Written Answers Nos. 30-56
30. Deputy Ged Nash asked the Minister for Transport if a value for money policy review was conducted on the current search and rescue agreement in order that its findings can be taken into consideration before any future contract is awarded; and if he will make a statement on the matter. [6125/21]
Amharc ar fhreagraWhile not a Value for Money Policy Review per se, aviation consultants Aerosurance Ltd carried out a Mid-Term Assessment of the contract in 2018 including performance and contractual compliance. The review specifically identified issues to be taken into consideration in relation to the new service. The review is not publicly available as it contains commercially sensitive information and forms part of a wider deliberative process for the procurement of the new SAR Aviation service currently underway.
33. Deputy Brendan Smith asked the Minister for Transport if he will pursue with an institute (details supplied) the need for examinations to proceed as planned; and if he will make a statement on the matter. [6141/21]
Amharc ar fhreagraMy Department has been in communication with the Chartered Institute of Logistics and Transport in view of the potential difficulties arising for candidates arising from their proposed cancellation of the Transport Management CPC examination on March 31. I am pleased that, in response, my officials have received confirmation from the Institute that the examination will now be held on that date as an exceptional measure for 2021.
34. Deputy Jackie Cahill asked the Minister for Transport if a person can be permitted to sit a driver theory test for a tractor licence during the current Covid-19 related lockdown similar to the manner in which bus and truck CPC theory tests can be sat remotely given that agriculture and the production of food are essential services; and if he will make a statement on the matter. [6153/21]
Amharc ar fhreagraThe Driver Theory Test service has recently launched a pilot phase of a new initiative, which offers a Remote Testing service for specific categories of Theory Test (C, D, CD, BMT, TMT, ADI, CPCB, CPCT). Following a review of the pilot phase, I understand the RSA expect the initiative to be extended to other categories of vehicles including B and W (Car/Tractor & Work Vehicles).
The RSA are keen to progress and extend the service to all categories of Driver Theory Test, however scaling up operations to facilitate higher numbers will take time to achieve.
36. Deputy Sean Sherlock asked the Minister for Transport if consideration is being given to a free transport for all pilot project; and the estimated costs associated with same. [6175/21]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport and have no plans to introduce free public transport for all users, which would require substantial additional funding by the taxpayer or from other sources.
The National Transport Authority (NTA) has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable. The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.
The Covid-19 health emergency has had a profound and swift shock to the public transport sector. Public transport’s designation as an essential service throughout the pandemic means, that although fare revenues have collapsed, most of the cost of operations remains and must continue to be met in order to fulfil Government’s broader policy objectives. Government support for all public transport services in 2020 amounted to over €620m. For 2021 over €670m has been provided in funding in order to ensure that the existing level of public transport services, albiet at a higher cost, continue to operate in a safe manner. By comparision, the level of PSO and Local Link funding provided in 2019 was in the region of €300m. It is also worth noting that, in addition to the PSO and Local Link allocation to support the operation of services, there is also a substantial level of multi-annual Exchequer capital investment in public transport infrastructure; in 2021 this amounts to a further €607 million.
37. Deputy Sean Sherlock asked the Minister for Transport further to Parliamentary Question No. 252 of 29 September 2020, if further drawdowns have occurred. [6200/21]
Amharc ar fhreagraThe improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Councils' own resources supplemented by Exchequer road grants, where applicable. The initial selection and prioritisation of works to be funded is also a matter for the local authority.
Details of the regional and local road grant allocations and payments to local authorities, including 2020, are outlined in the regional and local road allocations and payments booklets which are available in the Oireachtas Library. The tables included in the allocations and payments booklets outline expenditure by type of grant programme.
Grant allocations for 2021 will be announced as soon as possible.
38. Deputy Johnny Mythen asked the Minister for Transport if the CPC for bus and truck tests will be carried out online as is the case in the UK; if he will consider such a system here; and if he will make a statement on the matter. [6250/21]
Amharc ar fhreagraCurrently, the Road Safety Authority (RSA) does not facilitate on-line Driver CPC training. EU Directive 2003/59/EC which introduced Driver CPC was updated in 2018 by EU Directive 645 of 2018, and while the amended directive allows for the use of ICT tools such as e-learning and blended learning as part of CPC training, a substantial amount of the training will be required to be completed in an approved Driver CPC training centre.
The RSA believes that delivering some part of the training online is the way forward and it is their intention to consult with the industry, including all Driver CPC training organisations to establish how training can be enhanced and improved within the scope of the opportunities provided for in the EU legislation. It is hoped that this review will start in early 2021.
