Written Answers Nos. 178-205
178. Deputy Denis Naughten asked the Minister for Finance the number of persons who claimed remote working relief from the Revenue Commissioners in the most recent tax year for which data is available; the amount of relief provided; and if he will make a statement on the matter. [5151/21]
Amharc ar fhreagraEmployers can make payments up to a maximum of €3.20 per day to employees who incur certain expenditure while working from home without deducting PAYE, PRSI or USC. This expenditure typically includes additional heating, electricity and broadband costs.
Where an employer does not pay the daily amount (€3.20) or pays less than the allowable costs, the employee can claim Remote Working Relief. The relief entitles employees who are working remotely to claim 10% of the cost of electricity and heat incurred, apportioned according to the number of days worked from home in the year. The relief also entitles employees who are working remotely to claim 30% of the cost of broadband, apportioned according to the number of days worked from home in respect of 2020. This concession is not applicable to earlier years. Further information in respect of remote working is on the Revenue website, available here: http://www.revenue.ie/en/jobs-and-pensions/eworking/index.aspx, which may be of assistance to the Deputy.
PAYE workers can claim expenses for remote working by completing an Income Tax return at year end. Revenue advises that the simplest way for taxpayers to claim such expenses and any other tax credit entitlements is by logging onto the myAccount facility on the Revenue website available; here: https://www.ros.ie/myaccount-web/sign_in.html?execution=e1s1.
Finally, Revenue has confirmed that almost 42,000 claims to the value of approximately €1.1m have been received to date in respect of remote working relief for 2020 so far.
179. Deputy Sean Sherlock asked the Minister for Finance if the €250 Student Universal Support Ireland, SUSI, rebate given in November 2020 will not be taxed. [5164/21]
Amharc ar fhreagraThe operation of support measures for third level students is a matter for the Minister for Further and Higher Education, Research, Innovation and Science.
Generally speaking, all payments to individuals are taxable in the hands of the recipient unless specifically exempted. However, the basis on which the payment is made is a determining factor in the potential tax treatment of same.
Section 192F of the Taxes Consolidation Act 1997 provides an exemption for payments made by an awarding authority to, or in respect of, a student in accordance with a scheme or scheme of grants made by the Minister under the Student Support Act 2011. Any payments made in accordance with that section, such as a top-up to SUSI payments, should fall within the exemption under s192F.
I am advised by Revenue that, in the case of a payment which is not within the scope of s. 192F, it would be taxable. Such payments may include a once-off credit provided by relevant institutions to students which is available for use against institutional services, such as registration fees, or in the case of a direct payment to students, where students have been unable to utilise their “once-off credit” with the institution.
Tax relief is available for tuition fees paid for full time students, subject to a single disregard amount of €3,000 per family. Revenue advise me that, in the circumstances mentioned by the Deputy, if an amount is refunded against the student contribution towards tuition fees, it may result in the net tax deduction being less. The tax deduction is a proportion of the eligible amount paid. Where the eligible amount paid is less, the tax deduction will less.
180. Deputy Catherine Murphy asked the Minister for Finance the amount paid by the National Asset Management Agency to firms carrying out receivership work for the agency in each of the years 2010 to 2020 and to date in 2021; and the individual amounts received by each named firm for its work for each year in tabular form. [5178/21]
Amharc ar fhreagraI am advised by NAMA that receivers appointed to NAMA-secured properties are selected from NAMA's insolvency service provider panel which was established following a competitive public procurement process. I am advised that, arising from this process, competitive fixed-fee rates were achieved relative to prevailing market norms.
I am further advised that, in general, fees are not paid to receivers directly by NAMA but are instead paid out of the proceeds of assets under receivership or the management of these assets, pending realisation. Fees for any particular insolvency are set by reference to the fees quoted by the insolvency practitioner as part of the public procurement process. All appointments are subject to on-going monitoring and evaluation and, in many cases, additional fee reductions are negotiated to ensure that fees are appropriate for the amount of work remaining on any given appointment. Typically fees reduce as the assignment progresses and the number of assets reduces by way of disposals or otherwise. However, this depends on the complexity of the insolvency and the issues that may emerge during its course.
