Friday, 16 Sep 2016

Written Answers Nos. 270-293

Tax Reliefs Availability

Ceisteanna (270, 271, 272)

Ruth Coppinger

Ceist:

270. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a breakdown of the annual cost since 2008 of the tax reliefs and exemptions available to property developers. [25349/16]

Ruth Coppinger

Ceist:

271. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a breakdown of the annual cost since 2008 of the tax reliefs and exemptions currently available to property owners. [25350/16]

Ruth Coppinger

Ceist:

272. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a breakdown of the annual cost since 2008 of the tax reliefs and exemptions currently available to land owners. [25351/16]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 270 to 272, inclusive, together.

I am advised by Revenue that within the tax code there are a number of tax reliefs associated with property and land but not specifically for use by property developers or land owners.  Statistics in relation to the annual costs since 2008 for the various reliefs are available on the Revenue website at http://www.revenue.ie/en/about/statistics/index.html.

Updates to these statistics will be published in due course. Of particular interest to the Deputy are likely to be

- the  statistics in relation to Local Property Tax reliefs which are detailed on the website at http://www.revenue.ie/en/about/statistics/local-property-tax.html ;

- the tax expenditures and reliefs table available at  http://www.revenue.ie/en/about/statistics/costs-expenditures.html detailing the cost of  Interest Paid Loans Relating to Principal Private residence,  relief for expenditure on significant buildings and gardens, rent a room;

- property incentives statistics available at http://www.revenue.ie/en/about/statistics/property-exemptions.html;

- Home Renovation Incentive Scheme  available at http://www.revenue.ie/en/about/statistics/hri-stats.html.

In addition to the information on the Revenue website, the following tables may also be of interest to the Deputy. The following table sets out the cost of rental capital allowances and is available for the years 2009 to 2014. It should be noted that information is not available for earlier years and will not be available for 2015 until 2017.

 

Year	Estimated Cost of Rental Capital Allowances (€m)
2009	267.0
2010	250.9
2011	230.9
2012	213.3
2013	202.5
2014	185.8

The following table sets out available data on the reliefs or exemptions from Capital Acquisitions Tax duty associated with property ownership.  The cost of Spouses and Civil Partners is not shown as the necessary data are not available to provide basis for compiling these costs.  The estimated cost for the Dwelling House exemption does not take account of the availability or otherwise of the relevant thresholds if the exemption did not apply. It should be noted that information is not available for earlier years.

Exemption /Relief		2010*	2011	2012	2013	2014	2015
Dwelling House	Numbers	237	565	499	538	614	741
	Cost €m	N/A	45	38	35	41	52
Spouses and Civil Partners	Numbers	N/A	14	19	16	22	26
	Cost €m	N/A	N/A	N/A	N/A	N/A	N/A

* Contains only half year information due to a changeover in information technology systems.

Question No. 273 answered with Question No. 268.

Questions Nos. 274 to 276, inclusive, answered with Question No. 263.

National Debt

Ceisteanna (277)

Ruth Coppinger

Ceist:

277. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a breakdown of the projected total cost of the general Government debt in 2016, including interest payments and repayments of principal. [25356/16]

Freagraí scríofa

Minister for Finance

The latest estimate of General Government interest expenditure for 2016 is €6.3 billion.

The latest estimate of General Government debt for end-2016 is just under €204 billion.

The main repayment of principal in 2016 was in respect of 4.6% Treasury Bond 2016. This bond matured on 18 April 2016. The principal redemption amount on that date was €7.28 billion. €0.85 billion of this bond had previously been purchased and cancelled by the National Treasury Management Agency (NTMA) on 29 February 2016.

Sources: Stability Programme Update (SPU) April 2016, NTMA

Tax Code

Ceisteanna (278)

Ruth Coppinger

Ceist:

278. Deputy Ruth Coppinger asked the Minister for Finance the amount that could be raised from imposing a 2% public health levy on the profits of private human health and pharmaceutical companies here, including nursing homes and home care agencies. [25358/16]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that on the basis of information included in the Corporation Tax returns filed for the tax year 2014, the potential yield from imposing a 2% levy on the profits of private human health and pharmaceutical companies, including nursing homes and home care agencies, is tentatively estimated to be in the region of €150 million, with over 99% from the pharmaceutical companies.

