Written Answers Nos. 255-279
255. Deputy Jennifer Murnane O'Connor asked the Minister for Transport if a driver theory test will be made available for persons that must complete the test in order to attend an institution of education under current restrictions, such as the case of a person (details supplied); and if he will make a statement on the matter. [13355/21]
Amharc ar fhreagraThe Driver Theory Test has not been deemed to be an essential service under Level 5 restrictions. The service will remain closed while level 5 restrictions remain in place. No exceptions will be made regardless of the circumstances. While I fully appreciate the inconvenience this poses, I am sure you will agree with me that the limiting of the spread of the virus and the safeguarding of public health takes priority.
While the service remains closed at present, a plan is being progressed to increase capacity from an average pre Covid19 level of 15,000 appointments up to 50,000 appointments per calendar month. This will help manage the backlog of customers and shorten waiting times. This increased capacity is expected to be made available from mid-April 2021.
In addition to the increased capacity initiative, the RSA is working to deliver an online driver theory test service. The online service has been trialled on a pilot basis for those taking a theory test for trucks and buses and is now being evaluated with a view to extending the online service type to all test types during 2021.
256. Deputy James Lawless asked the Minister for Transport if consideration will be given to a scheme encouraging farmers and other rural land owners to cultivate or otherwise encourage a section of road frontage on their lands for pedestrian use in order to facilitate safer passage of those walking or running in the countryside particularly in view of current restrictions; and if he will make a statement on the matter. [13412/21]
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. While my Department provides grant support to assist local authorities with the maintenance and renewal of regional and local roads, consideration of a scheme to utilize a section of road frontage on private land for pedestrian use would be a matter for each local authority in terms of assessing what would be feasible and what arrangements would have to be made with individual landowners.
In the context of funding for such works, local authorities in the Greater Dublin Area (GDA) along with regional cities have been eligible for some years for Active Travel funding from the NTA. However In August 2020 over €30 million of Stimulus monies was allocated directly by the Department to other local authorities. In 2021 a new arrangement has been put in place whereby the NTA will provide monies to these other authorities for active travel projects. This new arrangement which comprises of a fund of €50 million was announced by the Minister in December 2020. While the NTA has already announced detailed allocations for 2021 for active travel projects in local authorities in the Greater Dublin Area along with regional cities it has not yet announced the details of the €50 million funding package which will be available to the other local authorities (non city and non GDA) for active travel works in 2021.
257. Deputy Darren O'Rourke asked the Minister for Transport the supports in place for bus and coach operators (details supplied); and if he will make a statement on the matter. [13413/21]
Amharc ar fhreagraBoth the National Transport Authority (NTA) and my Department have been engaging directly with commercial bus operators throughout the Covid-19 Emergency. The public transport system in Ireland has played an essential service role over the course of the pandemic, especially in carrying essential workers and others making necessary journeys.
Several targeted Government Decisions made throughout the crisis, in addition to general supports such as the wage subsidy scheme, have provided much needed support to the sector, particularly the decisions to:
- substantially increase the 2020 budget for the existing PSO system;
- introduce temporary financial support for certain licensed services provided by commercial bus operators (CBOs) for an initial period of 6-months;
- provide a higher-than-normal provision for PSO funding in the 2021 budget due to the ongoing impact of Covid-19 on the public transport sector; and
- extend the provision of temporary funding supports for the CBOs for a further 3 months, with the option to extend monthly thereafter subject to engagement with the Department of Public Expenditure and Reform.
Prior to the Covid-19 health emergency, licensed operators operated non-subvented bus services on a commercial basis. However, due to the impact of Covid-19 on passenger numbers and the associated drop in fare revenue, these services were no longer commercially viable. As such, on the 25th June 2020 Government decided to introduce new temporary financial support for certain licensed services provided by commercial bus operators to ensure the continued operation of these essential services. These temporary supports were initially introduced for a period of 6-months, with a view to protecting capacity across the public transport sector throughout the crisis. The NTA on behalf of my Department, has entered into contracts with the licensed bus sector to provide funding for routes where a clear public interest justification supports such intervention.
As it remains the case that commercial bus operators are still under severe financial distress due to the fall in passenger numbers and associated drop in fare revenue as a result of Covid-19, on the 26th of January 2021, Government decided to extend the temporary funding supports to the licensed bus sector for a further period of 3 months, with an option to extend contracts on a monthly basis thereafter.