I am advised that the attached table sets out receiver fees which have been approved in respect of the provision of insolvency services. The figures outlined are provisional and subject to change pending finalisation of fee approvals.
181. Deputy Catherine Murphy asked the Minister for Finance the amount paid by the National Asset Management Agency to legal firms or companies in each of the years 2010 to 2020 and to date in 2021; and the individual amounts received by each named firm for its work for each year in tabular form. [5179/21]
Amharc ar fhreagraI wish to advise the Deputy that, on a regular basis, NAMA requires the assistance of specialist legal services in order to assist the Agency in meeting its statutory objectives.
The information sought by the Deputy, with regard to payments made by NAMA to law firms from 2010 to 2020, is set out in the table attached. Figures for 2021 are not yet available.
182. Deputy James Browne asked the Minister for Finance the position regarding a customs decision in the case of a person (details supplied); and if he will make a statement on the matter. [5198/21]
Amharc ar fhreagraI am advised by Revenue that all imports into Ireland are risk assessed to ensure compliance with Customs law and to prevent the importation of prohibited and restricted goods.
In the case of this particular consignment, it was identified for examination because of a concern regarding the declared value of the goods. On subsequent review of the matter, Revenue’s concern was not substantiated. The overpayment of duty of €1,820.65 was offset against other customs duties payable by the person concerned for subsequent imports during the same month.
Revenue regrets the inconvenience caused to the importer and has offered its apologies to the individual named. The necessary change to Revenue’s procedures has been implemented.
183. Deputy Pearse Doherty asked the Minister for Finance if employees' resident in Northern Ireland are eligible employees under the employment wage subsidy scheme in cases in which their employers are resident here. [5275/21]
Amharc ar fhreagraThe 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 scheme has no role in relation to the employer/employee relationship in regard to terms and conditions.
The EWSS is administered by Revenue on a 'self-assessment' basis and employers are required to undertake a review on the last day of every month to ensure they continue to meet the above eligibility criteria. Employers who, following a monthly review, find they no longer qualify should deregister for EWSS with immediate effect i.e. from the 1st of the following month.
The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. For every qualifying employee paid between
- €151.50 and €202.99 gross per week, the subsidy is €203,
- €203 and €299.99 gross per week, the subsidy is €250,
- €300 and €399.99 gross per week, the subsidy is €300, or
- €400 and €1462 gross per week, the subsidy is €350.
- No subsidy is paid for employees paid less than €151.50 or more than €1,462 gross per week.
I have been advised by Revenue that employers can claim the subsidy in respect of any employee who is exercising an Irish contract of employment in the State, and where the employer satisfies the conditions of the scheme.
184. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the terms of reference of the strategic review by a bank (details supplied) in Northern Ireland; if his Department has held talks with the bank on the issue; his views on whether it would be good practice for the bank to discuss the detail of a strategic review with staff representatives prior to decisions being made; and if he will make a statement on the matter. [5303/21]
Amharc ar fhreagraAs the Deputy is aware, as Minister for Finance I have no role in the commercial decisions made by the banks, including any strategic reviews undertaken and the manner in which it manages its engagement with stakeholders in this regard. This applies equally to the banks in which the State has a shareholding.
Decisions in this regard by the banks in which the State has a shareholding are the sole responsibility of the board and management of these 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 the specific matter raised by the Deputy, I can confirm that my Department has not received a copy of the terms of reference of the strategic review which he has referred to. I note that the bank involved commented at the time of its 2020 H1 results announcement that it would provide an update in this regard when it announces its full year results.
