Tuesday, 17 Jan 2017

Written Answers Nos. 261-279

Departmental Legal Costs

Ceisteanna (261)

David Cullinane

Ceist:

261. Deputy David Cullinane asked the Minister for Finance the total cost of the State's involvement in an appeal (details supplied), in view of the fact that the European Court of Justice found that the Federal Republic of Germany, the Republic of Ireland and the Kingdom of Spain must bear their own costs; the legal firms used by the State for the appeal; his views on whether this money was well spent; and if he will make a statement on the matter. [1100/17]

Freagraí scríofa

Minister for Finance

The State's intervention in case C-21/15P Commission v Banco Santander and Santusa was lodged in January 2016, following the Government Decision to approve the intervention on 30 April 2015. The Government decided to intervene in these cases because they relate to State Aid and Corporation Tax.

All Member States have legal standing to intervene in cases that go before the European courts and do so from time to time if it is considered that the case raises points of relevance and in order to influence the jurisprudence. This case was considered to be important for Ireland as it relates to the interpretation of selectivity and state aid, with a particular regard to tax measures.

The total costs paid for by the State, in relation to this case, amount to approximately €31,500.

The legal costs in this case have been met from existing resources in the Attorney General's Office. There were additional costs including translation services, travel and other associated costs, incurred by officials of the Department of Finance, Attorney General's Office and the Chief State Solicitors Office.

There has been no engagement with private law firms or private financial firms in this case. The legal case has been undertaken by the Attorney General's Office who have engaged legal counsel as appropriate.

Corporation Tax Regime

Ceisteanna (262, 263, 264, 265, 308)

David Cullinane

Ceist:

262. Deputy David Cullinane asked the Minister for Finance if all companies subject to tax here, whether resident or non-resident, are in a comparable factual and legal situation as regards the ordinary rules of taxation of corporate profit; and if he will make a statement on the matter. [1101/17]

David Cullinane

Ceist:

263. Deputy David Cullinane asked the Minister for Finance if the corporate tax system does not distinguish between companies which derive their profit from market transactions only, such as non-integrated stand-alone companies, and companies that derive their profits through internal dealings between companies of the same corporate group or between parts of the same company, such as integrated companies; and if he will make a statement on the matter. [1102/17]

David Cullinane

Ceist:

264. Deputy David Cullinane asked the Minister for Finance if companies which derive their profit from market transactions only, such as non-integrated stand-alone companies, and companies that derive their profits through internal dealings between companies of the same corporate group or between parts of the same company, such as integrated companies, are subject to corporation tax on their taxable profit at the standard corporate tax rate under the ordinary rules of taxation of corporate profit here; and if he will make a statement on the matter. [1103/17]

David Cullinane

Ceist:

265. Deputy David Cullinane asked the Minister for Finance if the territoriality principle obviates the need for the Revenue Commissioners to determine the allocation of assets used, functions performed and risks assumed by a non-resident company through its branch and through the other parts of the company, including intellectual property held by the company as a whole, for the purposes of determining the amount of such source income in line with the arm’s length principle; and if he will make a statement on the matter. [1104/17]

Joan Burton

Ceist:

308. Deputy Joan Burton asked the Minister for Finance when he expects the European Commission to make a final report on the tax affairs of a company (details supplied) here; and if he will make a statement on the matter. [1683/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 262 to 265, inclusive, and 308 together.

The Questions involve legal interpretation of matters which are currently before the European Courts.

The European Commission published the Final Decision into the Apple State Aid case in December 2016. This was sent to Ireland at the end of August 2016.

As I have reiterated previously, Ireland does not accept the Commission's analysis, which is why we have lodged an application with the General Court of the European Union to annul the whole Decision.

Ireland did not give favourable tax treatment to Apple - the full amount of tax was paid in this case and no State aid was provided. Ireland does not do deals with taxpayers.

As this topic is the subject of open legal proceedings, it will not be possible to comment further on the details of the Decision. This is important to ensure that we do not prejudice our legal case which is before the European Courts.

I have published a summary of our legal arguments which will be heard there, at the following link:

http://www.finance.gov.ie/news-centre/press-releases/ireland-publishes-legal-arguments-apple-state-aid-case.

Tax Credits

Ceisteanna (266)

Michael McGrath

Ceist:

266. Deputy Michael McGrath asked the Minister for Finance the number of persons claiming the home carer tax credit and the cost to the Exchequer in each of the years 2013 to 2016; if he will provide an estimate of the number of persons that may be entitled to the credit but are not claiming it; the circumstances in which the Revenue Commissioners provide the credit automatically; if the Revenue Commissioners have plans to increase awareness of the credit; and if he will make a statement on the matter. [1113/17]

Freagraí scríofa

Minister for Finance

The maximum amount of the Home Carer's Tax Credit for the 2017 tax year is €1,100 having been increased in Budget 2017 from €1,000, following an increase the previous year in Budget 2016 from €810.

