Written Answers Nos. 46-65
46. Deputy Pearse Doherty asked the Minister for Finance his plans for operations along the Border by the Revenue Commissioners, including the customs division, as a result of Brexit; and if he will make a statement on the matter. [16431/17]
Amharc ar fhreagraThe Government's headline priorities in response to Brexit are well known minimising the impact on trade and the economy; protecting the Northern Ireland Peace Process; maintaining the Common Travel Area; and influencing the future of the European Union. It is quite clear that there are major challenges ahead, for the EU, the UK and for Ireland.
The position in relation to the border with Northern Ireland in the context of Brexit is very clear and has been articulated by the Taoiseach on several occasions and again by Government on the triggering of Article 50. Continued freedom of movement, absence of a hard border, and minimal impact on business and trade are key objectives. The Government is clear that any manifestation of a hard border would have very negative consequences. A key priority is to ensure the continued free flow of trade on the island and the need to avoid a hard border. Clearly in this regard the closer the trading relationship between the UK and EU is more generally the better.
My Department has been preparing for the impact of Brexit since well before the referendum on 23 June 2016, with this work now intensified. The primary areas for the Department of Finance relate to the economic and financial sector implications stemming from Brexit. This work is being undertaken within the whole-of-Government framework established by the Department of the Taoiseach. A consolidated paper providing more detail about Ireland's priorities and approach to the negotiations ahead is due to be published in advance of the European Council meeting on 29 April.
The precise arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK that will now take place following formal notification under Article 50 on Wednesday last, 29 March.
47. Deputy Thomas Pringle asked the Minister for Finance the contingency plans in place to counteract the negative effects on rural communities brought on by the latest closures of banks (details supplied) in County Donegal and across the country; and if he will make a statement on the matter. [16246/17]
Amharc ar fhreagra48. Deputy Paul Murphy asked the Minister for Finance his views on the industrial relations situation in a bank (details supplied), with particular reference to the negotiations with porters and the plan to close branches; and if he will make a statement on the matter. [16448/17]
Amharc ar fhreagra58. Deputy Ruth Coppinger asked the Minister for Finance if he will report on discussions he has had with a bank (details supplied) recently. [16417/17]
Amharc ar fhreagra84. Deputy Niamh Smyth asked the Minister for Finance if he will address the concerns of those affected by the closures of branches of a bank (details supplied) in Arva, Cootehill and Carrickmacross; and if he will make a statement on the matter. [16453/17]
Amharc ar fhreagra229. Deputy Willie Penrose asked the Minister for Finance his views on the proposed closures of bank branches announced by a bank (details supplied); his plans to put in place alternative provision of financial services to rural areas which have been deprived of their bank branches and post offices; and if he will make a statement on the matter. [16762/17]
Amharc ar fhreagraI propose to take Questions Nos. 47, 48, 58, 84 and 229 together.
I should say at the outset that I note with regret that Ulster Bank is closing a significant number of branches with considerable negative impacts on both staff and customers alike.
Officials from the bank in question briefed officials in my Department during the week of the announcement. The information was provided under embargo in order to allow management in the bank inform staff and staff representatives of the proposals in advance of a public announcement. I should stress that the bank officials were providing information about decisions already taken and this was not a consultation in advance of decisions being taken.
I fully appreciate that the decision taken by the bank will be keenly felt in the locations concerned, both by staff and customers. It is my understanding that the bank has been consulting with staff representatives and hopes that the necessary staff reductions can be achieved on a voluntary basis by agreement. I would urge both sides to work together to achieve agreement and to utilise the resources of the State industrial relations apparatus to do this if necessary.
I should stress that the Irish Government has no formal role in the commercial decisions of Ulster Bank, these are a matter for the Board and Management of the Bank and its parent company, RBS.
The closures are a response to changing ways of banking due to less use of cash, increased use of technology and corresponding reduced visits to branches. That said, I expect that Ulster Bank will do everything that it can to mitigate the impacts of these branch closures on local communities, including technology and the use of alternative means of service delivery. I also expect that the bank will ensure that customers are kept informed about developments and provided with the appropriate assistance to move branches, switch to other banks and avail of alternative means of accessing financial services. The Central Bank will also have a role in ensuring that consumer protection rules are followed. The continued presence of a viable and active Ulster Bank in the Irish market will be important in fostering competition for banking services. It is vital that businesses and consumers have a range of banking options available when using financial services and accessing credit and that they continually assess their options to ensure that they are getting the best value and service possible.