 This yield is based on the industry code assigned to companies on Revenue records and does not include any yield associated with subsidiaries of these companies not primarily involved in the sectors mentioned in the question.  It has been assumed that the levy would apply to the taxable profits of pharmaceutical companies, nursing homes and home care agencies but would not apply to medical practices or private hospitals. Additionally the potential yield assumes no significant behavioural change on the part of these companies that could cause the expected levy yield to fall below expectations and could also cause a decrease in Corporation Tax receipts.

Tax Code

Ceisteanna (279)

Pearse Doherty

Ceist:

279. Deputy Pearse Doherty asked the Minister for Finance the number of Irish tax opinions that have been given regarding property investments held through Irish regulated funds structure including AIFs and ICAVs and also for those relating to section 110 companies for each of the years 2010 to 2015, in tabular form, given that typically an Irish tax opinion would be obtained to provide tax certainty for the investor; and if he will make a statement on the matter. [25400/16]

Freagraí scríofa

Minister for Finance

I am informed by the Revenue Commissioners that section 110 TCA 1997 contains a list of the assets which a qualifying company is allowed to hold/manage.  Property is not one of those assets.  

For the purposes of section 110 TCA 1997, a qualifying asset is a financial asset, commodities or plant and machinery.  Financial asset includes (but is not limited to) shares, bonds and other securities, derivatives, receivables, leases and hire purchase contracts, bills of exchange and similar negotiable instruments, carbon offsets and contracts for insurance.  "Commodities" means tangible assets other than currency or financial assets which are dealt with on a recognised commodity exchange.

Revenue issued two opinions in 2012 in relation to property investments and section 110 companies.

Revenue have no record of any opinions sought during this time regarding property investments held through Irish regulated funds structures.

Departmental Expenditure

Ceisteanna (280)

Pearse Doherty

Ceist:

280. Deputy Pearse Doherty asked the Minister for Finance the landlords that his Department or bodies under his aegis paid rent to in each of the past three years; and the sums paid in each case. [25417/16]

Freagraí scríofa

Minister for Finance

In response to the Deputy's question, the Office of Public Works is involved in most purchases and leasing of buildings by the State including buildings leased for the Department of Finance.

With respect to the Bodies under the Aegis of the Department of Finance, I have been advised of the information detailed in the following table.

-	2014	2015	2016
Tax Appeals Commission	Managed by OPW	Managed by OPW	Managed by OPW
Office of the Comptroller and Auditor General	Nil	Nil	Nil
Central Bank of Ireland	Iveagh CourtSean Reilly (Q1-4) €1,664,556Spencer DockIBRC Assurance Company Limited (Q1-3) €2,696,164.92Specific Assets of Harcourt Life Assurance Co Ltd (In Receivership) (Q4) €898,721.64	Iveagh CourtSean Reilly (Q1-3) €2,029,500Cedar Real Estate Investment PLC (Q4) €676,500Spencer DockSpecific Assets of Harcourt Life Assurance Co Ltd (In Receivership) (Q1-Sale Date) €3,047,838.61	Iveagh CourtCedar Real Estate Investment PLC (Q1-3) €2,029,500Cedar Real Estate Investment PLC (Q4 to be paid) €676,500
Credit Review Office	€46,000 Enterprise Ireland	€46,000 Enterprise Ireland	€46,000 Enterprise Ireland
Credit Union Advisory Committee	Nil   No Landlord	Nil   No Landlord	Nil   No Landlord
Credit Union Restructuring Board(ReBo)	€59,653   Law Reform Commission (LRC)	€75,616   Law Reform Commission (LRC)	€56,712   Law Reform Commission (LRC)
Disabled Drivers Medical Board of Appeal	Nil	Nil	Nil
Financial Services Ombudsman Bureau	€165,600.00     Trinity College Dublin	€165,600.00     Trinity College Dublin	€205,134.45 (payment from Jan Aug.)   Trinity College Dublin
Financial Services Ombudsman Council The FSOC uses the premises of the FSOB.	-	-	-
Investor Compensation Company Limited (Premises 3a Spencer Dock, North Wall Quay)	€35,671 Central Bank of Ireland	€44,494 Central Bank of Ireland	€61,880 (est) Central Bank of Ireland
Irish Bank Resolution Corporation (these are cash payments made in each of the three years and do not necessarily reflect the actual rental amount for that year due to timing differences)	€768,466.74 Irish Life €19,065 B.J. Murray Developments Ltd €53,773.80 Tincorra Investments Ltd €116.70 Dublin City Council €170,425 Eugene Murtagh €366,294.50 Aramark Irish Estates Mgmt Ste €695,814.05 London & Regional Properties €2,704.85 HWBC Chartered Surveyors €129,658.55 Sheehan & Company €17,204.72 The Centre Partnership €70,561.87 Monaghan Breen Co-ownership	€260,935.86 Kleinwort Benson €889,294.27 Irish Life €17,600.92 The Madison Partnership	€456,056.03 Workday Limited €42,606.86 Haleridge Investments €368,060.19 Kleinwort Benson
Irish Financial Services Appeals Tribunal	Nil	Nil	Nil
Irish Fiscal Advisory Council	Nil	Nil	Nil
National Asset Management Agency	€1,730,462 Ambiorix Ltd	€506,242 Ambiorix Ltd €1,630,232 Jayfield Investments Limited	€1,090,666 Jayfield Investments Limited
National Treasury Management Agency	€2,827,500 Ambiorix Ltd	€2,827,500 Jayfield Investments Limited	€1,413,750 Jayfield Investments Limited
Office of the Revenue Commissioners	Nil	Nil	Nil
Social Finance Foundation	€6000 Card Commerce Ltd T/A Savvy 40 Eastmoreland Lane, Ballsbridge, Dublin 4	€0	€0
Strategic Banking Corporation of Ireland	Included in figures for NTMA and NAMA (above) as occupancy payments.	Included in figures for NTMA and NAMA (above) as occupancy payments.	Included in figures for NTMA and NAMA (above) as occupancy payments.

