Tax Reliefs Availability

Ceisteanna (135)

Pearse Doherty

Ceist:

135. Deputy Pearse Doherty asked the Minister for Finance the number and cost of a tax scheme in place to attract skilled workers from abroad; his plans to review or extend these schemes; and if he will make a statement on the matter. [20960/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I assume that the deputy is referring to the Special Assignee Relief Programme (SARP), which is provided for in section 825C Taxes Consolidation Act 1997.

SARP allows income tax relief on a portion of income earned by an employee who is assigned by his or her employer to work in the State for that employer or for an associated employer. The relief can generally be claimed for a maximum period of five consecutive years, commencing with the year of first entitlement.

The aim of SARP is to reduce the cost to employers of assigning skilled individuals already employed by their companies from abroad to take up positions in the Irish based operations of the employer or an associated company, thereby facilitating the creation of jobs and the development and expansion of business in Ireland. The intention is that the recipients of SARP relief will assist with the establishment of additional functions for their employers in Ireland and, due to a transfer of skills, these functions will be able to operate without the assistance of SARP after a period. SARP is limited to existing overseas employees of companies and is not available to newly-recruited individuals.

I am advised by Revenue that for each of the years 2012, 2013, 2014 and 2015 (the most recent year for which figures are available) the following table sets out the number of persons who availed of SARP and the amounts claimed:

Year

Claimants

Total Claimed €,000

2012

11

100

2013

121

1,900

2014

302

5,900

2015

586

9,500

As part of my department’s review of SARP in 2014, proposals to include non-resident recruits rather than restricting it to employees moving within an organisation were considered. However, the review found that to apply SARP to such hirees could result in individuals from outside the State being cheaper to employ than Irish residents, thereby resulting in the potential displacement of employment for Irish residents in favour of non-resident job-seekers.

The relief will close to new entrants at the end of 2020 and the question of any extension of the scheme beyond 2020 is a matter that I will consider closer to the time.

Finally, comprehensive guidance notes on this relief can be found on the Revenue website using the following link - Tax and Duty Manual 34-00-10. I am also advised by Revenue that detailed reports regarding the Special Assignee Relief Programme (SARP) are published on the Revenue Commissioners’ webpage located at:

www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/special-asignee-relief-programme.aspx.

These reports provide information on the conditions, eligibility and the calculation of the relief and statistics covering the uptake of the relief and the cost to the Exchequer up from 2012 to 2015.

Tax Code

Ceisteanna (136)

Pearse Doherty

Ceist:

136. Deputy Pearse Doherty asked the Minister for Finance his views on whether the Revenue Commissioners guidance in 2017 on the taxation of temporary foreign workers is unclear or in need of revision; and if he will make a statement on the matter. [20961/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I assume the Deputy is referring to Tax and Duty Manual 42.4.65 which Revenue issued on 17 April 2018. I am advised by Revenue that its recent updating of guidance on the tax position of foreign assignees followed extensive consultation by Revenue with practitioner representatives. This included detailed discussions in early March on draft text which had been circulated for comment to the practitioner representatives in December 2017.

In its latest guidance, I am advised that Revenue has significantly reduced the burden for employers. In particular, this has been achieved by:

- in the case of assignees from a country with which Ireland has a double taxation agreement (DTA), the extension of the previous workday test for ‘automatic release’ from the obligation to operate PAYE from 30 days to 60 days,

- the introduction of a new two year test, rather than a more restrictive one year test,

- retention of the 30 day test for non-DTA assignees and its extension to cover a two year period, and

- the guidance providing greater clarity for employers and practitioners.

There has been no change in the requirement for employers to track the number of days worked in Ireland by their foreign assignees. However, the 21 day deadline for employers to apply to Revenue for release from the obligation to operate PAYE has been extended to 30 days. This will facilitate a more practical approach by employers. At the request of practitioner representatives, numerous new examples of the practical operation of the guidance have been provided in the Manual.

I am further advised by Revenue that an individual’s liability to income tax and an employer’s obligation to operate PAYE are two separate issues. Under the terms of Revenue’s guidance, and where it is appropriate, Revenue will release an employer from the obligation to operate the PAYE system in circumstances where the assignee will not have a tax liability in the State in respect of his or her employment income.

