax from changes in how it is applied for cross-border European Union telecommunications broadcasting and electronically supplied services, as set out in budget 2016; and if he will make a statement on the matter. [43402/15]
Amharc ar fhreagraI am advised that at present there is no change to the estimate as set out in Budget 2015 in relation to the impact on receipts from changes to how VAT is applied for Cross-border EU telecommunications broadcasting and electronically supplied services.
On 1 January 2015, new EU VAT rules came into effect changing the place where VAT is chargeable in respect of all supplies of telecommunications, broadcasting and e-services to consumers. VAT on these services is now chargeable where the consumer is located instead of where the supplier is located. This ensures that the VAT goes to the Member State in which the services are used. The estimated resulting increase in receipts was €100 million and I am advised by the Revenue Commissioners that these projections were very accurate.
However, there is an additional source of revenue that we were unable to estimate at the time. As a result of the change, businesses are required to register and account for VAT in every Member State in which they supply such services to consumers or, alternatively, to avail of the optional special scheme known as the Mini One Stop Shop (MOSS). The MOSS scheme is a simplification scheme which allows a business engaged in those supplies to register in a single Member State, to file a single quarterly return and pay its VAT liability for all Member States through a web portal in the Member State of registration. The return details and payments are transferred by the Member State of registration to the relevant Member States of consumption with the Member State of registration retaining a percentage of the VAT collected. The percentage retained is 30% during 2015/6 and 15% during 2017/8.
I am advised that, following Quarter 3, the total VAT received from other Member States through the MOSS scheme in relation to supplies to consumers in Ireland for 2015 along with VAT retained by Revenue amounted to €86 million, to date in 2015.
106. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question Nos. 224 to 227, inclusive, of 17 February 2015, the status of the enforcement investigation by the Central Bank of Ireland; the number of relevant customers who will be entitled to refunds; the total loss involved; when appropriate redress for those customers will be made; and if he will make a statement on the matter. [43405/15]
Amharc ar fhreagraAs I have outlined previously, permanent tsb ("PTSB") is currently subject to an Enforcement Investigation by the Central Bank in relation to the circumstances in which certain customers lost an entitlement to return to a tracker rate mortgage or, in the case of Springboard which was a subsidiary business of PTSB at the time, were placed on the incorrect rate during their mortgage contract.
On 28 July 2015, PTSB announced that it had launched a Mortgage Redress Programme ("MRP") to correct the position of customer accounts who it had identified were impacted in these matters. The bank confirmed that a total of 1,372 customer accounts were impacted. Of this number 1,152 were linked with PTSB and 220 were linked with Springboard.
PTSB informs me that as of last Friday (27 November 2015) a total of 1,147 (84%) of these customer accounts have been fully redressed. This means that, depending on the individual customer circumstances, each customer has received compensation, had their mortgage account adjusted, received a net refund due and, where appropriate, have been moved to the relevant tracker rate to which they had an entitlement. Of the number of customer accounts which have been redressed to date, 952 were linked to PTSB and 195 were linked to Springboard.
It should be noted that even though customers may accept full redress, they retain the right to appeal the matter to appeal panels established for that purpose. PTSB has informed me that there are two appeal panels, an Independent Appeals Panel for loss of ownership cases and cases which have ever been the subject of legal action and a Customers appeals panel to deal with all other appeals. The Deputy should also be aware that an affected customer has the right to appeal to the Financial Service Ombudsman or to the Courts.
The bank is continuing its work to ensure that all affected customer accounts receive appropriate redress.
As I have stated previously, it is my understanding that as part of its Enforcement Investigation the Central Bank has the power to impose a regulatory sanction on the bank for its conduct in this matter but that is ultimately a matter for the Central Bank and it would not be appropriate for me to comment on that.
On 30 September 2015, PTSB announced that it had established a wider Mortgage Product Review Group ("MPRG" ) to identify any instances where the contractual terms and conditions attached to accounts are not being fully honoured by the bank and/or whether other material issues such as the provision of key information at relevant times requires further examination. I have been informed by PTSB that the review group is now up and running.
107. Deputy Michael McGrath asked the Minister for Finance the expected cost of tax relief for corporate investment in certain renewable energy projects in 2015; and if he will make a statement on the matter. [43406/15]
Amharc ar fhreagraTax relief for corporate investments in certain renewable energy projects is provided for under section 486B of the Taxes Consolidation Act 1997. The relief was given in the form of a deduction for tax purposes from a company's total profits for its direct investment in new ordinary shares in the qualifying renewable energy company. The relief expired on 31 December 2014.
I am informed by the Revenue Commissioners that information in relation the cost of the tax relief on a year by year basis is not available. The cumulative cost of the relief to date is €21.3m.
108. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 92 of 5 March 2015, if the investigation into the tax affairs of medical consultants has been concluded; the lessons that have been learned for tax compliance generally from the investigation; and if he will make a statement on the matter. [43408/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that their programme of compliance interventions in relation to the tax affairs of medical consultants is continuing. As I indicated in replies to previous questions on this matter from the Deputy in March and April of this year, the main focus of Revenue's work is the tax issues arising from the incorporation of medical consultants' businesses.
At end September 2015, I am advised by Revenue that 586 compliance interventions had been opened on medical consultants and their controlled companies, with some 244 of these interventions having been finalised and resulting in settlements of almost €35 million, including tax, interest and penalties. The programme of compliance interventions will continue in 2016 with further additional interventions as necessary. Revenue is continuing to evaluate the programme and to use the insights gained to leverage tax compliance generally.
