Written Answers Nos. 159-182
159. Deputy Seán Crowe asked the Tánaiste and Minister for Foreign Affairs and Trade if his attention has been drawn to the recent presidential elections in Brazil; his views on the fact that an extreme right wing candidate (details supplied) is now the President-elect of Brazil; and if he will make a statement on the matter. [45775/18]
Amharc ar fhreagraI am aware of the recent election of Jair Bolsonaro as the next President of Brazil. Officials in my Department in Dublin, at our Embassy in Brasília, and at our Consulate-General in São Paulo have been monitoring political developments closely.
It is essential that citizens are able to exercise their democratic right to vote, and I understand that the election took place in a peaceful manner. The head of the Organisation of American States (OAS) election observation mission, former Costa Rican President Laura Chinchilla, has stated that voting took place in a climate of ‘tranquillity and normality’.
Ireland and Brazil have an important and longstanding relationship that goes back many decades, and which continues to develop. There are growing numbers of our citizens living in each other’s countries, Irish companies are increasingly entering the Brazilian market, and Brazil is an important partner for Ireland in trade, education and on multilateral issues.
Ireland looks forward to maintaining our strong relationship with Brazil in the future and will continue efforts to advance our interests and values in our engagement with the new government. In the meantime, Ireland will continue to monitor developments closely, engaging with the outgoing and incoming administrations, our EU and other partners in Brazil and civil society organisations on the ground.
160. Deputy Niamh Smyth asked the Tánaiste and Minister for Foreign Affairs and Trade the campaigns he is undertaking to inform persons about Brexit; the format these will take; if he has sought external advice on same; and if he will make a statement on the matter. [45872/18]
Amharc ar fhreagraOn 20 September 2018, I launched the whole-of-Government Getting Ireland Brexit Ready public information and outreach campaign, together with Ministers Humphreys and Creed. Building on work that was already underway across Government Departments and Agencies, the campaign aims to provide information to citizens on the current state of play in the negotiations and wider issues that may affect them as a result of Brexit, and to explain the extensive work underway across Government to prepare for Brexit, including information on the comprehensive range of financial and other supports that are available for business and other key affected sectors.
Information on all aspects of Brexit can be accessed on our revamped Brexit website (www.dfa.ie/brexit), bringing together information on the range of activities being carried out by the Government and its agencies in one accessible resource. Visitors to the website can sign-up to the Government Brexit Update newsletter service, and dedicated social media channels have also been launched. Since the re-launch in late September, the website has had over 17,000 visitors and the @BrexitReadyIRL Twitter account now has over 6,000 followers.
As part of this campaign, the first phase in a series of whole-of-Government Getting Ireland Brexit Ready public outreach events have been held across the country in Cork (5 October), Galway (12 October), Monaghan (19 October) and Dublin (25 October). Further events are planned for later this month. With more than 2,000 attendees, these events showcased the extensive work of the Government’s Departments and agencies, bringing together this experience and expertise in a ‘one stop shop’ for citizens and businesses in particular. The events provide an opportunity for interested individuals and businesses, including in the agrifood and tourism sectors, to access advice and information about Brexit preparedness and the range of support measures and resources the Government has put in place.
The positive impact of the workshops is reflected through the increase in interactions with the Brexit supports offered by State Agencies. For example, Enterprise Ireland has recorded a 92% increase in Brexit Scorecard completions from September to October, as well as a 62% increase in interactions on its website. Similarly, Fáilte Ireland noted an 18% increase in views to their Brexit webpages subsequent to the October Getting Ireland Brexit Ready events.
The Getting Ireland Brexit Ready campaign is managed by the Department of Foreign Affairs and Trade, working closely with other Government Departments. The logo design, advertisement, and creation of video content were outsourced to external agencies.
161. Deputy Darragh O'Brien asked the Minister for Finance the amount of the €335 million received from the sale of the stake in Aer Lingus and placed into a connectivity fund which has been invested by the Ireland Strategic Investment Fund; and if he will make a statement on the matter. [45342/18]
Amharc ar fhreagraI am informed by the National Treasury Management Agency (NTMA) that the Ireland Strategic Investment Fund (“ISIF”) has completed four investments under the Connectivity Fund, namely:
- A $28 million co-investment in Aqua Comms DAC, a company that has developed fibre optic cables linking the USA, Ireland (Killala, Mayo) and the UK.
- A €35 million investment as a strategic domestic partner for DAA plc long term bond issuance, supporting construction of a new runway at Dublin Airport.
- Provision of a long term €14 million debt facility to finance a runway resurfacing project at Shannon Airport - a crucial regional and national infrastructure asset. This debt facility was signed in early 2017 and the runway resurfacing project has been completed on time and within budget.
