John Lahart
Ceist:144. Deputy John Lahart asked the Minister for Finance if a fuel tax to replace motor taxation will be considered; and if he will make a statement on the matter. [38472/18]
Amharc ar fhreagraMotor Tax
Ceisteanna (144)
Freagraí scríofa
Motor tax is collected by the Department of Transport, Tourism and Sport and raises over 1 billion euro annually. I have no plans to replace motor taxation with a fuel tax.
The Exchequer receives substantial revenues from fuel excise duties and I recognise that the anticipated large scale adoption of electric vehicles in the future presents a fiscal challenge in this regard. My officials are examining how best, from a fiscal perspective, to manage the decarbonisation of the transport sector as well as the overall economy.
Departmental Expenditure
Ceisteanna (145)
Róisín Shortall
Ceist:145. Deputy Róisín Shortall asked the Minister for Finance the expenditure savings that are earmarked for his Department for 2019 that are not accounted for in the mid-year expenditure report or are not included in the fiscal space calculations for 2019. [38486/18]
Amharc ar fhreagraFreagraí scríofa
The Mid-Year Expenditure Report (MYER) set out the starting baseline in relation to the gross voted expenditure for 2019. As outlined in the MYER, the technical pre-Budget position for current expenditure is the current expenditure allocation for this year set out in REV. This pre-Budget position will be adjusted to reflect the allocation to the Department of a central provision in relation to the Public Service Stability Agreement.
The capital ceiling set out in the MYER is consistent with the ceiling for 2019 published in the National Development Plan.
The figures set out in the MYER do not include expenditure savings targets specifically earmarked for my Department. However, as usual as part of the Estimates process, my Department will be examining the allocations across its programme areas, including taking into account expenditure trends in 2018, to identify how services can be delivered within the overall fiscal parameters for 2019.
VAT Rate Application
Ceisteanna (146)
Mattie McGrath
Ceist:146. Deputy Mattie McGrath asked the Minister for Finance if the 9% VAT rate for tourism services will be retained; and if he will make a statement on the matter. [38496/18]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
Fuel Rebate Scheme
Ceisteanna (147)
Clare Daly
Ceist:147. Deputy Clare Daly asked the Minister for Finance if the introduction of a diesel fuel user rebate scheme for licensed Irish hauliers has been considered; and if he will make a statement on the matter. [38537/18]
Amharc ar fhreagraFreagraí scríofa
The Diesel Rebate Scheme came into effect on 1 July 2013. This scheme is available to licensed Irish road hauliers. Full details of the scheme are available on the revenue website: https://www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/diesel-rebate-scheme/index.aspx.
Exchequer Returns
Ceisteanna (148)
Michael McGrath
Ceist:148. Deputy Michael McGrath asked the Minister for Finance the estimated €600 million yield in 2019 from the non-indexation of the taxation system by tax head; and if he will make a statement on the matter. [38554/18]
Amharc ar fhreagraFreagraí scríofa
I assume the figure the Deputy is referring to is the estimated Exchequer yield from non-indexation of the income tax head, prepared in advance of Budget 2018, which was of the order of €0.6 billion on a full year basis.
The expected yield from non-indexation in 2019 will be updated as part of the preparations for Budget 2019 as the various elements of budgetary arithmetic required to forecast this figure become finalised.
Universal Social Charge
Ceisteanna (149)
Michael McGrath
Ceist:149. Deputy Michael McGrath asked the Minister for Finance the estimated number of persons or income tax cases that in the event of no change to the USC bands or income tax bands in 2019 would move to a different USC band with a higher USC rate; the number that would cross the threshold to start paying income tax at the marginal rate; and if he will make a statement on the matter. [38555/18]
Amharc ar fhreagraFreagraí scríofa
The table on page 3 of the Pre-Budget 2019 Revenue Ready Reckoner which is available on the Revenue website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx gives the estimated number of taxpayer units paying income tax and USC at the various rates in 2019. The number of taxpayer units moving between the various bands, between 2018 and 2019, are set out in the following table:
|
Estimated number of taxpayer units 2018 |
Estimated number of taxpayer units 2019 |
Difference between number of taxpayer units in 2018 and 2019 |
||
|
Income Tax |
Higher rate (40%) |
531,700 |
595,900 |
64,200 |
|
Standard rate (20%) |
1,128,400 |
1,186,000 |
57,600 |
|
|
Exempt |
956,200 |
941,600 |
-14,600 |
|
|
USC |
8% rate |
224,100 |
243,300 |
19,200 |
|
4.75% rate |
1,114,500 |
1,183,300 |
68,800 |
|
|
2% rate |
507,900 |
521,500 |
13,600 |
|
|
Exempt |
769,800 |
775,500 |
5,700 |
|
|
Paying neither Income Tax or USC |
769,800 |
775,500 |
5,700 |
|
|
Total Income Earners |
2,616,300 |
2,723,500 |
107,200 |
This is only indicative of the number of people who would move as while some of the changes are due to taxpayers moving to a higher tax band, another factor is the growth in the overall number of taxpayer units.
