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Gnáthamharc

Tuesday, 20 Oct 2020

Written Answers Nos. 199-219

Financial Services Regulation

Ceisteanna (199)

Noel Grealish

Ceist:

199. Deputy Noel Grealish asked the Minister for Finance the date on which providers of hire purchase agreements and personal contract plan agreements will be authorised and fully regulated by the Central Bank and subject to the requirements of the consumer protection code 2012; the steps necessary to achieve same including if legislation is needed; the reason hire purchase and personal contract plan agreements have not been subjected to the same stringent regulation that applies to banks and credit unions in view of the fact that they have been in existence for over 20 years; and if he will make a statement on the matter. [30954/20]

Amharc ar fhreagra

Freagraí scríofa

As part of the review of the regulation of Personal Contracts Plans (PCPs) which I commissioned in 2018, Mr Michael Tutty considered the contents and recommendations of an earlier CCPC study on 'Personal Contract Plans: the Irish Market' and also a separate Central Bank of Ireland study 'An Overview of the Irish PCP Market'. Following his consideration of these reports and his other considerations, Mr Tutty produced his report entitled 'Review of the Regulation of PCPs' (available at: https://www.gov.ie/en/publication/5391e5-review-of-regulation-of-personal-contract-plans/).

The Tutty Report recommended that further consumer protections in relation to PCP agreements be introduced and, in particular, it recommended that the provisions of the Central Bank Consumer Protection Code which requires lenders to assess the suitability of the product for the consumer and also the ability of the borrower to repay the debt over the duration of the credit agreement, should be extended to hire-purchase/PCP agreements.

The implementation of this particular recommendation to all the providers of hire purchase and PCP agreements will necessitate new legislation and I have obtained Government approval to draft a Bill to achieve this (see relevant press release attached: https://www.gov.ie/en/press-release/ab741f-minister-donohoe-announces-government-approval-to-draft-legislation-/). It is the intention of Government to publish this Bill as soon as possible.

Hire-purchase providers (entities who underwrite hire purchase agreements) are not currently required to seek authorisation from the Central Bank (or the CCPC) for the provision of hire-purchase agreements such as PCPs. As the Consumer Protection Code is a binding statutory code on entities regulated by the Central Bank and hire purchase providers are not currently authorised by the Central Bank, they are not subject (for the provision of a hire purchase agreement) to the requirements of the Code.

The majority of consumer hire purchase agreements, such as PCPs, are provided through ‘credit intermediaries’ which are authorised by the CCPC. A car dealer would be a typical example of the type of entity that might act as a credit intermediary. Any intermediary who is arranging the credit for the consumer is acting as a credit intermediary, and an intermediary arranging such credit must seek authorisation from the CCPC to act as a credit intermediary. A list of authorised credit intermediaries is available on the CCPC website www.ccpc.ie.

The Deputy may also wish to note that consumers can refer complaints relating to PCP/ hire purchase providers to the Financial Services and Pensions Ombudsman.

Covid-19 Pandemic Supports

Ceisteanna (200, 201)

Niall Collins

Ceist:

200. Deputy Niall Collins asked the Minister for Finance if businesses that reopened after the first lockdown for a period of approximately two months and which have now closed due to level 3 restrictions can now warehouse tax liabilities for the period they traded between lockdowns; and if he will make a statement on the matter. [30979/20]

Amharc ar fhreagra

Niall Collins

Ceist:

201. Deputy Niall Collins asked the Minister for Finance if in circumstances in which a tax liability is warehoused, it will not prevent the Revenue Commissioners from issuing a tax clearance certificate to persons and businesses that have availed of the warehousing option; and if he will make a statement on the matter. [30980/20]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 200 and 201 together.

I am advised by Revenue that, if a business had re-opened but has had to close again as a result of the imposition of restrictions such as the “Level 3” restrictions to combat the spread of Covid-19 mentioned by the Deputy, the business can continue to warehouse VAT and PAYE (Employer) debts in respect of the extended restricted period, including the period while the business was temporarily re-open and trading, until the restrictions are lifted. This issue is covered in the current version of Revenue’s Information Booklet on Warehousing of Tax Debts Associated with Covid-19, available on Revenue’s website at https://www.revenue.ie/en/corporate/communications/documents/debt-warehousing-reduced-interest-measures.pdf.

