Written Answers Nos. 228-252
228. Deputy Thomas P. Broughan asked the Minister for Finance the estimated amount of additional revenue that would be generated if the betting tax was increased from 1% to 3% and 5%; and if he will make a statement on the matter. [33508/18]
Amharc ar fhreagraI am advised by Revenue that a Ready Reckoner is available on the Revenue Statistics webpage at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. This Ready Reckoner shows a wide range of detailed information, including in regard to Betting Duty rates (page 23).
229. Deputy Thomas P. Broughan asked the Minister for Finance the estimated yield through the implementation of a vacant property tax of 2.5%, 5%, 7.5% and 10%, respectively; and if he will make a statement on the matter. [33515/18]
Amharc ar fhreagraI am informed that no distinction is made in the Tax Code between vacant and occupied properties. It is not possible therefore to derive estimates from Revenue statistics in relation to the Deputy's question.
Section 86 of Finance Act 2017 provides that I shall prepare and lay before Dail Éireann a report on the issues relating to making provision in law for a tax on vacant residential property, the administration and implementation of such a tax, the availability of reliable baseline data and the estimated annual revenue from any such tax within nine months of the passing of the Act. Work on this report is ongoing and it will be laid before Dáil Éireann in the coming months.
230. Deputy Thomas P. Broughan asked the Minister for Finance the estimated amount that would be raised in 2019 if the minimum effective tax rate of persons earning in excess of €300,000 per year increased from 30% to 35%; and if he will make a statement on the matter. [33517/18]
Amharc ar fhreagraI assume the Deputy is referring to the high earners restriction which limits the use of certain tax reliefs and exemptions (known as “specified reliefs”) by high-income individuals. A comprehensive analysis of the high earners restriction is published on an annual basis. These reports are available on my Department's website, http://www.finance.gov.ie, and on Revenue’s website at:
http://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/high-income-earners-reports.aspx
The latest full year for which information is published is 2014 and updates for 2015 and 2016 will be published in due course.
The Deputy will note from Table 2A on Page 8 of the 2014 Report (see below), that the average effective rate of income tax, for cases with income in excess of €300,000 per year to which the high earners restriction applies, was already greater than 35%. As the average effective rate already exceeds the higher rate proposed by the Deputy, no additional yield would arise from increasing the rate from 30% to 35%.
|
Range of Adjusted Income |
Number of Cases |
Income Tax before Restriction |
Income Tax after Restriction |
Additional Income Tax after application of Restriction |
Average Effective Rate before application of Restriction |
Average Effective Rate after application of Restriction |
Tax including USC payable after Restriction |
Average Effective Rate (including USC) |
|
€ |
€ |
€ |
% |
% |
€ |
% |
€ |
% |
|
Under 125,000 |
15 |
182,391 |
287,303 |
104,912 |
6.60% |
11.10% |
459,126 |
19.22% |
|
125,001 to 160,000 |
140 |
899,292 |
2,570,460 |
1,671,168 |
5.90% |
11.10% |
4,707,090 |
21.30% |
|
160,001 to 200,000 |
124 |
1,143,413 |
3,991,765 |
2,848,352 |
8.30% |
17.20% |
6,641,254 |
28.81% |
|
200,001 to 250,000 |
125 |
1,970,366 |
6,216,234 |
4,245,869 |
10.60% |
21.20% |
9,144,940 |
31.41% |
|
250,001 to 325,000 |
118 |
3,634,673 |
9,097,140 |
5,462,467 |
14.10% |
25.60% |
12,392,497 |
35.18% |
|
325,001 to 399,999 |
74 |
2,487,914 |
7,715,593 |
5,227,679 |
15.40% |
28.60% |
10,341,375 |
38.31% |
|
Totals |
596 |
10,318,049 |
29,878,495 |
19,560,447 |
10.36% |
19.53% |
43,686,282 |
29.80% |
The 2014 report is available at the following link:
http://www.revenue.ie/en/corporate/documents/research/ror-2014-report.pdf.
231. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on recent research available to his Department on the relative annual direct or indirect tax burden on each Irish household and member of the labour force and the trends in that burden since 2007-2008; and if he will make a statement on the matter. [33518/18]
Amharc ar fhreagraThe trend in the direct (income tax and USC) and indirect tax (VAT and excise duty) take shows a fall from 2007 to 2010 for direct taxes, and to 2011 for indirect taxes, and then substantial rises thereafter in both taxes, reflecting the change in Ireland’s economic circumstances in these years. The direct tax take was €13.5 billion in 2007 falling to €11.5 billion in 2010 before rising to €23 billion in 2016. Indirect taxes went through a similar transformation from €20.5 billion to €14.5 billion and on to €18 billion in 2007, 2011 and 2016 respectively. These data are available on the Department of Finance's databank website.