Insurance Costs

Ceisteanna (281)

Danny Healy-Rae

Ceist:

281. Deputy Danny Healy-Rae asked the Minister for Finance the progress being made in determining the causes of the increase in insurance costs in 2016, as most premiums have increased significantly (details supplied); and if he will make a statement on the matter. [25429/16]

Freagraí scríofa

Minister for Finance

The Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance.  The Working Group brings together all the relevant Departments and Offices involved with the process.  Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.

The core areas to be examined by the Working Group in this first phase are:

- The motor insurance sector generally, at present and in recent years

- The effects of legal costs and litigation processes on insurance costs

- The current claims compensation arrangements and the cost of claims

- Insurance data and information

- The impact of accident rates

- The impact of unlawful activity on the insurance sector, and

- Other market issues.

A number of additional issues which impact upon consumers and the business sector in relation to motor insurance are also being considered.  These include:  

- The lack of a link between the National Car Test and the availability of insurance,

- Insurance costs for young drivers, and those over 65,

- The case for rural dwellers with no public transport to have car insurance at a reasonable cost,

- The issue of returning immigrants having difficulty obtaining car insurance,

- The cost of insurance to taxi drivers, hackneys and hauliers. 

Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced.  The sub-groups will be holding their second meeting in the coming days, and it is proposed that they meet regularly.  The outputs of these sub-groups will feed into the meetings of the Working Group.

The Working Group has held two meetings to date, on 20th July and 1st September.  It will hold its third meeting on 15th September.  Further meetings are scheduled for every two to three weeks to the end of 2016. 

The consultation process has commenced.  Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including:

Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance, and the Central Bank of Ireland.

The Working Group and the four sub-groups will also meet with the relevant stakeholders.  At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, and possibly a couple of other relevant stakeholders depending on their availability.  In addition, submissions received from all interested parties will be considered as part of the process.

By the end of October, the Working Group will provide me with an update report which will set out the priority actions required.  From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.

Question No. 282 answered with Question No. 251.

Fiscal Data

Ceisteanna (283)

Pearse Doherty

Ceist:

283. Deputy Pearse Doherty asked the Minister for Finance if he will outline the revised figures for fiscal space in each of the years 2017 to 2021, in view of the European Commission's ruling against a company's (details supplied) Irish tax arrangements; and if he will make a statement on the matter. [25498/16]

Freagraí scríofa

Minister for Finance

The European Commission issued a negative decision in the Apple State aid case on the 7th September.  In so doing, they instructed Ireland to recover up to €13bn of alleged state aid from the company plus interest.  

The Government will now challenge the decision before the European Courts, and it could be several years before this is ultimately resolved.

