Written Answers Nos. 253-276
253. Deputy Michael McGrath asked the Minister for Finance if the special liquidator of IBRC is a plaintiff or defendant; the details of the other party to the case; the amount being sought or claimed; the nature of the case; the legal cases or actions that the special liquidator is a party to in tabular form; and if he will make a statement on the matter. [33861/18]
Amharc ar fhreagraAs set out in the fifth Progress Update Report on the Special Liquidation of IBRC published on 31 May 2018, IBRC remains party to 136 legal cases (as at 28 February 2018), comprising plaintiff litigation and defendant litigation. That report is accessible on the Department of Finance website at https://www.finance.gov.ie/updates/ibrc-progress-update-report-year-ended-31-december-2017/
The following table provides a breakdown of the total active cases under management as compared with the previous update Report for the year ending 31 Dec 2016.
|
- |
2016 Report (as at 1/1/2017) |
2017 Report (as at 28/2/2018) |
|
Defendant litigation |
143 |
111 |
|
Recovery and enforcement actions |
32 |
25 |
|
Total active cases |
175 |
136 |
The overall reduction in cases since the last report is 43 - when you take into account the four new proceedings. Two new proceedings have been taken against IBRC since the above date taking the total number to 138 cases.
Details of these cases can be found on the courts website (www.courts.ie).
Details concerning the specific value and nature of the individual claims cannot be provided as that information is confidential to the parties in litigation.
IBRC are plaintiffs in litigation comprising 25 recovery and enforcement actions. Many of these cases were instigated prior to the Special Liquidators appointment, which IBRC continues to pursue. In other instances, and in accordance with the Special Liquidators strategy, IBRC has issued proceedings with a view to maximising recovery, for debt due and owing, to enforce judgments obtained, for asset recovery or protection, or seeking damages for acts of professional negligence.
The Special Liquidators are separately managing 113 proceedings in which IBRC is defendant. These proceedings involve various allegations (predominantly of mis-selling of financial investment products, mismanagement, negligence, breach of contract/breach of duty) in which various reliefs are sought against IBRC (generally to include a claim for damages and/or declarations concerning the validity of security). IBRC continues to actively attempt to reduce its exposure to defendant litigation. The Special Liquidators assess the merits of defending such litigation and, where deemed appropriate, IBRC Group Legal implements the Special Liquidators strategy of reducing the number of defendant cases in the most cost effective manner possible.
254. Deputy Michael McGrath asked the Minister for Finance if NAMA is a plaintiff or defendant; the details of the other party to the case; the amount being sought or claimed; the nature of the case; the legal cases or actions that NAMA is a party to in tabular form; and if he will make a statement on the matter. [33862/18]
Amharc ar fhreagraUnfortunately, it has not been possible to get the required information from NAMA in the timeframe allowed by the Question. I will write to the Deputy in the near future with information provided by NAMA.
255. Deputy Michael McGrath asked the Minister for Finance his plans to mount a legal case against the Maltese regulatory authorities in respect of the collapse of a company (details supplied); and if he will make a statement on the matter. [33863/18]
Amharc ar fhreagraSetanta Insurance was placed into liquidation by the Malta Financial Services Authority in April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.
In relation to the question of whether there are any plans to take a legal case against the Maltese regulatory authorities, it should be noted that Malta is a common law jurisdiction. The legal unit of the Department of Finance is of the view that an action against the Maltese regulators would likely be difficult. However, in order to establish this definitively it would be necessary to seek legal advice from Maltese lawyers as well as to seek to establish further information in respect of any failures in their legal duties on the part of the regulator which might give rise to such a legal case. The Department of Finance’s legal unit does not consider that there is sufficient likelihood of a successful action being brought to justify the costs which would be incurred in seeking such advice and information.
Regarding any proposal to take such legal action, it should also be noted that Setanta availed of the ‘passporting’ provisions of the European Union “Freedom of Services” rules in order to sell insurance business in Ireland. This allows an insurance company prudentially regulated in any Member State to operate throughout the Union and is an important aspect of Ireland’s obligations as an EU Member State. While there have been cases, such as the liquidations of Enterprise and Setanta, which have caused difficulties, Ireland has also positively benefited from these EU rules through, for example, the building up of our large life insurance sector.