49. Deputy Maureen O'Sullivan asked the Minister for Finance the policy objectives that are achieved by rendering the carer's allowance, which is already subject to a means test by the Department of Social Protection, subject to taxation; if other social assistance payments are treated similarly; and if he will make a statement on the matter. [16406/17]
Amharc ar fhreagraCarer's Allowance is a means-tested payment for carers who look after individuals in need of care and attention on a full-time basis. The Carer's Allowance, in common with many other social welfare payments, is regarded as a taxable source of income. The level of tax payable, if any, on such income is then determined by the personal circumstances of the recipient, taking into account factors such as the individual's other sources of income and the available tax credits and standard-rate bands.
The means test for the Carer's Allowance involves assessing an individual's means based on income and assets other than their home. I am informed by the Department of Social Protection that the means test for carers allowance has been significantly eased over the years and is now one of the most generous means tests in the social welfare system, most notably with regard to the earnings of the carer's spouse. The income disregard is €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €35,400 and still qualify for the maximum rate of carer's allowance as well as the associated free travel and household benefits package.
As Deputies will be aware the Irish income tax system is highly progressive with those on lower incomes paying proportionately less tax than those on higher incomes. Therefore the reality is that an individual who is in receipt of a means-tested payment will in many cases not have an income tax liability as the available tax credits will reduce any tax liability to nil. A person in receipt of taxable social welfare income may claim the PAYE tax credit of €1,650 per annum, in addition to his or her personal tax credit of €1,650 per annum. These standard tax credits can shelter income of €16,500 from tax at the standard rate each year.
A jointly assessed individual who works primarily in the home to care for an incapacitated person may also qualify for the Home Carer tax credit of €1,100 per annum. When added to the personal and PAYE tax credits, this would shelter income of €22,000 from tax at the standard rate each year.
It should also be noted that social welfare payments are exempt from USC so, in addition to no USC liability arising on this income, it is also not counted as income for the purposes of determining whether the USC entry threshold has been reached.
50. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the Central Bank's response to the placing of 2,141 SME customers into a global restructuring group by a bank (details supplied); his views on whether a formal review is required by the Central Bank to assess whether any SME customers here were inappropriately treated; and if he will make a statement on the matter. [16412/17]
Amharc ar fhreagraI am informed by the Central Bank that, while it cannot generally comment on interactions with regulated firms, Ulster Bank Ireland D.A.C. is engaging with the Bank in relation to this matter.
As the Deputy is aware, in November 2016, RBS announced a new complaints review process overseen by an independent third party and the automatic refund of complex fees to SME customers in Global Restructuring Group (GRG) in the United Kingdom and the Republic of Ireland between 2008 and 2013. I am informed that:
- Ulster Bank is working on how it can provide the same supports to its customers in the Republic of Ireland.
- Ulster Bank commenced sending letters in February to SME customers who were in GRG between 2008 and 2013 to let them know about the new GRG complaints review process and if they are included in the automatic complex fee refund.
- Ulster Bank has indicated that this is almost complete.
- The GRG Customer Helpdesk can be contacted by emailing GRGCustomerHelpdesk@rbs.co.uk or calling 1800 882 779 (ROI)/+44 184 222 6142 (International) and more information is available at http://digital.ulsterbank.ie/business/grg-announcement.html.
I am confident that legislative changes since the financial crisis have equipped the Central Bank with an array of investigative, regulatory and enforcement powers to ensure that regulated financial service providers adhere to the requirements of financial services legislation. These changes include significantly enhanced powers for the Central Bank to gather information under the Central Bank (Supervision and Enforcement) Act 2013 which broadened the Banks' information gathering and authorised officer powers.
It is evident that the Central Bank is properly undertaking its enforcement role by the recent sizeable settlements in enforcement cases.
In addition to this enforcement role, the Deputy may be aware that the Central Bank is proactively regulating the financial system and has issued regulations aimed at protecting SMEs when dealing with regulated and unregulated firms as set out below. These SME Regulations introduce specific requirements, including:
- Contacting SME borrowers who have been in arrears for 15 working days;
- Warning SME borrowers if they are in danger of being classified as not co-operating; and
- Expanding the grounds for appeal and setting up an internal appeals panel.
Under these SME Regulations, regulated financial services firms must have a complaints handling procedure in place. Any complaints against financial institutions should first be discussed with the institution concerned.
