Written Answers Nos. 134-149
134. Deputy Jackie Cahill asked the Minister for Finance the number of residential properties owned by a bank (details supplied); if an audit will be carried out by his Department regarding same; the plans the bank has to place those properties on the market to help ease the housing shortage; and if he will make a statement on the matter. [8068/18]
Amharc ar fhreagraPTSB has around 1,800 properties in possession of which around 800 are tenanted, buy to let properties returned through the voluntary surrender scheme with rental tenants in situ. It is the Bank’s intention, where possible, to sell tenanted properties with tenants in situ. The bank has met with representatives from the Housing Agency and are in the process of identifying suitable properties based on criteria provided by the Housing Agency. The bank will continue to sell properties through private treaty, to sell through auctions and to liaise with the Housing Agency with regard to property sales directly to them.
135. Deputy Jackie Cahill asked the Minister for Finance if an audit on all residential property mortgages sold by the mainstream banks to vulture funds in recent years was carried out to ascertain the number of properties available for placement on the market to ease the housing shortage (details supplied); and if he will make a statement on the matter. [8069/18]
Amharc ar fhreagraAs the Deputy is aware one of the priorities set out in the Government’s housing strategy ‘Rebuilding Ireland’ is to ensure that the existing housing stock is used to the maximum degree possible, with a focus on measures to use vacant stock and to renew urban and rural areas.
The plan proposes to bring vacant and under-utilised housing stock back into use for both private and social housing purposes and includes an investment of €70 million by the Housing Agency which is under the remit of the Minister for Housing, Planning and Local Government to acquire vacant properties, particularly from portfolios for sale from financial institutions and investors for social housing purposes.
I understand that the Housing Agency has thus far purchased a significant number of vacant housing units offered to the State for purchase as social houses by banks and private equity funds under this scheme and is assessing the suitability of further vacant properties. It is not possible to audit the stock in question as this engagement with the various financial institutions is ongoing and not all stock is suitable for social housing purposes but I am informed this engagement is yielding results and will continue throughout 2018.
136. Deputy Tom Neville asked the Minister for Finance if the introduction a VAT rebate scheme in respect of security systems for senior citizens similar to the mobility aids VAT rebate scheme will be considered; and if he will make a statement on the matter. [8358/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT directive the supply of a security system is liable to VAT at the standard rate, currently 23%. However, if the supply includes the installation of the system then the reduced rate of 13.5% may apply, subject to the two thirds rule, which requires that to benefit from the 13.5% rate the value of the goods cannot exceed two thirds of the total amount of the supply.
The directive does not permit a rebate or refund of VAT charged to a private person on the sale of a security system and there is no scope under the directive to introduce or amend a Refund Order to include it.
However, I am advised by the Revenue Commissioners that relief may be available in respect of the installation of a security system in the home of a senior citizen under the Home Renovation Initiative, HRI. This provides income tax relief in the amount of 13.5% of the cost of certain repairs, renovations and improvements, carried out on a person's main residence. The relief is granted by way of a credit against income tax over the two years following the year in which the works are paid for with the credit split evenly between the two years.
The key features of the scheme are that:-
- The works must be carried out by a tax compliant contractor;
- The works must be liable to VAT at 13.5%;
- The works must be carried prior to 31 December 2018;
- Local Property Tax payments must be up to date in respect of the property;
- The cost of the works must be greater than €4,405 and not more than €30,000 (both figures exclusive of Value Added Tax). The cost of multiple works by different contractors may be aggregated in a claim.
Full details of the scheme are available on the Revenue website at: https://www.revenue.ie/en/property/home-renovation-incentive/index.aspx
137. Deputy Michael McGrath asked the Minister for Finance the value of assets held by the European Central Bank and associated national central banks as part of the public sector purchase programme. PSPP; the value of Irish Government bonds held by the ECB as part of the PSPP; the plans by the ECB to unwind PSPP; the method by which it will be determined which sovereign bonds will be sold in each month of the unwinding of PSPP; and if he will make a statement on the matter. [8061/18]
Amharc ar fhreagraThe value of Eurosystem holdings under the Public Sector Purchase Programme stood at €1,919,149 million* as at 9 February 2018 *at amortised cost. Source ECB website: http://www.ecb.europa.eu/mopo/implement/omt/html/index.en.html#pspp.