39. Deputy Matt Carthy asked the Minister for Transport the number of tractors imported to Ireland from the UK in each of the years 2016 to 2020, in tabular form; and if he will make a statement on the matter. [6253/21]
Amharc ar fhreagraThe table below provides the total number of Tractors imported to Ireland by year. However, the details requested by the Deputy relating to all imported Tractors from the UK cannot be provided as the country of origin (where the Tractor is imported from) is not supplied in all cases.
|
Year Imported |
Number of Tractors |
|
2016 |
1,908 |
|
2017 |
2,453 |
|
2018 |
2,198 |
|
2019 |
2,595 |
|
2020 |
2,648 |
40. Deputy Éamon Ó Cuív asked the Minister for Transport the process he plans to follow in considering the report on the future of the western rail corridor; when it is likely that this process will be brought to a conclusion; if his attention has been drawn to the fact that Galway County Council in a pre-emptive move has sought tenders for the preparation of a feasibility study for a greenway from Athenry to Milltown in which it clearly states the preferred option is to put it on the existing railway line along this route; if he plans to request that the council defer this study while he is considering the report on the western rail corridor; and if he will make a statement on the matter. [6326/21]
Amharc ar fhreagraLast year, under the Carbon Tax Fund, I announced funding would be provided to Galway County Council in relation to a feasibility study of a proposed greenway between Athenry and Milltown.
The tender referred to by the Deputy relates to that funding and, as clearly and unequivocally stated in the published tender documentation, the study will examine a number of route options (as is required under the Public Spending Code) including along the alignment of the currently disused railway line, along with other viable and alternative options that emerge from the feasibility study and the route options assessment. The proposed approach is a very reasonable one and I look forward to its conclusion in due course.
In relation to the Western Rail Corridor, the Deputy is aware that two documents have recently been published on my Department’s website and are available to view through the following link:
https://www.gov.ie/en/publication/1174d-review-of-western-rail-corridor-phases-2-and-3-athenry-to-claremorris/
The first report is a financial and economic appraisal (sometimes referred to as a preliminary appraisal) of the proposal which was commissioned by Iarnród Éireann, in line with a decision of the previous Government.
The second is an independent review of the proposal, commissioned by my Department. This review was conducted by JASPERS, an EU/EIB agency which provides advisory services to Member States (and other public authorities in the EU) and has extensive experience in relation to transport infrastructure proposals in European regions. This independent review noted a number of shortcomings in relation to the proposed re-opening of the Western Rail Corridor Phases 2 and 3 as presented, in particular around issues such as the need to demonstrate the strategic role of the proposal and how it sat within the broader proposed development of the network.
In light of the analyses conducted thus far, and in particular with regard to the findings of the independent review conducted by JASPERS as commissioned by my Department, I have requested my Department to prepare terms of reference for a Strategic Rail Review. This Review will consider all relevant issues in relation to inter-urban rail, inter/intra-regional rail and rail connectivity to our international gateways, with the latter considering the role of rail freight. I understand this may be the first such Review to be conducted on an all-island basis and this will, I believe, allow for a fuller consideration of the potential role of rail and the network required to support that potential than perhaps has been allowed before.
While I am hopeful that the terms of reference will be agreed and the procurement process launched by the end of Q1, the ultimate duration of the Review will be determined by the work programmes submitted in response to that process. This will be one of the most significant reviews of the rail on the island in many years and will provide a framework to develop a much-improved rail network in the years ahead.
41. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if all share fishermen in the State are being treated in the same manner by the Revenue Commissioners in accordance with the High Court judgements of October 2001 and subsequent tax and duty manual published following same; if section 2.5 is being applied, that is, capital allowances shared between boat owners and crew on the same basis in different locations; and if he will make a statement on the matter. [6113/21]
Amharc ar fhreagraI am advised by Revenue that the High Court judgments of October 2001 to which the Deputy refers relate to a number of cases dealing with share fishermen with similar facts. In those cases, it was determined by the High Court that the share fishermen were not employees of the boat owner but had a relationship with the boat owner or skipper in the nature of a partnership.
I am further advised by Revenue that, in determining whether a partnership or an employee/employer relationship exists as between the owner of a fishing boat and the crew (fishermen), regard must be had to the individual facts of each boat and the nature of the working relationship between the owner and the fishermen. This will also determine any entitlements to capital allowances.
Where an employer/employee relationship exists based on the facts of the case, salary or wages of the fishermen is chargeable to income tax under Schedule E and is subject to deductions under the PAYE system by the employer. Part 42 Chapter 4 Taxes Consolidation Act 1997 imposes a legal obligation on employers to make deductions at source under the PAYE system from the payment of emoluments to an employee. Where a fisherman is an employee, he has no entitlement to capital allowances relating to the boat and equipment.
Where the relationship between the owner and fishermen is a partnership, their relationship will be governed by partnership law. As is the case with all partnerships, the precedent acting partner is obliged, under the rules of self-assessment, to submit an annual Form 1 partnership return which contains details of the activities of the partnership and includes the identity of the partners and the details of the division of the profits/losses and capital allowances between partners. In general, the precedent acting partner in a boat will be the owner/skipper.
Where the share fishermen are in a partnership, each partner is required to submit an annual tax return, as they are chargeable persons under self-assessment rules. There are also obligations to make appropriate preliminary tax payments and pay the balance of any tax due.