- An €18 million Junior Debt facility to support the relocation of the Port of Cork from Tivoli to Ringaskiddy. The ISIF debt facility was provided alongside senior debt from AIB and the European Investment Bank and was structured to ensure certainty of funding for the Port Company. It also has tailored flexibility to meet the requirements of this nationally and regionally significant project.
These investments bring the total deployed under the connectivity fund to over €90 million. The NTMA have also advised me that ISIF is working on a range of further pipeline connectivity-based investments.
162. Deputy Carol Nolan asked the Minister for Finance if he has given consideration to exempting counselling and psychotherapy services from VAT in circumstances in which the practitioner is a registered practitioner but is not a psychologist; and if he will make a statement on the matter. [45445/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. Under domestic legislation, professional medical care services recognised as such by the Department of Health and Children are exempt from VAT. Professional medical care services recognised by the Department of Health and Children are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses Act 1985 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.
163. Deputy Jackie Cahill asked the Minister for Finance the way in which a person who qualifies as a disabled driver and has a modified car can apply for a diesel refund; and if he will make a statement on the matter. [45679/18]
Amharc ar fhreagraI am advised by Revenue that individuals or organisations that have a qualifying vehicle registered under the Drivers and Passengers with Disabilities Scheme can make an application for the Fuel Grant Refund for any twelve-month period (in arrears). The same process is employed regardless of the fuel type used.
The quickest and easiest way to make a claim is to apply online using Revenue’s online services, via either ‘MyAccount’ or ‘Revenue Online Services’ (ROS). Once logged in, a person can select the ‘Driver and Passenger with Disabilities’ (DPD) option and choose ‘Claim Fuel Grant’. The person must then enter the period to which the claim refers and specify the number of litres used to transport the primary medical certificate holder.
If a claimant does not have internet access, paper application forms can be obtained on request by calling telephone number 01-738 3675. These forms should be completed and sent to Revenue’s Central Repayments Office at M:TEK II Building, Armagh Road, Monaghan, Co. Monaghan.
Revenue has also advised me that further information on the Fuel Grant is available in the information booklet VRT 7, which can be accessed on the Revenue website at the link
https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/documents/vrt/vrt7.pdf
or by calling the Central Repayments Office at telephone number 01-738 3671.
164. Deputy Tony McLoughlin asked the Minister for Finance the amount of funding which has been paid in property tax since its introduction in counties Sligo and Leitrim; the number of households paying; the percentage of households that have not paid or that are exempt; and if he will make a statement on the matter. [44600/18]
Amharc ar fhreagraI am advised by Revenue that the Local Property Tax (LPT) receipts from properties in counties Sligo and Leitrim; the number of properties for which LPT is paid; the number claiming an exemption and the compliance rate (including properties where LPT is paid and where an exemption is claimed) is available at link:
https://revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx.
165. Deputy Catherine Murphy asked the Minister for Finance the number of guarantees and risk-sharing facilities the Strategic Banking Corporation of Ireland has provided in the past two years to date to enhance small and medium enterprises' ability to access finance; the way in which SMEs are chosen to receive financial supports; the appeals process for SMEs that are declined or that are refused support and access to funds; and if he will make a statement on the matter. [44638/18]
Amharc ar fhreagraThe SBCI has delivered two major risk-sharing schemes, the Agriculture Cashflow Support Loan Scheme and the Brexit Loan Scheme, in 2017 and 2018.
The Agriculture Cashflow Support Loan Scheme has now concluded and a total of approximately €145m of loans were drawn down by over 4,200 SMEs under that scheme. The loans were made available through AIB, Bank of Ireland and Ulster Bank, and SMEs applied directly to those banks to obtain approval for a loan through the banks’ usual credit processes. The borrowers and loans were subject to eligibility criteria determined by the SBCI in accordance with its obligations to the Minister for Agriculture, Food and the Marine, to the European Investment Fund and in compliance with State Aid regulations.
The Brexit Loan Scheme is currently available and can facilitate up to €300m of lending to SMEs and Small MidCap enterprises. For this scheme, borrowers may confirm their eligibility directly with the SBCI (details are available on the SBCI’s website at www.sbci.gov.ie) and then proceed to apply for a loan through the financial intermediaries selected by the SBCI following an Open Call process, in this case AIB, Bank of Ireland and Ulster Bank. The borrowers and loans are subject to eligibility criteria determined by the SBCI in accordance with its obligations to the Minister for Agriculture, Food and the Marine, the Minister for Business, Enterprise and Innovation, to the European Investment Fund and in compliance with State Aid regulations.
The SBCI also operates the Credit Guarantee Scheme on behalf of the Minister for Business, Enterprise and Innovation, and loans of €28.7m to 190 SMEs have been supported under that scheme in the last two years.
If the outcome of a banks internal appeals process is unsatisfactory to the customer they have the option of appealing to the Credit Review Office. The Credit Review Office is a government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The CRO provides a confidential, independent review process and will engage with the lender that has refused or reduced credit, the Office overturns more than 50% of lenders decisions in the appeals it receives.
