Thursday, 29 Mar 2018

Written Answers Nos. 110-129

Mortgage Interest Relief Data

Ceisteanna (110, 111, 112)

Michael McGrath

Ceist:

110. Deputy Michael McGrath asked the Minister for Finance the number of cases in which mortgage interest relief has been underpaid and in which the mortgage holder is liable for unpaid tax in each of the years 2013 to 2017 and to date in 2018; the value of taxes unpaid in each of the years; the number and value of cases in which the lenders were licensed credit institutions, retail credit firms and unregulated loan owners; and if he will make a statement on the matter. [14823/18]

Michael McGrath

Ceist:

111. Deputy Michael McGrath asked the Minister for Finance the responsibility of the borrower in the event that mortgage interest relief is miscalculated and that tax is left unpaid; the potential repercussions for such lenders; the role of the Central Bank in the calculation of mortgage interest relief; and if he will make a statement on the matter. [14824/18]

Michael McGrath

Ceist:

112. Deputy Michael McGrath asked the Minister for Finance the regulatory position with regard to the calculation of mortgage interest relief if that calculation is undertaken by the unregulated loan owner and not the credit servicing firm; if the Central Bank has power in this regard; and if he will make a statement on the matter. [14825/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 110 to 112, inclusive, together.

I assume that the Deputy's questions refer to instances where the lender may have miscalculated and overpaid relief to the mortgage holder and subsequently seeks to recoup the overpayment at a later date.

I am advised by Revenue that section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilings and rates will depend on the particular circumstances of the borrower, and are set out in section 244. Comprehensive guidance notes on mortgage interest relief can be found on the Revenue website using the following link

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-08/index.aspx

Section 244A TCA 1997 provides that tax relief is granted at source by the lender in respect of loans secured by a mortgage on a borrower’s principal private residence. To facilitate this process the lender is required to seek, on periodic basis, updated information from Revenue, which the lender (or their appointed service provider) uses to calculate the correct amount of tax relief due in respect of each qualifying loan.

The lender (or their appointed service provider) then submits a claim to Revenue in relation to the tax relief granted at source by them on all qualifying loans. Before making any payment to the lender Revenue carries out the required verification checks to ensure the payment to the lender represents the correct amount of tax relief due on each qualifying loan. If the lender incorrectly grants too much tax relief at source to a qualifying loan, Revenue will not reimburse the lender for any excess incorrectly granted. Any consequential adjustment to an individual borrower’s liability is a matter for the lender and borrower. As a result many lenders do not show these excess payments to borrowers on their returns to Revenue but instead deal directly with the borrower in relation to them.

On this basis, Revenue does not have a complete record of such overpayments, as they are not overpayments on the Revenue system. Therefore accurate information on the numbers or amounts of such overpayments for the years 2013 to 2017, and to date in 2018, cannot be provided from Revenue data.

The Central Bank has no role in the calculation of mortgage interest relief but has an overall supervisory role over the regulated lenders and service providers.

Questions Nos. 113 and 114 answered with Question No. 107.

Knowledge Development Box

Ceisteanna (115)

Michael McGrath

Ceist:

115. Deputy Michael McGrath asked the Minister for Finance the number of companies availing of the knowledge development box; the cost of the programme in 2016; the number of SMEs that obtained the relief in 2016; the cost of these claims; the number of SMEs that were expected to claim the relief; the number of SMEs that claimed the relief; the cost of these claims; the number of SMEs that were expected to claim the relief; and if he will make a statement on the matter. [14829/18]

Freagraí scríofa

Minister for Finance

The Knowledge Development Box (KDB) applies for accounting periods commencing on or after 1 January 2016. The claimant company has a period of up to 24 months to make a claim for KDB relief.

I am informed by Revenue that a small number of companies (less than 10) with accounting periods ended on or before 31 December 2016 have claimed KDB relief. The tax cost of these claims to-date is in the region of €5 million. Due to taxpayer confidentiality, Revenue cannot comment on the size or nature of the claimant companies to date.

