Written Answers Nos 209-228
209. Deputy Aindrias Moynihan asked the Minister for Finance the shareholding held by the State in a bank (details supplied); the details of each State trading transaction in the bank since 1 January 2011; and the date and nature of the transactions, for example, purchase or sale of ordinary shares, the amount of shares transacted and the finance involved. [26671/17]
Amharc ar fhreagra210. Deputy Aindrias Moynihan asked the Minister for Finance the value of the State's shareholding in a bank (details supplied). [26672/17]
Amharc ar fhreagraI propose to take Questions Nos. 209 and 210 together.
In July 2011, the State purchased 13,123m units of ordinary shares as part of Bank of Ireland’s rights issue. Each unit of stock cost 10 cent and the total cost to the State of this investment was €1,312m.
At the time of participating in the rights issue, it was always the intention to on-sell a substantial portion of this investment to a consortium of North American investors. Accordingly, the State sold 10,510m units of stock in two tranches – one in July 2011 and the second in October 2011. Both sales were at a price again of 10 cent per unit of stock generating total proceeds of €1,051m.
The State currently holds a 14% equity stake in the bank. Based on the Irish Stock Exchange's closing price, this stake had a market value of c. €1.1bn as at 31 May 2017.
211. Deputy Éamon Ó Cuív asked the Minister for Finance when a decision will issue from the Revenue Commissioners on an application for relief (details supplied); and if he will make a statement on the matter. [26691/17]
Amharc ar fhreagraI am advised by Revenue that the application for relief referred to was first refused, by letter dated 19 May 2016, as the company was deemed not to be a qualifying new venture, as required under section 493(1)(d) of the Taxes Consolidation Act 1997. The trade existed as a sole trader prior to being incorporated as a company. This position was again notified to the company by letter dated 11 August 2016, by letter dated 28 December 2016 and again by letter dated 2 June 2017.
212. Deputy Clare Daly asked the Minister for Finance his plans to make arrangements to ensure that companies here can trade with Iran and overcome restrictions on banking transactions in a manner which has been successfully done by most other European countries. [26745/17]
Amharc ar fhreagraI have been advised by the Department of Jobs, Enterprise and Innovation that Enterprise Ireland has organised several trade delegations to Iran in 2016 and 2017, as well as facilitating Enterprise Ireland client companies to explore the potential of the Iranian market. Enterprise Ireland will take these activities further next month (July) with a seminar on doing business in Iran. In addition, it is also planning the organisation of additional and larger trade delegations to Iran.
Enterprise Ireland sees particular opportunities in the Iranian market for client companies active in Agricultural and Food Production Technologies, Pharmaceuticals, Food and Healthcare. Another key sector is Aviation, as Iranian airlines are seeking to rapidly modernise their airliner fleet and have announced huge deals with Boeing, Airbus and Alenia for the purchase of upwards of 300 new aircraft. Many of these aircraft will be leased and as Ireland already has a pre-eminent role in global aviation leasing, opportunities should arise there for that sector.
The Deputy will be aware that, as a result of the Joint Comprehensive Plan of Action (JCPOA), the European Council has lifted nuclear-related economic and financial EU sanctions concerning Iran although some EU restrictive measures still remain in place with respect to Iran regarding human rights violations. The JCPOA is considered a positive development which, it is hoped will allow Irish banks to review and possibly relax their risk assessments of services which facilitate funds transfers and receipts to and from Iran.
The Department of Foreign Affairs and Trade have informed me that since the implementation of the JCPOA, there has been a jump in EU-Iran trade and that banks across Europe are moving carefully into handling business with Iran again. While there is still some caution in all EU banks regarding the application of the new international rules, it is expected that banks in Ireland and in all member states will gain confidence as the situation continues to evolve.
It is important however for the Deputy to note that Banks are designated persons under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, and consequently have Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) obligations to meet under that legislation. In meeting these obligations, banks are required to adopt a risk based approach as to how they conduct their business and who they conduct it with. I therefore have no role in influencing the risk tolerances banks should accept in this area and consequently cannot direct them as to what approach they should adopt.
Finally, my understanding is that Irish businesses and Irish banks are working to try and address this challenge. In this regard, officials of the Department of Jobs, Enterprise and Innovation inform me that Irish exports to Iran amounted to some €76M in 2015 and that Iran is an important target market for State development agencies such as Enterprise Ireland and Bord Bia.
