Tuesday, 17 Jan 2017

Written Answers Nos. 220-240

Universal Social Charge Payments

Ceisteanna (220)

Seán Fleming

Ceist:

220. Deputy Sean Fleming asked the Minister for Finance if the correct USC is being deducted from a person (details supplied); and if he will make a statement on the matter. [41015/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the person concerned is due a refund of USC for the years 2013 to 2015 and arrangements have been made to issue the refund to him. A review of his position for 2016 will be possible when he has his P60 for that year. Revenue will make contact with him directly in that matter shortly. Based on the information presently available to Revenue, the correct deduction of USC will be made for the current year, i.e. 2017.

Question No. 221 answered with Question No. 214.

Fuel Inspections

Ceisteanna (222)

Martin Kenny

Ceist:

222. Deputy Martin Kenny asked the Minister for Finance the actions being taken to detect the illegal use of green diesel; the number of detections in each of the years 2011 to 2015 of such illegal activity; the actions taken as a result of any such detection; and if he will make a statement on the matter. [41022/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that they have ongoing investigative and enforcement action to detect illicit use of green diesel, based on risk analysis, profiling, intelligence and the screening of vehicles.   

Details as regards detections and enforcement action are set out in the following table:

Table: Marked Mineral Oil Detections and Enforcement Action 2011 to 2015

	2011	2012	2013	2014	2015
Detections	1,159	1,170	1,318	1,150	969
Number of Convictions	225	211	237	290	305
Court penalties	€643,450	€585,250	€639,100	€782,250	€847,200
Number of Compromise penalties in lieu	607	645	630	641	584
Compromise penalties paid	€657,310	€733,865	€822,744	€846,629	€733,147

I am also advised by Revenue that the detection of illegal use of green diesel is only one element of a comprehensive strategy to tackle fraud in the mineral oil sector, particularly diesel laundering. The strategy includes extensive supply chain controls and reporting of mineral oil transactions as product moves though the distribution chain and the introduction, with the United Kingdom, of a new marker. All of the indicators point to much improved compliance in the sector and, in particular, a dramatic reduction in the incidence of laundered diesel on the market.

Fuel Laundering

Ceisteanna (223)

Martin Kenny

Ceist:

223. Deputy Martin Kenny asked the Minister for Finance the annual cost of resources, including staffing and equipment, for the customs section of the Revenue Commissioners related to the policing and enforcement of illegal fuel laundering of green diesel, in each of the years 2011 to 2015; and if he will make a statement on the matter. [41023/16]

Freagraí scríofa

Minister for Finance

In relation to the resources allocated to investigate this form of fuel fraud, I am informed by Revenue that it is a fully integrated tax administration and that it is not possible to disaggregate resources deployed exclusively at any given time on action against fuel laundering. Revenue currently has approximately 2,000 staff engaged on activities that are dedicated to targeting and confronting non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection.

Revenue's overall staffing levels have reduced from a total of 6,076 full-time equivalents at the start of 2011 to 5,647 at end 2014, they are currently at 5,976.  Revenue staff resources assigned to compliance activities has been maintained at around 2,000 during this period. I have supported Revenue's case for an increase in staff resources which has seen their allocation increased over the past three budgets, primarily in respect of compliance resources. I am advised by the Revenue Commissioners that they are committed to ensuring that enforcement work generally, and action against fuel fraud specifically, will continue to be resourced to the maximum extent possible.

I am further advised by Revenue that the serious threat that fuel fraud poses to legitimate and compliant businesses, consumers and the Exchequer is recognised, and that action against criminal activity of this kind is, and will continue to be, a central element of its work.

Revenue has implemented a comprehensive strategy to tackle the illegal fuel trade, including the introduction of stringent new supply chain controls underpinning a rigorous programme of enforcement action and supported by a range of new legislative measures that I brought forward in Finance Acts over recent years. In addition, Revenue and Her Majesty's Revenue and Customs in the United Kingdom undertook a joint initiative to find a new fiscal marker for use in marked fuels, which was introduced in Ireland and the United Kingdom from April 2015.

