Micheál Martin
Ceist:95. Deputy Micheál Martin asked the Taoiseach if he had bilateral meetings at the European Council meeting in October 2017. [44683/17]
Amharc ar fhreagraEuropean Council Meetings
Ceisteanna (95)
Freagraí scríofa
Meetings of the European Council always provide useful opportunities to meet and interact with the Heads of State or Government of the other 27 EU Member States. I attended the October European Council in Brussels last week and, over the course of the two days, had the opportunity to engage with several of my EU counterparts.I was also invited, along with the Dutch Prime Minister, to join the leaders of the Nordic and Baltic countries - Sweden, Denmark, Finland, Estonia, Latvia and Lithuania - for a meeting ahead of the European Council discussions.
Although Ireland is not part of a formal group in the EU, as a small northern European nation with an open economy, we have similar positions on many issues, particularly economic issues. I was very pleased therefore to attend this meeting with like-minded partners and to have the opportunity to share our views, including on the future of Europe debate.
Taoiseach's Meetings and Engagements
Ceisteanna (96)
Micheál Martin
Ceist:96. Deputy Micheál Martin asked the Taoiseach if he will report on his speech in Derry on 13 October 2017. [44684/17]
Amharc ar fhreagraFreagraí scríofa
I visited Derry on the 13th and 14th of October. On Friday 13th, I addressed the Londonderry Chamber of Commerce President's Dinner when I set out the Irish Government’s ongoing commitment to the peace process and North/South Co-operation, particularly in the context of Brexit. I also highlighted the success of cross-border co-operation in the North West and the future potential of the region and re-iterated the Irish Governments commitment to provide a funding contribution to the construction of the A5 dual-carriageway.
On Saturday morning, I met with a delegation from the North West Strategic Growth Partnership which included elected representatives from across the North West.
At the meeting, I heard first hand about the work they are doing to build on existing strong cross border ties to ensure that the North West region can thrive.
I also paid a brief visit to the City Walls and the Peace Bridge.
European Council Meetings
Ceisteanna (97)
Micheál Martin
Ceist:97. Deputy Micheál Martin asked the Taoiseach if EU reform was discussed at the October 2017 European Council meeting. [45043/17]
Amharc ar fhreagraFreagraí scríofa
Although 'EU reform' was not an agenda item at the recent meeting of the European Council in Brussels, the Future of Europe was discussed over breakfast on Friday 20 October.
This issue is part of an ongoing process, and has been discussed at a series of Informal Summits in Bratislava, Valletta, Rome and Tallinn. President Juncker and President Macron have also recently made useful contributions to the debate.
At the meeting last Friday, it was agreed that the unity of the EU is particularly important and there was general support for the process proposed by President Tusk, on the basis of his ‘Leader’s Agenda.’ President Tusk’s plan envisages additional meetings at the level of Heads of State or Government, which should provide the impetus necessary for decision-making.
I expressed strong support for this approach and thanked President Tusk for taking the time to speak informally to all the 28 Heads of State or Government in advance of the meeting.
It is important that we approach the debate on the future of Europe in a positive way - membership of the European Union has been and will remain very important to Ireland. I will continue to engage actively and to seek to use our influence to shape this debate in a way that reflects our priorities and concerns.
Film Industry
Ceisteanna (98)
John Brady
Ceist:98. Deputy John Brady asked the Tánaiste and Minister for Business, Enterprise and Innovation the stage at which the sale of a site (details supplied) is at; her plans regarding the State's shares in the site; and if she will make a statement on the matter. [45168/17]
Amharc ar fhreagraFreagraí scríofa
Ardmore Studios is a commercial entity, owned 68.33% by private interests and 31.67% by the State. The State’s shareholding is managed by Enterprise Ireland.
Enterprise Ireland inherited the stake from NADCORP, the former State investment agency, in 1986. As a passive investor, Enterprise Ireland has no enterprise development role in Ardmore or any involvement in its day-to-day operations.
While Enterprise Ireland offers supports to exporting companies involved in film and the creative sector, policy responsibility for the development of the film industry rests with my colleague, Ms Heather Humphreys, TD, Minister for Culture, Heritage and the Gaeltacht.
The sale of the Ardmore Studios is a commercial decision by the owners of the studios. Ardmore Studios is being placed on the market for sale as a going concern.
Enterprise Ireland has not placed any preconditions on the pending sale of Ardmore Studios due to the existence of planning restrictions on the site which safeguard its use as a film-making studio into the future. Wicklow County Council has in the past confirmed to my Department that it agrees to maintain the film-only zoning as a matter of policy.
Enterprise Ireland remain engaged with the company and their representatives. Any proposal requiring a decision will be reviewed by Enterprise Ireland in consultation with me, as Minister for Business, Enterprise and Innovation. In turn, I will consult the Minister for Culture, Heritage and the Gaeltacht.
