Eoghan Murphy
Ceist:210. Deputy Eoghan Murphy asked the Minister for Finance his views on a submission (details supplied), given the changes introduced in budget 2016. [46796/15]
Amharc ar fhreagraTax Code
Ceisteanna (210)
Freagraí scríofa
In June 2015, I launched a consultation seeking the views of the public on the role that the tax system can play in encouraging entrepreneurship. In light of the responses received, the Department of Finance conducted a review to examine the effectiveness of the tax system in encouraging entrepreneurship in Ireland, and consequently whether there was scope for changes to the existing tax system and extant tax expenditures, or for the introduction of new tax expenditures. As the submission cited by the Deputy was considered as part of this consultation process I do not consider it would be appropriate to address it individually since it was just one of a large number that, collectively, fed into the review. This review in turn, informed my decision making in the context of Budget 2016.
The Deputy will be aware that Budget 2016 contained a considerable number of measures aimed at supporting entrepreneurs and these are documented on my Department's website, in particular as Appendix E to the Budget Book at http://www.budget.gov.ie/Budgets/2016/Documents/Budget%20Book%202016%20-%20full%20document.pdf and also at http://www.budget.gov.ie/Budgets/2016/Documents/Entrepreneurship_Action_Plan_pub.pdf.
Insurance Compensation Fund
Ceisteanna (211)
Shane Ross
Ceist:211. Deputy Shane Ross asked the Minister for Finance the amount taxpayers have paid into the Insurance Fund since the liquidation of Insurance Corporation of Ireland. [46811/15]
Amharc ar fhreagraFreagraí scríofa
The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to assess the Insurance Compensation Fund (ICF) from time to time to see if it needs financial support. Where it is of the opinion that the state of the ICF is such that financial support should be provided for it, it is allowed to determine an appropriate contribution to be paid to the ICF by each insurer.
This is calculated as a percentage determined by the Central Bank, not exceeding 2 per cent, of the aggregate of the gross premiums paid to the insurer authorised in Ireland or authorised in another EEA Member State in respect of policies issued in respect of risks in Ireland. While they are not required to do so, insurance companies usually pass this charge onto non-life insurance policy holders. Therefore, the amounts paid into the ICF are paid ultimately by non-life policy holders and not all taxpayers per se.
The Insurance Compensation Fund levy has been applied on two occasions, with a total of €442.8m has been collected to date. The first instance was following the collapse of PMPA in 1983 and the collection of this levy ended in 1992. The second followed the placing of Quinn Insurance into administration, with the collection of the levy starting in 2012.
In the case of the insolvency of the Insurance Corporation of Ireland a levy was not applied. ICI, a subsidiary of Allied Irish Bank, collapsed in 1985. No levy was placed on the industry then as compensation to meet the company's liabilities was provided by a combination of AIB funding, commercial loans and State loans which have since been repaid.
The Insurance Act 1964 provides that the Minister for Finance may, on the recommendation of the Central Bank of Ireland, advance monies to the ICF on such terms as to repayment, interest and other matters as may be determined by the Minister, so as to enable payments out of the Fund to be made expeditiously.
In relation to Quinn Insurance in Administration (QIL) I, as the relevant Minister, have since November 2011 advanced a total of €1,012.3m to the ICF, €200m of which has been refunded by QIL. The remaining balance of €812.3m is a loan which is required be repaid to the Exchequer from the ICF over time with interest.
Excise Duties
Ceisteanna (212)
Billy Kelleher
Ceist:212. Deputy Billy Kelleher asked the Minister for Finance if he will reverse the increase in excise on spirits imposed in 2014 budget; and if he will make a statement on the matter. [46871/15]
Amharc ar fhreagraFreagraí scríofa
As the Deputy is aware, the consumption of alcohol can have negative social and public health implications as well as economic costs. It is for this reason that excise duty is levied on alcohol products to account for these externalities.
The increase in the rate of excise duty imposed on spirits in Budget 2014 must be viewed in context. The rate of duty on spirits remained unchanged between 2003 and 2009. Excise on spirits was reduced in Budget 2010 but subsequently increased in Budgets 2013 and 2014 in order to assist Government finances. However, it should be noted that currently excise, as a percentage of the retail price of a glass of spirits, is 14.7%, which is significantly lower than in 2003, when it was 17.3%.
Reducing the excise duty on spirits, as requested by the Deputy, would cost in the region of €35m in a full year. This Government, in the limited fiscal space available, has prioritised reducing taxation on income earned in employment, in preference to other areas such as on alcohol products.
Accordingly, I have no plans to reverse the excise increase on spirits provided for in Budget 2014.
Credit Unions
Ceisteanna (213)
Terence Flanagan
Ceist:213. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding credit unions; and if he will make a statement on the matter. [46877/15]
Amharc ar fhreagraFreagraí scríofa
Credit unions are similar to banks in that they are first and foremost financial institutions which primarily accept deposits and make loans. However, credit unions differ from banks in that they exist to attain the economic and social goals of the people who comprise their membership.
Credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. This Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide these vital services to their members and to ensure the stability of the sector into the future. These measures include:
- the establishment of the Commission on Credit Unions;
- the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;
- the establishment of the Credit Union Restructuring Board ReBo;
- the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;
- the availability of €250 million for voluntary restructuring of credit unions facilitated by ReBo; and
- the availability of €250 million for resolution purposes.
These measures stemmed from recommendations made by the Commission on Credit Unions in its final Report and have been implemented over the last five years to acknowledge the increasing role for a strengthened and revitalised credit union sector, thus putting credit unions in a position to play an increasing role in the retail financial landscape of the future in this country.
My Department is always open to considering new 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 while protecting members savings.
Tax Reliefs Data
Ceisteanna (214)
Michael McGrath
Ceist:214. Deputy Michael McGrath asked the Minister for Finance the last occasion when a profession was added to the list that can claim rate expenses system for tax relief; and if he will make a statement on the matter. [46889/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that expenses incurred by Veterinary Nurses were the most recent addition to the list of approved flat rate expenses. The applicable rates since 2012 are as follows:
Where Veterinary Nurses are obliged to supply and launder their own uniforms: €400
Where Veterinary Nurses launder uniforms that are supplied by an employer: €150
Tax Data
Ceisteanna (215)
Róisín Shortall
Ceist:215. Deputy Róisín Shortall asked the Minister for Finance regarding special purpose vehicles set up to take advantage of the provisions of section 110 of the Taxes Consolidation Act 1997, as amended, the number of such special purpose vehicles known to the Revenue Commissioners; the number of forms S110 received by the Revenue Commissioners in each of the years 2010 to 2015; the number of such vehicles audited by the Revenue Commissioners in each of those years; the amount of value added tax refund in each of those years; the value of the underlying assets held in these vehicles which have been securitised; the number and grades of staff of the Revenue Commissioners engaged in the monitoring of securitisation, by grade, by proportion of time allocated to the work, by Revenue divisions in which they are located and by the number of meetings held between staff of the Revenue Commissioners and staff in the Financial Regulator's Office regarding policing compliance levels with Irish law by these companies. [46892/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that:
(1) The number of Special Purpose Companies set up in accordance with section 110 of the Taxes Consolidation Act 1997 is 2,144. This excludes companies whose tax registration subsequently ceased as the company has been liquidated.
(2) The number of notifications received by Revenue for each of the years 2010 to 2015 is as follows:
|
Year |
Number of Notifications Received |
|
2010 |
124 |
|
2011 |
155 |
|
2012 |
123 |
|
2013 |
221 |
|
2014 |
335 |
|
2015 |
404 |
|
Total |
1,362 |
It should be noted that these numbers include a small number of companies that no longer trade and have been liquidated.
(3) Section 110 companies are assigned to the Financial Services (Banking) District in Revenue's Large Cases Division. A large number of financial services taxpayers additional to section 110 companies are assigned to that District. Statistics relating to audits and other risk interventions are not recorded by reference to the type of taxpayer subject to intervention. Accordingly, it is not possible to establish the number of section 110 companies audited during each of the years 2010 to 2015.
(4) The amount of Value Added Tax repayments made in each of the years 2010 to 2015 is as follows:
|
Year |
VAT repaid |
|
2010 |
€436,136 |
|
2011 |
€1,265,745 |
|
2012 |
€1,302,081 |
|
2013 |
€1,344,764 |
|
2014 |
€2,558,453 |
|
2015 |
€3,063,582 |
Given the timeframe to provide information, these figures are only in respect of tax registrations that were live as at 6 January 2016. VAT repaid to section 110 companies whose tax registration ceased between 2010 and 2015 is not included.
(5) There is no requirement for information on the value of underlying assets held by section 110 companies to be included on the Corporation Tax returns submitted to Revenue. While such information is included on the individual company's annual statutory accounts which must be submitted to Revenue, it is not possible to aggregate this information at an industry level. Accordingly, I am unable to provide this information.
(6) Currently there are 14 staff assigned to Revenue's Financial Services (Banking) District in the Large Cases Division. 6 of the staff are at Principal/Assistant Principal level, 3 at Higher Executive Officer/Executive Officer level and 5 at Clerical Officer level. The majority of the staff in the District are involved to some degree in monitoring section 110 companies. Assistance is provided to the District by other specialised areas of the Large Cases Division, In addition, other specialised areas of Revenue provide assistance in monitoring section 110 companies, including in the areas of legislative interpretation, tax return processing and collection functions. Activities are recorded by reference to function (e.g. audit, other risk interventions, customer service) rather than by reference to taxpayer type (e.g. section 110 companies). It is not possible to estimate the percentage of staff time devoted to dealing with section 110 companies.
(7) Section 88 of the Central Bank Act 2013 allows for the provision of information by Revenue to the Central Bank relating to companies set up in accordance with section 110 of the Taxes Consolidation Act 1997. Two meetings took place with the Central Bank in 2015. The primary purpose of the meetings was to discuss the type of information available to Revenue and agree the format for the transmission of information to meet the requirements of section 88.