Banking Sector Investigations

Ceisteanna (137)

Michael McGrath

Ceist:

137. Deputy Michael McGrath asked the Minister for Finance if the complaints process of a bank (details supplied) involves independent persons not employed by the bank; and if he will make a statement on the matter. [21049/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

It is a matter for the Central Bank to oversee the operation of regulated financial service providers in Ireland. That said, in an effort to assist the Deputy, I have contacted Ulster Bank about its complaints process in relation to Global Restructuring Group.

Ulster Bank have confirmed that following on from the UK Financial Conduct Authority’s (FCA) appointment of a Skilled Person to undertake a review, Royal Bank of Scotland in an agreement with the FCA, announced two measures in November 2016:

- a GRG complaints process, overseen by an Independent Third Party (ITP) - Sir William Blackburne, a retired UK High Court Judge, and

- a voluntary automatic refund of complex fees paid by customers in GRG during the period between 2008 and 2013

Ulster Bank Ireland DAC has voluntarily fully participated in this process.

State Claims Agency

Ceisteanna (138)

Noel Rock

Ceist:

138. Deputy Noel Rock asked the Minister for Finance the financial information held by the State Claims Agency (details supplied) in each of the years 2012 to 2017, in tabular form. [21074/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

It was not possible for the State Claims Agency to provide the information sought in the time available and, therefore, I will make arrangements to provide the information in line with Standing Orders.

Budget Consultation Process

Ceisteanna (139, 140, 141)

Pearse Doherty

Ceist:

139. Deputy Pearse Doherty asked the Minister for Finance if the €400 million earmarked for demographic change he specified at the Oireachtas Select Committee on Budgetary Oversight on 18 April 2018 was included in the calculations for the fiscal space already published; if it represents additional demographic pressures since budget 2018 and reduces the €3.2 billion of fiscal space forecast to be available for budget 2019; and if he will make a statement on the matter. [21132/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

140. Deputy Pearse Doherty asked the Minister for Finance if the €400 million allocated to public sector pay he specified at the Oireachtas Select Committee on Budgetary Oversight on 18 April 2018 was included in the calculations for the fiscal space already published; if it represents additional public pay agreements since budget 2018 and reduces the €3.2 billion of fiscal space forecast to be available for budget 2019; and if he will make a statement on the matter. [21133/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

141. Deputy Pearse Doherty asked the Minister for Finance if the €300 million earmarked for carryover spending he specified at the Oireachtas Select Committee on Budgetary Oversight on 18 April 2018 was included in the calculations for the fiscal space already published; if it represents additional carryover since budget 2018 and reduces the €3.2 billion of fiscal space forecast to be available for budget 2019; and if he will make a statement on the matter. [21135/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 139 to 141, inclusive, together.

Table 3 on page 22 of the Summer Economic Statement (SES) 2017 set out an indicative amount of €3.2 billion, based on the parameters available at that time, in respect of the estimate of net fiscal space for 2019.

In arriving at the net amount the fiscal space impact of certain pre-committed voted expenditure was deducted from gross fiscal space. The nominal amounts relating to these pre-commitments were set out in Table 1.3 on page 9 of the Mid-Year Expenditure Report (MYER) 2017, with €0.4 billion for demographics.

In relation to current expenditure there are pre-commitments that arose after the SES of €0.7 billion that would need to be funded from the current expenditure fiscal space amount or from savings/reprioritisations.

There is a cost of €0.4 billion arising in 2019 from the Public Services Stability Agreement. This amount was not included as pre-committed expenditure in the SES or the MYER as the agreement at that stage was subject to ratification by the membership of the Public Service Unions and Staff Associations.

In addition, as outlined in the Expenditure Report 2018, there was a cost estimated, at that time, of €0.2 billion in respect of the carryover impact of certain Budget 2018 measures that would need to be met from the available resources for 2019 or from savings/reprioritisation. The current estimate of the carryover impact into 2019 is €0.3 billion. This estimated carryover impact will be reviewed in the context of this year’s MYER to take account of expenditure developments during the first half of this year.

The Stability Programme Update (April) 2018 provides for an increase of €2.8 billion in Voted Expenditure, including pre-committed expenditure of €2.6 billion for next year. This pre-committed expenditure was composed of:

- €1.5 billion (National Development Plan - capital related)

- €0.4 billion (to provide for the public sector pay agreement)

- €0.4 billion (to provide for demographics)

- €0.3 billion (to provide for the carryover costs next year of measures introduced in the budget for this year).

After providing for the increase of €2.8 billion in Voted Expenditure there is a deficit of 0.1 per cent of GDP projected for next year.