These supports are in addition to the suite of other financial support measures that the Government has introduced to help mitigate the impact of Covid-19, which includes the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment extended to end June 2021, the COVID-19 Restrictions Support Scheme (CRSS), grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow.
The Department of Business, Enterprise and Innovation has also set up on online tool to help support Irish start-ups and SMEs to navigate the range of Government supports and identify which support may be most relevant to their business.
258. Deputy Paul McAuliffe asked the Minister for Transport his plans to extend the ten-year rule for taxi drivers with vehicles first registered in 2012 given the severe impact of Covid-19 on the industry; and if he will make a statement on the matter. [13417/21]
Amharc ar fhreagraThe regulation of the small public service vehicle (SPSV) sector, including age limits for vehicles, is a matter for the independent regulator, the National Transport Authority (NTA), under the provisions of the Taxi Regulation Act 2013.
Given the role of the NTA as regulator, I have referred your question to the Authority for direct reply to you. Please advise my private office if you do not receive a response within 10 working days.
259. Deputy Emer Higgins asked the Minister for Transport the way in which the recently adopted European Union Aviation Safety Agency rules in relation to flying drones will impact on the older regulations; and if it will be possible to retrospectively classify drones with a CE class mark. [13418/21]
Amharc ar fhreagraThe recently adopted EU regulation will fully replace the existing national regulation of drones. Certain transition periods are included within the new EU regulation including the continuing use of drones that do not carry a CE marking.
Commission Implementing Regulation (EU) 2019/947 lays down detailed provisions for the operation of unmanned aircraft systems as well as for personnel, including remote pilots and organisations involved in those operations. Regulation (EU) 2019/947 became applicable on 31 December 2020. It allows for a transition period of two years for the phasing in of some of the technical requirements, such as the design requirements set out in Commission Delegated Regulation (EU) 2019/945.
Under the EU Regulatory regime, drone operations are categorised under three broad types – Open, Specific and Certified, with different regulatory considerations applied across each operation type. Regulation (EU) 2019/947 sets operational rules that apply to both professional drone operators and those flying drones for leisure. These rules not only address safety but also contain important building blocks to mitigate drone related security risks. At the end of 2020, the Irish Aviation Authority (IAA) launched a new registration system for drone operators to comply with Regulation (EU) 2019/947 which, as of 31 December 2020, requires any drone over 250g or a drone with a camera or sensor to be registered with national authorities. Other mitigation measures such as remote identification and definition of geographical zones are being phased in over the next 2 years (1 January 2022).
The Small Unmanned Aircraft (Drones) and Rockets Order 2015 (SI 563 of 2015) still applies except where replaced by the new EU regulations. (For example the provisions related to rockets and offences still apply).
There is scope within the regulation for drone manufacturers to supply retrofit packages for drones already on the market, bringing the drones to the existing CE class mark. It is unlikely, however, the manufacturers will do this to any great extent.
The use of existing drones that are not CE marked will possibly be extended to 2023 due to delays in the publication of the harmonised standards for applying the CE marking to drones. A decision on this, to be taken at a European level, is expected in mid-2021.
260. Deputy John Lahart asked the Minister for Transport if he will allow stakeholders such as local representative groups to have an input into both the terms of reference and the liaison with the appointed consultants in relation to the feasibility study for extending the MetroLink to south-west County Dublin in keeping with the Aarhus Convention; and if he will make a statement on the matter. [13423/21]
Amharc ar fhreagra261. Deputy John Lahart asked the Minister for Transport if the feasibility study on extending the MetroLink to south-west County Dublin will focus on a continuation of the link from Beechwood to Knocklyon as opposed to a standalone metro line on the Knocklyon corridor as is proposed in the terms of reference; and if he will make a statement on the matter. [13424/21]
Amharc ar fhreagraI propose to take Questions Nos. 260 and 261 together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including MetroLink.
The Deputy is aware that the study refers to forms part of the statutory review of the Transport Strategy for the Greater Dublin Area . An initial public consultation period on the review ended in January and I understand a second public consultation period will be held later in the year.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
262. Deputy Martin Browne asked the Minister for Transport if local community groups will be invited to participate in the upcoming strategic rail review; and if an estimated date for the start of this review will be provided. [13451/21]
Amharc ar fhreagraI can inform the Deputy that my Department is co-operating with the Department for Infrastructure (Northern Ireland) and other relevant stakeholders in order to develop terms of reference for a strategic rail review of the network on the island of Ireland.