256. Deputy Michael McGrath asked the Minister for Finance when the collection of the new 2% levy on gross written motor insurance premiums imposed under the Insurance (Amendment) Bill 2018 will commence; if he has had discussions with the insurance industry on whether this levy has already been priced into premiums; and if he will make a statement on the matter. [33864/18]
Amharc ar fhreagraThe Insurance (Amendment) Bill 2018 passed all stages of Seanad Éireann on 17 July 2018. I expect that the Bill will be signed into law by the President in the coming days.
As the Deputy will be aware, Section 16 of the Bill provides a legal basis and sets out the arrangements for vehicle insurers operating in the Irish market to contribute an amount under normal circumstances equivalent to 2% of gross written motor premiums (GWP) to an ex-ante fund to be held by the Motor Insurers' Bureau of Ireland (MIBI), to be known as the Motor Insurers Insolvency Compensation (MIIC) Fund. The purpose of this fund is to ensure that in the event of a future motor insurer insolvency, the insurance industry will be able to pay their 35% share at the earliest available opportunity.
In relation to the question of when the collection of the contribution will commence, Section 1 of the Insurance (Amendment) Bill 2018 provides for a separate commencement of Section 16. This will allow the MIBI adequate time to put the necessary arrangements in place for the new MIIC Fund. Once commenced, vehicle insurers must, not later than 30 June in the following year, pay to the MIIC Fund a contribution calculated in accordance with the relevant legislation.
In relation to the question of whether this contribution has already been priced into premiums, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
Consequently, I am not in a position to review individual cases nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases.
257. Deputy Michael McGrath asked the Minister for Finance the number and value of applications approved under the help to buy scheme; the amount of tax refunds issued in 2017 and to date in 2018; and if he will make a statement on the matter. [33865/18]
Amharc ar fhreagra325. Deputy Joan Burton asked the Minister for Finance the cost of the help to buy scheme in 2017 and to date in 2018; the projected full year cost in 2018 and 2019; the number of purchases supported in each year; the projected full year numbers in 2018 and 2019; and if he will make a statement on the matter. [34856/18]
Amharc ar fhreagraI propose to take Questions Nos. 257 and 325 together.
The Help To Buy (HTB) incentive, announced in Budget 2017 (October 2016), is designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home.
The incentive provides for a refund of Income Tax and DIRT paid over the previous four tax years, limited to a maximum of 5% of the purchase value up to a value of €400,000. The HTB refund is capped at €20,000.
The incentive is available for the period from 19 July 2016 to 31 December 2019.
The value of approved HTB claims at end 2017 was some €68.9 million, of which €16.7 million represented retrospective claims (for the period 19 July to 31 December 2016). The value of approved HTB claims in 2018 to date is some €35.4 million.
In relation to the number of purchases supported by the incentive, 7,220 claims were approved to the end of June 2018: 4,824 in 2017, and 2,396 from 1 January to the end of June 2018.
These statistics are updated regularly by Revenue and are available at the following link:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx .
As the Deputies will be aware, my Department has commissioned a cost benefit analysis of the incentive. The analysis is currently underway and is due to be completed in advance of Budget 2019.
258. Deputy Michael McGrath asked the Minister for Finance the details of enforcement investigations being undertaken by the Central Bank in tabular form; and if he will make a statement on the matter. [33866/18]
Amharc ar fhreagraThe Central Bank cannot publish details of ongoing enforcement investigations.
However, as part of the Tracker Mortgage Examination it has confirmed that in parallel with its supervisory work, enforcement proceedings have commenced against six lenders: permanent tsb plc; Ulster Bank Ireland DAC; Bank of Ireland Group (The Governor and Company of Bank of Ireland and the Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages); KBC Bank Ireland plc; Allied Irish Banks, plc; and EBS DAC. Further information is available on the Central Bank website: https://www.centralbank.ie/consumer-hub/tracker-mortgage-examination
In addition, the Central Bank publishes all settlement agreements under the Administration Sanctions Procedures on its website:
https://www.centralbank.ie/news-media/legal-notices/settlement-agreements
Since obtaining Administrative Sanctions powers, the Central Bank has entered into 120 settlements with regulated firms, imposing fines of €62,376,525.