The 2018 estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015. The 2019 estimates have been generated by reference to 2019 incomes as calculated on the basis of actual data for the year 2016, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.
Corporation Tax
Ceisteanna (150)
Mattie McGrath
Ceist:150. Deputy Mattie McGrath asked the Minister for Finance the annual corporate tax take from the operators of stallion stud services for each of the past five years; and if he will make a statement on the matter. [38718/18]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the available information, set out in the following table, is the total Corporation Tax liability of companies where the main trade is indicated (on Revenue records) as breeding of horses. I would advise that 2016 is the most recent year for which information is available.
These amounts may not include Corporation Tax paid on the provision of stallion stud services by syndicates or other bodies as these are not separately identifiable on tax returns.
|
Year |
Corporation Tax Liability €m |
|
2012 |
0.2 |
|
2013 |
0.7 |
|
2014 |
0.6 |
|
2015 |
1.0 |
|
2016 |
1.2 |
Mortgage Book Sales
Ceisteanna (151)
Michael McGrath
Ceist:151. Deputy Michael McGrath asked the Minister for Finance if he will publish or make public his consultation with a bank (details supplied) in relation to the sale of a project under the relationship framework agreement; and if he will make a statement on the matter. [38748/18]
Amharc ar fhreagraFreagraí scríofa
In the first instance, I can confirm that consultation did take place in relation to Project Glas, as required under the Relationship Framework with PTSB.
In my response to the bank as part of the consultation, I acknowledged PTSB’s assertion that extensive efforts had been made to reach sustainable restructures with these borrowers and that they had been facilitated in doing so during the sale process.
I also noted a number of matters including how critically important the transaction was to the viability and future success of PTSB and which was being pursued on foot of a regulatory requirement; the materially positive financial impact for the bank both in terms of reducing the NPL ratio and the accretion in capital; the bank had chosen to take out performing PDH split mortgages from the sale portfolio and excluded cases where mortgage to rent was an option; and the bank’s intention to minimise customer disruption and ensure all borrowers that are transferring are informed of their rights in a timely and straight forward manner.
In my response I also highlighted that housing and homelessness is a priority issue for the Government and it was therefore imperative that the bank was willing and able to promptly deal with all customers queries and concerns by having sufficient resources devoted to helplines and other customers communication channels. In addition, I asked the bank to facilitate a meeting between the successful purchaser of the portfolio and the Housing Agency as soon as possible post the closing of the sale.
Apple Escrow Account
Ceisteanna (152)
Michael McGrath
Ceist:152. Deputy Michael McGrath asked the Minister for Finance the expected interest return per year on the moneys deposited by a company (details supplied) in the newly established escrow account; if the interest will be payable to the State or the company; and if he will make a statement on the matter. [38749/18]
Amharc ar fhreagraFreagraí scríofa
Notwithstanding that the Government profoundly disagrees with the Commission's analysis in the Apple State aid case, the full recovery of the alleged State aid from Apple has now been completed with approximately €14.3 billion deposited into the Escrow Fund. The funds will remain in the Escrow Fund pending a final determination in the European Courts over the validity of the Commission's Decision.
All income/expenses, including any gains or losses will accrue to the Escrow Fund. As investment deployment of the fund is currently underway it is premature to comment on possible returns. The arrangements in the Escrow Framework Deed include the agreement that all claims of ownership and access to these vast sums of money is suspended until the European Courts have concluded proceedings that the Government and Apple have brought.
Mortgage Repayments
Ceisteanna (153)
Robert Troy
Ceist:153. Deputy Robert Troy asked the Minister for Finance if a scheme will be introduced as part of budget 2019 to assist mortgage holders that find themselves in mortgage difficulty on a short-term basis, for example, if a person becomes temporarily unemployed; his views on whether a scheme similar to mortgage interest relief is essential in such cases; and if he will make a statement on the matter. [38754/18]
Amharc ar fhreagraFreagraí scríofa
Decisions on taxation matters including decisions (if any) in relation to mortgage interest relief are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of my plans for Budget 2019 at this time. In last year’s Budget I announced that in fulfilment of a Programme for Government commitment, mortgage interest relief for owner-occupiers would be extended on a tapered basis to end-2020 for the remaining recipients of the relief. The process of phasing out mortgage interest relief for homeowners has been under way since 2009.
