Written Answers Nos. 34-58
34. Deputy Robert Troy asked the Minister for Finance if a person (details supplied) will be taxed on the emergency Covid-19 payment they received for a number of weeks whilst unable to work due to Covid-19 restrictions. [12769/20]
Amharc ar fhreagraPayments under the Temporary Wage Subsidy Scheme (TWSS) are subject to income tax as are Pandemic Unemployment Payments. The Payments under TWSS are also subject to USC while Pandemic Unemployment Payments follows the general taxation rule for social welfare payments and are exempt from that charge. Amounts paid under both schemes are exempt from PRSI charges in the case of employees.
Revenue has advised me that the person in question initially received PUP payments in April 2020 and transferred to TWSS payments in May 2020. Neither of the schemes is being taxed in real-time through the PAYE system and the person may become liable for tax and USC (for TWSS) at the end of the year. Any liabilities due will be calculated by Revenue through the PAYE End of Year Review process.
The level of tax and USC due by the person may be reduced or eliminated by the amount of unused tax credits available to him at the end of the year. Any liability due may also be further reduced if the person has additional tax credits, for example health expenses, to offset. Revenue has also very recently placed all recipients of the TWSS and the PUP, including the person in question, on the ‘week 1 basis’ of taxation for the remainder of the year. This ‘preserves’ unused tax credits that can then be used to offset any tax or USC liabilities that arise for 2020.
Finally, Revenue has assured me that if any tax and USC liabilities still arise following the allocation of unused credits, it will work with the person to collect the outstanding liabilities over an extended period. This will be achieved by reducing his tax credits for future years, thereby minimising any financial hardship for him to the greatest extent possible.
35. Deputy Catherine Murphy asked the Minister for Finance if an employer is obliged to top-up a wage if it is accessing the temporary wage subsidy scheme (details supplied); if his attention has been drawn to construction companies accessing the scheme and failing to top-up the wages of their staff; if his officials and or the Revenue Commissioners engaged regarding the Sectoral Employment Order (Construction Sector) 2019 in the context of establishing the scheme and rolling it out; and if he will make a statement on the matter. [12802/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed due to the restrictions brought in by the Government or has continued to trade with employees continuing to part-time or work full time with similar hours as before the Covid-19 pandemic.
The employer is expected to make best efforts to maintain the employee’s net income reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. However, there is no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in Gross Pay when running its payroll.
I have been advised by Revenue that the question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. The scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned; neither are Sectoral Employment Orders relevant to the operation of the scheme.
Finally, I would add that details of subsidy payments made by pay date are available to view in each employee’s myAccount record on Revenue’s online system. This facility allows employees to see whether their employer is participating in the scheme and being refunded a wage subsidy on their behalf. Where the amount of subsidy paid is available from the relevant employer payroll submissions made to Revenue, that amount is also displayed.
36. Deputy Sean Sherlock asked the Minister for Finance if a tax credit issue will be resolved for a person (details supplied). [12815/20]
Amharc ar fhreagraI am advised by Revenue that the matter to which the Deputy is referring has been resolved.
Revenue has updated the person’s tax record to reflect her current employment and has issued a revised Revenue Payroll Notification (RPN) to her employer. Once the RPN is activated by the employer the person will be automatically refunded any tax and USC overpayments in her next salary payment.
Revenue has also advised me that an amended tax credit certificate has issued to the person setting out the revised position.
