Written Answers Nos. 242-255
242. Deputy Catherine Murphy asked the Minister for Finance to outline his views on whether evidence (details supplied) confirms that in 2008 Irish banks lost control over collateral it advanced to the ECB through target 2 and emergency lending assistance on the grounds that the ECB’s event of default condition was breached; and if he will make a statement on the matter. [10355/17]
Amharc ar fhreagraI am informed by the Central Bank that no event of default occurred concerning Irish banks in 2008 in respect of the agreements governing their borrowing from the Bank.
245. Deputy Michael McGrath asked the Minister for Finance whether stamp duty is payable on the documentation concerning the transfer or purchase of loans from one entity to another; if it is standard practice not to pay stamp duty on the documentation of such transfers; and if he will make a statement on the matter. [10371/17]
Amharc ar fhreagra246. Deputy Michael McGrath asked the Minister for Finance whether he or the Revenue Commissioners have made an assessment of whether stamp duty is payable on the documentation concerning the transfer or purchase of loans from one entity to another; the conclusions of such assessments; and if he will make a statement on the matter. [10372/17]
Amharc ar fhreagra247. Deputy Michael McGrath asked the Minister for Finance if any proceedings have been successfully taken by the Revenue Commissioners against entities for failure to pay stamp duty on the documentation concerning the transfer of loans from one entity to another; the number of such cases; the fines involved; the stamp duty unpaid; and if he will make a statement on the matter. [10373/17]
Amharc ar fhreagra248. Deputy Michael McGrath asked the Minister for Finance if capital gains tax is payable on the gains earned on the sale of loans from one entity to another; if it is standard practice not to pay capital gains tax on such gains; and if he will make a statement on the matter. [10374/17]
Amharc ar fhreagra249. Deputy Michael McGrath asked the Minister for Finance if he or the Revenue Commissioners have made an assessment of whether capital gains tax is payable on the gains earned from the sale of loans from one entity to another; if so, the conclusions of such assessments; and if he will make a statement on the matter. [10375/17]
Amharc ar fhreagra250. Deputy Michael McGrath asked the Minister for Finance whether any proceedings have been successfully taken by the Revenue Commissioners against entities for failure to pay capital gains tax on the profit earned on the sale of loans from one entity to another; the number of such cases; the fines involved; the amount of tax unpaid; and if he will make a statement on the matter. [10376/17]
Amharc ar fhreagraI propose to take Questions Nos. 245 to 250, inclusive, together.
I am advised by Revenue that, in principle, stamp duty is payable on the documentation concerning the purchase of loans where the standard stamp duty criteria are met, i.e. essentially where:
- the document effecting the transfer is executed in the State (of Ireland);
- the debt is deemed to comprise property (whether real or intangible) situated in the State; or
- the transfer relates to any matter or thing to be done in the State.
However, in practice stamp duty is not generally payable on such documentation as the Stamp Duties Consolidation Act (SDCA) 1999 provides for a range of exemptions from the charge.
Prior to 7 December 2006, stamp duty was chargeable on documents securing loans on property situated in the State and any subsequent transfer of such secured loans. Section 100 of Finance Act 2007 terminated this charge for such 'mortgage' documents executed after this date.
Section 85 of the SDCA 1999 provides for an exemption from stamp duty on:
- the issue of loan capital or any Government loan;
- the transfer of companies' loan capital;
- the issue or transfer of securities issued by a qualifying company within the meaning of section 110 of the Taxes Consolidation Act 1997;
- the issue, transfer or redemption of loan capital issued by a company to raise finance to acquire, develop or lease aircraft.
Section 86 of the SDCA 1999 provides for an exemption on the transfer of loan stock issued by certain State bodies.
Section 90 of the SDCA 1999, in dealing with debt factoring arrangements, provides for an exemption on the transfer of a debt, or part of a debt, where such transfer occurs in the ordinary course of the business of the vendor or the purchaser.
Relief from stamp duty is also provided in relation to transfers of property (whether real or intangible) between associated companies (section 79 SDCA 1999) or in relation to the merger of companies where such transfers are effected for bona fide commercial reasons (section 80 SDCA 1999). Depending on the particular circumstances and the type of company involved, it could happen that some part of the property transferred could relate to loans.
As stamp duty is not generally payable on documentation transferring a loan, the question of "taking proceedings" on this issue does not arise.
I am further advised by Revenue that normally any profit earned from the sale of loans from one entity to another is chargeable to corporation tax as a trading receipt. This is the position as regards the financial services sector in particular. Therefore, in general, the sale of a loan does not constitute a disposal of an asset for capital gains tax (CGT) purposes. The exception to this general rule is where a loan is a debt on a security (section 541(1) Taxes Consolidation Act 1997). In this context, a security includes any loan stock or similar security of any government or of any public authority or of any company, but does not include Irish Government securities.
In the context of the financial services sector the issue of CGT does not arise. Accordingly as CGT is not payable on gains earned from the sale of loans from one entity to another the question of "taking proceedings" on the issue does not arise.
251. Deputy Michael McGrath asked the Minister for Finance to set out the number of claims made under the knowledge development box in 2016; the total cost of the tax expenditure associated with the knowledge development box in 2016; the projected cost in 2017; and if he will make a statement on the matter. [10377/17]
Amharc ar fhreagraI am advised by Revenue that relief in respect of the Knowledge Development Box will be claimed for the first time on the 2016 Corporation Tax returns. As the bulk of these returns will be filed later this year, the information requested by the Deputy cannot be provided until early 2018 when these returns have been filed and analysed.