Revenue take a range measures to assist eligible taxpayers in obtaining the credit. In the case of PAYE taxpayers, Revenue has, for a number of years, taken steps to automatically allow the credit without the person having to make a claim, wherever possible. For example, Revenue uses data it receives from the Department of Social Protection in relation to child benefit, together with other data from Revenue's own records, to automatically grant the credit each year. In 2015, I am advised that Revenue gave the relief automatically to approximately 81,000 taxpayers on this basis. Revenue also pre-populates the annual tax returns of self-assessed taxpayers with the Home Carer Tax Credit where it was claimed in the previous year.

Where the credit has not been granted automatically, a claim for the Home Carer Credit may be made by the individual either by claiming it on-line via the Revenue website, by completing a claim form or in the person's annual tax return. Revenue information leaflet IT 66 provides full details of the credit http://www.revenue.ie/en/tax/it/leaflets/it66.html.

The most recent year for which figures are available is 2014, in which year the maximum value of home carer tax credit available was €810, and the overall cost to the Exchequer was an estimated €60.9 million, in respect of 80,900 recipients. The numbers provided represent income earners who were in a position to absorb at least some of the home carer tax credit and thereby give rise to an Exchequer cost. They do not include the number of potential claimants whose entitlement to other tax credits was sufficient to reduce their tax liability to nil without reference to the home carer tax credit. The figures are rounded and adjusted to take account of late filers. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.

I am advised by Revenue that it has no information in relation to numbers of cases who have not applied for the credit. However, a wide range of statistical information is available on the Revenue Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.

Motor Insurance Regulation

Ceisteanna (267, 268)

Donnchadh Ó Laoghaire

Ceist:

267. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance his plans to introduce a regulation obliging car insurance companies to accept no claims bonuses, or other evidence of safe driving records, of returned emigrants when they are being provided with quotes for car insurance. [1160/17]

Donnchadh Ó Laoghaire

Ceist:

268. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance the steps he will take to ensure that car insurance companies do not discriminate against returning emigrants when offering quotes, particularly, but not limited to, tackling the unfair practice of treating returned drivers with safe driving records while abroad as new drivers. [1161/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 267 and 268 together.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.

However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on 10 January 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.

The Working Group determined it was not possible to legislate to require insurers to provide quotations that take into account previous driver history in other jurisdictions because this is a commercial decision for the respective companies.

However, Recommendation 6 of the Report aims to address the problems faced by returning emigrants through the introduction of a standard protocol for insurance providers, to ensure a greater consistency of treatment for returning emigrants. The action points pursuant to this Recommendation include Insurance Ireland being tasked with developing a standard information protocol for insurers to include information about a company's policy as regards acceptance of previous driver history in other jurisdictions, the validation process for such history, to provide clarity on the relevant documentation needed, and the need to make it clear about the necessity to call the insurance company rather than get an online quotation. This protocol is required to be in place by the end of 2017.

Further, by Q2 2017, insurers are being asked to implement procedures to enable the acceptance of driver experience from abroad when a person has previous driving experience in Ireland and is coming from a country that drives on the left side of road and to take full account of the experience in that country and previous experience in Ireland when pricing a policy. By Q4 2017, insurers are being asked to implement a similar procedure in relation to experience gained in a country that drives on the right hand side of the road. Insurance Ireland will submit a report to the Department of Finance on the implementation of these procedures in Q2 and Q4 2017.

Retail Sector

Ceisteanna (269)

Clare Daly

Ceist:

269. Deputy Clare Daly asked the Minister for Finance the options that exist for consumers who request exact change from retailers in a circumstance whereby the retailer has applied rounding and the retailer fails to return it on the basis that he or she has no 1 cent or 2 cent coins; and if a system to subsequently redeem the exact change value in such a situation currently exists. [1163/17]

Freagraí scríofa

Minister for Finance

Rounding of cash transactions was rolled out nationally by the Central Bank from 28 October 2015. One year on from the introduction, an independent opinion poll commissioned by the Central Bank found that 93% of people considered that rounding was a good idea or made no difference.

Participation in rounding is entirely voluntary for both retailers and consumers and 1c and 2c coins retain their legal tender status. Rounding applies to the change on the total bill, which is rounded up or down to the nearest 5c, and not to individual prices. Rounding applies to cash payments only and does not impact debit and credit card transactions.

As rounding is voluntary, no system for retrospective redemption of the exact change value is necessary since any consumer who wishes to opt out of rounding has the right to request to receive exact change in the store.