Pension Provisions
Ceisteanna (216, 218)
Michael McCarthy
Ceist:216. Deputy Michael McCarthy asked the Minister for Finance his views on correspondence (details supplied) regarding a pension scheme; and if he will make a statement on the matter. [46893/15]
Amharc ar fhreagra
Ciaran Lynch
Ceist:218. Deputy Ciarán Lynch asked the Minister for Finance if he will reverse the effects of the pension levy (details supplied); and if he will make a statement on the matter. [46898/15]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 216 and 218 together.
The original 0.6% levy ended in 2014 and the additional levy of 0.15% for 2014 and 2015 ended last year. No pension fund levy will be applied for 2016 or is planned for future years.
In both cases the details supplied refer to a particular pension scheme. Two arguments are made in relation to this scheme. The first is that the deficit in the scheme's fund has been made worse by the levies. The second is that members of the scheme have had their pensions reduced as a result of the levies.
The chargeable persons for the levies are the trustees or other persons (including insurance companies) responsible for the management of the assets of the pension schemes or plans. The payment of the levies is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levies. It is up to the trustees to decide whether and how the levies should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible.
However, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levies.
If it is the case that the trustees of the scheme in question have chosen to pass on the cost of the levies then, to the extent to which they have done so, any deficit which the scheme was carrying will not have been increased as a result of the levies.
It is not the case, as suggested in the details supplied, that any part of the levies will be due for payment in 2016. The payment date for the final part of the 0.15% levy was the 25th of September 2015.
In the details supplied it is suggested to return money collected through the levies "in line with the return of money to retired public servants". While public service pensions are not fund-based and so have not been subject to the pension fund levies, serving and retired public servants have been subject to the Pension Related Deduction (PRD) and Public Service Pension Reduction (PSPR) as appropriate, reducing, respectively, salaries and pension payments. While changes to the PRD and PSPR are proposed to start from this year which will result in reductions in the PRD and the PSPR, particularly affecting public servants on low and middle incomes and retired public servants in receipt of low pensions, there is no provision for the repayment of PRD or PSPR deductions which have already been made.
I have no plans to repay the pension fund levy tax collected as suggested in the details supplied. The value of the funds raised by way of the levies have been used on reduced tax and increased expenditure measures as part of the Jobs Initiative 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 levies may have been passed on by the chargeable persons for the levies will benefit from the changes which I began in Budget 2015 and continued in Budget 2016 to reduce the tax burden on low and middle income earners.
Finally, it is not necessary, as suggested, to rescind the legislation which enabled the levies as it was explicitly time-bound and no longer applies.
Freedom of Information Requests
Ceisteanna (217)
Pearse Doherty
Ceist:217. Deputy Pearse Doherty asked the Minister for Finance when, following the Information Commissioner's decision to vary the decision of his Department in freedom of information request 177/2013, he will release the additional documents to this Deputy. [46894/15]
Amharc ar fhreagraFreagraí scríofa
I should inform the Deputy that Freedom of Information requests are dealt with by officials in my Department. I understand that the deciding officer dealing with Freedom of Information request 177/2013 has now provided the relevant records to you.
Question No. 218 answered with Question No. 216.
Disabled Drivers and Passengers Scheme
Ceisteanna (219)
Patrick O'Donovan
Ceist:219. Deputy Patrick O'Donovan asked the Minister for Finance if he will revert to this Deputy on a matter (details supplied) regarding a passenger scheme; and if he will make a statement on the matter. [46910/15]
Amharc ar fhreagraFreagraí scríofa
The Drivers and Passengers with Disabilities Scheme is open to persons who meet the medical criteria specified in Regulation 3 of the Disabled Drivers and Disabled Passengers Regulations 1994 (S.I. 353 of 1994) and who have obtained a Primary Medical Certificate to that effect.
I am informed by the Revenue Commissioners that if individual applicants with any other medical condition, including Down Syndrome also meet the specified criteria and obtain a Primary Medical Certificate, they will qualify for the scheme. Revenue is not informed of the exact medical circumstances of the person with the disability and cannot, therefore, extract statistics on the basis requested by the Deputy.
Tax Collection
Ceisteanna (220)
Dominic Hannigan
Ceist:220. Deputy Dominic Hannigan asked the Minister for Finance if the Revenue Commissioners can demand back income tax with interest, having previously made the mistake of informing a person (details supplied) that they had no liability for income tax every year for a number of years; and if he will make a statement on the matter. [46928/15]
Amharc ar fhreagraFreagraí scríofa
Revenue is charged with the responsibility to collect taxes and duties that are payable and to levy interest and penalties in appropriate instances. The Deputy will be aware that in general the principle of self-assessment applies to taxes administered by Revenue. The primary responsibility for calculating and paying the correct amounts of tax rests with the taxpayer. Revenue does of course offer a significant range of supports to the taxpayer to calculate and pay the right amount.
I am advised by Revenue that the named individual recently submitted Income Tax returns for a number of years and Notices of Assessment issued confirming the tax due. The person concerned is in discussion with Revenue on the terms of a phased payment arrangement to deal with the debt that is due and agreement on such an arrangement is expected to be concluded shortly.