Paul Kehoe
Ceist:130. Deputy Paul Kehoe asked the Minister for Finance if a person is liable to full charge (details supplied); and if he will make a statement on the matter. [48682/17]
Amharc ar fhreagraStamp Duty
Ceisteanna (130)
Freagraí scríofa
I am advised by Revenue that transfers of farmland between certain blood relatives qualify for a reduced rate of stamp duty of 1% provided certain conditions are met. This is referred to as consanguinity relief. This measure currently applies where the person transferring the land is less than 67 years of age.
In Finance Bill 2017 I have introduced measures to extend consanguinity relief for a further three years until 31 December 2020 and also to remove the age limit of 67 years for the person transferring the farmland. Both of these measures will come into effect on the enactment of the Finance Bill which I expect to happen around the end of December.
As the extension to the age limit will not come into effect until the enactment of the Finance Bill, any transfer of property prior to that date where the person transferring the land is over the current age limit will not qualify for consanguinity relief and the transfer will therefore be subject to stamp duty at a rate of 6%.
Financial Services Regulation
Ceisteanna (131)
Michael McGrath
Ceist:131. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 266 of 7 November 2017 and without disclosing any information pertaining to any individual institution, if the Central Bank has received complaints or carried out an investigation into business loans in which the person is of the view that they were wrongly removed from an interest rate linked to EURIBOR or were denied the option of reverting to a rate linked to EURIBOR following a period on a fixed rate; and if he will make a statement on the matter. [48688/17]
Amharc ar fhreagraFreagraí scríofa
I have been informed by the Central Bank due to the confidentiality requirements imposed by domestic and EU legislation, which provides for confidentiality of information relating to ongoing supervision and limits disclosure to circumstances specifically provided for in Section 33AK of the Central Bank Act 1942, the Central Bank cannot comment on individual interactions with regulated entities or release supervisory information regarding any regulated entity.
Small and Medium-Sized Enterprises who are customers of lenders are protected under the SME Regulations, including the right to make a complaint.
On 18 December 2015, the Central Bank published the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 (the Regulations). A small number of technical amendments were made to the Regulations in June 2016, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) (Amendment) Regulations 2016 were published. These Regulations came into effect and apply to regulated entities, except credit unions, since 1 July 2016. For credit unions the Regulations came into effect on 1 January 2017. The Regulations replaced the existing Code of Conduct for Business Lending to Small and Medium Enterprises 2012.
The Regulations state that in good time before a borrower is bound by a credit facility agreement, the regulated entity shall provide the borrower with information in a durable medium including : “terms and conditions applying to the credit facility agreement together with the relevant fees, charges and interest rates which will apply to the credit facility agreement including an explanation of the basis for calculation of the interest charge”.
In addition, regulated entities must, at least once a year, provide a borrower with a statement which must, where applicable, include the interest rates charged. Where the enterprise is a ‘micro and small enterprise’, a regulated entity must also inform a borrower of any change in the interest rate and the notice must inform the borrower -
(a) of the date of the change to the interest rate,
(b) of the payment amount after the entry into force of the new interest rate and, if the number or frequency of the payments changes, particulars of the changes,
(c) that the borrower should contact the regulated entity if he or she anticipates difficulties meeting the change in repayments, and
(d) where the change in interest rate arises as a result of a change in the interest margin on a credit facility, of the details of that change.
Where the enterprise is a medium-sized enterprise, the regulated entity must inform a borrower of -
(a) any change in the interest rate where the change in interest rate arises as a result of a change in the interest margin on a credit facility, and
(b) the details of that change.
The Regulations also set out requirements which must be complied with by regulated entities in relation to offering borrowers the option of a review meeting on an annual basis, to include a review of credit facility agreements.
If a consumer is concerned or unhappy with how they have been dealt with by a firm regulated by the Central Bank, there are clear processes in place in the Regulation for handling complaints. The Central Bank encourages consumers who are dissatisfied with their experience of financial products or services to ensure that they communicate their complaint directly to their financial services provider. This ensures that their complaint receives the protections provided by the Regulations.
