Wednesday, 26 Jul 2017

Written Answers Nos. 168-187

Financial Instruments

Ceisteanna (168)

Richard Boyd Barrett

Ceist:

168. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of commercial trade in derivatives that took place here in 2016. [36312/17]

Freagraí scríofa

Minister for Finance

In Europe data is collected on derivative transactions in accordance with the requirements set out under Regulation (EU) No. 648/2012 or the European Markets Infrastructure Regulation (EMIR). 

As required by EMIR, trade repositories were established to centrally collect and maintain the records of derivative transactions by EU counterparties. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.  

EMIR sets out the organisations which can access the data collected by trade repositories which include the European Securities and Markets Authority (ESMA), the relevant competent authorities, the European Systemic Risk Board (ESRB), the relevant central banks of the European System of Central Banks and certain other bodies.

All Irish counterparties to derivative transactions are obliged to report relevant details to a trade repository. The Central Bank of Ireland, as the Irish national competent authority, has access to trade repository data for the purpose of carrying-out its functions under EMIR.

In addition and also publically available, the Bank of International Settlements compiles and publishes statistics on global derivative market activity (interest rate derivatives).

The Central Bank of Ireland has published a press release and data pertaining to interest rate derivative market activity in Ireland based on this data for the period April 2013 to April 2016. Such information can be accessed at:  

https://www.centralbank.ie/docs/default-source/statistics/credit-and-banking-statistics/bis-survey-on-foreign-exchange-and-derivatives-markets/gns-6-2-2-7-press-release.pdf?sfvrsn=4

https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/bis-survey-on-foreign-exchange-and-derivatives-markets

Financial Instruments

Ceisteanna (169)

Richard Boyd Barrett

Ceist:

169. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of trade that took place in futures and all other financial transactions in 2016. [36313/17]

Freagraí scríofa

Minister for Finance

I am informed that the Central Bank has access to data on transactions in derivatives reported by Irish counterparties to a trade repository under the provisions of Regulation 648/2012 on OTC Derivatives, Central Counterparties and Trade Repositories (“EMIR”). The Central Bank notes that concerns remain about the quality of this data. 

Under law, the Central Bank is limited in the level of commercial information it can comment on publicly.

It is unclear what specific information the Deputy requires in terms of all other financial transactions and clarity on this is required.

Stamp Duty

Ceisteanna (170)

Richard Boyd Barrett

Ceist:

170. Deputy Richard Boyd Barrett asked the Minister for Finance the amount collected in stamp duty on financial transactions. [36314/17]

Freagraí scríofa

Minister for Finance

I take it that the Deputy is referring to the stamp duty charged on the purchase of stocks and marketable securities of Irish incorporated companies. The following table sets out the receipts from this stamp duty for the years 2007-2016.

Year	Stamp Duty on stocks and marketable securities
2007	€609m
2008	€419m
2009	€208m
2010	€182m
2011	€195m
2012	€171m
2013	€251m
2014	€282m
2015	€424m
2016	€390m

The Deputy may be interested to note that a breakdown of all stamp duty receipts for the years 2007-2016 is available from Revenue's website at the following link:

http://www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx

Economic Data

Ceisteanna (171)

Richard Boyd Barrett

Ceist:

171. Deputy Richard Boyd Barrett asked the Minister for Finance the total household wealth here including all property and financial assets less all liabilities. [36315/17]

Freagraí scríofa

Minister for Finance

The Central Bank calculates household net worth at an aggregate level as the sum of household housing and financial assets minus their liabilities. According to its most recent Quarterly Financial Accounts, as of Quarter 4 of 2016 household net worth stood at €654 billion. The breakdown is provided in the following table.

 Household Net Worth (€ billions)

Date	Financial Assets	Liabilities	Housing Assets	Net Worth
2016 Q4	368	-155	441	654

The Central Bank indicates that it uses an estimate of housing assets based on the size and value of housing stock with the value of housing obtained from the CSO’s ‘Residential Property Price Index’ (RPPI). Further details can be found in the Quarterly Financial Accounts Statistical Release which can be accessed on the Central Bank’s website (https://www.centralbank.ie/statistics/data-and-analysis/financial-accounts).