37. Deputy Frankie Feighan asked the Minister for Finance further to Parliamentary Questions Nos. 325 to 329, inclusive, of 16 June 2020, the Garda stations included in the Garda building and refurbishment programme 2016–2021; if new Garda building upgrade projects at stations not originally included in the plan as set out by the Minister for Justice and Equality in 2015 have now been included; the details and cost of these new developments; the estimated total State investment in the plan; and if he will make a statement on the matter. [12820/20]
Amharc ar fhreagra38. Deputy Frankie Feighan asked the Minister for Finance further to Parliamentary Questions Nos. 325 to 329, inclusive, of 16 June 2020, his plans for the further upgrading of the current Garda station in Sligo; the funding to date spent on upgrading the station since 2018; the estimated total investment in the station when all upgrade works are completed; the cost-benefit analysis conducted on the decision to divert planned State funding away from the plan to build a new Garda station in Sligo; and if he will make a statement on the matter. [12826/20]
Amharc ar fhreagra39. Deputy Frankie Feighan asked the Minister for Finance further to Parliamentary Questions Nos. 325 to 329, inclusive, of 16 June 2020, his plans for the site of the proposed new Garda station in Caltragh, County Sligo in view of the extensive investment into the purchase of the site already undertaken; and if he will make a statement on the matter. [12827/20]
Amharc ar fhreagraI propose to take Questions Nos. 37 to 39, inclusive, together.
I must advise the Deputy that matters pertaining to Garda policy are in the first instance for my colleague, the Minister for Justice. As such, my Department has no basis on which to provide a detailed response on this matter. However, the Office of Public Works (OPW), under the remit of the Department of Public Expenditure and Reform have provided information in relation to Sligo Garda Station, which I have included below.
The expenditure by OPW Property Maintenance on Sligo Garda Station from 2017 is as follows:
|
|
OPW Funded |
Garda funded |
Total |
|
2017 |
€58,163.31 |
€199.49 |
€58,362.80 |
|
2018 |
€76,946.19 |
€39,171.39 |
€116,117.58 |
|
2019 |
€291,527.54 |
€419,566.37 |
€711,093.91 |
|
2020 |
€142,781.50 |
€493.73 |
€143,275.23 |
Property Maintenance are on site in Sligo Garda Station working on the cell upgrade, this project was recently amended to increase the number of cells in the station from 3 to 5. This project is co-funded by the OPW and GEM.
The project consists of internal upgrade works to provide a new custody suite including three new cells built to current anti-ligature standards, prisoner processing, interview, solicitor and doctor's rooms. The three existing cells were not suitable for upgrading and the proposed new cells are located in a different section of the building requiring adjacent prisoner processing facilities. Following a review by GEM the contract was amended to provide a further 2 cells – work is continuing on this project and works are currently due to be completed in December 2020. The balance to pay on this project is approximately €1.3 million.
Property Maintenance are also currently preparing a tender package to provide a portacabin for Scene of Crimes unit at Sligo, this is a Garda funded project with an estimated cost of €200,000.
Sligo Garda Station was announced as part of the Garda Building & Refurbishment Programme 2016-2021. It was previously confirmed as a Public Private Partnership project, however in a PQ response on 16 June, Minister Charlie Flanagan advised that:
Sligo station is undergoing a very extensive refit and I understand that this is felt to be a more appropriate and much faster way of delivering a modern Garda Station for Sligo, in accordance with its role in the new Garda Operating Model and having regard to the fact that the current location of the station is considered optimum from the operational perspective.
It is however important to note that, while it was decided that delivery of a new station in Sligo under the PPP was no longer justified, the Commissioner decided that the upgrading of the existing station to a high standard will continue.
I can confirm that this decision was not made in light of the Covid-19 pandemic. The Commissioner's decision was communicated to my Department by letter received on 2 January 2020.
40. Deputy Alan Kelly asked the Minister for Finance the amount spent on the Commission of Investigation into the Irish Bank Resolution Corporation in each of the years 2015 to 2019 and to date in 2020; and if he will make a statement on the matter. [12840/20]
Amharc ar fhreagraA breakdown by year of the costs incurred by the Department of Finance on the IBRC Commission of Investigation is set out in the table below.
|
Year |
Total |
|
2015 |
€223,724.55 |
|
2016 |
€27,180.63 |
|
2017 |
€74,303.49 |
|
2018 |
€31,383.64 |
|
2019 |
€280,405.67 |
|
2020 (YTD) |
€117,374.60 |
|
Total |
€754,372.58 |
The total amount of €754,372.58 is made up of legal costs of €728,155.17 and €26,217.41 which was spent on an eDiscovery tool required to comply with directions from the Commission.
