Written Answers Nos. 139-154
139. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the conviction of persons (details supplied) for the murder of a person; if he will lobby the Criminal Cases Review Commission for the case to be considered; and if he will make a statement on the matter. [49397/18]
Amharc ar fhreagraI am aware of the case to which the Deputy refers. Officials from my Department, based both in Dublin and Belfast, monitor this case as part of their wider engagement with the relevant authorities in Northern Ireland on justice and prison matters. The persons concerned were convicted of murder by joint enterprise at their trial in 2012. Their appeal against their convictions failed at the Belfast High Court in 2012 and in 2015 the Supreme Court in London refused them permission to mount a further appeal.
As the Deputy is aware, the case is now being looked at by the Criminal Cases Review Commission, an independent public body which is responsible for reviewing possible miscarriages of justice in England, Wales, and Northern Ireland. At this stage in the proceedings it would be inappropriate for me to comment further. It is important that we respect the legal process and allow time for it to reach its conclusion.
My officials in the Irish Secretariat in Belfast regularly engage with the NI Department of Justice, the Northern Ireland Office, the Northern Ireland Prison Service, the Criminal Justice Inspectorate, the NI Police Ombudsman, and NI Prisoner Ombudsman. In addition, at the recent British-Irish Intergovernmental Conference, Minister Flanagan and I engaged with the Chancellor of the Duchy of Lancaster, David Lidington and the Secretary of State for Northern Ireland, Karen Bradley, on matters related to Security Cooperation.
Officials will continue to monitor developments in this case and the Government will take action as appropriate. In the absence of a devolved Assembly, it is regrettable that we do not have a locally elected and accountable Justice Minister with whom we could engage with on matters such as this but we will continue our efforts in this regard.
140. Deputy Timmy Dooley asked the Tánaiste and Minister for Foreign Affairs and Trade the fees paid and services rendered to a person (details supplied) in each of the years 2013 to 2017 and to date in 2018; and if he will make a statement on the matter. [49425/18]
Amharc ar fhreagraMy Department has not engaged the named person to provide any services during the period 2013 to date in 2018 and therefore no fees have been incurred.
142. Deputy Timmy Dooley asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide a timeline for the development of his Department's specific climate change targets; and if he will make a statement on the matter. [49569/18]
Amharc ar fhreagraFailure to address climate change will seriously affect all countries. Already, vulnerable people and communities in the least developed countries, in particular women and children, are struggling to cope with the consequences of erratic weather patterns. Additionally, an increasing number of severe weather events is putting response systems and communities under strain.
Through Ireland’s official overseas assistance programme, Irish Aid, funding is provided for climate adaptation and mitigation activities, particularly in least developed countries. This funding consists of contributions to multilateral organisations, grants to NGOs, and programmes implemented through our Embassies.
In 2016, the Programme for Government committed Ireland to spending €175m in climate finance to 2020. We are well on track to meet that target. Irish climate finance expenditure is rigorously tracked, with annual reporting to the UN on how Ireland is meeting commitments under the Paris Agreement on Climate Change. In 2016, Ireland was voted by Adaptation Watch as the second most transparent donor in its reporting of climate finance.
In that year, almost €53m was spent on international climate action, rising to €64m in 2017. The vast majority of these funds were targeted at adaptation activities for the poorest people in Least Developed Countries. This finance was 100% in grant form. A similar outturn for Irish Aid climate expenditure in 2018 is anticipated.
A new policy on international development is currently being finalised, which will set out my Department’s ambitions for climate action in the years ahead, as the Irish Aid budget increases in line with the Government’s commitment - set out in the Global Ireland policy document launched earlier this year - to reach the UN target of 0.7% of GNI for official development assistance by 2030.
143. Deputy Eoin Ó Broin asked the Minister for Finance if the social housing construction commitments in the National Development Plan 2018 to 2027 are accounted for in the general Government balance in each of the years concerned. [48891/18]
Amharc ar fhreagraThe general government balance figure in Table 8 of the Economic and Fiscal Outlook, published in Budget 2019, takes into account capital allocations as outlined in the National Development Plan.
The National Development Plan, including social housing construction commitments, forms the basis for the voted capital allocations outlined in Table 8.
Thereafter, the general government gross fixed capital formation figure adds in any relevant expenditure from other general government bodies, assesses the voted expenditure and classifies it accordingly within the statistical framework.
144. Deputy Micheál Martin asked the Minister for Finance if he will report on his recent announcements on increasing the tax thresholds at the lower and upper rate. [49141/18]
Amharc ar fhreagraAs I said in my Budget speech, it is the Government’s position that workers start to pay too high a rate of income tax at too low an income level. We cannot hope to remain competitive if someone on a relatively low income and who decides to work a few hours overtime has nearly half that extra money taken in tax.