European Council Meetings
Ceisteanna (99)
Micheál Martin
Ceist:99. Deputy Micheál Martin asked the Tánaiste and Minister for Business, Enterprise and Innovation if there was a discussion at the October 2017 European Council opening with regard to increasing EU market presence in China and other Asian countries. [45045/17]
Amharc ar fhreagraFreagraí scríofa
Given the many items tabled for discussion at the October EU Council meeting, there was only a brief discussion on Trade. In that regard, I can confirm that as per the Taoiseach's recent statement on the European Council in the Dáil this week, increasing EU market presence in China and other Asian countries was not discussed at the EU Council.
China, however, remains an important market and is regarded as one of the most strategic destinations for Foreign Direct Investment by European companies – both at present and for the future. A comprehensive EU-China Investment Agreement is under negotiation, which will provide Ireland and other EU Member States with increased market access. Ireland is fully invested in this agreement and supports the European Commission in the ongoing negotiations.
In relation to trade with China, over recent years, Ireland has prioritised China as a marketplace with significant potential for Irish manufacturing and services. Bord Bia anticipates that China will become Ireland’s 2nd largest market for food and drink exports in the coming years. Successive Ministers and Taoisigh have led trade missions to China and we have also received visits from the highest levels of leadership from China to promote trade links between our two Countries.
Insofar as trade with the wider Asian market is concerned, with a small domestic market, further expansion in such markets is essential to Ireland’s continued economic growth. Ireland will continue to support the EU’s ongoing negotiation of Free Trade Agreements with Japan, Vietnam and Singapore. On the 6th July 2017 the European Union and Japan announced that they had reached a political agreement in principle regarding the Economic Partnership Agreement negotiations. The Agreement will remove the vast majority of duties paid by EU companies and will open the Japanese market to key EU agricultural exports as well as increase opportunities in a range of sectors. The European Commission is expected to present a proposal to the Council of Ministers in respect of the EU-Vietnam Free Trade Agreement in early 2018. The European Commission is also in discussions with Singapore in order to finalise the remaining outstanding issues, so the Agreement can be concluded as swiftly as possible.
The EU’s suite of Free Trade Agreements with third Countries help to open new markets, break down barriers and provide new opportunities for Irish firms. Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish Firms expanded market access and a predictable trading environment in third countries.
Horizon 2020 Strategy Funding
Ceisteanna (100)
Niall Collins
Ceist:100. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of SMEs that have been recipients of Horizon 2020 funding in each year since the programme became operational by county in tabular form. [45318/17]
Amharc ar fhreagraFreagraí scríofa
The following tables provide the requested data by country for each of the years 2014, 2015, 2016 and 2017. The tables are based on the European Commission's most recent data release on Horizon 2020, which cover the period up to the 30th September 2017.
SMEs in receipt of Horizon 2020 Funding
Table 1: 2014
|
County |
No. |
|
CARLOW |
1 |
|
CORK |
3 |
|
DUBLIN |
21 |
|
GALWAY |
3 |
|
KERRY |
4 |
|
KILDARE |
1 |
|
LIMERICK |
1 |
|
Offaly |
1 |
|
WATERFORD |
1 |
|
WESTMEATH |
1 |
Table 2: 2015
|
Table |
No. |
|
CARLOW |
2 |
|
CLARE |
1 |
|
CORK |
10 |
|
DUBLIN |
42 |
|
GALWAY |
10 |
|
KERRY |
2 |
|
LIMERICK |
5 |
|
LOUTH |
6 |
|
KILDARE |
1 |
|
MAYO |
1 |
|
TIPPERARY |
1 |
|
WICKLOW |
3 |
Table 3: 2016
|
County |
No. |
|
CAVAN |
1 |
|
CORK |
7 |
|
DUBLIN |
50 |
|
GALWAY |
4 |
|
KERRY |
3 |
|
KILDARE |
1 |
|
LIMERICK |
5 |
|
LONGFORD |
1 |
|
LOUTH |
1 |
|
MAYO |
1 |
|
MEATH |
1 |
|
SLIGO |
1 |
|
WATERFORD |
1 |
|
WESTMEATH |
1 |
|
WICKLOW |
3 |
Table 4: 2017
|
County |
No. |
|
CORK |
2 |
|
DUBLIN |
27 |
|
GALWAY |
4 |
|
KERRY |
3 |
|
LIMERICK |
2 |
|
MONAGHAN |
1 |
|
WICKLOW |
3 |
Central Bank of Ireland Reports
Ceisteanna (101)
Niall Collins
Ceist:101. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation her views on the latest Central Bank paper, the Labour Market and Wage Growth after a Crisis, which shows around one in ten persons reported they were willing to work up to 16 hours more per week on average, suggesting a greater degree of slack in the labour market, which will act as a brake on wage growth. [45322/17]
Amharc ar fhreagraFreagraí scríofa
The Action Plan for Jobs is the Government’s key instrument to support job creation. The Action Plan for Jobs process is working. Since the first Plan was launched in early 2012, there are over 224,000 more people at work, bringing total employment in the State to almost 2,063,000 by end of Quarter 2, 2017.