Tax Treaties
Ceisteanna (132)
Pearse Doherty
Ceist:132. Deputy Pearse Doherty asked the Minister for Finance his plans to commission a report on the way in which the State's tax policies and treaties affect developing countries; and if he will make a statement on the matter. [48708/17]
Amharc ar fhreagraFreagraí scríofa
Ireland, in accordance with our International Tax Strategy, is committed to engaging constructively and respectfully with developing countries in relation to tax matters, and to supporting such countries in raising domestic tax revenues in ways that are more efficient, that promote good governance and equitable development, and that can allow them to eventually exit from a dependence on official development assistance.
As part of this commitment the Department of Finance commissioned the International Bureau for Fiscal Documentation to undertake a spillover analysis to look at the possible effects of the Irish tax system on developing economies. Ireland was only the second country in the world to undertake such an analysis. The Spillover Analysis was published on Budget Day in October 2015.
The statistical analysis identified very limited flows of capital and trade between Ireland and developing countries, indicating a small likelihood of spillovers from the Irish tax system. Limited flows make it difficult to draw firm conclusions, but there are some indications that Ireland’s treaties with developing countries may have the potential to increase trade flows, possibly in particular in trade of differentiated goods where treaty provisions can enhance the alignment of tax rules.
The analysis of Ireland’s double tax agreement network looked at a range of treaty provisions and compared Ireland’s treaties to other treaties concluded by those developing countries. The analysis was broadly positive in respect of Ireland’s treaty network with developing countries. Some points of concern in relation to two older treaties were noted, but new treaties with these countries have already been agreed and ratified.
The review of domestic tax legislation examined provisions relevant to multi-national trade such as withholding taxes, and the influence of multi-lateral agreements such as EU Directives on these provisions. The outcomes of this analysis were again broadly positive, and it also noted the work ongoing internationally to update the anti-abuse provisions in multi-lateral agreements.
While there is a regular review of Ireland’s International Tax Strategy, there are no immediate plans to repeat the spillover analysis.
It should also be noted that earlier this year, Ireland signed up to the Addis Tax Initiative which commits us to doubling our aid spending on tax and development initiatives by 2020.
Code of Conduct on Mortgage Arrears
Ceisteanna (133)
Pearse Doherty
Ceist:133. Deputy Pearse Doherty asked the Minister for Finance his views and those of the Central Bank on whether the policy of a bank (details supplied) of charging an extra 1 percentage point interest rate on all restructured tracker mortgages is within the spirit and letter of the code of conduct on mortgage arrears; if this issue has been raised with him or the Central Bank; and if he will make a statement on the matter. [48709/17]
Amharc ar fhreagraFreagraí scríofa
I can confirm for the Deputy that the matter referred to has not been raised with me.
I would remind the Deputy, however, that although the State has a 14% minority shareholding in BOI, I in my role as the Minister for Finance, have no direct function in the relationship between the bank and its customers. Decisions taken by the bank in this regard are matters for the board and management of the institution. The Minister for Finance must ensure that the bank is run on a commercial, cost effective and independent basis to protect the value of the bank as an asset to the State. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and the bank. This Framework was published on 30 March 2012 and is available at: http://www.finance.gov.ie/sites/default/files/Bank-of-Ireland1.pdf.
Notwithstanding this, it is imperative that the bank is fully compliant with all regulatory requirements, including CCMA and measures put in place for consumer protection. I note, in this regard, the following reply which the Central Bank has provided in response to the Deputy's question:
“The Central Bank’s Code of Conduct on Mortgage Arrears 2013 (CCMA) sets out how mortgage lenders must treat borrowers in or facing mortgage arrears. The CCMA applies to the mortgage loan of a borrower which is secured by his/her primary residence. The CCMA contains specific protections in respect of tracker mortgages. A lender cannot require a borrower to change from an existing tracker mortgage to another mortgage type, as part of any alternative repayment arrangement offered to the borrower, except in specific circumstances.
“If the lender has considered the available alternative repayment options and concluded that none of the options that would allow the borrower to retain his or her tracker interest rate are appropriate and sustainable for the borrower’s individual circumstances, the lender may offer the borrower an alternative repayment arrangement which requires the borrower to change from an existing tracker mortgage to another mortgage type.