Data from the Department of Finance's databank are used in combination with CSO census and labour force survey data on the number of households and the size of the labour force, to estimate the direct and indirect tax burdens per household, and per member of the labour force. Measures for households are available from the 2006, 2011 and 2016 census years.
The per household direct tax burden was €8,431 in 2006 and for the indirect tax it was €12,954. In 2011 the direct tax burden rose to €10,223 and for indirect it fell to €8,716. The direct tax burden then rebounded to €13,438 and for indirect tax it reached €10,652 in 2016.
A similar transition is observed when measured per member of the labour force. In 2007 the direct tax burden per member of the labour force was €5,806 and for indirect tax it was €8,698. For direct tax this reached its period low in 2010 at €5,005, while for indirect tax it reached a low of €6,463 in 2011. In 2016, for direct taxation this rose to €9,830, while for indirect taxation it rose to €7,792 that year.
|
|
2006 |
2007 |
2010 |
2011 |
2016 |
|
Indirect tax per household |
€12,954 |
|
|
€8,716 |
€10,652 |
|
Direct tax per household |
€8,431 |
|
|
€10,223 |
€13,438 |
|
Indirect tax per member of the labour force |
€8,512 |
€8,698 |
€6,666 |
€6,463 |
€7,792 |
|
Direct tax per member of the labour force |
€5,540 |
€5,806 |
€5,005 |
€7,580 |
€9,830 |
|
No. of households |
1,469,521 |
|
|
1,654,208 |
1,702,289 |
|
Members of the labour force |
2,236,525 |
2,337,800 |
2,253,000 |
2,230,975 |
2,327,125 |
232. Deputy Thomas P. Broughan asked the Minister for Finance the estimated impact on budget 2019 if the 9% VAT rate for the hospitality industry were increased to 10%, 11%, 12% and 13.5%, respectively; the additional estimated yield at each rate; and if he will make a statement on the matter. [33519/18]
Amharc ar fhreagra331. Deputy Joan Burton asked the Minister for Finance the estimated full year yield from changing the 9% VAT rate to 10% and then reverting to 13.5% respectively; and if he will make a statement on the matter. [34863/18]
Amharc ar fhreagraI propose to take Questions Nos. 232 and 331 together.
I am advised by the Revenue Commissioners that a 1% change to the 9% reduced VAT rate would result in an increase / decrease of an estimated €115 million.
These figures are available in the Revenue Ready Reckoner available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf which shows the yield from increases in the different VAT rates, including the 9% rate, and can be estimated on a straight line basis.
233. Deputy Thomas P. Broughan asked the Minister for Finance the details of current projections on additional tax yield if excise duties on petrol and diesel were equalised; and if he will make a statement on the matter. [33520/18]
Amharc ar fhreagraI am advised by Revenue that, based on consumption estimates for 2018, the additional tax yield if Excise duties on petrol and diesel were equalised is estimated at €353 million (including both additional Excise & VAT) per annum.
234. Deputy Noel Grealish asked the Minister for Finance if his attention has been drawn to an anti-consumer anomaly in section 50(3) of the Financial Services and Pensions Ombudsman Act 2017 (details supplied); his plans to amend the legislation to allow for a situation in which a person's official complaint is under investigation by the Ombudsman for up to a year before a financial provider initiates court action relating to the same complaint; and if he will make a statement on the matter. [33556/18]
Amharc ar fhreagraAs the Deputy will be aware, the Financial Services and Pensions Ombudsman is an alternative dispute resolution mechanism to the courts. It would not be proper that the same complaint could be adjudicated simultaneously in two different fora and the 2017 Act addresses this.
Section 50(3) provides that the Ombudsman shall not investigate or make a decision on a complaint where there are or have been proceedings (other than where the proceedings have been stayed under section 49) before any court in respect of the matter that is the subject of the investigation.
Section 49 makes provision for a situation where a complaint is under investigation by the Ombudsman and a party to the complaint commences proceedings in the courts. It allows a court to stay proceedings to allow the Ombudsman to undertake the investigation.
Furthermore, the provision referred to must be considered in light of section 50(1) which specifically provides
"Notwithstanding sections 44(2)(a)(i) and 54(1), the Ombudsman may accept a complaint against a financial service provider or a pension provider that has initiated legal proceedings in relation to a matter to which the complaint relates, where the Ombudsman believes, based on reasonable grounds, that the financial service provider or the pension provider, as the case may be, has begun those proceedings in order to prevent the making of the complaint, or to frustrate or delay its investigation."
Therefore I do not accept that there is a consumer protection anomaly in the legislation when read in its entirety.