The value of Irish Government bonds held by the Eurosystem, not the ECB, as part of the PSPP is €25,687 million* as at 31 January 2018. *Book value. Source ECB website – http://www.ecb.europa.eu/mopo/implement/omt/html/index.en.html#pspp.
I wish to clarify for the Deputy that the ECB has not announced plans to “unwind” the PSPP. In this context, please refer to paragraphs 2 and 3 of the press release published following the Governing Council meeting of 26 October, 2017, which states that:
"(2) As regards non-standard monetary policy measures, purchases under the asset purchase programme, APP, will continue at the current monthly pace of €60 billion until the end of December 2017. From January 2018 the net asset purchases are intended to continue at a monthly pace of €30 billion until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the APP in terms of size and/or duration.
(3) The Eurosystem will reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. This will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance."
The full press release is available here: http://www.ecb.europa.eu/press/pr/date/2017/html/ecb.mp171026.en.html.
138. Deputy Jackie Cahill asked the Minister for Finance his plans to introduce legislation or regulations that would encourage the mainstream banks to make residential properties that are in their ownership available to the market to reduce the shortage of housing (details supplied); and if he will make a statement on the matter. [8070/18]
Amharc ar fhreagraThe sale of residential properties in bank ownership is a matter for individual commercial banks.
I understand that the Housing Agency which is under the remit of the Minister for Housing, Planning and Local Government is currently assessing the suitability of a number of empty properties which are being offered to the State for purchase as social houses by banks and private equity funds.
139. Deputy Pearse Doherty asked the Minister for Finance the rules or conventions in place regarding cooling off periods for Central Bank employees taking up positions in the private sector; and if he will make a statement on the matter. [8074/18]
Amharc ar fhreagraI am informed by the Central Bank that its ‘code of ethics’ defines the standards of ethical conduct the Central Bank upholds for its staff and that the Bank at all times, aims to safeguard its impartiality by actively avoiding conflicts of interest.
Under the Code of Ethics, members of staff who are intending to leave the Central Bank to take up alternative employment, self-employment or business are required to provide notification to line management and the human resources division when a conflict of interest arises, or might be perceived to exist, between those duties held in the Central Bank and those to be undertaken within the new employment arrangement.
Line management and HR will make an assessment based on the notification. In such circumstances, the Central Bank may assign alternative tasks to the individual while their notice period is being served so that a suitable “cooling off” period is created. In some very limited circumstances the cooling off period may involve the staff member being placed on garden leave.
The cooling off period may be lengthened in excess of the contractual or statutory notice period, by mutual agreement.
Further information on the code of ethics can be found here: https://www.centralbank.ie/docs/default-source/careers/policies/code-of-ethics-behaviour.pdf?sfvrsn=4
In addition, members of the senior executive team who sit on the Governing Council or Supervisory Board must also comply with specific ECB regulations regarding post-employment activities.
Further information on the specific ECB regulations can be found here:
https://www.ecb.europa.eu/ecb/legal/pdf/code_of_conduct_for_the_members_of_the_supervisory_board_.pdf.
The Central Bank Commission has adopted a code of conduct and ethics. Under Section 10 of the code it is stated that members should give due consideration before taking up any position or role as to whether it might give rise to a conflict of interest in respect of their membership of the Commission. The secretary should be consulted if a serving member wishes to take up a role which may give rise to such a conflict of interest, or impact on the reputation of the Central Bank. The code of conduct and ethics also requires former members to give consideration before taking up any position or role as to whether a sufficient amount of time has elapsed as to remove any perception of a conflict of interest, or impact on the reputation of the Central Bank.
Further information on the code of conduct and ethics can be found here:
https://www.centralbank.ie/docs/default-source/tns/about---tns/who-we-are/commission/code-of-conduct-for-members-of-the-central-bank-commission.pdf?sfvrsn=6.
140. Deputy Pearse Doherty asked the Minister for Finance the number of directorships a person may hold in different financial institutions; the safeguards in place to ensure there are no conflicts of interest such as holding a directorship in competing companies; and if he will make a statement on the matter. [8075/18]
Amharc ar fhreagraI am informed by the Central Bank of Ireland that it imposes corporate governance requirements for financial institutions at a domestic level and there are also European level requirements. The European requirements may supersede the Irish requirements in certain circumstances, such as for significant institutions as outlined in 1.1 below.