In addition, Revenue works with An Garda Síochána in acting against fuel fraud, and the relevant authorities in the State also cooperate closely with their counterparts in Northern Ireland, through cross-border enforcement groups, to target the organised crime groups that are responsible for a large proportion of this criminal activity. I believe that this work is being supported and facilitated by the setting up last year, in the framework of "A Fresh Start: the Stormont Agreement and Implementation Plan" of the Joint Agency Task Force, which includes Revenue.

Revenue also works in close cooperation with the relevant authorities in other jurisdictions, the European Anti-Fraud Office and other international bodies and agencies in the ongoing programmes of action at international level to combat the illicit fuel trade.

An analysis of the fuel market undertaken by Revenue in 2015 indicates that the wide-ranging programmes of action taken against fuel fraud have had a significant impact on illegal activity. This is borne out by feedback from fuel traders and their representative bodies, who report a significant reduction in the incidence of laundered fuel. In addition, Revenue carried out an extensive random sampling programme early in 2016 which tested for the presence of the new fuel marker in the storage tanks of forecourt fuel retailers. No samples tested positive for the new fuel marker.

I consider that Revenue's action against fuel fraud has had considerable success, and I am assured that action against criminal activity of that kind will continue to be a high priority.

Currency Circulation

Ceisteanna (224)

Michael McGrath

Ceist:

224. Deputy Michael McGrath asked the Minister for Finance the estimated amount of cash to be still unaccounted for in respect of each coin and note of the Irish punt; the arrangements that apply; the amount exchanged for euro in each year since 2010; and if he will make a statement on the matter. [41063/16]

Freagraí scríofa

Minister for Finance

I am informed by the Central Bank that the value of Irish Punt currency outstanding as of 31 December 2016 is as follows:

Banknotes €227,125,638.68

Coin €123,741,177.34

Following the publication of the Irish Pound Notes and Coins (Cessation of Legal Tender Status) Order 2001 (S.I. No. 313/2001, available here:http://www.irishstatutebook.ie/eli/2001/si/313/made/en/print), legal tender status was withdrawn from Irish pound banknotes and coins with effect from midnight on 9th February 2002. However, Irish banknotes and coin can be exchanged for euro at the Central Bank of Ireland either by post or by use of a drop-box facility at its Head Office. Once received by the Central Bank's Currency Issue Division, the notes/coin will be authenticated/verified and the euro equivalent reimbursed to the customer by way of electronic transfer to the customer's nominated bank account. The customer must furnish the Central Bank with valid photographic identification. The Central Bank of Ireland may forward details, including copies of ID received, of all payments for the exchange of IEPs and Euro to An Garda Síochána.  Details may also be provided to the Revenue Commissioners.

The following table, provided by the Central Bank, shows the values of the Irish Punts exchanged for Euro since 2010, which are as follows:

-	€'000	€'000
	Banknotes	Coin
2010	2,839.25	344.10
2011	2,375.73	350.45
2012	2,477.94	317.43
2013	1,625.84	236.17
2014	1,469.83	283.15
2015	1,355.50	213.32
2016	1,284.09	194.80

Central Bank of Ireland Investigations

Ceisteanna (225, 226, 227, 228)

Pearse Doherty

Ceist:

225. Deputy Pearse Doherty asked the Minister for Finance the public element there is to the ongoing Central Bank inquiry into a building society (details supplied); and if he will make a statement on the matter. [41092/16]

Pearse Doherty

Ceist:

226. Deputy Pearse Doherty asked the Minister for Finance when the results of the Central Bank inquiry into a building society (details supplied) will be published and the form in which they will be published; and if he will make a statement on the matter. [41093/16]

Pearse Doherty

Ceist:

227. Deputy Pearse Doherty asked the Minister for Finance the expected cost of the Central Bank inquiry into a building society (details supplied) currently under way; and if he will make a statement on the matter. [41094/16]

Pearse Doherty

Ceist:

228. Deputy Pearse Doherty asked the Minister for Finance the findings possible for the Central Bank to arrive at, and the penalties on persons it can impose, as a result of the inquiry into a building society (details supplied) currently under way; and if he will make a statement on the matter. [41095/16]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 225 to 228, inclusive, together.

I am informed by the Central Bank that under Part IIIC of the Central Bank Act 1942 , the Bank may hold an inquiry to determine whether or not a financial service provider is committing or has committed a prescribed contravention.  The Bank may also hold an inquiry to determine whether or not a person concerned in the management of a regulated financial service provider is participating or has participated in the commission of a prescribed contravention by the financial service provider.