In addition to the costs incurred by the Department of Finance, the Special Liquidators of IBRC incurred the costs as set out below.
|
Year |
Total |
|
2015 |
€2,249,711 |
|
2016 |
€764,040 |
|
2017 |
€121,951 |
|
2018 |
€45,396 |
|
2019 |
€85,245 |
|
2020 (to end-May) |
€90,906 |
|
Total |
€3,357,249 |
The total amount of €3,357,249 is made up of KPMG costs of €2,787,131 and legal costs of €570,118.
42. Deputy Chris Andrews asked the Minister for Finance the measures which have been put in place for those that were in the process of buying a home but now find themselves on the temporary wage subsidy scheme; and if he will make a statement on the matter. [12876/20]
Amharc ar fhreagraIt is assumed that the Deputy is referring specifically to the position of those home buyers who require a mortgage to purchase the home.
The Central Bank has advised that, in relation to consumers who have or wish to obtain a mortgage and indeed in respect of financial services more generally, it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the Covid-19 pandemic.
Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The Banking & Payments Federation Ireland has published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of Covid-19 on their mortgage application.
Within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit, or temporarily suspend a mortgage approval in principle, is a commercial decision to be made by the regulated entity and it is not possible for me or the Central Bank to instruct lenders in that regard. Also, a loan offer may contain a condition that the lender can withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown and, in such cases, the decision to withdraw or vary the offer is a commercial and contractual matter for the lender.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
44. Deputy Paul Kehoe asked the Minister for Finance the status of an appeal by a person (details supplied); and if he will make a statement on the matter. [12929/20]
Amharc ar fhreagraI previously dealt with this issue in my reply to Parliamentary Question Dail Question No. 78 (Ref: 10965-20) answered on the 16th June 2020.
Revenue has reconfirmed to me that no interest has been charged in respect of the period that the cheque payment in question remained uncashed.
However, an interest charge remained in respect of the late payment of the liability and it is in this context that Revenue contacted the deceased person’s family representatives seeking supporting documentation in respect of the appeal against this charge.
Revenue has confirmed that the required documentation has now been received and the interest on late payment charge has been waived.
45. Deputy Brendan Griffin asked the Minister for Finance his views on matters raised in correspondence by a person (details supplied) in respect of hire purchase insurance claims; and if he will make a statement on the matter. [12946/20]
Amharc ar fhreagraAt the outset, it is important to note that as Minister for Finance, I cannot direct insurers as to the particulars of settlement offers they should either make or accept in settling claims, including for hire purchase insurance claims, as that is a decision for them considering the merits and specifics of each individual case.
However, in order to understand the nature of such Hire Purchase insurance claims, my officials contacted Insurance Ireland (the representative body for insurance providers in this country). In their reply, Insurance Ireland stated that when a vehicle is written off due to an accident or is stolen and not recovered the insurance company will make a settlement based on the value of the car (referred to as total loss settlement). However, if the car is under finance, there may be a difference between the value of the car at the time of the loss and the total amount of finance owed under the finance agreement (often this is impacted by the depreciation of the car and interest rate attached to the credit facility amongst other factors). They confirmed that the insured loss is the value of the car at the time of the loss not the total amount of finance (including any deposit paid for the car), and that it is very likely that the cost of finance outstanding on a car will be considerably in excess of the value of the car. They mentioned that this is particularly the case when there is also a requirement for a final payment included in the finance contract.