The Central Bank of Ireland operates a risk-based framework for the supervision of regulated firms. Institutions are categorised based on the greatest impact on financial stability and the consumer as follows: high impact, medium-high impact, medium-low impact and low impact.
The Central Bank of Ireland has issued sector specific corporate governance requirements, which vary dependent on the impact of the institution.
1. Directorship Limits
All Central Bank of Ireland corporate governance requirements require firms to ensure that each member of the board has sufficient time to devote to the role of director and associated responsibilities. The board shall indicate a time commitment expected from directors in letters of appointment.
1.1 Credit Institutions
The Central Bank of Ireland’s corporate governance requirements for credit institutions limits the number of directorships held by directors of credit institutions as follows[1] :
For high impact designated credit institutions and insurance undertakings, a director can hold the following directorships:
- up to three financial directorships (i.e. directorships in companies or groups of companies which are credit institutions or insurance undertakings); and
- up to five non-financial directorships (i.e. any other type of company, which is not a credit institution or an insurance undertaking).
For non-high Impact designated credit institutions, a director can hold the following directorships:
- up to five financial directorships; and
- up to eight non-financial directorships.
Significant Credit Institutions
In a European context, credit institutions designated as ‘significant’ for the purposes of the Capital Requirements Directive[2] (‘CRD IV’) [S.I. 158/2014] must ensure that members of the management body shall not hold more than one of the following combinations of directorships at the same time:
- one executive directorship with two non-executive directorships;
- four non-executive directorships.
The following shall count as a single directorship:
- executive or non-executive directorships held within the same group;
- executive or non-executive directorships held within -
- institutions which are members of the same institutional protection scheme provided that the conditions set out in Article 113(7) of the Capital Requirements Regulation are fulfilled, or
- undertakings, including non-financial entities, in which the institution holds a qualifying holding.
In considering and/or proposing director appointments, the board shall assess and document its consideration of possible conflicts of interest among its members, including, but not limited to personal relationships, business relationships and common directorships among its members or proposed members.
Appointments shall not proceed where possible conflicts of interest may emerge which are significant to the overall work of the board. Directors shall not participate in any decision making/discussion where a reasonably perceived potential conflict of interest exists.
Directorships in organisations which do not pursue predominantly commercial objectives shall not count.
Article 91(6) of CRD IV [Regulation 79(10) and 79(11) of S.I. 158/2014] permits the Central Bank to authorise directors of significant institutions to hold one additional non-executive directorship.
1.2 Insurance Undertakings
The Central Bank of Ireland’s corporate governance requirements for insurance undertakings impose the same directorship limits as those outlined for credit institutions at 1.1 above.
1.3 Captive insurance and captive reinsurance undertakings
The Central Bank of Ireland’s corporate Governance requirements for captive insurance and captive reinsurance undertaking limits the number of directorships held by directors as follows:
(a) Limited by the amount of time required to properly carry out the role and functions of a director in that particular captive; and
(b) Subject to an overall limit of 25 directorships, regardless of whether the directorship is held in a captive company or a company which is not a captive.
1.4 Fund Management Companies
The Central Bank of Ireland fund management companies guidance addresses director time commitments and sets a risk indicator in terms of a joint test of (a) having more than 20 directorships and (b) having an aggregate professional time commitment in excess of 2000 hours.
2. Conflicts of Interest
2.1 Credit Institutions
Chapter 7 of the Central Bank of Ireland’s corporate governance requirements for credit institutions, requires the following:
It also requires the board to establish a documented ‘conflict of interest’ policy for its members and where conflict of interests arise the board shall ensure that they are noted in the minutes. In addition, if on-going conflicts of interest arise, consideration shall be given to changing the membership of the board.
2.2 Insurance Undertakings
The Central Bank of Ireland’s corporate governance requirements for insurance undertakings impose the same conflicts of interest requirements as those outlined for credit institutions at 2.1 above.
2.3 Captive Insurance and Captive Reinsurance Undertakings
The Central Bank of Ireland’s corporate governance requirements for captive insurance and captive reinsurance undertakings impose the same conflicts of interest requirements as those outlined for credit institutions at 2.1 above.