It is certainly my intention that any finalised terms of reference will provide for a public engagement process to allow for groups such as those you mentioned make their views known.
For the Deputy's information, the ambition remains to have the initial phase of work completed to allow for the launch of the tender process by end Q1 and the study to begin in due course.
264. Deputy Paul Kehoe asked the Minister for Transport the amount spent across his Department on advertising in relation to Covid-19 by month and by media outlet (details supplied) from 1 March 2020 to 1 March 2021. [13569/21]
Amharc ar fhreagraMy Department has incurred no expenditure matching the description outlined by the Deputy.
Since the onset of the COVID-19 pandemic, the Department of Transport has worked as part of a cross Government Communications Group on a range of targeted public information campaigns. This group, led by the Department of an Taoiseach, is tasked with providing a coordinated and whole of government response to the pandemic and as such, leads on the type of campaign mentioned in the Deputy's Question.
265. Deputy Catherine Murphy asked the Minister for Finance if he has engaged with the Central Bank in respect of a fine issued to a broker regarding the breaching of market rules in relation to a transaction; if his attention has been drawn to a case (details supplied); and why the Office of the Director of Corporate Enforcement is not now investigating following the issuing of a fine against the broker by the Central Bank of Ireland. [13172/21]
Amharc ar fhreagra291. Deputy Catherine Murphy asked the Minister for Finance if he has engaged with the Central Bank in respect of a fine issued to a broker regarding the breaching of market rules in relation to a transaction; and if the case has been escalated to the Garda National Economic Crime Bureau and or Office of the Director of Corporate Enforcement. [13170/21]
Amharc ar fhreagraI propose to take Questions Nos. 265 and 291 together.
I have outlined on more than one occasion my views and those of Government regarding the expectation that we have in relation to the conduct of the financial services sector and senior people within those organisations that are in a position of trust. The matter is an evolving situation, but at this point I note that a number of significant actions have been taken by the Regulator, by the Board of the NTMA in relation to the State's dealing with the firm in question and I am also aware of actions that the firm has now recently taken.
The Central Bank of Ireland is the independent regulator of financial service providers in Ireland. The importance of an independent regulator is widely recognised. As such they are the ones that determine what measures or actions need to be taken in relation to any potential or actual wrongdoing by regulated financial service providers. This responsibility includes the question of whether to refer any matters to other public authorities that may have a remit to investigate such matters.
Finally, it is also important to underline that Ireland has a robust and comprehensive regulatory regime, operated by an independent regulator, but that my Department continues to keep matters under review in terms of the overall legislative and policy framework. In that context, my Department is in regular contact with the Central Bank of Ireland on such matters.
266. Deputy Alan Dillon asked the Minister for Finance his views on the competitive nature of retail banking; his further views on the impact of the closure of a bank and the branches of another bank (details supplied) on banking in Ireland; and if he will make a statement on the matter. [12477/21]
Amharc ar fhreagraThe Government wants to ensure that the banking and financial system is one which will effectively contribute and support economic growth and employment. Competition in the sector is vital to ensure that businesses and consumers have a range of banking options available when using financial services and accessing credit.
The withdrawal of Ulster Bank is regrettable for its customers and staff and is an unfavourable development for competition in the banking market. It is also a reflection of the wider challenges banking is facing, not only in Ireland but also abroad. The impact of Covid-19, coming on top of weak enough economic growth in Europe and America, has already been seen in European banking with consolidation and mergers in other European markets.
In Ireland, our banks were amongst the worst hit by the previous crisis. Since then, overall conditions for banks have been difficult despite Ireland’s strong recovery from the previous crisis. These conditions include the long period of low, now negative, interest rates that have severely depressed margins, having to continue to deal with the bad debt legacy of the last crisis, low credit demand, both in mortgages and SME lending and the relatively small size of the Irish market.
In addition, there are major changes driving the consolidation elsewhere. The innovations introduced by fintechs and their increasing market penetration are reducing traffic into the branch networks run by traditional banks. Competing with lean and nimble online firms while coping with high cost structures is posing a considerable challenge for the traditional full service sector and we are seeing cutbacks in these entities in terms of staff, branches and initiatives to move their customers online.