The Government will continue to monitor the situation.
213. Deputy Jackie Cahill asked the Minister for Finance if he will review the criteria used in processing an application for a primary medical certificate (details supplied); and if he will make a statement on the matter. [26786/17]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. 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.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. 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 criteria to qualify for the Scheme are necessarily precise and specific. After six months a citizen can reapply if there is a deterioration in their condition.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and fuel grant provided for members of the Scheme, the Scheme represented a cost of €65 million in 2016. This does not include the revenue foregone to the Local Government Fund in respect of the relief from Motor Tax provided to members of the Scheme.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities and that the relief has been maintained at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
With regard to the Motorised Transport Grant, I am informed by the Minister for Health that due to concerns following on from reports of the Ombudsman in 2011 and 2012 regarding the legal status of both the Mobility Allowance and Motorised Transport Grant Scheme in the context of the Equal Status Acts, the Government decided to close both schemes in February 2013. The Government is aware of the continuing needs of people with a disability who rely on individual payments which support choice and independence. In that regard, monthly payments of €208.50 have continued to be made by the Health Service Executive to 4,700 people who were in receipt of the Mobility Allowance at the time the scheme closed.
The Government decided that the detailed preparatory work required for a new Transport Support Scheme and associated statutory provisions should be progressed by the Minister for Health. The Minister for Health has informed me that work on the policy proposals in this regard is at an advanced stage and he anticipates that this will be brought to Government shortly.
214. Deputy Jack Chambers asked the Minister for Finance the steps he will take to ensure no additional levies will be charged to cover the cost of the recent court ruling regarding an insurance company (details supplied); and if he will make a statement on the matter. [26813/17]
Amharc ar fhreagraThe failure of Setanta Insurance and the uncertainty that followed over the compensation arrangements for claimants created doubts around the current insurance compensation framework which has now been clarified by the Supreme Court.
However, there has been a general view that consideration should be given to ensuring 100% third party payments in any future motor insurance insolvencies, whatever the outcome of the Setanta appeals process.
This led to the Review of the Framework for Motor Insurance Compensation in Ireland – a report which was issued by a Joint Working Group led by the Department of Finance and the Department of Transport, Tourism and Sport in June 2016. It recommended that the level of cover for third party motor insurance claims should be increased from 65% to 100% and that while the ICF will pay out the amount due in full, it will receive from industry a contribution to cover the additional 35%. To meet this 35% contribution, industry has proposed the establishment of an ex-ante fund into which they would make a contribution equivalent to 2% of gross motor insurance premiums. Such a fund once built up would allow them meet their obligations.
This approach will ensure that industry shares the burden of the additional costs associated with increasing the level of coverage of the ICF and at the same time it creates predictability and certainty for industry as to their exposure for financing insolvencies. It also maintains the attractiveness of Ireland for new entrants. This approach will allow companies the option to choose to absorb this additional cost i.e. to finance this contribution through absorbing it themselves fully or partly as an alternative to passing it onto consumers.
It is intended that Heads of a Bill to amend the Insurance Act 1964 will be brought to Government for approval by the end of this month.
215. Deputy Imelda Munster asked the Minister for Finance if his attention has been drawn to the fact that insurance companies are refusing to offer persons a quote on the basis they have not been driving long enough or consistently enough despite the person having had a full driving licence for ten years; and if he will make a statement on the matter. [26828/17]
Amharc ar fhreagraAs 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. Consequently, I am not in a position to direct insurance companies as to the pricing level that they should apply to particular categories of individuals.
I am advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. These factors may include the level and consistency of driving experience, and how recent such driving experience is. Other factors include the age and the type of car, as well as the age, claims record and penalty points of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result the price and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience.
Finally the Deputy should note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Insurance Ireland can be contacted at feedback@insuranceireland.eu or 01-6761914.
216. Deputy Imelda Munster asked the Minister for Finance if his attention has been drawn to the fact that insurance companies are giving non-eligibility under acceptance criteria as the reason for their refusal to insure a vehicle for a person without stating specific details for refusal; and if he will make a statement on the matter. [26829/17]
Amharc ar fhreagraAs 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.