237. Deputy Micheál Martin asked the Minister for Finance the number and name of the groups he met each month to date in 2018 that fall under the Regulation of Lobbying Act 2015; and if he will make a statement on the matter. [33710/18]
Amharc ar fhreagraThe Regulation of Lobbying Act 2015 provides for a register of lobbying to make information available to the public on the identity of those communicating with designated public officials, including government and senior civil servants, on policy, legislative matters, or prospective decisions. Any communication on a relevant matter, which falls under the scope of the Act, by an individual or entity with a designated public official must be reported to the Standards in Public Office Commission (SIPO) and all lobbyists must register with this agency. Designated public officials are not required to make such submissions regarding the registration and reporting of lobbying.
The returns register is maintained by SIPO and is available at www.lobbying.ie. This database contains all instances of lobbying reported to SIPO and can by searched under a number of headings including the name of lobbying organisation and designated public official.
My official monthly diary, which includes listings of scheduled meetings, is published on the Department of Finance website at https://www.finance.gov.ie/corporate/corporate-governance/ministers-diary/
238. Deputy Michael McGrath asked the Minister for Finance the average cost of borrowing for SMEs here compared to corresponding figures for other euro area countries in tabular form; and if he will make a statement on the matter. [33781/18]
Amharc ar fhreagra286. Deputy Michael McGrath asked the Minister for Finance the average interest rate on deposits for SMEs here; the equivalent figure in each of the other Eurozone countries in tabular form; and if he will make a statement on the matter. [33932/18]
Amharc ar fhreagraI propose to take Questions Nos. 238 and 286 together.
I have been informed by the Central Bank, as set out in the Business Credit and Deposits statistical Table A.14.1 available on the website of the Central Bank, that the outstanding SME loan interest rate as at end-Q1 2018 is 3.30 per cent. The gross new lending weighted interest rate for Q1 2018 is 3.89 per cent, down from 4.10 percent in Q4 2017. This table can be found at https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/business-credit-and-deposits.
The Central Bank does not collect data on SME interest rates outside of Ireland. However, the Deputy may wish to note that the latest ECB Survey on the access to finance of enterprises (SAFE) in respect to October 2017-March 2018, published in June 2018, contains some information on interest rates across EU Member States. The report, which measures a change in interest rates rather than actual rates, shows that interest rates have generally fallen, with a net percentage of EU SMEs confirming the fall at -1%. The report can be accessed https://www.ecb.europa.eu/pub/pdf/other/ecb.accesstofinancesmallmediumsizedenterprises201806.en.pdf?f710aadd09e7d0036678df8612df9104.
The Central Bank of Ireland publishes data on deposit interest rates on a monthly basis. The Retail Interest Rates statistical release of May 2018 states that new business NFC (Non Financial Corporations) term deposits fell by 3 basis points over the last twelve months, and stood at -0.02 per cent in May. This can be seen in Table B 2.1, which can be found at
https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/retail-interest-rates/data/ie_table_b-2-1_retail_interest_rates_and_volumes_-_loans_and_deposits_new_business-new.xlsx?sfvrsn=51.
The ECB also releases monthly data on Euro area bank interest rate statistics. The May 2018 Euro Area Bank Interest Rate release, published on July 3rd, shows that corresponding new business NFC term deposit rates for the euro area fell by 2 basis point over the same period, to 0.10 per cent, the link to the release is https://www.ecb.europa.eu/press/pdf/mfi/mir1805.pdf?57e1b46d38ba66ea153a7587d5c258bc, while the table can be found at http://sdw.ecb.europa.eu/reports.do?node=1000005757.
239. Deputy Sean Fleming asked the Minister for Finance the number of taxpayers who have made a claim under the cycle to work scheme for each year since the scheme was introduced; the cost of the scheme for each year to date; the estimated cost for 2018; the number of persons who applied under the scheme; the number of persons who made applications (details supplied) under the scheme; and if he will make a statement on the matter. [33787/18]
Amharc ar fhreagraI am informed by Revenue that there is no notification procedure for employers to indicate that they are operating the cycle to work scheme and as a consequence there is no data available on which to provide the information requested by the Deputy.
The requirements of operating this scheme are set out in Revenue’s Tax and Duty Manual Part 42-04-35 which can be found at https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-42/42-04-35.pdf. The scheme operates on a self-administration basis, with the employer having no obligation to obtain advance approval for the scheme, or to notify Revenue that they are operating the scheme. They must, however, retain all documents in relation to the scheme as they may be subject to Revenue’s normal compliance procedures.