Given the large amount of documentation that is necessary, it is anticipated that more companies will make use of the 24 month time frame available. As such, more claims in respect of the year ended 31 December 2016 may be made by September 2018.

NAMA Operations

Ceisteanna (116)

Michael McGrath

Ceist:

116. Deputy Michael McGrath asked the Minister for Finance the status of the planned wind-up of NAMA; the details of the remaining portfolio; the estimated timeframe in this regard; the estimated financial outturn from the wind up of NAMA; and if he will make a statement on the matter. [14830/18]

Freagraí scríofa

Minister for Finance

I wish to advise the Deputy that there has been no change to NAMA's expectation that it will complete the majority of its work by end-2020.

The Deputy will be aware that NAMA reached a major milestone in October 2017 when it announced that it had redeemed all of its State-guaranteed Senior Bonds of €30.2bn, three years ahead of schedule.

I am advised that NAMA has also made substantial progress on a number of its other objectives, including its social housing programme which has seen the delivery of over 2,400 homes for use as social housing.

While much has been achieved, there remains a significant body of work to be carried out by NAMA over the coming years. This includes completion of its Dublin Docklands SDZ programme on which there has been major progress since NAMA launched this initiative in September 2014. NAMA estimates that over 4m sq. ft. of Grade A office space and over 2,000 apartments will be delivered on its Docklands SDZ sites. I am advised that all of the sites have proceeded through the planning process or are in the planning process and that construction has commenced on 2.5m sq. ft. of commercial space and some 600 apartments.

NAMA has also made progress on another of its objectives which is to facilitate or fund the delivery of 20,000 residential units by the end of 2020. To date, I am advised that NAMA has funded the delivery of 7,400 houses, with another 3,500 houses currently under construction. Planning approval has been obtained for an additional 7,500 homes.

NAMA’s work includes the deleveraging of the remainder of its loan portfolio. The carrying value of the portfolio as at 30 September 2017, net of cumulative impairment, was €3.7 billion. I am advised that this residual loan portfolio will require intensive case management and asset management if the projected terminal surplus is to be realised. As such I do not envisage setting a shorter timeframe which could have the effect of reducing the projected terminal surplus, which is currently estimated at €3 billion, assuming market conditions remaining favourable.

Brexit Issues

Ceisteanna (117)

Michael McGrath

Ceist:

117. Deputy Michael McGrath asked the Minister for Finance the expected impact Brexit will have on Ireland's annual contribution to the EU budget; and if he will make a statement on the matter. [14831/18]

Freagraí scríofa

Minister for Finance

Brexit negotiations are currently on-going. Therefore, as the Deputy will appreciate, it would not be appropriate for me to discuss those negotiations or the potential impact on Ireland's net contribution to the EU Budget in detail at this point.

Ireland welcomes that the UK has agreed to honour its share of the financing of all the obligations while it was a member of the Union, in relation to the EU budget (and in particular the Multiannual Financial Framework 2014-2020), which will enable a positive future relationship between the EU and the UK.

My Department currently forecasts that Ireland's contribution to the EU budget will be €2,650 million in 2018, €2,675 million in 2019 and €2,750 million in 2020. It is worth noting that these forecasts are contingent on a number of variables, including updated GNI forecasts, the size of the overall EU budget for the year and other EU budget operational developments which will only emerge as the year progresses. As a result, all forecasts will be monitored and updated on an ongoing basis as new information becomes available. In this regard, a key element will be the European Commission's proposal on the next MFF which is due to be published in early May.

EU Budgets

Ceisteanna (118)

Michael McGrath

Ceist:

118. Deputy Michael McGrath asked the Minister for Finance the gross contribution Ireland has made to the European Union budget in each of the years 2010 to 2016, respectively; the contribution in 2017; the net benefit or contribution made in each year in tabular form; and if he will make a statement on the matter. [14832/18]

Freagraí scríofa

Minister for Finance

EU budget payments and public sector receipt data are published annually by the Department of Finance in the Budget Statistics publication. The public sector receipt measure captures funds under 'shared management' between national and EU authorities. In addition, the EU also pays some additional receipts directly to private beneficiaries under 'centralised direct management', most notably under the EU research funding programme.