51. Deputy Catherine Murphy asked the Minister for Finance if there were concerns raised within his Department regarding the due diligence information made available to a person (details supplied) when considering a significant share purchase in a bank (details supplied) in 2010; if that concern arose due to the fact the same information was not put into the public domain, therefore possibly facilitating shareholder oppression; and if he will make a statement on the matter. [16429/17]
Amharc ar fhreagraThe bank in question was required by the Central Bank of Ireland, its regulator, to raise new capital as part of its 2011 Prudential Capital Assessment Review (PCAR). As the State was a shareholder at the time, it faced the prospect of injecting further capital into the bank to protect its investment and support the bank at a time when economic and financial conditions were extremely challenging. However following an approach by a consortium of international investors, the State took the decision to exercise its rights to acquire the new shares being offered by the bank by way of primary issuance, but then subsequently sold on the majority of these shares at no loss or profit. This reduced the taxpayer's net investment and had the associated benefit of signalling to the market that high quality international, professional investors were prepared to invest in Irish banks at a critical time for our country.
In order to facilitate this sale of shares by the State, the Bank concerned made presentations to, and facilitated detailed due diligence by, each of these investors in relation to the Bank's business and investment strategy and progress made in restructuring and repositioning itself, including the Bank's pivotal role in helping revitalise the Irish economy. These were decisions made by the Board and management of the bank and any associated disclosure obligations were also a matter for the bank. I note that the sale of shares by the State did not, in itself, result in dilution for other shareholders. If the Deputy has any concerns that other shareholders were oppressed as part of this transaction then she should consider raising such concerns with the relevant regulatory authorities.
52. Deputy Robert Troy asked the Minister for Finance if he will maintain the hospitality industry's 9% VAT rate further to comments by the Minister for Transport, Tourism and Sport at the tourism awards; and if he will make a statement on the matter. [14235/17]
Amharc ar fhreagraAs part of the Government's Job Initiative in 2011, I introduced a temporary second reduced VAT rate of 9% in respect of tourism related services, including hotel and holiday accommodation; various entertainment services; the use of sporting facilities; hairdressing services; and various printed matter. This measure was aimed at boosting tourism and the creation of additional jobs in that sector. The 9% rate was introduced from 1 July 2011 and was due to expire on 31 December 2013.
In Budget 2014, I decided to retain the 9% rate to support the increased number of jobs already in place and accelerate the creation of new jobs. The rate was further retained in Budget 2015 in light of the job growth in the tourism sector. However, it was incumbent on the industry to ensure that this VAT relief continued to be passed through fully to the consumer, and that if prices rose any further the case for retaining the 9% rate would diminish.
In Budget 2017, in light of Brexit, I considered it would be prudent to retain the 9% reduced VAT rate into 2017. I stated that it would act as a buffer for the sector against the weakness in sterling which increases the cost of holidaying in Ireland for British tourists.
In addition, the Deputy will be aware that the Programme for a Partnership Government, published in May 2016, made a commitment to work towards achieving the tourism policy goals set for 2025 through specific measures including the retention of the 9% VAT rate on tourism related services, but this itself is dependent on prices remaining competitive in the sector.
53. Deputy Bríd Smith asked the Minister for Finance his plans to sell a bank (details supplied); and if he will make a statement on the matter. [16468/17]
Amharc ar fhreagra77. Deputy Thomas P. Broughan asked the Minister for Finance his plans for a bank (details supplied); the way in which this State asset should be best utilised for Ireland's long-term economic development; and if he will make a statement on the matter. [16419/17]
Amharc ar fhreagraI propose to take Questions Nos. 53 and 77 together.
It is the Government's intention that the State will exit its banking investments in a measured and careful manner returning their ownership to the private sector over time. I have been clear in stating that my primary objective in the disposal of these assets will be recovering the maximum amount of money for the Irish taxpayer. In the case of AIB I have indicated that an IPO (Initial Public Offering) is the optimal route to recouping value from our investment. This will serve to reduce our national debt, de-risk our exposure over time yet at the same time enable us to benefit from a hoped for improvement in the banks fortunes in the medium term.
The earliest possible IPO window for the bank is the second quarter of 2017 with a second window in the autumn. Indeed, officials in my Department along with our independent financial adviser, Rothschild, have done considerable preparatory work in this regard. In December of last year, following a competitive procurement process, three firms were appointed to act as joint global co-ordinators to lead a selling syndicate in preparation for a possible IPO. On the 23 March, I further announced the addition of five joint bookrunners and a co-lead manager to the syndicate. The firms have been appointed for an eighteen month period. The appointment of the firms as advisers does not signal any intention or obligation for us to proceed with a transaction. Given the improved state of our national finances we are under no pressure to sell, and so any decision to do so will be subject to a number of factors, including favourable market conditions.