In relation to capital allowances, where a partnership exists, the capital allowances relating to the boat and equipment become the capital allowances of the partnership. This means that the capital allowances are calculated at partnership level and are allocated to each partner. The appropriate share of the allowances is the amount computed in accordance with the profit-sharing ratio included in the partnership agreement for the year of assessment and returned on the annual Form 1 partnership return.
Revenue has published guidance on the tax treatment of share fishermen which is available on their website at: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-01-11.pdf.
Finally, if the Deputy has concerns about a particular case or class of cases in relation to this issue, he might wish to raise the specific details of those cases with the Revenue Commissioners.
42. Deputy Ged Nash asked the Minister for Finance if he will provide a progress report on work currently underway between his Department and the Central Bank to progress the individual accountability framework which seeks among other things to enhance the accountability of senior persons in banks; and if he will make a statement on the matter. [6069/21]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government includes a commitment to introduce a Senior Executive Accountability Regime (SEAR). SEAR will drive positive changes in terms of culture, greater delegation of responsibilities, and enhanced accountability while simplifying the taking of sanctions against individuals who fail in their financial sector roles.
My officials are engaging with the Attorney General's Office in advance of submitting draft heads of Bill to Government so as to ensure that the correct balance is struck between appropriate additional powers for the Central Bank and the protection of individuals' constitutional rights.
My officials continue to consult regularly with the Central Bank throughout this process.
It is my intention that draft heads of Bill will be presented to Government for approval in the near future.
43. Deputy Seán Haughey asked the Minister for Finance if the Revenue Commissioners online website can be made more user friendly; if it can be simplified for users; if less jargon and terminology could be used on the website; and if he will make a statement on the matter. [6086/21]
Amharc ar fhreagraI am advised by Revenue that its website was redesigned and upgraded in 2017. The redesign process included wide consultation with taxpayers and stakeholders regarding their online experiences and requirements to ensure the new service is both user friendly and effective in meeting customer needs. For example, the writing style adopted for the website was reviewed by the National Adult Literacy Agency to ensure information is easy to find, easy to read and easy to understand.
Revenue has also confirmed that any new material being posted to the website is compared against recognised standard scales of readability to ensure against the use of ‘jargon’ to the greatest extent possible. Information that is intended for tax professionals may by its nature be more technical but is clearly distinguished on the website as being relevant to that cohort of users.
Revenue has assured me that all customer feedback regarding its website is very welcome. Any suggestions received are carefully considered so that improvements can be made on a continuous basis thereby ensuring the service is user-friendly and information is set out in plain language as far as possible.
If the Deputy has concerns over any aspect of the online services or the terminology used, he should direct them to Revenue at email address, ccru@revenue.ie. Revenue has assured me that it will follow up on any suggestions made by the Deputy where it is possible to do so.
44. Deputy Niamh Smyth asked the Minister for Finance if the case of a person (details supplied) will be reviewed; if reassurance or clarity can be provided on supports in the case; and if he will make a statement on the matter. [6089/21]
Amharc ar fhreagra47. Deputy Joan Collins asked the Minister for Finance when he will put in place a community business restrictions support scheme to respond to small business such as travel agencies that have been unable to access the Covid restrictions support scheme. [6158/21]
Amharc ar fhreagraI propose to take Questions Nos. 44 and 47 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.
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 which was launched earlier this week. 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.
45. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the negative impact of a debt to the Revenue Commissioners on an application for the help-to-buy scheme as a result of an applicant’s employer availing of the temporary wage subsidy scheme in 2020 and therefore creating an underpayment of personal tax for 2020 which will be repaid by the reduction in tax credits over a four year period by agreement with the Revenue Commissioners; and if he will make a statement on the matter. [6101/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive 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.
Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and that he or she has completed a tax return form and paid any outstanding balance for each of the four tax years prior to making the application.
In relation to the tax due (if any) on amounts received under the Temporary Wage Subsidy Scheme (TWSS) or Pandemic Unemployment Payment (PUP), I am advised by Revenue that employees will be given the opportunity to fully or partially pay any income tax liability through the Payments/Repayments facility in myAccount. Otherwise, Revenue will collect the liability, interest free, by reducing the employees tax credits over 4 years to minimise any hardship. The reduction of tax credits will start in January 2022.
Where an underpayment of tax arises for the year 2020 as a result of amounts received under the TWSS or PUP, Revenue further advise me that it will allow a claim for HTB relief for the amount of income tax paid for 2020 and will not require the outstanding tax liability to be paid in advance where the underpayment of tax is due to be collected from 2022 by reducing the claimant’s tax credits. This will only apply where all other conditions of the HTB scheme are satisfied.
46. Deputy Peadar Tóibín asked the Minister for Finance the current length of time for processing each of the main tax reliefs and in the case of a person (details supplied) in tabular form. [6105/21]
Amharc ar fhreagraI am advised by Revenue that it has already been in direct contact with the person in question regarding her tax relief entitlements in respect of 2016 and 2017.