“This can only be done if the alternative repayment arrangement:
a) is affordable for the borrower, and
b) is a long-term sustainable solution which is consistent with Central Bank of Ireland policy on sustainability.”
Tax Code
Ceisteanna (134)
Joan Burton
Ceist:134. Deputy Joan Burton asked the Minister for Finance the date which the tax on sugar sweetened drinks will commence in April 2018. [48732/17]
Amharc ar fhreagraFreagraí scríofa
As I have said all along, it is my intention to introduce the tax on sugar-sweetened drinks at the beginning of April to align with the introduction of Soft Drinks Industry Levy in the UK, subject to State aid approval from the European Commission.
Carbon Tax Implementation
Ceisteanna (135)
Timmy Dooley
Ceist:135. Deputy Timmy Dooley asked the Minister for Finance the number of studies that his Department has commissioned or conducted into the impacts of carbon taxes. [48754/17]
Amharc ar fhreagraFreagraí scríofa
Carbon tax was introduced on a phased basis and applied to motor fuels with effect from December 2009. It was extended to non-solid fuels in 2010 and finally to solid fuels in 2013 and 2014. As with all taxes it is reviewed on an ongoing basis in the context of the Tax Strategy Group deliberations on annual budget options.
In addition to such reviews, pursuant to a commitment in the National Mitigation Plan, my Department is engaged in a joint research initiative with the ESRI to examine the social and economic implications arising from changes in the rate of carbon tax. It is expected that this analysis will inform budgetary decisions on the future direction of policy in this area.
Brexit Issues
Ceisteanna (136)
Stephen Donnelly
Ceist:136. Deputy Stephen S. Donnelly asked the Minister for Finance the preparations made in his Department in the event of no agreement being reached between the United Kingdom and the European Union on the terms of the UK's exit from the EU; if such preparations involve the drawing up of detailed and specific contingency plans in the event of a hard Brexit and a trade regime based on WTO tariffs; and if he will make a statement on the matter. [48777/17]
Amharc ar fhreagraFreagraí scríofa
As Minister for Foreign Affairs and Trade with special responsibility for Brexit, Minister Coveney has responsibility for coordinating the whole-of-Government response to Brexit.
Work at Cabinet level is being prepared through cross-Departmental coordination structures. These represent a frequent and active channel through which all relevant Departments are providing their research, analysis and overall policy input to the Government’s wider response to Brexit, including its priorities for the ongoing Article 50 negotiations between the EU and the UK.
As the outcome of the negotiations is not yet known, an important focus of the planning and preparation being undertaken through these structures is on deepening the Government’s analysis and understanding of the exact consequences of a range of different possible scenarios. This represents an intensification of efforts to build on the Government‘s contingency planning.
Department of Finance contingency work is ongoing and continues to examine all possible scenarios and challenges, and is a key input into the whole of Government approach. The Department has been assessing and preparing for the impact of Brexit since well before the UK referendum in June 2016, with this work now intensified. The Department's macro-economic forecasts have been updated on a number of occasions in order to take into account the economic impacts of Brexit. In addition, the Department has been to the fore in producing and funding a number of Brexit-related studies, both before and since the UK's referendum decision, including:
- :'Scoping the Possible Economic Implications of Brexit on Ireland' – Scoping study of scenarios for the future relationship between the UK and the EU. Published under the Department of Finance-ESRI research programme in November 2015;
- ‘An Exposure Analysis of Sectors of the Irish Economy’. An in-depth analysis of the possible sectoral and regional impacts of Brexit arising from Ireland's trade relationship with the UK, published by Department of Finance October 2016 (Updated March 2017);
- 'Modelling the Medium to Long Term Potential Macroeconomic Impact of Brexit on Ireland' - Published under the Department of Finance-ESRI research programme in November 2016, which modelled the medium to long term macroeconomic impact of Brexit under a number of scenarios, including a hard Brexit whereby trade between the EU and UK reverts to WTO tariffs, and;
- ‘Trade Exposures of Sectors of the Irish Economy in a European Context’ – An analysis of trade exposure to the UK in comparison to other EU Member States, published by Department of Finance September 2017.