185. Deputy Joe Carey asked the Minister for Finance if the definition of a first-time buyer under the help-to-buy scheme will be clarified; if a first-time buyer includes applicants who are separated or divorced if they meet certain conditions as set out in a similar scheme, namely the Rebuilding Ireland home loan scheme (details supplied); and if he will make a statement on the matter. [5366/21]
Amharc ar fhreagraUnder the Help to Buy Scheme as provided for in section 477C of the Taxes Consolidation Act 1997, a first time buyer is defined as follows:
" 'first-time purchaser' means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"
The intention is to target assistance towards those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property.
I do not propose amending the definition of first time buyer for the purposes of the scheme.
186. Deputy Ruairí Ó Murchú asked the Minister for Finance if there will be a further extension to the reduction in VAT from 23% to 21%; and if he will make a statement on the matter. [5377/21]
Amharc ar fhreagra206. Deputy Paul McAuliffe asked the Minister for Finance if the six-month reduction on the respective VAT rates will be extended; and if he will make a statement on the matter. [5844/21]
Amharc ar fhreagraI propose to take Questions Nos. 186 and 206 together.
I do not plan on extending the temporary reduction in the standard rate of VAT from 23% to 21% beyond the end of February.
187. Deputy Richard Boyd Barrett asked the Minister for Finance if assistance will be provided to a person (details supplied) in relation to the help-to-buy scheme; and if he will make a statement on the matter. [5383/21]
Amharc ar fhreagraI am advised by Revenue that the person in question made an application for the Help to Buy (HTB) scheme on 25 September 2020. This application was approved by Revenue but as no formal HTB claim was subsequently made by the person, it expired on 31 December 2020.
The person reapplied for the scheme in January 2021 and was again approved by Revenue. Revenue confirmed this position to the person on 27 January 2021 and advised him on how to complete the next stage of the process.
If the person has any further queries or requires additional assistance, he should contact Revenue via the myAccount service or by telephone at 01-7383636.
188. Deputy Noel Grealish asked the Minister for Finance the number of home repossession cases taken by banks and equity funds due to mortgage arrears in the past 12 months; the number of cases which were refused; the number which were successful; and if he will make a statement on the matter. [5388/21]
Amharc ar fhreagraThe Central Bank of Ireland ‘Residential Mortgage Arrears and Repossession Statistics’ provides information on residential mortgage arrears, residential mortgage restructures and the number of residential mortgages within the legal system. The latest available data is for quarter 3 2020 (https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears).
In the 12 months to end-September 2020, the Central Bank advises that 1,916 new legal proceedings were issued to enforce the debt/security on a Primary Dwelling House (PDH) mortgage. Of this, 905 relate to banks and 1,011 were by non-banks. Overall, at end September 2020 a total of 7,938 PDH mortgage accounts were within the legal system.
The Central Bank also advises that, in the 12 months to end-September 2020, 1,804 legal proceedings to enforce the debt/security on a PDH mortgage were concluded. Of this, 615 related to banks and 1,189 to non-banks. Of the total legal proceedings concluded, some 447 concluded with an order for possession/sale obtained. Of these, 226 orders were to banks and 221 were to non-banks. The remaining concluded proceedings relate to cases that concluded without an order for possession/sale; this includes cases where the property was voluntary surrendered, the mortgage terms and conditions were renegotiated, cases were struck out etc.
190. Deputy Kathleen Funchion asked the Minister for Finance his plans to extend the employment wage subsidy scheme for the early years sector beyond the current end date in view of comments made in the media (details supplied); and if he will make a statement on the matter. [5438/21]
Amharc ar fhreagra203. Deputy Neasa Hourigan asked the Minister for Finance his plans to extend the employment wage subsidy scheme beyond 31 March 2021; and if he will make a statement on the matter. [5820/21]
Amharc ar fhreagraI propose to take Questions Nos. 190 and 203 together.