The increase in employment has been accompanied by a decrease in unemployment from 15.2% to 6.1% in September 2017. To date, while in some sectors there has been strong wage and earnings growth, in part due to recovery the economy, productivity growth and some tightness in the labour market conditions, overall wage growth has been relatively muted.
Over this period, the overall numbers and share of those in part-time employment has reduced. Much of the recent job growth is in full-time employment, with many of those in part-time employment transitioning to full-time employment. The CSO data indicates that part-time work is increasingly a choice. As of Quarter 2 this year, four-out-of-five working part-time were doing so by choice, an increase three-out-of-four 12 months ago.
The Government target for this year is 45,000 new jobs. My Department is actively pursuing this objective through the implementation of Action Plan for Jobs 2017. I am also leading the development of the Action Plan for Jobs 2018, with the objective of securing sustainable full-employment with an additional 200,000 at work, and 135,000 of those new jobs outside Dublin, by 2020.
Competition Law
Ceisteanna (102)
Niall Collins
Ceist:102. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if she has requested the new Attorney General appointed in June 2017 to provide his advice regarding empowering the Competition and Consumer Protection Commission to issue civil fines for anti-competitive practices; and if so, his views on same. [45323/17]
Amharc ar fhreagraFreagraí scríofa
My Department obtained advice on the issue of civil fines from the Office of the Attorney General to the effect that civil fines are not provided for in Irish law for anti-competitive practices having regard to Article 38.1 of the Constitution which provides that no person shall be tried on any criminal charge save in due course of law. In that context any national legislation to introduce civil fines that would lower the burden of proof from beyond reasonable doubt to the balance of probability would pose constitutional difficulties having regard to the protection afforded in Article 38.1 of the Constitution. I have not sought further advice from the Attorney General appointed in June 2017.
On 22 March 2017, the EU Commission published a proposal for a Directive of the European Parliament and of the Council to empower the competition authorities of the Member States to be more effective enforcers and to ensure the proper functioning of the internal market. One of the Directive’s aims is to ensure that all National Competition Authorities are able to impose effective deterrent fines. The proposal is currently being debated at the Council Working Group on Competition and is also being considered by the European Parliament.
I am aware that the Law Reform Commission published an Issues Paper entitled "Regulatory Enforcement and Corporate Offences" on 27 January 2016. The Issues Paper invited views on the supervisory and enforcement powers of the State’s main financial and economic regulators (including the Competition and Consumer Protection Commission) and the issue of administrative and civil fines was raised. I understand the CCPC made a submission to the Law Reform Commission on 19 September 2017 in response to the Issues Paper. Any recommendations or proposals that may emanate from this exercise in due course will be carefully considered by my Department.
International Bodies Membership
Ceisteanna (103)
Niall Collins
Ceist:103. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if Ireland has formally applied to join CERN; the process for joining; and the timeframe for same. [45328/17]
Amharc ar fhreagraFreagraí scríofa
Following the unveiling of Budget 2018 by the Minister for Finance, Public Expenditure and Reform on the 10th October, I set out details of my department's spending plans for 2018. I announced that the increased capital allocation for innovation will enable Ireland to join the European Southern Observatory (ESO) in 2018.
Regrettably, due to the tight fiscal constraints on the budget and the heavy demands on my department's capital programme, it will not be possible progress Ireland’s membership of both CERN and the European Southern Observatory in 2018.
ESO has been prioritised over CERN because of the large, established community of astronomy researchers in Ireland. Astronomy is an active area of research in each of our universities and several of our institutes of technology. This community is well positioned to avail of the opportunities provided by ESO membership, thereby maximising the immediate benefit to Ireland. In addition, the companies in Ireland that have had great success in securing contracts from the European Space Agency are well placed to bid for ESO contracts due to the overlap between the technologies used by ESO and ESA.
Nevertheless, membership of CERN will remain on our policy agenda and my department will keep the issue under active review. I hope that we will be able to progress CERN membership in the coming years, when the fiscal situation improves.
As CERN is an inter-governmental body, the approval of both the Government and the Dáil will be required in order for Ireland to join.
Work Permits Eligibility
Ceisteanna (104)
Charlie McConalogue
Ceist:104. Deputy Charlie McConalogue asked the Tánaiste and Minister for Business, Enterprise and Innovation her views on permitting employment permits to be extended for agriculture workers from non-EEA countries as put forward by farming organisations to deal with labour shortages in some sectors. [45341/17]
Amharc ar fhreagraFreagraí scríofa
The State’s general policy is to promote the sourcing of labour and skills needs from within the workforce of the State and other EEA states.
Ireland operates an employment permits regime that:
- focuses on key sectors and skills shortages, especially in economically strategic enterprises with potential for jobs growth,
- adheres to the principle of community preference and avoids disrupting the labour market or reducing the employment opportunities for the resident population,
- ensures that employment permit holders are making a positive net contribution to the Irish economy,
- minimises the potential for abusing the employment rights of migrants, is clear and consistent and therefore attractive to migrants and employers,
- is administratively effective and efficient, has a clear legislative basis, and is sufficiently flexible to react quickly to changes in the labour market.