The announcement by Bank of Ireland last week that it is to close 103 branches in Ireland – 15 of which are in the north - is further evidence of the impact technology is having on banking and the way the public interacts with banks. However, it is accepted that many people will still need or want to carry out their banking activities in person and it is a welcome development that Bank of Ireland is now entering into a new partnership with An Post that will allow personal and business customers to use their local post office for a range of banking services, including cash withdrawal and lodgements.
NatWest is in early stage discussions with PTSB and other strategic banking counterparties about their potential interest in certain retail and SME assets, liabilities and operations. A Memorandum of Understanding which has been signed with AIB regarding certain corporate and commercial loans, signals a potentially important development for the Irish banking sector. While these are primarily commercial negotiations, the Government is supportive of trying to bring about an outcome that is good for both AIB and PTSB, but more importantly for Ulster Bank’s customers, staff and the Irish economy generally.
267. Deputy Cian O'Callaghan asked the Minister for Finance the estimated cost of the standard VAT rate being reduced from 23% to 21% for a six month period from 1 September 2020 to 28 February 2021; if an analysis of this policy decision is being carried out; and if he will make a statement on the matter. [12512/21]
Amharc ar fhreagraThe temporary reduction in the standard rate of VAT to 21% announced in the July Stimulus Package was projected to cost €440m.
I am advised by Revenue that it is not yet possible to calculate the actual cost foregone as VAT tax returns, which are usually filed by traders every two months, do not report collection by VAT rate.
The Revenue Ready Reckoner published at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf contains, on page 28, the most current estimates of the likely cost foregone from various changes to VAT rates or extensions to the current rates. These are the best available estimates and are sensitive to change due to ongoing impacts of the COVID-19 pandemic.
268. Deputy Denis Naughten asked the Minister for Finance if he will introduce legislation to allow banks to differentiate between customers in different sectors specifically to exempt solicitor client accounts from negative interest rate charges; the discussions he has had with the Governor of the Central Bank on the issue; and if he will make a statement on the matter. [12525/21]
Amharc ar fhreagra298. Deputy Éamon Ó Cuív asked the Minister for Finance if his Department had discussions with banks (details supplied) or with the Central Bank regarding their proposals to charge negative interest rates on transaction moneys held by solicitors in clients’ accounts; if so, the result of these discussions; and if he will make a statement on the matter. [13308/21]
Amharc ar fhreagra300. Deputy John Brady asked the Minister for Finance if his attention has been drawn to the fact that banks (details supplied) have given notice that negative interest rates charges are to apply to moneys held in the solicitors' client accounts; the measures he plans to take regarding same; and if he will make a statement on the matter. [13333/21]
Amharc ar fhreagraI propose to take Questions Nos. 268, 298 and 300 together.
The application of interest rate charges is solely a commercial matter for the board and management of each bank. I have no role in the day to day operations of any bank operating within the State including banks in which the State has a shareholding. Decisions in relation to commercial matters are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
Deposit balances and liquidity in general has risen significantly across the banking system in Europe in recent years as the ECB has continued to provide additional funds through their asset purchase schemes and long term refinancing operations. This has been further exacerbated by the COVID-19 pandemic as households continue to stay at home and save and businesses defer investment decisions.
This excess liquidity which has grown significantly in the European system has to go somewhere and in the main it gets placed back on deposit with the ECB who charge the banks -0.50%. The application of negative deposit rates by the ECB has resulted in European banks incurring a consequent cost on deposit accounts. The Irish banks are impacted in a similar way to their European counterparts. The banks across Europe have looked to pass some of the costs associated with negative rates to deposit holders with larger balances. The Irish banks are no different in this regard.
In passing on some of these costs, it is important to note that banks cannot differentiate between customers in different sectors and for that reason the approach taken is to apply charges based on the size of the deposit balance.
I have no plans to introduce legislation to allow banks to differentiate between customers in different sectors. Firstly, it does not appear to me to be either fair or equitable to distinguish between different classes of customers with some benefiting from an exemption to negative interest rates and others not benefiting. In addition, the unintended consequences of such a decision need to be considered. Banks are operating in a challenging business and economic environment and may choose not offer services to customers if it is not possible for to pass on some of the costs associated with the delivery of those services to these customers.
269. Deputy Ged Nash asked the Minister for Finance if there is a citation in the relationship framework agreement between the Minister and a bank (details supplied) that prohibits or in any way prevents him from meeting with the bank to discuss and negotiate on a change to that agreement; and if he will make a statement on the matter. [12617/21]
Amharc ar fhreagraAs the Deputy is aware and as set out in the Relationship Framework for PTSB, due to its systemic importance to the Irish financial system, the bank received significant support from the State in the financial crisis.