If a retailer is applying rounding incorrectly by not providing consumers with the correct change upon request, then that should be referred to the Central Bank at the email address [e-mail] or by post to The Rounding Project Team, Payment and Securities Settlements Division, Central Bank of Ireland, PO Box 11517, Spencer Dock, North Wall Quay, Dublin 1. The Central Bank will advise retailers, who wish to apply Rounding, on the principles of the process.

Tax Yield

Ceisteanna (270, 271)

Catherine Murphy

Ceist:

270. Deputy Catherine Murphy asked the Minister for Finance the amount collected by the Revenue Commissioners in respect of stamp duty on debit cards and-or ATM cards for the past five years, broken down by year and amount collected per year, in tabular form; and if he will make a statement on the matter. [1176/17]

Catherine Murphy

Ceist:

271. Deputy Catherine Murphy asked the Minister for Finance the amount collected by the Revenue Commissioners in respect of stamp duty on credit cards and charge cards for the past five years, broken down by year and amount collected per year, in tabular form; and if he will make a statement on the matter. [1177/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 270 and 271 together.

I am informed by the Revenue Commissioners that the yield from Stamp Duty on debit cards, ATM cards, combined ATM/debit cards, credit cards and charge cards for the years in question is as shown in following table.

Year	Debit Cards/ATM Cards/Combined Cards	Credit Cards and Charge Cards*
	€m	€m
2012	16.54	51.64
2013	18.32	49.62
2014	18.76	45.85
2015	18.13	46.68
2016**	23.13	46.6

* "Combined Cards" include ATM and debit cards; no further breakdown available between credit and charge cards. **Provisional and subject to revision

The Stamp Duty levy on debit cards and ATM cards is under Section 123B of the Stamp Duties Consolidation Act 1999. The levy is payable by the financial institution, but the legislation provides that it may be passed on to the cardholder. Stamp Duty levy on credit cards and charge cards is under Section 124 of the Stamp Duties Consolidation Act 1999. The levy is payable by the financial institution, but the legislation provides that it may be passed on to the cardholder.

Questions Nos. 272 to 274, inclusive, answered with Question No. 75.

Motor Insurance Regulation

Ceisteanna (275)

Michael McGrath

Ceist:

275. Deputy Michael McGrath asked the Minister for Finance if his Department has reached agreement with the insurance industry and is proceeding to implement the recommendations of the Report of the Review of the Framework for Motor Insurance Compensation in Ireland published by his Department on 22 July 2016; and if he will make a statement on the matter. [1213/17]

Freagraí scríofa

Minister for Finance

The Report of the Review of the Framework for Motor Insurance Compensation in Ireland was published on 22 July. As you are aware, this review was carried out jointly by the Department of Finance and the Department of Transport, Tourism and Sport and the report was approved by Government on 19 July. Since the publication of the report, work has commenced on the implementation of a number of its recommendations, including amendments to the Insurance Acts. The necessary consultations with various stakeholders, including industry are ongoing. It is expected that a legislative proposal will be brought to Government for approval in the coming months.

Some of the key recommendations contained in the report are:

- That coverage of the Insurance Compensation Fund will be extended to include third party motor insurance claims in the event of a liquidation of an insurer. The level of cover from the Insurance Compensation Fund for third party motor insurance claims will be increased from 65% to 100% in line with that currently provided by the Motor Insurers' Bureau of Ireland.

- The increased coverage of the Insurance Compensation Fund will be funded by a direct contribution to the Insurance Compensation Fund from the motor insurance industry. While the Review indicated that this would come via the Motor Insurers' Bureau of Ireland, to the value of 35% of the third party motor insurance claims, further discussions are ongoing with industry about options for alternative funding arrangements which would provide greater predictability about their financial exposure.

This report when implemented will provide greater certainty in relation to the operation of the insurance compensation framework and it should ensure speedier payments and a simplification of the claims procedure.

Departmental Staff Data

Ceisteanna (276)

David Cullinane

Ceist:

276. Deputy David Cullinane asked the Minister for Finance the number of full-time equivalent Civil Service workers in gross income ranges (details supplied) in his Department for each of the years 2007 to 2015. [1225/17]

Freagraí scríofa

Minister for Finance

I wish to inform the Deputy that the headcount of civil servants in my Department for each of the years 2007 to 2015, in the gross income ranges requested are detailed in the following table. These figures include any staff member employed during the period 2007 to 2015. The full time equivalent values of these staff are reflected in the gross pay figures. The establishment of the Department of Public Expenditure and Reform in 2011 resulted in a reduction in the staff numbers in my Department since then.

