Written Answers Nos. 150-177
151. Deputy Darren O'Rourke asked the Minister for Transport the way in which he plans to use the proceeds of the sale of the State's shares in a company (details supplied) now contained in the connectivity fund to protect and enhance Ireland's air connectivity given the damage the pandemic will do in this area; and if he will make a statement on the matter. [6006/21]
Amharc ar fhreagraThe Exchequer received €335 million in September 2015 for its 25.1% shareholding in Aer Lingus.
These proceeds were invested in a new ‘Connectivity Fund’ as a sub-portfolio of the Ireland Strategic Investment Fund (ISIF). The Minister for Finance sought Oireachtas approval for the proceeds to be paid into this fund in accordance with Section 46(2) of the National Treasury Management Agency (Amendment) Act, 2014. This further investment strengthened ISIF’s capacity to support economic investment.
The Connectivity Fund is designed to support projects which enhance Ireland’s physical, virtual or energy connectivity. The management and control of the fund is a matter for the NTMA.
152. Deputy Pearse Doherty asked the Minister for Transport when a learner permit will issue to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [6007/21]
Amharc ar fhreagraThis is an operational matter for the Road Safety Authority. I have referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.
153. Deputy Catherine Connolly asked the Minister for Transport if an exemption under the Air Navigation (Munitions of War, Weapons and Dangerous Goods) Orders 1973 and 1989 was granted by his Department in respect of an aircraft on contract to the US military (details supplied) which landed at Shannon Airport at 11.27 am on 28 January 2021, remained at Shannon overnight and took off again at 09.28 am on 29 January 2021; the number of US military personnel on board this aircraft; if the aircraft was carrying weapons or munitions given that the aircraft remained overnight, if the aircraft crew and military passengers were accommodated in a local hotel; if all persons on board this aircraft were required to produce a negative Covid-19 test on arrival in Ireland; and if he will make a statement on the matter. [6022/21]
Amharc ar fhreagraAn exemption permitting the carriage of munitions of war was granted for this operation, pursuant to Article 5 of the Air Navigation (Carriage of Munitions of War, Weapons and Dangerous Goods) Orders, 1973 and 1989.
With regard to the additional elements of your question, I have forwarded it to Shannon Group plc. for direct reply.
If you do not receive a reply from the Company within ten working days, please advise my Private Office.
154. Deputy Pat Buckley asked the Minister for Transport if his Department will upgrade the R624 Cobh to Carrigtohill road to a national route; and if he will make a statement on the matter. [6027/21]
Amharc ar fhreagra155. Deputy Pat Buckley asked the Minister for Transport if his Department will carry out a viability study at Bellvelly Bridge, Cobh, County Cork in order to assess if a new bridge is needed to facilitate the rising number of vehicles crossing daily; and if he will make a statement on the matter. [6028/21]
Amharc ar fhreagra156. Deputy Pat Buckley asked the Minister for Transport if his attention has been drawn to a number of accidents on Bellvelly Bridge, Cobh, County Cork which prevented emergency vehicles from accessing Cobh on a number of occasions in which the emergency vehicles had to turn around and drive back towards Cork city and use an alternative river ferry to access Cobh Island; his plans to upgrade the R624 Cobh route and Bellvelly Bridge in view of same; and if he will make a statement on the matter. [6029/21]
Amharc ar fhreagra157. Deputy Pat Buckley asked the Minister for Transport if his Department will upgrade the R624 route to Cobh, County Cork to a national route and also upgrade the Bellvelly Bridge to maintain the only land access route to Cobh Island; and if he will make a statement on the matter. [6030/21]
Amharc ar fhreagra158. Deputy Pat Buckley asked the Minister for Transport if the R624 Cobh, County Cork road will be upgraded to a national road in order to facilitate the Ballynoe urban expansion area on the island of Cobh and also protect the connectivity to the island from the mainland; and if he will make a statement on the matter. [6031/21]
Amharc ar fhreagraI propose to take Questions Nos. 154 to 158, inclusive, together.
The improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants.