Ireland's receipts from and contributions to the EU budget for the years 2010 to 2016 are set out in the table below:

Year	Public Sector Receipts - €m	Direct Management Receipts* - €m	Total Receipts - €m	Payments to EU budget - €m	Net Receipts - €m
2010	1885.3	80.4	1965.7	1352.4	613.3
2011	1950.2	80.2	2030.4	1349.7	680.7
2012	1837.7	108.8	1946.5	1393.2	553.3
2013	1672.9	113.0	1785.9	1726.2	59.7
2014	1419.7	83.9	1503.6	1685.5	-181.9
2015	1783.4	147.7	1931.1	1952.1	-21.0
2016	1622.1	156.0	1778.1	2022.8	-244.7

* - Direct Management - funds which are awarded and spent directly by the Commission. These are primarily research receipts.

Ireland's contribution to the EU budget in 2017 is estimated to be c. €2,020 million. In relation to receipts for 2017, a final outturn will be published as part of the 2018 Budget Statistics report.

Central Bank of Ireland Enforcement Actions

Ceisteanna (119)

Michael McGrath

Ceist:

119. Deputy Michael McGrath asked the Minister for Finance the fines imposed by the Central Bank on financial institutions in each of the years 2013 to 2017 and to date in 2018; if the institution was a licensed credit institution, retail credit firm, credit servicing firm and other types of financial institution in each case in tabular form; and if he will make a statement on the matter. [14833/18]

Freagraí scríofa

Minister for Finance

I am informed by the Central Bank that since 2006, 117 cases have been concluded through the Administrative Sanctions Procedure (ASP)/settlement procedure. This has resulted in the sum of €61,608,525 being imposed by way of monetary sanctions.

Public statements on the Central Bank’s settled ASP cases are available publicly on the Central Bank’s website.

Attached is a table in response to the specific question from the Deputy detailing settled ASP cases involving the types of entities and timespan specified.

Year		Credit Institutions		Retail Credit Firms		Credit Servicing Firms		Other
	Fines	Amount	Fines	Amount	Fines	Amount	Fines	Amount
2018	0	€0	0	€0	0	€0	0	€0
2017	2	€5,425,000	0	€0	0	€0	9	€1,814,970
2016	2	€4,725,000	1	€4,500,000	0	€0	6	€2,850,750
2015	1	€5,000,000	0	€0	0	€0	6	€2,333,040
2014	3	€4,465,000	0	€0			8	€957,450
2013	2	€1,040,000	0	€0			14	€5,308,215

Please note Credit Servicing firms were not regulated before 2015 and became regulated via the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015.

Corporation Tax

Ceisteanna (120)

Michael McGrath

Ceist:

120. Deputy Michael McGrath asked the Minister for Finance the gross amount of corporation tax paid in 2017 by the top ten multinational groups as measured by corporation tax paid; the proportion this represents of overall corporation tax paid in 2017; the gross amount paid by the top 20 multinational groups in 2017; the proportion this represents; and if he will make a statement on the matter. [14834/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the gross amount of Corporation Tax paid by the ten largest multinational groups (in Corporation Tax payment terms) was €3,436 million in 2017. This represented 37 per cent of the total gross Corporation Tax payments that year. The gross amount of Corporation Tax paid by the top 20 multinational groups was €4,207 million in 2017. This represented 45 per cent of the total gross Corporation Tax payments that year. These figures are provisional figures.

I am also advised that Revenue will publish a detailed analysis of the most recently available Corporation Tax data in April.

NAMA Loan Book Value

Ceisteanna (121)

Michael McGrath

Ceist:

121. Deputy Michael McGrath asked the Minister for Finance the book value and estimated market value of the loan assets held by NAMA by geographic area, for example, Ireland, the UK and so on; if a decision has been made to accelerate the disposal of NAMA's assets; and if he will make a statement on the matter. [14835/18]

Freagraí scríofa

Minister for Finance

The most recent details on NAMA's remaining portfolio are available in the Agency's quarterly section 55 accounts for Q3 of 2017 which are laid before the Houses of the Oireachtas and which are publically available on the NAMA website. The latest accounts for Q3 2017 outline that the carrying value of the Agency’s remaining loan portfolio, as at 30 September 2017, net of cumulative impairment, was €3.7 billion.