Therefore, in Budget 2019 I have once again increased the entry point to the higher rate of income tax for all earners by €750, and reduced the 3rd rate of USC from 4.75% to 4.5%.
The impact of these changes is that the top marginal rate on incomes up to €70,000 will be reduced to 48.5% and fewer people on incomes around the national average will have any income subject to the 40% rate of income tax.
By making these changes, the Government has fulfilled our commitment to make steady and sustainable progress in reducing the income tax burden for low and middle income earners by concentrating on increasing the level that workers pay the marginal rate of income tax.
As I have stated on many occasions, we plan to continue this progress in the coming years within available resources, to make sure that Ireland remains competitive.
The extent to which it may be possible to make further progress in this regard will depend on the overall resources available, but as the Taoiseach recently announced, over the next five Budgets we will commit to increasing the point at which people pay the top rate of tax to €50,000 for a single person or €100,000 for a two income couple.
145. Deputy Pearse Doherty asked the Minister for Finance the cost incurred by a bank (details supplied) for its corporate hospitality event at the recent Ireland versus New Zealand rugby match. [48844/18]
Amharc ar fhreagraAs the Deputy is aware, I have no role in the day to day commercial operations of any bank in which the State has a shareholding and therefore the information which the deputy requests is not held within my department.
146. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 51 of 9 October 2018, if a response will issue to a further related query raised in correspondence (details supplied). [48856/18]
Amharc ar fhreagraPrimary responsibility for the accuracy, compilation and publication of trade statistics rests with the Central Statistics Office (CSO) and the Revenue Commissioners has no authority to divulge the information it collects (on behalf of the CSO) to any third party.
This remains the case even in situations where a trader provides incorrect information. In this regard, the Deputy will appreciate that the accuracy of the information provided by Revenue to the CSO is very much dependent on the information received from traders.
Regarding the case in question, Revenue has consulted with the CSO on the issue and has been advised that the matter is under review. The CSO has also confirmed that contact will be made with the relevant party in the coming week.
147. Deputy Catherine Murphy asked the Minister for Finance the analysis undertaken regarding increasing betting taxes; if the industry was consulted in relation to the issue; if revenue raised from a betting tax will be held in central funds; his plans to redistribute funds to support services for persons with a gambling addiction; and if he will make a statement on the matter. [48906/18]
Amharc ar fhreagraAs announced in the Budget I have increased the rate of betting duty from 1 per cent to 2 per cent for all bookmakers and the rate of betting intermediary duty from 15 per cent to 25 per cent on the commission earned for betting intermediaries. These measures will take effect from 1 January 2019. All receipts from betting duty go to the Exchequer.
The rate of betting duty at 1 per cent on the amount of bets wagered in Ireland is at an all-time low, and betting duty receipts are exceptionally low when compared to other sectors subject to excise taxes. It is also the case that there is no VAT applied on betting transactions. With the Betting (Amendment) Act 2015 now well embedded in, I believe it is timely to increase the rates of Betting Duty and Betting Intermediary Duty.
I am familiar with arguments put forward by the betting sector regarding the impact of the increase in betting duty. I acknowledge that advances in technology have challenged existing business models and have changed the structure of many markets, including the betting market, with more betting taking place online. I further acknowledge that smaller bookmakers may have ongoing difficulties competing in that environment or indeed with large retail bookmakers. While I have sympathy for small bookmakers I cannot apply the increase to some bookmakers and not others. Ultimately many taxes on goods or services are passed through to the end consumers and bookmakers will need to make commercial decisions on such matters.
I should point out that my Department held a consultation with the sector last year asking if the current model was appropriate and the overwhelming response was that it was. The main focus of the sector's engagement during this consultation was to oppose any increase in the betting duty, which leaves me with few options in this regard other than to impose a straight forward increase in the current regime.
We must acknowledge the raised public consciousness of the problem of gambling in society. While problem gambling can result in the problem gambler, and their family, bearing the severest of economic and of course personal costs, the social costs of problem gambling can extend to their employers and to public institutions in the health, welfare and justice systems, such costs ultimately borne by taxpayers. This needs to be better reflected within the betting duty regime.
The Government fully accepts that the issue of problem gambling is a serious one that needs to be addressed. Earlier this year the Government approved the drafting of a new general scheme of a Gambling Control Bill which will provide for a strengthened regulatory framework for the wider gambling sector. My colleague, Minister of State Stanton, has stated that a key element of the proposed new Gambling Control legislation is that it would permit the establishment and operation of a social fund supported by industry levies, further that such a fund will support those professional expert organisations involved in addiction treatment.