The permits system operates at all levels of the Irish labour market as follows:
- The highly skilled jobs segment for which special “fast-track” rules apply (e.g. family can join the permit holder immediately, permanent residency in available after two years). Occupations on the highly skilled include professional positions in medicine, ICT, sciences, finance and business.
- The ineligible jobs segment, Occupations on the ineligible list are largely but not exclusively lower skilled occupations. There is evidence that there are no labour shortages from within Ireland/EEA to fill such vacancies. Therefore, no-one is eligible to get an employment permit if they are applying for such jobs.
- Every other job in the labour market, where an employer cannot find a worker, may be eligible for an employment permit. The employer has to do a Labour Market Needs Test (i.e. advertise the job for two weeks) to see if there is anyone in the State/EEA who could do the job. If no-one suitable applies for the job, the employer is free to apply for an employment permit.
It is vital that the employment permits system is responsive to changes in economic circumstances and labour market conditions. Therefore the highly skilled and ineligible occupation lists are reviewed twice annually. Any changes to access to the Irish labour market for specific occupations via the employment permits system are made on the basis of research undertaken by the Expert Group on Future Skills Needs (EGFSN) in tandem with a consultation process, as part of a package of measures to meet those skills needs.
An occupation may be considered for removal from the ineligible list where:
- There are no suitable Irish/EEA nationals available to undertake the work;
- Development opportunities for Irish/EEA nationals are not undermined;
- Genuine skills shortage exists and that it is not a recruitment or retention problem;
- The Government education, training, employment and economic development policies are supported;
- The skill shortage exists across the occupation, despite attempts by industry to train and attract Irish/EEA nationals to available jobs.
Currently all agricultural workers are included on the ineligible list of employments. While some tightness in the labour market for these occupations is being reported by the sector it is clear that issues emerging relate to the ability of the sector to attract and retain employees. Removing such workers from the ineligible list would not resolve the structural issues which have resulted in the current labour deficit. Investment in education, training and skills development are key requirements in the agricultural sector.
In the interest of meeting the sector's labour and skills needs in the longer term, my officials are meeting with officials in the Department of Agriculture, Food and the Marine to explore how that Department can achieve an integrated response to meeting the demand.
Tax Agreements
Ceisteanna (105)
Niall Collins
Ceist:105. Deputy Niall Collins asked the Minister for Finance his views on the latest European Commission reforms of the sales tax VAT system and potential unintended consequence for Ireland’s export industry. [45329/17]
Amharc ar fhreagraFreagraí scríofa
The European Commission published a series of proposals on 4 October 2017 dealing with the definitive VAT system. The definitive system will bring to an end the current transitional VAT system that has applied since the early 1990s. It deals with changing the method of taxing intra-EU business-to-business supplies of goods from taxation based in the Member State of the supplier to the Member State of the consumer – i.e. the destination principle. This complements the Modernisation of VAT on e-Commerce proposals, which focus on changing the method of charging VAT on business-to-consumer cross border supplies. This is the subject of ongoing discussion at EU level.
In the early 1990s, the goal was to charge VAT on goods in the place of origin but the political and technical conditions were not suited to such a system. Since 2011 the EU has been focusing on changing the method of taxation of cross-border EU trade so that VAT is charged on the basis of destination and not origin. The Commission published a VAT Action Plan in 2016 that set a path towards the modernisation of VAT in this context, and the proposals published on 4 October are part of this Plan.
The definitive VAT System proposals make core changes to the EU VAT Directive to introduce a definitive system based on the destination principle. Further proposals will be published in 2018 dealing with technical details around this change. I would point out that the ethos behind the change to the destination based VAT system is to modernise VAT for the digital economy and to simplify VAT for both businesses and tax authorities, as well as minimising VAT administration costs for businesses selling across a number of EU Member States.
None of these proposals deal with the export of goods and services outside the EU and will have no impact on Irish businesses exporting outside the EU. On the contrary the Modernisation of VAT on e-Commerce proposals, currently subject to discussions at EU level, aim to address the imbalance where goods are imported into the EU free of VAT. The recently published definitive VAT regime proposals will be subject to discussion and negotiation at EU level in the near future. Changes to the EU VAT Directive can only be made on the basis of unanimity and Ireland will scrutinise all proposals to ensure that there are no unintended consequences for Irish exporters.
Tax Code
Ceisteanna (106)
Willie O'Dea
Ceist:106. Deputy Willie O'Dea asked the Minister for Finance the reason pensioners who were formerly civil servants, gardaí and members of the Defence Forces are excluded from NHR tax exemption in Portugal; and if he will make a statement on the matter. [45111/17]
Amharc ar fhreagraFreagraí scríofa
As I informed the Deputy in my reply to his similar question of 5th October 2017 (No.42270/17), I am advised by Revenue that it is not their practice to comment on the application of the provisions of the national law of other countries.