I am further advised by Revenue that the warehousing of unpaid VAT and PAYE (Employer) “Covid-19 liabilities” will not prevent a business from obtaining tax clearance, so long as the business continues to meet its obligations for qualifying for warehousing of tax debts – that is, filing all tax returns and paying other liabilities as they fall due.

I announced in the Budget Statement last week that, subject to the agreement of the Oireachtas to the relevant provisions in the Finance Bill, excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers, may also be warehoused in circumstances where the taxpayer is unable to pay those liabilities as a result of the impact on their business or income of Covid-19 restrictions. Those proposed measures, the details of which are expected to be published in the Finance Bill later this week, will include provisions that businesses or individuals who warehouse those liabilities will not be prevented from obtaining tax clearance so long as they meet the obligations to qualify for warehousing.

Primary Medical Certificates

Ceisteanna (202, 217, 218, 219, 235, 243)

Mattie McGrath

Ceist:

202. Deputy Mattie McGrath asked the Minister for Finance when the issuing of primary medical certificates for disabled drivers and passengers will resume following a court decision in June 2020; and if those that already qualify for the scheme will be affected. [30982/20]

Amharc ar fhreagra

John Lahart

Ceist:

217. Deputy John Lahart asked the Minister for Finance the steps which have been taken to determine the case of a person (details supplied) in view of the recent judgment of the decision of the Supreme Court to quash the decision of the disabled drivers board of appeal not to grant a primary medical certificate; and if he will make a statement on the matter. [31243/20]

Amharc ar fhreagra

John Lahart

Ceist:

218. Deputy John Lahart asked the Minister for Finance the steps which have been taken to determine the case of a person (details supplied) in view of the recent judgment of the decision of the Supreme Court to quash the decision of the disabled drivers board of appeal not to grant a primary medical certificate; and if he will make a statement on the matter. [31244/20]

Amharc ar fhreagra

John Lahart

Ceist:

219. Deputy John Lahart asked the Minister for Finance his plans to provide an update on the continued processing of applications for primary medical certificates in view of the recent judgment of the Supreme Court in cases (details supplied); and if he will make a statement on the matter. [31245/20]

Amharc ar fhreagra

Dara Calleary

Ceist:

235. Deputy Dara Calleary asked the Minister for Finance the reason the disabled driver's scheme has been suspended for new applicants; and if he will make a statement on the matter. [31553/20]

Amharc ar fhreagra

Violet-Anne Wynne

Ceist:

243. Deputy Violet-Anne Wynne asked the Minister for Finance the status of the issuing of primary medical certificates that has suspended since a High Court ruling in June 2020; and if he will make a statement on the matter. [31698/20]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 202, 217 to 219, inclusive, 235 and 243 together.

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.

In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.

The terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

A Supreme Court decision of 18th June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal's refusal to grant them a PMC. The judgement found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.

In the first instance I acknowledge that the persons who successfully challenged the Medical Board of Appeal's refusal to grant them a PMC are, on the basis of the Supreme Court decision, entitled to seek access to the Scheme. The Supreme Court decision raised complex issues, including the manner in which the persons concerned can access the Scheme, given that the Regulation which set out the medical eligibility criteria was not found to be invalid and given that the persons concerned were not assessed for a Primary Medical Certificate on the single criterion of being permanently and severely disabled.

More generally, the Deputies will appreciate that the complex legal and policy issues raised by the Supreme Court decision will require careful consideration. In parallel to that consideration there is a need to examine how best the Scheme can target resources to those persons who most need them. I am currently giving consideration to policy and legislative proposals set out by my officials and will seek to progress this issue in the coming weeks.

In the interim, on foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, it is not proposed to continue with PMC assessments until a revised basis for such assessments is established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.