148. Deputy Eamon Scanlon asked the Minister for Finance further to Parliamentary Question No. 59 of 19 September 2018, the way in which tax (details supplied) that has been deducted in the UK will be reflected here; and if he will make a statement on the matter. [48863/18]
Amharc ar fhreagraI am advised by Revenue that in the case at hand, it appears from the information provided so far that tax may have been deducted from this taxpayer’s pension in the United Kingdom in contravention of the Double Taxation Convention (“the Convention”) between Ireland and the United Kingdom of 1976.
Double Taxation Conventions allocate taxing rights between Contracting States. Articles 17 (Pensions) and 18(2) (Government Service) of the Convention gave Ireland an exclusive taxing right over this taxpayer’s pension. As a consequence, the UK did not have a right to tax this pension and if it did so, it was in contravention of the Convention. Ireland had the right to tax the pension without having to provide relief (i.e. give a credit) for tax deducted in the United Kingdom against the Convention.
If the taxpayer considers that Revenue’s or Her Majesty's Revenue and Customs’ actions have resulted in taxation not in accordance with the Convention she may initiate a Mutual Agreement Procedure under Article 24 of the Convention. Both Competent Authorities will endeavour to solve the case by mutual agreement with a view to avoid the double taxation that arose from the incorrect application of the Convention.
I am advised that Revenue will contact shortly the Deputy’s office to provide information on how to initiate a Mutual Agreement Procedure and the contact details of Revenue’s Competent Authorities.
149. Deputy Anne Rabbitte asked the Minister for Finance the number of employees that have availed of childcare as a benefit-in-kind in each year since 2005. [48865/18]
Amharc ar fhreagra150. Deputy Anne Rabbitte asked the Minister for Finance the number of employers that provide childcare either onsite or offsite as a benefit-in-kind to their employees in tabular form. [48866/18]
Amharc ar fhreagra151. Deputy Anne Rabbitte asked the Minister for Finance the estimated cost of reducing the rate at which childcare benefits under the benefit-in-kind scheme are taxed by one, two, three, four, five and six percentage points. [48869/18]
Amharc ar fhreagra165. Deputy Fiona O'Loughlin asked the Minister for Finance the number of employees that avail of childcare as a benefit-in-kind from their employer. [49068/18]
Amharc ar fhreagraI propose to take Questions Nos. 149 to 151, inclusive, and 165 together.
I am advised by Revenue that Benefit-In-Kind is declared on tax returns as a total figure rather than by individual benefit type. Therefore, there is no basis available to separately compile the numbers of employees availing of childcare as a Benefit in Kind, or the number of employers providing childcare as a Benefit in Kind.
Regarding Question No. 151, as the value of childcare as a Benefit in Kind cannot be isolated, it is also not possible to estimate the costs of reducing the rate of Income Tax on childcare.
152. Deputy Michael McGrath asked the Minister for Finance the number of persons that availed of exemptions under the Central Bank’s macro-prudential mortgage rules by first time buyers and second and subsequent buyers each month since the establishment of such rules; and if he will make a statement on the matter. [48872/18]
Amharc ar fhreagraThe Central Bank mortgage lending measures are now in place as a permanent feature of the market and are operating in line with their stated objectives of enhancing the resilience of banks and borrowers to future shocks and reducing the risk of credit - house price spirals from developing.
The Central Bank introduced proportionate limits specifically to allow flexibility by lenders when assessing individual cases. The proportionate limits mean that lenders are able to make decisions based on an individual borrower’s circumstances up to a specific limit. Lenders are still required to assess an individual borrower’s affordability and lend prudently on a case-by-case basis, in line with the requirements of the Consumer Protection Code and other regulations.
The Central Bank advises that the table below provides the number of principal dwelling home loans drawn-down for each month since the introduction of the Central Bank mortgage measures that were issued above either the loan-to-value or loan-to-income limits.