I have been advised by my officials following consultation with the CSO and Eurostat, that there will be no impact on the General Government balance due to the Commission s decision until the appeal process has been completed. As such, there will be no fiscal impact for the years 2017-2021 and the fiscal space calculations for this period are not affected by this descision.

The latest estimates of fiscal space available for Budget 2017 were set out in the Summer Economic Statement (SES), published in June of this year.

State Aid Investigations

Ceisteanna (284, 288, 314)

Pearse Doherty

Ceist:

284. Deputy Pearse Doherty asked the Minister for Finance the legal costs and other costs to date incurred by his Department in relation to the EU Commission investigation into a company (details supplied) and state aid and any expected further expenses; and if he will make a statement on the matter. [25507/16]

Joan Burton

Ceist:

288. Deputy Joan Burton asked the Minister for Finance the amounts the state has paid for fees and advice regarding a company's tax case (details supplied) and the European Commission; the further professional fees likely to be incurred in respect of most recent ruling and from whom; and if he will make a statement on the matter. [25528/16]

Catherine Murphy

Ceist:

314. Deputy Catherine Murphy asked the Minister for Finance the total estimated cost in relation to the legal challenge to be mounted in appeal to the ruling of the European Commission regarding a company's tax arrangement with Ireland (details supplied); the way this estimate was arrived at; the cost benefit analysis undertaken regarding costs of the appeal; and if he will make a statement on the matter. [25968/16]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 284, 288 and 314 together.

The Apple State Aid investigation has been on-going since June 2013, when the Competition Directorate of the European Commission sent their first information request to Ireland.  In June 2014 they announced that they had opened a formal state aid investigation in both Ireland, the Netherlands and Luxembourg.  They later announced a similar investigation into Belgium.

This case is a priority matter for the State and the Irish authorities have engaged fully with the Commission throughout the process.  Detailed and comprehensive responses have been provided to the Commission to demonstrate that the appropriate amount of Irish tax was charged in accordance with the relevant legislation, that no selective advantage was given and that there was no State Aid.  This has involved a significant degree of legal and technical complexity, and additional expertise has been engaged where required. 

Over the past three years approximately €1 million has been spent in total.  This includes all legal costs, consultancy fees and other associated costs.  These have been paid by the Department of Finance, the Revenue Commissioners, the Attorney General's Office and the Chief State Solicitor's Office.

As of September 2016, the Commission announced that it has issued a negative decision in the Apple State aid case. The Government disagrees profoundly with the Commission's analysis and will now challenge the Commission's decision before the European Courts. This is necessary to appeal this case to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign Member State competence of taxation.

This is a legal process that could take several more years to conclude.  It is therefore not possible to provide a comprehensive estimate of expected further expenses at this time.  As it is an important issue for the State, the case will continue be appropriately resourced.

Central Statistics Office Reports

Ceisteanna (285)

Joan Burton

Ceist:

285. Deputy Joan Burton asked the Minister for Finance the action he has taken to address the recent Central Statistics Office figures for the economy; his views on whether this is a serious reputational issue for the State; the advice and reports he has commissioned; if he will publish such reports as soon as available; and if he will make a statement on the matter. [25519/16]

Freagraí scríofa

Minister for Finance

The Central Statistics Office (CSO) published the National Income and Expenditure results for 2015 in July which show that the economy grew by 26.3 per cent.

The unprecedented figure is largely related to the activities of multinationals across a small number of sectors including the tech, pharmaceutical and aircraft leasing sectors.  In particular, corporate restructuring and a number of balance sheet reclassifications had a substantial impact.

Given the exceptionality of the data, statisticians from Eurostat visited the CSO at end-August.  I am informed that the meeting was a positive one, in which Eurostat officials were satisfied regarding the plausibility of the CSO's estimates.

The factors driving the exceptional growth last year have little, if any, impact on actual output and income developments in Ireland and greatly exaggerate the size of our economy.  However, it is also important to stress that more concrete indicators such as consumer spending, taxation trends, employment growth - of the underlying levels of economic activity point to a continuation of a now firmly-rooted recovery. These indicators are closely monitored by investors, analysts, credit rating agencies and others and it is the ongoing recovery that is the most important factor behind the restoration of Ireland's international reputation.