My officials were in contact with the Medical Board of Appeal and with officials in the Department of Health and will continue to liaise with them, as required, going forward. I have also written to the Minister for Health to request that there are no further PMC assessments until a sound legal basis for such assessments is re-established.

While it is regrettable that PMC assessments are currently not taking place and I acknowledge that this will result in a growing waiting list, I can give a commitment that I will seek to bring clarity to this situation as soon as possible such that PMC assessments can re-continue based on a firm legal basis.

Finally, I would like to clarify that the Scheme itself is still operating. All persons or charitable organisations that can currently access the Scheme will continue to be able to do so and make claims for tax reliefs and the fuel grant in the normal manner.

Tax Reliefs

Ceisteanna (203)

Danny Healy-Rae

Ceist:

203. Deputy Danny Healy-Rae asked the Minister for Finance if the 90% agricultural relief in relation to agriculture relief from CAT will be retained; and if he will make a statement on the matter. [31048/20]

Amharc ar fhreagra

Freagraí scríofa

CAT Agricultural relief allows the value of agricultural assets inherited (including farmland, buildings, stock) to be reduced by 90% of its value for the calculation of the CAT liability.

In order to qualify for the relief, certain conditions must be met, including the following:

1. At least 80% of the total assets held by the beneficiary after receiving the gift or inheritance must be agricultural assets.

2. The beneficiary must retain ownership for six years.

3. An additional condition was introduced in Finance Act 2014, the active farmer test, to ensure that the relief is targeted at genuine, active farmers.

The Active Farmer Test provides that the beneficiary must:

- Hold a relevant farming qualification, or achieve the qualification within 4 years of inheritance and farm the land for at least six years following inheritance, or

- Spend at least 50% of their time farming agricultural property commercially and farm the land for at least six years, or

- Lease the whole of the agricultural property for at least six years to an individual who satisfies either of the above two tests.

I recognise that CAT Agricultural Relief is a key relief in ensuring the inter-generational transfer of farm assets and farm succession planning. Currently, there are no plans to adjust the operation of this relief.

Strategic Banking Corporation of Ireland

Ceisteanna (204, 205)

Marc MacSharry

Ceist:

204. Deputy Marc MacSharry asked the Minister for Finance if he will publish the criteria used to award the SBCI managing director a performance bonus in 2018 and 2019; and if he will make a statement on the matter. [31055/20]

Amharc ar fhreagra

Marc MacSharry

Ceist:

205. Deputy Marc MacSharry asked the Minister for Finance the person who authorised the payment of the performance bonus to the SBCI managing director in 2018 and 2019; and if he will make a statement on the matter. [31056/20]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 204 and 205 together.

Discretionary performance-related payments are intended to reward exceptional performance having regard to the individual's own performance and the overall performance of the SBCI. The payment of a performance related payment to the Chief Executive Officer of the SBCI, Mr Nick Ashmore, is a matter determined by the SBCI Remuneration Committee, a sub-committee of the SBCI Board. This decision is made in conjunction with the SBCI Board following an annual review and discussion with the Board as to his performance.

Strategic Banking Corporation of Ireland

Ceisteanna (206, 207)

Marc MacSharry

Ceist:

206. Deputy Marc MacSharry asked the Minister for Finance the person or body appointed to the internal audit function of the SBCI in November 2019; the value and term of their contract; and if he will make a statement on the matter. [31057/20]

Amharc ar fhreagra

Marc MacSharry

Ceist:

207. Deputy Marc MacSharry asked the Minister for Finance the person in the SBCI who awarded the internal audit function contract in 2019; the selection criteria adopted in this process; and if he will make a statement on the matter. [31058/20]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 206 and 207 together.

The NTMA Internal Audit function provides internal audit services to the SBCI. The NTMA Internal Audit function comprises a Head of Internal Audit supported by an external service provider (currently KPMG). Details of the procurement of the external service provider, the contract for which was awarded to KPMG, are available on e-tenders, at https://irl.eu-supply.com/ctm/Supplier/PublicTenders/ViewNotice/221903, which also includes details of the term of the contract. The e-tenders notice also sets out the overall value of the contract (covering NTMA, SBCI and HBFI for a possible maximum term of 6 years) estimated at €3,430,000.00, excluding VAT.