2.4 Fund Management Companies
The Central Bank of Ireland fund management companies guidance states that individuals with multiple directorships should consider the conflicts which may arise when sitting on a number of boards and the corporate interconnectivity that is created. Conflicts which may occur between individuals with full-time positions in a service provider to the board should also be considered and the most appropriate action taken.
The Deputy may wish to give additional consideration to company law requirements with regard to directorships of financial institutions, which are a matter for my colleague, the Minister for Business, Enterprise and Innovation.
The Deputy may also wish to note that the Irish Funds Industry Association issued a corporate governance code for collective investment schemes and management companies in 2012: http://files.irishfunds.ie/1432820468-corporate-governance-code-for-collective-investment-schemes-and-management-companies.pdf.
[1] In calculating the number of directorships held, the Central Bank excludes directorships held in the public interest on a voluntary and pro bono basis provided that such directorships shall not interfere with the director’s ability to fulfil properly his or her role and functions as a director of an insurance undertaking. At the time of appointment, any such directorships shall be notified to the Central Bank. All directorships held within the group regardless of whether they are financial or non-financial companies shall be counted as one directorship.
[2] Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
141. Deputy Pearse Doherty asked the Minister for Finance if an alternative rule based on a minimum investment grade for bank bonds will be put in place of the current severe restrictions on credit unions investing in bank bonds; and if he will make a statement on the matter. [8153/18]
Amharc ar fhreagraIn 2017, the Central Bank undertook a review of the investment framework for credit unions. In May 2017, consultation paper 109, CP109, was published which consulted on a number of potential changes to the investment framework. CP109 outlined the Central Bank’s view that any changes to the investment framework for credit unions should reflect the fact that it is the savings of credit union members, which can be withdrawn on demand, that will be invested by credit unions and that the risk profile of credit union investment portfolios should reflect this.
Taking account of the resolution framework introduced under the Banking Recovery and Resolution Directive, BRRD, CP109 outlined an intended change to the definition of bank bonds to clarify that bonds that are subordinated to any unsecured creditor including senior bank bonds issued by a credit institution do not fall within the definition of “bank bonds” set out in the regulations. It also outlined that credit unions will need to ensure that they confirm that instruments are not subordinated debt instruments prior to making an investment to ensure that they remain in compliance with investment regulations.
On 1 February 2018, the Central Bank published the feedback statement on CP109 and amending investment and liquidity regulations for credit unions. These amending regulations will commence on 1 March 2018. These regulations reflect a change to the definition of bank bonds which precludes investment by a credit union in bonds that are subordinated to any other liability of a credit institution, including senior bank bonds, in recognition of their risk profile and complexity. This preclusion for credit unions reflects the potential implications for credit unions should such instruments be written down or converted to equity upon the failure of a credit institution.
Credit unions will continue to be permitted to invest in senior bank bonds and the Central Bank understand that a number of European credit institutions are likely to continue to issue senior bonds. Additionally, as minimum requirement for own funds and eligible liabilities, MREL, ‘buffers’ are established it is expected that domestic credit institutions will resume issuance of senior bank bonds in the future given the lower associated funding cost relative to subordinated bank bonds.
The Central Bank has informed me that, notwithstanding the credit rating of bank bonds generally, it is not deemed appropriate for credit unions to be holders of instruments such as subordinated bank bonds specifically designed to absorb losses in a resolution scenario as it would directly expose them to burden sharing in line with EU Commission policy[1] , and has consequences for the resolvability of issuing credit institutions raising the risk of taxpayer bail outs.
[1] Communication from the Commission on the application, from 1 August 2013, of State aid rules to support measures in favour of banks in the context of the financial crisis, ‘Banking Communication’ (2013/C 216/01).
142. Deputy Pearse Doherty asked the Minister for Finance if the existing counterpart limit of 25% in regard to credit union investment will be maintained in view of the fact there have been no regulatory issues as a result of the current rate; and if he will make a statement on the matter. [8154/18]
Amharc ar fhreagraIn 2017, the Central Bank undertook a review of the investment framework for credit unions, which indicated that there existed a significant level of concentration in credit union investment portfolios in relation to both investment product and counterparty.
In May 2017, consultation paper 109, CP109, was published which consulted on a number of potential changes to the investment framework. CP109 proposed the reduction in the counterparty limit from 25% to 20% of total investments to assist the objective of increased levels of diversification in investment portfolios.