Insurance Ireland also noted that there are insurance products available, which are referred to as GAP (Guaranteed Asset Price) or RTI (Return to Invoice) insurance, which compensate the customer for the gap between the value of the car at the time of the loss and the cost to replace the car. However, they noted that this cover does not tend to be sold as part of a traditional motor policy, instead they are sold by the finance providers (in many instances these will be vehicle manufacturers and retailers). Therefore, Insurance Ireland advises that consumers review the finance documentation they received when they purchased the finance for the car with a view to understanding if they were offered GAP cover and if the potential risks associated with same was explained to them at the time of purchasing the finance.
In addition to the above, it is worth recalling that the Central Bank of Ireland’s Consumer Protection Code was introduced in 2006 and revised in 2012. It requires firms to act honestly fairly and professionally in the best interest of consumers, and to act with due care and diligence. The Code contains specific requirements in respect of the handing of claims, such as requiring firms to have certain procedures in place as well as requirements around the provision of information to consumers on claims. While the Central Bank of Ireland does not adjudicate on individual consumer complaints, the Code sets out how a regulated entity must engage with a consumer on complaints, which includes complaints around the handing of insurance claims.
In situations where a person is not satisfied with the actions of an insurance provider in terms of the settlement of a claim, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO).
The FSPO is a statutory official who acts as an independent arbiter of disputes, which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-5677000. Investigations by the FSPO are free of charge to the complainant.
Finally, Insurance Ireland also operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance, which can be accessed at: feedback@insuranceireland.eu.
46. Deputy Fergus O'Dowd asked the Minister for Finance if he will address concerns raised by a person (details supplied) in relation to their mortgage application and the subsequent knock-on effects of being placed on the temporary wage subsidy scheme; and if he will make a statement on the matter. [12994/20]
Amharc ar fhreagraAs you will be aware both officials and myself have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business customers affected by the COVID-19 crisis. Officials in my Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation.
The Wage Subsidy Scheme is one of the main tools with which we are protecting the income of employees who otherwise would not be working and it is hoped that it will be a major boost in saving the businesses for which they work. As of 18 June 551,800 employees have received a subsidy since the start of the Scheme, 232,400 employees received a subsidy in the previous week and an estimated 410,000 employees were being supported by the Scheme having received a subsidy in their most recent pay period.
Whilst I completely acknowledge the seriousness of the issue you have raised and its impact on those affected, what I cannot do is mandate how temporary payments received under the Wage Subsidy Scheme are treated in lending sustainability evaluations by regulators and lenders.
The banking crisis we faced over ten years ago was fuelled by unsustainable lending. There are now thankfully far firmer regulatory controls and restrictions on lenders. Speaking on this particular issue, on 7 May the Governor of the Central Bank publicly noted that if an individual borrower’s circumstances have changed such that doubt is cast over the sustainability of potential borrowing, it is in the best interests of the borrower and the bank if the situation is reviewed.
Furthermore as Minister for Finance I cannot mandate or overrule the internal risk assessment processes in any bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of banks in which the state has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
In relation to AIB, officials in the Department received the following advice from AIB Group:
“AIB is actively engaging with all customers who have applied for a mortgage with the bank. We are closely monitoring the impact of Covid-19 on our customers. AIB is required to complete a responsible and prudent assessment of all applications from the borrower’s and the lender’s perspective.
“Existing mortgage approvals (Approval in Principle – AIPs) are unaffected by Covid-19 (amount/rate/term etc.).
“When customers wish to progress to the loan offer stage, we are obliged to understand their current financial circumstances, as our primary concern is to do what is right for our customers, in the short and long term".
“Where a customer has been adversely impacted by Covid-19, and there are concerns about their longer term income to service the mortgage, it may not be in the customer’s best interest to proceed with the application at this time. The bank will engage with those customers individually over the coming months and deal with each one on a case by case basis.”