Economic Data

Ceisteanna (172)

Richard Boyd Barrett

Ceist:

172. Deputy Richard Boyd Barrett asked the Minister for Finance the distribution of household wealth assets among the population; and the percentage of those assets owned by the top 1%, 5%, 10%, 20% and 50%, respectively. [36316/17]

Freagraí scríofa

Minister for Finance

I assume the Deputy’s question refers to the distribution of household net wealth (i.e. assets less liabilities).

In 2013, the Central Statistics Office conducted the Household Finance and Consumption Survey (HFCS). This survey provided for the first time comprehensive data on household wealth in Ireland. The survey provides information on the ownership and values of different types of assets and liabilities along with more general information on income, employment and household composition.

During 2016, my Department, jointly with the Economic and Social Research Institute (ESRI), conducted a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax using the HFCS. The research formed part of an ongoing joint research programme with the ESRI on the Macro-Economy and Taxation. The research paper, “Scenarios and Distributional Implications of a Household Wealth Tax in Ireland” is available on the ESRI website (https://www.esri.ie/publications/scenarios-and-distributional-implications-of-a-household-wealth-tax-in-ireland/). The paper presented results on the composition of net wealth (i.e. assets less liabilities) across both the wealth and income distributions in Ireland.

Table 2 of the Research paper details the distribution of household net wealth in 2013 across ten wealth deciles. Deciles are constructed by ranking households based on their net assets and then dividing them into ten equally sized groups.

It should be borne in mind when aggregating the percentage of net wealth held by different deciles that the bottom wealth decile in Table 2 has negative net wealth as total debts exceeded assets for these households. As a result, the richest 90% of households held 103.5% of net wealth in 2013. On this basis, in 2013 the richest ten percent of households held 53.8% of net wealth, the richest twenty percent held 72.7% of net wealth and the richest fifty percent held 98.6% of net wealth. The research paper did not examine the wealth holdings of the richest five percent or richest one percent of households.

Tax Data

Ceisteanna (173)

Richard Boyd Barrett

Ceist:

173. Deputy Richard Boyd Barrett asked the Minister for Finance the amount the State has forgone in tax write-downs due to the use of section 110 according to the latest available figures. [36317/17]

Freagraí scríofa

Minister for Finance

I am informed by Revenue that as Corporation Tax returns do not require separate entry of information in respect of the tax foregone due to the use of section 110, it is not possible to provide the figures requested.

However, the Deputy may wish to note that the estimated tax yield from the section 110 and funds changes introduced in the 2016 Finance Act were estimated at €50 million at the time of their introduction. This estimate was both conservative and prudent. To estimate the yield from these amendments into the future requires predicting changes in property prices as well as behavioural changes. It is too early for the Department or Revenue to revise the final amount expected in 2017 or beyond, however based on receipts received to date it is likely that the expected yield will be exceeded.

Tax Data

Ceisteanna (174, 175, 196)

Richard Boyd Barrett

Ceist:

174. Deputy Richard Boyd Barrett asked the Minister for Finance the amount the State has forgone in capital gains tax allowances for international investment funds for the latest available figures. [36318/17]

Richard Boyd Barrett

Ceist:

175. Deputy Richard Boyd Barrett asked the Minister for Finance the amount the State has forgone in rental taxes for international investment funds for the latest available figures. [36319/17]

Richard Boyd Barrett

Ceist:

196. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that could be raised from imposing a 10% levy on the profits of international investment funds operating here. [36340/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 174, 175 and 196 together.

I am informed by Revenue that it is not possible to identify from tax returns data the amount of income and gains from international investment funds. For this reason it is not possible to provide the figures in the questions.