240. Deputy Sean Fleming asked the Minister for Finance when a report on the effect of limiting tax relief on losses carried forward for banks will be produced in view of the commitment given on Committee Stage of the Finance Bill 2017; if a sunset clause and a comparison with the approach taken on losses by other administrations will be considered in the report; when the report will be published; and if he will make a statement on the matter. [33788/18]
Amharc ar fhreagraAt Committee Stage of Finance Act 2017, I agreed that my officials would produce a report on the effect of limiting the provision of tax relief for losses carried forward for banks. It was envisaged at the time that this report would be submitted to the Committee on Finance, Public Expenditure and Reform, and Taoiseach in June 2018. However, since this time, the proposed content of the report has been extended to include an examination of the restriction of loss relief for all corporate entities (such as a sunset clause or annual cap on profits that could be offset by existing losses). Therefore, it is now envisaged that this report will be laid before the committee within the coming weeks.
241. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the manner in which financial institutions deal with customers in situations in which a couple have separated and both their names remain on the mortgage account; his plans to introduce changes in this area; and if he will make a statement on the matter. [33789/18]
Amharc ar fhreagraThe terms of a credit agreement will generally set out the rights and obligations of the borrower and lender parties to the contract, including the liability of the borrower(s) for the repayment of the loan. In that context, the Central Bank has advised that, in general, both parties to a joint mortgage are jointly and severally liable for the debt.
Financial institutions are obliged to deal with their customers in accordance with the terms of the contract and relevant legal and regulatory requirements. In this context, in respect of separated borrowers in or facing mortgage arrears on their primary residence, the Central Bank's Code of Conduct on Mortgage Arrears will be relevant and it provides that, in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under the Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers).
242. Deputy Michael McGrath asked the Minister for Finance the position in relation to persons acquiring a vehicle by means of a personal contract plan being entitled to avail of the disabled drivers and disabled passengers scheme provided the applicant and the vehicle meet the relevant criteria; and if he will make a statement on the matter. [33792/18]
Amharc ar fhreagraThe qualifying provisions for the Disabled Drivers and Passengers Scheme are contained in Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994). Regulations 8 (disabled drivers), 10 (disabled passengers) and 12 (organisations) provide that a vehicle must be “purchased” by the person or organisation.
Revenue guidance allowed for vehicles acquired under traditional hire purchase agreements to be eligible on the basis that such agreements, by design, are intended to lead to the outright purchase of the vehicle. As such this position is consistent with the principle of a scheme member being required to purchase their vehicle.
The Deputy will be aware that Revenue has been reviewing a number of refusals in respect of PCP agreements issued to establish if they qualify for the scheme. This work is ongoing.
243. Deputy Michael McGrath asked the Minister for Finance the investments, including lending, made by the Ireland Strategic Investment Fund in the area of residential and non-residential property since its inception; and if he will make a statement on the matter. [33794/18]
Amharc ar fhreagraThe table below sets out the Ireland Strategic Investment Fund’s commitments, in the area of residential and non-residential property. I am informed by the NTMA that the information conveyed was correct as at 30 June 2018.
|
|
ISIF Investment |
Purpose |
|
Activate Capital |
€325m |
Lending on commercial basis to residential development projects in Ireland |
|
Ardstone Residential Partners Fund |
€30m |
Residential equity investment fund |
|
Cherrywood |
€52m |
Site infrastructure funding to unlock 360 acres of development land at Cherrywood, South County Dublin, for residential and commercial development. |
|
DCU Student Accommodation |
€54m |
ISIF has leveraged DCU's existing student accommodation programme to help unlock funding for the overall Campus Development Programme. |
|
DAD Property Fund (Bancroft) |
€8m |
Investment partnership acquiring apartments in Tallaght, to provide a mix of open market and social/affordable housing. |
|
WLR Cardinal |
€75m |
Provide development and refinance capital. Focus on multiple real estate sectors, providing both pure finance & development capital. Some residential housing elements. |
|
Quadrant |
€50m |
Focus on office development projects. Provides development and refinance capital. Some residential housing elements. |
|
Kilkenny Regeneration |
€2m |
Providing seed investment for a major urban regeneration project in the heart of Kilkenny City. |
|
Finegrain |
€25m |
Invest in offices, business parks, logistics facilities and industrial properties. Primarily in regional locations. |
|
Man Auto |
€25m |
Real-estate debt fund that provides loans finance to residential developers and builders working on smaller-scale projects in large urban areas. |
|
Avestus Capital Partners |
€25m |
Residential property fund which will invest in the Irish Private Rented Sector. The fund is managed by Avestus Capital Partners. ISIF's equity capital will be exclusively used to forward purchase newly developed rental properties and support construction of new homes in Ireland. |
244. Deputy Michael McGrath asked the Minister for Finance the number of persons claiming tax relief on third-level tuition fees in each complete tax year since 2014; the cost of the relief for each year in tabular form; and if he will make a statement on the matter. [33795/18]
Amharc ar fhreagraSection 473A of the Taxes Consolidation Act 1997 provides for tax relief at the standard rate of income tax in respect of qualifying fees paid by an individual for a third level education course, including a postgraduate course.