This support led to the State becoming the majority shareholder in PTSB with the approval of the European Commission. This approval was subject to the Minister and the Bank entering into the Relationship Framework on terms approved by the European Commission. One of the reasons for this was to ensure that the Minister’s shareholding did not result in breaches of competition law rules.
Critically, and as set out in the Relationship Framework, any amendments to, or revocation or replacement of, the Relationship Framework must be made following consultation with PTSB and upon the instruction, or with the agreement, of the European Commission.
As is clearly set out in the Relationship Framework, the board of PTSB has full responsibility and authority for all of the operations of the bank in accordance with its legal, fiduciary, and regulatory obligations. The Relationship Framework further provides for safeguards as to the separate management of each of the State’s interests in Irish credit institutions (including in PTSB) in order to ensure that those interests, and the management of those interests, do not lead to a prevention, restriction or distortion of competition in contravention of merger control or competition law rules.
It is therefore the case that any proposed amendment to the Relationship Framework must not only be in accordance with the regulatory requirements under which PTSB operates, the State Agreements referred to in the Relationship Framework and the law, the proposed amendments must also be approved by the European Commission following consultation with PTSB.
270. Deputy Ged Nash asked the Minister for Finance if there is a citation in the relationship framework agreement between the Minister and a bank (details supplied) that prohibits or in any way prevents him from meeting with the bank to discuss and negotiate on a change to that agreement; and if he will make a statement on the matter. [12618/21]
Amharc ar fhreagraAs the Deputy is aware and as set out in the Relationship Framework for Bank of Ireland, due to its systemic importance to the Irish financial system, the bank received significant support from the State in the financial crisis.
This support led to the State becoming a significant shareholder in Bank of Ireland with the approval of the European Commission. This approval was subject to the Minister and the Bank entering into the Relationship Framework on terms approved by the European Commission. One of the reasons for this was to ensure that the Minister’s shareholding did not result in breaches of competition law rules.
Critically, and as set out in the Relationship Framework, any amendments to, or revocation or replacement of, the Relationship Framework must be made following consultation with Bank of Ireland and upon the instruction, or with the agreement, of the European Commission.
As is clearly set out in the Relationship Framework, the board of Bank of Ireland has full responsibility and authority for all of the operations of the bank in accordance with its legal, fiduciary, and regulatory obligations. The Relationship Framework further provides for safeguards as to the separate management of each of the State’s interests in Irish credit institutions in order to ensure that those interests, and the management of those interests, do not lead to a prevention, restriction or distortion of competition in contravention of merger control or competition law rules.
It is therefore the case that any proposed amendment to the Relationship Framework must not only be in accordance with the regulatory requirements under which Bank of Ireland operates, the State Agreements referred to in the Relationship Framework and the law, the proposed amendments must also be approved by the European Commission following consultation with Bank of Ireland.
271. Deputy Ged Nash asked the Minister for Finance the amount forgone to the Exchequer through past losses written-off against future tax liabilities by each of the pillar banks operating in the State (details supplied) from 2016 to 2020, in tabular form; and if he will make a statement on the matter. [12619/21]
Amharc ar fhreagraAs the Deputy is aware, loss relief for corporation tax is a long-standing feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.
In relation to the Deputy’s query, section 851A of the Taxes Consolidation Act, 1997 precludes Revenue officials from directly or indirectly disclosing taxpayer information to third parties unless this is specifically provided for in legislation. Therefore, neither Revenue nor I can comment on the tax affairs of any individual or company. However, as the State is the largest shareholder in PTSB, AIB and Bank of Ireland (owning 75%, 71% and 14% respectively of each bank), the Department of Finance monitors the overall strategic direction of these banks and develops and executes plans to optimise the value of the State’s investments.
In addition, Deputies may recall that in 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach on the subject of both bank losses and corporation tax losses more generally (see https://www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). It was further updated and re-circulated to members during the 2019 Finance Bill process. Based on the banks’ published annual reports, the technical note estimated that the value of tax losses brought forward that were utilised by the State’s three banks in 2017, 2018 and 2019 were as shown below. Data for 2016 was not included in the report and the banks’ 2020 annual reports have only recently been published and have not yet been analysed by officials.