47. Deputy Seán Haughey asked the Minister for Finance if he will amend the temporary wage subsidy scheme in order that companies that were allowed by the Revenue Commissioners to make quarterly payroll returns are eligible having regard to a company (details supplied) that did not make a payroll return on 29 February 2020 but did make a payroll return as scheduled on 31 March 2020 and will do so again on 30 June 2020; and if he will make a statement on the matter. [12995/20]
Amharc ar fhreagraThe Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned is to ensure that employers experiencing significant negative economic disruption from the COVID-19 pandemic can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.
In the context of the compelling need for immediate implementation of the TWSS, the scheme had to build on data returned to Revenue through its real-time PAYE system for January and February 2020. The key eligibility criteria for the scheme, as prescribed in the underlying law, are that -
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020, which was recently extended, by concession, to ‘before’ 1 April 2020.
The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.
Under PAYE legislation employers who qualify to pay their PAYE/PRSI/USC liabilities to Revenue on a quarterly basis, but operate their payroll on a weekly, fortnightly or monthly basis, must file payroll submissions with Revenue each time they pay their staff. This payroll data is the key requirement without which the TWSS cannot operate and it is not possible to provide access to the system where employers have not met these statutory filing requirements.
Revenue has advised me that the difficulties encountered by the business in question in accessing the TWSS arose because it failed to file payroll submissions for January and February through the real-time PAYE system. The fact that the business is facilitated with a quarterly payment arrangement for its PAYE liabilities does not remove the requirement to file payroll submissions with Revenue each time it pays wages. The consequence of not filing the January and February payroll submissions is that the TWSS system cannot calculate a subsidy payment for the business in respect of its employee because the required data has not been provided. It is not possible for Revenue to develop solutions that could provide access where an employer has not adhered to the statutory requirements.
49. Deputy Colm Burke asked the Minister for Finance if he will consider an extension of Covid-19 pandemic support schemes to aid those in the photography and videography business sector until such time as the sector can sustainably recover; and if he will make a statement on the matter. [13149/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020 (The Act) and is being extended until the end of August.
The underlying legislation and the TWSS itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid-19 pandemic and the restrictions which were introduced as a result. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The sector to which the Deputy refers is no different in this regard.
The Government decided on 5 June 2020 to extend the Temporary Wage Subsidy Scheme (TWSS) until the end of August. The intention is to continue to monitor the scheme closely in the coming period. I expect that decisions will be taken at an appropriate time on next steps for the TWSS beyond end-August. In this regard, I acknowledge that certain sectors will face particular challenges into the future as we re-open our economy, and this is one of many factors that will inform such future decisions.
In relation to other direct support measures, I would draw the Deputys' attention to a recent publication by the Department of Business, Enterprise and Innovation, which outlines the key financial supports and resources that are being made available to help all businesses and sectors impacted by Covid-19. This publication is available at the following link:
https://www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/
50. Deputy Sean Fleming asked the Minister for Finance the position for companies operating the temporary wage subsidy scheme when some employees are brought back to work and other employees are not brought back; if employees that come back and are working go off the scheme and receive their full normal pay; if they are expected to work under the temporary wage subsidy scheme with no extra remuneration guaranteed; and if he will make a statement on the matter. [13197/20]
Amharc ar fhreagraSection 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 is the legislation underpinning the Temporary Wage Subsidy Scheme (TWSS). The Government’s priority in so far as the TWSS is concerned was, and is, to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for, and start to receive, payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria.
The key criterial for eligibility for the scheme, as prescribed in the underlying law, are that:
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020, but recently extended, by concession, to 1 April 2020.
The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.
The TWSS scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020.
There is no distinction made regarding the subsidy amount based on whether the business has closed for any defined period due to the restrictions brought in by the Government or has continued to trade with employees continuing to work full time or part time, with similar hours as before the Covid-19 pandemic. Eligibility is not dependent on employees being in or out of the workplace. However, if the employment ceases to be eligible for the TWSS and/or the employer is no longer receiving a subsidy in respect of that person, the question of the particular employment arrangements that might apply between the employer and the employee is outside the remit the scheme.