Feedback received to the consultation indicated that credit unions did not view it as an appropriate time to reduce the counterparty limit, citing the current low interest rate environment and the exit of certain counterparties from the market as challenges to meeting a reduced counterparty limit.
Taking account of the feedback received through submissions to CP109, the Central Bank undertook further analysis on credit union sector investment counterparties to understand further the likely impact which a reduction in the counterparty limit would have. This analysis indicated that for the majority of credit unions a reduction in the counterparty limit will not pose a significant challenge.
On 1 February 2018, the Central Bank published the feedback statement on CP109 and amending investment and liquidity regulations for credit unions. These amending regulations will commence on 1 March 2018. These regulations include a reduced counterparty limit of 20% of total investments for credit unions. Transitional arrangements have been extended which will provide a period of two years from commencement of the regulations for credit unions to become compliant with the reduced counterparty limit. In addition, credit unions will be permitted to hold to maturity any fixed term investments which they hold at commencement of the regulations which result in them being non-compliant with the reduced counterparty limit.
The Central Bank have informed me that it is its view that the reduction in the counterparty limit is appropriate to assist in driving diversification in investment portfolios and, taking account of the additional counterparties which will be available to credit unions as a result of changes to the permitted classes of investments being introduced. Additionally, the changes being introduced to the liquidity framework for credit unions and the increases to concentration limits for certain permitted classes of investments will assist credit unions in meeting this requirement. Further detail on these changes is included within the feedback statement on CP109 published on the Central Bank website.
143. Deputy Pearse Doherty asked the Minister for Finance if effective and proportionate regulations will be reintroduced further to section 43(5) of the Credit Union Act 1997. [8155/18]
Amharc ar fhreagraSection 43 of the Credit Union Act, 1997 outlines the legislative requirements in relation to credit union investments. It states that a credit union shall manage its investments to ensure that those investments do not, taking account of the nature, scale, complexity and risk profile of the credit union, involve undue risk to members' savings and for that purpose, before making an investment a credit union shall assess the potential impact on the credit union, including the impact on the liquidity and financial position of the credit union. Section 43(3) provides the Central Bank with the power to make regulations in relation to investments.
The current investment regulations for credit unions are contained in the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016. In 2017, the Central Bank undertook a review of the investment framework for credit unions. In May 2017, Consultation Paper 109, CP109, was published which consulted on a number of potential changes to the investment framework. Following completion of a public and statutory consultation process, the Central Bank published a feedback statement on CP109 and amending investment and liquidity regulations for credit unions. On 1 March 2018, new investment regulations will be introduced for credit unions through the commencement of the Credit Union Act 1997 (Regulatory Requirements) (Amendment) Regulations 2018. These new investment regulations introduce three additional investment classes for credit unions, supranational bonds, corporate bonds and investments, in tier 3 Approved Housing Bodies, AHBs, along with associated limits and requirements. Investment in tier 3 AHBs has a differentiated concentration limit dependent on the asset size of the credit union.
The Central Bank has informed me that it views that these new regulations are effective and proportionate for credit unions and that there is a need for credit unions to fully understand the risks associated with all investments, ensure that they are in line with the risk appetite of the credit union and comply with all legislative and regulatory requirements.
The Central Bank has indicated that it will undertake and publish analysis of credit union sector investments, two years post commencement of the amending regulations to assess and analyse the actual impact which the changes to the investment framework have had.
144. Deputy Peter Burke asked the Minister for Finance if changes to the age limits for family transfers are being considered to mitigate higher stamp duty costs (details supplied); and if he will make a statement on the matter. [8162/18]
Amharc ar fhreagraI am advised by Revenue that based on the information supplied the transfer of the farm may be eligible for a stamp duty relief known as ‘consanguinity’ relief. This relief applies a reduced rate of stamp duty of 1% to transfers of farmland between certain blood relatives provided certain conditions are met. Since the enactment of the Finance Act 2017 on 25 December 2017, there is no age limit for consanguinity relief. For transfers executed prior to that date, it was a requirement that the person transferring the land be under 67 years of age. No age limit applied in relation to the person receiving the land and this continues to be the case.
