Tuesday, 24 Jul 2018

Written Answers Nos. 349 - 376

Cycle to Work Scheme Data

Ceisteanna (349, 350, 351, 352, 353)

Richard Boyd Barrett

Ceist:

349. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of retaining the bike to work scheme; and if he will make a statement on the matter. [35000/18]

Richard Boyd Barrett

Ceist:

350. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of extending the bike to work scheme to allow for two claims in five years if a bike is stolen; and if he will make a statement on the matter. [35001/18]

Richard Boyd Barrett

Ceist:

351. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of extending the bike to work scheme to permit the sharing or transfer of the allowance to enable parents to buy bicycles for children and young adults; and if he will make a statement on the matter. [35002/18]

Richard Boyd Barrett

Ceist:

352. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full year cost of a bike for all scheme modelled on the bike to work scheme to allow for subsidised bikes for all on social welfare payments; and if he will make a statement on the matter. [35003/18]

Richard Boyd Barrett

Ceist:

353. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full year cost of introducing a scheme for those who use their bikes for commuting to work along the lines of that available in Belgium where €0.23 is paid per kilometre distance; and if he will make a statement on the matter. [35004/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 349 to 353, inclusive, together.

The Cycle To Work scheme came into operation on 1 January 2009. The scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.

I 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. 

It was estimated at the time of the introduction of the scheme that approximately 7,000 employees would avail of it over the first five-year period of its operation, the exemption may apply only once in any five year period in respect of any employee.

It should be noted that the purchase of bicycles and associated safety equipment by employers for employees or directors is subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records (e.g. delivery dockets, invoices, payments details, etc.). The employer is also obliged to keep all salary sacrifice agreements entered into between the employer and employees/directors, together with all signed statements from employees/directors regarding use of the bicycles and safety equipment.

While I have not asked my officials to conduct any further specific analysis along the lines set out by the Deputy, I would advise him that all such schemes are reviewed in the context of the annual Budget and Finance Bill process.

Tax Reliefs Data

Ceisteanna (354)

Richard Boyd Barrett

Ceist:

354. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax revenue foregone as a result of section 110 tax relief as it applies to rental income and capital gains from property for all the years to which the section applies; and if he will make a statement on the matter. [35009/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that companies which have submitted a notification to Revenue that they are a qualifying company for the purposes of section 110 of the Taxes Consolidation Act 1997 (TCA 1997) can only hold certain qualifying assets. Real property is not an asset that a qualifying company can hold, however they can hold loans and other financial assets that derive their value therefrom.

As part of the 2016 Finance Act, provisions were introduced to address concerns raised in both the media and the Dáil regarding the use of section 110 companies and certain Irish collective investment vehicles by international investors to minimise their tax payments on Irish property transactions. The amendments made in Finance Act 2016 ensure that tax will be payable on their profits from Irish property transactions from 6 September 2016 onwards.

It is not possible to calculate the amount of tax that would be paid if a company had not submitted a notification to Revenue that it is a qualifying company for the purposes of section 110 TCA 1997.

Tax Data

Ceisteanna (355, 356)

Richard Boyd Barrett

Ceist:

355. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that is foregone annually due to tax breaks for private schooling; and if he will make a statement on the matter. [35013/18]

Richard Boyd Barrett

Ceist:

356. Deputy Richard Boyd Barrett asked the Minister for Finance the amount which would be saved if tax breaks for private schooling were allowed at only the 20% marginal rate; and if he will make a statement on the matter. [35014/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 355 and 356 together.

The schemes relevant to the Deputies' questions are the Special Assignee Relief Programme (SARP) (employees who qualify for SARP may receive tax relief on certain costs associated with the education of their children in the State) and the Charitable Donations to Approved Bodies scheme.

It should be noted that, under SARP, only school fees of up to €5,000 per annum for each child of the relevant employee or for each child of his or her spouse or civil partner are eligible for tax relief. I am advised by Revenue that the following table sets out the total value claimed annually, and the number of eligible claimants, in respect of tuition fees for 2012, 2013, 2014, 2015 and 2016, the latest year for which data is available.