I am also advised that if the Deputy supplies identifying detail in respect of the person and specifies the source of income concerned, or the individual contacts Revenue with details of his circumstances and the income concerned, Revenue will advise in relation to the application of the Ireland-Portugal Double Taxation Convention to that income.
EU Budget Contribution
Ceisteanna (107)
Róisín Shortall
Ceist:107. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 126 of 17 October 2017, the precise formula used in the calculation of the contribution to the EU budget; and if the nominal GDP growth rate for 2015, that is, 26% is factored into this. [45136/17]
Amharc ar fhreagraFreagraí scríofa
Further to the PQ of 17 October on the calculation of Ireland’s EU budget contributions; Member State contributions to the EU Budget are calculated by the EU Commission in line with the provisions outlined in Own Resource Decision (ORD) Regulation (2014/335) which was ratified by all Member States in 2016. The ORD lays down three sources of EU revenue, or ‘Own Resources’:
- customs duties, including those on agricultural products, in respect of trade with non-member countries and levies on sugar production within the Union. These are collectively known as “Traditional Own Resources” (TOR).
- contributions based on VAT: The VAT base is calculated on the basis of a notional harmonised rate and reflects finally taxed expenditure across the EU. The base is capped at 50% of the member state’s GNI. A call-up rate is applied to produce a member states’ VAT-based contribution. This is currently 0.3%, except where otherwise noted in the Own Resources Decision.
- GNI-based contributions: the amount due is calculated by taking the same proportion of each Member State’s GNI. As the EU is not allowed to borrow, revenue must equal expenditure. The GNI-based resource is the Budget-balancing item; it covers the difference between total expenditure in the Budget and the revenue from the other resources, subject to the overall Own Resources ceiling.
Further details on the Regulation can be found at the following link: ORD 2014/335
The revisions to Ireland’s Gross National Income (GNI) for 2015, as published by the Central Statistics Office (CSO) in July 2016, have been factored into Ireland's EU budget contributions. To allow for the upward adjustment in the GNI figure for 2015, Ireland had to make an additional payment to the EU. This was made in June 2017.
Tracker Mortgage Examination
Ceisteanna (108)
Clare Daly
Ceist:108. Deputy Clare Daly asked the Minister for Finance his views on the case of a person (details supplied); the steps he will take to ensure that banks do not apply higher interest rates than they should to tracker mortgages after mortgage holders have been through a tracker mortgage redress scheme. [45144/17]
Amharc ar fhreagraFreagraí scríofa
As the Deputy is aware, the Central Bank is conducting an industry wide examination of tracker mortgage related issues. As part of this process, the Central Bank has set out a framework for conducting the examination and the principles for lenders when issues are identified for redress. The Central Bank also requires lenders to provide robust independent assurance work be undertaken by an external independent party in relation to all aspects of the examination. While the Central Bank does not have a statutory role in investigating individual consumer complaints, it nevertheless indicates that information on specific cases which are brought to its attention will be used to inform it of its work on the tracker mortgage examination.
It should be noted, however, that the tracker mortgage examination framework also provides for the establishment of an independent appeals process and that any impacted borrower who is not happy with any aspect of the redress and compensation received, including the margin that they receive from their lender, can make an appeal to the Appeals Panels. While the Central Bank expects lenders’ reviews to deliver fair outcomes for customers, the Bank believes that the appeals process is a very important part of the overall framework to ensure that there is an independent and transparent process in place, for any impacted customer. It is important also to note that should a customer be unhappy with the outcome of the Appeals Panel's review, the customer still retains the right to take their case to the Financial Services Ombudsman without risk to any initial offer of redress and compensation that they may have received from their lender. Customers also retain the right to initiate legal proceedings before the courts should they so wish.
Tax Avoidance
Ceisteanna (109)
Pearse Doherty
Ceist:109. Deputy Pearse Doherty asked the Minister for Finance his plans to improve the rules on mandatory tax avoidance disclosure similar to the disclosure of tax avoidance scheme rules introduced by the British tax authorities which have allowed them to tackle promoters of aggressive tax structures. [45158/17]
Amharc ar fhreagraFreagraí scríofa
The promotion and use of tax avoidance schemes, which are based in the main on transactions largely devoid of any commercial rationale, is an issue and challenge facing all tax administrations. A comprehensive general anti-avoidance rule was introduced by the Oireachtas as far back as 1989. The Deputy may be aware there is a requirement in the recent EU Anti-Tax Avoidance Directive for Member States to introduce a general anti-avoidance rule in their domestic law to take effect from 1 January 2019. This State has had a general anti-avoidance rule for nearly 30 years.
In order to assist Revenue in detecting avoidance schemes a mandatory disclosure scheme was introduced by the Finance Act 2010. The policy objectives underlying the introduction of the disclosure scheme were:
- to provide early information to Revenue about the schemes and how they purport to work,
- to provide information of the persons who availed of the scheme, and
- to afford Revenue an opportunity to recommend legislative change where it was considered necessary.