The person is currently completing her tax returns for both years so that her entitlements can be finalised. Revenue has also provided the person with a direct contact telephone number in case she requires any further assistance.
48. Deputy Bríd Smith asked the Minister for Finance the number of pandemic unemployment payment recipients who have received demands for tax owed as a result of the payment. [6182/21]
Amharc ar fhreagra49. Deputy Bríd Smith asked the Minister for Finance if his attention has been drawn to pandemic unemployment payment recipients who are being taxed on incorrect estimates of the payment by the Revenue Commissioners; and the number who have contacted his Department as a result of incorrect figures. [6184/21]
Amharc ar fhreagraI propose to take Questions Nos. 48 and 49 together.
The Pandemic Unemployment Payment (PUP) is a social welfare payment for workers who have become unemployed due to the COVID-19 pandemic. PUP payments are classified as income supports and share the characteristics of income from a taxation perspective. This is important from an equity point of view as people unaffected by the pandemic who receive ‘normal’ wages to a similar value are taxed in the usual manner. The taxation arrangements for the PUP were legislated for in Finance Act 2020 which reflects the standard approach to taxation of social welfare type payments, including exemption from USC and PRSI.
Revenue advise me that the Department of Social Protection (DSP) shares taxable benefit payment details, including information relating to the PUP, with Revenue in accordance with the Social Welfare Consolidation Act 2005. These data exchanges are subjected to rigorous testing procedures to ensure any information updated to taxpayers’ records is accurate and fully reflects the information provided to Revenue by DSP, thereby ensuring they pay the right amount of tax in respect of their overall taxable earnings. Revenue has confirmed that the 2020 PAYE ‘Preliminary End of Year Statements’ (PEOYS), which were made available to all employees on 15 January 2021 included the PUP related data provided by DSP. This data reflected the actual PUP payments made to each person and did not include any element of estimation. It is, however, possible that the final year position for 2020 for some employees could alter if subsequent updates are provided to Revenue by DSP for that year, for example arrears payments or additional taxable welfare payments.
As regards the number of PUP recipients who have a tax liability now arising from receipt of the payment, Revenue have advised me that they published a detailed breakdown of the position of PAYE taxpayers for 2020, based on their PEOYS. The information is available at the following link,:
https://www.revenue.ie/en/corporate/documents/statistics/registrations/paye-preliminary-eoy-statements.pdf ,
It shows the distribution of overpayments and underpayments, by amount (including averages), for all relevant PAYE taxpayers. This includes those who received the Pandemic Unemployment Payment (PUP) and the Temporary Wage Subsidy Scheme (TWSS) either separately or combined. The published information also includes those who did not receive any PUP or TWSS payments. While it is not possible to identify whether an underpayment is solely due to a taxpayer unit having been in receipt of the PUP, table 2 sets out the position for those taxpayer units who received only the PUP and not a combination of the PUP and the TWSS, table 3 sets out the position for those persons who underpaid in increments of €100; and table 4 provides information on taxpayer units who received a combination of the TWSS and the PUP.
Finally, I am informed by relevant officials that they are not aware of having received any contacts in the Department from individuals as a result of incorrect figures. However, in the normal course of events, such approaches would be dealt with by Revenue. In this regard, Revenue have confirmed that they provide a PAYE Helpline for employees. It receives significant volumes of calls each day in respect of all aspects of PAYE, including the taxation of social welfare payments.
50. Deputy Éamon Ó Cuív asked the Minister for Finance when the temporary wage subsidy scheme commenced; the date on which a decision was made that this payment would be liable to tax and USC; the date legislation was passed giving effect to this decision; the reason employers were not instructed to tax this payment at source; the total tax due to the Revenue Commissioners as a result; if his attention has been drawn to the fact that many employers were not aware that this payment was taxable and therefore only topped up employees’ salaries or wages to the previous level while on this payment, thus now leaving them with an effective cut in net take-home pay for this period; and if he will make a statement on the matter. [6202/21]
Amharc ar fhreagraThe Temporary Wage Subsidy (TWSS) was in place for 22 weeks between 26 March and 31 August 2020.
It was introduced as an emergency income support for employees of vulnerable firms whose businesses had been negatively impacted by the restrictions that had to be introduced to stop the spread of the COVID-19 virus and whose turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place. The support was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible and, to that end, the rate of Employers' PRSI was also significantly reduced to 0.5%. The level of income given to each individual employee was based on previous wages received in January and February 2020. Over 66,500 employers received a subsidy under the TWSS with payments worth just under €2.9 billion paid out to a total of 664,000 workers. The average monthly cost of the TWSS was around €500m.
It is acknowledged that, of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the overarching, urgent Government objective of getting much needed assistance to employers and employees, where businesses had been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
Despite the speed of implementation, I can be categorical that the criteria and mechanics of the TWSS was very clearly communicated to both employers and employees from the beginning of the measure and throughout 2020, including that the subsidy was based on net pay and that tax was not collected in real-time through the PAYE system while the scheme was in operation, and instead would be collected after an end of year review, if any such liability arose.