Year	Total Tuition Claimed €*
2012	34,000
2013	169,000
2014	571,000
2015	477,000
2016	600,000

 *these figures relate to the total amount of tuition fees in respect of which claims were made and not the amount of tuition fees that qualified for SARP.

It should be noted that these figures are the total amount of tuition fees in respect of which claims were made and not the amount of tuition fees that qualified for SARP. The amount of tuition fees which qualified for SARP relief is not readily available and, as I advised the deputy in my reply to questions 184 and 185 on 26 July 2017, there are no statistics available to estimate a net cost to the Exchequer or to estimate a saving associated with only allowing relief at the 20% marginal rate, as described by the Deputy. However, I am advised by Revenue that if an assumption is made that the total amount of private school fees relieved under SARP for 2016 amounted to approximately €0.6m, and this total figure was relieved under the 40% marginal tax rate, this would have effectively resulted in €0.24m being refunded. If these amounts were relieved at the 20% standard rate of tax it would result in savings of approximately €0.12m for the Exchequer for 2016.

The Charitable Donation Scheme allows tax relief on qualifying donations made to eligible charities and approved bodies which include (but are not limited to) primary and secondary schools. I am informed by Revenue that it is not possible to separately identify the donations and refunds attributable to such schools. 

Tax Data

Ceisteanna (357)

Richard Boyd Barrett

Ceist:

357. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of revenue that was foregone in each of the years 2015 to 2017 and to date in 2018 through tax breaks on private medical insurance; and if he will make a statement on the matter. [35015/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the cost of tax relief on medical insurance premiums between 2004 and 2015 is published on the Revenue website at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.

In 2015, the latest year for which data are currently available, the cost of tax relief on Medical Insurance Premiums was €325.2 million. This tax relief is provided against the cost of medical insurance for individual taxpayers within certain limits.

In Budget 2014 a maximum premium threshold of €1,000 per adult and €500 per child was introduced on medical insurance premiums that would continue to be eligible for tax relief from 16 October 2013.  Any premium amount paid in excess of these thresholds no longer qualifies for tax relief. 

The cost of Income Tax relief in respect of medical insurance increased significantly in the years leading up to Budget 2014, estimated at €404 million in 2011, €448 million in 2012 and it was projected that the cost could reach €500 million in 2013 if no policy change were made.  Despite the increasing cost of the relief, the numbers insured were estimated to have reduced by approximately 150,000 over the same period, while at the same time the level of medical cover of medical cover decreased on some policies.    

Against this background the increase in costs was unsustainable.  If the relief had remained unchanged and the trend was to continue, it was estimated that the cost could have increased to €1 billion per annum by 2020.  The ceilings introduced in Budget 2014 ensure a level of continuing support via the tax system for those who purchase medical insurance policies, while reducing Exchequer exposure to more expensive policies. 

Universal Social Charge Abolition

Ceisteanna (358)

Richard Boyd Barrett

Ceist:

358. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of abolishing the universal social charge; and if he will make a statement on the matter. [35016/18]

Freagraí scríofa

Minister for Finance

The loss to the Exchequer from abolishing USC would depend upon a number of factors, inter alia, the year in which it would end, labour market developments, and so on.

In 2018, the Universal Social Charge (USC) is projected to raise approximately €3.7 billion in Exchequer receipts terms.  This represents approximately 17% of total expected income tax receipts and approximately 6% of the total expected tax receipts for 2018 based on Budget 2018 projections.

Universal Social Charge

Ceisteanna (359, 360, 362)

Richard Boyd Barrett

Ceist:

359. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of abolishing the universal social charge for persons earning less than €90,000; and if he will make a statement on the matter. [35017/18]

Richard Boyd Barrett

Ceist:

360. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of abolishing the universal social charge for persons earning less than €80,000; and if he will make a statement on the matter. [35018/18]

Richard Boyd Barrett

Ceist:

362. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that would be collected in a single year if the rate of USC was only applied to those earning more than €90,000; and if he will make a statement on the matter. [35020/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 359, 360 and 362 together.