259. Deputy Michael McGrath asked the Minister for Finance the number of financial services firms by category such as insurance, credit card, mortgage providers and SME lenders selling business in the market here to end consumers that are prudentially regulated in the UK and that rely on the freedom of movement of services across the EU to sell here; the relevant quantum of financial activity involved for each category using latest estimates; if there are risks for consumers here in the event of a hard Brexit in this context; and if he will make a statement on the matter. [33868/18]
Amharc ar fhreagraThe freedom to ‘passport’ financial services throughout the European Union from an authorised undertaking in one-member state is a fundamental principle underlying EU directives.
Where the undertaking operates on a freedom of services basis, prudential supervision of the undertaking is the responsibility of the Home Member State. The Host State supervisor is purely responsible for conduct of business supervision.
When a financial services firm is notified to the Central Bank of Ireland by an equivalent EU/EEA supervisory body they are added to the Central Bank’s register of service providers or branch establishments. In addition, they are advised of the requirements of the Central Bank’s Consumer Protection Code and are supervised by the Central Bank in respect of consumer protection.
The Register of firms authorised by the Central Bank of Ireland is available on its website: http://registers.centralbank.ie/
It is not yet clear what the nature of the UK's relationship with the EU will be after it leaves the Union. The Government is determined that all possible preparations are made ahead of the UK leaving the EU. We are focused on protecting and advancing Ireland’s interest at every turn.
The Government isn’t under any illusions about the complexity of challenges presented by Brexit, and our comprehensive response to the potential impacts of Brexit is continuing. Detailed work is underway across all Government Departments and agencies, including the Central Bank, to prepare for the UK’s exit. This includes contingency planning for all possible scenarios, of which a "hard Brexit" is one possible scenario.
260. Deputy Michael McGrath asked the Minister for Finance the contingencies that have been put in place by his Department and the agencies under his remit to deal with a hard Brexit; his plans to increase staffing levels in his Department or the agencies under his remit in relation to same; if the Central Bank and the Revenue Commissioners will be given the scope and resources to increase staffing levels to deal with a hard Brexit; and if he will make a statement on the matter. [33875/18]
Amharc ar fhreagraCo-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-Departmental coordination structures chaired by the Department of Foreign Affairs and Trade. On 18 July the Tánaiste and Minister for Foreign Affairs and Trade presented a detailed memorandum to the Government on Brexit Preparedness and Contingency Planning.
Contingency Planning for a no-deal or worst-case outcome, bringing together the detailed work being undertaken by individual Ministers, and their Departments, on issues within their policy remit, was identified as an early priority and is now well advanced. Its focus is on the immediate economic, regulatory and operational challenges which would result from such an outcome. It assumes a trading relationship based on the default WTO rules, but also examines the possible effects on many other areas of concern.
My Department is actively engaged in this Brexit contingency planning work, which has provided baseline scenarios for the impact of Brexit across all sectors, which can then be adapted as appropriate in light of developments in the EU-UK negotiations. This is enabling the modelling of potential responses under different scenarios, such as one where a withdrawal agreement, including a transitional arrangement, is concluded and where a Free Trade Agreement is the basis for the future relationship between the EU and the UK.
On the basis of this work, relevant Departments, including my own, have now been tasked by the Government to roll out detailed Action Plans with a view to advancing, as appropriate, the mitigating measures which have been identified in the areas of their responsibility from the planning to the implementation phase.
As well as the planning work, the Government has already taken actions to get Ireland Brexit ready. In the past two Budgets, the Government has continued its policy focus of preparing the economy and enhancing the resilience of the public finances to deal with external challenges, including those posed by Brexit. For 2019, our current projections show Ireland complying with both fiscal rules and overachieving on our MTO. Complementing this, the ‘Rainy Day Fund’, will provide an important measure to strengthen the economy’s shock absorption capacity to mitigate the impact of future severe external shocks. Legislation to establish the Rainy Day Fund is currently being prepared and, pending its approval, as indicated in Budget 2018, its capitalisation will begin in 2019.