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, when the TWSS was first announced and expected to only be in place for 12 weeks. Net pay was the chosen benchmark for the TWSS as the priority was to preserve take-home income of workers insofar as was possible, noting that similar rates of income supports based on previous pay levels were also being provided for those on the Pandemic Unemployment Payment (PUP) administered by the Department of Social Protection.
The TWSS was legislated for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020, which was published on 24 March 2020, passed by Dáil Éireann on 26 March 2020, passed by Seanad Éireann on 27 March 2020 and signed into law by the President on 27 March 2020. The taxation treatment of TWSS payments was specifically included in section 28(5)(e) of the Emergency Measures in the Public Interest (Covid-19) Act 2020, which provides that “notwithstanding any other provision of the Act, the additional amount paid by the employer to a specified employee in accordance with paragraph (d) shall not be regarded as emoluments of the specified employee for the purposes of Chapter 4 of Part 42 of the Act and the Regulations, but shall be treated as income chargeable to tax on the specified employee under Schedule E within the meaning of section 19 of the Act”.
The Government have been consistent as regards the TWSS’s liability to tax from the outset of the payment. Indeed, I have been advised by Revenue that it clarified the tax treatment of the TWSS at employee level in the guidance material on the TWSS that it has published on its website since the commencement of the Scheme. Furthermore, Revenue actively engaged in facilitating webinars with the Employer Bodies, Accountancy Firms and Tax Practitioners to explain and clarify any issues for employers as regards the TWSS. For the information of the Deputy, the link directs to Revenue’s material on Frequently Asked Questions on the TWSS:
https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf
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.
Payments made under the TWSS were regarded as income supports and share the characteristics of income. Other income earners in receipt of comparable “normal wages” are taxable on those wages. In the interest of equity, therefore, payments under the TWSS are subject to income tax and Universal Social Charge (USC). While income tax and the USC on most income is deducted in real-time as and when the person is paid, the TWSS payments were not taxed in real-time and were instead liable to income tax and USC at the end of 2020.
When the TWSS was extended for a further 10 weeks until the end of August 2020, Revenue took steps to minimise the amount of income tax and USC due, if any, on TWSS payments at the end of the year. This was done by placing all recipients of the TWSS or PUP on the ‘week 1 basis’ of taxation for the remainder of the year so as to “preserve” unused tax credits that can then be used to offset any income tax or USC liabilities that arise at year end.
Although the final calculation of the end of year liability for each person is dependent on their personal circumstances, and still pending for the overall amount of tax due, based on data that Revenue released in January, it is noted that almost half of those in receipt of the PUP or TWSS have no outstanding liability to discharge (in fact over a third are due a refund).
In the case of the remaining taxpayer units with an outstanding liability, the data indicates that amounts to be collected are modest in scale, with 44% owing less than €500 and 72% having a liability of less than €1,000. If paid over the 4 year period beginning in 2022, the majority of those cases will owe less than €5 per week, with nearly half paying less than €2.50 per week. These figures represent a preliminary liability and may be further reduced by additional tax credits or reliefs such as health expenses.
Revenue has also given assurances that if any income tax and USC liabilities remain following the allocation of unused credits, it will work with its customers to collect the outstanding liabilities and a number of flexible arrangements may be entered into, including the collection without interest over an extended period of time for 4 years beginning in 2022. It is also understood that Revenue are facilitating employers who wish to pay the tax liabilities of their employees where such income tax and USC liabilities arise from the scheme.
Revenue made a Preliminary End of Year Statement available to all employees from 15 January 2021, including those who were in receipt of the TWSS. The Preliminary End of Year Statement includes information relating to an employee’s income received, including pensions and income from the Department of Social Protection, as well as their tax credit entitlements. For the tax year 2020, the Statement also includes information on the amounts of TWSS payments, if any, received by each employee. In addition, the Statement provides employees with a preliminary calculation of the income tax and USC position for 2020 and indicates whether their tax position is balanced, underpaid or overpaid for the year.
Upon viewing the Preliminary End of Year Statement through myAccount, which is Revenue’s secure online facility for individual taxpayer services, employees have an opportunity to complete their income tax return for 2020, declaring any additional income and claiming any additional tax credits due, for example qualifying health expenses, to arrive at their final liability for 2020.
When a liability is finalised, individuals may opt to fully or partially pay any income tax and USC liability through the Payments/Repayments facility in myAccount. Where individuals do not opt to fully or partially pay, Revenue will collect the liability by reducing their tax credits over 4 years, interest free. The reduction of tax credits will start in January 2022.
Finally, the Preliminary End of Year Statement sets out a provisional tax position for 2020, based on information available on Revenue records, including any Temporary Wage Subsidy Scheme (TWSS) payments reported by the individual’s employer. Revenue published provisional statistics in relation to the preliminary end of year tax position for all PAYE taxpayers for the year 2020, on 14 January 2021 which is available to view on Revenue’s website:
https://www.revenue.ie/en/corporate/documents/statistics/registrations/paye-preliminary-eoy-statements.pdf .