Income Ranges	2007	2008	2009	2010	2011	2012	2013	2014	2015
€0 to €30,000	292	272	188	191	321	178	93	106	116
€30,000 to €40,000	104	106	121	130	128	60	103	91	96
€40,000 to €50,000	122	126	103	93	100	45	49	43	39
€50,000 to €60,000	85	86	79	82	47	29	29	33	37
€60,000 to €70,000	36	32	43	26	17	18	21	16	13
€70,000 to €80,000	49	46	26	38	16	15	20	28	24
€80,000 to €90,000	82	79	83	82	40	32	28	18	20
€90,000 to €100,000	19	35	43	21	11	4	11	7	8
€100,000 to €125,000	46	44	49	30	8	13	9	10	11
€125,000 to €150,000	9	8	10	9	5	5	4	3	4
Over €150,000	8	12	9	6	3	3	3	3	2
Grand Total	852	846	754	708	696	402	370	358	370

Help-To-Buy Scheme Eligibility

Ceisteanna (277)

Clare Daly

Ceist:

277. Deputy Clare Daly asked the Minister for Finance if he will designate properties remediated under the pyrite remediation scheme as new builds for the purposes of the help-to-buy scheme, in recognition of the fact that in essence they have been rebuilt and in view of the fact that these properties could not be sold prior to the works. [1236/17]

Freagraí scríofa

Minister for Finance

The Pyrite Remediation Scheme is primarily a matter for the Minister for Housing, Planning and Local Government. The Deputy will be aware that the scheme has been set up to remediate dwellings that have been significantly damaged as a result of pyritic heave caused by the swelling of hardcore under ground floor slabs. The Scheme has been prepared by the Pyrite Resolution Board (PRB) under the Pyrite Resolution Act 2013. The intent behind the Deputy's question is unclear, as presumably the affected homes are already principle private residences for their owners.

The Help to Buy incentive is not aimed at the rebuilding or restoration of existing dwellings, but instead is restricted to the purchase of new dwellings and new self-builds. By restricting the incentive in this way, it is anticipated that the resulting increase in demand for affordable new-build homes should encourage the construction of an additional supply of such properties. The initiative specifically excludes properties that have previously been occupied as a dwelling.

A property previously occupied and subject to remedial works under the Pyrite Remediation scheme would not be considered as a new build under the scheme. If this were to be permitted, then an argument could also be made for other dwellings which have been restored or rebuilt to also qualify. This would open the scheme up to second hand properties, and would undermine one of the key reasons, i.e. to increase the supply of new housing, for the Help to Buy initiative.

Proposed Legislation

Ceisteanna (278)

Pearse Doherty

Ceist:

278. Deputy Pearse Doherty asked the Minister for Finance his plans to publish a Finance Bill before budget 2018; and if he will make a statement on the matter. [1293/17]

Freagraí scríofa

Minister for Finance

As the Deputy has noted there will of course be the usual Finance Bill later in the year as part of the Budget 2018 process. It is my intention, in the near future, to consider whether there is merit in the development of an additional Finance Bill during 2017.

Tax Code

Ceisteanna (279)

Pearse Doherty

Ceist:

279. Deputy Pearse Doherty asked the Minister for Finance his plans to legislate to impose penalties for enablers of offshore tax evasion or non-compliance as happened recently in Britain (details supplied); his views on the suitability of that legislation to Irish law; and if he will make a statement on the matter. [1294/17]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that subsection (1A) of section 1078 of the Taxes Consolidation Act 1997 makes it a criminal offence for a person to be knowingly concerned in the fraudulent evasion of tax by another person, to be reckless as to whether or not the person is concerned in facilitating such evasion, or to be knowingly concerned or reckless about a person committing a specific Revenue offence of a kind specified in subsection (2) of section 1078. This criminal sanction applies regardless of whether the evasion is onshore or offshore in nature.

"Facilitating" is defined in subsection (1A) as "aiding, abetting, assisting, inciting or inducing".

A person convicted of such an offence is liable on summary conviction to a fine not exceeding €5,000 or, at the discretion of the court, to a term of imprisonment of up to 12 months, or both and on conviction on indictment, to a fine of up to €126,970 or to a term of imprisonment of up to 5 years, or both.

There already exists, therefore, a robust suite of measures in section 1078 of the Taxes Consolidation Act providing for criminal prosecution of tax evaders generally, including those involved in offshore evasion, and those who facilitate such evasion.

The Deputy will be aware of the changes I made in section 56 of Finance Act 2016 relating to the withdrawal from 1 May this year of the penalty mitigation arrangements currently available to tax defaulters who make a qualifying disclosure to Revenue, where the default involves offshore evasion. These changes, coupled with the coming on stream of international exchange of information arrangements will ensure that tax defaulters who have used offshore accounts or assets in their evasion and, indeed those who have facilitated such evasion, will find themselves in a very difficult position in their dealings with Revenue after that date.

In that regard, I am advised by the Commissioners that Revenue is fully committed to targeting for criminal prosecution evaders who use offshore evasion and those who facilitate or assist such behaviour.