National Debt

Ceisteanna (176)

Richard Boyd Barrett

Ceist:

176. Deputy Richard Boyd Barrett asked the Minister for Finance the size of the national debt currently. [36320/17]

Freagraí scríofa

Minister for Finance

The most recent estimate for the National Debt (which should be noted is distinct from General Government Debt (GGD), the metric used for comparative purposes across the European Union) is published on the NTMA website. As of end-June 2017 the National Debt stood at €183.87bn. 

The most recent estimate of the 2017 GGD was published by the Central Statistics Office in the Government Finance Statistics Quarterly Results (Quarter 1 2017) and, as of end-March 2017, was €208.2bn.

National Debt

Ceisteanna (177)

Richard Boyd Barrett

Ceist:

177. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of interest that will be paid on the national debt in 2018. [36321/17]

Freagraí scríofa

Minister for Finance

As outlined in PQ number 224 of 13/07/2017 the most recent estimates of interest on National Debt for the years 2016-2021 were published in the 2017 Stability Programme Update (Table A3, page 51).

The 2018 figure is reproduced as follows.

-	2018
National Debt Cash Interest (€ billions)	6.3

National Debt

Ceisteanna (178)

Richard Boyd Barrett

Ceist:

178. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of interest paid in 2017 that was contracted since 2008. [36322/17]

Freagraí scríofa

Minister for Finance

I am informed by the National Treasury Management Agency that it has paid net cash interest in the amount of €3.6 billion  in respect of Ireland’s National Debt for the six-month period (January to end-June 2017)*. This figure includes net interest paid on long-term debt, other medium/long term debt, short-term debt, EU/IMF Programme Loans and State Savings products. While the vast majority of interest paid refers to debt contracted since 2008, it is difficult to disaggregate this interest amount into interest contracted since 2008, due to complexities in the portfolio. Examples of these complexities include (i) certain State Savings products allow additions, reinvestments and withdrawals before maturity and (ii) bonds can be auctioned or cancelled from any series regardless of original issue date.

*This 2017 figure is provisional and unaudited at this point.

Exchequer Revenue

Ceisteanna (179)

Richard Boyd Barrett

Ceist:

179. Deputy Richard Boyd Barrett asked the Minister for Finance the primary Exchequer surplus for 2018. [36323/17]

Freagraí scríofa

Minister for Finance

The Summer Economic Statement published earlier this month contains the most recent fiscal forecasts and contains a projected Exchequer deficit of €2.2 billion for next year. This projection incorporates an unchanged assumption from April’s SPU of debt service interest of €6.3 billion. Accordingly, this provides a projected primary Exchequer surplus of €4.1 billion in 2018.

Tax Code

Ceisteanna (180)

Richard Boyd Barrett

Ceist:

180. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that would be collected by increasing stamp duty on commercial property to 6%. [36324/17]

Freagraí scríofa

Minister for Finance

The rate of stamp duty on commercial property is currently set at 2%. I am advised by Revenue that an increase of 4% would generate an estimated additional €376m in stamp duty revenue, bringing the total receipts from stamp duty on commercial property to an estimated €564m.

The deputy may be interested to note that Revenue have recently published their Pre-Budget 2018 Ready Reckoner, available at the following link: http://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

Tax Code

Ceisteanna (181)

Richard Boyd Barrett

Ceist:

181. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that would be raised from a tax on non-family homes levied at €600 per annum for second homes and €1,000 per annum for all subsequent properties. [36325/17]

Freagraí scríofa

Minister for Finance

I am informed by Revenue that a tax on second and subsequent non-family homes levied at €600 for the second homes and €1,000 on all subsequent properties would have an annual yield in the region of €229 million. This is based on those properties indicated to be non-principal primary residencies by their owners in their LPT returns.