It should be noted that the Central Bank is responsible for the day to day supervision of the insurance industry. In that regard, it has two specific mandates. Firstly, it is responsible for the prudential supervision of insurance companies it has authorised by seeking to ensure that such firms remain solvent. Secondly, it is responsible for the supervision of conduct of business in Ireland, also referred to as consumer protection.
In relation to your question, the Central Bank of Ireland has informed me that its Consumer Protection Code includes rules relating to the provision of information to consumers by regulated firms.
Provision 2.6 of Chapter 2 (General Principles) requires that a regulated entity must ensure that, in all its dealings with customers and within the context of its authorisation, it makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer.
In the context of this question, Provision 4.39 of the Consumer Protection Code is particularly relevant and provides as follows:
“Where an insurance undertaking refuses to quote a consumer for a motor or property insurance, it must, within five business days of the refusal:
1. In the case of motor insurance, provide the consumer with its refusal its reason for refusing cover, on paper or another durable medium, and notify the consumer of their right to refer the matter to the Declined Cases Committee and the method of doing so.”
The Central Bank of Ireland also informed me that it “expects that when an insurer provides a reason for refusal to quote a consumer for motor insurance in accordance with Provision 4.39, it does so in a way that seeks to inform the consumer”.
The Deputy should note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Insurance Ireland will also provide further information in respect of the Declined Cases Agreement and can be contacted at feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.
217. Deputy Mattie McGrath asked the Minister for Finance if the Revenue Commissioners were notified of a feed price increase by a processor in the poultry sector prior to that processor proceeding with the increase; and if he will make a statement on the matter. [26836/17]
Amharc ar fhreagraI am advised by Revenue that traders are not required to notify them of their prices or of any changes to their prices and that generally there is no legal basis for price controls in Ireland. They have also informed me that they are well aware of claims that the interaction of the flat rate scheme for farmers and the normal VAT system can under certain circumstances be exploited to generate a systematic excess of flat rate payments to unregistered farmers over the VAT borne by them on their input costs.
I made provision in Finance Act 2016 for the exclusion by Ministerial Order of a sector from the flat rate scheme where the use of certain business structures and/or contractual arrangements within a particular sector result in a systematic excess of the amount of flat-rate addition payments over the amount of non-recoverable tax on input costs.
Revenue are currently reviewing business structures and models operating in the poultry sector and are carrying out a number of enquiries on farmers, processors and other parties including special purpose vehicles operating within this sector. The purpose of these enquiries is to examine whether or not there are business models, practices or special contractual arrangements in place that are giving rise to an excess of flat-rate addition payments over non-recoverable VAT input costs and the future plans of those parties in light of the new legislative provision.
If this examination of the poultry sector concludes that there is systematic overcompensation of unregistered farmers, the Ministerial Order is an available action. You might recall from the Dail debate on this provision that many Deputies asked that the industry be given time to restructure its operations and I acceded to this request and undertook not to make such an order until the latter part of 2017.
218. Deputy Clare Daly asked the Minister for Finance if there has been an audit of the operation of the tax relief at source, TRS, scheme since its establishment in 2002; and, if so, the person or body that conducted the audit. [26840/17]
Amharc ar fhreagra219. Deputy Clare Daly asked the Minister for Finance if the Revenue Commissioners have audited the methodology used by banks to apply tax relief at source to the funding account (details supplied). [26841/17]
Amharc ar fhreagra220. Deputy Clare Daly asked the Minister for Finance if the Revenue Commissioners apply an agreed definition of funding account; and the location this definition can be found. [26842/17]
Amharc ar fhreagra221. Deputy Clare Daly asked the Minister for Finance the amount the tracker redress scandal has cost the State to date as a result of tax relief at source payments being applied incorrectly to the higher interest that was applied to these mortgages. [26843/17]
Amharc ar fhreagra222. Deputy Clare Daly asked the Minister for Finance if the Revenue Commissioners has the power to investigate and to compel the bank to pay the tax relief at source in full in cases in which a shortfall arises between the value of TRS paid by the Revenue Commissioners to a bank and the value of TRS received by the mortgage holder from the bank. [26844/17]
Amharc ar fhreagraI propose to take Questions Nos. 218 to 222, inclusive, together.
Mortgage interest relief is administered through the Tax Relief at Source (TRS) system. The relief is applied by the lenders based on information provided by Revenue, which is sourced from the borrower’s application.