It is assumed that when the Deputy refers to USC being abolished for those below certain income levels, he is referring to adjusting the exemption limits. I am advised by Revenue that the first and full year cost of raising the exemption limit to €90,000 is €1,728 million and €2,004 million respectively.

The first and full year cost of raising the exemption limit to €80,000 is €1,581 million and €1,832 million respectively.

The amount of USC collected if the exemption limit was raised to €90,000 would be €1,875 million on a full year basis.

These figures are based on 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim.

Tax Code

Ceisteanna (361)

Richard Boyd Barrett

Ceist:

361. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that would be collected if extra tax bands were introduced; and if he will make a statement on the matter. [35019/18]

Freagraí scríofa

Minister for Finance (Deputy Paschal Donohoe)

It is not clear from the Deputy's question as to what additional tax bands he has in mind.

However, I am advised by Revenue that the yields associated with introducing a third Income Tax band can be found in the Ready Reckoner published on the Revenue website at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

Question No. 362 answered with Question No. 359.

National Debt

Ceisteanna (363, 364)

Richard Boyd Barrett

Ceist:

363. Deputy Richard Boyd Barrett asked the Minister for Finance the size of the national debt. [35026/18]

Richard Boyd Barrett

Ceist:

364. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of interest that will be paid on the national debt in 2019. [35027/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 363 and 364 together.

I am informed by the National Treasury Management Agency that the Gross National Debt at end-June 2018 stood at €213.4 billion. Total cash and financial assets were €25.9 billion at end-June meaning National (net) Debt was €187.5 billion.

The latest estimate of National Debt cash interest payable in 2019 is €5.5 billion. This estimate was published in the April Stability Programme Update. An updated estimate for 2019 will be published as part of Budget 2019 later this year.

Exchequer Revenue

Ceisteanna (365)

Richard Boyd Barrett

Ceist:

365. Deputy Richard Boyd Barrett asked the Minister for Finance the primary Exchequer surplus for 2019. [35028/18]

Freagraí scríofa

Minister for Finance

The primary Exchequer balance may be defined as the Exchequer balance before the impact of debt interest expenditure. The Stability Programme Update estimated an Exchequer deficit for 2019 of €1,515 million.

Table A4 of the same publication contains an estimate of the cash interest payment for 2019 of €5,504 million.

This results in a forecast primary Exchequer surplus for 2019 of €3,989 million.

Tax Yield

Ceisteanna (366)

Richard Boyd Barrett

Ceist:

366. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of revenue collected through vehicle registration tax in 2017. [35029/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that €841 million was collected through Vehicle Registration Tax in 2017.

Question No. 367 answered with Question No. 276.

Stamp Duty

Ceisteanna (368)

Richard Boyd Barrett

Ceist:

368. Deputy Richard Boyd Barrett asked the Minister for Finance the amount collected in stamp duty charged on the purchase of stocks and marketable securities of Irish incorporated companies in 2017. [35031/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that a breakdown of Stamp Duty receipts up to 2017 in tabular form is available at https://www.revenue.ie/en/corporate/documents/statistics/receipts/net-receipts.pdf.

It is not possible to provide any further breakdown on the net receipts of Stamp Duty on share transactions.

NAMA Loan Offers

Ceisteanna (369)

Richard Boyd Barrett

Ceist:

369. Deputy Richard Boyd Barrett asked the Minister for Finance the amount NAMA has made available to developers in loan facilities to complete projects by year up to the end of the second quarter of 2018. [35032/18]

Freagraí scríofa

Minister for Finance

Since its inception, NAMA has advanced substantial development funding for a wide range of projects and expects to approve substantial additional funding for residential projects, on a commercial basis, over the period to 2020. A total of €2.8 billion has been advanced to date in capital expenditure for new and existing projects. Of this 47% related to the residential sector across NAMA’s entire portfolio. Additional information is available in NAMA’s Annual Reports which are available on the NAMA website and which contain details of commercial and residential developments which have been funded by NAMA.