An Evaluation Group assessed and reviewed the tenders. The members of this group (by position) were the Chief Legal Officer (the Chairperson of the Evaluation Group), the Director of the State Claims Agency, the Director of Funding and Debt Management and the Head of Financial Planning and Operations. This Evaluation Group made the decision on the appointment of the provider of Internal Audit services.

Strategic Banking Corporation of Ireland

Ceisteanna (208)

Marc MacSharry

Ceist:

208. Deputy Marc MacSharry asked the Minister for Finance the amount paid by the SBCI for external public relations services in 2019; the companies or persons to which this was paid; and if he will make a statement on the matter. [31059/20]

Amharc ar fhreagra

Freagraí scríofa

The amount paid by the SBCI for consultancy services, including public relations consultancy, is published in their Annual Report. In 2019, €107,000 was spent on external consultancy for public relations and marketing. The SBCI uses the services of a PR firm, Gordon MRM, which was appointed on foot of a procurement process by the NTMA, and is charged a proportionate amount for these services.

Strategic Banking Corporation of Ireland

Ceisteanna (209)

Marc MacSharry

Ceist:

209. Deputy Marc MacSharry asked the Minister for Finance the annual internal cost of public relations for SBCI in 2019, by staff cost and related office expenses; if a separate figure will be provided on the amount of salary and package paid to the head of public relations and or communications at the NTMA; and if he will make a statement on the matter. [31060/20]

Amharc ar fhreagra

Freagraí scríofa

The National Treasury Management Agency (NTMA) provides a range of support and services to the SBCI in areas including IT, HR, compliance, internal audit and communications. The SBCI is required to reimburse the NTMA for the costs incurred in the provision of these services.

The internal cost of public relations which is a pro rata recharge to the SBCI from the NTMA in 2019 was €103.9k. The NTMA does not comment on the individual salaries paid to employees.

Strategic Banking Corporation of Ireland

Ceisteanna (210)

Marc MacSharry

Ceist:

210. Deputy Marc MacSharry asked the Minister for Finance the measures the board of the SBCI has taken in 2020 to arrest the drop in profits and get the company back to 2017 profit levels; and if he will make a statement on the matter. [31061/20]

Amharc ar fhreagra

Freagraí scríofa

Section 8 of the SBCI Act 2014 lays out the functions of the SBCI. These include the promotion and provision of finance to SMEs and the design of credit facilities for SMEs. Section 8(2) of the SBCI Act 2014 notes that the SBCI should “seek to obtain a positive financial return for the State”, in the achievement of its functions. As such, The SBCI operates under a sustainability mandate rather than a profit maximisation model.

The business model of the SBCI is to serve as a wholesale institution providing lower cost finance and risk sharing to on-lenders in the business market in Ireland. The SBCI is continuing to build on its significant progress to date by offering a wider range of supports to the SME sector. This includes the Future Growth Loan Scheme, the Covid-19 Working Capital Scheme, the €2bn Covid-19 Credit Guarantee Scheme, which it operates on behalf of the Department of Business, Enterprise and Innovation, and the provision of lower cost liquidity to its non-bank on-lending partners. The SBCI also retains the ability to respond to unforeseen challenges to the Irish economy and adapt its product offering to maximise the support available to Irish business. The current crisis has demonstrated the value in the ability of the SBCI to respond quickly to support our SME sector.

Covid-19 Pandemic Supports

Ceisteanna (211)

Jim O'Callaghan

Ceist:

211. Deputy Jim O'Callaghan asked the Minister for Finance if companies that have availed of the temporary wage subsidy scheme and or the employment wage subsidy scheme are precluded from paying dividends to shareholders in 2020. [31067/20]

Amharc ar fhreagra

Freagraí scríofa

The Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has now been replaced by the Employment Wage Subsidy Scheme (EWSS), which was legislated for under the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020.