The available parameters will become clearer in the next couple of weeks (the Commission recently published its spring forecasts and these are an important input).

I note that the IMF, in its press briefing on the conclusion of the 2018 Article IV mission, have stated that the focus on fiscal space is not helpful and a good stance on fiscal policy is needed.

To that end, as I have stated on numerous occasions, the Government will formulate budgetary policy based on what is right for the economy and not what is legally permissible. The Government will not adopt pro-cyclical policies that jeopardise the sustainability of our public finances and our future living standards.

National Development Plan Expenditure

Ceisteanna (142)

Pearse Doherty

Ceist:

142. Deputy Pearse Doherty asked the Minister for Finance the impact on fiscal space of the National Development Plan 2018-2027 by year in each of the next five years; and if he will make a statement on the matter. [21138/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Forecasts beyond 2021 have not been compiled or published by my Department.

There is no impact resulting from the National Development Plan (NDP) in 2018. The impact for 2019 - 2021 was set out in my response to PQ number 160 on 27 February 2018 and is reproduced here for the Deputy's convenience.

The specific impact of the NDP out to 2021 on the Exchequer Borrowing Requirement (EBR), based on certain assumptions, is set out below.

The NDP announced four new funds that will begin operating from 2019. These are the Rural, Urban, Innovation and Climate Action Funds. The funds will be partly covered by an unallocated capital reserve in the first instance, leaving an additional cost, which will both pre-commit unallocated available resources and worsen the EBR.

The net nominal EBR increase resulting from the three funds is set out in the last row of the following table:

New Funds, € millions

2019

2020

2021

Rural

55

80

80

Urban

100

120

150

Innovation

20

30

40

TOTAL

175

230

270

Less Capital Reserve

-98

-136

-94

Net Increase

77

94

176

As the Climate Action Fund, set out in the following table, will be funded from the National Oil Reserves Agency (NORA) levy, it will have no impact on Voted Expenditure or the EBR.

€ millions

2019

2020

2021

Climate Action Fund

20

30

40

In calculating the impact under the Expenditure Benchmark, it is assumed that both the Urban and Rural Funds will be recorded as gross fixed capital formation (i.e. subject to ‘capital smoothing’ over four years) and that the Innovation and Climate Action Funds will be treated as capital grants (i.e. not smoothed). A further assumption is that the funding from the capital reserve will offset the Rural and Urban Funds.

Should the operation of the funds change these assumptions then the figures that follow will need to be amended.

The cost of the four funds is therefore:

€ millions

2019

2020

2021

Available resources Used

54

36

54

I would stress once again that, notwithstanding the legal position, budgetary policy will be formulated on the basis of what is right for the economy and pro-cyclical policies of the past will not be adopted.

Budget Measures

Ceisteanna (143)

Pearse Doherty

Ceist:

143. Deputy Pearse Doherty asked the Minister for Finance if already published fiscal space figure projections include the allocation of €500 million to the rainy day fund for each of the next five years; and if he will make a statement on the matter. [21139/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In Budget 2018, I announced my intention to capitalise the Rainy Day Fund with €1.5 billion from the Ireland Strategic Investment Fund.

The budgetary projections published last month in the Stability Programme Update 2018 (Table 8) include provision for €500 million to the Rainy Day Fund for each year from 2019 to 2021 (the end of the time horizon projected in the update).

My officials are engaged in the preparation of legislation to implement these proposals, and I expect to be in a position to advance this legislation in the near future.

State Claims Agency Data

Ceisteanna (144)

Maurice Quinlivan

Ceist:

144. Deputy Maurice Quinlivan asked the Minister for Finance the number of claims pending against the State Claims Agency relating to historical child sexual abuse; and if he will make a statement on the matter. [21157/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The State Claims Agency (SCA) is part of the National Treasury Management Agency (NTMA), which is a body under the aegis of the Minister for Finance. The SCA have supplied the information included in this report, and confirmed that it is correct as of 14th May 2018.

This report shows the number of active claims managed by the State Claims Agency in relation to historical child sexual abuse claims as recorded on the National Incident Management System (NIMS). This is hosted by the SCA for the Health Service Executive (HSE), other Healthcare enterprises and State Authorities.

Historical child sexual abuse claims are assumed to be claims with a date of Incident recorded on NIMS as 2000 or earlier.

With regard to the number of active claims against the SCA relating to historical child sexual abuse, please see Table 1.