AIB published its 2016 financial results on Thursday, 2 March 2017 and these confirmed the ongoing strong performance by the bank with sustainable profits, strong capital generation and very significant lending into the Irish economy. The proposal of a dividend payment of €250m to ordinary shareholders, almost all of which will accrue to the State, is particularly significant given that it has been nine years since the bank last paid a dividend to its shareholders. These results confirm the view that 2017 represents an appropriate time to consider an IPO for the bank.
Clearly, in order for us to proceed with the sale of any of our banking assets, we would need to be satisfied that the market is prepared to put a fair and reasonable value on the relevant business, bearing in mind its current performance, its future prospects and the outlook for the Irish economy. Officials in my Department continue to monitor market conditions and the performance of banking equities with a view to planning appropriate exit strategies, consistent with what is set out in the Programme for a Partnership Government.
54. Deputy Catherine Murphy asked the Minister for Finance if the Comptroller and Auditor General has raised concerns regarding the issues associated with IAS39; if the Comptroller and Auditor General has raised IAS39 with his Department; and if he will make a statement on the matter. [16430/17]
Amharc ar fhreagraGiven that the Comptroller and Auditor General and his office have no dealings with the banks in which the State has investments or with IBRC, I am assuming that the Deputy is querying whether the Comptroller and Auditor General has raised concerns regarding the issues associated with IAS 39 with respect to NAMA and I am answering the question on that basis.
IAS 39 is the current accounting standard for the recognition and measurement of financial assets and liabilities which applies to annual periods beginning on or after 1 January 2005. As accounting standards continue to evolve, IAS 39 will be largely replaced by IFRS 9 Financial Instruments for annual periods beginning on or after 1 January 2018.
The Comptroller and Auditor General has not raised concerns to me regarding issues associated with IAS 39 with respect to NAMA and I am not aware that he has raised concerns on this matter to officials in my Department.
The accounts of NAMA and the banks in which the State has investments are audited in line with the prevailing accounting standards applicable at the time. In the case of NAMA, its accounts are audited by the C&AG. In the case of the banks, their accounts are audited by their duly appointed statutory auditor. To my knowledge, no concerns have been raised in any of the audit opinions, contained in the annual reports of these institutions, with respect to the use of this international accounting standard by any of these institutions.
I note that the Deputy has made a number of contributions around this matter over the past number of weeks. There seem to be many concepts at play in the Deputy's questions and remarks in the Dail including accounting standards, central bank borrowings, secured lending, unsecured lending, loan sales, asset sales, sub participation arrangements, legal and beneficial ownership of assets and loans, among other concepts.
In light of the Deputy's contributions and her recognition that this is a technical matter, I would be happy to make my officials available to meet to better understand the concerns raised by the Deputy.
55. Deputy Maureen O'Sullivan asked the Minister for Finance if he is satisfied that the Revenue Commissioners are providing a suitable service for those persons who are not overly Internet efficient; and his views on whether more consideration should be given to older persons in particular in relation to the Revenue Commissioners online emphasis when dealing with front-line tax services. [16405/17]
Amharc ar fhreagraI am aware that Revenue offers a wide range of contact channels to support taxpayers in both understanding and voluntarily complying with their tax and duty obligations. The contact channels include online, self-service, telephony, postal and a network of public offices which facilitate either walk-in services or an appointments service. I am advised by Revenue that it has an ongoing programme of improvement and modernisation of its service offering, tailoring the service to meet the needs of taxpayers and the increasing preference of taxpayers to do their business with Revenue online at their own convenience.
I am advised that Revenue actively encourages taxpayers to use the online and self-service contact channels as the quickest, most flexible and most secure facilities to conduct their business with Revenue. This approach is clearly meeting the needs of many taxpayers as reflected by the fact that, for example, there was a 16% increase in 2016 in the number of tax return forms (Form 12) filed on-line by PAYE taxpayers and a 74% increase in 2016 in the number of on-line requests for P21 Balancing Statements. This increase in the preference for on-line services is a feature across the taxpayer base.
Revenue fully appreciates that some customers will be unable to avail of digital services for any one of a number of reasons. In such circumstances, I am assured by Revenue that they are committed to providing a quality customer service on alternative channels to help those customers understand or comply with their tax obligations and claim their entitlements. In that regard, and by way of practical evidence of that, I am advised by Revenue that its increased resourcing to support those making contact by telephone led to a significantly improved service to PAYE taxpayers with call-answering rates for 2016 increasing to 97% despite an increase in the overall number of calls received.