252. Deputy Michael McGrath asked the Minister for Finance to set out the number of audits of research and development tax credit claims carried out in each year from 2012 to 2016; the number of audits which resulted in a reclaim of credits; and if he will make a statement on the matter. [10378/17]
Amharc ar fhreagraI am advised by Revenue that the number of compliance interventions (including audits) carried out in relation to Research and Development tax credit claims in each of the years 2012 to 2016, and the number which resulted in a reclaim of credits, is as follows:
|
Year |
Number of Interventions |
Total yield €'000 |
Number Resulting in a Reclaim |
|
2012 |
49 |
€5,413 |
25 |
|
2013 |
105 |
€14,483 |
46 |
|
2014 |
162 |
€10,106 |
75 |
|
2015 |
178 |
€13,542 |
81 |
|
2016 |
276 |
€13,714 |
100 |
|
Total |
770 |
€57,258 |
327 |
Revenue continues to monitor repayment claims in what is a highly complex and technical area and in appropriate instances, undertakes a compliance intervention such as an Aspect Query, Profile Interview or Audit.
The Comptroller & Auditor General provided a detailed overview of the administration of Research and Development tax credit by the Revenue Commissioners in his Annual Report on the Accounts of the Public Service for 2015. This is available at the following link: http://www.audgen.gov.ie/viewdoc.asp?fn=/documents/annualreports/2015/Report/En/Chapter14.pdf.
253. Deputy Michael McGrath asked the Minister for Finance to set out the gross eligible company expenditure for which research and development tax credits were claimed in each year from 2012 to 2016; and if he will make a statement on the matter. [10379/17]
Amharc ar fhreagraIt is assumed that the Question is referring to the expenditure associated with claims for research and development (R&D) tax credits in each year.
I am informed by Revenue that, while the gross R&D expenditure is not directly recorded on Corporation Tax records, based on extrapolating from information included in returns and using the tax credit rate of 25 per cent, the estimated amount of eligible R&D expenditure for the years 2012 to 2015 is as shown in the following table. It should be noted that the amount shown for 2015 is provisional and is likely to increase. It should be further noted that these amounts include expenditure on buildings or structures used for research and development which also qualifies for tax credits as it is not possible to exclude such expenditure from the overall amounts.
|
Tax Year |
Estimated Eligible Research and Development Expenditure €m |
|
2012 |
2,448 |
|
2013 |
3,646 |
|
2014 |
4,581 |
|
2015 (prov.) |
4,234 |
I am also informed by Revenue that information in respect of the Exchequer costs of the R&D tax credit for the years 2012 to 2014 is available on the Revenue Statistics webpage at: http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
The tax cost for 2015 has not yet been finalised but provisional data indicate the cost will be in excess of €640 m. These costs include those associated with the refundable element of the tax credit from earlier tax years.
The following revised reply was received on 16 November 2017
It is assumed that the Question is referring to the expenditure associated with claims for research and development (R&D) tax credits in each year.
I am informed by Revenue that, while the gross R&D expenditure is not directly recorded on Corporation Tax records, based on extrapolating from information included in returns and using the tax credit rate of 25 per cent, the estimated amount of eligible R&D expenditure for the years 2012 to 2015 is as shown in the following table. It should be noted that the amounts shown below do not include any element of claim associated with expenditure in earlier years but brought forward into the tax years below. It should be further noted that these amounts include expenditure on buildings or structures used for research and development which also qualifies for tax credits as it is not possible to exclude such expenditure from the overall amounts.
|
Tax Year |
Estimated Eligible Research and Development Expenditure €m |
|
2012 |
1,300 |
|
2013 |
2,237 |
|
2014 |
2,591 |
|
2015 |
2,394 |
I am also informed by Revenue that information in respect of the Exchequer costs of the R& D tax credit for the years 2012 to 2015 is available on the Revenue Statistics webpage at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx
254. Deputy Michael McGrath asked the Minister for Finance to set down the number of banks and financial institutions that paid the bank levy in 2015 and 2016; the number of such institutions that are domestically owned; the number which are non-Irish headquarters; and if he will make a statement on the matter. [10380/17]
Amharc ar fhreagraSection 126AA of the Stamp Duties Consolidation Act 1999 applies to holders of banking licences and building societies in 2011 that collected and paid over more than €100,000 in Deposit Interest Retention Tax (DIRT) in that year. The section provides for a bank levy, equal to 35% of the amount of DIRT paid in 2011. The bank levy applies for a three year period covering the years 2014 to 2016.
I am informed by the Office of the Revenue Commissioners that a total of ten financial institutions are registered to pay the bank levy. Four of the ten are domestically owned. The ultimate parent company of the remaining six institutions is outside of the State.
255. Deputy Michael McGrath asked the Minister for Finance to set out the number of claims under section 481 film tax relief in 2015 and 2016; the number of films which received finance under the relief in each year; the number of jobs supported; and if he will make a statement on the matter. [10381/17]
Amharc ar fhreagraI am advised by Revenue that statistical information relating to the beneficiaries of film relief under the current scheme can be found on their website at the following links:
2015 beneficiaries: http://www.revenue.ie/en/about/publications/beneficiaries-tax-relief.html
2016 beneficiaries: http://www.revenue.ie/en/about/publications/beneficiaries-tax-relief-2016.html
Film projects do not begin and end to coincide with calendar years meaning it is difficult to provide definitive figures for the number of jobs that the relief supported for any particular calendar year.
However, it is possible to examine the applications for relief received during the calendar years 2015 and 2016, and the following is based on an analysis of those applications:
|
Year |
No. of Projects |
No. of Corporation Tax Beneficiaries |
Jobs |
|
2015 |
73 |
43 |
1,257* |
|
2016 |
120 |
74 |
** |
* Budgeted full time equivalent jobs directly related to the production of the film
** This information is not yet available.