Table 1: Active historical child sexual abuse claims

Location

Number of active claims

Minister of Justice (Dept. of Justice, An Garda Síochána, Irish Prison Service, Courts Service)

13

Childrens Detention Schools

5

Day Schools

116

HSE

110

Residential Institutions

12

Tusla

31

Total

287

Definitions:

National Incident Management System (NIMS): Incidents (which include claims) are reported using the “National Incident Management System”. This is hosted by the State Claims Agency (SCA) for the HSE, other Healthcare enterprises and State Authorities. An incident can be a harmful Incident (Adverse Event), no harm incident, near miss, dangerous occurrence (reportable circumstance) or complaint.

Claim : A claim refers to notification of intention to seek compensation for personal injury and/or property damage where it is alleged the State was negligent. The application may be in the form of a letter of claim, an InjuriesBoard.ie application, or a written/oral request.

State Claims Agency Data

Ceisteanna (145)

Maurice Quinlivan

Ceist:

145. Deputy Maurice Quinlivan asked the Minister for Finance the number of claims settled by the State Claims Agency in each of the years 2008 to 2017 and to date in 2018 relating to historical child sexual abuse; the value of these settlements in each year; and if he will make a statement on the matter. [21158/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The State Claims Agency (SCA) is part of the National Treasury Management Agency (NTMA), which is a body under the aegis of the Minister for Finance. The SCA have supplied the information included in this report, and confirmed that it is correct as of 14 May 2018.

This report shows the number of claims finalised between 2008 to date by the SCA in relation to historical child sexual abuse claims as recorded on National Incident Management System (NIMS).

Historical child sexual abuse claims are assumed to be claims with a Date of Incident recorded on NIMS as 2000 or earlier.

With regard to the number of claims settled by the SCA in each year from 2008 to 2018, please see Table 1.

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Total

Total Number of Finalised Claims

79

130

53

85

27

33

7

35

85

39

16

587

Table 1: Finalised historical child sexual abuse claims

With regard to the value of the damages awarded in each year, please see Table 2.

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018*

Total (€)

Total (€)

456,250

889,100

715,500

229,828

575,000

0

30,000

221,500

45,000

653,930

0

3,816,108

Table 2: Finalised historical child sexual abuse claims with damages awarded

In a significant number of historic abuse cases, the State has no legal liability to the Plaintiffs and it is not uncommon for such cases to be resolved with no damages payments being made by the State. This accounts for the lack of damages paid in 2013.

Tax Code

Ceisteanna (146)

Pearse Doherty

Ceist:

146. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that could be expected to be raised if intangible assets onshored between 2015 and 2018, the period in which there was no cap on the amount assets could be used to write off against profit were taxed at the current 80% cap; and if he will make a statement on the matter. [21172/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

It is important to note that the imposition of a cap on capital allowances for intangible assets only affects the timing of relief in the form of capital allowances and related interest expenses for intangible assets but would not affect the overall quantum of relief. This is because any amounts restricted in one accounting period as a result of a cap would be available for carry forward and utilisation in a subsequent accounting period, subject to the application of the cap in that period. Therefore no additional tax revenue would be raised in the long-term through the Deputy's proposal.

I am advised by Revenue that in the short-term there could be a large theoretical cash-flow gain, tentatively estimated to be in the region of €750m, from the introduction of an 80 per cent cap on intangible assets onshored between 2015 and 11 October 2017. It is important to be clear that such a change would not lead to more tax overall and this simply a timing matter - to present this as additional tax for the exchequer would not be correct. I do not wish to repeat the mistakes of the past by increasing expenditure through unsustainable tax changes. I would also note that this estimate is on the basis of assuming no behavioural change on the part of the companies involved. Furthermore, as the Deputy will be aware, changes to tax law are generally made on a prospective basis such that they apply only from the date on which they have legal effect.

The 80% cap on Capital Allowances for Intangible Assets was re-introduced in Finance Bill 2017 for all assets onshored from 11 October 2017.

Corporation Tax Regime

Ceisteanna (147)

Pearse Doherty

Ceist:

147. Deputy Pearse Doherty asked the Minister for Finance the estimated additional corporation tax that could be expected if the bailed out banks had applied to them a 25% limit on losses that could be carried forward in a year and a five year absolute limit in which such losses could be used; and if he will make a statement on the matter. [21173/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Corporation Tax Loss Relief is provided for by Section 396 of the Taxes Consolidation Act (TCA) 1997. It allows for losses incurred in the course of business to be accounted for when calculating tax liabilities. Loss relief for corporation tax is a long standing feature of the Irish Corporate Tax system and is a standard feature of Corporation Tax systems in all OECD countries.