Tax Data

Ceisteanna (182)

Richard Boyd Barrett

Ceist:

182. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that is forgone due to tax breaks for private pension contributions. [36326/17]

Freagraí scríofa

Minister for Finance

Pages 105 to 107 of the 2016 Report on Tax Expenditures published by my Department include latest figures on the amounts of tax foregone in relation to private pension schemes. The report is available at the following link: http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf

Tax Code

Ceisteanna (183)

Richard Boyd Barrett

Ceist:

183. Deputy Richard Boyd Barrett asked the Minister for Finance the amount the State would save if it only allowed tax breaks for private pensions at the 20% marginal rate. [36327/17]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that a pre-Budget 2018 Ready Reckoner is available on the Revenue Statistics web page at the link: http://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. In relation to the Deputy's Questions, page 11 of this Ready Reckoner shows the estimated cost or yield from changing the ceiling on the annual earnings limit for determining maximum allowable contributions for pension purposes and also the cost of reducing the marginal effective rate of such pension reliefs.

Tax Data

Ceisteanna (184, 185)

Richard Boyd Barrett

Ceist:

184. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that is forgone due to tax breaks for private schooling. [36328/17]

Richard Boyd Barrett

Ceist:

185. Deputy Richard Boyd Barrett asked the Minister for Finance the amount the State would save if it only allowed tax breaks for private schooling at the 20% marginal rate. [36329/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 184 and 185 together.

The schemes relevant to the Deputy’s questions are the Special Assignee Relief Programme (SARP) (employees who qualify for SARP may receive tax relief on certain costs associated with the education of their children in the State) and the Charitable Donations to Approved Bodies scheme.

It should be noted that, under SARP, only school fees of up to €5,000 per annum for each child of the relevant employee or for each child of his or her spouse or civil partner are eligible for tax relief. I am advised by Revenue that the following table sets out the total value claimed annually, and the number of eligible claimants, in respect of tuition fees for 2012, 2013 and 2014, the latest year for which data are available.

Year	Claimants	Total Tuition Claimed €*
2012**	-	34,000
2013	18	169,000
2014	35	571,000

*It should be noted that these figures are the total amount of tuition fees in respect of which claims were made and not the amount of tuition fees that qualified for SARP. The amount of tuition fees which qualified for SARP relief is not readily available.

**Where there are only small numbers of cases in a category, figures are not provided to protect confidential taxpayer information.

Due to the nature of the SARP employer returns for the years 2012, 2013 and 2014, there are no statistics available to estimate a net cost to the Exchequer for claims involving tuition fees. I am further advised by Revenue that as it not possible to estimate a net cost to the exchequer for claims involving tuition fees it is also not possible to estimate a saving associated with only allowing the relief at the 20% marginal rate, as described by the Deputy.

The Charitable Donation Scheme allows tax relief on qualifying donations made to eligible charities and approved bodies which include (but are not limited to) primary and secondary schools. I am informed by Revenue that it is not possible to separately identify the donations and refunds attributable to such schools. Accordingly, it is not possible to provide an estimate of the potential savings arising from the measure mentioned by the Deputy.

Tax Data

Ceisteanna (186)

Richard Boyd Barrett

Ceist:

186. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax forgone in research and development subsidies for the private sector. [36330/17]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the information in respect of the Exchequer cost of the Research and Development (R&D) tax credit for the years 2012 to 2015 is available on the Revenue Statistics web page at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.

Data in respect of 2016 are not yet available as the bulk of 2016 Corporation Tax returns are not due to be filed until later in the year. I am advised that a breakdown of these costs into public and private sector is not available. However, it is expected that the majority is likely to be undertaken by private companies.

Tax Data

Ceisteanna (187)

Richard Boyd Barrett

Ceist:

187. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that was forgone due to the knowledge box according to the latest available figures. [36331/17]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the Knowledge Development Box (“KDB”) was introduced with effect from 1 January 2016. The earliest Corporation Tax returns claiming the KDB would therefore be 2016 returns, the bulk of which are not due to be filed until later this year. When these returns have been filed and subsequently processed and analysed, Revenue will be in a position to provide this data. The estimated cost of the KDB at the time of Budget 2016 was €31 million on a first year basis and €50 million in a full year.