In relation to the geographic breakdown of NAMA’s remaining portfolio, I am advised that, as of 30 June 2017, 85% of the assets securing NAMA’s loan portfolio were located in Ireland, 10% were located in the UK, 4% was located in the rest of the world and the remaining 1% related to non-real estate assets. I am advised that this information will be updated by reference to 31 December 2017 when NAMA’s 2017 Annual Report is published in June 2018.

The Deputy will be aware that as Minister for Finance, I have no role in respect of NAMA's commercial operations. I am advised that NAMA expects to complete the majority of its work by end-2020 and that its residual loan portfolio will require intensive case management and asset management if the projected terminal surplus is to be realised. As such I do not envisage setting a shorter timeframe which could have the effect of reducing the projected terminal surplus, which is currently estimated at €3 billion, assuming market conditions remaining favourable.

Question No. 122 answered with Question No. 101.

Tax Code

Ceisteanna (123)

Niall Collins

Ceist:

123. Deputy Niall Collins asked the Minister for Finance his views on a proposal by an organisation (details supplied). [14917/18]

Freagraí scríofa

Minister for Finance

EU VAT law provides that supplies of goods and services outside the EU are zero-rated for VAT purposes. For exporting businesses this means they would be in a permanent repayment position when it comes to any VAT paid on their business inputs. To minimise the administrative burden and cash-flow loss for exporting business, EU and Irish VAT law allows for supplies made to exporting companies to be made free of VAT.

Section 56 of the VAT Consolidation Act 2010 provides that persons who supply goods and services to exporting businesses can zero rate those supplies provided the exporting business provides the suppliers with a copy of an authorisation issued by the Revenue Commissioners. A business can only qualify for this authorisation where they export 75% or more of their supplies.

Section 56 is designed to assist businesses that are engaged primarily in exporting. Reducing the qualifying threshold to 50% of turnover would represent a significant policy change in that it would bring businesses with 50% of their supplies in the domestic market within the scope of the scheme, affecting the competitiveness of other domestic operators who would not qualify. Reducing the export threshold to 50% would also greatly expand the volume of zero-rated invoices issued for domestic supplies of goods and services. This would involve an increased risk of abuse and necessitate increased controls and checks by Revenue. For these reasons I have no plans to change the Section 56 export threshold level.

Flood Relief Schemes

Ceisteanna (124)

Willie Penrose

Ceist:

124. Deputy Willie Penrose asked the Minister for Public Expenditure and Reform if his Department is liaising with Westmeath County Council with a view to putting in place an appropriate flood relief scheme for Mullingar, County Westmeath, with a view to ensuring that adequate protection is put in place for Mullingar and its environs; and if he will make a statement on the matter. [14679/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping, the development of preliminary flood risk management options and the production of Flood Risk Management Plans.

The Plans are one of the outputs from the CFRAM Programme that is being delivered by the OPW in partnership with all local authorities, including Westmeath County Council.

Mullingar was studied as part of the Shannon (CFRAM) Programme. The proposed measure outlined in the Flood Risk Management Plan for Mullingar is to provide ongoing maintenance to the existing Mullingar Flood Relief Scheme which was completed in 2010.

In Summer 2017, the OPW finalised and submitted the Plans to the Department of Public Expenditure and Reform for an independent review of the environmental assessments. Having received the outcomes of the independent review, the Commissioners of Public Works have submitted the Flood Risk Management Plans to the Minister for Finance and Public Expenditure and Reform for approval.

Flood Risk Assessments

Ceisteanna (125)

Stephen Donnelly

Ceist:

125. Deputy Stephen S. Donnelly asked the Minister for Public Expenditure and Reform the status of works under consideration for flood defence in County Wicklow; and if he will make a statement on the matter. [14770/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans.

The following areas in Co Wicklow were assessed under the CFRAM Programme: Arklow, Ashford, Rathnew, Aughrim, Avoca, Baltinglass, Blessington, Greystones, Kilcoole, Newcastle and Wicklow town.