The Employment Wage Subsidy Scheme (EWSS) is a measure intended to provide support across all sectors of the economy and maintain the link between the employer and employee insofar as is possible. The Employment Wage Subsidy Scheme (EWSS) has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, subsidy payments of almost €2 billion have been made and PRSI relief worth over €300m granted to over 44,500 employers in respect of over 500,000 employees.
I have been clear that there will be no cliff-edge to the EWSS. It is noted that the legislation implementing the measure provides that it will be in place until 31 March 2021, but also provides that the scheme may be extended until the end of June 2021, should it be required.
It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.
In the meantime I am satisfied that the current configuration of the Employment Wage Subsidy Scheme (EWSS) fully takes account of the changing environment around living with the COVID-19 pandemic, in line with the Resilience and Recovery 2020-2021: Plan for Living with COVID-19.
For those businesses who may need additional support at this time, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
193. Deputy Rose Conway-Walsh asked the Minister for Finance the estimated cost in terms of customs charges, duty and VAT associated with an individual importing power tools on a non-commercial basis from the United Kingdom; and if he will make a statement on the matter. [5466/21]
Amharc ar fhreagraSince 1 January 2021 the United Kingdom (UK) has ended the transition period with the European Union (EU) with EU rules no longer applying, is no longer a member of the EU and as a result, imports from the UK (excluding Northern Ireland) may incur additional charges including customs duties and VAT.
I am advised by Revenue that VAT is chargeable on all imports from Great Britain that are greater than €22. Customs duty may be chargeable on purchases over €150, depending on the origin of the goods.
The Revenue website has a useful VAT database for finding the appropriate VAT rates. This database is available at https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/VAT-rates-database.aspx. The VAT rate for power tools is 21%.
The EU-UK Trade and Cooperation Agreement has eliminated Customs duties for goods imported from Great Britain where the goods are of UK origin under the Rules of Origin in the agreement. Importers of goods to Ireland must claim the preferential tariff rate of 0% on the import declaration and must be able to prove that the goods being imported are of UK preferential origin. The exporter in the UK should be able to provide the required proof. Goods of non-UK origin imported from the UK are liable to customs duty.
Customs duty is normally calculated as a percentage of the customs value of the goods. The percentage rate of duty varies depending on the type of goods being imported. The EU TARIC database, which is available via the Revenue website, can be used to determine the classification of a product and the 3rd country customs duty rate that applies on import into the EU. Further information on the classification process is available on the Revenue website at https://www.revenue.ie/en/customs-traders-and-agents/importing-and-exporting/classification/index.aspx. Importers having difficulty in determining the product classification code for a particular product should contact the Revenue Tariff Classification Unit through Revenue’s secure MyEnquiries service or email: tarclass@revenue.ie for guidance. A detailed description of the product should be included to assist with classification. Power tools is a generic term and is not specific enough to classify the goods and to determine the tariff rate.
The customs value on which customs duty is calculated is the cost of the goods plus the transport costs (including postage), any insurance fees and any handling charges to deliver the goods to the EU. VAT is calculated on the customs value, plus any customs duty applicable.
194. Deputy Neale Richmond asked the Minister for Finance his plans to call on insurers to reimburse drivers due to the underuse of vehicles as he did during April 2020; and if he will make a statement on the matter. [5496/21]
Amharc ar fhreagraAt the outset, working to protect insurance policyholders during and after the COVID-19 crisis is a priority for Government. As such, it is included within the Programme for Government and the Action Plan for Insurance Reform, launched last December. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally.
I can assure the Deputy that both Minister of State Fleming and I have had extensive engagement with motor insurers and other key policy stakeholders throughout 2020 and these discussions are planned to continue this year. As the Deputy indicates I have called upon insurers to be pro-active and generous in relation to their treatment of motor insurance customers during the COVID-19 crisis. In particular, I would highlight an expected significant reduction in claims arising from the travel restrictions that have been in place. Last year saw a number of insurers announcing a range of forbearance measures and motor insurance rebates for policyholders. Insurers have agreed to further review the situation if Covid-19 restrictions on movement continue to result in sustained lower road usage and claims frequency this year.