Part IIIC of the Act sets out the overall framework for how Administrative Sanctions Procedure (ASP) Inquiries are to be carried out. The Bank has prescribed Inquiry Guidelines in order to set out the general procedure which it ordinarily proposes to follow at an ASP Inquiry (available here: http://www.centralbank.ie/regulation/processes/EnfI/asp/Documents/Inquiry%20Guidelines%202014.pdf).

While the Inquiry Members decide in each case how an Inquiry will proceed and the procedures to be followed, the Guidelines provide as follows:

Section 3.2 "Inquiry hearings (including any Inquiry management meetings) will usually be held in public. An Inquiry hearing may only be held in private (or part in private) in the following circumstances:

- by agreement: the Inquiry and the regulated entity agree that the Inquiry should be held in private (or part in private); or

- by decision of the Inquiry: the Inquiry decides that the Inquiry shall be held in private (or part in private) being satisfied that:

(a) evidence may be given, or a matter may arise during the Inquiry that is of a confidential nature or relates to the commission, or the alleged or suspected commission, of an offence against a law of the State, or

(b) a person's reputation would be unfairly prejudiced."

Section 3.3 "A notice will appear on the Central Bank website advising of the time and location of the Inquiry hearing. The public and media will be able to watch and listen to the proceedings in a public gallery located within the Inquiry Room or adjacent to it."

Section 3.4 "If the Inquiry hearing or part of the Inquiry hearing is to be held in private a Notice will appear on the Central Bank's website outlining the fact that an Inquiry hearing is commencing which is being held in private, or is being conducted in part in private, unless the Inquiry Members direct otherwise based on the considerations outlined in paragraph 3.2."

Notices are published on the Central Bank website on the details of any impending inquiry hearings.

In relation to publication of findings:

Section 5.20 "Generally, the Central Bank's obligations to publish the findings of an Inquiry are set out in section 33BC of the Act. Pursuant to section 33BC of the Act, where the Inquiry Members have found that a regulated entity is committing or has committed a prescribed contravention and/or the Inquiry Members have imposed a sanction, the Central Bank must, subject to paragraph 5.21, publish in such form and manner as it considers appropriate the Inquiry Members' findings and such (if any) of the particulars of the contravention(s) as it thinks appropriate, which will ordinarily include:

(a) the name of the regulated entity on whom a sanction has been imposed;

(b) details of the prescribed contravention(s) in respect of which the sanction has been imposed;

(c) details of the sanction imposed; and

(d) the grounds on which the finding is based."

Section 5.21 "Notwithstanding this, the Central Bank is not required to publish a finding or particulars:

if publication of the finding or particulars involves the disclosure of confidential information the disclosure of which is prohibited by the 'Rome Treaty'; the ECSB Statute or the Supervisory Directives (within the meaning of section 33AK(10) of the Act); or

if the Inquiry Members determine:

(i) that the finding or particulars are of a confidential nature or relate to the commission of an offence against a law of the State; or

(ii) that publication of the finding or particulars would unfairly prejudice a person's reputation."

Section 5.23 "Separate to the publication of the Inquiry Members' findings, the Central Bank may issue a market commentary on the outcome of the Inquiry, which will outline the Central Bank's view of how the findings in the case apply more broadly to the market at issue."

Section 5.24 "The Central Bank will publish annually, in summary form, information on its actions under Part IIIC of the Act, including on the decisions of any Inquiry conducted."

As the Inquiry in question is ongoing, the Central Bank is not commenting at this stage on the publication of the results of the Inquiry nor on costs incurred in relation to the Inquiry.

On the particular issue of the possible penalties or sanctions that may arise from the findings of the Inquiry, the statutory position is as follows.

If an Inquiry makes a finding that a person concerned in the management of a regulated financial service provider is participating or has participated in the commission by the financial service provider of a prescribed contravention, the Central Bank Act 1942 (as amended) under section 33AQ provides that it may impose on the person one or more of the following sanctions:

"(5) a) a caution or reprimand;

b) a direction to pay to the Central Bank a monetary penalty not exceeding the prescribed amount;

c) a direction disqualifying the person from being concerned in the management of a regulated financial service provider for such period as is specified in the order;

d) if the person is found to be still participating in the commission of the contravention, a direction ordering the person to cease participating in the commission of the contravention;

e) a direction to pay to the Central Bank all or a specified part of the costs incurred by that Authority in holding the inquiry and in investigating the matter to which the inquiry relates.