The specific nature and terms of the EWSS arrangement are separate and distinct from the TWSS. The key eligibility criteria for the TWSS were that the business was 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 before, in general, 15 March 2020, but extended to 1 April 2020.

As regards eligibility for the EWSS, an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or orders between 1 July and 31 December 2020, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Furthermore, the employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme. Where an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer can claim a EWSS subsidy in respect of that employee.

I have been advised by Revenue that the question of what dividends, a company may or may not be in a position to pay to shareholders in 2020, 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 and EWSS.

Tax Code

Ceisteanna (212)

Danny Healy-Rae

Ceist:

212. Deputy Danny Healy-Rae asked the Minister for Finance if he plans to increase the category A tax free threshold parent and child from €335,000 to €500,000; and if he will make a statement on the matter. [31089/20]

Amharc ar fhreagra

Freagraí scríofa

Capital Acquisitions Tax (CAT) is the overall title for both gift and inheritance tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance. CAT at a rate of 33% applies on the excess over the tax-free threshold.

There are three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A threshold (currently €335,000) applies where the beneficiary is a child of the disponer. This includes adopted children, step children and some foster children.

Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.

Group C threshold (currently €16,250) applies in all other cases.

As the Deputy will be aware, consideration of possible changes to CAT rates and thresholds generally takes place as part of the annual Tax Strategy Group, Budget and Finance Bill process. Together, these processes consider options for changes across the wider tax system. In Budget 2021, I made no changes to the CAT Group thresholds.

However, in Budget 2020, I increased the Group A threshold from €320,000 to €335,000, and in Budget 2019 this was increased from €310,000 to €320,000.

The Group B threshold was last changed in Budget 2017, when it was increased by €2,350 to its current value of €32,500 and the Category C threshold was also increased by €1,175 to €16,250 at that time.

The Deputy will appreciate that there would be a significant cost in making substantial changes to CAT thresholds. The estimated full year cost of increasing the CAT A threshold from its current €335,000 to €500,000 is €68 million.

The options available for providing increases to CAT thresholds is normally considered in the context of available resources. This of course must be balanced against competing demands and must take into account the need to maintain the yield from CAT.

Tax Reliefs

Ceisteanna (213)

Danny Healy-Rae

Ceist:

213. Deputy Danny Healy-Rae asked the Minister for Finance if he will consider extending the favourite nephew or niece relief to favourite successor to reflect changing demographics and family structures; and if he will make a statement on the matter. [31091/20]

Amharc ar fhreagra

Freagraí scríofa

A fundamental principle of the Capital Acquisitions Tax regime is that inheritance or gift tax is levied on the beneficiary and that the level of taxation is determined according to their relationship with the disponer. The reason for this approach is that the capital being transferred has not been earned by the beneficiary. In this context, the effective taxation of windfall capital is an important tool for addressing income and wealth inequality, thus enabling our tax code create a fairer society.

There are a number of valuable reliefs from Capital Acquisitions Tax available. Once such relief is the CAT Favourite Nephew or Niece relief. This relief allows a nephew or niece to be treated as a child for CAT purposes, subject to certain conditions. This means that they will be entitled to the Group A tax-free threshold of €335,000, instead of the Group B tax-free threshold of €32,500, which would normally apply to this relationship.

The aim of this relief is to target a nephew or niece who has worked for their aunt or uncle over a 5-year period prior to inheritance for a minimum number of hours per week, putting their labour and expertise at the disposal of the aunt or uncle and making a sustained contribution to the business before inheritance.

When combined with CAT Agricultural Relief or CAT Business Relief, this relief is intended to support the intergenerational transfer of a family farm or a family business and is particularly important in circumstances where there may not be a direct descendant (e.g. child) to whom the family farm or business can be bequeathed.

However, extending the Favourite Nephew or Niece relief to allow the nomination of a ‘Favourite Successor’ would clearly represent a fundamental departure from the principles underpinning our current CAT regime, as well as a significant departure from the policy rationale of the Favourite Nephew or Niece relief. Such a move would also lead to an erosion of the revenue base. For example, this could result in a beneficiary who does not have a family relationship with the disponer becoming entitled to the same tax-free threshold as a child of the disponer, currently €335,000, instead of a tax-free threshold of €16,250.

