Written Answers Nos 269-288
269. Deputy Gerry Adams asked the Minister for Finance if an appointment system is in operation in other local Revenue Commissioners inquiry offices across the State; and if other offices still offer walk in services to members of the public. [27463/17]
Amharc ar fhreagraI am advised by Revenue that they have 18 public offices of which 13 currently provide an appointments service.
The provision of an appointments service reflects a reduced demand for the traditional 'walk-in' services to Revenue's public offices - the number of personal callers fell by 64% since 2008. By mid-July 2017 Revenue envisages that all public offices except Dublin (Central Revenue Information Office (CRIO), Cathedral Street) will offer an appointments service with the public offices in Cork, Limerick, Waterford and Galway continuing to offer a walk-in service in conjunction with the appointments service. There are plans to introduce an appointments service in parallel with the walk-in service in the Dublin (CRIO) at a future date, but the timeframe for this has not yet been determined.
I am assured by Revenue that they are committed to making it as easy and as straightforward as possible for taxpayers to be compliant. Revenue's Statement of Strategy 2017 - 2019 makes clear that commitment to providing advice and information both online and through other channels.
270. Deputy Gerry Adams asked the Minister for Finance if his attention has been drawn to the case of a person (details supplied) who has an agreement with the Revenue Commissioners regarding payment of outstanding moneys; if this matter has been passed to a debt collection agency; the status of the amounts owed; and if he will make a statement on the matter. [27535/17]
Amharc ar fhreagraRevenue’s clear preference is always to engage with taxpayers and businesses and where possible to agree mutually acceptable payment arrangements in preference to deploying debt collection/enforcement sanctions. Cases are only referred to enforcement agents, including Sheriffs and external solicitors, where all attempts to engage with the taxpayer/business have failed to resolve the situation.
The person in question has a poor tax compliance record and has consistently failed to file tax returns or pay liabilities on a timely basis. Revenue has confirmed that the person did not have any payment agreement in place up to the time the debt was referred to the Sheriff on 29 June 2016 and has only very recently filed outstanding Income Tax returns in respect of 2015 and 2016.
Prior to 29 June 2016 the person had failed to respond to a number of reminder notifications from Revenue in regard to the outstanding debt. This left Revenue with no alternative but to refer the outstanding tax and associated statutory interest to the Sheriff for collection. A number of discussions subsequently took place between the Sheriff and the person but only one part payment was received in October 2016. The Sheriff had started seizure proceedings against the person in advance of the part payment being received.
The up to date position is that the person has very recently forwarded post dated cheques to the Sheriff, which do not cover the full tax, statutory interest and cost components of the overall liability. The Sheriff has temporarily suspended further action on foot of the payments to allow the person some further time to pay the remaining arrears. However it is inevitable that the enforcement action will be resumed if the remaining debt is not paid or if the post dated cheques are not honoured.
271. Deputy Pearse Doherty asked the Minister for Finance the number of the ten companies that paid 37% corporation tax in 2016 that were members of the same group; and the number of groups of companies that paid 37% corporation tax in 2016; and if he will make a statement on the matter. [27578/17]
Amharc ar fhreagra273. Deputy Pearse Doherty asked the Minister for Finance the number of companies that are dealt with by the Revenue Commissioners' large cases division for the purposes of corporation tax in each of the past ten years; the total receipts from these companies in each of the past ten years; if he will provide this figure as a percentage of total tax take in each of the past 10 years; and if he will make a statement on the matter. [27622/17]
Amharc ar fhreagraI propose to take Questions Nos. 271 and 273 together.
In relation to Question 27578/17, I am advised by Revenue that two of the ten largest companies (that paid 37% of net Corporation Tax receipts in 2016) were members of the same corporate group. The percentage of the net Corporation Tax attributable to the top ten groups in 2016 was 40.8%.