Within my own Department, the Assistant Secretary, who heads the EU and International Division of my Department, is designated as the lead official in the Department for Brexit matters. A dedicated Brexit Unit within the EU and International Division was established in July 2016 to oversee and coordinate Brexit work across the entire Department and to act as a key liaison point, in particular with the Departments of the Taoiseach and of Foreign Affairs and Trade. There are currently four staff in the dedicated unit which is led at Principal Officer level. Also, an additional staff member has been assigned to the Permanent Representation to the EU in Brussels, specifically to deal with Brexit. The challenges which we face as a result of Brexit are mainstreamed across the divisions of my Department and this is reflected in business planning, with lead Brexit coordinators, at Principal Officer level, appointed across all the relevant divisions. This is also the case for the Revenue Commissioners, where support for the Brexit Unit also involves significant input from areas such as information technology, legislation, international relations, customs, tax and statistics. It is similarly the case for the Central Bank, which has the statutory mandate for financial stability, including resolution, and for reviewing contingency plans of regulated firms, with staff across the Central Bank working on Brexit-related matters in the course of their duties.
My Department and the relevant agencies will continue to work within the whole-of-Government structures to respond to Brexit. The resources needed to respond to specific policy challenges will continue to be monitored on an ongoing basis. It should be noted, that, as an independent agency, the Central Bank has responsibility for its own staffing arrangements.
262. Deputy Michael McGrath asked the Minister for Finance if he has received the report by the Central Bank on banking culture ordered in the wake of the tracker mortgage scandal; when he will bring that report to Cabinet; when he will be publishing it; when he expects to act on the recommendations; and if he will make a statement on the matter. [33907/18]
Amharc ar fhreagraOn foot of the serious cultural failings in banks brought to light in the Tracker Mortgage Examination, I requested that the Central Bank undertake a review of the culture within the Irish retail banks, under Section 6A of Central Bank Act 1942, as amended.
The report is an independent Central Bank Report, which sets out the Central Bank’s analysis of the culture within the retail banking sector, specifically the five main lenders subject to the Tracker Mortgage Examination. The Central Bank Report also sets out a number of recommendations.
I received the report on 11 July. It is being brought before Cabinet today, 24 July, and once noted by Government will be published by the Central Bank. It would not be appropriate for me to comment publicly on the content of the report before it is published by the Central Bank. However, I can say that my officials will work with the Central Bank to address the recommendations which necessitate legislative change, and I propose to do so under the ongoing Central Bank Amendment Bill project.
263. Deputy Michael McGrath asked the Minister for Finance if an update to IFS2020 is being worked on in view of Brexit; and if he will make a statement on the matter. [33909/18]
Amharc ar fhreagraIn 2015 the Government launched the ‘International Financial Services 2020 Strategy’ (IFS2020). The Strategy is a whole-of-Government approach to the continued development of our international financial services sector and it was developed to address the increasingly competitive and ever changing nature of international financial services.
IFS2020 is led by Minister of State Michael D’Arcy TD with the aim to create 10,000 net new jobs across the Enterprise Ireland and IDA Ireland portfolios in international financial services over the five year period from 2015 – 2020. The vision of IFS2020 is for Ireland to be the location of choice for specialist international financial services, building on our strengths in talent, technology, innovation and excellent client services, while focusing on capturing new opportunities in a changing market and embracing the highest forms of governance.
To date, the IFS2020 Strategy has created approximately 7,000 net new jobs in the sector placing us on target to create 10,000 net new jobs by 2020. The IFS sector now employs almost 42,000 people across Ireland with 30% of those employed in locations outside Dublin.