166. Deputy Peter Burke asked the Minister for Finance the estimated cost of increasing the point at which a single worker pays the higher rate of income tax by amount and year (details supplied) with prorate changes to the point at which a single income couple pay the higher rate and a dual income couple does. [44668/18]
Amharc ar fhreagra167. Deputy Peter Burke asked the Minister for Finance the estimated cost of increasing the point at which a single worker pays the higher rate of income tax by amounts and year (details supplied) with prorate changes to the point at which a single income couple pay the higher rate and a dual income couple does. [44669/18]
Amharc ar fhreagra168. Deputy Peter Burke asked the Minister for Finance the estimated cost of equalising the earned income tax credit with the PAYE tax credit in equal increments in budget 2020 and budget 2021. [44670/18]
Amharc ar fhreagra169. Deputy Peter Burke asked the Minister for Finance the estimated cost of equalising the home carer credit with the PAYE tax credit in equal increments in budget 2020 and budget 2021. [44671/18]
Amharc ar fhreagra208. Deputy Peter Burke asked the Minister for Finance the estimated full-year cost of increasing the employee tax credit by amounts (details supplied). [45582/18]
Amharc ar fhreagra209. Deputy Peter Burke asked the Minister for Finance the estimated full-year cost of increasing the employee tax credit in future budgets (details supplied). [45583/18]
Amharc ar fhreagra210. Deputy Peter Burke asked the Minister for Finance the estimated full-year cost of increasing the employee tax credit by amounts in future budgets (details supplied). [45584/18]
Amharc ar fhreagraI propose to take Questions Nos. 166 to 169, inclusive, and 208 to 210, inclusive, together.
I assume that when referring to the employee tax credit, the Deputy is referring to the Employee PAYE Tax Credit.
I am advised by Revenue that the estimated increases to the Standard Rate Cut Off points, Earned Income Tax credit, Employee PAYE Tax Credit and Home Carer Tax Credit are set out in tabular form on pages 6 and 7 of the Revenue Ready Reckoner, which is available at the link: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
While some of the costs of the increases sought by the Deputy are not displayed in the Ready Reckoner, they can be estimated on a straight-line or pro-rata basis from the costs shown. These estimated costs are shown in the following tables.
|
Increase to Standard Rate Cut-Off Point +€2,400 |
Standard Rate Cut Off Point Budget 2020 |
First Year Cost €m |
Full Year Cost €m |
|
Single Earner |
€37,700 |
172.8 |
200 |
|
Married Couple One Earner |
€46,700 |
60.8 |
73.6 |
|
Married Couple Two Earners |
€75,400 |
185.6 |
216 |
|
Increase to Standard Rate Cut-Off Point +€2,000 |
Standard Rate Cut Off Point Budget 2020 |
First Year Cost €m |
Full Year Cost €m |
|
Single Earner |
€37,300 |
144 |
166.7 |
|
Married Couple One Earner |
€46,300 |
50.7 |
61.3 |
|
Married Couple Two Earners |
€74,600 |
154.7 |
180 |
|
Earned Income Credit Budget 2020 |
First Year Cost €m |
Full Year Cost €m |
|
|
Increase to Earned Income Tax Credit +€150 |
€1,500 |
20 |
36 |
|
Home Carer Tax Credit Budget 2020 |
First Year Cost €m |
Full Year Cost €m |
|
|
Increase to Home Carer Tax Credit +€75 |
€1,575 |
5.3 |
6 |
|
Employee PAYE Tax Credit Budget 2020 |
Full Year Cost €m |
|
|
Increase to PAYE Employee Tax Credit +€50 |
€1,700 |
103 |
|
Increase to PAYE Employee Tax Credit +€100 |
€1,750 |
206 |
|
Increase to PAYE Employee Tax Credit |
Employee PAYE Tax Credit |
Full Year Cost €m |
|
+€50 |
€1,700 |
103 |
|
+€100 |
€1,750 |
206 |
|
+€150 |
€1,800 |
309 |
|
+€200 |
€1,850 |
412 |
|
+€250 |
€1,900 |
515 |
|
+€300 |
€1,950 |
618 |
|
+€350 |
€2,000 |
721 |
|
+€400 |
€2,050 |
824 |
|
+€450 |
€2,100 |
927 |
|
+€500 |
€2,150 |
1,030 |
|
+€550 |
€2,200 |
1,133 |
These estimates have been generated by reference to 2019 incomes, calculated on the basis of actual data for 2016, the latest year for which returns are available, and adjusted for income, self-employment and employment trends in the interim. The figures are however provisional and may be revised.
I am advised by Revenue that it is not possible to provide costings beyond Budget 2020 because the model used by Revenue does not have the ability to estimate beyond one static set level of growth (i.e. macros, elasticities etc.) using 2016 tax returns (the latest returns that are available). Revenue can only generate estimates for one year and not multiple steps over multiple years.