With regards to Question 27622/17, I am further advised that the table below shows the number of Corporation Tax returns filed by companies under the auspices of Revenue’s Large Cases Division (“LCD”), the total Corporation Tax receipts from these companies, and the percentage of the total net receipts for the years 2007 to 2016 inclusive. The number of companies within LCD fluctuates, for example due to mergers, acquisitions, and new companies being registered, thus the number of Corporation Tax returns filed by LCD companies by year has been provided instead. Figures for Corporation Tax returns for 2016 are not yet available, as returns in respect of accounting periods ending in 2016 are not due to be filed until later in the year.
|
Year |
Number of LCD CT Returns |
CT Net Receipts LCD Companies €m |
CT Net Receipts All Companies €m |
LCD as a % of Total Net CT Receipts |
|
2007 |
7,330 |
4,705 |
6,393 |
73.6% |
|
2008 |
8,230 |
3,916 |
5,071 |
77.2% |
|
2009 |
8,754 |
3,375 |
3,889 |
86.8% |
|
2010 |
9,003 |
3,481 |
3,944 |
88.2% |
|
2011 |
9,443 |
2,985 |
3,500 |
85.3% |
|
2012 |
9,588 |
3,611 |
4,215 |
85.7% |
|
2013 |
9,888 |
3,640 |
4,270 |
85.3% |
|
2014 |
9,589 |
3,695 |
4,617 |
80.0% |
|
2015 |
10,190 |
5,528 |
6,873 |
80.5% |
|
2016 |
- |
6,034 |
7,352 |
82.1% |
272. Deputy Tony McLoughlin asked the Minister for Finance the measures which are being taken by the Government to assist returning citizens that may have lost their Irish no claims bonus that have had clean driving records while overseas from the high costs of obtaining car insurance upon their return; and if he will make a statement on the matter. [27621/17]
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 such as returning emigrants.
Notwithstanding the above, I am aware of the problems that high motor insurance costs is causing returning emigrants and in this regard the Deputy should note that the issue was considered by the Cost of Insurance Working Group which published its motor insurance report in January 2017.
Recommendation 6 of the Report, in particular, aims to address the problems faced by returning emigrants regarding the recognition of no claims bonuses through the introduction of a standard protocol for insurance providers, to ensure a greater consistency of treatment for returning emigrants. This is required to be in place by the end of 2017.
Also, the Deputy should be aware that by the end of Q2 2017, insurers are being asked to implement procedures when pricing a policy to enable the acceptance of driver experience from abroad when a person has previous driving experience in Ireland and is coming from a country that drives on the left side of road. By the end of Q4 2017, insurers are being asked to implement a similar procedure in relation to experience gained in a country that drives on the right hand side of the road. Insurance Ireland will submit a report to my Department on the implementation of these procedures in Q2 and Q4 2017.
274. Deputy Pat Casey asked the Minister for Finance if he will report on the Revenue Commissioners deducting household charge arrears from local property tax payments without providing invoices and receipts of such payments; and if he will make a statement on the matter. [27626/17]
Amharc ar fhreagraRevenue discontinued issuing paper receipts in respect of tax payments in July 2011 in accordance with Section 960E of the Taxes Consolidation Act (as amended). The paper receipts were replaced by an online facility, which is fully secure and available on a twenty four hour basis. The online facility has been available in respect of Local Property Tax since its commencement in 2013.
In regard to arrears of Household Charge (HHC), Section 156 of the Finance Local Property Tax Act (as amended) converted all Household Charge (HHC) liabilities that were still outstanding on 1 July 2013 to Local Property Tax (LPT) and increased the outstanding charge to €200. Section 156 also made Revenue responsible for the collection of the outstanding amounts.
Revenue has confirmed to me that the Deputy has very recently discussed the case in question with the LPT team and was advised that the person received a reminder notification in respect of her LPT arrear (i.e. the converted HHC liability) in May 2016 and also received the normal reminder notification in respect of her 2017 LPT liability in November 2016. The person subsequently paid €90 through one of the approved Payment Service Providers in March 2017. The payment was allocated to her earlier LPT debt as this was the oldest liability on her record, thereby minimising her exposure to interest charges on foot of late payment.
A further compliance letter issued to the person in May 2017 advising her of the balances still due in respect of the 2017 LPT liability to which no response has yet been received.
Revenue has confirmed that the LPT team will make immediate contact with the person to explain why the €90 payment was allocated to the LPT arrears in the first instance and to assist her in any way required in respect of the remaining liabilities.
275. Deputy Michael Healy-Rae asked the Minister for Finance if a mobile payment and digital wallet service can be introduced across all banks (details supplied); and if he will make a statement on the matter. [27630/17]
Amharc ar fhreagraThe question concerns mobile payment platforms that enable a consumer to make card payments using a mobile phone, tablet, watch or similar device. These platforms offer additional choice to consumers. Two international mobile payment platforms launched here over the past six months and several banks are already participating and offering these services.
I am supportive of innovation and increased competition in the payments market, but the decision to participate in a mobile payment platform is ultimately a matter for each individual bank.