Section 396C of the TCA 1997 previously restricted losses for NAMA participating institutions to offset losses against 50% of taxable profits in a given year. At the time of its introduction the Government had limited involvement in the banking system. However, by Finance Bill 2013, this measure was considered to have outlasted its initial purpose as, due to the substantial holdings that the State had by that time acquired in the banking sector (99.8% AIB and 15% of Bank of Ireland at the time), the restriction was deemed to be acting against the State’s interests.

Section 396C was repealed to reduce the State’s role as a ‘backstop’ provider of capital and to protect the existing value of the State’s equity and debt investments. With the removal of Section 396C, AIB and BOI were restored to the same position as other Irish corporates including other Irish banks which effectively levelled the playing field.

It is not possible to quantify the estimated additional corporation tax revenue from the measures referred to by the Deputy, as this would depend on the future profitability of the banks. Nevertheless, as I have previously stated, I do not intend to change how tax losses are currently taxed for Irish banks, including those that were bailed out by the State, as I believe there could be consequences that would make it difficult for me to fulfil other objectives in respect of the Irish banking system.

There would be a material negative impact on the valuation of the States investments from any change in tax treatment of accumulated losses where the banks are concerned. It is critically important to understand that the State is actually getting value today from these deferred tax assets through our share sales.

Despite the scale of losses accumulated the banks are contributing to the Exchequer through the financial institutions levy. To recognise the part that the banks played in the financial crisis, in 2013, the Government decided that the banking sector should make an annual contribution of approximately €150 million to the Exchequer for the period from 2014 to 2016. In Budget 2017, the payment of this levy was extended until 2021. It was anticipated that the bank levy could be expected to raise €750 million over five years.

At Committee Stage of Finance Act 2017 I agreed that my officials will produce a report on the effect on limiting tax reliefs on losses carried forward for banks. It is envisaged that this report will be submitted to the FinPer Committee in June 2018.

VAT Exemptions

Ceisteanna (148)

Pearse Doherty

Ceist:

148. Deputy Pearse Doherty asked the Minister for Finance the way in which and when he will implement the budget decision to put in place a VAT refund scheme for charities; and if he will make a statement on the matter. [21174/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In line with my Budget 2018 announcement, a VAT compensation scheme for charities will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive, from a total capped fund of €5m.

Work on this scheme by officials of my Department and the Office of the Revenue Commissioners is ongoing. While the high level principles of the scheme were published on my Department’s website on Budget Day, the wider parameters of the operation of the scheme need to be agreed, so that guidelines for charities can be published along with the Ministerial Order underpinning the scheme.

Until such time as the wider parameters of the scheme have been fully agreed, and guidelines have been published, it is not possible to comment on the details of the final implementation.

Tax Code

Ceisteanna (149)

Pearse Doherty

Ceist:

149. Deputy Pearse Doherty asked the Minister for Finance the estimated additional revenue that would be raised by increasing the bank levy by 10 percentage points and by 10%, respectively; and if he will make a statement on the matter. [21175/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology. This took place during 2016, including a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, in order to protect the €150 million annual yield. Minister Noonan committed to the introduction of a rolling two-year series of base years which will introduce a new base year of 2017 for calculating the levy in 2019 and 2020, and a new base year of 2019 for calculating the levy in 2021. The levy rate may require updating when the base year changes to protect the €150 million annual yield.

The current rate is 59% of the amount paid in DIRT by accounts within each institution in 2015.

Increasing the current rate by 10 percentage points would give a rate of 69%. If everything else was held equal, a rate of 69% would give an approximate yield of €175 million.

Increasing the current rate by 10% would give a rate of 64.9%. If everything else was held equal, a rate of 64.9% would give an approximate yield of €165 million.

Financial Services Regulation

Ceisteanna (150)

Pearse Doherty

Ceist:

150. Deputy Pearse Doherty asked the Minister for Finance the estimated saving that would accrue from moving the entire cost of regulation of the financial sector onto the industry; and if he will make a statement on the matter. [21176/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The Central Bank's total funding requirement for financial regulation activity is determined on an annual basis by the resources required to discharge its legal responsibilities under domestic and EU law. Section 32D and 32E of the Central Bank Act 1942, as amended, provide that the Central Bank Commission may make regulations relating to the imposition of levies and fees on the financial services sector in respect of the recoupment of the costs of financial regulation.