170. Deputy Peter Burke asked the Minister for Finance the estimated cost of increasing the capital acquisitions tax group A tax-free threshold by €10,000, €20,000 and €30,000, respectively, in each budget over the next five years. [44672/18]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the estimated cost of a €10,000 increase in the Capital Acquisitions Tax Group A threshold is set out in the post-Budget 2019 Ready Reckoner at link https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.
Larger increases above €10,000 can be estimated on a pro-rata basis from the 2019 information in the Ready Reckoner and projected costs for years beyond 2019 are not available at this point.
171. Deputy Peter Burke asked the Minister for Finance the factors that underline the year-on-year change in the equity and loan transactions listed in table A1 of the economic and fiscal outlook in Budget 2019. [44673/18]
Amharc ar fhreagraEquity and loan transactions affect the Exchequer balance but are excluded from the general government balance under the European System of Accounts 2010 framework. This is because they are essentially an exchange of one type of asset (e.g. cash) for another (e.g. equity or loans). For example, the sale of AIB shares in 2017 benefitted the Exchequer but had no impact on the general government balance as this was a financial transaction.
Table 10 in the Economic and Fiscal Outlook published in Budget 2019 outlines the exchequer position, including the main transactions with no general government impact. Major drivers of the change in equity and loan transactions include central bank surplus income and the receipts from NAMA, the latter of which are expected in 2020 and 2021. The relevant part of the table is reproduced below for the Deputy’s convenience.
|
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
|
Revenue transactions with no GG impact |
3,140 |
2,290 |
3,440 |
3,715 |
1,740 |
1,770 |
|
: non-tax revenue |
1,430 |
1,240 |
590 |
645 |
665 |
700 |
|
- Central bank surplus income |
1,430 |
1,240 |
590 |
645 |
665 |
700 |
|
: capital resources |
1,710 |
1,055 |
2,850 |
3,070 |
1,070 |
1,070 |
|
- NAMA |
0 |
0 |
1,500 |
2,000 |
0 |
0 |
|
- FEOGA |
740 |
800 |
800 |
800 |
800 |
800 |
|
- Loan repayments |
970 |
245 |
550 |
270 |
270 |
270 |
|
- Other |
0 |
10 |
0 |
0 |
0 |
0 |
|
Expenditure transactions with no GG impact |
1,060 |
1,635 |
1,650 |
1,635 |
1,660 |
1,695 |
|
: non-voted current expenditure |
10 |
5 |
5 |
5 |
5 |
5 |
|
- Other |
10 |
5 |
5 |
5 |
5 |
5 |
|
: non-voted capital expenditure |
1,050 |
1,130 |
1,145 |
1,125 |
1,155 |
1,190 |
|
- FEOGA |
800 |
800 |
800 |
800 |
800 |
800 |
|
- Loans to Irish Water |
240 |
310 |
335 |
315 |
345 |
385 |
|
- Other |
10 |
20 |
15 |
10 |
5 |
5 |
|
: transfer to Rainy Day Fund |
0 |
500 |
500 |
500 |
500 |
500 |
|
Transactions with no GG impact |
2,080 |
655 |
1,790 |
2,085 |
80 |
75 |
172. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on the review of retirement funds; the way in which budget 2019 increases in the State pension may impact on pensioners with an approved managed retirement fund; and if he will make a statement on the matter. [44710/18]
Amharc ar fhreagraI am advised by Revenue that under Part 30 of the Taxes Consolidation Act 1997 (TCA) an individual in a defined contribution pension savings arrangement has the option of putting the funds accumulated under the arrangement into an Approved Retirement Fund (ARF) on retirement, subject to conditions.
Where, at the time of exercising an option, such an individual is under the age of 75 and does not meet the requirement in section 784C(4) TCA of having a minimum guaranteed pension income for life of €12,700 per annum, which may include a pension payable under the Social Welfare Consolidation Act 2005, s/he is required under that section to set aside an amount of €63,500 (or the remainder of the pension fund if less than €63,500 after taking a retirement lump sum) by investing the amount in an Approved Minimum Retirement Fund (AMRF) or by the purchase of an annuity. The purpose of the AMRF is to ensure that an individual, who does not have a minimum guaranteed pension income for life, has a capital nest-egg to provide for the later years of his or her retirement.
An AMRF automatically becomes an ARF when the owner either meets the guaranteed pension income requirement or attains the age of 75 years, and the amount of funds in the AMRF at that time can be drawn down at the owner’s discretion under ARF rules.