I am satisfied that Revenue's customer service approach is fully cognisant of the different needs and preferences of its very diverse customer base.
56. Deputy Brendan Smith asked the Minister for Finance his plans to implement additional measures to deal with the smuggling of diesel and tobacco products and other illicit trade; and if he will make a statement on the matter. [16395/17]
Amharc ar fhreagraCriminal activity of the kind referred to by the Deputy poses a serious threat to legitimate businesses, consumers and the Exchequer. I am assured by Revenue that action against smuggling and other illicit trade of excisable products is, and will continue to be, a priority and that strategies to monitor and tackle existing and emerging areas of concern are embedded in Revenue's business programmes. Revenue's work in this area is supported by robust legislative measures many of which I brought forward in Finance Acts over the last number of years.
With regard to tackling the illegal fuel trade, the primary threat in recent years came from fuel laundering and I am sure the Deputy will agree that Revenue has been very successful in tackling the problem. The measures taken in this regard included a significant legislative programme that I implemented over a number of Finance Acts, as well as implementing a new fuel marker, to strengthen the regulatory framework for the distribution of fuel in Ireland. Changes in the licensing system and mandatory supply chain reporting by all traders involved in the sale and distribution of fuel have minimised the scope for fraud in the sector.
With regard to tobacco products, Ireland, like all countries with high tobacco taxes, is an attractive target for smuggling. The potential loss of revenue as a consequence of smuggling is very serious and as such tackling the issue is a key priority for Revenue. Robust and targeted legislative action has been taken over recent years to strengthen Revenue's powers, including enhanced Revenue powers of search and inspection. The Government will continue to ensure that all legislative action necessary to combat illicit tobacco trade will be taken.
On the alcohol side, duties provide a financial incentive for alcohol fraud, but there is little evidence of large scale illegal activity at present. Illicit trade in alcohol can occur through the illegal diversion of untaxed alcohol onto the market and also through the illegal production of counterfeit alcohol and Revenue is very alert to these risks. Revenue's action is based on intelligence on criminal activity, risk based examination of commercial traffic and of stock in retail premises.
I am satisfied that Revenue's strategies have been very successful, and I am assured that action in these areas will continue to be a high priority.
57. Deputy Joan Burton asked the Minister for Finance his plans to provide financial support to companies and SMEs that may be adversely affected by Brexit; and if he will make a statement on the matter. [16374/17]
Amharc ar fhreagraAt an overall policy level, the Department of Jobs, Enterprise and Innovation is primarily responsible for SME policy. In relation to SME finance, the Programme for Partnership Government sets out that all viable SMEs operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy.
Government actions to date have ensured that there are already extensive supports available to assist SMEs (over 170 supports are provided by 30 separate agencies). These supports include the Strategic Banking Corporation of Ireland, the Credit Review Office, Microfinance Ireland, and the Credit Guarantee Scheme amongst others. These supports will play an important role in assisting companies and SMEs to meet the challenges of Brexit. The advisory enterprise supports in relation to business planning will be particularly important in assisting SMEs to diversify their exports so as to reduce their exposure to the UK; and/or re-price their products/services (if possible); and/or restructure their cost bases so they can continue trading with the UK during a period of weaker sterling. These advisory supports will also be important in informing SMEs of private market financial supports and existing State supports that are available.
Last year, the Department of Finance conducted macro-economic analysis on the impact of Brexit, which fed into the Brexit measures in Budget 2017. My Department is also currently working with the Department of Jobs, Enterprise and Innovation and the Strategic Banking Corporation of Ireland to assess the potential impact of Brexit on the SME sector. It is not possible at this time to make definitive predictions of the impact of Brexit on SMEs given the uncertainties surrounding the post Brexit relationship between the UK and the EU.
59. Deputy Joan Burton asked the Minister for Finance his views on whether Ireland is facing unfair competition in attracting banking, insurance and other jobs here as a consequence of Brexit; and if he will make a statement on the matter. [16372/17]
Amharc ar fhreagraAs the Deputy will be well aware, the area of international financial services (IFS) is extremely competitive. Although Ireland has been very successful in attracting global leaders in IFS over recent decades we cannot become complacent especially in the face of increased competition from other countries and, of course, in the context of Brexit.