I have previously advised the Deputy of the number and the nature of the schemes disclosed to Revenue to date in my answer to PQ 39337/17. In general, the primary responsibility for making a disclosure lies with the promoter of the scheme. Where a promoter proposes a transaction where a tax advantage is expected to accrue, the main benefit or one of the main benefits of the transaction is obtaining a tax advantage, and the transaction falls with a specified description then, that transaction must be disclosed. A comprehensive guidance note on the operation of the provision has been prepared by Revenue and is available for review on their website at www.revenue.ie
In relation to the UK disclosure scheme I should advise the Deputy that, having regard to the broad similarities of the tax regimes in both jurisdictions, the mandatory disclosure scheme introduced by the Oireachtas in 2010 was closely aligned to the earlier Disclosure of Tax Avoidance Schemes (DOTAS) adopted by the UK. A review of the mandatory disclosure regime was carried out by Revenue in 2014 and changes were made to the scheme in Finance Act 2014 and by subsequent regulations which provided further clarity and strengthened the provisions.
Revenue, at present, is not requesting any amendments to the mandatory disclosure regime and therefore I am not proposing any changes for the moment. However, I am advised that the regime is kept under constant review by Revenue and developments in other jurisdictions are closely monitored. The promotion and use of egregious tax avoidance schemes is a modern day scourge and I will not hesitate to legislate to defeat such schemes which have at their heart an intention to frustrate the will of this House and the promotion of unfairness in our society.
Tax Data
Ceisteanna (110, 111)
Pearse Doherty
Ceist:110. Deputy Pearse Doherty asked the Minister for Finance the detail of the €233,896,324 million of PAYE tax liability which is under appeal by quantum; the number of employees affected in increments of €20,000 to €240,000 and above €240,000, in tabular form (details supplied). [45159/17]
Amharc ar fhreagraPearse Doherty
Ceist:111. Deputy Pearse Doherty asked the Minister for Finance the number of cases in actual dispute, technical dispute and avoidance structure regarding the €233,896,324 million of PAYE tax liability which is currently under appeal according to the Revenue Commissioners in tabular form. [45160/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 110 and 111 together.
I am advised by Revenue that the number of appeals relating to the almost €234 million of PAYE tax liability is 244. The following table contains a breakdown of these appeals by monetary bands. Some of the bands have been aggregated where there are less than 10 appeals in the smaller band in line with Revenue’s practice of avoiding the risk of identifying appellants.
|
Band € |
No. of Appeals |
|
Less than 20,000 |
149 |
|
20,000 to 40,000 |
15 |
|
40,000 to 60,000 |
11 |
|
60,000 to 80,000 |
11 |
|
80,000 to 180,000 |
13 |
|
180,000 to 240,000 |
15 |
|
Over 240,000 |
30 |
|
Total |
244 |
These 244 appeals can be broken down into 110 appeals made by individual employees and directors and 134 appeals made by employers, relating to, respectively, 102 and 109 appellants. Revenue advises that data relating to the number of employees affected by an appeal made by their employer is not available. Insofar as appeals are concerned, this information is not captured by Revenue.
I am also advised by Revenue that it is not in a position to provide a breakdown of the number of cases in actual dispute, technical dispute and avoidance structure. It is assumed that ‘actual dispute’ relates to appeals involving the amount of a tax liability as distinct from involving a point of law or technical argument. While not in a position to provide a breakdown, Revenue considers that most of these appeals involve points of law or technical argument. In relation to appeals by individual employees, many of the matters being disputed relate to the availability of various tax reliefs, credits and allowances and are no different in substance from similar income tax appeals made by taxpayers who are self-employed.
Help-To-Buy Scheme Eligibility
Ceisteanna (112)
Tony McLoughlin
Ceist:112. Deputy Tony McLoughlin asked the Minister for Finance further to Parliamentary Question No. 91 of 18 October 2017, the classification of a first time buyer that is seeking to avail of the lower loan to value rate of 90% as opposed to the 80% for non first time buyers for a person that bought commercial land (agriculture) and never lived in or on it; and if he will make a statement on the matter. [45217/17]
Amharc ar fhreagraFreagraí scríofa
The Help to Buy incentive is provided for in section 477C of the Taxes Consolidation Act 1997. That section defines a first time purchaser as an individual who has not, either individually or jointly with any other person, previously purchased or built a dwelling.
As I advised the Deputy in my reply to his question on 18 October, the fact that a person has previously owned agricultural land does not in any way compromise or restrict that person's entitlement to avail of the Help to Buy scheme, provided such land does not comprise a dwelling.
In relation to the loan-to-value (LTV) ratio, Help to Buy will apply where a mortgage is taken out to purchase or build a home and where the LTV ratio is a minimum of 70%, i.e. the loan must be at least 70% of the purchase value of the property. A higher LTV ratio, such as the 90% suggested, will not present an impediment to qualification for the incentive as the 70% ratio is a minimum value only.