In addition to being a relative of the transferor, the person to whom the land is transferred must either farm the land or lease it to someone who farms it for a period of not less than 6 years. The person farming the land must do so on a commercial basis and with a view to the realisation of profits. A further condition is that the person farming the land must devote at least 50% of his or her normal working time to farming or be the holder of one of the agricultural qualifications set out in Schedule 2, 2A or 2B to the Stamp Duties Consolidation Act (SDCA) 1999.
Another stamp duty relief known as ‘young trained farmer’ relief allows for full relief from stamp duty but imposes an age condition on the transferee. There is no relationship requirement for this relief. To qualify for this relief the transferee must, on the date of execution of the instrument of transfer, be under 35 years of age and hold one of the agricultural qualifications set out in Schedule 2, 2A or 2B to the SDCA 1999. As the transferee in this case is aged 37, a transfer of the farm would not qualify for ‘young trained farmer’ relief.
145. Deputy Anne Rabbitte asked the Minister for Finance if a case (details supplied) will be reviewed on the basis of equality; and if he will make a statement on the matter. [8389/18]
Amharc ar fhreagraI am advised by Revenue that the individual concerned is in receipt of the State Pension (Contributory). His wife has no separate source of income and is wholly maintained by him. She is, therefore, a “qualified adult” within the meaning of the Social Welfare Consolidation Act 2005. The individual is therefore entitled to an increase in respect of the qualified adult dependent.
Pursuant to section 19 of the Taxes Consolidation Act 1997, the State Pension (Contributory), including an increase for the qualifying adult dependent, is chargeable to income tax. Disagreement arose between the individual referred to by the Deputy and Revenue on the issue of who, for the purpose of the Taxes Acts, is chargeable to tax on the amount of the increase in respect of the qualifying adult dependent. The individual in this case contended that the qualified adult dependent should be taxed separately on the “increase” whereas Revenue contends that there is only one social welfare pension, given that the Social Welfare Act provides for an increase in the individuals pension and does not therefore provide for a separate pension for the adult dependent. As a consequence the Revenue position is that the individual is chargeable on the full amount of the pension including any increase.
The individual in question appealed the matter and an Appeal Commissioner found in his favour. Once an appeal has been determined by an Appeal Commissioner, either the taxpayer or Revenue may express “dissatisfaction” with the decision as being in error on a point of law and require the Appeal Commissioner to state and sign a case for the opinion of the High Court on the determination of the appeal. I understand that Revenue has expressed dissatisfaction in this case and that a Case Stated has been submitted to the High Court.
I am further advised by Revenue that in accordance with its customer service charter it administers the law fairly, reasonably and consistently and seeks to collect no more than the amount of tax due. Furthermore it is committed to the principle of treating all taxpayers equally. In this regard, Revenue also advises that any decision to pursue an appeal case to the courts following a determination by an Appeal Commissioner is only taken after a comprehensive analysis of the issues involved and consideration of the precedential nature of the point of law in question. It is Revenue’s duty to seek to bring certainty to important points of tax law and this necessitates bringing cases to the High Court where it is of the view that a decision of an Appeal Commissioner is in error.
146. Deputy Pearse Doherty asked the Minister for Finance his views on whether it is just those that victims of the tracker mortgage scandal that employed a financial adviser may lose out on a percentage of compensation or redress in order to pay these advisers; his further views on whether the compensation and redress payable should reflect this additional cost; and if he will make a statement on the matter. [8409/18]
Amharc ar fhreagraThe Central Bank has advised that its tracker examination is focused on ensuring that lenders provide fair outcomes for all customers impacted by tracker related failings both from a contractual and transparency perspective. As part of the examination framework, where customer detriment has been identified, the Central Bank has clearly articulated its expectations of lenders to provide appropriate redress and compensation to impacted customers in line with the Central Bank prescribed "Principles for Redress".
Together with redress and compensation, the "Principles for Redress" also requires lenders to provide impacted customers with an additional upfront payment which they can use, if they so wish, to pay for independent advice regarding the adequacy of their lender’s offer. This additional payment is to be commensurate with the complexity of the advice required by the impacted customer depending on the individual circumstances of the impacted customer's case. Importantly customers can also accept the redress and compensation offered and still make an appeal to the appeals panels required to be established by lenders under the "Principles for Redress". Customers’ rights to make appeals to the Financial Services and Pensions Ombudsman and through the courts are also preserved.