The €5 per week increase in all weekly social welfare payments announced in Budget 2019, which applies from next March, will be taken into account in determining if an AMRF owner meets the minimum guaranteed pension income necessary for the conversion of the AMRF into an ARF. From 1 March 2019, the State Pension (Contributory) payable to an individual aged under 80 years, with 48 or more average yearly PRSI contributions, will be €248.30 per week. On an annualised basis this will exceed the €12,700 income threshold mentioned above for an AMRF or annuity. Individuals whose only pension income is the “full” State Pension (Contributory) will therefore not be subject to the AMRF requirement and may invest their full pension savings in an ARF.
Previously, the Christmas bonus paid by the Department of Employment Affairs and Social Protection was not counted towards the €12,700 requirement because neither the payment nor the amount of the payment was guaranteed. From March 2018, the amount of the State Pension (Contributory), where payable to individuals with 48 or more yearly average PRSI contributions, was only marginally less than €12,700 (for individuals aged under 80 years, it was €243.30 per week, an annualised total of €12,651.60). Given these circumstances, Revenue announced in May 2018 that it would allow individuals who received a Christmas bonus under S.I. No. 523/2017 – Social Welfare (Temporary Provisions) Regulations 2017 to take that into account for the AMRF limit (and for the related limit for Personal Retirement Savings Accounts). AMRF owners whose only pension is a State Pension (Contributory) may already have had their AMRF converted into an ARF when the Christmas bonus for 2017 was taken into account in computing their pension income.
Further information on the guaranteed pension income requirement is available in Chapter 23.5 of Revenue’s Pensions Manual - www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-23.pdf.
Under the Government’s Roadmap for Pensions Reform 2018-2023, a number of specific actions have been allocated to the Interdepartmental Pensions Reform and Taxation Group (IDPRTG). The IDPRTG is chaired by the Department of Finance and includes representatives from my Department as well as from the Department of Public Expenditure & Reform, the Department of Employment Affairs & Social Protection, Revenue and the Pensions Authority.
Action 3.14 tasks the IDPRTG with undertaking "a broad review of the utilisation of the ARF option" and "this will include a review of ARF criteria set out in tax legislation including specified minimum income requirements". To inform its work, the IDPRTG recently conducted a public consultation on Supplementary Pensions Reform, inviting interested parties to input to the process. The consultation paper set out three main discussion areas: Section A – Simplification & Reform; Section B – Costs; and Section C – Approved Retirement Funds (ARFs). The Public Consultation concluded on Friday 19 October.
The consultation responses are currently being collated and will be reviewed by the IDPRTG. The IDPRTG will then report on the Actions allocated to it in due course.
173. Deputy Pearse Doherty asked the Minister for Finance the amount of Irish Real Estate Fund dividend withholding tax collected in 2017; and the amount collected to date in 2018. [44721/18]
Amharc ar fhreagraThe Irish Real Estate Fund (IREF) regime was introduced by Finance Act 2016 and is effective for accounting periods starting on or after 1 January 2017. Under the regime, a fund is classified as an IREF if it derives 25% or more of its value from Irish land and buildings.
While the IREF regime came into force for accounting periods commencing on or after 1 January 2017, the first payment dates under the regime were in 2018, therefore no tax was collected in 2017.
I am advised by Revenue that the amount of IREF withholding tax collected to date in 2018 is €9m. It should be noted that this reflects returns for only part of the year 2017 as an IREF is required to file a return and pay the withholding tax each year:
i. in January for accounting periods ending on or before the previous 30 June, and
ii. in July, for accounting periods ending between the previous 1 July and 31 December.
Returns were due in July 2018 for IREFs with accounting periods beginning on/after 1 January 2017 and ending on/before 31 December 2018, therefore only funds with an annual accounting year-end of 31-December have to date been obliged to file a return and pay the IREF withholding tax.
Where a fund had an accounting period that ended in the first half of 2018, the return and payment date for IREF withholding tax is 31 January 2019.
174. Deputy Robert Troy asked the Minister for Finance if there were changes made to the tax system in budget 2019 that would provide additional tax credits for stay-at-home parents; and if he will make a statement on the matter. [44748/18]
Amharc ar fhreagraAs I announced in my Budget speech, the value of the Home Carer Tax Credit will be increased from its current level of €1,200 to €1,500 at an estimated full year cost of €24 million. This is the fourth Budget in a row that the Home Carer Tax credit has been increased and it has been increased by a total of €690.
This increase will be of benefit to stay-at-home parents if they are jointly assessed for tax and if one spouse or partner works primarily in the home to care for children. It will also be of benefit to those who care for an elderly or incapacitated relative. In 2016, the Home Carer Tax Credit was of benefit to almost 86,000 families.
175. Deputy Catherine Murphy asked the Minister for Finance if he, his departmental officials and or his ministerial predecessors have met companies and an organisation (details supplied) and-or its representatives in the past three years to date; if so, whether a schedule of those meetings and the associated minutes will be published; and if he will make a statement on the matter. [44776/18]
Amharc ar fhreagraAs per my response to the previously posed PQ, 44309-18, it is not my Department's practice to pass out documents of the type requested in response to a Parliamentary Question.