Revenue carries out regular compliance checks on the lenders to ensure correct operation of the mortgage interest relief scheme. Additionally, all information in regard to the operation of the scheme is made available to the Comptroller & Auditor General for examination.
There is no set definition in the legislation of ‘funding account’ but a common understanding of the term is the account from which the mortgage payments are made by the borrower.
Revenue is currently in discussions with the lending institutions to quantify the full amount of mortgage interest relief to be repaid on foot of the tracker redress programme. While the exact amount is not yet fully quantified, €2.8m has already been repaid to Revenue and it is expected that the remaining amounts will be recovered.
Under Section 244A of the Taxes Consolidation Act 1997 Revenue can request a lender to provide information in relation to any qualifying mortgage loan in order to verify that the correct relief was applied and the lender must comply with the request within thirty days. On the rare occasion where a shortfall is identified Revenue will pay the amount due directly to the borrower.
Finally, Revenue has assured me that it always follows up with financial institutions in regard to any complaints or queries received from mortgage holders. If the Deputy has concerns or information in relation to the allocation method being used by a particular lender I would ask that she immediately informs Revenue so that the issue can be quickly investigated.
223. Deputy Catherine Murphy asked the Minister for Finance the appeals process open to a person who has gone through all stages of mediation with the Revenue Commissioners and revenue sheriffs; and if he will make a statement on the matter. [26874/17]
Amharc ar fhreagra224. Deputy Catherine Murphy asked the Minister for Finance the amount paid to Revenue sheriffs by persons who decided to purchase back assets that were the subject of a warrant; and if he will make a statement on the matter. [26875/17]
Amharc ar fhreagra225. Deputy Catherine Murphy asked the Minister for Finance the number of warrants issued for the collection of debts owed to the Revenue Commissioners by Revenue sheriffs in the past five years and to date in 2017, by county; and if he will make a statement on the matter. [26879/17]
Amharc ar fhreagraI propose to take Questions Nos. 223 to 225, inclusive, together.
Revenue only refers outstanding tax liabilities to its enforcement agents, including Sheriffs, as a last resort. Before any such action is taken Revenue makes every effort to engage with the taxpayer and where possible will agree a mutually acceptable payment arrangement as an alternative. Revenue’s ongoing commitment in this regard is clearly evidenced by the 10,886 phased payment arrangements that were agreed in 2016 in respect of €103m of debt.
In regard to Question 26874, where a tax debt is referred to a Sheriff, the taxpayer is entitled to expect all engagement to be conducted in accordance with the Sheriffs’ Code of Practice. Where the taxpayer feels that this has not happened he/she is entitled to request a review by the Joint Steering Committee (JSC), which is also provided for in the Sheriffs’ Code of Practice. The JSC includes a representative from the Department for Justice and Equality (Chair), a representative from Revenue and representatives from the Sheriffs’ Association.
If the taxpayer is still dissatisfied at the end of JSC process he/she is fully entitled to have the issue heard before the Courts. It is important to note that Sheriffs are officers of the Court and as such are not accountable to Revenue for their debt collection activities. They are however governed by the general law, which applies to the collection of civil debts and are answerable before the Courts for any breach of these laws.
In regard to Question 26875, Sheriffs only seize goods in a very small number of cases. In such circumstances the taxpayer is provided with a full inventory of the goods seized and is allowed a further period of time to engage with the Sheriff before the items are sold. The items are returned to the taxpayer if the tax debt is subsequently paid or if an acceptable payment arrangement is agreed. Where the items are sold, the Sheriff provides the taxpayer with a full account of the proceeds of the sale including details on costs and the actual amount paid to Revenue. Revenue does not hold data in relation to seizure activity by the Sheriffs and is not aware of instances where a defaulting taxpayer ‘purchases back assets’ seized by the Sheriff in the manner suggested by the Deputy.
The following table provides a county breakdown of the number of warrants issued by Revenue to the Sheriffs for the years 2012 to 2017 (year to date) as requested by the Deputy in Question 26879.