In addition, this would most likely be followed by pressure to extend this more broadly, such as for disponers to seek to nominate a ‘Favourite Successor’ for their estate.

On this basis, there are currently no plans to extend the CAT Favourite Niece or Nephew Relief or to amend the operation of CAT Agricultural Relief to allow for the nomination of a Favourite Successor.

Tax Reliefs

Ceisteanna (214)

John Paul Phelan

Ceist:

214. Deputy John Paul Phelan asked the Minister for Finance if a distinction is made across the various enterprise tax schemes such as employee investment incentive, EII, key employee engagement programme, KEEP, and capital gains tax, CGT, entrepreneur relief for high risk and high potential innovation start-ups as opposed to more traditional asset-backed enterprises; and if he will make a statement on the matter. [31109/20]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that no distinction is made across the various enterprise tax schemes such as the Employee Investment Incentive (EII), Key Employee Engagement Programme (KEEP) and CGT entrepreneur relief for high risk and high potential start-ups. Each scheme has its own specific criteria which must be fulfilled for qualification for that individual relief.

KEEP is a focussed share option programme, intended to help SMEs attract and retain talent in a highly competitive labour market, while the EII is a tax relief which aims to encourage individuals to provide equity based finance to trading companies. These reliefs operate through payroll taxes. Both schemes are subject to the requirements relating to size and apply only to micro-enterprises and SMEs carrying out qualifying trades.

The revised CGT Entrepreneur Relief CGT applies in respect of a chargeable gain or chargeable gains on a disposal or disposals of qualifying business assets on or after 1 January 2016 up to a lifetime limit of €1 million. This relief operates through the capital gains tax system and is subject to certain conditions and qualifying criteria that must be met prior to disposal.

Tax Code

Ceisteanna (215)

Richard Bruton

Ceist:

215. Deputy Richard Bruton asked the Minister for Finance if he has received a submission from a body (details supplied) seeking relaxation on deadlines and compliance rules due to the exceptional pressures created by Covid-19; and if he will make a statement on the matter. [31114/20]

Amharc ar fhreagra

Freagraí scríofa

I can confirm that I received the Pre-Budget submission to which the Deputy refers.

As outlined in my reply to PQ 28231/20 on 6 October, Revenue has extended the deadline for customers to file their 2019 self-assessed income tax return and make the appropriate payment in respect of preliminary tax for 2020 and any income tax balance due for 2019. The due date has been extended by four weeks from 12 November 2020 to 10 December 2020. To qualify for the extension, customers must both pay and file through ROS; otherwise the relevant return and payment is due no later than 31 October 2020.

This Government fully appreciates the pressures that people are operating under. In my Budget speech last week, I announced that the debt warehousing provisions already in place will be extended to include the 2019 income tax balance and 2020 preliminary tax to allow qualifying taxpayers to defer payment for a period of a year with no interest applying; 3 per cent will apply thereafter and will attract no surcharge. This will be provided for in the Finance Bill due to be published later this week.

Ministerial Communications

Ceisteanna (216)

Catherine Murphy

Ceist:

216. Deputy Catherine Murphy asked the Minister for Finance if he has spoken to the UK Chancellor of the Exchequer in the past three months. [31176/20]

Amharc ar fhreagra

Freagraí scríofa

I last spoke with the UK Chancellor, Rishi Sunak, by phone on 25th September. I was glad to have this opportunity to continue our bilateral engagement, following on from previous calls in May and in the Spring of this year. We had a good discussion on our respective actions in addressing the economic challenges of Covid-19. We also noted the ongoing Brexit discussions, including the importance of the full implementation of the Withdrawal Agreement.

I look forward to continuing my bilateral engagement with Chancellor Sunak in the near future and working together to address the shared economic challenges presented by Brexit and the Covid-19 pandemic.

Questions Nos. 217 to 219, inclusive, answered with Question No. 202.
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