It is also important to note that while the figures are heavily distorted by a relatively small number of very large multinationals, they are compiled in accordance with best international practice and statistical standards.  They measure what they are supposed to measure this is an important message that should be communicated internationally.  But what is also clear is that in a small, open and very globalised economy such as Ireland, it is clear that the relevance of these figures as a metric by which underlying economic trends and changes in living standards can be assessed is considerably less than elsewhere.

With this in mind, the Central Statistics Office has put together a group of experts to provide guidance on how more relevant indicators could be produced and published alongside these figures in the future. My Department will be represented on this group. It is expected that this group will publish a report detailing their findings later this year.

State Aid Investigations

Ceisteanna (286)

Joan Burton

Ceist:

286. Deputy Joan Burton asked the Minister for Finance the discussions, formal and informal, he and his Department had with national and European institutions regarding the tax affairs of a company (details supplied); if he has spoken with the relevant EU Commissioners; if so, the dates, times and subjects of such meetings; if he will publish reports and so on arising from the matters; and if he will make a statement on the matter. [25522/16]

Freagraí scríofa

Minister for Finance

On 30 August 2016, it was announced that the Commission had concluded their single investigation in Ireland and had issued a negative decision in the Apple State Aid case. 

The investigation was a priority matter for the State and every piece of information requested that was in the Irish authorities possession was given to the Commission. Over the course of the three year investigation, detailed and comprehensive responses were provided to the Commission demonstrating that the appropriate amount of Irish tax was charged in accordance with the relevant legislation, that no selective advantage was given and that there was no State Aid.  This engagement included meetings both at political and official level, including a meeting between myself and Commissioner Vestager in July 2016.

The Government remains of the view that there was no breach of State Aid rules in this case and that the legislative provisions were correctly applied.  By appealing the Decision the Government is taking the necessary course of action to vigorously defend the Irish position.

State Aid Investigations

Ceisteanna (287)

Joan Burton

Ceist:

287. Deputy Joan Burton asked the Minister for Finance the grounds on which he proposes to appeal against the recent ruling by the European Commission regarding the tax affairs of a company (details supplied); the engagement between him and his Department and the European Commission since the announcement; and if he will make a statement on the matter. [25525/16]

Freagraí scríofa

Minister for Finance

The Government has authorised me to arrange for annulment proceedings to be brought before the General Court of the European Union in the Apple State case.  This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign Member State competence of taxation.  The Attorney General has been requested to prepare the legal grounds in support of those proceedings and to take all other steps incidental to the conduct of those proceedings.

Dáil Éireann has also passed a motion supporting the Government decision to appeal the European Commission's decision that Ireland provided unlawful State aid to Apple.

Notwithstanding the right of appeal, Ireland is legally obliged to recover the alleged state aid from Apple in the interim.   My officials will be engaging with the Commission over the coming months as part of this recovery process.

Question No. 288 answered with Question No. 284.

State Aid Investigations

Ceisteanna (289, 309)

Joan Burton

Ceist:

289. Deputy Joan Burton asked the Minister for Finance the estimated amounts of tax payments to Ireland regarding a company's tax case (details supplied) and the European Commission, including any estimated fees and penalties and interest; when they will fall due; if potential escrow arrangements have been identified; and if he will make a statement on the matter. [25529/16]

Alan Farrell

Ceist:

309. Deputy Alan Farrell asked the Minister for Finance if he will identify the European Union treaty which requires a company registered in a jurisdiction within the European Union to make payment to a State following a finding of the European Commission; the legal and practical basis upon which the Revenue Commissioners would act to collect payment from a company following such a decision; and if he will make a statement on the matter. [25897/16]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 289 and 309 together.

On 30 August 2016, the European Commission issued a negative decision in the Apple State Aid case.  

The Government profoundly disagrees with the Commission's analysis and will now challenge the decision before the European Courts. 

Notwithstanding this appeal, Ireland is required by law to recover the alleged State aid from the company.  As the amounts are subject to legal proceedings, the sums may be placed a ring-fenced escrow account, pending the outcome of the European Court process. 

The Commission has said that the recovery amount could total up to €13 billion plus interest.  This sum represents an estimation of what, in the European Commission's view, is the amount of additional tax that would have been paid over the past ten years had Ireland applied the European Commission's methodology. 

The exact amount is to be determined by the Irish authorities on the basis of a technical and detailed calculation which applies the Commission's methodology, as set out in the Final Decision document.  These amounts are also subject to an interest rate, set by the European Commission, calculated in accordance with Chapter V of Regulation (EC) No. 794/2004.  The Commission has asked Ireland to calculate the exact amount and recover it from the company within four months.  