Value of tax losses forward utilised per annual reports
|
- |
2017 |
2018 |
2019 |
|
AIB |
€137m |
€114m |
€16m |
|
Bank of Ireland (BOI) |
€84m* |
€91m |
€33m |
|
PTSB |
€12m |
€0m |
€6m |
|
Total |
€233m |
€205m |
€55m |
The annual reports state that the banks have tax losses in Ireland and the United Kingdom (UK); although the above figures include utilisation of UK losses, they are understood to only represent only a small portion of the total. *Also, BOI executed an intragroup transaction in 2017 for the purpose of capital optimisation which reduced the quantum of tax losses utilised in the year to €17 million. Accordingly, the amount of tax losses utilised in 2016 of €84 million has been used in the above table as being representative of a more typical year.
It should also be noted that these banks do currently pay Irish corporation tax, as the tax losses do not shelter profits made in all their corporate entities in Ireland. At an Oireachtas committee meeting in 2018, Bank of Ireland indicated that it paid corporation tax of €31 million in Ireland in 2017. AIB also disclosed that it paid €58m in corporation tax in Ireland over the two years 2016/7, which would be an average of €29m each year. According to the banks’ 2019 financial statements, Bank of Ireland, AIB and PTSB incurred current year corporation tax charges in Ireland totalling €70 million. These corporation tax payments are in addition to the bank levy, which raised €295 million over the years 2017 to 2019, as shown below.
|
Bank levy |
2017 |
2018 |
2019 |
|
AIB |
€49m |
€49m |
€35m |
|
BOI |
€29m |
€29m |
€34m |
|
PTSB |
€23m |
€23m |
€24m |
|
Total |
€101m |
€101m |
€93m |
272. Deputy Ged Nash asked the Minister for Finance the amount forgone to the Exchequer through past losses written-off against future tax liabilities by all companies from 2016 to 2020; the amount written off by company size and by the number of employees, respectively, in tabular form; and if he will make a statement on the matter. [12620/21]
Amharc ar fhreagraAs the Deputy is aware, loss relief for corporation tax is a long-standing feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.
Each year, Revenue publishes detailed analyses of the previous year’s corporation tax returns and payments which includes breakdowns of corporation tax loss relief by sector (available at https://www.revenue.ie/en/corporate/information-about-revenue/research/research-reports/corporation-tax-and-international.aspx). These reports explain that, while a company must record losses claimed on their corporation tax returns, losses can only be used if there is an appropriate corporation tax liability to offset. Also, after the first year of claim, any losses and capital allowances carried forward are combined in tax returns data. Therefore, it is not possible to separately identify capital allowances and losses in the carry forward at aggregate level and the figures below for loss relief include excess capital allowances carried forward.
The amount of loss relief used in all 2016, 2017 and 2018 tax returns is as shown below. These figures include current year losses used in each year (i.e. losses incurred in the current year and offset against other sources of income) in addition to prior-year losses carried forward into that year. Revenue is currently analysing the 2019 corporation tax returns and will publish the results of this analysis later this year (the last of these returns were not due to be filed until September 2020). 2020 corporation tax returns are due to be filed up to September 2021 and Revenue will publish their analysis of these returns in 2022.
|
Revenue analysis of corporation tax loss relief |
2016 |
2017 |
2018 |
|
Loss relief used |
€14.9 bn |
€14.4 bn |
€13.4 bn |
An analysis of loss relief used on the corporation tax returns for 2018 by company size by number of employees is shown in the following table. It should be noted that this data refers to the individual companies claiming the loss relief. Where such companies form part of a larger corporate group, the overall level of related employment may be significantly larger. Similar analysis is not readily available for earlier years, but I am advised that the distribution is not expected to vary greatly from year to year.
|
Number of employees |
Number of companies availing of loss relief |
Estimated loss relief used€ bn |
|
Less than 10 |
20,733 |
7.4 |
|
11 to 49 |
4,203 |
1.8 |
|
50 to 249 |
1,034 |
1.4 |
|
250 or more |
235 |
2.8 |
|
Total |
26,205 |
13.4 |
It should also be noted that the above tables show the amount of loss relief used by companies, but the value of this loss relief depends on whether the losses were incurred in the course of a trade that is taxable at 12.5% or 25%. (The profits of an ‘excepted trade’ are chargeable to corporation tax at the 25% rate. An ‘excepted trade includes’: (i) subject to exclusions, a trade of dealing in or developing land; (ii) a trade involving working scheduled minerals, mineral compounds or mineral substances; and (iii) a trade relating to certain petroleum activities).