51. Deputy Marc Ó Cathasaigh asked the Minister for Finance the level of oversight held by his Department of the climate and development funds managed by the World Bank to which Ireland is a donor; the way in which the funding is being used; the frequency and depth of reports provided to his Department in relation to the projects and programmes supported by those funds; and if he will make a statement on the matter. [6213/21]
Amharc ar fhreagraI would like to thank the Deputy for his question and the opportunity it affords me to outline the World Bank’s mission and Ireland’s contribution in shaping, influencing and supporting this important work.
At the outset, I think it may be useful for me to provide clarification in respect of the Deputy’s reference to climate and development funds managed by the World Bank. While the Institution applies a climate lens to all of its policies and operations, its primary goals are to end extreme poverty and promote shared prosperity. It recognises the link between poverty/prosperity and climate and the potential for climate change to push much more of the world's population into poverty by 2030. The World Bank has therefore enjoined the fight against climate change and its Climate Change Action Plan 2021-2025 seeks to mobilise $200 billion in support of developing countries to take climate action during the course of its lifetime. A summary of this plan’s ambition, is available at http://pubdocs.worldbank.org/en/368601543772742074/2025-Targets-to-Step-Up-Climate-Action.pdf . The Bank also uses the true cost of carbon in all its projects. Therefore, while the funds the World Bank manages are not dedicated ‘climate’ funds, as I will outline below, climate considerations significantly influence how the Bank targets it’s resources.
As the Deputy will be aware, the World Bank consists of five separate entities. The International Bank for Reconstruction and Development (IBRD) provides loans, credit, and grants to low to middle income countries while the International Development Association (IDA) provides low or no-interest loans and grants to low-income countries. The other parts of the World Bank include: (i) the International Finance Corporation (IFC) which provides investment, advice, and asset management to companies and governments; (ii) the Multilateral Investment Guarantee Agency (MIGA) which insures lenders and investors against political risk such as war; and (iii) the International Centre for the Settlement of Investment Disputes (ICSID) which settles investment disputes between investors and countries.
Ireland is a donor to IDA, the largest sources of assistance for the world’s 74 poorest countries (39 of which are in Africa). Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing zero to low-interest loans and grants for programmes that boost economic growth, reduce inequalities, and improve people’s living conditions. Since its establishment in 1960, IDA has provided $422 billion for investments in 114 countries. IDA is a multi-issue institution, supporting a range of development activities (including climate change) that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA-financed operations address primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms. The World Bank Group publishes details of all projects and operations, including associated documentation, on their website - https://projects.worldbank.org/ .
IDA’s policy framework is reviewed by its members every three years during the course of the “replenishment process” when donor members pledge financial support to the institution. Officials from my Department represent Ireland at these meetings in order to articulate Ireland’s development priorities and ensure that they are reflected in IDA’s policy commitments. For the most recent replenishment, IDA19, members agreed on five special themes for IDA19: climate change; fragility, conflict and violence; gender; governance and institutions; and jobs and economic transformation. IDA19 also incorporates four cross-cutting issues: debt, disability, human capital, and technology. In 2019, Ireland pledged approx. €102m to this replenishment (IDA19), an increase on the €90m commitment to the previous replenishment (IDA18) in 2016.
Aside from IDA progress updates furnished during the course of the formal plenary Spring and Annual Meetings, Mid-Term Review (MTR) meetings are held as part of the formal replenishment process. During the MTR, members review progress on policy commitments and identify any mid-course corrections or adjustments required. My Officials represent me at this event and, in collaboration with other Donor Governor Representatives, rigorously monitor and scrutinise progress against stated objectives across all policy and governance areas. These discussions, which are held over a number of days, provide further opportunity for IDA Donors to engage with Senior Management on the Bank’s performance and on programme delivery.
To support these discussions, a report on the implementation of the replenishment is provided in advance of the meetings, identifying emerging challenges and lessons learned. Much of this reporting is informed by IDA’s Results Measurement System (IDA RMS). Introduced in 2002, the IDA RMS is a key reporting and accountability tool for tracking progress and reporting results achieved by IDA during each replenishment cycle. The IDA RMS provides a snapshot of country-level, long-term development outcomes; development results in countries supported by IDA operations across different sectors; and IDA’s organisational and operational effectiveness. Annual reports on the IDA RMS are published on the IDA website - https://ida.worldbank.org/results/rms.
The IDA RMS is supplemented by other tools to provide a more comprehensive picture of IDA’s activities and impact, including the work conducted by the World Bank’s Independent Evaluation Group (IEG). The IEG Annual Report on the Results and Performance of the World Bank Group provides analysis of how the different institutions deliver on key goals and more detailed evidence on the performance of country programmes and projects. The Annual Report is available on the World Bank IEG website - https://ieg.worldbankgroup.org/evaluations/rap2020. To assist external oversight, the IEG also produces ‘Implementation Status and Results Reports’ which provide regularly updated information on progress directly from individual projects under implementation and ‘Implementation Completion and Results Reports’ which record achievements against a project’s development objectives.