147. Deputy James Lawless asked the Minister for Finance the reason an imported houseboat from the UK for the sole purpose of principal private residence is subject to 23% VAT in view of the fact that other mobile dwellings such as caravans, motor homes and so on are subject to 13% VAT if used as a primary dwelling; and if he will make a statement on the matter. [8457/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. The VAT Consolidation Act 2010, as amended, provides for the application of the standard rate of VAT, currently 23%, to the supply of a house boat, caravan or mobile home.
I am advised by the Revenue Commissioners that the Value-Added Tax (Refund of Tax )(No 262) Order, 1980 provides for a refund of VAT in respect of the excess of the reduced rate of 13.5% on the purchase of a caravan, mobile home or similar structure, if used as a permanent residence and fulfils certain conditions to the satisfaction of the Revenue Commissioners as set out in the Order. The Order does not include a vessel such as a house boat and I am constrained by the requirements of EU law from expanding this Order.
148. Deputy Peadar Tóibín asked the Minister for Finance his plans to review and change the criteria under which a person (details supplied) can apply for the disabled drivers and disabled passengers (tax concessions) scheme. [8489/18]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT on the purchase of an adapted vehicle, payment of a fuel grant, and an exemption from motor tax for persons with specific severe and permanent physical disabilities, as well as qualifying charitable organisations.
To qualify for the scheme an applicant must be in possession of a primary medical certificate. To qualify for a primary medical certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
I understand and fully sympathise with any person who suffers from a serious physical disability and can’t access the scheme under the current criteria. However, given the scope and scale of the scheme, any possible changes to it can only be made after careful consideration, taking into account the existing and prospective cost of the scheme as well as the availability of other schemes which seek to help with the mobility of disabled persons, and the interaction between each of these schemes.
In this regard, the Government's legislative programme for 2018 includes the Health (Transport Support) Bill to provide for a scheme to make individual payments as a contribution towards transport costs to people with severe disabilities on a low income who cannot access public transport. The legislation is being brought forward by my colleague the Minister for Health.
In summary, I have no current plans to change the medical criteria for accessing the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme.
149. Deputy Peadar Tóibín asked the Minister for Finance the steps the Revenue Commissioners has taken to ensure that much of the self-employment within the film industry is not bogus self-employment; and the investigations the Revenue Commissioners has made in the past five years to ensure that those registered self-employed are actually self-employed. [8496/18]
Amharc ar fhreagraI am aware that the Joint Committee on Culture, Heritage and the Gaeltacht, which is chaired by the Deputy, has recently considered working conditions in the Irish film industry. It is clear from discussions at the committee that the issue of working conditions in the industry is quite a complex one and that self employment may suit some individuals’ working arrangements.
The Deputy will be aware that earlier this year a report was delivered to myself and the Minister for Employment Affairs and Social Protection relating to “The use of intermediary-type structures and self-employment arrangements: Implications for Social Insurance and Tax Revenues”. I have already indicated that I will give careful consideration to the contents of the report.
As regards tackling the problem of bogus self-employment, I am advised by Revenue that it carries out a comprehensive programme of ‘outdoor’ compliance operations each year across a broad range of economic sectors, including the film industry.
The various operations are selected following a comprehensive assessment of all the risk indicators involved. These can include, for example, risks identified through Revenue’s own systems, data from third party sources and publicly available information.
Revenue has also confirmed that many of the operations are carried out on a multi-agency basis, which can include officials from the Department of Employment Affairs and Social Protection, DEASP, and the Workplace Relations Commission, WRC. The primary role of these joint investigation units, JIUs, is to detect non-compliance with tax and duty obligations, which includes non-operation of the PAYE system on foot of bogus self-employment.
Over the course of 2013 to 2016, inclusive, the JIU teams conducted over 12,000 such operations, which yielded in excess of €23 million in additional taxes and resulted in more than 8,000 new tax registrations. The 2017 figures are not yet fully collated but can be made available to the Deputy as soon as they come to hand.
If the Deputy or any other public representatives have information on any specific instances of suspected bogus self employment in the film industry, I would ask that they immediately inform Revenue, the DEASP and the WRC in order that each body can examine these for any non-compliance in their respective areas of responsibility.