The NDP, as it stands, does provide for the gradual build up in funding for the road network, but funding is not yet at the level needed for the adequate maintenance and renewal of regional and local roads. For this reason, the primary focus for capital investment continues to be the maintenance and renewal of the network with some limited investment in road improvement projects. Currently the NDP is under review and changes to project criteria could occur.
Any road improvement project put forward for consideration must be appraised for compliance with the Public Spending Code as revised in December 2019. An important change to the Public Spending Code is the introduction of a requirement for a Strategic Assessment Report (SAR) for all projects with an estimated expenditure of €10 million or more. The SAR is now a key deliverable at the first decision stage in the project appraisal process.
The purpose of the SAR is to examine the rationale for a proposed project and to ensure the strategic alignment of projects with Government policy, including the National Planning Framework and National Development Plan. The SAR is also an important step in the project lifecycle in that potential alternatives for an intervention are assessed and identified for further appraisal should the project progress to the Preliminary Business Case phase of the appraisal process.
As regards access to Cobh and Great Island, there was some initial engagement between Cork County Council and this Department in 2019, including a meeting with the Department's Strategic Research and Analysis Division regarding the project appraisal process. Subsequent to that meeting, Cork County Council decided to appoint consultants to carry out a wider transport study which will look at all options in relation to access and I understand that the Council expects to appoint those consultants shortly.
As regards the classification of the R624, the classification of roads as either a national road or a regional road is a Ministerial responsibility under section 10 of the Roads Act, 1993, as amended. A public road, other than one classified as a national road or a regional road, is a local road.
Roads classified as National Primary or National Secondary are funded by the State and construction, improvement and maintenance works are overseen by TII, in conjunction with the relevant local authority, and funded mainly from voted monies. Roads classified as regional or local roads fall under the responsibility of local authorities. The construction, repair and maintenance of these roads is funded by local authorities’ own resources supplemented by State grants.
Requests to classify a road as a national road or regional road are considered, in consultation with TII as appropriate. Criteria for consideration are numerous and include items such as function of road including access to towns and Cities, major ports and airports, geographical regions, population centres and tourist regions. It also includes considerations of continuity of classification throughout the length of road, whether roads are feeder connections or links to the national road network, cross section, alignment and structural integrity as well as amount of heavy commercial vehicles. Funding source for road improvement is not a consideration of classification of road type.
No decision has been taken to reclassify the R624 as a national road to date. Further consideration may be given to the issue as part of a future general review of road classifications.
159. Deputy Niall Collins asked the Minister for Finance if a response will issue to correspondence (details supplied); and if he will make a statement on the matter. [5130/21]
Amharc ar fhreagraThe COVID-19 Pandemic Unemployment Payment (PUP) is a social welfare payment for employees and self-employed people who have lost all their employment due to the COVID-19 public health emergency. As outlined from the outset, payments made under the PUP are income supports and subject to income tax. Other income earners in receipt of comparable “normal wages” are taxable on those wages. In the interest of equity, therefore, payments under the PUP are subject to income tax. The taxation arrangements reflect the standard approach to taxation of social welfare type payments and, thus, is exempt from the USC and PRSI charges.
A €13 exemption for Jobseekers' Benefit (JB) provided for in s. 126(4)(b) of the Taxes Consolidation Act 1997 (TCA). This exemption does not apply to the PUP. Given the differentials in amounts between the two payments, on tax equity grounds I do not consider that s. 126(4)(b) should be extended to the PUP.
In relation to the matter of increases for qualifying children (IQCs), these payments are exempted under s. 126(2B) of the TCA. I am advised by the Department of Social Protection that the PUP does not give rise to IQCs.
160. Deputy Ged Nash asked the Minister for Finance the reason support from his Department by way of short-time work support is not taxable when support from jobseeker's support casual dockets is taxable given the impact on workers (details supplied); and if he will make a statement on the matter. [5917/21]
Amharc ar fhreagraI am advised that Short-Time Work Support is a form of Jobseeker's Benefit and is an income support payment for employees who have been temporarily placed on a shorter working week by their employer, due to business challenges affecting their employment. The payment is made in respect of the employee’s regular salary for the days that they are no longer working. For example, where an employee’s working week has been reduced from a five-day work pattern to a three-day work pattern, they can receive Short-time Work Support for the other two days. Short-time work must be systematic and show a clear repetitive pattern of employment. The administration of this support is under the remit of the Department of Social Protection.