It is clear from the Department's own published research that the potential impact on the Irish economy is significant. The medium to long term economic impacts of a ‘hard Brexit’ with reversion to the WTO trade rules are set out in the November 2016 study referenced above. Looking at the effect ten years after a UK exit, a hard Brexit scenario results in the level of GDP being almost 4% below what it otherwise might have been in a no Brexit scenario.
The best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to prudently manage the public finances in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds.
The Government has taken a number of important steps to prepare our economy for the challenges of Brexit, including in Budgets 2017 and 2018, the Action Plan for Jobs, our Trade and Investment Strategy and the preparation of a new 10-year Capital Plan. On the fiscal side, the Government has continued its policy focus of enhancing the resilience of our public finances to any Brexit-related shock. Specifically, it is projected that Ireland will achieve its medium-term budgetary objective of a balanced budget next year. Linked to this, over the forecast horizon, it is projected that the General Government Debt-to-GDP ratio will continue on a downward trajectory, reaching the Stability and Growth Pact (SGP) 60 per cent threshold in the early part of the next decade and continuing to improve thereafter. Whilst not complacent to potential challenges, including our currently elevated debt level, these developments will help provide fiscal capacity in the event of Brexit. Complementing this, Budget 2018 further established the ‘Rainy Day Fund’, which provides a further counter-cyclical buffer, and represents an important measure to strengthen the shock absorption capacity of the national finances to such external risks.
Budget 2018 also announced further measures to prepare Ireland’s economy for the significant challenges ahead. These measures include: a doubling of capital investment between 2015 to 2021 - boosting the growth potential of the economy; improving the competitiveness of our personal tax system - through income tax reform; introducing a Key Employment Engagement Programme (KEEP) – a new incentive to attract key employees; a new €300 million Loan Guarantee Scheme for Brexit-impacted business and a complementary €25 million Agriculture Brexit Loan Scheme – targeted at enhancing the competitiveness of the businesses most exposed to Brexit; the retention of the 9% VAT rate in the hospitality sector – to reduce the impact of currency volatility in the wake of the UK’s decision; and a the doubling of additional Brexit-related staff in state agencies.
The Department of Finance will continue to monitor the economic impacts of Brexit, to carry out relevant analysis and contingency planning and to frame budgetary policy advice in this context.
Departmental Staff Training
Ceisteanna (137)
Catherine Murphy
Ceist:137. Deputy Catherine Murphy asked the Minister for Finance the cost of providing external coaching and-or training services for staff development in his Department over the past five years and to date in 2017, by cost per year, in tabular form; the company that delivered the training courses; and if he will make a statement on the matter. [48806/17]
Amharc ar fhreagraFreagraí scríofa
Due to a clarification sought, the Department has been unable to complete this response in the timeframe required. The Department will write to the Deputy within 10 days with the information requested by her.
Property Tax Exemptions
Ceisteanna (138)
Noel Rock
Ceist:138. Deputy Noel Rock asked the Minister for Finance his plans to introduce an exemption for old age pensioners for the payment of local property tax; and if he will make a statement on the matter. [48817/17]
Amharc ar fhreagraFreagraí scríofa
The 2012 inter-Departmental Group which considered the structures and modalities of a property tax that a universal liability to the Local Property Tax (LPT) recommended that it should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. While there is no specific exemption from the requirement to pay LPT for pensioners under the Finance (Local Property Tax) Act 2012 (as amended), such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.
The inter-departmental Group considered the provision of deferrals for households unable to pay the tax or where a payment requirement would cause hardship. As a general principle, eligibility for deferral should be based on gross income. Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) accordingly provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds. These deferral arrangements also take account of mortgage interest payments made by the property owner.
The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.