The most recent year for which statistics on the relief are available is 2015. The number of persons claiming the relief and the cost since 2014 are as follows:
|
Year |
Claimants |
Cost €M |
|
2015 |
23,900 |
12.9 |
|
2014 |
24,000 |
12.7 |
245. Deputy Michael McGrath asked the Minister for Finance the final amount that has now been collected by the Revenue Commissioners under the compliance initiative announced in budget 2017 relating to tackling offshore tax evasion and related initiatives; the interest and penalties that have been applied in aggregate form; the number of disclosures that were made in respect of each offshore jurisdiction; the nature of the tax evasion captured by the initiative; and if he will make a statement on the matter. [33797/18]
Amharc ar fhreagraIt was announced to the House in the Financial Statement for Budget 2017 that action would be taken to restrict, with effect from May 2017, the opportunity for tax defaulters with outstanding tax liabilities in respect of offshore matters to use the voluntary disclosure regime. In line with this undertaking, section 56 of the Finance Act 2016 provided that, as and from the specified deadline date, the making of a voluntary disclosure would no longer be permitted where the tax liabilities in question relate to offshore matters.
The period during which a voluntary disclosure could be made to Revenue in relation to offshore matters ended on 4 May 2017. I am advised by Revenue that some 2,859 disclosures, with a declared value of almost €88 million have been received, and this amount is comprised of €56 million in tax, €26 million in interest and €6 million in penalties.
I am advised also that 69% of the disclosures received by Revenue relate to offshore matters concerning four jurisdictions, namely the United Kingdom, the United States of America, France and Spain. A full breakdown of the disclosures received, by reference to the jurisdiction to which the offshore matter disclosed relates, is given in the following table.
BREAKDOWN BY JURISDICTION TO WHICH OFFSHORE MATTER RELATES
|
Country |
No. of Disclosures |
|
Australia |
53 |
|
Belgium |
28 |
|
Bulgaria |
18 |
|
Canada |
40 |
|
France |
193 |
|
Germany |
66 |
|
Hungary |
43 |
|
Isle of Man |
40 |
|
Italy |
10 |
|
Jersey |
27 |
|
Luxembourg |
30 |
|
Netherlands |
21 |
|
New Zealand |
11 |
|
Poland |
28 |
|
Portugal |
52 |
|
South Africa |
30 |
|
Spain |
135 |
|
Switzerland |
47 |
|
Turkey |
19 |
|
United Arab Emirates |
18 |
|
United Kingdom |
1,261 |
|
USA |
391 |
|
Unspecified |
188 |
|
Total |
2,749 |
To protect the confidentiality of taxpayer information, and with regard to the small numbers of cases in some jurisdictions, the above table does not include countries with less than 10 voluntary disclosures. The following is a list of these jurisdictions:
Austria, Bahamas, Barbados, Belize, Bermuda, Brazil, British Virgin Islands, Cambodia, Cape Verde, Cayman Islands, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Gibraltar, Greece, Guernsey, India, Iraq, Jamaica, Kenya, Lebanon, Liechtenstein, Lithuania, Malaysia, Malta, Mauritius, Monaco, Norway, Oman, Panama, Romania, Saint Lucia, Singapore, Slovakia, Slovenia, Sri Lanka, Sweden, Thailand, Trinidad & Tobago.
The table gives details, by category, of the types of previously undisclosed income sources and assets that gave rise to the disclosures made to Revenue.
BREAKDOWN BY SOURCE OF INCOME AND ASSETS
|
Source |
Number |
Percentage |
|
Pension |
471 |
16% |
|
Bank Account |
491 |
17% |
|
Shares |
569 |
20% |
|
Property |
823 |
29% |
|
Offshore Fund |
127 |
4% |
|
Trust |
29 |
1% |
|
Earned Income |
75 |
3% |
|
Inheritance |
25 |
1% |
|
Multiple |
118 |
4% |
|
Unspecified |
131 |
5% |
Anybody who had tax liabilities relating to offshore matters and who did not act by 4 May 2017 to address them now faces the prospect of substantially higher penalties, publication in Revenue’s quarterly list of tax defaulters and possible prosecution. Revenue will make full and effective use of the large volume of data that it is receiving, under international arrangements for the automatic exchange of information, to identify and pursue anybody who attempts to evade his or her tax obligations by using offshore accounts, assets and structures.