It is important to emphasise that Ireland is not subject to any fine or penalty arising from this Decision.

Tax Code

Ceisteanna (290)

Michael Healy-Rae

Ceist:

290. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding inheritance law here; and if he will make a statement on the matter. [25535/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that there are two forms of relief from Capital Acquisitions Tax (CAT) which may be relevant in the circumstances outlined in your question.

The first, known as 'agricultural relief', may apply to reduce the taxable value of a gift or inheritance of agricultural property, including land, by 90% once certain conditions are satisfied. The second, referred to a 'favourite nephew or favourite niece relief', applies the higher Group A tax-free threshold for CAT liability, normally applied to gifts or inheritances between parents and children, to a niece or nephew in certain circumstances. Both reliefs may apply to the same gift or inheritance.

Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for agricultural relief. The relief takes the form of a 90% reduction in the taxable market value of the gifted or inherited agricultural property.

To qualify for the relief the person taking the gift or inheritance (the 'beneficiary') of the agricultural property must qualify as a 'farmer' for the purpose of section 89 CATCA 2003. This means that a beneficiary's agricultural property must comprise at least 80% by gross market value of the beneficiary's total property at a particular date. In addition, for gifts and inheritances taken on or after 1 January 2015 a beneficiary, or a lessee where the beneficiary leases the agricultural land, must actually farm the land for a period of at least 6 years after taking the gift or inheritance.

The relationship between the person who provides the gift or inheritance (i.e. the disponer) and the beneficiary determines the maximum tax-free threshold known as the 'Group threshold' below which gift or inheritance tax does not arise. There are, in all, three separate Group tax-free thresholds based on the relationship of the beneficiary to the disponer.

Group A: €280,000 - applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: €30,150 - applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: €15,075 - applies in all other cases.

Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on the current benefit. Tax at the rate of 33% is payable on any excess received over the relevant tax-free threshold.

Ordinarily, a nephew or niece of a disponer is entitled to the Group B tax-free threshold of €30,150. However, a nephew or niece who has worked substantially on a full-time basis for a period of five years prior to the gift or inheritance in carrying on, or assisting in the carrying on, the trade, business or profession of the disponer is entitled to the Group A tax-free threshold of €280,000 for the purposes of computing the tax payable on any gift or inheritance received by him or her of those business assets. This relief is known as favourite nephew or favourite niece relief and applies equally to a nephew or a niece who satisfies the conditions for the relief.  

This specific relief is targeted at gifts or inheritances of business assets in circumstances where the nephew or niece has, by their continued presence on a weekly basis, placed their labour and expertise at the disposal of the disponer thereby ensuring that material benefit is conferred on the business. The relief is designed to ensure that, in those circumstances, the higher Group A tax-free threshold of €280,000 is available to the deserving nephew or deserving niece. 

This means that, provided a nephew or niece satisfies the relevant conditions, they could inherit a farm from an aunt or an uncle and qualify for both agricultural relief and favourite nephew or favourite niece relief on that transfer. Assuming the nephew or niece has no previous gifts of inheritances under the Group A tax-free threshold since 5 December 1991, they could potentially inherit a farm from an aunt or uncle with a value of up to €2,800,000 without any liability to CAT arising.

State Claims Agency

Ceisteanna (291)

Seán Fleming

Ceist:

291. Deputy Sean Fleming asked the Minister for Finance if the State Claims Agency, when settling cases on behalf of the State including the HSE of medical negligence and agreeing a compensation payment, takes into account the fact that these compensation payments may be considered means by the Department of Social Protection where a person may subsequently be making a claim for a means tested social protection payment; if additional compensation is factored in to allow for the fact that the payment of the compensation may prevent a person receiving a social protection payment that without the compensation payment they would otherwise have been entitled to; and if he will make a statement on the matter. [25548/16]

Freagraí scríofa

Minister for Finance

The State Claims Agency (SCA) advises me that when settling medical negligence or other personal injury claims taken against the State, they do not, in a manner similar to other indemnifiers and insurers, take into account that the payment of compensation, in such cases, may be considered "means" by the Department of Social Protection, in circumstances where the claimant/plaintiff subsequently applies for a Department of Social Protection allowance/benefit.  The relevant rules as to what constitutes "means" for the purposes of the Department of Social Protection benefits/allowances are set out in:

1. Parts 1,2,3 and 5 of the Third Schedule of the Social Welfare (Consolidation) Act, 2005, as amended; and

2. Chapter 6 of Part 3 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (S.I. 142 of 2007), as amended. 

It is not legally permissible for the SCA to increase the level of settlement in any individual case to take account of the effect of a statutory provision which specifies the receipt of compensation to constitute "means" for the purposes of qualification for Department of Social Protection allowances/benefits.  