The statutory basis for the long-standing exemption from income tax for the Short-Time Work Support is contained in section 126 of the Taxes Consolidation Act 1997 which provides that taxation shall not apply in relation to Jobseeker’s Benefit or Jobseeker’s Benefit (self-employed) paid or payable, to a person employed in short-time employment. Short-time employment is defined in the Social Welfare Act 2005, as employment in which, for the time being, a number of days is systematically worked in a working week, which is less than the number of days which is normal in a working week in the employment concerned. Full-time employees who have been placed on a reduced weekly work pattern can apply for the support. Employees must work 3 days per week or less to qualify, having previously been employed on a full time basis.
Revenue advise me that in situations where an employee’s contract of employment sets out that workdays are flexible in nature, then this employment will not meet the definition of ‘short time employment’, and the employee will be taxed as normal for the days worked.
Finally, and as the Deputy may be aware, under Section 851A of the Taxes Consolidation Act 1997, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.
161. Deputy Dara Calleary asked the Minister for Finance the reason wax type 494 used in the making of wax melts is on the prohibited list for importation from the UK; if this restriction is as a result of Brexit; if there are plans to counteract the restriction; and if he will make a statement on the matter. [5979/21]
Amharc ar fhreagraI am informed by Revenue that wax type 494, which is used in the manufacture of candles, is subject to import restrictions, in line with EU regulations which apply to and have applied to 3rd country trade before the UK left the EU. This restrictions depend on whether the goods concerned originate from an endangered species, are being certified as organic or are considered to be part of a waste shipment.
The UK is no longer a member of the EU and the UK (excluding Northern Ireland) is a third country for import purposes. Revenue is not aware of any proposals by the EU to change or amend the relevant Regulations which are designed to protect the health and safety of EU citizens.
I am further advised by Revenue, that the three areas that could impact the importation of wax type 494 are;
- The protection of wild fauna and flora (Commission Regulation (EU) 2019/2117 of 29 November 2019 amending Council Regulation (EC) No 338/97 on the protection of species of wild fauna and flora). Contact email address is CITES@chg.gov.ie
- Organic certification (Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products). Contact email address is organicimports@agriculture.gov.ie
- Waste shipments (Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste. Contact email address is nationaltfs@dublincity.ie.
Further information regarding the import requirements can be obtained from the relevant competent authorities at the email addresses listed above. Information on licensing requirements, should a licence for the importation of these goods be required, is available from those authorities.
162. Deputy Pearse Doherty asked the Minister for Finance when a VRT reimbursement will be paid to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [6008/21]
Amharc ar fhreagraI am advised by Revenue that the issue in question arose due to backlogs at National Car Testing Service (NCTS) centres arising from COVID-19 related restrictions. The delay in the specific case referenced by the Deputy resulted in the person in question paying a higher vehicle registration tax (VRT) charge in 2021 than she would have had her appointment been fulfilled in 2020.
Revenue has confirmed that in such circumstances the lower rate of VRT is applied and the person is due a refund of the difference between the 2020 charge and the actual amount paid in 2021. Revenue has engaged directly with the person in question and advised her on the procedure for making a claim for a refund of VRT. Revenue has assured me that once the claim is received it will be processed as a priority.
163. Deputy Noel Grealish asked the Minister for Finance his plans to extend the help-to-buy scheme into 2022; and if he will make a statement on the matter. [4990/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive was introduced in 2017. The measure is currently scheduled to expire on 31 December 2021.
HTB gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. An increase in the supply of new housing remains a priority aim of Government policy. The HTB scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties.
HTB is designed to stimulate the supply of new houses in the housing market and to assist first-time buyers in accumulating a deposit for a new home. In order to help further meet these goals, I announced an enhancement to the existing scheme with effect from 23 July last for the remainder of 2020 as part of the July Stimulus Package. The legislation that gives effect to this is set out in the Financial Provisions (Covid-19) (No.2) Act 2020. The Finance Act 2020 further extended the period of application of the enhanced levels of support until 31 December 2021.