As it stands, the financial services industry currently funds 65% of the costs incurred by the Central Bank for financial regulation, with certain exceptions including the banks which had participated in the Eligible Liabilities Guarantee (ELG) Scheme, namely AIB, Bank of Ireland and Permanent TSB, which are required to fund 100% of the Central Bank's regulatory costs. Credit Unions currently contribute approximately 8% to the cost of their regulation.

The industry funding levies currently recoup 65% of the costs of financial regulation from industry (with certain sectoral exceptions). This means that the subvention from the Central Bank amounts to approximately 35% of the total cost. What this translates to in monetary terms will be determined by the resources required by the Bank to discharge its legal responsibilities during a given year.

The total cost of financial regulation in 2017 was approximately €171 million; industry levies were approximately €95 million with the remainder funded by way of subvention by the Bank. Therefore in the order of €76 million of the Central Bank's 2017 surplus income was redirected to make up for the difference between the costs of regulation and the funding received from the financial services industry, which would otherwise have been surrendered to the Exchequer. As a point of reference, the Central Bank surplus income for 2017 surrendered to the Exchequer amounted to €2,101 million.

Tax Collection

Ceisteanna (151)

Pearse Doherty

Ceist:

151. Deputy Pearse Doherty asked the Minister for Finance the extra revenue collected in each of the years since 2011 due to increased enforcement and staffing of the Revenue Commissioners; the target for this extra revenue in 2019; and the amount extra this revenue may increase in net terms if additional staff were allocated to areas (details supplied). [21177/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that Revenue's Comprehensive Review of Expenditure 2014 estimated that by increasing audit staffing resources by c.100 staff an additional exchequer yield of €50m per annum could be achieved.

It was estimated that by increasing staff on compliance projects such as oils, tobacco and alcohol by 100 could raise €20m per annum. On this basis it is estimated that increasing staff on compliance projects such as oils, tobacco and alcohol by 25 could raise €5m per annum.

Revenue did not receive additional resources in the years 2011 to 2014. The Budgets for 2015, 2016, 2017 and 2018 provided Revenue with a staff increase of 366 (126, 50, 90 and 100 respectively) to deal with a wide variety of staffing requirements across a range of functions including audit and compliance, debt management, the administration of local property tax, international tax, etc.

Revenue undertook and published an Evaluation of Budget 2016 Compliance Measures (www.revenue.ie/en/corporate/documents/research/budget-2016-compliance-measures.pdf). This report includes an analysis of the additional revenues raised as a result of the provision of additional staff resources and indicates that the estimates of additional yields by Revenue from the measures introduced in Budget 2016 have been delivered. Similar analysis of Budget 2017 measures will be undertaken during 2018 when suitable data is available and will be published. It is anticipated that revenues arising in 2019 from additional resources provided in 2015 to 2018 will be in line with the estimates provided in Revenue’s Comprehensive Review of Expenditure 2014, taking account of the lead in time to recruit and train new auditors.

Tax Credits

Ceisteanna (152, 153)

Pearse Doherty

Ceist:

152. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the self-employed tax credit to €1,300, €1,400, €1,500 and €1,650, respectively in circumstances (details supplied). [21178/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

153. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the self-employed tax credit to €1,300, €1,400, €1,500 and €1,650, respectively; and if he will make a statement on the matter. [21179/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 152 and 153 together.

I am advised by Revenue that the cost of increasing the earned income tax credit to the levels set out by the Deputy, in addition to introducing a taper of this increase such that those with incomes in excess of €100,000 would only be able to avail of the existing level of the earned income tax credit of €1,150 is set out in the following table:

Earned Income Credit €

First Year Cost €m

Full Year Cost €m

1,300

11

20

1,400

19

34

1,500

26

48

1,650

38

68

I am advised by Revenue that the data above provide the cost of tapering the earned income credit on a taxpayer unit basis, i.e. married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit, and it is not possible to provide this costing on an individual taxpayer basis. These estimates are generated on estimated incomes in 2018, using latest actual data for the year 2015, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.

I am further advised by Revenue that the cost of increasing the earned income tax credit is given on page 6 of the Ready Reckoner which is available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

While the exact amounts requested by the Deputy may not be given in this table, they may be calculated on a pro-rata or straight-line basis from the costs shown.