(6) For the purpose of subsection (5)(b), the prescribed amount is-

a) €1,000,000, or

b) if the regulations prescribe some other amount of money for paragraph (a), that other amount."

As the Inquiry in question is ongoing, the Central Bank cannot comment at this stage on the possible findings of the Inquiry.

Disabled Drivers and Passengers Scheme

Ceisteanna (229)

Michael Healy-Rae

Ceist:

229. Deputy Michael Healy-Rae asked the Minister for Finance if he will address an issue concerning a person (details supplied); and if he will make a statement on the matter. [41097/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the person concerned received a refund under the Drivers and Passengers with Disabilities scheme, in respect of VRT, and a further refund was received in respect of the VAT element of the adaptations that were carried out on the car.

The person concerned was advised on 28 November 2016 that there are no further refunds due in respect of this claim as they did not pay VAT on the purchase of the car.

Mortgage Book Sales

Ceisteanna (230)

Jackie Cahill

Ceist:

230. Deputy Jackie Cahill asked the Minister for Finance if the owners of distressed residential mortgages purchased from regulated entities here, that is the banks, are not themselves regulated by the Central Bank; his views on the potential for increased repossessions of family homes by financial entities operating here without regulation of any kind; and if he will make a statement on the matter. [41226/16]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted on 8 July 2015. It was introduced to fill the consumer protection gap where loans were sold by the original lender to an unregulated firm. The 2015 Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'.

Under the Act, purchasers of loan books must either be regulated by the Central Bank themselves or else the loans must be serviced by a credit servicing firm who is regulated by the Central Bank. In addition to compliance with Central Bank codes of conduct and Regulations, credit servicing firms will have to demonstrate to the Central Bank that they have robust governance and adequate resources to ensure compliance with its obligations under Irish financial services legislation. Relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes (such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears) issued by the Central Bank of Ireland and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which came into operation on 1 July 2016. Nonetheless, my Department will continue to keep all relevant legislation under review in order to ensure that borrowers whose loans have been sold are properly protected and do not lose any protections which they previously enjoyed. In addition, the Department of Finance expect that the Central Bank, as regulator of credit servicing firms, will be vigilant in this area and raise any specific instances where they have found consumers have not had their protections upheld or that their positions have been disadvantaged.

Tax Code

Ceisteanna (231)

Michael McGrath

Ceist:

231. Deputy Michael McGrath asked the Minister for Finance if there are exceptions to the four year rule relating to persons seeking a repayment of income tax they have overpaid in circumstances in which the overpayment arose from an acknowledged mistake on the part of the Revenue Commissioners; and if he will make a statement on the matter. [41231/16]

Freagraí scríofa

Minister for Finance

I am informed by Revenue that they are statutorily debarred from making repayments of tax outside of a four year period from the end of the tax year in respect of which the tax was paid, other than in very specific circumstances, for example, those provided for in section 959AA of the Taxes Consolidation Act 1997, which appear most relevant to the question. The circumstances provided for in this section include where there is a computational error in a tax assessment or where a tax assessment does not properly reflect the facts disclosed in a tax return. Equally, Revenue cannot seek payment of tax from a taxpayer outside of a four year time frame, other than in very specific circumstances provided for in legislation.

The question of whether or not a repayment claim made outside the four year period falls within the specific circumstances provided for in the legislation can only be determined by reference to the particular facts of the claim. If the Deputy's question relates to a particular taxpayer, then that taxpayer should submit all relevant information to their local Revenue Office in order that their claim can be fully considered.

Finally, any taxpayer who is dissatisfied with a decision made by Revenue may seek a review under Revenue's Complaint and Review Procedures or may appeal that decision to the Appeal Commissioners.