The question of the future of HTB support beyond its current expiry date is a matter that will be considered in due course in the context of Budget 2022 and the subsequent Finance Bill.
164. Deputy Seán Canney asked the Minister for Finance if he will review the Covid restrictions support scheme, as it is limited and excludes many businesses that have been directed to shut due to Covid-19 restrictions; and if he will make a statement on the matter. [4991/21]
Amharc ar fhreagra166. Deputy Pádraig O'Sullivan asked the Minister for Finance the reason an application by a person (details supplied) for the Covid restrictions support scheme was refused; the other supports available for a person in this situation; and if he will make a statement on the matter. [5021/21]
Amharc ar fhreagra171. Deputy Michael Collins asked the Minister for Finance if the Covid restrictions support scheme will be made available to caravan and camping parks in order that they can remain in business when the recovery occurs (details supplied); and if he will make a statement on the matter. [5059/21]
Amharc ar fhreagra172. Deputy Chris Andrews asked the Minister for Finance the reason a business (details supplied) was not eligible to apply for the Covid restrictions support scheme; and the other supports available to this business to keep it afloat during the pandemic. [5091/21]
Amharc ar fhreagra177. Deputy Michael Ring asked the Minister for Finance if the criteria for the Covid restrictions support scheme can be reviewed to enable service providers (details supplied) directly affected by hospitality closures to qualify. [5131/21]
Amharc ar fhreagra189. Deputy Michael Lowry asked the Minister for Finance if his attention has been drawn to the fact that charities have seen their income decimated and while retail charity shops were a once valuable source of income these shops have remained closed due to Covid-19 restrictions; if the decision not to allow charity retail outlets to apply for the Covid restrictions support scheme will be reconsidered (details supplied); and if he will make a statement on the matter. [5405/21]
Amharc ar fhreagra191. Deputy Fergus O'Dowd asked the Minister for Finance if concerns raised by a person (details supplied) in respect of access to the Covid restrictions support scheme for the travel and tourism industry will receive a response; and if he will make a statement on the matter. [5462/21]
Amharc ar fhreagra192. Deputy Michael McNamara asked the Minister for Finance if the Covid restrictions support scheme can be amended to support a seasonal business (details supplied); and if he will make a statement on the matter. [5465/21]
Amharc ar fhreagra197. Deputy Christopher O'Sullivan asked the Minister for Finance if consideration will be given to a scheme similar to Covid restrictions support scheme for businesses that do not have a fixed premises; if not, if consideration will be given or to amend the qualifying criteria of the existing scheme in order that these businesses that are also significantly affected by restrictions introduced to combat the Covid-19 pandemic can avail of the support to cover their ongoing expenses; and if he will make a statement on the matter. [5535/21]
Amharc ar fhreagra207. Deputy Niall Collins asked the Minister for Finance the reason a company (details supplied) that is unable to trade as a result of Covid-19 was refused the Covid restrictions support scheme; and if he will make a statement on the matter. [5866/21]
Amharc ar fhreagraI propose to take Questions Nos. 164, 166, 171, 172, 177, 189, 191, 192, 197 and 207 together.
The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
Details of CRSS are set out in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at:
https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to acquire goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying “business premises” is a building or other similar fixed physical structure in which a business activity is ordinarily carried on.
A self-employed travel agent providing services from a home office, which is not customer-facing, will not meet the eligibility criteria.
Where a business does not ordinarily operate from a fixed business premises, such as a camping or caravan site, that business will not meet the eligibility criteria for CRSS. However, Deputies will be aware of the Tourism Business Continuity scheme, a €55m strategic funding scheme announced as part of Budget 2021 to support tourism businesses which was launched earlier this week. I understand that caravan and camping and other outdoor accommodation providers that are registered with Fáilte Ireland are eligible for phase 1 of this scheme. Further details of the scheme are available on the Fáilte Ireland website at https://www.failteireland.ie/new-%E2%82%AC55million-business-continuity-scheme-for-the-tourism-sector.aspx.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or significantly restrict access to its business premises, as is currently the case for a business whose trade involves providing non-essential training services to customers at its own business premises.