The only records relating to meetings between the Minister for Finance and/or Department of Finance officials and Enet refer to a meeting between my predecessor as Minister for Finance and representatives of Enet on 14 December 2016. These records are currently the subject of an FOI request and pending the outcome of that process may be available once the FOI process is completed.
There are no records referring to meetings between representatives of the Irish Infrastructure Fund and the Minister for Finance and/or the Department of Finance in the past three years to date.
176. Deputy James Browne asked the Minister for Finance if the Revenue Commissioners have considered the effects of PAYE modernisation on small businesses here; and if he will make a statement on the matter. [44805/18]
Amharc ar fhreagraThe move to real-time reporting is the most significant change to the PAYE system since its introduction more than fifty years ago. The modernisation programme will bring improved accuracy and transparency for all stakeholders, including employers, employees and Revenue, while also significantly streamlining the entire administration process. To that end, the introduction of PAYE Modernisation by Revenue is both much needed and very welcome.
Since October 2016, when the project was launched, Revenue has worked extensively with all relevant stakeholders in a co-design approach, to ensure the new PAYE Modernisation reporting system reduces the administrative burden on employers to the greatest extent possible. For example, one of Revenue’s key design principles is that employer reporting should be seamlessly integrated into the business’ payroll process. This will minimise the administrative burden on employers and allow their reporting obligations to Revenue to become a by-product of their payroll operation. In addition, the project will lead to the abolition of the current employer reporting obligations via P30, P35, P45, P46 and P60 forms. Revenue has advised me that employers have welcomed the abolition of these forms and the consequential reduction in the administrative burden.
All employers are currently obliged to calculate and make the correct statutory deductions from their employees’ salary payments each time they pay. A significant number of employers, including small and medium employers, use payroll software to run their payroll and that will still be the case when PAYE Modernisation goes live on 1 January 2019. I am aware that Revenue has engaged extensively with the payroll software industry to ensure, as far as possible, that the necessary changes to their systems will be ready on time. Consequently, the processes for these employers before and after 1 January 2019 will be broadly similar.
For employers who do not use payroll software, Revenue is providing an easy-to-use process within the Revenue Online Service (ROS) to capture payroll data for each employee. The process includes data screens that the employer will be obliged to complete for each employee every time a pay-run is completed (normally weekly, fortnightly or monthly). The burden associated with this work will be offset to an extent by the abolition of the previously mentioned forms that operate under the current system. In addition, the data required is in line with what employers are currently required to provide on an employee’s payslip under employment law. It is also very important to note that there is no change to current PAYE payment dates under the Modernisation programme.
I know that Revenue is very conscious that some employers may experience difficulties in the early phases of PAYE Modernisation and has assured me that it will make every effort to assist where required. For example, the Revenue Employer Helpdesk will have significant additional resources available to it to meet customer demand and officials will be available to visit employers should the need arise. Revenue has also assured me that it is not the intention to impose sanctions such as interest and penalties during the early transitional months where employers do their best to comply. However, Revenue always reserves the right to impose sanctions where there is clear non-engagement with the law.
Finally, while it is a matter for each employer to consider the impact that PAYE Modernisation will have on payroll arrangements and to put steps in place to ensure compliance with the new requirements, I would strongly encourage that they pro-actively engage with the changeover. I would particularly recommend that they review the very detailed PAYE Modernisation material that is available on the Revenue website at link www.revenue.ie/pmod174 and that they contact the Revenue Employer Helpdesk at telephone number 01-7383638 if they have any queries or require any clarifications.
I would also recommend that employers consult their payroll software providers as a priority to ensure the payroll systems are compatible with the requirements for PAYE Modernisation.
177. Deputy Jack Chambers asked the Minister for Finance the position regarding inheritance tax thresholds in cases in which a niece or nephew is inheriting following Budget 2019; and if he will make a statement on the matter. [44807/18]
Amharc ar fhreagraFor the purposes of Capital Acquisitions Tax, the relationship between the person who provides the gift or inheritance and the beneficiary determines the threshold, known as the ‘Group threshold’, for the value of gifts or inheritances below which gift or inheritance tax does not arise.
There are three separate Group thresholds based on the relationship of the beneficiary to the disponer. The Group A threshold applies, in general, where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. The Group B threshold applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer. The Group C threshold applies in all other cases.
In Budget 2019, I announced an increase in the CAT Group A threshold from €310,000 to €320,000 in response to particular concerns on the tax burden arising from the inheritance of the family home. In the case of a niece or nephew inheriting, the Group B threshold applies and this was not changed in Budget 2019 and is currently €32,500.