Banking Sector Staff

Ceisteanna (232, 237)

Clare Daly

Ceist:

232. Deputy Clare Daly asked the Minister for Finance if a person (details supplied) worked as an employee of a bank or was retained by it as a solicitor; and if he will make a statement on the matter. [41366/16]

Clare Daly

Ceist:

237. Deputy Clare Daly asked the Minister for Finance if his attention has been drawn to the fact that a person (details supplied) has access to direct accounts of a bank; and if he will make a statement on the matter. [41503/16]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 232 and 237 together.

In response to the Deputy's question, the bank identified has informed me of the following:

The solicitor identified by the Deputy has never been an employee of the bank nor any of its subsidiaries. The law firm of which the solicitor represented is a member of the Bank's panel of law firms and provides legal services to the Bank on a range of matters. Historically, the Managing Partner of the firm, was retained as the Bank's primary external lawyer in Cork. This arrangement ceased in 2013.

Neither the solicitor identified, nor any member of the firm, have had access to the bank's systems, including access to accounts of customers. Any information in the possession of either the solicitor or the firm relating to customers of the bank would only have been given by authorised officials of the bank to them/it in the ordinary course of instructing the firm.

Primary Medical Certificates Eligibility

Ceisteanna (233)

Bernard Durkan

Ceist:

233. Deputy Bernard J. Durkan asked the Minister for Finance if a primary medical certificate will be reviewed in the case of a person (details supplied); and if he will make a statement on the matter. [41400/16]

Freagraí scríofa

Minister for Finance

To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

Parents may apply to the scheme on behalf of their child, who would be a disabled passenger in the parent's car, once the child satisfies one of the six qualifying criteria.

The Senior Medical Officer for the relevant local Health Service Executive administrative area makes an independent and professional clinical determination as to whether an individual applicant satisfies the medical criteria.  After six months a citizen can reapply if there is a deterioration in their condition.

An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. The Medical Board of Appeal's clinical determination is limited to the scope of the six qualifying criteria, and the Board does not have discretion in relation to the application of these criteria.

From time to time I receive applications for assistance from individuals, and whilst I have sympathy for their situations, as Minister I cannot intervene in the decisions made by the Senior Medical Officer or the Disabled Drivers Medical Board of Appeal.

Tax Collection

Ceisteanna (234, 313, 337)

Mick Wallace

Ceist:

234. Deputy Mick Wallace asked the Minister for Finance the progress the Revenue Commissioners have made in recovering tax arrears since May 2014 on earnings from renting out rooms or entire apartments or houses through the Airbnb online service; the value of the tax arrears recovered; if the Revenue Commissioners ensured that Airbnb hosts charge VAT at the appropriate rate and the steps the Revenue Commissioners have taken to ensure this. [41402/16]

Joan Burton

Ceist:

313. Deputy Joan Burton asked the Minister for Finance the details of his Department's work in examining the taxation regime pertaining to the rent of properties under a company (details supplied); and if he will make a statement on the matter. [1651/17]

Michael McGrath

Ceist:

337. Deputy Michael McGrath asked the Minister for Finance the taxation treatment of income received by landlords from lettings (details supplied); the amount of declared income from this source for each of the years 2012 to 2016; and if he will make a statement on the matter. [1944/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 234, 313 and 337 together.

Income from the provision of rooms by Irish householders through online accommodation sites is subject to tax and the amount of taxable income is computed and charged to tax in the normal manner. Where the provision of guest accommodation is occasional in nature, as distinct from it arising in the course of a B&B or Guesthouse trade, the income arising would be treated as miscellaneous income (taxable under Case IV of Schedule D of the Taxes Consolidation Act 1997). I am satisfied that the regime for the taxation of such income is clear and my Department is not engaged in a specific review of this area.

Regarding the VAT treatment of payments related to the provision of short term guest or holiday accommodation, a person must register for VAT if his/her income exceeds, or is likely to exceed, €37,500 per annum and the applicable VAT rate in these cases is 9%. 

I am informed by Revenue that, under self-assessment rules, a person has an obligation to submit an annual tax return showing his or her taxable income from all sources (including rental income) and pay the tax due on that taxable income. 

PAYE taxpayers who have also received profit income from the provision of rooms through online accommodation sites, come under the self-assessment system and, therefore, have an obligation to make an annual tax return showing all of their sources of income and to pay the tax due on that income.