Number of Loans Drawn-down with Allowances
|
Month |
FTBs Total Allowances |
SSBs Total Allowances |
|
Feb-15 |
1 |
14 |
|
Mar-15 |
25 |
21 |
|
Apr-15 |
55 |
76 |
|
May-15 |
131 |
83 |
|
Jun-15 |
213 |
164 |
|
Jul-15 |
251 |
186 |
|
Aug-15 |
249 |
195 |
|
Sep-15 |
270 |
200 |
|
Oct-15 |
250 |
214 |
|
Nov-15 |
204 |
162 |
|
Dec-15 |
205 |
129 |
|
Jan-16 |
134 |
113 |
|
Feb-16 |
160 |
115 |
|
Mar-16 |
139 |
111 |
|
Apr-16 |
147 |
130 |
|
May-16 |
183 |
132 |
|
Jun-16 |
250 |
175 |
|
Jul-16 |
226 |
179 |
|
Aug-16 |
226 |
167 |
|
Sep-16 |
232 |
199 |
|
Oct-16 |
283 |
226 |
|
Nov-16 |
334 |
263 |
|
Dec-16 |
333 |
256 |
|
Jan-17 |
148 |
214 |
|
Feb-17 |
169 |
174 |
|
Mar-17 |
220 |
227 |
|
Apr-17 |
203 |
239 |
|
May-17 |
294 |
272 |
|
Jun-17 |
331 |
275 |
|
Jul-17 |
339 |
302 |
|
Aug-17 |
376 |
272 |
|
Sep-17 |
329 |
244 |
|
Oct-17 |
316 |
264 |
|
Nov-17 |
341 |
265 |
|
Dec-17 |
331 |
218 |
|
Jan-18 |
191 |
175 |
|
Feb-18 |
217 |
159 |
|
Mar-18 |
242 |
176 |
|
Apr-18 |
269 |
195 |
|
May-18 |
301 |
235 |
|
Jun-18 |
242 |
234 |
153. Deputy Pearse Doherty asked the Minister for Finance the cost or revenue raised by a policy of a 5% income levy on income above €140,000 for individual income based on the latest available individualised data together with the tapering of tax credits on individual income between €100,000 and €140,000 at the rate of 2.5% per €1,000. [48932/18]
Amharc ar fhreagraI am advised by Revenue that to calculate a combined cost for the proposals described by the Deputy, it is necessary to base all costs and calculations on 2016 tax return data. An exercise was undertaken on 2016 data to break down the gross incomes of taxpayer units to an individualised level and a manual estimation process (outside of Revenue’s usual tax modelling software) was required. As the exercise can only split gross incomes, this estimation process requires certain assumptions to be made in relation to the distribution of credits for the tapering on individual income.
Furthermore, it is assumed that the 5% levy on income above €140,000 proposed by the Deputy will not be subject to any credits, reliefs or exemptions.
Subject to these assumptions the estimated yield from these changes is set out in the table below.
|
- |
First Year (€m) |
Full Year (€m) |
|
Yield from tapering credits by 2.5% per €1,000 for individualised gross incomes between €100,000 and €140,000 |
185 |
220 |
|
Yield from 5% levy on individual incomes over €140,000 |
235 |
310 |
|
Total Yield |
420 |
530 |
154. Deputy Pearse Doherty asked the Minister for Finance the revenue raised by increasing the rate of exit tax to be introduced in the Finance Bill 2018 from 12.5% to 20%, 25%, 30% and 33% respectively. [48961/18]
Amharc ar fhreagraAs part of Ireland’s commitment to ongoing corporate tax reform, including the implementation of the Anti-Tax Avoidance Directives (ATAD), Finance Bill 2018 introduced a new ATAD-compliant exit tax regime with effect from Budget night.
The ATAD exit tax regime will apply a charge to tax at 12.5% on certain unrealised capital gains where companies migrate or transfer assets offshore, without a disposal of the assets, such that they leave the scope of Irish tax. It replaces a pre-existing, more narrowly focused exit charge that was designed as an anti-avoidance measure following the identification of a number of transactions whereby Irish companies migrated their residence to avoid the charge to Irish Capital Gains Tax, disposed of an asset, and then subsequently migrated back into the State.
The new ATAD-compliant exit tax is a broad-based measure and it is expected that in time it will give rise to Exchequer revenue. However the nature of the charge is such that it will arise on occasional, stand-alone transactions – a charge will arise where a company migrates residence while holding assets, or transfers assets abroad, such that the assets leave the Irish tax net, in cases where those assets have increased in value and therefore hold an unrealised gain.
An estimation of the future recurring annual yield would require predicting future changes in asset values, in addition to projections as to future restructuring of companies. As any such estimate at this point would be highly theoretical, no specific provision was made in the Budgetary arithmetic for future exit tax yield, and equally it would not be possible to estimate the change in revenue if an alternate tax rate were to be applied.
With regard to the rate of exit tax, I am aware that the Deputy has queried the number of submissions to my Department’s public consultation on ATAD implementation which recommended a 12.5% exit tax rate. In total, 22 submissions were received in response to the consultation document, of which 15 responded to the question on exit tax. Of those 15, 12 proposed a rate of 12.5% and the remaining 3 responses did not make a recommendation with regard to the rate. All the submissions received are published in full on my Department’s website.