Where the trade of a business consists of the provision of health and safety training services at the business premises of a customer, the business would not qualify for CRSS because any reduction in turnover of the business during a period of restrictions would not be because of a restriction on access to the premises of that particular business.
It is noted that essential health and safety training (that cannot be done remotely) is considered as an essential service and is therefore not subject to restrictions under public health regulations. Therefore, where the trade of a business consists of the provision of essential health and safety training services, that business would not be eligible to claim under CRSS.
Where the trade of a business consists of a combination of essential and non-essential health and safety training and/ or of non-essential health and safety training carried out at its own business premises and at the business premises of its customers, the business would be eligible to claim under CRSS in respect of that part its trade which relates to health and safety training carried out at its own business premises where the business meets all the eligibility criteria.
Where a business supplies goods or services to businesses in the hospitality industry which, under the specific terms of the Covid restrictions, are required to prohibit or significantly restrict customers from accessing their business premises (for example restaurants), it will not result in the supplier business being eligible to make a claim under CRSS. Each business must meet the qualification criteria in their own right.
A charity shop that is not chargeable to tax under Case I of Schedule D will not qualify for CRSS. This includes a charity shop that has been granted charitable tax exemption status because it is exempt from paying corporation tax or income tax on any income received where the income is used for its main charitable purpose.
I have no plans to change the eligibility criteria for the CRSS. The CRSS is just one of the Government’s supports to assist businesses impacted by COVID-19. Businesses who are not eligible for CRSS may be entitled to alternative supports put in place by the Government, including the COVID Pandemic Unemployment Payment (PUP), the Employment Wage Subsidy Scheme (EWSS) and the Tourism Business Continuity Scheme. Businesses may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities, excess payments received under the Temporary Wage Subsidy Scheme (TWSS), outstanding balances of self-assessed Income Tax for 2019 and Preliminary Tax for 2020.
I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate the effects of the Covid-19 pandemic on the economy.
165. Deputy Seán Canney asked the Minister for Finance if he will request banks to provide a moratorium on loans without imposing penalties or affecting the credit rating of the businesses involved during the Covid-19 lockdown; and if he will make a statement on the matter. [5014/21]
Amharc ar fhreagraAs the Deputy is aware, on 18 March last the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. The implementation of this voluntary moratorium by the banking industry was a flexible response to the emerging Covid-19 crisis and ensured that a large volume of affected customers could benefit quickly during a fast moving and evolving public health crisis.
The Deputy may wish to note that borrowers whose payment break has ended are been given an option to return to full repayments based on the same term of the loan or to extend the term of the loan or to engage further with their bank on suitable arrangements. The latest BPFI payment break update, to 31 December, reported that approximately 49% of SMEs returned to repaying on the existing term whilst 46% returned to repaying on extended term basis and just over 5% have not returned to full repayment and are receiving other forms of lender support.
The Central Bank has confirmed that there is no regulatory impediment to lenders offering payment breaks to borrowers, providing they are appropriate for the individual borrower circumstance. The BPFI has also reiterated that standard payment breaks continue to be part of the wide range of tailored solutions which are being made available to customers upon assessment of their situation.
SME borrowers have regulatory protections via the Central Bank's SME lending regulations. The SME regulations https://centralbank.ie/news/article/regulations-for-firms-lending-to-smes-from-2016 set out the required treatment of SMEs by regulated entities in relation to various aspects of business lending. This includes detailed provisions around the credit application process, requirements regarding security or collateral, credit refusals and withdrawals, handling complaints, managing arrears and having in place policies for engaging with SMEs in financial difficulty. The options could include additional flexibility, and this could be a short-term arrangement such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements.
In addition, Credit Review https://www.creditreview.ie was established to assist those SMEs and farm borrowers that have had credit applications of up to €3 million refused or indeed an existing credit facility withdrawn or amended by the participating bank. SMEs can apply to Credit Review after exhausting the internal appeals process in the participating institution, which are currently AIB, BOI, Ulster Bank and Permanent TSB.