More recently, as part of comprehensive engagement on the Government’s insurance reform agenda with a wide range of stakeholder interests, including the main Irish insurers and their representatives, Minister of State Fleming again raised the need for industry to respond to both the Government’s ongoing reforms and COVID-19 pandemic. This expectation will be met through lowering premiums, continuing to offer forbearance measures, and by expanding their risk horizon in the market (such as providing more cover for younger drivers.
While Insurance Ireland last week (27 January) announced a continuance of forbearance measures on behalf of a number of its members, including a number of measures directly targeting motor insurance policyholders, both Minister of State Fleming and I will continue to raise this issue through our ongoing engagement with insurers, particularly in light of the stricter restrictions on movement currently in place as a result of Government measures to combat the pandemic.
195. Deputy Louise O'Reilly asked the Minister for Finance the estimated additional revenue if the VAT exemption on the management of specified and special investment funds was removed; and if he will make a statement on the matter. [5497/21]
Amharc ar fhreagraI am advised by Revenue that the VAT exemption relating to the supply of the management of specified and special investment funds is a requirement of EU VAT law, with which Irish VAT law must comply. The VAT Consolidation Act 2010 provides that the management of an undertaking specified in paragraph 6(2) of Schedule 1 is an exempt activity and there is no scope under the Directive to remove this exemption.
I am further advised by Revenue that it is not possible to separately identify expenditure specific to the management of such funds, as this level of information is not required to be recorded in tax returns.
196. Deputy Rose Conway-Walsh asked the Minister for Finance if an employee enrolled on the wage subsidy scheme in 2020 who has continued to work full time throughout the pandemic will face a reduction in their income due to the calculation of the scheme as a percentage of an employee's previous net weekly earnings rather than gross weekly earnings; and if he will make a statement on the matter. [5505/21]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the Temporary Wage Subsidy Scheme (TWSS) that was in place from 26 March 2020 until 31 August 2020 to support firm viability and preserve the relationship between the employer and employee insofar as is possible by subsidising a portion of the employer wage bill in circumstances where the employer’s business has been negatively impacted by the restrictions that have had to be introduced to stop the spread of the COVID-19 virus.
Throughout the operation of the TWSS the employer was expected to make best efforts to maintain the employee’s net income for the duration of the scheme.
However, the question of an individual’s entitlements and rights in an employment context, the question of what wages an employer would be legally obliged to pay employees in respect of hours worked and the question of an employer’s capacity to pay wages to employees at pre-COVID levels in the light of the impact of the pandemic on the employer’s business, were matters between the employer and the relevant employees and were outside the remit of the TWSS.
An employer who received TWSS payments under the scheme was obliged to pass on any such payments to its employees. Revenue’s ongoing TWSS compliance programme is specifically examining that employers adhered to that requirement, as well as examining employer/employee eligibility for the TWSS.
In order to get much needed income supports into the hands of employees as quickly as possible, Revenue operated a transitional phase of the Temporary Wage Subsidy Scheme until 3 May 2020. This transitional phase of the TWSS provided a subsidy of 70% of the average net weekly pay up to a maximum of €410 in respect of eligible employees.
On 4 May 2020 Revenue moved to the operational phase of the TWSS, which included increased subsidy rates of up to 85%, subject to certain limits. During this phase of the scheme Revenue ensured that the subsidy refunded to employers was based on each individual employee’s Average Revenue Net Weekly Pay (ARNWP), which was derived from an employee’s average net earnings in January/February 2020.
I am advised by Revenue that during the operational phase of the TWSS, the calculation of the subsidy payments to employers in respect of its employees based on the average net earnings of each employee during January/February 2020 has optimised the payments to employers for the vast majority of its employees. However, Revenue publicly announced on 8 May 2020 that for a small number of employees who were higher income earners before the COVID 19 pandemic, because of the interaction between their gross and net earnings, an additional subsidy payment may be due.