In the present environment, where a number of providers are offering mobile payment services, I would encourage consumers to contact their bank to see what is available to them and to consider moving to another bank, where possible, if the offer is not satisfactory.
In this regard, as the Deputy may be aware, my Department recently ran a media campaign to raise awareness and promote consumer switching in retail banking markets. This initiative was funded in its entirety by AIB and Permanent TSB as was agreed in the context of both banks’ restructuring plans.
276. Deputy Pearse Doherty asked the Minister for Finance his plans to regulate the companies that provided hire purchase products including personal contract plans; and if he will make a statement on the matter. [27676/17]
Amharc ar fhreagraAs I stated previously in a reply to a question regarding this issue on 1st June, Personal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.
The CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company. A "credit intermediary" is defined as "a person...who in the course of his business arranges or offers to arrange for a consumer the provision of credit or the letting of goods in return for a commission, payment or consideration of any kind from the provider of the credit or the owner, as the case may be".
The CCPC provides licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie. The CCPC deals with complaints about the advertising of Credit Agreements and the advertising of car finance on credit intermediary websites and in the media. It also has a specific statutory remit to provide personal finance information and education to assist consumers.
If a consumer has concerns regarding the activities of credit intermediaries, they may wish to contact the CCPC. The Financial Services Ombudsman can also investigate complaints from individual consumers about credit intermediaries.
277. Deputy Robert Troy asked the Minister for Finance the amount his Department or a body under its aegis has paid to a company (details supplied) for advice, the use of intellectual property and other services. [27709/17]
Amharc ar fhreagraDeputy, my Department has not made any payments to Trutz Haase Social and Economic Consultant for advice, the use of intellectual property and other services.
I have provided in tabular format a listing of all Bodies under the Aegis of my Department including confirmation if they have employed the services of this company and details thereof where payments have been made.
|
Body
|
Amount paid to Trutz Haase Social and Economic Consultant Intellectual Property Details: HP Deprivation Index |
|
C&AGs |
Nil |
|
Central Bank |
Nil |
|
Credit Reviewer |
Nil |
|
Credit Union Advisory Committee |
Nil |
|
Credit Union Restructuring Board (ReBo) |
Nil |
|
Disabled Drivers Medical Board of Appeal |
Nil |
|
Financial Services Ombudsman Bureau |
Nil |
|
Financial Services Ombudsman Council |
Nil |
|
Investor Compensation Company |
Nil |
|
Irish Bank Resolution Corporation |
Nil |
|
Irish Financial Services Appeals Tribunal |
Nil |
|
Irish Fiscal Advisory Council |
Nil |
|
National Asset Management Agency |
Nil |
|
National Treasury Management Agency |
Nil |
|
Office of the Revenue Commissioners |
€12,100 was paid in November 2006 on a project established within the then new organisational structure (Restructuring) to examine Revenue risk on a geographic basis in County Kildare |
|
Social Finance Foundation |
Nil |
|
Strategic Banking Corporation of Ireland |
Nil |
|
Tax Appeals Commissioners |
Nil |
278. Deputy Pearse Doherty asked the Minister for Finance his plans to introduce a new method of measuring the size of the economy and the growth of same in view of the unreliability of GDP as a measurement in an Irish context; the work which has been carried out by his Department and the Central Bank to date in 2017; the input the EU Commission and the fiscal council have had on the issue; and if he will make a statement on the matter. [27728/17]
Amharc ar fhreagraThe compilation and publication of statistics on the economy, including GDP, is the responsibility of the Central Statistics Office (CSO), which is independent.
Following the exceptional growth rate recorded in 2015 and the increasing limitations of GDP as a measure of economic activity in Ireland, an Economic Statistics Review Group (ESRG) was established by the CSO last year.
The Group was chaired by the Governor of the Central Bank and was comprised of policymakers, analysts, regulators, business and trade union representatives and academics including inter alia the Irish Fiscal Advisory Council (IFAC), Economic and Social Research Institute (ESRI) and National Treasury Management Agency (NTMA). My Department was represented on the ESRG by the Chief Economist. The Group also benefitted from the expertise of international observers from Eurostat (representing the European Commission) and the IMF.
The remit of the ESRG was to advise on alternative indicators that would provide better indicators of economic trends in Ireland. In relation to the size and growth of the economy, the main recommendation from the ESRG was the publication of an alternative measure of Gross National Income, GNI*, which
(i) excludes the profits of re-domiciled firms in Ireland;
(ii) excludes the depreciation of foreign-owned assets (especially the depreciation of intellectual property).