Sheriff Warrants 2012 to January-April 2017
|
2012 |
2013 |
2014 |
2015 |
2016 |
Jan - Apr 2017 |
|
|
County |
No. |
No. |
No. |
No. |
No. |
No. |
|
Carlow |
377 |
378 |
441 |
378 |
417 |
144 |
|
Cavan |
547 |
517 |
437 |
369 |
504 |
217 |
|
Clare |
1,023 |
1,080 |
1,019 |
713 |
994 |
349 |
|
Cork |
3,518 |
2,802 |
3,051 |
3,223 |
4,184 |
1565 |
|
Donegal |
807 |
743 |
796 |
733 |
1,057 |
388 |
|
Dublin |
8,775 |
8,361 |
9,511 |
8,596 |
10,724 |
4015 |
|
Galway |
1,701 |
1,189 |
1,201 |
1,198 |
1,595 |
869 |
|
Kerry |
1,325 |
1,378 |
1,353 |
923 |
1,105 |
442 |
|
Kildare |
1,482 |
1,383 |
1,454 |
1,477 |
1,571 |
636 |
|
Kilkenny |
463 |
462 |
551 |
536 |
551 |
264 |
|
Laois |
327 |
299 |
397 |
391 |
449 |
195 |
|
Leitrim |
214 |
172 |
196 |
195 |
301 |
105 |
|
Limerick |
998 |
1,517 |
1,595 |
1,330 |
1,821 |
578 |
|
Longford |
255 |
233 |
242 |
227 |
367 |
124 |
|
Louth |
1,114 |
1,021 |
903 |
1,059 |
1,458 |
447 |
|
Mayo |
682 |
835 |
938 |
696 |
872 |
319 |
|
Meath |
1,261 |
1,074 |
1,191 |
1,263 |
1,935 |
701 |
|
Monaghan |
519 |
444 |
354 |
309 |
428 |
207 |
|
Offaly |
318 |
252 |
361 |
276 |
308 |
185 |
|
Roscommon |
337 |
193 |
281 |
229 |
392 |
179 |
|
Sligo |
444 |
408 |
436 |
396 |
468 |
150 |
|
Tipperary |
1,250 |
918 |
1,064 |
923 |
920 |
411 |
|
Waterford |
772 |
672 |
628 |
646 |
738 |
247 |
|
Westmeath |
561 |
405 |
570 |
520 |
593 |
304 |
|
Wexford |
808 |
750 |
726 |
827 |
1,425 |
432 |
|
Wicklow |
1,187 |
1,309 |
1,231 |
1,044 |
1,455 |
437 |
|
Total |
31,065 |
28,795 |
30,927 |
28,477 |
36,632 |
13,910 |
226. Deputy Peadar Tóibín asked the Minister for Finance the names of each donor who received tax relief for donations of heritage items under section 176 of the Finance Act of 1995 and section 1003 of the Taxes Consolidation Act 1997 in each of the years from 1995 to 2015. [26889/17]
Amharc ar fhreagra229. Deputy Peadar Tóibín asked the Minister for Finance the schemes offered by his Department that allow for benefits to persons, organisations or companies in the form of a tax break or direct grant to support items of arts, heritage, cultural or regional importance; the amount of money which has been granted or allowed to these schemes in each of the past five years; and the persons, organisations or companies involved. [26918/17]
Amharc ar fhreagraI propose to take Questions Nos. 226 and 229 together.
My Department does not provide direct grants to support items of arts, heritage, cultural or regional importance. In relation to tax expenditures, the following measures are in place:
1. Section 195 of the Taxes Consolidation Act 1997 covers the exemption of certain earnings of writers, composers and artists (commonly known as the artists’ exemption). This scheme provides for an exemption of up to €50,000 per annum from the income earned by an individual from their artistic works, where it has been determined by Revenue that the works are original and creative and are generally recognised as having cultural or artistic merit.
The scheme provides that Revenue can make determinations in respect of artistic works in the following categories only:
- a book or other writing
- a play
- a musical composition
- a painting or other like picture
- a sculpture
2. Section 482 of the Taxes Consolidation Act 1997 was introduced for the purpose of assisting the preservation of our built heritage, by giving tax relief to the owners or occupiers of significant buildings or gardens on the expenditure incurred by them on the repair, maintenance and restoration of those properties.
This scheme applies to an approved building, an approved garden existing independently, or an approved object contained within the house or garden, to which reasonable access is afforded to the public or where the building is a guest house approved by Fáilte Ireland.
A building or garden must receive a determination from the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs to the effect that it is a building or garden which is intrinsically of significant horticultural, scientific, historical, architectural or aesthetic interest, before it can qualify for tax relief.