With regard to mortgage holders that find themselves in mortgage difficulty, there are various supports available to them. For example, the Abhaile service which was launched in October 2016 provides financial and legal advice and support to homeowners. This Government funded mortgage arrears resolution service gives indebted borrowers access to State-funded panels of qualified and regulated financial or legal professionals to give advice and assistance on how to resolve their mortgage arrears via a voucher system. The scheme has been very successful in helping those in long-term arrears and it is important to highlight that over 10,000 vouchers for consultations have issued since the scheme began in 2016. It aims to help mortgage holders in arrears to find the best solutions and keep them, wherever possible, in their own homes.
The Insolvency Service of Ireland continues to assist distressed borrowers by returning them to solvency. In over 90% of Personal Insolvency Arrangement (PIA) cases, debtors have been able to remain in their homes. The latest Insolvency Services Statistical Report for Q2 2018 shows that over 981 new applications were received in the quarter. This high level of new applications has been maintained in large part because of the Abhaile Scheme.
The Code of Conduct on Mortgage Arrears (CCMA) which is part of the Central Bank’s Consumer Protection Framework provides protections to consumers whose loans are in mortgage arrears. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner. I have asked the Central Bank to carry out a review of the Code of Conduct on Mortgage Arrears (CCMA) to ensure that it remains effective and I expect to receive a report from the Central Bank next month.
The Mortgage to Rent (MTR) Scheme is a government initiative to help homeowners who are at risk of losing their homes due to mortgage arrears. To increase borrowers’ awareness and understanding of MTR a new dedicated mortgage to rent website, www.mortgagetorent.ie, has been developed by the Department of Housing, Planning and Local Government together with the Housing Agency with input from the Abhaile Service and the Insolvency Service of Ireland.
VAT Rebates
Ceisteanna (154)
Niamh Smyth
Ceist:154. Deputy Niamh Smyth asked the Minister for Finance if a person (details supplied) can claim back VAT on security lighting; and if he will make a statement on the matter. [38761/18]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that in accordance with the EU VAT Directive farmers may register for VAT or be treated as flat-rate farmers for VAT purposes. Farmers who elect to register for VAT have an entitlement to reclaim VAT on costs incurred in relation to the farm business or they can remain unregistered and opt for the flat-rate scheme which is designed to reduce the administrative burden for farmers and to compensate them for the VAT borne on the purchases of goods and services relating to their activities.
The Value Added Tax (Refund of Tax) (No 25) Order, 1993 provides for a refund of VAT incurred by unregistered farmers in the “construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly in his or her farming business”. The installation of security lighting would not of itself qualify for a refund of VAT under this Order but would qualify where it is a constituent element of qualifying construction work undertaken by an unregistered farmer. Each claim for a refund of VAT under this Order is evaluated on its merits.
I am further advised by Revenue that a farmer would be entitled to write off the cost of installing security lighting against his/her farming income as it would qualify for capital allowances. The cost may be written off over 8 years.
Where, however, a farmer does not have an entitlement to capital allowances e.g. s/he may be retired and no longer trading, relief may be available under the Home Renovation Initiative (HRI). This provides income tax relief in the amount of 13.5% of the cost of certain repairs, renovations and improvements, carried out on a person's main residence. The installation of security equipment such as security lighting comes within the terms of the Incentive. It should, however, be noted that as relief under HRI is restricted to works carried out on a residence, the installation of security lighting to protect an out-building, or other non-residential part of a farm, would not qualify.
The relief is granted by way of a credit against income tax over the two years following the year in which the works are paid for. 50% of the relief is given in each year. The key features of the scheme are that:-
- The works must be carried out by a tax compliant contractor;
- The works must be carried prior to 31 December 2018;
- Local Property Tax payments must be up to date in respect of the property;
- The cost of the works must be greater than €4,405 and not more than €30,000 (both figures exclusive of Value Added Tax). The cost of multiple works by different contractors may be aggregated in a claim.
Full details of the scheme are available on the Revenue website at: https://www.revenue.ie/en/property/home-renovation-incentive/index.aspx.
Private Rented Accommodation
Ceisteanna (155)
Darragh O'Brien
Ceist:155. Deputy Darragh O'Brien asked the Minister for Finance the steps he is taking to address insurance premium increases on landlords who rent out their units to housing assistance payment or rent assistance payment recipients rather than private tenancies; and if he will make a statement on the matter. [38881/18]
Amharc ar fhreagraFreagraí scríofa
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland has the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance 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. Thus the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies, not dependent on any Government scheme and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These matters are considered by insurance companies on a case-by-case basis.
It is my understanding that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose and in fact are continually encouraged to shop around for the best price. It is also my understanding that Insurance companies consider their pricing structure in accordance with their own past claims experience.
Finally, I would highlight that the two schemes mentioned by the Deputy - the Housing Assistance Payment (HAP) scheme and the Rental Accommodation Scheme (RAS) - both fall under the remit of the Minister of Housing, Planning and Local Government, while policy in respect of rent supplement payments is the responsibility of the Minister for Employment Affairs and Social Protection.