It is important to stress that, from a legal perspective, the CSO is compelled to produce existing national accounts and balance of payments statistics, in accordance with internationally agreed methodologies and that our international obligations are still assessed on this basis (e.g. EU budget contribution is still based on GNI). The purpose of the additional indicator is to provide a better picture of underlying trends in the Irish economy.
I understand that the CSO has committed to publishing this alternative indicator, GNI*, in current prices with the Annual National Accounts in late June/early July.
279. Deputy Michael McGrath asked the Minister for Finance when his Department estimates that the State's debt to GDP ratio will reach 45%, 55% and 60% respectively based on the latest projections; and if he will make a statement on the matter. [27747/17]
Amharc ar fhreagraMy Department published a report on 6th June 2017 entitled the "Annual Report on Public Debt in Ireland". This Report, which will be published annually, is on the Department's website at the following link:
http://www.finance.gov.ie/sites/default/files/annual_debt_report_2017%20%28002%29_0.pdf.
As the Deputy is aware, the 2017 Stability Programme Update projected that the debt to GDP ratio will be 62.9 per cent in 2021. As illustrated in Figure 13 on page 19 of the Report, assuming the key inputs such as primary balance, interest and nominal growth rate remain unchanged from those in the 2017 Stability Programme update, it is projected that the debt to GDP ratio of 60 per cent would be achieved in 2022, 55 per cent in 2023/2024 and 45 per cent in 2026.
This projected timing does not factor in proceeds from the sale of banking assets, which will be used to lower debt and thus could bring forward the achievement of the above ratios that the Deputy has queried.
280. Deputy Pearse Doherty asked the Minister for Finance the advisers employed directly by a bank (details supplied) or his Department to provide advice or expertise related to the sale of the bank; the dates they were employed; the fees payable to each upfront or at the end of the process; and if he will make a statement on the matter. [27780/17]
Amharc ar fhreagraIn December of last year, following a competitive procurement process, three firms were appointed by my Department to act as joint global coordinators to lead a selling syndicate in preparation for an AIB IPO. On the 23rd of March this year I further announced the addition of five joint book runners and a co-lead manager to the syndicate. The syndicate banks have been appointed until July 2018. The three global coordinators lead the transaction performing most of the work, while the book runners and co-lead manager will help to ensure coverage of the broadest possible range of relevant investors both by type and geography when it comes to the marketing and sales effort.
The Deputy should be aware that in line with the State agreements with AIB, all fees incurred by the State in relation to an IPO transaction will be paid by the bank.
Fees are only payable to the syndicate on the completion of a successful transaction, and are proportional to the value of the transaction. As such it is not possible to provide an exact quantum of fees payable as no transaction has occurred yet. However the fees that have been negotiated by my officials are approximately 0.4% of the total transaction size. This is very competitive by reference to comparable transactions. The fee is split across all appointed syndicate banks and the number of firms involved, which is also within precedent, does not affect the overall fee level payable. The prospectus published by AIB estimates the potential fee with the assumption that the shares are listed at the mid-point of the published price range, which gives an indicative figure of €12 million.
Fees will also be payable to our independent financial advisor, Rothschild & Sons, appointed in December 2015 as well as communications advisers Gordon MRM and London-based Citigate Dewe Rogerson, appointed in January 2017. Legal advisers, William Fry, were appointed in February 2015 in relation to matters with respect to the State's investments in AIB. Details of the fees paid to these parties are disclosed on an ongoing basis under the procurement section of the Department's website: http://www.finance.gov.ie/who-we-are/financials/consultancy/consultancy/.
In addition to the above, AIB will also incur its own fees and expenses in relation to the initial public offering and these will include broker, corporate advisory, accounting and legal fees. These fees and expenses are a matter for the board and management of AIB, are borne by the company directly and are disclosed as part of their published prospectus. The prospectus is available on the AIB Investor Relations website here: https://aib.ie/investorrelations/ipo-information.
281. Deputy Pearse Doherty asked the Minister for Finance the steps that were put in place to ensure that no inside information or conflict of interest existed in the recent sale of buy-to-let mortgages to a company (detail supplied) in view of the fact that the company had previously been employed on a pro bono basis to advise a bank (details supplied); and if he will make a statement on the matter. [27781/17]
Amharc ar fhreagraThe Department of Finance appointed Goldman Sachs International in December 2015 to provide financial advice to the Department on the capital restructuring of AIB and in respect of the State's investments in AIB. As is customary in these type of engagements, the Goldman Sachs team advising the department was subject to strict confidentiality agreements which preclude them from sharing any information obtained in the course of their work for the Department with any third parties, including any other arm or function of Goldman Sachs.