3. Section 1003 of the Taxes Consolidation Act 1997 (previously section 176 of the Finance Act of 1995) provides for the payment of tax by means of donation of heritage items. The scheme provides that where a heritage item is donated to an approved body that a tax credit equivalent to 80% of the market value of the item is available to the donor to be set against any arrears of tax from prior years, any current liabilities, with the remaining balance being available to set against any future liabilities.
For the purpose of Section 1003, heritage item means any kind of cultural item including -
- any archaeological item, archive, book, estate record, manuscript and painting, and
- any collection of cultural items and any collection of such items in their setting,
which is -
- an outstanding example of the type of item involved, pre-eminent in its class, whose export from the State would diminish the accumulated heritage of Ireland or whose import would enhance the accumulated heritage of Ireland, and
- suitable for acquisition by an approved body.
Donations may be made to the following approved bodies
- The National Archives
- The National Gallery of Ireland
- The National Library of Ireland
- The National Museum of Ireland
- The Crawford Art Gallery Cork Ltd
- The Irish Museum of Modern Art
- Any other body owned or funded by the State or by any public or local authority as may be approved, with the consent of the Minister for Finance, by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs.
A detailed list of all heritage donations made since 1995 to date is available at http://www.ahrrga.gov.ie/app/uploads/2016/12/donations-1995-to-date.pdf.
The Annual Reports of the Revenue Commissioners also show the items donated in each year and are available at: http://www.revenue.ie/en/corporate/press-office/annual-report/index.aspx.
4. Section 1003A provides for the payment of tax by means of donation of heritage property to the Irish Heritage Trust or the Commissioners of Public Works. The scheme provides that where an approved heritage property is donated that a tax credit equivalent to 50% of the market value of the item is available to the donor to be set against any arrears of tax from prior years, any current liabilities, with the remaining balance being available to set against any future liabilities.
There has only been one donation made under this scheme in recent years. In 2015, Annes Grove Demesne, valued at €1,750,000 was donated to the Commissioners of Public Works.
Revenue has provided the following statistics in relation to the schemes. No statistics are available, as yet, in relation to the cost of the property donation made under section 1003A.
|
Year |
Artists Exemption (Section 195) |
Expenditure on approved buildings (Section 482) |
Donation of heritage items (Section 1003) |
|||
|
Cost (€m) |
Claimants |
Cost (€m) |
Claimants |
Cost (€m) |
Claimants |
|
|
2010 |
9.6 |
2,350 |
3.9 |
140 |
0.2 |
3 |
|
2011 |
5.5 |
2,520 |
3 |
150 |
1.4 |
1 |
|
2012 |
4.8 |
2,490 |
2.1 |
110 |
0.1 |
1 |
|
2013 |
5.3 |
2,580 |
2.1 |
120 |
0.3 |
1 |
|
2014* |
5.8 |
2,640 |
2.8 |
150 |
0.13 |
1 |
* Last year for which figures are available.
I am further informed by Revenue that for reasons of taxpayer confidentiality they cannot provide information on the persons, organisations or companies who have availed of relief under these schemes.
227. Deputy Stephen S. Donnelly asked the Minister for Finance the threats identified by his Department with regard to the responsibilities of his Department as a result of no deal being reached in Brexit negotiations; and if he will make a statement on the matter. [26903/17]
Amharc ar fhreagraOn 2nd May, the Government published a comprehensive document on Ireland and the negotiations on the UK’s withdrawal from the European Union under Article 50 of the Treaty on European Union. This document sets out the approach of the Government to the forthcoming negotiations, following the successful campaign to have key Irish issues recognised in the EU negotiation position.
Following on from this publication, work is underway to prepare, at Government level, a further paper on economic implications of the Brexit challenge. This will draw on the work to date across Departments, which will be developed to mitigate emerging sectorial challenges. These plans will build on ongoing cross-Government research, analysis and consultations with stakeholders, and will reflect the core economic themes of the Taoiseach's speech to the IIEA on 15 February last.
Ireland’s economic interests lie firmly in a strong and well-functioning EU with continued and unfettered access to the single market. There is a lot of negotiation to be done around trading arrangements. Our contingency work is examining all scenarios and we cannot pre-empt the outcome at this stage. We are not under any illusions about the complexity of these negotiations and are engaged in detailed planning to prepare for these.