Brexit has already, and will continue to change the landscape for international financial services operations already located, and choosing to locate, in Ireland. While there are many challenges arising from the UK’s decision to leave the EU, it is evident that there are opportunities for Ireland in relation to international financial services. The IFS2020 Strategy combines long-term strategic thinking with the flexible tools to react to any domestic and international developments occurring over the period. The annual Action Plans enable us to tailor responses to deal with these challenges and opportunities as they arise.
The current strategy IFS2020 due to expire in 2019. It is, therefore, vital that we commence work now on the preparation of a new Strategy for the sector to allow sufficient time for proper consideration and consultation with various stakeholders. A new Strategy will provide the opportunity to recast our vision for the sector, and to develop new goals and strategies to ensure we take account of up-to-date developments in 2018 and 2019. The new strategy should provide the ecosystem to continue to grow the sector, and to ensure Ireland continues to be recognised as a global location of choice for international financial services.
Minister of State D’Arcy and officials from my department have begun to consider the development of a successor to IFS2020. This work will progress over the coming months through consultation with relevant stakeholders across both the public and private sector.
To this end, Minister D’Arcy has established a Strategic Advisory Group (SAG) to assist with the development of a new Strategy for international financial services to succeed IFS2020. This Group is working on proposals to assist in the development of the overall direction of the new Strategy which will be considered at the IFS2020 Q3 Joint Committee. There will also be a public consultation process in the autumn. The new Strategy for Ireland’s international financial services sector will be launched in 2019.
264. Deputy Michael McGrath asked the Minister for Finance his views on option 1 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to accelerate restoration of full mortgage interest deductibility for landlords of residential property; if he envisages changes under option 1 of the report; and if he will make a statement on the matter. [33910/18]
Amharc ar fhreagra265. Deputy Michael McGrath asked the Minister for Finance his views on option 2 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to allow LPT as a deductible for landlords; if he envisages changes under option 2 of the report; and if he will make a statement on the matter. [33911/18]
Amharc ar fhreagra266. Deputy Michael McGrath asked the Minister for Finance his views on option 3 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to enhance loss relief for landlords; if he envisage any changes under option 3 of the report; and if he will make a statement on the matter. [33912/18]
Amharc ar fhreagra267. Deputy Michael McGrath asked the Minister for Finance his views on option 4 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to allow pre-letting expenses to be deducted for previously vacant properties; if he envisages changes under option 4 of the report; and if he will make a statement on the matter. [33913/18]
Amharc ar fhreagra268. Deputy Michael McGrath asked the Minister for Finance his views on option 5 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to improve the collection and sharing of data on the rental sector; if he envisages changes under option 5 of the report; and if he will make a statement on the matter. [33914/18]
Amharc ar fhreagra269. Deputy Michael McGrath asked the Minister for Finance his views on option 6 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to allow a deduction against rental income for the capital cost of the property in the initial years of ownership of a rental unit; if he envisages changes under option 6 of the report; and if he will make a statement on the matter. [33915/18]
Amharc ar fhreagra270. Deputy Michael McGrath asked the Minister for Finance his views on option 7 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to provide capital gains tax relief for properties acquired and retained as rental accommodation; if he envisages changes under option 7 of the report; and if he will make a statement on the matter. [33916/18]
Amharc ar fhreagra271. Deputy Michael McGrath asked the Minister for Finance his views on option 8 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to provide an incentive to attract investment capital into the construction of property to be let for social and affordable rents; if he envisages changes under option 8 of the report; and if he will make a statement on the matter. [33917/18]
Amharc ar fhreagra272. Deputy Michael McGrath asked the Minister for Finance his views on option 9 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to review provisions for the holding of rental property via pension vehicles; if he envisages changes under option 9 of the report; and if he will make a statement on the matter. [33918/18]
Amharc ar fhreagra273. Deputy Michael McGrath asked the Minister for Finance his views on option 10 of the report of the working group on the tax and fiscal treatment of rental accommodation providers to consider the development of a separate method of taxing rental income; if he envisages changes under option 10 of the report; and if he will make a statement on the matter. [33919/18]
Amharc ar fhreagraI propose to take Questions Nos. 264 to 273, inclusive, together.
The Report of the Working Group on the Tax and Fiscal Treatment of Landlords was published by my Department on Budget Day 2017.