Finally, the SCA is statutorily mandated by Section 8 of the National Treasury Management Agency (Amendment) Act, 2000 to manage claims in such manner as to ensure that the liability of the State, in relation to claims under its management, is contained at the lowest achievable level.

Fuel Laundering

Ceisteanna (292)

Declan Breathnach

Ceist:

292. Deputy Declan Breathnach asked the Minister for Finance if his attention has been drawn to a resurgence in the practice of diesel washing around the Border counties; his views on the continued effectiveness of the marker introduced to mark rebated fuels in March 2015 against illegal fuel laundering; the number of arrests that have been made for fuel laundering in 2016; and if he will make a statement on the matter. [25599/16]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that they work closely with law enforcement partners both at home and abroad to disrupt and deter diesel laundering activities. Revenue co-operates extensively with, inter alia, An Garda Síochána and HM Revenue and Customs in Northern Ireland through cross-Border enforcement groups to target those that are involved in such activities.

I am also advised that the number of intermediate bulk containers, IBCs, of waste from diesel washing dumped in counties, Louth, Monaghan and Donegal have reduced significantly since the Accutrace s10 marker was introduced as evidence in the data set out in the following table.

Period	Monaghan	Louth	Donegal
Jan July 2015	186	239	0
Jan July 2016	11	69	0

Revenue is satisfied with the effectiveness of the new marker introduced  in Ireland and the UK on the 01/04/2015. A national random sampling programme of fuel licence holders was conducted by Revenue in 2016 with a view to quantifying the extent to which laundered road diesel was evidenced among approximately 200 licensed fuel outlets.  No evidence of the new marker was found in any of the traders sampled and affirms the effectiveness of the various measures introduced by Revenue over recent years, including the Accutrace s10 marker. Additionally, no fuel laundering plants have been detected in the State since the introduction of the marker and no arrests have been made for fuel laundering in the period.

The work to tackle cross-jurisdictional organised crime such as diesel laundering is supported and reinforced by the establishment, in the framework of A Fresh Start, the Stormont agreement and implementation plan, of the joint agency task force, which includes Revenue. In this context, the development of strategic and tactical plans has been agreed by all key stakeholders to further support effective action against cross-Border excise fraud. This interagency national and international co-operation is complemented by Revenue's use of intelligence gathering, risk profiling and effective intervention programmes to counter the threat posed by criminal activities such as fuel fraud.

Over the past number of years Revenue has implemented a number of strategies against fuel fraud,  underpinned by an extensive and effective legislative framework to maximise the impact on the illegal operations referred to in the Deputy's question. I am satisfied that the current legislative framework provides an effective basis for action by Revenue against fuel offences, and I am assured by Revenue that action against such activities continues to be a key focus of its work.

Tax Code

Ceisteanna (293)

Michael Healy-Rae

Ceist:

293. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the proposed sugar tax; and if he will make a statement on the matter. [25603/16]

Freagraí scríofa

Minister for Finance

The Programme for a Partnership Government commits to the introduction of a tax on sugar-sweetened drinks (SSDs).  The tax will contribute towards important public health goals, as well providing a new source of revenue for public spending. The Department of Health has also supported the introduction of a tax on SSDs in order to reduce added-sugar in diets, particularly the diets of children and young people.  The proposed tax on SSDs in seen as just one measure in a comprehensive Department of Health plan to tackle obesity in Ireland, which is due to be published this year. Sugar-sweetened drinks taxes have been introduced in a number of European countries in recent years.  The UK is due to introduce a soft-drinks industry levy from April 2018. The UK is currently undertaking a consultation process with the soft drinks industry to ensure that the levy they introduce will be effective from a public health perspective, efficient to collect and not onerous on the industry. The proposal for a tax on SSDs was examined by the Tax Strategy Group.  The papers are available on my Department's website and the introduction of such a tax is under consideration.