These toolsets and platforms provide important information on the value and efficacy of Ireland’s contribution to the World Bank. These insights not only inform Ireland’s ongoing engagement with the Bank but influence and guide analysis and decisions regarding further investment.
Finally, I would like to make the Deputy aware that Ireland also provides funding to a number of separate World Bank Trust Funds including:
- Least Developed Countries Fund (LDCF)
- Blue Economy in the Caribbean
- International Finance Corporation (IFC) Facility for Investment Climate Advisory Services (FIAS
- Adaptation Fund (AF)
- Global Environment Facility (GEF)
However as these are variously administered by the Department of Foreign Affairs and the Department of Environment, Climate and Communications as opposed to my Department, I do not propose to comment on Ireland’s oversight of these funds.
52. Deputy Marc Ó Cathasaigh asked the Minister for Finance if his Department’s new statement of strategy will support the implementation of the sustainable development goals; if specific goals and sub-targets have been identified as being particularly relevant to his Department's work; and if he will make a statement on the matter. [6216/21]
Amharc ar fhreagra53. Deputy Marc Ó Cathasaigh asked the Minister for Finance the policies and plans through which his Department will be working towards the achievement of the specific sustainable development goals targets that fall under the aegis of his Department; and if he will make a statement on the matter. [6221/21]
Amharc ar fhreagraI propose to take Questions Nos. 52 and 53 together.
As the Deputy may be aware, in September 2015, 193 UN Member Countries including Ireland adopted the Sustainable Development Goals (SDGs) which consist of 169 targets around the 17 high level goals. The SDGs are a global blueprint for collective progress to a more prosperous and sustainable world by 2030. The SDGs are applicable to all countries, developed and developing, and action is required for their implementation both domestically and internationally.
Ireland is committed to implementing the SDGs, and published its first SDG National Implementation Plan 2018-2020 in July 2018. While the Department of Environment, Climate and Communications has lead responsibility for promoting and overseeing the coherent implementation of the Sustainable Development Goals (SDGs), the whole-of-Government approach to implementation of the SDGs means all Ministers are responsible for implementing the SDGs related to their functions. I have appended in tabular form the goals and sub-targets for which my Department has been assigned responsibility.
As the Deputy will note, the targets assigned to the Department of Finance as either lead or stakeholder extend across a significant range of its business and activities ranging from promoting inclusive economic growth to building partnerships for sustainable development. My Department has published these obligations at https://www.gov.ie/en/publication/032fa-sustainable-development-goals/. While there may be some review of assignment changes in the next National Implementation Plan, significant change is not anticipated.
My Department expects to shortly publish it’s new Statement of Strategy 2021-2023 which shall outline the role the Department of Finance will play in the delivery of the Programme for Government’s targets and priorities. I can confirm that the new Statement is informed and guided by the Department’s commitment to Ireland’s National Implementation Plan which implements the UN SDGs. Acknowledgement of SDG commitments within Statements of Strategy is not only in line with actions championed in the National Implementation Plan but is also an important further step in mainstreaming the SDGs into relevant policies. The Statement of Strategy is critical in the delivery of policy objectives insofar as it provides a framework to translate such objectives into policies and operational business plans designed to achieve implementation. My Department's obligations in respect of the achievement of SDGs have therefore been embedded within the fabric of how it does its business . It is my hope that these steps towards enhanced policy coherence, alignment and mainstreaming of SDGs into policy areas will contribute to an accelerated progression towards SDG implementation.
As the Deputy may be aware, delivery on the SDGs is underpinned by an implementation and reporting process. Given the broad scope and cross-cutting nature of the SDGs, strong and effective governance arrangements which are essential to ensuring high-level engagement with the 2030 Agenda and effective interdepartmental cooperation on the implementation of the Goals, have been put in place. A Senior Officials Group (SOG) has been established to co-ordinate and monitor SDG implementation and to report, as required, to Government. The SOG is chaired by the Department of the Taoiseach. To further support the work of the SOG, an Interdepartmental SDG Working Group was established, comprised of representatives from all Departments with responsibilities for the SDGs. To accentuate the all-of-Government approach and ensure policy coherence, my Department is supportive and fully engages with this SDG governance architecture.
My Department also continues to participate in SDG Stakeholders Forums. These events provide an opportunity to engage with stakeholders and civil society groups on an ongoing basis in relation to SDG implementation. These are all important channels of reporting and monitoring SDG progress. The convening of such fora have been understandably curtailed by the pandemic, but will no doubt be reactivated when circumstances permit.
Internationally, the UN High-level Political Forum (HLPF) is responsible for the follow-up and review of the 2030 Agenda at the global level. The HLPF meets annually and features inputs from national governments, intergovernmental bodies, relevant UN agencies, civil society and other stakeholders.