Revenue Commissioners Staff
Ceisteanna (113)
Pearse Doherty
Ceist:113. Deputy Pearse Doherty asked the Minister for Finance the number of staff allocated to overseeing the mandatory disclosure regime in the Revenue Commissioners in each of the years 2011 to 2016 and to date in 2017; if concerns were raised by the Revenue Commissioners regarding the capacity of this department; and if he will make a statement on the matter. [45218/17]
Amharc ar fhreagraFreagraí scríofa
The mandatory disclosure regime is administered by Revenue’s Anti-Avoidance Branches (which are part of the Large Cases Division (LCD)). All staff in these Branches, as part of their normal duties, are involved in examining possible tax avoidance schemes disclosed under the mandatory disclosure regime. In addition, anti-avoidance staff based in Revenue’s geographic Regions and legislation experts based in Revenue’s Legislation Services Divisions are consulted and take an active part in examining and analysing such disclosures to determine the appropriate response.
As mandatory disclosures are managed and worked as part of the normal duties of a range of Revenue staff it is not possible to give specific numbers for those working on mandatory disclosures over the years as requested.
No concerns have been raised by Revenue regarding its capacity to deal with mandatory disclosures.
Stamp Duty
Ceisteanna (114)
Pearse Doherty
Ceist:114. Deputy Pearse Doherty asked the Minister for Finance if a person who started to purchase a plot of agricultural land 12 months ago and has signed contracts agreeing to the sale price will be subject to the new 6% stamp duty rate on land that they agreed to buy a number of months ago were the sale to be finalised in advance of the Finance Bill 2017 being passed while the deal has yet to be finalised, in circumstances in which the person is not entitled to consanguinity relief or young farmers relief. [45219/17]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that, in the absence of consanguinity relief (i.e. for property transferred between certain relatives) or the exemption on transfers of land to young trained farmers, stamp duty on a sale of agricultural land is treated as a transfer of non-residential property. A transfer of such property is charged at 6% of the consideration for conveyances executed on or after 11 October 2017.
The transitional measures referred to in my Budget speech will come into effect on the enactment of the Finance Bill. This means that where a binding contract was in place before 11 October 2017 and the subsequent deed of conveyance or transfer is executed before 1 January 2018, stamp duty will be chargeable at the lower rate of 2%. Whether or not a contract is binding on the parties to the contract is a matter to be determined in light of the particular facts and circumstances of each case.
Anyone who is affected by this measure and makes a stamp duty return to Revenue in relation to a transfer or conveyance of agricultural land before the enactment of the Finance Bill will be liable to pay the 6% rate of stamp duty introduced from Budget night, but will be able to claim a refund of the difference between the 2% and 6% rates after the Finance Bill is enacted if the deed of transfer or conveyance has been executed before 1 January 2018. In the normal course of events, the Finance Bill is usually enacted before the end of December.
Stamp Duty
Ceisteanna (115)
Pearse Doherty
Ceist:115. Deputy Pearse Doherty asked the Minister for Finance the point at which stamp duty is levied and deemed to be liable for example, on the point of sale, signing of deeds and so on; and if he will make a statement on the matter. [45220/17]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that stamp duty is chargeable on a conveyance or transfer on sale of a property. This happens when the interest in a property is transferred to or vested in a purchaser. The stamp duty is payable to Revenue 30 days after the execution of the deed of conveyance or transfer on sale. Execution of the deed would be expected to happen at the final stage of the sale when the purchaser pays the full consideration to the seller.
Small and Medium Enterprises Supports
Ceisteanna (116)
Niall Collins
Ceist:116. Deputy Niall Collins asked the Minister for Finance the way in which the key employee engagement programme for SMEs will operate; when SMEs will be able to avail of this; if all SME business structures will be eligible to participate such as limited company partnership and sole trader; and the limit on options that can be granted tax free to qualifying employees. [45325/17]
Amharc ar fhreagraFreagraí scríofa
In Budget 2018 I introduced the Key Employee Engagement Programme (KEEP) with the objective of supporting SMEs in Ireland in competing with larger enterprises to recruit and retain key employees. Share options can provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer.
The incentive, due to commence on 1 January 2018 subject to EU approval, provides that gains realised on the exercise of a qualifying share option by employees of qualifying companies will not be subject to income tax, PRSI or USC at the date of exercise. Capital gains tax will arise on the gain on a subsequent disposal of the shares. In the absence of the KEEP incentive, such gains would be subject to income tax, USC and PRSI at the time of exercise. This can be a dis-incentive in the case of options for shares of small, unquoted companies, where no ready market may be available on which to sell some or all of the shares in order to fund the tax payable.
This provision will be available in respect of share options granted to employees during the period 1 January 2018 to 31 December 2023. The employee must work full-time for the company, with a minimum requirement of 30 hours per week. The share options must be granted at not less than market value at date of grant and must be held for a minimum period of one year before exercise (with limited exceptions) and a maximum period of ten years.
To avail of the KEEP the company must be a “qualifying company” which is a company incorporated and resident in Ireland or an Irish trading branch of an EEA resident company. The company must be unquoted (with the exception of a listing on the Enterprise Securities Market) and must be a micro, small or medium company. Sole traders or partnerships do not come within the remit of the KEEP.