Following his 2015 review of LPT, Dr Don Thornhill recommended that the deferral options should continue to apply and that the relevant income thresholds be revised periodically in line with changes in the Consumer Price Index (CPI). Dr Thornhill also recommended that for owner-occupiers aged 80 years or over and also for those with stated certified long term illnesses and disabilities who are living alone, that consideration be given to raising the eligible income limit for deferrals to €20,000. My Department will be considering issues relating to the implementation of this and other recommendations made by Dr Thornhill in due course.
I have no current plans to introduce an exemption along the lines proposed by the deputy.
Mortgage Interest Relief Data
Ceisteanna (139)
Catherine Murphy
Ceist:139. Deputy Catherine Murphy asked the Minister for Finance the rationale for the change in mortgage interest relief that reduces the amount of relief on a sliding scale to the year 2021 by 25% per year; his plans to monitor the effect this reduction will have on qualifying mortgage holders availing of the relief; and if he will make a statement on the matter. [48824/17]
Amharc ar fhreagraFreagraí scríofa
The provision introduced in Finance Bill 2017 will extend Mortgage Interest Relief up to and including the year 2020 for the remaining recipients. This measure extends the relief, which would otherwise have ceased completely at the end of 2017, to provide for 75% of the current relief to continue into 2018, 50% of the current relief into 2019 and 25% of the current relief into 2020.
The process of phasing out Mortgage Interest Relief for homeowners has been under way since 2009. Relief has expired for qualifying mortgages taken out prior to 2004 and the relief was abolished for new borrowings taken out after 31 December 2012. Therefore only qualifying borrowings taken out between 2004 and 2012 remain in receipt of the relief.
I am aware of the financial pressures that individuals continue to face and of the fact that, without any action in this Finance Bill, the remaining recipients MIR would have faced a ‘cliff’ where their relief would have ceased entirely in January 2018. This extension allows for a gradual tapered withdrawal of the relief, running between January of 2018 and December of 2020, to allow the remaining recipients a phased period of adjustment to the cessation of the relief. In designing the taper, my Department sought to put in place a mechanism which aimed to provide a smooth withdrawal of the relief over time as well as one which was horizontally equitable. The operation of the measure will be kept under review in conjunction with Revenue.
It must be remembered that this relief has ceased for homeowners who purchased before 2004, and that that those who purchased their homes from 2013 on have never benefited from the relief. This tapered extension of the relief strikes an appropriate balance between supporting those current recipients and also considering fairness to homeowners who have never benefited from the relief.
Departmental Contracts
Ceisteanna (140, 145)
Catherine Murphy
Ceist:140. Deputy Catherine Murphy asked the Minister for Finance the names of the companies renting a fixing and-or space on telecommunications and-or communications masts from his Department; the income received for each of the past five years for same, in tabular form; and if he will make a statement on the matter. [48840/17]
Amharc ar fhreagraCatherine Murphy
Ceist:145. Deputy Catherine Murphy asked the Minister for Finance the income received by his Department from the renting to companies of space to use and or take fixings from telecoms and or communications masts on site or on the roof of his Department, in each of the past five years, by location; and if he will make a statement on the matter. [48878/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 140 and 145 together.
The questions raised by the Deputy are matters in the first instance for the Office of Public Works and I understand that my colleague, Minister of State Kevin Moran, is providing an answer to the Deputy.
However, my Department is not aware of any telecoms or communications masts being operated from the roof of the offices occupied by my Department.
Banking Sector Regulation
Ceisteanna (141)
Pearse Doherty
Ceist:141. Deputy Pearse Doherty asked the Minister for Finance his views on the fact that the section 110 tax status availed of by qualifying companies operating as non-bank loan originators in the State could be breaking state aid rules in view of the fact that new banks or lenders which could set up non-retail lending operations here and do not meet the current qualifying criteria for section 110 status would not be afforded the same tax neutral treatment. [48849/17]
Amharc ar fhreagraFreagraí scríofa
Loan originations involve a company fronting for a foreign bank and either lending directly to larger more sophisticated borrowers, or immediately issuing newly made loans to smaller borrowers from the foreign bank. Provided the foreign bank is established in one of the countries with which we have signed a double tax agreement, then no Irish tax would have arisen on its interest income had it lent directly to the Irish borrowers.