In certain circumstances, PAYE taxpayers (excluding certain company directors) whose combined taxable profit from their non-PAYE income is less than €5,000 per annum may elect to pay the tax due on such taxable profit through the PAYE system; this is done by way of reducing their personal tax credits.  Where the tax due on all such income has been collected through the PAYE system for a tax year, a PAYE taxpayer must complete a tax return for that tax year only when requested to so by a Revenue officer.  

I am further informed that information or statistics on the amount of income declared from individual sources is not available.

By virtue of section 888 Taxes Consolidation Act (TCA) 1997, intermediaries who receive payments from third parties on behalf of certain other persons, where those payments are made in connection with a premises, are obliged to provide an annual return to Revenue.  The legislation provides that the annual return should set out the amount of payments received, the name and address of the person to whom the premises belongs as well as the address of the premises in respect of which the payments were made. 

On account of the confidentiality provisions contained in section 851A TCA 1997, the Commissioners are precluded from providing any specific information in relation to compliance with the third party return obligations as set out in section 888 TCA 1997.  However, where the Commissioners receive annual third party returns from payment intermediaries, these returns are extensively analysed to ensure that the details provided are fully and accurately matched to specific individual taxpayers and to confirm whether the payment details provided by the third party have been fully declared by the ultimate recipient of the payment.

It is assumed that recipients of income reported by third party sources have declared the relevant details to Revenue for the years 2014 and 2015. However, where a taxpayer has not declared such income, I strongly recommend that they do so immediately as continued non-compliance can become costly due to the possible application of interest and penalties on any outstanding tax amounts.

Where a taxpayer has already filed their 2015 tax return but has not declared profit income from sources referred to by the Deputy, or similar sources, under the Code of Practice for Revenue Audit and other Compliance Interventions - http://www.revenue.ie/en/practitioner/codes-practice.html - a taxpayer may self-correct their tax return without incurring penalties, provided they correct the tax return by 31 October 2017.  It should be noted that interest on any outstanding tax amount will still be payable and will continue to accumulate until the outstanding amount is paid and therefore I strongly encourage taxpayers to make any necessary self-corrections as soon as possible.

For taxpayers who have not yet filed a tax return or have not declared relevant income Revenue, they should write to their local Revenue office, setting out details of any income received and related expenses for the years 2014 and 2015, as appropriate.

Vehicle Registration

Ceisteanna (235)

Frank O'Rourke

Ceist:

235. Deputy Frank O'Rourke asked the Minister for Finance the reason for the discrepancy between the online assessment of VRT for an imported vehicle and the actual VRT charged when the vehicle was imported (details displayed); and if he will make a statement on the matter. [41405/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the online estimate referred to does not relate to the vehicle imported in this instance and that furthermore the vehicle imported is not included in the list of vehicles for which the online calculator can be used. The VRT information available on the Revenue website draws attention to the fact that the Revenue online database may not include all vehicles and contains a clear warning that selection of details not matching the vehicle to be imported will give an incorrect calculation of VRT.

I am advised by Revenue that they valued the vehicle individually in response to its presentation for registration.

Property Tax Exemptions

Ceisteanna (236)

James Lawless

Ceist:

236. Deputy James Lawless asked the Minister for Finance if he will examine a case (details supplied) regarding a local property tax demand on a property in an unfinished estate. [41491/16]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the Local Property Tax (LPT) 'unfinished housing estate' exemption is only available to properties that are located within a housing estate (or part of an estate) that was prescribed as 'unfinished', by the Minister for the Environment, Community and Local Government in Statutory Instrument (SI) No. 91 of 2013.

Before claiming the 'unfinished housing estate' exemption it is very important that property owners ensure their relevant properties are included on the 'prescribed list' and where there are any clarifications required that they contact the appropriate Local Authority. Revenue had no input to the compilation of the 'prescribed list' and is obliged to disallow any exemption where the property is not listed.

The property owner in question did not file an LPT return or submit a claim for exemption in 2013 but subsequently filed a return in 2015 following contact from Revenue. When filing the LPT return the individual claimed the 'unfinished housing estate' exemption even though the estate in which the property is located is not included in the 'prescribed list'. On that basis the property is not entitled to the exemption and the individual is liable to pay LPT for years 2013 to 2017 inclusive.

