Vehicle Registration

Ceisteanna (131)

Tom Neville

Ceist:

131. Deputy Tom Neville asked the Minister for Finance if he will review the new N1 vehicle category measurement method, in view of the fact it is excluding the majority of 4x4 commercial vehicles from installing rear seats such as a make of car (details supplied); and if he will make a statement on the matter. [4745/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Section 130 of the Finance Act 1992 as amended by section 53 of the Finance Act 2017 provides that from 31 July 2018 N1 vehicles with 4 or more seats will be liable to VRT at the Category A rate except where the vehicle has a BE bodywork code. The BE bodywork code is assigned at type approval stage to N1 vehicles where the vehicle does not exceed 3,500 kilograms, and where the seating positions and the cargo area of the vehicle are not located in a single compartment.  N1 vehicles with a BE bodywork code and N1 vehicles with 3 or fewer seats will continue to benefit from the Category B rate of VRT. These provisions will ensure that the lower rate of VRT will continue to apply to vehicles that are designed principally for the carriage of goods.

These rules do not exclude the installation of rear seating in 4x4 vehicles but the VRT category may change where seating is installed.  I have no plans to review these provisions.

Corporate Tax Compliance

Ceisteanna (132, 133, 134, 135, 136, 137, 138)

Joan Burton

Ceist:

132. Deputy Joan Burton asked the Minister for Finance the number of companies that have applied for section 110 status in each of the years 2014 to 2017; and if he will make a statement on the matter. [4705/18]

Amharc ar fhreagra

Joan Burton

Ceist:

133. Deputy Joan Burton asked the Minister for Finance the number of section 110 companies that submitted tax returns for each of the years 2010 to 2016; and if he will make a statement on the matter. [4706/18]

Amharc ar fhreagra

Joan Burton

Ceist:

134. Deputy Joan Burton asked the Minister for Finance the number of audits by type, that is, single tax head, comprehensive and single issue carried out by the Revenue Commissioners on companies with section 110 status in 2016 and 2017 respectively; and if he will make a statement on the matter. [4707/18]

Amharc ar fhreagra

Joan Burton

Ceist:

135. Deputy Joan Burton asked the Minister for Finance the number and value of VAT repayments issued to section 110 companies by the Revenue Commissioners in each of the years 2015, 2016 and 2017; and if he will make a statement on the matter. [4708/18]

Amharc ar fhreagra

Joan Burton

Ceist:

136. Deputy Joan Burton asked the Minister for Finance the number of section 110 companies which were approved in each of the years 2005 to 2017 and to date in 2018, which have notified the Revenue Commissioners that they are no longer trading, in tabular form; and if he will make a statement on the matter. [4709/18]

Amharc ar fhreagra

Joan Burton

Ceist:

137. Deputy Joan Burton asked the Minister for Finance the estimated assets under management in section 110 companies in 2016 and 2017; and if he will make a statement on the matter. [4710/18]

Amharc ar fhreagra

Joan Burton

Ceist:

138. Deputy Joan Burton asked the Minister for Finance for the number of section 110 companies which owned Irish assets in each of the years 2014, 2015 and 2016; and if he will make a statement on the matter. [4711/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 132 to 138, inclusive, together.

In relation to Question No. 132 and Question No. 136, I am informed by Revenue that between 1 January 2005 and 31 December 2017 a total of 3,893 companies had notified Revenue that they were qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997. 762 of these company's corporation tax registrations had been ceased up until 3 June 2017.  The breakdown by year of notification is as follows:

Year

Number of notifications   received

Number  of tax registrations ceased*

2005

167

80

2006

257

97

2007

435

216

2008

242

115

2009

140

73

2010

137

43

2011

159

39

2012

130

15

2013

223

23

2014

344

42

2015

423

12

2016

477

6

2017    

759

1

Total

3,893

762

*Figures in relation to the number of tax registrations ceased is only available up until 3 June 2017.