Revenue is currently in the process of identifying these employees, with a view to calculating any additional subsidy payment that may be due and will offset this amount against any undercharges of income tax and USC arising on their untaxed TWSS payments. This exercise is being done as part of Revenue’s final reconciliation of the Temporary Wage Subsidy Scheme.
Reconciliation involves a comprehensive review by Revenue of the ‘subsidy payable’ amount for each employee payslip, based on the rules of the TWSS. The total ‘subsidy payable’ amounts will then be compared to the actual total amount paid to the employer under the scheme to identify any instances where the amounts reimbursed to employers may have been over or under paid. In order to complete the reconciliation process, employers must provide details of the wage subsidy they paid to their employees. To date, Revenue has already received ‘subsidy paid’ data in respect of 94% of the 6 million payslips that were covered under the TWSS and is actively engaged with those employers who have yet to provide these details. Once all of the required information is available from TWSS reconciliation, the matter of calculating any additional subsidy payments to employees who may have such an entitlement and recalculating the tax and USC liability can be finalised. This process is likely to take several weeks to complete.
198. Deputy Alan Dillon asked the Minister for Finance the number of applications for a scheme (details supplied) from businesses in County Mayo; the number of applications approved; the amount of support paid out to those businesses; and if he will make a statement on the matter. [5610/21]
Amharc ar fhreagraRevenue has published detailed statistics on the main COVID-19 subsidy schemes since late March 2020, including the Temporary Wage Subsidy Scheme (TWSS), the Employment Wage Subsidy Scheme (EWSS) and the Covid Restrictions Support Scheme (CRSS). These statistics are available at link https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx and are updated on a weekly basis at the same link.
The CRSS statistics (CRSS-Table 3) show the available information by county.
199. Deputy Michael Lowry asked the Minister for Finance the reason a person (details supplied) has not received VRT quotes; when the situation will be improved; and if he will make a statement on the matter. [5653/21]
Amharc ar fhreagraI previously referred to this matter in my reply to Dail Question No. 250 (Ref: 36194-20 answered on 17th November 2020).
Revenue has advised me that the backlog in registering camper vans for Vehicle Registration Tax (VRT) purposes during the latter part of 2020 has been fully cleared. This includes camper vans owned by the business in question.
Revenue has also confirmed that it is currently reviewing the process for registering camper vans to determine if any improvements can be made to minimise possible delays in the future. As part of this review Revenue has confirmed that it will engage with the camper van sector, including the business in question.
200. Deputy Seán Haughey asked the Minister for Finance the reason an employee (details supplied) who was on the temporary wage subsidy scheme recently received a tax bill for 2020; if it is open to them to query this bill given their circumstances; and if he will make a statement on the matter. [5666/21]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020 to provide income support to eligible employees where their employer’s business activities were negatively impacted by the COVID-19 pandemic. The scheme operated until 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
TWSS payments were liable to income tax and USC in the same way as ‘normal’ wages. This ensures consistent treatment with other workers whose pay was not subsidised by the State, including those in receipt of pay commensurate with the levels of income paid out under the measures such as minimum wage workers.
However, these liabilities were not deducted from payroll in the usual manner during 2020 and instead became due at year end. This decision was taken in order to maximise the amount of financial support that was provided to recipients at a time when it was considered that they needed such support most.
It is important to note that some employees in receipt of the TWSS received tax and USC refunds during 2020 because their subsidy payments were not taxed in real-time and the cumulative system of tax deduction calculated that refunds were due to them based on their income and tax deductions at each pay date.
According to Revenue’s records, the person in question had two active employments in 2020, with one employer participating in the TWSS. The person received TWSS payments of €350 per week through this employer for seventeen weeks during the period 2 April 2020 to 30 July 2020. The only exception was for the pay date of 11 June 2020 where the person did not receive a subsidy payment. The person also received varying ‘top-up’ payments from the employer during the period, which were taxed in real-time through the PAYE system.