The employer is expected to make best efforts to maintain the employee’s net income, reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but, for Revenue operational systems reasons, the employer will need to enter at least €0.01 in Gross Pay when running its payroll.
If the employer makes an additional payment greater than the difference allowed by the scheme, then the subsidy value refundable to the employer will be reduced by this excess amount when the refund reconciliation is performed by Revenue in due course. The scheme is not prescriptive as regards the hours that must be worked.
Finally, Revenue published detailed guidance on employer eligibility and supporting proofs for the TWSS and it is available on the Revenue website:
https://www.revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf
52. Deputy Carol Nolan asked the Minister for Finance if the Revenue Commissioners collate data on the number of self-employed musicians here; and if he will make a statement on the matter. [13201/20]
Amharc ar fhreagraI am advised by Revenue that it uses the NACE (European Economic Activity Classification) system for categorising activities and taxpayers into sectors. Based on this classification, there were 2,415 self-employed income tax returns filed for 2017 (the latest year available) by taxpayers in the ‘Performing Arts’ category. The NACE system does not provide a more granular breakdown, such as ‘musician’ only.
53. Deputy Brendan Griffin asked the Minister for Finance if a decision on a temporary wage subsidy scheme application by a business (details supplied) in County Kerry will be reviewed to allow the business to reopen and in view of the circumstances; and if he will make a statement on the matter. [13204/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the COVID-19 pandemic on the economy. The underlying legislation and the scheme itself were developed within a very short timeframe to support the urgent Government objective of getting much needed assistance to employers and employees, where businesses have been seriously affected by the necessary restrictions introduced to fight the pandemic. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed.
The TWSS builds on data returned to Revenue by employers through the real-time PAYE System for January and February 2020. The key eligibility criteria for the scheme, as prescribed in the underlying law, are that -
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020, which was recently extended, by concession, to ‘before’ 1 April 2020.
The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.
Revenue has advised me that the weekly payroll submissions for February 2020 in respect of the business in question were not received until 10 June 2020, which is significantly outside of the ‘before’ 1 April 2020 deadline. Revenue has further confirmed that the January and March 2020 payroll submissions were also not received until 10 June 2020 and that over the course of 2019, payroll submissions were generally not received until well after the required deadlines. It is for these reasons that the business cannot access the TWSS and it is not possible for Revenue to design systems that will allow entry to the scheme where the legislative requirements have not been adhered to.
54. Deputy Catherine Murphy asked the Minister for Finance the supports and or tax credit support PAYE workers can avail of as a result of having to use their primary residence as a workplace during Covid-19 restrictions; and if he will make a statement on the matter. [13207/20]
Amharc ar fhreagraI am advised by Revenue that while working remotely does not entitle PAYE workers to a tax credit, there is a Revenue administrative practice in place relating to e-workers who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers.
e-Workers will incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs. Revenue allows an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI or USC.
Revenue has also advised me that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.
Where an employer does not pay €3.20 per day to an e-worker, I am advised by Revenue that employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use. PAYE workers can claim e-working expenses by completing an Income Tax return at year end by logging into the myAccount facility on the Revenue website.
Finally, I am advised that Revenue have published detailed guidance on this subject and on the question of how claims for e-working expenses should be calculated and submitted - see their Tax and Duty manual TDM 05-02-13 e-Working and Tax, which is available on their website.
55. Deputy Charlie McConalogue asked the Minister for Finance the steps persons (details supplied) can take in relation to a mortgage; and if he will make a statement on the matter. [13241/20]
Amharc ar fhreagraAs you will be aware both officials and myself have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business customers affected by the COVID-19 crisis. Officials in my Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation.