246. Deputy Michael McGrath asked the Minister for Finance the number of the vacancies in each functional area of the Central Bank; the percentage that vacancy rate represents of the staffing allocation for that function; the date each position has been vacant since; and if he will make a statement on the matter. [33799/18]
Amharc ar fhreagra315. Deputy Michael McGrath asked the Minister for Finance the number of open vacancies in the Central Bank, the time these vacancies have remained unfilled since first being advertised to date; and if he will make a statement on the matter. [34645/18]
Amharc ar fhreagraI propose to take Questions Nos. 246 and 315 together.
I am informed by the Central Bank that it currently has 160 open vacancies across the bank at varying stages of the process. The current average time to hire for open roles is 8 weeks.
A full breakdown of the number of vacancies in each functional area is detailed below, in the table provided by the Central Bank.
|
Pillar |
Directorate |
No. of Open Roles |
% of all Pillar Roles |
|
Prudential Regulation |
Credit Institutions |
23 |
14.38% |
|
Prudential Regulation |
Insurance |
10 |
6.25% |
|
Prudential Regulation |
Asset Management |
10 |
6.25% |
|
Financial Conduct |
Enforcement |
9 |
5.63% |
|
Financial Conduct |
Consumer Protection |
10 |
6.25% |
|
Financial Conduct |
Policy and Risk |
12 |
7.50% |
|
Financial Conduct |
Securities and Markets Supervision |
15 |
9.38% |
|
Chief Operations Officer |
COO |
10 |
6.25% |
|
Chief Operations Officer |
Currency and Facilities Management |
4 |
2.50% |
|
Chief Operations Officer |
Information Management and Technology |
26 |
16.25% |
|
Chief Operations Officer |
Human Resources |
3 |
1.88% |
|
Central Banking |
Economics and Statistics |
8 |
5.00% |
|
Central Banking |
Financial Operations |
5 |
3.13% |
|
Central Banking |
Corporate Affairs |
8 |
5.00% |
|
Central Banking |
Financial Stability |
7 |
4.38% |
|
Total number of roles |
|
160 |
100.00% |
247. Deputy Michael McGrath asked the Minister for Finance the amount reported by insurance companies to the Central Bank as having been paid out on motor insurance claims in each of the years 2013 to 2017; if the Central Bank has data on the number of claims the total payouts relate to; the value of premium receipts for the years in question; and if he will make a statement on the matter. [33802/18]
Amharc ar fhreagra373. Deputy Richard Boyd Barrett asked the Minister for Finance the amount paid out annually in motor insurance claims from all insurance companies. [35036/18]
Amharc ar fhreagraI propose to take Questions Nos. 247 and 373 together.
In relation to the Deputy’s query, the Central Bank of Ireland has provided me with data on gross paid claims for Irish motor insurance claims in the years 2013 to 2017. This data which is set out in the table below includes both private and commercial motor insurance, and excludes the costs associated with the settlement of these claims.
The data reflect the business of insurance undertakings prudentially supervised by the Central Bank of Ireland (6 undertakings) and undertakings operating on a freedom of establishment basis (3 undertakings). It does not however include any data related to insurance undertakings operating in Ireland under freedom to provide services. The Central Bank also notes that these claim numbers do not represent a constant market size and/or share as, for example, the number of vehicles insured by these undertaking will have varied each year.
|
Calendar year |
Gross paid claims (€m) |
|
2013 |
869 |
|
2014 |
932 |
|
2015 |
921 |
|
2016 |
956 |
|
2017 |
953 |
The Central Bank does not collect information on the number of claims or earned premiums at a level of granularity that allow for the identification of Irish motor insurance business. However, it advises that direct comparison of earned premiums to paid claims is not necessarily appropriate, as it is important to also consider the reserves set aside to meet claims that have not yet been settled and/or notified.
As the Deputy will be aware, the Cost of Insurance Working Group has recommended the establishment of a National Claims Information Database to improve the level of transparency and the availability of information in the insurance sector. I recently published the legislation required to underpin that Database, the Central Bank (National Claims Information Database) Bill 2018, and I am hopeful that with the cooperation of all parties in the Houses, it can be considered and approved expeditiously to have the database in place as soon as possible.
The Deputy may also be interested to view the Cost of Insurance Working Group’s Motor Insurance Key Information Reports which are published on my Department’s website. In advance of the establishment of the National Claims Information Database, these reports endeavour to provide some information on key aggregated metrics in relation to motor insurance. The most recent of these reports was published in May 2018 and provides some information and data on amongst other things earned premium and related claims costs in Parts 5 and 2 respectively.- see attached link https://www.finance.gov.ie/wp-content/uploads/2018/05/second-motor-insurancekey-info-report-may-2018.pdf .