Through ongoing engagement with the BPFI and lenders, the Central Bank is working to ensure that borrowers affected by COVID-19 continue to be supported through this period of unprecedented stress. The Central Bank recently wrote to all lenders indicating that lenders are to ensure that they have sufficient expert resources to assess individual borrower circumstances, and to offer appropriate and sustainable solutions to affected borrowers in a timely manner in line with regulatory requirements. The Central Bank’s clear expectation is that lenders engage effectively and sympathetically with distressed borrowers.
It should be noted that the Central Credit Register does not produce credit scores; rather the information on a credit report provided by the Central Credit Register is factual in nature and the information is provided to the Central Credit Register by lenders. It contains no guidance, recommendation or prohibition for lenders on what decision they should make on an application for credit or repayment arrangements agreed with borrowers. Subject to complying with applicable law and regulatory requirements, it is a matter for lenders to make their own lending decisions in accordance with their own credit policies and risk appetites.
I will continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection and other applicable frameworks will be fully available to all borrowers that will still need support.
167. Deputy Neale Richmond asked the Minister for Finance the number of ATMs operated by a company (details supplied) here; and if he will make a statement on the matter. [5032/21]
Amharc ar fhreagra168. Deputy Neale Richmond asked the Minister for Finance if he has considered banning ATMs (details supplied) here as has been done in Amsterdam due to large hidden fees and misleading information; and if he will make a statement on the matter. [5033/21]
Amharc ar fhreagraI propose to take Questions Nos. 167 and 168 together.
As an independent ATM deployer the company in question is not required to report the number of ATMs they operate to the Central Bank of Ireland.
Independent ATM deployers are regarded as Professional Cash Handlers and are monitored by the Central Bank of Ireland for compliance with the Decision of the European Central Bank (ECB/2010/14) on the authenticity and fitness checking and recirculation of euro banknotes.
The revised Payment Services Directive (PSD2) regulates payment service providers across Europe. PSD2 does not regulate independent ATM operators, which were excluded in order to ensure ATM provision particularly in less populated areas. However, PSD2 does require independent ATM operators to disclose any charges payable to consumers before any ATM withdrawal can take place.
Some independent ATM operators do not impose any additional charges. Where additional charges are imposed, consumers can avoid them by making cash withdrawals from an ATM operated by one of the retail banks where possible.
169. Deputy Paul Murphy asked the Minister for Finance if donations to non-SIPO-registered far-right political entities through online crowdfunding platforms are counted by the Revenue Commissioners as taxable income; the income that has been declared to the Revenue Commissioners by non-SIPO-registered far-right political entities since 2016; the amount the Revenue Commissioners have collected from taxable income in the form of donations to non-SIPO-registered far-right political entities since 2016; the initiatives which have been or are being taken by the Revenue Commissioners to collect any such tax; and if he will make a statement on the matter. [5034/21]
Amharc ar fhreagraI am advised by Revenue that the question as to whether income from donations received by political entities is taxable or not will depend upon the nature of the political entity and the activities that it is engaged in. If the political entity is considered to be carrying on a trade, such income may be regarded as part of its trading income and could be taxable. Typically, for activities to constitute trading there should be an element of commerciality and the intention to make a profit.
Where an individual or a company makes a donation to a political entity and does not receive any goods or services in return, they would generally not be regarded as trading. Where the political entity is not trading, the income from donations would not be taxable. However to the extent that the income from donations is used to generate taxable income any such income will be taxed in the normal manner. Political entities are treated in the same manner under the tax code, regardless of their political orientation.
I am advised that Revenue does not separately identify or categorise taxpayers based on their political orientation and therefore it is not possible to provide information of the nature sought by the Deputy.
170. Deputy Louise O'Reilly asked the Minister for Finance the precise measures in legislation here which ensure adherence to Article 28 of the mortgage credit directive; and if he will make a statement on the matter. [5043/21]
Amharc ar fhreagraThe Mortgage Credit Directive was transposed into Irish law by means of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (the 2016 Regulations). Article 28 of the Mortgage Credit Directive relates to arrears and foreclosure and it was transposed by Regulation 29 of the 2016 Regulations.