Section 110 of the Taxes Consolidation Act 1997 sets out the Irish regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to create a tax neutral regime for securitisation and structured finance purposes. If the loan origination company is a qualifying company (within the meaning of section 110 TCA 1997) then it would be able to operate in in Ireland in a tax neutral way.
Section 110 is therefore equally available to all participators in the loan origination market provided that the qualifying conditions set out in legislation are met.
State Aid Investigations
Ceisteanna (142)
Pearse Doherty
Ceist:142. Deputy Pearse Doherty asked the Minister for Finance the implications of the European Commission's recent ruling that a company (details supplied) has to pay €250 million to Luxembourg having received illegal tax benefits from Luxembourg, in terms of state aid from Ireland to a company in view of its taxation arrangements with the State and the parallels between Luxembourg and Ireland regarding companies. [48850/17]
Amharc ar fhreagraFreagraí scríofa
The European Commission recently concluded that a tax ruling given by Luxembourg to Amazon constituted an illegal State aid amounting to approximately €250 million. This announcement is part of a wider investigation by the European Commission encompassing tax rulings in all 28 Member States which has been ongoing since 2014.
As the final Commission Decision has not yet been published, it is not possible to provide any further comment in this regard.
State Aid Investigations
Ceisteanna (143)
Pearse Doherty
Ceist:143. Deputy Pearse Doherty asked the Minister for Finance if the EU Commission has informally or formally requested information on Irish tax schemes for the purposes of state aid rules or specific tax relationships with companies; the details of such requests; and if he will make a statement on the matter. [48851/17]
Amharc ar fhreagraFreagraí scríofa
The European Commission has been gathering information from all 28 EU Member States on tax rulings since 2014 and it has examined over 1,000 rulings across EU Member States.
I understand that the European Commission issues information requests to Member States on an ongoing basis.
Ireland has always cooperated with such requests and will continue to do so. It is not appropriate for me to comment on the nature of any such requests, as such enquiries are confidential between Ireland and the Commission.
The Commission Decision in respect of Apple was published in August 2016. Aside from this, no other State aid cases have been opened against Ireland. The Government disagrees profoundly with the Commission’s State aid analysis in that case and have lodged annulment proceedings in the General Court of the European Union.
Money Laundering
Ceisteanna (144)
Pearse Doherty
Ceist:144. Deputy Pearse Doherty asked the Minister for Finance the number of letters issued in each of the years 2014 to 2016 and to date in 2017 by banks (details supplied) to political representatives, their families or associates requesting additional information concerning identification, evidence of sources of funds, evidence of residential address and certified statement of assets as per section 37 of the Criminal Justice Act, 2010; and if he will make a statement on the matter. [48855/17]
Amharc ar fhreagraFreagraí scríofa
The Deputy will understand that the information requested is not held within my Department. I have therefore requested a response to the Deputy's question from each of the banks identified by the Deputy.
AIB Response:
"AIB has comprehensive policies and procedures in place to ensure compliance with the provisions of the Criminal Justice Act, 2010 (CJA 2010). This includes with regard to its obligations to determine whether it has relationships with politically exposed persons (PEPs) and relatives and close associates thereof. AIB notes the current definition of PEP under CJA 2010 which only relates to PEP customers who are currently “residing in a place outside the State” and the proposed expanded definition to this proposed by the Fourth EU Anti-Money Laundering Directive (4AMLD) which has yet to be transposed into Irish law. AIB contacted the following numbers of non-resident PEPs in each of the years below in order to comply with the requirements of section 37 of CJA 2010:
|
Year |
Amount |
|
2014 |
48 |
|
2015 |
54 |
|
2016 |
66 |
|
2017 (YTD): |
73" |
Bank of Ireland Response:
"Under Section 37 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, Bank of Ireland has an obligation to apply enhanced customer due diligence measures to customers who are, or have become, politically exposed persons (PEPs), and to customers who are immediate family members or close associates of a PEP. The enhanced measures that Bank of Ireland is obligated to apply include a) verification of the identity and permanent residential address of the PEP, immediate family member or close associate; and b) determination of the source of funds and source of wealth of the PEP, immediate family member or close associate. The application of these enhanced customer due diligence measures is driven by specific statutory compliance requirements to which the Bank is subject. The Bank does not disclose customer specific detail, including numbers involved, arising from the requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010."