248. Deputy Michael McGrath asked the Minister for Finance the number of residential mortgages here that are classified as sub-prime; the number of sub-prime lenders operating in the market; the value of sub-prime mortgages outstanding; the rate of arrears on these mortgages; the actions specific to the sub-prime sector which are being taken to address arrears; and if he will make a statement on the matter. [33803/18]
Amharc ar fhreagraI have been informed by the Central Bank of Ireland that it does not separately identify sub-prime mortgages in their collected or published statistics. As part of the quarterly Residential Mortgage Arrears, Restructures & Repossession Statistics, the Central Bank collects data from all institutions who have issued mortgages. The aggregate statistics are broken down into three sub-groups, namely, Banks, Retail Credit Firms and Unregulated Loan Owners. A detailed break-down of the number and value of accounts held by each sub-group is available in the Central Bank's most recent mortgage arrears publication. A list of authorised credit institutions and retail credit firms is published on the Central Bank website.
Various lenders offer loans where the interest rate is higher than that generally charged in the market. Although these lenders are commonly referred to as ‘sub-prime lenders’, there is no such regulated category as ‘sub-prime lender’. All authorised lenders are subject to the Consumer Protection framework, including the Central Bank’s statutory Consumer Protection Code and the Code of Conduct on Mortgage Arrears (‘CCMA’).
249. Deputy Michael McGrath asked the Minister for Finance the treatment of rental income from residential property situated here from a taxation point of view; the rate of taxation that applies by different classes of recipients (details supplied); and if he will make a statement on the matter. [33806/18]
Amharc ar fhreagraI am advised by Revenue that, under section 18 of the Taxes Consolidation Act 1997 (TCA), rental income received by companies and individuals, whether resident or not resident in Ireland, from a property situated in the State is taxable under Case V of Schedule D of the TCA. This basis of taxation makes no distinction between rental income from property let for residential occupation and property let for commercial occupation.
Each property must have a separate tax computation in which the rental expenses for each property are deducted from the related rental income for the same property in order to arrive at a surplus (i.e. where income is greater than expenses) or a deficiency (i.e. where expenses are greater than income) of taxable rental income in respect of the property. The total of surpluses and deficiencies are then aggregated to arrive at Case V profits or gains arising in the year.
While the same computational rules to calculate taxable rental income are generally applied to both individuals and companies, income from the letting of residential property, received by individuals and non-resident companies that do not carry on a trade in the State, is taxable under self-assessment income tax, while such income received by Irish resident companies and non-resident companies who carry on a trade in the State through a branch or agency, is assessable for corporation tax.
Rates of income tax for individuals
Income tax is an annual tax charged on income in respect of all profits or gains in the nature of income of an individual. The income tax rates are the Standard Rate of 20% and the higher rate of 40% on income above the standard rate tax band. The standard rate tax cut-off point depends on the individual’s status: single, one parent family, married, civil partner, whether one or both spouses or civil partners have income, etc. PRSI and USC may also be chargeable on rental income.
Rent-a-Room relief
Under section 216A TCA an individual who lets a room or rooms in her or his sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2018. Although the income is exempt it must be included in the individual’s tax return for the year in question. This relief does not apply to companies or partnerships.
Non-resident individual
Where rents are paid directly to a non-resident, the tenant is obliged to deduct income tax at the standard rate from the payment, as per section 1041 TCA. Credit can be claimed for the tax withheld on the non-resident person’s income tax return.
Irish resident companies
Rental income earned by Irish resident companies is assessable to corporation tax at the higher rate of 25%.
Companies not resident in Ireland
A non-resident company that carries on a trade in the State through a branch or agency is within the charge to Irish corporation tax. Its chargeable profits will include any income from property used by, or held by or for the branch or agency, which will include any rental income. Such rental income is chargeable at the higher 25% rate of corporation tax.
A non-resident company that does not carry on a trade in the State through a branch or agency is chargeable to income tax in respect of income, including rental income arising in the State. This is also the case where a non-resident company is trading in the State through a branch or agency, but has rental income that is not attributable to the branch or agency.
Close companies
Close companies (i.e. companies under the control of five or fewer participators) are also liable to a surcharge of 20% under section 440 TCA in respect of investment and estate income, including rental income which is not distributed to the company shareholders within 18 months of the company's year-end. This measure acts to discourage the accumulation of rental income in a company subject to the 25% corporation tax rate, where such income is liable on distribution to universal social charge, PRSI and income tax at the participator’s marginal rate.
Partnerships
For the purposes of taxation each partner is regarded as individually carrying on a separate trade; this concept is referred to as the partner’s “several trade” and each partner is taxed accordingly on their share of the partnership profits or gains.