Related to Regulation 29 of the 2016 Regulations, the Bank has in place the Code of Conduct on Mortgage Arrears (CCMA) which was issued under Section 117 of the Central Bank Act 1989. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner.
For mortgages that do not fall within the scope of the CCMA, the arrears handling provisions of the Consumer Protection Code 2012 (the CPC) apply. The CPC is also a statutory Code issued pursuant to Section 117 of the Central Bank Act 1989.
Separately, on 1 June 2015, the EBA published Guidelines on Arrears and Foreclosure, which came into effect on 21 March 2016. The guidelines provide additional detail to the requirements in Article 28 of the Mortgage Credit Directive, and must be complied with by firms in scope of the MCD.
173. Deputy Niall Collins asked the Minister for Finance if a refusal of the temporary wage subsidy scheme and employment wage subsidy scheme can be appealed to the Revenue Commissioners and also to the Revenue Appeals Commissioners; and if he will make a statement on the matter. [5096/21]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The scheme was an emergency measure to deal with the impact of the Covid-19 pandemic on the economy.
The key eligibility criteria for the scheme are that the business is suffering significant negative economic impact due to the pandemic, specifically the employer must demonstrate to Revenue’s satisfaction that, by reason of the Covid-19 pandemic and the consequent disruption to business, the employer’s turnover or business orders will be reduced by at least 25% for the period from 14 March 2020 to 30 June 2020; the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020; and the February 2020 payroll submissions were submitted by the employer to Revenue before, in general, 15 March 2020 but recently extended, by concession, to 1 April 2020.
The Employment Wage Subsidy Scheme (EWSS) was legislated for under the Financial Provisions (Covid-19) (No. 2) Act 2020. The scheme is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy and to deliver an enterprise support to employers based on business eligibility delivering a per-head subsidy on a flat rate basis.
As regards eligibility for the scheme, an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or orders between 1 January and 30 June 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Additionally, 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.
The operation of both the TWSS and EWSS schemes relies on employers to determine their own eligibility. Satisfaction of the eligibility criteria is fundamentally a question of fact. Accordingly, there is no formal appeal mechanism as such provided in relation to this in the legislation. However, in the absence of such a mechanism, Revenue has taken a reasonable and pragmatic approach to the issue of disputes whereby, via their customer complaints procedures, aggrieved businesses can engage with Revenue on the matter by providing supporting evidence and submissions setting out their rationale for inclusion in the TWSS or EWSS as appropriate.
In the interests of completeness, I should point out that the legislation does provide that certain ‘right of appeal’ provisions contained in Part 40A of the Taxes Consolidated Act, 1997 shall, in so far as they are applicable, apply where an assessment is raised by Revenue for the collection and recovery of relevant tax related to the TWSS and EWSS.
174. Deputy Jackie Cahill asked the Minister for Finance the measures being put in place to calculate benefit-in-kind during the pandemic (details supplied); and if he will make a statement on the matter. [5103/21]
Amharc ar fhreagra204. Deputy Rose Conway-Walsh asked the Minister for Finance if the interim benefit-in-kind measures for employees who have a company car or van will be extended into 2021; and if he will make a statement on the matter. [5822/21]
Amharc ar fhreagraI propose to take Questions Nos. 174 and 204 together.
I am advised by Revenue that concessional treatment has been agreed in relation to the operation of the benefit-in-kind (BIK) tax charge on employer-provided vehicles during the course of COVID-19 related travel restrictions.
Therefore, where an employer provided vehicle is made available to an employee the following will apply for the time being:
(a) Employer Takes Back Possession of the Vehicle
Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period.
(b) Employer Prohibits Use
Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use. Records should be maintained to show that the employer has prohibited its use and no such use has occurred, e.g. communication from employer, photographic evidence of odometer etc.
(c) Employer Allows Private Use
Where an employee has a car provided by his/her employer and
- the circumstances in the previous example don’t apply;
- limited or reduced business mileage (if any) is undertaken during the period of the COVID-19 crisis; and
- personal use is limited
the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Thus, the percentage applied in the calculation of the cash equivalent, which is based on annualised business mileage, may have regard to the actual business mileage for January 2020, for the period of the COVID-19 restrictions. Appropriate records should be kept, e.g. business mileage travelled in January 2020, amount of private use, photographic evidence of odometer etc.