Economic Data

Ceisteanna (370)

Richard Boyd Barrett

Ceist:

370. Deputy Richard Boyd Barrett asked the Minister for Finance the total household wealth here including all property and financial assets less all liabilities. [35033/18]

Freagraí scríofa

Minister for Finance

The net worth, or wealth, of households in Ireland stood at €727 billion at the end of 2017. This includes financial and housing assets, net of all liabilities.

The following table provides a breakdown of the household net worth.

Q4 2017	Financial Assets	Liabilities	Housing Assets	Net Worth
€ billion	377	-151	501	727

Household net worth rose 10% during 2017, from €658 billion at the end of 2016. This was largely driven by housing assets, which grew by 12% over the same period, while liabilities also fell by 2% as households continued to reduce their debt.

The current level of household net worth now exceeds the pre-crisis peak of €720 billion. 

NAMA Expenditure

Ceisteanna (371)

Richard Boyd Barrett

Ceist:

371. Deputy Richard Boyd Barrett asked the Minister for Finance the amount NAMA has paid out to date for repair and maintenance of properties in its portfolio. [35034/18]

Freagraí scríofa

Minister for Finance

I wish to advise the deputy that NAMA may provide funding to its debtors and receivers to protect and enhance their assets so as to optimise their income-producing potential and disposal value. This is in accordance with section 10 of the NAMA Act which states that NAMA is required to protect or enhance the value of its acquired assets and to obtain the best achievable financial return for the State.

NAMA advances loans to its debtors and receivers for a range of purposes, including essential expenditure required to ensure that properties are compliant with health and safety requirements, and remediation works so as to enable unfinished or defective housing to be brought to a habitable standard.

To date, NAMA estimates that it has provided funding of €90m for remediation works. This figure includes funding for works completed, in progress or approved but yet to commence.

National Debt Servicing

Ceisteanna (372)

Richard Boyd Barrett

Ceist:

372. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of interest paid in 2018 that was contracted since 2008. [35035/18]

Freagraí scríofa

Minister for Finance

Exchequer cash interest paid in respect of Ireland’s National Debt for the six-month period January to end-June 2018 was just under €3.9 billion. This is a provisional, unaudited figure, as provided to me by the National Treasury Management Agency (NTMA).

It includes interest paid on Government bonds, EU/IMF Programme loans, other medium/long term debt, short-term debt, and State Savings products.

It is difficult to say precisely how much of the interest paid to date this year relates to borrowing contracted since 2008 due to certain complexities in the debt portfolio. Examples of these complexities include (i) certain State Savings products allow additions, reinvestments and withdrawals before maturity and (ii) bonds can be auctioned or cancelled from any series regardless of their original issue date.

However, given that a large majority of the debt currently outstanding was issued since 2008, it is the case that the vast bulk of the interest paid in the first half of 2018 relates to debt contracted since 2008.

Question No. 373 answered with Question No. 247.

Tax Data

Ceisteanna (374, 375, 376)

Richard Boyd Barrett

Ceist:

374. Deputy Richard Boyd Barrett asked the Minister for Finance the annual cost in each of the years 2008 to 2017 and to date in 2018 of tax reliefs and exemptions available to property developers. [35037/18]

Richard Boyd Barrett

Ceist:

375. Deputy Richard Boyd Barrett asked the Minister for Finance the annual cost in each of the years 2008 to 2017 and to date in 2018 of the tax reliefs and exemptions available to property owners. [35038/18]

Richard Boyd Barrett

Ceist:

376. Deputy Richard Boyd Barrett asked the Minister for Finance the annual cost in each of the years 2008 to 2017 and to date in 2018 of the tax reliefs and exemptions available to land owners. [35039/18]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 374 to 376, inclusive, together.

The reliefs and exemptions to which the Deputy refers encompass a range of tax heads. Some of the measures are not exclusive to property owners and developers and many of them are no longer available to new claimants. In the time available, it has not been possible to collate the information sought. However, my officials will continue their work in this regard and I will revert to the Deputy as soon as possible.

In the meantime, tables setting out various tax expenditures including property related measures, from various dates up to 2015 or 2016 (the most recent years for which figures are available) are provided by Revenue at the following links:

https://www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

https://www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/property-reliefs.pdf.