Each partner takes her/his share of rental income and returns it in her/his own income tax return for the appropriate year of assessment as if it were her/his own income from the source in question. Similarly, any expenses borne by the partnership in relation to such income, e.g., costs of repairs and maintenance of a rented property, are similarly divided between the partners and each claims any relief available in respect of her/his share of any expenses that may be deductible in computing income under Case V of Schedule D.
REITs
Finance Act 2013 introduced the regime for the operation of Real Estate Investment Trusts (REITs) in Ireland. The function of the REIT framework is to facilitate collective investment in rental property. Property rental income and gains arising are exempt from tax within the REIT and are taxed in the hands of shareholders level when distributed. Any profits from other activities are subject to corporation tax in the normal way. The REIT legislation requires that 85% of all property income profits be distributed annually to shareholders.
Dividend Withholding Tax (DWT), currently at a rate of 20%, is applied by the REIT to distributions from a REIT both to Irish residents and non-resident investors. Irish resident investors will be subject to income tax, USC and PRSI in the normal way on distributions received from the REIT with a credit given for the DWT paid. Non-resident investors, resident in a country where Ireland has entered into a Double Taxation Agreement, may be entitled to reclaim some of the withholding tax if the relevant treaty permits. Dividends paid to Irish resident corporates by REITS are subject to corporation tax in the hands of the receiving company at the rate of 25%.
250. Deputy Michael McGrath asked the Minister for Finance the number of life loans in respect of residential properties in issuance here; the amount owed on these loans; if such loans are still being marketed by banks; if he is satisfied that the attention of consumers is being drawn to the risk associated with a life loan; and if he will make a statement on the matter. [33807/18]
Amharc ar fhreagraThe Central Bank has advised that it does not publish data on lifetime loans. These are niche credit products, usually provided to borrowers aged 60 or older, where the loan is secured on the borrower's home and where the interest payments are rolled up on top of the capital throughout the term of the loan, where the loan is repaid from the proceeds of the sale of the property and where the borrower retains ownership of their home whilst living in it. The Central Bank has advised that it is not currently aware of any bank marketing lifetime mortgages.
However, as part of the Central Bank's ongoing supervisory work, the Bank carried out some work in respect of ‘Lifetime’ loans in 2016. Based on information from lenders (which represented the majority of the market at the time in 2016), there were loans of approximately €640 million to approximately 5,000 customers outstanding.
If a regulated entity wishes to engage in the provision of lifetime mortgages, the Central Bank requires that transparency is provided to the borrower at the outset and borrowers must be treated in accordance with the Central Bank’s Consumer Protection Code 2012 (the Code). The Code requires that, prior to offering, recommending, arranging or providing a lifetime mortgage to a consumer, a regulated entity must inform the consumer of the consequences of purchasing a lifetime mortgage and provide information on;
- the circumstances in which the loan will have to be repaid
- details of the interest rate that will be charged
- an explanation of the impact of the rolling up of the interest over the duration of the loan
- an indication of the amount required to repay the loan at maturity
- the effect on the existing mortgage, if any; and
- an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan at five yearly intervals thereafter.
Furthermore, the Code also requires that a regulated entity must ensure that the consumer is aware of the importance of seeking independent legal advice regarding the proposed lifetime mortgage loan transaction.
In addition, the Consumer Protection Code 2012 also requires, at least annually, the provision of a statement of account including the opening balance, all transactions, all interest charged, all charges, the outstanding balance and details of the interest rate(s) applied to the account during the period covered by the statement.
252. Deputy Michael McGrath asked the Minister for Finance the number and nature of authorisation applications the Central Bank has received to date in 2018 from financial services firms; the amount that may be Brexit related; and if he will make a statement on the matter. [33860/18]
Amharc ar fhreagraI am informed by the Central Bank that it has seen a sizeable increase in the number of authorisation requests as a result of Brexit and has taken the necessary steps to ensure that it is in a position to process these. The Central Bank has engaged with all firms who have approached it in a transparent, clear and robust manner. The Central Bank expects all firms in Ireland to be able to demonstrate that their firm is run from Ireland and has real substance in this jurisdiction. It is important with just nine months to go to Brexit that any firm who wishes to be authorised by then engages with the Central Bank now, to give the necessary time to process the application.
As a general rule the Central Bank doesn’t comment on applications for authorisation however it does publish Registers of firms regulated by the Central Bank of Ireland on its website that are updated on a monthly basis:
http://registers.centralbank.ie/DownloadsPage.aspx.
The Central Bank also publishes Service Standards Performance Reports which summarises authorisation activity for all sectors on half-yearly basis.
https://www.centralbank.ie/regulation/how-we-regulate/authorisation/service-standards.