The Department of Finance has been assessing and preparing for the impact of Brexit since well before the referendum on 23 June 2016. Work was carried out in the Department to assess the potential economic and financial sector implications arising, including the study, published in November 2015, under the ESRI-Department of Finance research programme, entitled 'Scoping the Possible Economic Implications of Brexit on Ireland'. The Department's work has been carried out within the whole-of-Government arrangements overseen by the Department of the Taoiseach.
Since the UK referendum, preparation has intensified across the whole of Government level, including in my own Department, where a Brexit Unit was established in July 2016, within the EU and International Division, to oversee and coordinate this work and to act as a key liaison point with the Department of the Taoiseach, in particular. In addition, the Department of Finance staff complement in the Irish Permanent Representation to the EU in Brussels has been strengthened. The challenge which we face as a result of Brexit is mainstreamed across all divisions of my Department and this is reflected in business planning. The ongoing work in the Department of Finance continues to examine all scenarios, including the scenario of the UK leaving the EU without an agreement in place.
We know from our own published research that the potential impact on the Irish economy is significant. The medium to long term economic impacts of a ‘hard Brexit’ with reversion to the WTO trade rules are set out in the November 2016 joint paper with the ESRI ‘Modelling the potential macroeconomic Impact of Brexit on Ireland’. Looking at the effect ten years after a UK exit, a hard Brexit scenario results in the level of GDP being almost 4 per cent below what it otherwise would have been in a no-Brexit scenario.
At the time of Budget 2017, the Department published detailed analysis of sectorial exposure to Brexit across the economy. This showed that the sectors most impacted by Brexit are generally small scale indigenous enterprises, with high levels of regional employment and relatively low profit levels that are highly linked to the rest of the economy. Ireland's exposure to the UK is not isolated to the indigenous sectors, with, for example, pharmaceutical manufacturing, financial and ICT services having a substantial export relationship with the UK. Certain other services sectors such as the indigenous Tourism and Hospitality sector (which is heavily dependent on UK tourists) are equally exposed to the competitiveness challenges posed by currency movements. In line with this sectorial analysis, Budget 2017 contained a number of measures which were a first step to support our economic response to the challenges of Brexit.
It is important to recognise that the full impact of the UK’s exit is only expected to materialise over time. We are at the beginning of a negotiation period and the precise arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK.
Work being done by the Department will be an important input to ensuring that Ireland will be in a position to counter negative economic impacts arising from Brexit , to ensure that Ireland's interests are protected in the upcoming negotiations at EU level and also to seek to maximise opportunities arising in the financial services sector. The Department will continue to monitor the economic impacts, to carry out the necessary analysis and to frame budgetary policy advice in this context.
228. Deputy Clare Daly asked the Minister for Finance if the 1991 code of practice on the transfer of mortgages and section 117 of the Central Bank Act 1989 has been effectively revoked or amended in legislation in order to render either piece of information as inoperable. [26915/17]
Amharc ar fhreagraAs the Deputy will be aware, the Code of Practice on the Transfer of Mortgages is a voluntary code which was issued by the Central Bank of Ireland in 1991 to institutions involved in mortgage credit.
The Code of Practice on the Transfer of Mortgages states that it applies to a loan secured by the mortgage of residential property. For the purposes of this Code of Practice, residential property is not limited to principal private residences. This Code of Practice can be applied on a voluntary basis by any institution involved in mortgage credit. A copy of the Code is available at https://www.centralbank.ie/regulation/consumer-protection/other-codes-of-conduct
Section 117 of the Central Bank Act 1989 has not been revoked and is still in force. Indeed, Section 117 was amended in 2004 by Schedule 3, Part 7 Amendment of Central Bank Act 1989 (Central Bank and Financial Services Authority of Ireland Act 2004 (No. 21)), however this amendment did not in any way render the legislation “inoperable”.
For further information, I refer the Deputy to the Central Bank (Supervision and Enforcement) Act 2013, which introduced a more assertive supervisory approach and overhauled the Central Bank’s powers across a wide range of areas and throughout the regulatory life cycle of firms. It strengthened the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely assertive prudential interventions. The Act also provided the Central Bank with greater access to information and analysis and underpins the credible enforcement of financial services legislation in line with international best practice. Section 48 of the 2013 Act gives the Central Bank the power to make regulations for the proper and effective regulation of regulated financial service providers. Borrowers have regulatory protections under 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 in July 2016.