The Wage Subsidy Scheme is one of the main tools with which we are protecting the income of employees who otherwise would not be working and it is hoped that it will be a major boost in saving the businesses for which they work. As of 18 June 551,800 employees have received a subsidy since the start of the Scheme, 232,400 employees received a subsidy in the previous week and an estimated 410,000 employees were being supported by the Scheme having received a subsidy in their most recent pay period.
Whilst I completely acknowledge the seriousness of the issue you have raised and its impact on those affected, what I cannot do is mandate how temporary payments received under the Wage Subsidy Scheme are treated in lending sustainability evaluations by regulators and lenders.
The banking crisis we faced over ten years ago was fuelled by unsustainable lending. There are now thankfully far firmer regulatory controls and restrictions on lenders. Speaking on this particular issue, on 7 May the Governor of the Central Bank publicly noted that if an individual borrower’s circumstances have changed such that doubt is cast over the sustainability of potential borrowing, it is in the best interests of the borrower and the bank if the situation is reviewed.
Furthermore as Minister for Finance I cannot mandate or overrule the internal risk assessment processes in any bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of banks in which the state has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding this, officials in the Department requested a comment from PTSB on how it is dealing with customer queries in relation to the matter raised by you and received the following response:
“We have a duty of care to our customers to ensure that any lending is affordable for them. In accordance with consumer protection requirements, we are facilitating mortgage-approved customers on the TWSS in drawing down their loans subject to their employers providing assurance on the sustainability of their income when the TWSS comes to an end. We are doing everything we can to support our customers at this difficult time and are working with them on a case by case basis to assess their individual situations.”
In addition, the bank confirmed that it is happy to engage with any customer, in a confidential way, to address questions or concerns they might have.
56. Deputy Verona Murphy asked the Minister for Finance if he will reduce the VAT rate for the hospitality sector to assist the industry with recovery as a result of the impact caused by the Covid-19 crisis; and if he will make a statement on the matter. [13254/20]
Amharc ar fhreagra71. Deputy Brendan Smith asked the Minister for Finance his plans to reduce VAT on the hospitality and tourism sector in view of the adverse impact of Covid-19 on the sector; and if he will make a statement on the matter. [13525/20]
Amharc ar fhreagraI propose to take Questions Nos. 56 and 71 together.
The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
58. Deputy Eoin Ó Broin asked the Minister for Finance the number of residential units delivered by NAMA or NAMA debtors by county, price and type of building, that is house, apartment, duplex and so on in tabular form. [13275/20]
Amharc ar fhreagraNAMA has an objective of funding or facilitating the delivery of 20,000 residential units, subject to commercial viability, across NAMA-secured residential sites in Ireland. NAMA provides funding, on a commercial basis, to its debtors and receivers for the construction of new residential units where it can be shown that residential development will enhance the value of the secured-asset, consistent with section 10 of the NAMA Act.
Between 2014 and end-March 2020, NAMA has directly funded or facilitated the delivery of 11,761 units in Ireland. A breakdown of these units by county, price and type is set out below.
Table 1: Units delivered by County
|
County |
Units delivered between Q1 2014 and Q1 2020 |
|
Dublin |
8,449 |
|
Cork |
1,155 |
|
Kildare |
903 |
|
Wicklow |
504 |
|
Galway |
282 |
|
Meath |
134 |
|
Laois |
75 |
|
Wexford |
56 |
|
Louth |
46 |
|
Monaghan |
44 |
|
Kilkenny |
42 |
|
Clare |
37 |
|
Waterford |
34 |
|
Total |
11,761 |
Table 2: Units delivered by Price
|
Price Bracket |
% |
|
<€300k |
38% |
|
€300k-€500k |
45% |
|
>€500k |
17% |
|
Total |
100% |
Table 3: Units delivered by Type
|
Unit Property Type |
% |
|
Apartments |
35% |
|
Duplex |
3% |
|
Estate House Detached |
7% |
|
Estate House Semi-detached |
34% |
|
Estate House Terraced |
20% |
|
Town House |
1% |
|
Total |
100% |