In Summer 2017, all Plans were submitted to the Department of Public Expenditure and Reform (D/PER) for an independent review of the environmental assessments. The Commissioners of Public Works have now submitted the Flood Risk Management Plans to the Minister for Finance and Public Expenditure and Reform for approval.

Arklow Flood Relief Scheme

Wicklow County Council is leading the assessment and development of a viable, cost effective and sustainable Flood Relief Scheme for the Avoca River, Arklow. A Feasibility Report has identified an economically viable scheme for the town. A Public Information Day on the emerging preferred scheme was held in November 2016. Work has been progressing on the development of the proposed scheme and it is hoped to submit the proposed scheme to An Bord Pleanála for planning permission by Quarter 3, 2018, with possible construction works to commence by end of 2019. Funding will be provided by the OPW.

Minor Works

There are currently no applications on hand under the Minor Flood Mitigation Works and Coastal Protection Scheme for County Wicklow.

Flood Relief Schemes

Ceisteanna (126)

Marcella Corcoran Kennedy

Ceist:

126. Deputy Marcella Corcoran Kennedy asked the Minister for Public Expenditure and Reform the status of the maintenance of the River Shannon; his plans to allow for additional river maintenance works to be carried out in March and April 2018 to help alleviate the damaging effects of flooding for farmers in the river's catchment area; and if he will make a statement on the matter. [14530/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Shannon Flood Risk State Agency Co-ordination Working Group was established in early 2016 by the Government across all of the State Agencies involved with the River Shannon. The Group is building on the existing work and commitment of all the State Agencies involved in flood risk and continues to enhance the ongoing co-ordination and co-operation between members.

During 2017, targeted maintenance works were carried out at Madden’s Island, downstream of Banagher, to improve the conveyance capacity and navigation of the Shannon. Further works were due to be carried out last month however this was not possible due to the high water level on the channel. This work will be carried out later this year during the next cutting season.

Following the receipt of consent in September 2017 from the National Parks and Wildlife Service of the Department of Culture, Heritage and the Gaeltacht, targeted works have been planned for a number of other locations for the appropriate seasonal windows. To date, work has been carried out at Muckinish and Shannon Grove (Kilnaborris), in accordance with the consent provided. Further work at these and other locations for which consent applies will be planned in terms of the seasonal restrictions that may apply to the types of activity required at each site. Accordingly it is not possible to undertake additional river maintenance works in March and April.

Departmental Staff Training

Ceisteanna (127, 128)

Timmy Dooley

Ceist:

127. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform the amount that his Department has spent on social media training and consultancy in each year since 2016. [14573/18]

Timmy Dooley

Ceist:

128. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform if training has been delivered in his Department on the use of social media (details supplied); the frequency and cost of this training; and if he will make a statement on the matter. [14589/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 127 and 128 together.

In response to the Deputy’s questions, training has been delivered in my department on the use of social media. The details of this training and cost are detailed in the list below.

2016 - No Spend

2017

Name	Course	Cost
Certificate for Civil Service Press Officers	12 days	€1,560.00
Certificate in Social Media	6 days	€1,890.00
-	Total:	€3,450.0

2018 - No Spend

Departmental Contracts

Ceisteanna (129)

Bríd Smith

Ceist:

129. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform the value of contracts for services awarded to a company (details supplied) by his Department since 2010, in tabular form; and the type of work undertaken by the company. [14634/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

In 2015, my Department revised the Dignity at Work policy. In conjunction with this, a framework of external investigators was put in place following a procurement process organised by the Office of Government Procurement.  Acrux Consulting Ltd. were awarded a place on this Framework on 27 March 2015. This placement allows for Framework membership and is not a contract.

Separately, the Office of Government Procurement has, since 2010, paid €10,317.91 to Acrux for training as set out below.

Training	Cost
Civil Service Dignity at Work Policy	€1,260.18
Civil Service Dignity at Work Policy	€8,716.61
Team Training Workshop	€341.12
Overall total	€10,317.91