In the case of KEEP share options, certain restrictions apply. For example, an employee may not hold more than 15% of the ordinary share capital of the company and the market value of all shares in respect of which qualifying share options have been granted cannot exceed €100,000 in a year; €250,000 in any 3 consecutive years; or 50% of the employee’s emoluments in the year of grant. A restriction is also placed at company level which limits the market value of issued but unexercised share options to €3,000,000.
Employment Investment Incentive Scheme
Ceisteanna (117)
Niall Collins
Ceist:117. Deputy Niall Collins asked the Minister for Finance the number of participants in the employment and investment incentive scheme in each of the years 2011 to 2016 and to date in 2017, in tabular form. [45326/17]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that a report on the Employment and Investment Incentive (EII) scheme is available on the Revenue website at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/eii.aspx .
This report provides EII statistics regarding qualifying companies, investors, investment amounts and also Exchequer costs. The report covers the years from 2012, the year in which the scheme was first introduced, to 2016, the latest year for which information is available.
The following table sets out the number of qualifying companies and investors availing of the measure for each year of its operation for which figures are available:
|
Year |
No. of Qualifying Companies |
No. of Investors |
|
2012 |
78 |
352 |
|
2013 |
190 |
1,028 |
|
2014 |
239 |
1,395 |
|
2015 |
279 |
1,530 |
|
2016 |
261 |
1,768 |
Tax Credits
Ceisteanna (118)
Niall Collins
Ceist:118. Deputy Niall Collins asked the Minister for Finance the number of companies availing of the research and development tax credit in each of the years 2011 to 2016 and to date in 2017, by firm size, in tabular form. [45327/17]
Amharc ar fhreagraFreagraí scríofa
The Research and Development (R&D) Tax Credit is a very important feature of the Irish Corporation Tax system. The central purpose of the R&D tax credit is to encourage companies to undertake high-value added R&D activity in Ireland, thereby supporting jobs and investment here. A review of the R&D Tax Credit was undertaken by my Department prior to Budget 2016. The review concluded that the tax credit provides a reasonable level of additionality and that the rationale for the tax credit is not in question. Firms clearly respond to it by increasing their R&D expenditure.
I am advised by Revenue that information in respect of the annual tax cost of the research and development tax credit for years up to 2015, the latest year available, is at the following link
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
I am advised by the Revenue Commissioners that the information requested by the Deputy is available up to 2015. The information requested in terms of companies availing of the scheme, and of firm size is as shown in the following table. The number of companies shown below availing of the credit includes companies offsetting their credit against their in-year profits and those with refundable tax credits in the year.
Small companies are defined as those employing fewer than 50 people. Medium companies are defined as employing at least 50 people and fewer than 250 people. Large companies are defined as those employing 250 people or more.
|
Year |
No. of companies availing of the R&D Tax Credit |
Small |
Medium |
Large |
|
2011 |
1,409 |
1,002 |
292 |
115 |
|
2012 |
1,543 |
1,103 |
313 |
127 |
|
2013 |
1,576 |
1,133 |
326 |
117 |
|
2014 |
1,570 |
1,091 |
341 |
138 |
|
2015 |
1,535 |
1,062 |
330 |
143 |
Tax Reliefs Costs
Ceisteanna (119)
Charlie McConalogue
Ceist:119. Deputy Charlie McConalogue asked the Minister for Finance the estimated cost to the Exchequer of a proposal (details supplied) for the key employee engagement programme in order to attract and retain employees in farm enterprises. [45336/17]
Amharc ar fhreagraFreagraí scríofa
In Budget 2018 I introduced the Key Employee Engagement Programme with the objective of supporting SMEs in Ireland in competing with larger companies to recruit and retain key employees. Share options can provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer.
The Deputy has requested a costing regarding a proposal to extend the KEEP relief to all SME business structures including limited companies, partnerships and sole trades; to extend the definition of share options to include tangible stock of a business, such as livestock; and to allow family member employees in farm enterprises to qualify for the relief.
Farm enterprises which are SME companies as defined in the KEEP legislation may qualify for the relief, subject to meeting the other criteria. Businesses structured as partnerships and sole trades have significantly different legal forms than limited companies and would not have the ability to issue a 'share option' comparable to an option over the ordinary shares in a limited company. Similarly, tangible stock, such as livestock, is materially different to company shares. Therefore it is not possible to include partnerships or sole trades within the scope of the KEEP relief or to treat an option over livestock in a similar matter to an option over company shares, and as a result a potential cost for extending KEEP in such a manner cannot be estimated.
With regard to family employees, there is an anti-avoidance provision in the KEEP legislation which provides that the relief cannot be claimed where the employee, together with any "connected persons", controls more than 15% of the ordinary share capital of the company. The definition of connected person includes close family members, so in practice it is unlikely that the KEEP relief would be available to family members of the business owner (assuming he/she holds more than 15% of the company), regardless of whether it is a farming or non-farming business.