Countries are encouraged to review implementation of the SDGs regularly and present Voluntary National Reviews (VNR) at the HLPF. Ireland presented its first VNR at the HLPF in July 2018. Having input into the first VNR , I expect my Department to be an active contributor in the next National Review in 2022.
The Deputy may also be aware that, as of 2020, the EU Semester process of Economic governance and coordination has a new focus on Green and Sustainable issues. This new focus takes account of the European Green Deal as Europe’s new growth strategy, and incorporates the UN’s Sustainable Development Goals into all stages of the process. Progress towards achieving the UN SDGs are monitored within this process using:
- The Country Report for each Member State which contains data setting out the progress in each Member State across the 17 SDGs towards achieving these Goals by 2030, and
- Each Member State’s National Reform Programme assesses performance in implementing the UN SDGs.
These documents are made publicly available as soon as they are published.
ANNEX 1 _Department of Finance - Sustainable Development Goals and Targets
54. Deputy Pearse Doherty asked the Minister for Finance the number of complaints submitted to the Financial Services and Pensions Ombudsman which are yet to be allocated to a complaint handler; and if he will make a statement on the matter. [6229/21]
Amharc ar fhreagra55. Deputy Pearse Doherty asked the Minister for Finance the number of complaints submitted to the Financial Services and Pensions Ombudsman which are yet to be allocated to a complaint handler disaggregated by the number of weeks since they were first submitted with intervals of one week. [6230/21]
Amharc ar fhreagra56. Deputy Pearse Doherty asked the Minister for Finance the number of complaints submitted to the Financial Services and Pensions Ombudsman which remain unresolved disaggregated by the number of months since they were first submitted with intervals of one month. [6231/21]
Amharc ar fhreagraI propose to take Questions Nos. 54, 55 and 56 together.
Firstly, I must point out that the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of his statutory functions. I have no role in the day to day workings of the office or in the decisions which he takes.
The FSPO has informed me that it has improved the quality and speed of its service considerably over the last year. All complaints now received by the FSPO are subject to an initial review within 5 working days of receipt. Following this initial review, complaints that appear to have been submitted accompanied by all of the required documentation, and where the Complainant has exhausted the provider’s Internal Dispute Resolution mechanism in advance, are assigned within 2 business days of the initial assessment to an officer to conduct a verification review. These files are “Ready for Review”. There are currently 0 (no) such files within the FSPO awaiting assignment to an officer at 2 February 2021.
The FSPO is currently receiving approximately 450 complaints per month. In some cases the initial review indicates that further information is required. This may be required in order to conduct a detailed assessment, to establish for example, whether the complainant has made the complaint to the Financial Service Provider (FSP), or to the correct FSP, or whether the complaint falls within the jurisdiction of the FSPO investigate. Where this is established the initial assessment team will write to the complainant to outline the required information. The complaint will then be assigned for detailed assessment depending on the capacity of the team. There are currently 548 files at this Assessment stage awaiting assignment to an officer to progress.
Of the 548 complaints awaiting assignment;
- The FSPO is awaiting documentation from the parties in 308 complaints,
- The FSPO has issued reminders to submit required information in an additional 101 complaints,
- The remaining 139 complaints are awaiting detailed review.
The number of complaints (548) awaiting assignment by weeks since being submitted to the FSPO are as follows:-
|
Weeks since receipt of complaint |
Awaiting Documentation from the Parties |
Reminder issued due to non-response |
Awaiting Assessment on Assignment |
|
20 weeks |
1 |
1 |
|
|
19 weeks |
1 |
2 |
|
|
18 weeks |
|
1 |
|
|
17 weeks |
|
3 |
5 |
|
16 weeks |
5 |
2 |
5 |
|
15 weeks |
3 |
3 |
|
|
14 weeks |
3 |
1 |
5 |
|
13 weeks |
7 |
9 |
4 |
|
12 weeks |
6 |
9 |
2 |
|
11 weeks |
16 |
16 |
4 |
|
10 weeks |
15 |
21 |
6 |
|
9 weeks |
17 |
9 |
7 |
|
8 weeks |
23 |
11 |
13 |
|
7 weeks |
25 |
7 |
7 |
|
6 weeks |
5 |
3 |
4 |
|
5 weeks |
12 |
|
2 |
|
4 weeks |
23 |
3 |
21 |
|
3 weeks |
31 |
|
11 |
|
2 weeks |
41 |
|
13 |
|
1 week |
55 |
|
16 |
|
>1 week |
19 |
|
14 |
|
Total |
308 |
101 |
139 |
The FSPO has also informed me that there are 4607 complaints open (not yet resolved). The table below sets out the on-hand complaints data by year and month received.
I am advised by the FSPO has that the data contained in this response is extracted from a live database and therefore depicts complaint information at a specific moment in time. Data in this database is subject to ongoing verification and data categorisation as the understanding of the specific complaint is developed. The data is correct as of 2 February 2021.