Separately, Goldman Sachs was appointed by the Department of Finance in March 2017 as a Joint Bookrunner on the selling syndicate for an IPO of AIB.
In the case of AIB, any appointment of advisory firms or decisions on whom to sell assets to, are matters for the board and management of the bank itself.
282. Deputy Peter Burke asked the Minister for Finance his plans for further tax increases (details supplied); and if he will make a statement on the matter. [27792/17]
Amharc ar fhreagraAlcohol Products Tax is governed in the first instance by the EU Directive on the harmonisation of the structures of excise duties on alcohol. It is not possible to apply different rates based on where alcohol products are sold. In recent years my officials have examined proposals to address below cost selling of alcohol products, including a proposal for a "lid-on" levy to apply to sales of alcoholic products sold in off-licences. On review of this proposal by both the Revenue Solicitor's Office and the Attorney General, the legal basis for the implementation of such a levy was found to be unsound.
The Deputy will of course be aware that it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
283. Deputy Maurice Quinlivan asked the Minister for Finance the action he has taken to prepare for consequences a change in the American corporate tax rate may have on multinational companies located here; if there has been engagement and communication with the Revenue Commissioners on this topic; and if he will make a statement on the matter. [27797/17]
Amharc ar fhreagraI note the proposals that were announced by the Trump Administration for tax reform in recent months. At this stage, we have yet to see the substantive detail of the overall package that will be proposed by the Trump Administration. Agreement between the House of Representatives, the U.S. Senate and President Trump will be needed before any changes can be introduced.
The exact implications of US tax reform for Ireland, and the rest of the world, will depend on the exact nature of any changes which are ultimately agreed.
The proposed reduction in the US corporate tax rate is just one aspect of a wider set of proposals. It also remains to be seen whether any reduction in the US corporate tax rate would be permanent or temporary in nature. At this stage, sufficient details have not been published to enable a comprehensive analysis of the potential impact of the proposals as a whole. My Department, and the Irish Embassy in the US, are closely tracking the debate in the US and we continue to engage with business and others to fully understand the potential impacts of any US reform. Officials in my Department also keep in regular communication with the Revenue Commissioners on this and other international tax issues. Consideration is being given as to how best we could analyse the impact of any US tax reform proposal once the details of proposed changes become available.
One issue that is clear however is that Ireland’s membership of the EU is, and will remain, a key factor in attracting FDI from the US and elsewhere. Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from.
Ireland’s corporation tax regime and 12.5% corporation tax rate will continue to be competitive while also offering long-term certainty to international business. As always, we will remain alert and responsive to any changes in the US or global tax environment.
284. Deputy Maurice Quinlivan asked the Minister for Finance the number of companies that availed of the film relief tax credit in 2015, 2016 and to date in 2017; and the amount this tax relief cost the State in each of these years. [27803/17]
Amharc ar fhreagraI am advised by Revenue that prior to 2015, the Film Relief scheme, provided for by Section 481 Taxes Consolidation Act (TCA) 1997, operated by giving relief to individuals and companies investing in the film industry. The information in respect of the tax cost and number of investors who claimed relief under section 481 for the years 2004 to 2014 is available on the Revenue Commissioners webpage at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
With effect from 2015, the scheme provides direct support to film producer companies in the form of a tax credit. However, where an application was received up to and including 14 December 2014, it was processed under the previous scheme. Investors availing of the old scheme can choose the year in which to claim their relief. The provisional number of claimants of the tax credit in 2015 is 1,102 with a cost to the Exchequer of €69.7 million.
The following numbers of companies were granted relief during 2015, 2016 and 2017:
- 2015: 32 companies in respect of 43 films
- 2016: 54 companies in respect of 74 films
- 2017: 15 companies in respect of 21 films (to end Quarter 1 2017).
The information relating to the beneficiaries under the current scheme can be found at:
- 2015 beneficiaries: http://www.revenue.ie/en/companies-and-charities/documents/beneficiaries-tax-relief-2015.pdf.
- 2016 beneficiaries: http://www.revenue.ie/en/companies-and-charities/documents/beneficiaries-tax-relief-2016.pdf.
- 2017 (to Quarter 1) beneficiaries: http://www.revenue.ie/en/companies-and-charities/documents/beneficiaries-tax-relief-2017.pdf.