178. Deputy Paul Kehoe asked the Minister for Finance if a brother-in-law or sister-in-law rents his or her lands to a brother-in-law or sister-in-law, if he or she can avail of the land leasing exemption; and if he will make a statement on the matter. [44815/18]
Amharc ar fhreagraI understand that the Deputy’s question refers to the leasing of farm land by a lessor to their brother-in-law or sister-in-law. I am advised by Revenue that the leasing of land to the spouse or civil partner of a brother or sister of the lessor or the leasing of land to the brother or sister of a spouse or civil partner of a lessor is regarded as a lease between connected persons and is not eligible for relief on the long-term leasing of farm land.
Section 664 of the Taxes Consolidation Act 1997 provides relief from income tax for certain income from the long-term leasing. The relief is available, subject to a maximum limit, where farmland is leased to a qualifying lessee for a period of five years or more. In order to qualify as a qualifying lessee for the purpose of the relief, the lessee must not be connected with the lessor, or with any of the lessors if there is more than one. The rules for establishing whether or not persons are connected are laid down by Section 10 of the Taxes Consolidation Act 1997 which sets out that a lessor is not entitled to relief where the land is let to family members or family members of their spouse or civil partner.
The restriction on leases between connected persons is intended to prevent the misuse of the exemption. In addition, allowing relief in cases where the land was leased to connected persons could delay succession or lead to the fragmentation of holdings.
The connected party restriction has applied since the introduction of the relief over 30 years ago.
179. Deputy Pearse Doherty asked the Minister for Finance the way in which the annual rent of a mobile home is affected by the changes to VAT made in budget 2019; and if he will make a statement on the matter. [44819/18]
Amharc ar fhreagraThere has been no change to the application of VAT in respect of the provision of long term hire of a mobile home, which is subject to the standard rate of VAT, currently 23%.
As announced in the Budget, the second reduced VAT rate of 9% will increase to 13.5% on certain goods and services, supplies of catering and restaurant services, tourist accommodation, hotel and other holiday accommodation. Mobile homes rented out on a short-term basis to holiday makers fall under this category.
180. Deputy Louise O'Reilly asked the Minister for Finance the location of the submissions made in the consultations undertaken by his Department in each of the past ten years in tabular form; and if he will make a statement on the matter. [44859/18]
Amharc ar fhreagra181. Deputy Louise O'Reilly asked the Minister for Finance the consultations undertaken by his Department in each of the past ten years in tabular form; and if he will make a statement on the matter. [44877/18]
Amharc ar fhreagraI propose to take Questions Nos. 180 and 181 together.
I am assuming that the Deputy is referring to public consultations undertaken by my Department and have included the requested information in tabular form:
|
Year |
Consultations undertaken (to cover each of the years 2009 - 2017 and to-date in 2018) |
|
2009 |
Consultation Paper on Implementation of the Consumer Credit Directive 2008 |
|
2010 |
Mortgage Arrears and Personal Debt Expert Group |
|
2011 |
Public Consultation Commission on Credit Unions |
|
2011 |
Public Consultation held to inform the Report of the Commission Credit Unions 2011 |
|
2011 |
Credit Suggestions Initiative |
|
2011 |
Legacy Property Based Reliefs |
|
2012 |
Public consultation on the Central Bank (Supervision and Enforcement) Bill 2011 |
|
2012 |
Public Consultation on General Scheme of the Credit Union Bill 2012 |
|
2012 |
National Discretions SEPA |
|
2012 |
Consultation on the proposed Credit Reporting Bill |
|
2012 |
Film Relief |
|
2012 |
VRT and Motor Tax |
|
2012 |
Donations to Approved Bodies |
|
2012 |
Film Relief |
|
2012 |
Receiverships |
|
2013 |
Remuneration discretions in the Capital Requirements Regulation and Directive (CRD IV) |
|
2013 |
Proposed changes to Pay & File date |
|
2013 |
Member State discretions in the Capital Requirements Regulation and Directive (CRD IV) |
|
2013 |
Review of Research and Development Tax Credits |
|
2013 |
Receiverships (follow-up) |
|
2014 |
Public consultation on Consumer Protection on the Sale of Loan Books |
|
2014 |
Second Irish Language Scheme |
|
2014 |
Transposition of the Bank Recovery and Resolution Directive |
|
2014 |
Stabilisation Levy Consultation February 2014 |
|
2014 |
SME Equity Finance |
|
2014 |
Certain Discretionary Measures in the Solvency II Directive |
|
2014 |
Member State discretions available in the transposition of the 2014 Mortgage Credit Directive |
|
2014 |
IBFD Spillover Analysis - Possible Effects of the Irish Tax System on Developing Economies** Note: The consultation on IBFD Spillover was carried out by my Department and submissions were provided to external consultants commissioned to undertake the Spillover Analysis costing €94,678.00.OECD Base Erosion and Profit Shifting Project in an Irish Context |