Ten policy options were put forward in the report, divided into short-term, medium-term and long-term timeframes. Five potential short-term options were identified as measures which could potentially be implemented within 18 months, i.e. within Budgets 2018 and 2019.
Option 1 is to allow for accelerated restoration of full mortgage deductibility for landlords of residential properties. In Budget 2017, a phased unwinding of the restriction on interest deductibility over five years for all residential landlords was provided for, with the rate of deductibility increasing by 5% p.a. until full deductibility is reached in 2021. I decided not to further accelerate this deduction in Budget 2018 as to do so would have undermined the social housing tenancies incentive introduced in Finance Act 2015, which allows 100% mortgage interest deductibility where a landlord commits to let their property to social housing tenants for a minimum of three years.
Option 2 is for the introduction of Local Property Tax (LPT) deductibility for landlords. LPT is a relatively small expense and therefore the measure is unlikely to make a significant difference to the position of any individual landlord in cash terms, so may not be regarded by landlords as a sufficient measure to encourage them to stay in or enter the rental market. The measure would also have a deadweight cost in respect of landlords who do not intend to leave the rental market and would create a more favourable position for landlords of property compared to owner-occupiers, as owner-occupiers cannot claim a tax deduction for LPT. I note that one of the recommendations of the 2015 review of the LPT carried out by Dr. Don Thornhill on behalf of the Minister for Finance was that LPT payments should not be allowed as a deduction to landlords against income or corporation tax. Dr. Thornhill’s view was that deductibility for landlords does not rest easily with the concept of the LPT as a tax on the amenity value of residential properties rather than as a business cost. Owners and tenants of rental properties both derive value from the amenity value of these properties (the owner in the form of the rent and the tenant from living in the property). This contrasts with the situation regarding local authority rates on commercial properties. Owner occupiers are not allowed to claim LPT as a deduction against income tax. It is not appropriate on conceptual and equity grounds that they should. Dr Thornhill considered that there was a need to ensure equity between owners of all residential properties, whether owner occupiers or landlords, and that it would be inappropriate to allow LPT as a deduction against the taxation of income from rents on residential properties. Dr Thornhill’s recommendation is being considered in the context of the current review of the LPT which is expected to report around the end of August of this year.
Option 3 is to enhance loss relief for landlords (or a sub-set of landlords), to allow relief for rental losses against other income sources in the same year. Currently, landlords can carry-forward their rental losses for offset against future rental profits, but cannot offset rental losses against other net taxable income in the current year, other than other rental profits from other properties. However, rental losses can currently be carried forward indefinitely against future rental income, even after the loss-making property has ceased to be a rental property. This is in contrast to the treatment of trading losses under Case I, where the loss relief effectively ceases when the trade ceases. The current system of rental loss relief has the effect of encouraging landlords to remain in the market, in order to avail of the loss relief against future streams of rental income. Allowing offset of rental losses against all other income could potentially encourage landlords to exit the market at an earlier date, once their losses had been fully relieved against other income.
I introduced Option 4 in Budget 2018. This allows deductibility for pre-letting expenditure for previously vacant properties. I prioritised this option as it was specifically designed to encourage an overall increase in housing supply by bringing currently vacant property back into residential use.
Option 5 is to improve the collection and sharing of data on the rental accommodation sector. The Housing Analytics Group, chaired by the Department of Housing, Planning and Local Government, is currently active and a number of Departments and agencies are involved in its work, including the Residential Tenancies Board, the Central Statistics Office (CSO), Revenue and the Department of Finance. The guiding principle for the group is that housing policy requires the best evidence available to inform analysis, forecasts and decisions. The group’s initial focus is to review the various sources of housing and housing related data collected nationally. Once gaps or deficiencies have been identified the group will make recommendations for improvement.
Options 6, 7, 8, 9 and 10 are medium-term and long-term options. Medium-term options are measures which work with the current tax system but might take longer to develop and implement, and as such would require a longer lead-in period. The long-term options look at the potential for more fundamental changes to the tax system, and so would require significantly greater resource commitments to progress. Consideration of these options will continue within the relevant time-frames.