In relation to Question No. 133, I am informed by the Revenue that, as for all taxpayers,  companies that have notified Revenue that they are a “qualifying company” for the purposes of section 110 Tax Consolidation Act 1997 and have a “live”  corporation tax registration are required to submit corporation tax returns within 9 months of the year-end.  As of Friday 26 January 2017, 2,545 section 110 companies have submitted tax returns for 2016.   Information relating to the years 2010 to 2015 is recorded by taxpayer rather than by taxpayer type and it is not possible to distinguish between section 110 companies and other taxpayers.  Therefore information relating to 2010 to 2015 is not readily available. 

In relation to Question No. 134, I am informed by the Revenue that the number of audits carried out on companies that have notified Revenue that they are qualifying companies for the purposes of section 110 Taxes Consolidation Act 1997 during 2016 and 2017 is as follows:

Comprehensive

3

Multi tax head

1

Single tax head

1

Total

5

As for all taxpayers, Section 110 companies are selected for compliance interventions based on the presence of various risk indicators in accordance with the “Code of Practice for Revenue Audit and other Compliance Interventions”.  The number of Aspect Queries completed on section 110 companies during the years ended 2016 and 2017 are:

 

2016

2017

Total

Aspect Query

348

203

551

In relation to Question No. 135, I am informed by Revenue that the number and value of VAT repayments issued to section 110 companies by Revenue in each of the years 2015, 2016 and 2017 is as follows:

Year

Value of VAT   Repayments

€ millions

No of Repayments

2015

3.4

892

2016

8.1

1,042

2017

10.9

1,338

In relation to Question Nos. 137 and 138, I am advised by Revenue that there  is no requirement for information regarding the value or type  of “qualifying asset” (within the meaning of section 110 Taxes Consolidation Act 1997)  held by section 110 companies to be included on the corporation tax returns submitted by taxpayers, Revenue is not in a position to provide the information requested regarding estimated assets under management or the number of section 110 companies which owned Irish assets. Irish resident section 110 companies are obliged to report quarterly data to the Central Bank under section 18 of the Central Bank Act 1971. The data reported includes details of the assets held by section 110 companies. This data can be found on the Central Bank website.

www.centralbank.ie/statistics/data-and-analysis/other-financial-sector-statistics/financial-vehicle-corporations.

Credit Union Lending

Ceisteanna (139)

Richard Boyd Barrett

Ceist:

139. Deputy Richard Boyd Barrett asked the Minister for Finance his views on requests from the credit union movement to change a bank's (details supplied) regulations governing the percentage of credit union loans that can be given out as long-term loans; and if he will make a statement on the matter. [4762/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I can advise the Deputy that Section 35 of the Credit Union Act 1997 as amended by the Central Bank Reform Act 2010 provided for the making of loans by a credit union and provided the Central Bank with certain regulation making powers. The legislation set out limits on lending over 5 years and over 10 years. Following commencement of the Credit Union and Co-operation with Overseas Regulators Act 2012 (2012 Act) these “Section 35” restrictions in relation to long-term lending are set out in Central Bank regulations which commenced on 1 January 2016.

The Credit Union Advisory Committee, CUAC, in its 2016 report, recommended a full review of lending limits and concentration limits, including the basis of the calculation of the limits together with the liquidity requirements attaching to same. It was acknowledged that any changes arising would need to be assessed in conjunction with the risk profile of credit unions together with an assessment of skills, capabilities and asset and liability management.

To that end, the CUAC Report Implementation Group, which was established to implement CUAC’s recommendations, submitted a scoping paper to the Central Bank in November 2017. The paper details a range of proposals for consideration in the Central Bank review of Section 35 which could provide for a material increase in long-term lending for those credit unions that would have the capability to do so. The paper provides a range of considered proposals which would, if implemented, offer a roadmap for increasing long-term lending capacity in the credit union sector, while recognising the potential risks involved.

I recently wrote to the Governor of the Central Bank to outline my strong support for this very important matter being progressed in early 2018.  I am advised that the Central Bank has undertaken a preliminary review of the paper provided by the Implementation Group and that work plans for 2018 reflect the Registry of Credit Union’s intention to progress this matter during the year.