Written Answers Nos. 57-61
57. Deputy Pearse Doherty asked the Minister for Finance the previous employment record that staff at head of division and head of function level in the Central Bank held at Irish financial institutions, in tabular form; the guidelines in place to prevent conflicts of interest in dealing with a former employer; and if he will make a statement on the matter. [2211/18]
Amharc ar fhreagraIt was not possible for the Central Bank of Ireland to provide the information sought in the time available and, therefore, I will make arrangements to provide the information in line with Standing Orders.
58. Deputy Pearse Doherty asked the Minister for Finance the procedures in place regarding cross-jurisdictional reporting and sharing of information by financial institutions on matters of fraud; and if he will make a statement on the matter. [2212/18]
Amharc ar fhreagraPrimary responsibility for investigation of fraud, and consequent sharing of information, rests with An Garda Siochána, and is therefore a matter for my colleague, the Minister for Justice and Equality.
The Revenue Commissioners and the Office of the Director of Corporate Enforcement (ODCE) play a role in cross-jurisdictional information sharing in matters of fraud by financial institutions, as outlined below.
In terms of information sharing related to tax fraud by financial institutions, the Revenue Commissioners share information in a number of ways. Exchange of information (EOI) is the cross-border sharing of taxpayer information by tax administrations. A tax administration may ask for specific information on a particular case from another jurisdiction. When this happens, it is known as EOI on request. Alternatively, a jurisdiction may freely offer information it believes to be of interest to another tax authority. This voluntary sharing is known as spontaneous EOI. Automatic Exchange of Information (AEOI) is the exchange of information between countries without having to request it. AEOI exists to reduce global tax evasion.
Ireland has implemented the Common Reporting Standard (CRS) which provides for the automatic exchange of financial account information between tax authorities. The first information exchange began in September 2017.
Financial institutions, for the purpose of the Foreign Account Tax Compliance Act (FATCA) and CRS, include banks, investment traders, fund management companies and trust managers. Credit Unions are considered financial institutions for CRS but not for FATCA.
Revenue has published a detailed guide to exchange of information, available at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-35/35-01-01a.pdf.
The Companies Act, 2014 includes provisions for the sharing of information in specified circumstances with appropriate investigative and supervisory authorities both domestically and in other jurisdictions. This includes, for example, the power to share information with the Revenue Commissioners and the Central Bank. The ODCE has in place a number of Memoranda of Understanding with relevant bodies in Ireland which outline the arrangements for information sharing and other cooperation.
Further queries in relation to the ODCE or the Companies Act should be directed to my colleague, the Minister for Business, Enterprise and Innovation.
59. Deputy Pearse Doherty asked the Minister for Finance the number, nature and results of investigations carried out by the Central Bank into the mis-selling of hedge fund products by financial institutions here; and if he will make a statement on the matter. [2213/18]
Amharc ar fhreagraI am informed by the Central Bank that, to date, it has not undertaken an investigation into the sale of hedge fund products by financial institutions in the State.
As per Central Bank rules, Hedge Funds authorised in Ireland (known as “Qualifying Investor Alternative Investment Funds” – QIAIFs) can only accept subscriptions from investors who:
- Are professional clients as defined in MiFID; or
- Are investors who have the appropriate expertise, experience and knowledge to understand the proposed investment.
QIAIFs shall not accept subscriptions of less than €100,000 from individual investors. An exemption from the minimum subscription requirement of €100,000 is granted to certain categories of investors as set out in the Central Bank's AIF Rulebook (available at the following link: www.centralbank.ie/docs/default-source/Regulation/industry-market-sectors/funds-service-providers/aifm/AIFM/aif-rulebook-march-2017-(002).pdf). The QIAIF must ensure that such investors self-certify that they are availing of the exemption provided for and that they are aware that the QIAIF is normally marketed solely to qualifying investors who are subject to a minimum subscription of €100,000.
When selling financial services products, regulated entities are subject to the conduct of business rules as set out in the European Union (Markets in Financial Instruments) Regulations 2017 (MiFID II), or the Consumer Protection Code 2012, where appropriate.
60. Deputy Michael McGrath asked the Minister for Finance the year one and full-year cost for every 1% reduction in capital gains tax and capital acquisitions tax, respectively; and if he will make a statement on the matter. [2254/18]
Amharc ar fhreagraI am advised by Revenue that the estimated cost of a 1 per cent reduction in Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) is as shown in the ready reckoner published at www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.
These show a full year cost of €14m for every 1% reduction in CAT and €34m for the same reduction in the CGT. The first year cost is estimated at €12 million for CAT and €31 million for CGT, both assuming the reduced rate is introduced at the start of the tax year. It should be noted that these costs assume no behavioural change.
61. Deputy John Lahart asked the Minister for Finance the figures available that measure the level of credit card debt to household income; if so, if he will provide same for each of the years 2011 to 2017, in tabular form; and if he will make a statement on the matter. [2274/18]
Amharc ar fhreagraThe Central Bank has been able to provide me with the following available data on new spending during the year on personal credit cards:
2015: €8.2 billion
2016: €8.3 billion
2017 to Nov: €7.8 billion
I understand that further information on credit card numbers, sector of spend, and debit card spend and card numbers are available from the Credit and Banking Statistics, Credit and Debit card statistics webpage. Data are available in this format, on a monthly basis, from 2015 onwards.
I should also point out that the Consumer Protection Code 2012 requires that “A regulated entity must gather and record sufficient information from the consumer prior to offering, recommending, arranging or providing a product or service appropriate to that consumer.” This includes the consumer's income where relevant.
As it happens, this question is fortuitously timed because next week will see the launch of a public awareness campaign by my Department, aimed specifically at raising awareness and encouraging people to consider switching credit cards. The Deputy may recall the first phase of the switching campaign which also targeted current accounts and mortgages.
The campaign will make it clear to consumers that switching credit card is easy and encourage them to visit the www.switchyourbank.ie website for further information and comparisons of credit cards available in the Irish market. This whole campaign is funded by contributions from AIB and PTSB as a condition of the approval of their restructuring plans by the EU Commission and there is no cost to the taxpayer.