The person submitted his 2020 Income Tax return on 9 January 2021 and, based on the information provided, a final Statement of Liability issued to him on 16 January 2021, confirming an underpayment for the year.
While Revenue is satisfied that the underpayment calculations are correct, it has confirmed that it will make direct contact with the person to explain how the liability arose. Revenue will also assure the person that the amount will be collected, interest free, over a four-year period beginning in January 2022 by reducing his tax credits for those years.
201. Deputy Róisín Shortall asked the Minister for Finance if he will undertake to discuss with the major banks the possibility of allowing a special provision for mortgage payment breaks for those working in the aviation sector given the severe impact on that sector as a result of the pandemic; and if he will make a statement on the matter. [5747/21]
Amharc ar fhreagraOn 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.
While many borrowers whose payment break has ended have been able to return to full payments, it is also recognised that many borrowers continue to be impacted by the economic consequences of COVID-19 and they may not be in a position to resume their loan repayment commitments when their payment break ends or may now be in difficulty for the first time.
The Deputy will be aware that 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 this January 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. It is in the best long term interests of both the borrower and lender that engagement takes place in relation to a particular loan difficulty and that the most appropriate solution to the individual case is adopted as soon as possible.
Borrowers have a suite of regulatory protections, such as the Central Bank's Code of Conduct on Mortgage Arrears and the Consumer Protection Code, and lenders have specific obligations to support and work with borrowers who are continuing to experience loan difficulty because of COVID-19. 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.
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 and Central Bank expectations.
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.
202. Deputy Neale Richmond asked the Minister for Finance if he has considered issuing a commemorative coin to honour front-line workers as has been done in Italy; and if he will make a statement on the matter. [5814/21]
Amharc ar fhreagraThe role of the Minister of Finance is to authorise the issuance of circulating and commemorative coins.
The Central Bank of Ireland acts as an agent for the Minister in issuing all Irish coin, both circulating and commemorative. The Central Bank has responsibility for the design, production and issuance of the commemorative coins.
The commemorative coin programme for 2021 has been finalised, and the Central Bank is currently seeking submissions from the general public in relation to the collector coin programme for 2022.
All submissions, including any submission relating to front-line workers, will be considered as part of the commemorative coin programme for 2022.
The Collector Coin Unit at the Central Bank can be connected directly at coindesign@centralbank.ie.
205. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if the stay and spend scheme is to be extended past its current termination in April 2021 given the current restrictions; and if he will make a statement on the matter. [5837/21]
Amharc ar fhreagraThe purpose of the Stay and Spend Tax Credit scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions on public health grounds. The scheme was developed at a time when there appeared to be a steady downward trend in infection rates, and there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this has not been the case and, thus far, with the exception of some short periods, public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.
Stay and Spend is scheduled to operate until 30 April but the flexibility exists for me to extend its operation in 2021 beyond that date (to end 2021). It is too early as yet to take definitive decisions in that regard. Much will depend on how circumstances unfold in the months ahead. As I have said before, I will keep an eye on how matters develop and the role that the scheme might play and consider if any changes need to be made.
Since 1 October 2020 when the Stay and Spend scheme commenced, a total of 47,613 receipts have been uploaded to the Revenue Receipts Tracker, as at 28 January 2021. The expenditure recorded on these receipts amounts to €7,652,571 and the potential tax cost is €1,530,514, assuming all such expenditure is claimed and qualifies in full for tax relief.
Finally, it is important also to recall that Stay and Spend should not be viewed in isolation from the other measures put in place to support businesses generally and the hospitality sector in particular. The VAT change; the rates waiver; the wage support scheme and its application to new or seasonal staff; and other Government measures all play a part in helping the hospitality sector cope with the challenges it faces.