This is why the Government launched IFS2020 Strategy in March of 2015 which is a whole-of-Government approach to further driving the growth and development of the IFS sector in Ireland which has been developed jointly between the public and private sectors underpinned by annual Action Plans. These Plans can be tailored on an ongoing basis to ensure that Ireland remains fully capable of dealing with any challenges and opportunities in the area of IFS especially in the lead-up to the exit of the UK from the EU. In particular, we have to ensure that Ireland's offering as a location of choice for global international financial services remains highly competitive and on a par with our competitors in other EU countries.
It should be noted that in my role as Minister of State for Financial Services, I monitor trends and developments as they impact on the international financial services (IFS) sector. Arising from this, in a scheduled meeting with Commission Vice President Dombrovskis a number of areas were discussed, including ensuring that there is consistency across EU Member States in the application of European and Member State regulatory standards for financial services.
I raised these issues with the Vice President in the context of potential stability risk to the European financial system. It was also mentioned that it was also mentioned that there were concerns about an apparent impression that some Member States may apply less than full regulations to financial services activities seeking to relocate from London i.e. regulatory arbitrage. It has to be clarified that these were concerns rather than "complaints" per se and they echo the sentiments of some other Member States. In fact the Chairpersons of the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) also voiced similar sentiments recently.
60. Deputy Thomas P. Broughan asked the Minister for Finance the position regarding the tax repayment in respect of a company (details supplied); his views on the direction of the OECD's centre for tax policy that other OECD countries are entitled to part of the taxes which may be realised; and if he will make a statement on the matter. [16422/17]
Amharc ar fhreagraNotwithstanding the appeal that the Government has lodged in the Apple State Aid case, Ireland is required to comply with the binding articles of the Commission's Final Decision and to recover the alleged aid from Apple. Irish officials are continuing this work to ensure that the State complies with all our recovery obligations.
I note the recent reported comments made by the Director of the OECD's Centre for tax policy in respect of this case and the possibility that other countries may also have a claim to some of the money. The Commission has said publicly that the recovery amount may be reduced if other countries were to require Apple to pay more taxes.
I would say that the Commission's State Aid Decision does not change the taxing rights in other countries. What the Commission and the OECD are referring to here forms part of the regular private tax process for any global company, whereby they are responsible for managing their global tax affairs in the various jurisdictions in which they are located. It is therefore a matter between the company in question and the tax authorities in the various locations where they do business as to whether there are any taxation issues to be addressed and I am not in a position to comment on that engagement.
However, I can say that I have not been given any official indications from any country that they intend to seek further tax for their own country as a result of the Commission's Decision.
61. Deputy Clare Daly asked the Minister for Finance if he is satisfied with the way Revenue Commissioners have applied tax relief at source to mortgages; if he is further satisfied that it has been correctly applied in all cases; and if he will make a statement on the matter. [16407/17]
Amharc ar fhreagra88. Deputy Clare Daly asked the Minister for Finance if he is satisfied that the Revenue Commissioners have taken all necessary steps to advise all qualifying mortgage holders of their entitlement to tax relief at source; and if he will make a statement on the matter. [16408/17]
Amharc ar fhreagraI propose to take Questions Nos. 61 and 88 together.
Revenue administers mortgage interest relief in accordance with Section 244 of the Taxes Consolidation Act 1997. The level of relief applied to each case is based on the applicable ceiling, the rate of relief allowable and the percentage of the loan that qualifies for the relief. I am satisfied that Revenue are administering the relief as intended.
I acknowledge that the various rules and thresholds that apply can be difficult for borrowers to understand and indeed for Revenue to administer and it is possible that errors can occur from time to time. I am also aware that Revenue has recently written to the Deputy setting out the different rates of relief for both first time and non-first time buyers and has apologised for any incorrect information that may have been previously provided.
To assist borrowers in claiming their correct entitlements, Revenue operates a very intuitive and easy to use online application process via its website at https://www.ros.ie/trs/claim.html?execution=e2s1 and uses a sophisticated electronic file transfer system to pass the relevant information to the lending institutions. The lenders in turn confirm to Revenue the amount of qualifying interest paid by each borrower and the amount of relief granted.
Revenue also conducts regular compliance checks and desk reviews on the lending institutions to ensure all aspects of the scheme are being carried out correctly, thereby ensuring that borrowers are getting their correct entitlement on a timely basis.
Additionally, Revenue operates a Tax Relief at Source (TRS) Helpline at 1890 463626 to assist borrowers with any queries they may have. The Helpline operates Monday to Friday from 9.30 am to 5pm. Revenue has also published very extensive information in respect of all aspects of the relief on its website at http://www.revenue.ie/en/online/mortgage-interest-relief.html. This information is constantly updated to reflect any changes to the scheme.