Permanent TSB Response:
" As a ‘designated person’ under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (‘the Act’), PTSB is required to undertake customer due diligence to comply with Sections 33 to 40 of the Act, including obligations in respect of any customer who is a ‘Politically Exposed Person’ as defined under Section 37 of the Act. PTSB recognises the important role the financial services sector has in the prevention of Money Laundering and Terrorist Financing and has put in place comprehensive policies and procedures to meet its obligations under the Act, including those relating to customer due diligence. PTSB may request additional information from customers to enable it to comply with any of its obligations to undertake customer due diligence. PTSB does not disclose details of its engagements with customers related to compliance with its obligations under the Act."
Question No. 145 answered with Question No. 140.
Departmental Reports
Ceisteanna (146)
Brendan Howlin
Ceist:146. Deputy Brendan Howlin asked the Minister for Finance when the report of the working group on the tax and fiscal treatment of rental accommodation providers, expected to be submitted to him in July 2017, will be published; and if he will make a statement on the matter. [48924/17]
Amharc ar fhreagraFreagraí scríofa
The Strategy for the Rental Sector, published in December 2016, contained a commitment to establish a Working Group to examine and report on the tax treatment of landlords (or rental accommodation providers), and to put forward, where appropriate, options for amendments to such treatment. The Working Group was chaired by the Department of Finance and its membership included officials from the Department of Housing, Planning and Local Government (DHPLG), Revenue and the Residential Tenancies Board (RTB).
The final report of the Working Group was published on Budget day, 10 October 2017, and it is available on the Budget 2018 website at the following link: http://www.budget.gov.ie/Budgets/2018/Documents/Report_of_the_Working_Group_on_the_Tax_and_Fiscal_Treatment_of_Landlords.pdf .
It is also available on the Department of Finance website at the following link: http://www.finance.gov.ie/wp-content/uploads/2017/10/171010-Report-of-the-Working-Group-on-theTax-and-Fiscal-Treatment-of-Landlords.pdf.
The Report of the Working Group includes 10 options for consideration for implementation in the short, medium and long-term. As I announced in my Budget speech, I have introduced one of the short-term options in this year’s Finance Bill. It is a new time-limited deduction against rental income for pre-letting expenditure incurred on a residential premises that has been vacant for a year or more. The purpose of the measure is to encourage owners of vacant residential property to bring that property into the rental market, for a minimum of four years, thereby increasing the overall supply of residential accommodation.
Tax Clearance Certificates
Ceisteanna (147)
Michael McGrath
Ceist:147. Deputy Michael McGrath asked the Minister for Finance the position regarding an application for a tax clearance certificate by the estate a person (details supplied). [48934/17]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the requested letter of clearance has issued to the agent handling the estate of the person concerned.
Central Bank of Ireland Supervision
Ceisteanna (148, 149, 150)
Jackie Cahill
Ceist:148. Deputy Jackie Cahill asked the Minister for Finance how the Central Bank regulates the Irish Credit Bureau; and if he will make a statement on the matter. [48935/17]
Amharc ar fhreagraJackie Cahill
Ceist:149. Deputy Jackie Cahill asked the Minister for Finance what checks the Central Bank has in place to ensure the accuracy and veracity of the information held on consumers by the Irish Credit Bureau; and if he will make a statement on the matter. [48936/17]
Amharc ar fhreagraJackie Cahill
Ceist:150. Deputy Jackie Cahill asked the Minister for Finance the recourse that the Central Bank has put in place for a person in cases in which the information on them held by the Irish Credit Bureau is incorrect or inaccurate; and if he will make a statement on the matter. [48937/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 148 to 150, inclusive, together.
The Irish Credit Bureau is not regulated by the Central Bank of Ireland. It is a private organisation, owned and financed by its members, and it is not under the remit of the Central Bank.