|
2014 |
Investor Compensation Act Regulations |
|
2014 |
IBFD Spillover Analysis - Possible Effects of the Irish Tax System on Developing Economies |
|
2014 |
OECD Base Erosion and Profit Shifting Project in an Irish Context |
|
2014 |
Agritaxation |
|
2014 |
Employment and Investment Incentive & Seed Capital Scheme |
|
2014 |
Special Assignee Relief Programme |
|
2014 |
Foreign Earnings Deduction |
|
2014-2015 |
European Markets Infrastructure Regulation (EMIR) |
|
2015 |
Amalgamation of the Offices of the Financial Services Ombudsman and the Pension Ombudsman |
|
2015 |
Joint Public Consultation Department of Finance/Central Bank of Ireland on Funding the Cost of Financial Regulation |
|
2015 |
Transposition of the Deposit Guarantee Scheme Directive |
|
2015 |
Tax treatment of expenses of travel and subsistence for employees and office holders |
|
2015 |
Consultation on national discretions - Multilateral Interchange Fee Regulation |
|
2015 |
Consultation on national discretions – EU Payment Accounts Directive |
|
2015 |
Public Consultation on the Potential of Taxation Measures to Encourage Development of Zoned and Serviced Land |
|
2015 |
Capital Markets Union Green Paper |
|
2015 |
Knowledge Development Box Consultation |
|
2015 |
Review of Local Property Tax |
|
2016 |
The use of intermediary-type structures and self-employment arrangements: implications for social insurance and tax revenues |
|
2016 |
Consultation on national discretions – EU Revised Payment Services Directive |
|
2016 |
National Discretions in the 4th Anti-Money Laundering Directive |
|
2016 |
Consultation on Double Taxation Treaty with the United States of America |
|
2016-2017 |
Taxation of share based remuneration |
|
2016-2017 |
Public Consultation on the Financial Institutions Levy |
|
2016-2017 |
Double Taxation Treaty with the United States of America |
|
2016-2017 |
Sugar Tax |
|
2016-2017 |
National discretions in the Markets in Financial Instruments Directive (MiFID II) |
|
2017 |
Third Irish Language Scheme |
|
2017 |
Public Consultation on the Tax and Fiscal Treatment of Landlords |
|
2017 |
Potential Regulation of Crowdfunding |
|
2017 |
Transposition of EU Directive 2016/97 on Insurance Distribution (IDD) |
|
2017 |
Review of the Application of Stamp Duty to the Stocks and Marketable Securities of Irish Incorporated Companies |
|
2017 |
Review of Ireland’s Corporation Tax Code (Feb – April 2017) |
|
2017 |
Betting Tax |
|
2017 |
Tax and fiscal treatment of landlords |
|
2018 |
Interdepartmental Pensions Reform and Taxation Group (IDPRTG)* *Note: The IDPRTG is chaired by the Department of Finance and includes representatives from this Department as well as from the Department of Public Expenditure & Reform, the Department of Employment Affairs & Social Protection, Revenue and the Pensions Authority |
|
2018 |
Consultation of the Feasibility of an Insurance Claim by Claim Register |
|
2018 |
Public Consultation on the Central Bank (National Claims Information Database) Bill |
|
2018 |
Public consultation to assist development of a new International Financial Services Strategy for Ireland**Note: The consultation closed on Thursday, 25th October 2018 and the Department is currently reviewing the submissions made. |
|
2018 |
Review of Corporation Tax Code (Oct 2017 – Jan 2018) |
|
2018 |
Controlled Foreign Company (CFC) rules Feedback Statement (September 2018) |
|
2018 |
Agritaxation |
|
2018 |
Employment and Investment incentive & Start Up Relief for Entrepreneurs |
|
2018 |
Review of Local Property Tax |
|
2018 |
Review of Issues re possible introduction of a Vacant Property Tax |
The Deputy may wish to know that with regard to 'location', I confirm that information pertinent to these consultations is stored and retained on Department files, in line with our Records Management Guidelines.
182. Deputy Seán Haughey asked the Minister for Finance the reason national lottery games are exempt from betting tax; and if he will make a statement on the matter. [44939/18]
Amharc ar fhreagraBetting tax is charged on sports betting, where the service is provided by a licensed bookmaker or betting intermediary. The National Lottery, on the other hand, is designed to generate substantial funds for the Exchequer to be expended on good causes.
Monies paid into the Central Fund are applied for one or more of the following causes, as the Government may determine from time to time:
(a) sport and recreation;
(b) national culture and heritage (including the Irish Language)
(c) the arts (within the meaning of the Arts Act 2003);
(d) health of the community;
(e) youth, welfare and amenities;
(f) natural environment; and
(g) such other objectives (if any) as the Government may determine from time to time.
In practical terms, that means every year approximately €225 million is available for good causes.
I have no plans to include National Lottery games within the scope of the betting tax.