Finally, if the Deputy is aware of a particular case where the relief has not been correctly applied or where the borrower is not certain that the proper entitlement has been received, he/she should be advised to contact Revenue at telephone number 061 488202 and the situation will be examined. Alternatively the Deputy can provide the details to my officials who will ensure they are immediately passed on to the appropriate Revenue personnel.
62. Deputy Eamon Ryan asked the Minister for Finance the measures he is taking to ensure banks operating here are paying the correct effective tax rate in view of a recent report (details supplied) that shows that banks here pay an effective tax rate of 6%, with some paying only 2%. [16465/17]
Amharc ar fhreagra68. Deputy Richard Boyd Barrett asked the Minister for Finance his views on a report (details supplied) on the tax rates paid by international banks here; and if he will make a statement on the matter. [16466/17]
Amharc ar fhreagra80. Deputy Gino Kenny asked the Minister for Finance his plans to make changes to the tax regime in view of a recent report (details supplied) on the tax rates paid by international banks; and if he will make a statement on the matter. [16470/17]
Amharc ar fhreagraI propose to take Questions Nos. 62, 68 and 80 together.
I am aware of the report which was published by Oxfam on 27 March. The report makes a number of comments about the level of tax paid by certain banks in respect of their operations in each country in which they operate, including Ireland. The report also asserts that thirty one different jurisdictions, including Ireland, should be considered tax havens.
I understand that the report relies on publicly available data published by banks under the Capital Requirements Directive (CRD IV). The report takes this data and uses it to assert the effective tax rate suffered by banks in the countries in which they operate. While I will not comment on the tax affairs of individual taxpayers, there are a number of reasons why using this data to assert a company's effective tax rate may create a misleading picture.
Calculating a company's effective tax rate requires looking at a company's profits as calculated under Irish tax law and the amount of tax charged on those profits under Irish tax law. This information is not included in the public country by country reports. For this reason caution is needed when using the country by country information when commenting on a company's tax affairs.
For example, the profit figures filed in reports under CRD IV reports generally relate to profit calculated for accounting purposes. Companies however do not pay tax on their accounting profits, but rather on their taxable profits. There are a variety of legitimate differences in how these figures are calculated in ever country. For example, all capital expenditure is treated differently for accounting and tax calculations.
Similarly, the "tax on profit or loss" figure in the publicly disclosed information may relate to tax actually paid over to Revenue rather than the tax charge suffered by the company. For example, where a company has losses carried forward from a previous year, this would reduce the amount of tax that must be paid over but does mean the company is not subject to a tax charge on its profits.
Officials in my Department are examining the report in more detail and have arranged a meeting with Oxfam to discuss the report's contents.
I would like to point out that all companies in Ireland pay the standard 12.5% rate on their trading profits which are generated in Ireland. Higher rates of 25% and 33% apply to certain profits. My Department has previously worked with Mr. Seamus Coffey, who is currently conducting a review on the corporation tax code, on a technical paper to provide clarity about the seemingly conflicting figures and methodologies for the effective rate of tax paid by companies in Ireland. This paper found that the effective rate paid nationally is between 10.3% and 10.7%.
I strongly reject the report's suggestion that Ireland is a tax haven. There is no clear analysis as to why Ireland would be considered as such and we do not meet any of the vague criteria that the report suggests are indicative of tax havens. The report itself notes that international institutions, such as the IMF and OECD, do not consider Ireland to be a tax haven.
63. Deputy Thomas P. Broughan asked the Minister for Finance his views on recent estimates from the UK Parliament of the net annual cost to the Irish Exchequer of a united Ireland; if his Department has carried out any research into the way this might be funded by a future united State; and if he will make a statement on the matter. [16420/17]
Amharc ar fhreagraThe Minister for Foreign Affairs and Trade has lead responsibility for issues relating to Northern Ireland.
As the Deputy will be aware, the principle of consent and the possibility of a change in constitutional status in Northern Ireland is a fundamental part of the Good Friday Agreement, which was endorsed by the people of this island, North and South.
The calling of a border poll under the terms of the Good Friday Agreement falls to the Secretary of State for Northern Ireland. The test applied is that he/she considers it likely that a majority of those voting would express a wish that Northern Ireland should cease to be part of the United Kingdom and form part of a united Ireland. There is no convincing evidence at present to suggest that a majority of the people of Northern Ireland would opt for a change in its constitutional status.