Finally, it should be noted that taxation is only one of the policy levers available to the Government through which to boost rental and overall housing supply and that, in line with the Tax Expenditure Guidelines, consideration of whether a tax measure is the most appropriate policy tool for a given purpose is required. Ireland’s past experience with tax incentives in the housing sector strongly suggests the need for a cautionary stance when considering intervention in the rental sector. There are many competing priorities which must be considered when deciding which policy measures to introduce and the rental sector is just one of many other sectors that may require assistance and intervention.
274. Deputy Michael McGrath asked the Minister for Finance the number of limited partnerships in the IFS that have been set up here in each year since 2015; the comparable number in other EU countries for each of the years since 2015; and if he will make a statement on the matter. [33920/18]
Amharc ar fhreagraThe responsibility for Limited Partnerships rests with the my colleague, the Minister for Business, Enterprise & Innovation as per the Limited Partnership Act, 1907. I have been informed by that Department that the Companies Registration Office does not have details of the number of limited partnerships set up specifically in the IFSC.
The Department of Business, Enterprise & Innovation has supplied the following data on the total number of Limited Partnerships on the register and the number registered in Ireland since 2015.
|
Year |
Number of Limited Partnerships on the Register |
Number of Limited Partnerships Registered in year |
|
2015 |
1,136 |
87 |
|
2016 |
1,602 |
466 |
|
2017 |
2,278 |
676 |
|
2018 (to end-June) |
2,494 |
216 |
I have also been informed by the Department of Business, Enterprise & Innovation that they do not have any statistics on the numbers of Limited Partnerships established in other parts of Europe. The Department of Business, Enterprise & Innovation point out however that based on data from Companies House (UK), the number of Limited Partnerships Incorporated in the UK at end of period:
|
Year |
Number of Limited Partnerships (LPs) Registered |
|
2012-2013 |
2,769 |
|
2013-2014 |
4,026 |
|
2014-2015 |
4,545 |
|
2015-2016 |
6,544 |
|
2016-2017 |
5,650 |
With regard to other European countries, Limited Partnerships as a structure are either not available in other European countries or are not directly comparable to the structures within Ireland. For example Germany has a partnership structure that is utilised for investment funds but the structure differs to that within Ireland, and France has introduced a form of limited partnership in 2015.
276. Deputy Michael McGrath asked the Minister for Finance the annual cost of the knowledge development box in each year since its creation; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; and if he will make a statement on the matter. [33922/18]
Amharc ar fhreagra332. Deputy Joan Burton asked the Minister for Finance the number of companies that have availed of the knowledge development box to date; the value of intellectual property subject to the KDB tax rate; his plans to extend the scheme; his plans to review the scheme; and if he will make a statement on the matter. [34864/18]
Amharc ar fhreagra367. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that was foregone due to the knowledge box in the latest available figures. [35030/18]
Amharc ar fhreagra383. Deputy Billy Kelleher asked the Minister for Finance further to Parliamentary Question No. 112 of 12 July 2018, the number of small companies by medium and micros sized firms with accounting periods ended on or before 31 December 2016 that have claimed KDB relief to date in tabular form. [35133/18]
Amharc ar fhreagraI propose to take Questions Nos. 276, 332, 367 and 383 together.
I am advised by Revenue that the Knowledge Development Box (KDB) only applies for accounting periods commencing on or after 1 January 2016. Given the supporting documentation required, the claimant company has a period of up to 24 months to make a claim for relief under the KDB. A small number of companies (less than 10) whose accounting periods ended on or before 31 December 2016 have submitted claims for their 2016 tax returns. Due to taxpayer confidentiality, Revenue cannot comment on the size or nature of the claimant companies to date. However, the tax cost of these claims to-date is in the region of €5 million.
It is anticipated that more companies will make a claim for relief within the 24 month time frame. As such, KDB claims in respect of the year ended 31 December 2016 may be claimed for the year ended 31 December 2017. Therefore, further claims in respect of the year ended 31 December 2016 may be made up to end September 2018.