Where an employee did not have any business mileage for their current role in January 2020, for example where an employee has taken on a new role since that time, a reasonable alternative may be used to calculate the annualised business mileage for 2021. The reasonable alternative used should have due regard to the specific role carried out by the employee, and the business travel the employee would likely be expected to undertake in the absence of any COVID-19 related travel restrictions.
Employee Continues Working
Where an employee continues to undertake business travel as usual in an employer-provided vehicle, the usual BIK rules will apply. Further information on the taxation of employer-provided vehicles is available on Revenue's website.
Guidance on the above, and many other matters pertaining to COVID-19, can be found on Revenue's website.
175. Deputy Fergus O'Dowd asked the Minister for Finance if calls by the local community in Carlingford, County Louth to reinstate the ATM will be supported given the lack of other alternatives for older and vulnerable persons to access cash within their 5 km Covid-19 restriction; and if he will make a statement on the matter. [5114/21]
Amharc ar fhreagraActions taken by the banks, including their dealings with customers, are matters for the board and management of the institution. 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.
The Central Bank’s Consumer Protection Code (the Code) sets out a number of requirements for banks when amending or altering their services.
Provision 3.10 of the Code requires banks amending their services to give notice to affected consumers at least one month in advance of the amendment being introduced. This should include details of where customers can continue to access such services. The Code also contains a requirement in Provision 2.11 that a regulated firm must not, through its policies, procedures, or working practice, prevent access to basic financial services. This provision aims to ensure that vulnerable people can gain access to mainstream financial services.
The Central Bank expects that all regulated firms take a consumer-focused approach and to act in their customers’ best interests, particularly in dealings with vulnerable consumers. People who may be experiencing particular vulnerabilities, including as a result of the impact of COVID-19, must be provided with whatever reasonable arrangements and/or assistance they need in dealings with regulated entities.
It should be noted that COVID-19 has accelerated an increase in the use of digital and card payments and measures have been introduced to ensure that consumers can use digital and card payments where necessary. For example, contactless payments can now be made up to a value of €50 so that consumers have an increased choice in payment methods and less reliance on cash. Where a retailer does not accept a certain form of payment instrument, they must display so clearly at the entrance to their establishment or at the till.
However, cash still plays a vital part in the Irish payment system and where ATM facilities are unavailable, I would encourage consumers to avail of alternative methods to obtain cash if necessary, such as cashback facilities and withdrawal and lodgement services offered by An Post on behalf of some of the retail banks.
176. Deputy Fergus O'Dowd asked the Minister for Finance if concerns raised in correspondence (details supplied) in respect of insurance claims in Ireland will receive a response; and if he will make a statement on the matter. [5128/21]
Amharc ar fhreagraAt the outset, I am fully aware of the concerns expressed in relation to the insurance industry’s response to its policyholders in these difficult times, including honouring business interruption claims. The issue raised in the question is complex as there are a variety of government Covid 19-related supports, some of which may not be covered under any business interruption policy. The Deputy will also appreciate that while, I cannot adjudicate on specific cases, it is my view that where it is established that a liability exists, insurers have a contractual obligation which should be discharged in a timely manner. Where businesses have received eligible government supports, these need to be accounted for in the usual manner.
The Deputy will be aware that both Minister of State Fleming and I have had considerable engagement with the insurance industry on the issue of business interruption claims over the past year. The position outlined above is consistent with our view that as a general rule, insurers should engage with those impacted businesses honestly, fairly and professionally to honour the terms of the policy cover, in line with the Central Bank’s Consumer Protection Code. Separately, the Central Bank’s Business Interruption Insurance Supervisory Framework sets out its expectations of insurance firms in handling COVID-19 related business interruption insurance claims.
Working to protect customers during and after the COVID-19 crisis, with particular emphasis on business disruption insurance, is a priority issue for Government. This is reflected in the Programme for Government and the recently launched Action Plan for Insurance Reform. The Deputy should be assured that Minister of State Fleming and I will raise this issue with Insurance Ireland and we will engage appropriately with both insurers and the Central Bank on this matter.