Revenue has already advised the individual of the situation and has made them aware of the various payment options including phased payment arrangements that are available to them. If they need any further advice or assistance they should contact the LPT Helpline on 1890 200 255.

Question No. 237 answered with Question No. 232.

EU Directives

Ceisteanna (238)

Michael McGrath

Ceist:

238. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 119 of 6 December 2016, the steps that have been taken to ensure that all corporate State bodies comply; and if he will make a statement on the matter. [41525/16]

Freagraí scríofa

Minister for Finance

As indicated in my response to PQ 119 in December, some State bodies may need to have regard to the definition of 'beneficial ownership' set out in article 3(6) of 4AMLD (2015/849). However, because the legal ownership, governance and control of State Bodies is set out in considerable detail in legislation, this should not prove too difficult to establish particularly since for most bodies that are Government-owned and Government-controlled, their legal and beneficial ownership will be identical.

The Deputy should note that officials from my Department are currently consulting with the Department of Public Expenditure and Reform to examine how the requirements of the Directive can be addressed by State owned entities.

Economic Data

Ceisteanna (239)

Bernard Durkan

Ceist:

239. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that all previous economic and budgetary projections remain on target; and if he will make a statement on the matter. [41550/16]

Freagraí scríofa

Minister for Finance

The most recent economic forecast, published by my Department as part of Budget 2017, projected real GDP growth of 4.2 per cent in 2016 and 3.5 per cent in 2017.

The third quarter national accounts, published by the CSO in early-December, show that GDP grew by 6.9 per cent year-on-year, bringing the average increase in the first three quarters of 2016 to 4.7 per cent.

On the basis of this data and other indicators since the Budget, the GDP forecast remains on track.       

The most recent fiscal forecast, published by my Department as part of Budget 2017, projected a general government deficit of 0.9 per cent of GDP for 2016, improving to 0.4 per cent of GDP in 2017.

The end 2016 Exchequer returns were published earlier this month, showing an Exchequer deficit of just over €1 billion. This was over €0.6 billion better than forecast in Budget 2016 and over €0.4 billion better than forecast in Budget 2017.

Looking at individual parts of the Exchequer, tax revenue finished the year 1.4 per cent above the Budget 2016 forecast and showed strong year-on-year growth of 5.0 per cent. While tax revenue of €47,864 million for the year was €164 million below the Budget 2017 forecast, this shortfall was more than offset by both gross voted expenditure and elements of non-voted expenditure finishing the year below the Budget 2017 forecast levels.

However, in terms of the general government deficit targets, while there are still much data to be collected and analysed before an estimate for 2016 can be provided by the Central Statistics Office, the end-year Exchequer data would indicate that the public finances remain on course to record a deficit of 0.9 per cent of GDP for 2016.

An update to both economic and fiscal forecasts will be published by my Department, as part of the Stability and Programme Update, in April this year.

Inflation Rate

Ceisteanna (240)

Bernard Durkan

Ceist:

240. Deputy Bernard J. Durkan asked the Minister for Finance if any inflationary tendencies have been identified in the economy; and if he will make a statement on the matter. [41551/16]

Freagraí scríofa

Minister for Finance

Over the past few years consumer price inflation has been near zero in Ireland and in the euro area more generally. In 2016 annual inflation in Ireland, as measured by the Harmonised Index of Consumer Prices (HICP), averaged -0.2 per cent over the year to November and is expected to be slightly negative on average for the year as a whole. 

However, in Ireland and in the euro area, there are emerging signs that inflation is starting to pick-up gradually as the drag on consumer prices from low oil prices has eased.  However, the recent euro-sterling appreciation is exerting downward pressure on consumer prices domestically as the UK accounts for a large proportion of imported consumer goods.  

Looking forward, futures markets for oil are suggesting a further gradual recovery in oil prices over the course of 2017. In addition, the continued growth in domestic demand and the ongoing recovery in the labour market are expected to lead to further services price inflation. Taking all these factors into account, price pressures will likely rise gradually but remain subdued into 2017. In Budget 2017, published in October 2016, my Department forecast HICP annual inflation of 1.3 per cent for 2017. My Department will update its inflation forecasts with the publication of the Stability Programme Update in April of this year.