The Government is already extensively engaged with all EU Member States and Institutions to build understanding for the imperative of ensuring respect for all provisions of the Good Friday Agreement, including the provision for a border poll.
In terms of the estimates that the Deputy refers to, the position is that there have been many reports produced by the UK parliament regarding Brexit and its implications. However, officials in my Department are not aware of any specific estimates of costs that could relate to the Irish Exchequer.
Furthermore, in the absence of any prospect of a border poll in the near future, my Department does not have any active plans to carry out the research specifically referred to by the Deputy.
64. Deputy Bríd Smith asked the Minister for Finance the next steps for the motor insurance industry in view of the recent report on the cost of motor insurance; and if he will make a statement on the matter. [16469/17]
Amharc ar fhreagraThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy, published the Report on the Cost of Motor Insurance on 10 January 2017.
The Report addresses 6 priority areas, with 33 recommendations and 71 actions in an Action Plan.
Protecting the consumer
Improving data availability
Improving the personal injuries claims environment
Reducing the costs in the claims process
Reducing insurance fraud and uninsured driving
Promoting road safety and reducing collisions
Substantial work has commenced on the implementation of the recommendations by the relevant Government Departments and Agencies, in partnership with the insurance industry, and I am confident that the Report's 71 action points will be implemented by the end of 2018, with 45 due for completion by the end of this year.
Meeting the objective of delivering fairer premiums for consumers without unnecessary delay requires the cooperation and commitment of all relevant bodies and stakeholders, perhaps none more so than the insurance industry itself. Accordingly, my Department has been working closely with Insurance Ireland since the publication of the Report to ensure that all the recommendations for which the insurance industry holds direct primary responsibility, or where they play a significant relevant role, are implemented on time.
For example, in respect of protecting the consumer, it is proposed that insurance companies will be required to set out reasons for large increases in premiums and provide additional information on the premium breakdown, as well as ensuring policyholders are appropriately informed about claims made against them in a timely manner. Insurance Ireland is also providing important inputs regarding the processes of establishing the various proposed databases in relation to claims information, insurance fraud, and uninsured drivers. Other key recommendations, such as those related to the reduction of costs in the claims process and the work being undertaken by the newly established Personal Injuries Commission, will impact greatly upon the motor insurance industry too.
In line with an undertaking within the Report, the Working Group will prepare quarterly progress reports, commencing for this quarter, and these will be published on the Department of Finance's website.
A preliminary update on actions already underway has been prepared to the Oireachtas Committee.
65. Deputy Brian Stanley asked the Minister for Finance the level of renewable energy projects and green technology currently in the Ireland Strategic Investment Fund. [16452/17]
Amharc ar fhreagra73. Deputy Brian Stanley asked the Minister for Finance the level of funding being strategically invested by his Department in renewable energy projects and green technology; and if he will make a statement on the matter. [16451/17]
Amharc ar fhreagraI propose to take Questions Nos. 65 and 73 together.
ISIF informs me that it has a close working relationship with the Department of Communications, Climate Action and Environment and is committed to investing in the energy sector in a manner that is consistent with the State's commitment to make the transition to a low carbon, climate resilient and sustainable economy. ISIF's Energy Investment allocation of €800 million will be a key enabler of the significant investment requirement in sustainable energy infrastructure, new energy business models and new energy technologies to achieve the 2020 and 2030 energy and climate policy goals. This will necessarily include significant investment in renewable energy projects and green technology.
To date the Fund's commitments in this regard include:
- €44m for the €500m Dublin Waste to Energy project which will assist Ireland in meeting EU waste management targets. The facility will have capacity to process up to 600,000 tonnes of waste when complete and generate clean renewable energy for up to 80,000 homes.
- €35m commitment to NTR's onshore wind fund.
- Cornerstone investor in the Irish Infrastructure Fund (IIF) which holds a position in a portfolio of Irish onshore wind assets.
- Cornerstone investor in the BlueBay SME credit fund which has loaned to Irish headquartered renewable energy developers and to a designer and manufacturer of high power density high efficiency power supplies.
- €76m seed capital for Greencoat Renewables to enable it purchase two sizeable wind farms.
ISIF continues to seek out further investments that are consistent with its mandate and are aligned with national decarbonisation and energy security objectives and with national energy policy.
ISIF's pipeline includes opportunities in the areas of onshore wind, solar, biomass, energy storage, renewable heat, sustainable transport and energy efficiency.