I am advised by Revenue that the value of loss relief used for all years up to 2018, the latest year available, is published at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. This includes the cost associated with current year losses used and the cost of claims by self-employed taxpayers registered for income tax (Revenue advises me that over 90% of the cost shown for 2018 is associated with companies).
273. Deputy Duncan Smith asked the Minister for Finance the amount paid out under the stay and spend scheme; the amount budgeted for the scheme; and if he will make a statement on the matter. [12654/21]
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. In order to claim the Stay and Spend Tax Credit, taxpayers are required to upload a copy of their receipt(s) for qualifying expenditure to the Revenue Receipts Tracker and then make a formal claim for the tax credit when submitting their annual Income Tax Return.
To take the second part of the Deputy's question first, as I indicated on a number of occasions in response to Parliamentary Questions towards the end of last year, when the scheme was announced in late July 2020, it was tentatively estimated that it could involve an Exchequer cost of about €270 million. This was budgeted for over the two years 2021 and 2022 and was based on 2.15 million individual taxpayers fully availing of a tax credit of €125. Also, as was indicated at the time, the measure was introduced in anticipation that the economy would be on the way to being fully open, and there would be mobility across our country. We know now that this has not been the case for much of the period since the commencement of the scheme on 1 October 2020. Public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.
At the same time, since 1 October 2020, a total of 56,016 receipts have been uploaded to the Revenue Receipts Tracker, as at 4 March 2021. The related expenditure recorded on these receipts amounts to €9,207,244, and the potential tax cost is €1,841,449, assuming all such expenditure is claimed and qualifies in full for tax relief.
With regard to the Deputy's question about the amount paid out under the scheme, Revenue have advised me that when it comes to tax credits, some taxpayers will get refunds whereas some will have the credit to offset against underpayments along with a number of other credits they claim. As at 7 March 2021 a total of 8,995 claims have been included in Income Tax Returns for 2020 for the Stay and Spend credit. These claims relate to €3,206,048 of the qualifying expenditure recorded on the Revenue Receipts Tracker to date and the tax cost of same amounts to some €641,000. However, as the filing deadline for the 2020 Income Tax Return is not until 31 October 2021, information on the total number of claims and cost for the 2020 year of assessment will not be available until after the filing date and the returns have been processed. Subsequent to claims being made in respect of this new scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.
Decisions on next steps relating to the scheme have yet to be taken and I will continue to assess matters as circumstances evolve.
274. Deputy Aindrias Moynihan asked the Minister for Finance if the current rates allowed under the e-working tax relief can be increased given the current shortfall for employees in the difference between the maximum rate of employer allowed working from home allowance before tax is applicable and the e-working tax relief; and if he will make a statement on the matter. [12665/21]
Amharc ar fhreagraWhere e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers for the purposes of this practice.
This administrative practice has been in place for some time and the choice of whether to make the payment of €3.20 is at the discretion of the employer. The value of relief allowed under the Irish system is already considered sufficient to cover any legitimate additional costs incurred by workers. The level of support allowed also compares favourably internationally: at €3.20 per day up to €16 per week or €832 per annum may be paid tax free. By contrast, the weekly rate in the UK is just £6 per week or a maximum of £312 per annum.
Revenue also advise that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.
Where an employer does not pay €3.20 per day to an e-worker, employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use.
As I announced on Budget day, in addition to these existing measures, Revenue have agreed to allow broadband to qualify for this relief. This apportionment is based on the number of days the person spent working from home in year with 30% of the apportioned value accepted by Revenue as related to work in the home.
PAYE workers can claim e-working expenses by completing an Income Tax return at year end. Revenue advise that the simplest way for taxpayers to claim their e-working expenses and any other tax credit entitlements is by logging into the myAccount facility on the Revenue website.
Revenue have published detailed guidance on e-working arrangements in their Tax and Duty manual TDM 05-02-13 e-Working and Tax which may be viewed at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf
Finally, the national remote working strategy: Making Remote Work, commits the Tax Strategy Group to reviewing the current tax arrangements for remote working in respect of both employees and employers. The Tax Strategy Group will take account of the economic, financial and organisational implications arising from the experience of remote working during the pandemic, and assess the merits of further enhancements for consideration in the context of Budget 2022.
275. Deputy Niamh Smyth asked the Minister for Finance if the 20% additional tax and duty being placed on raw materials in the production of lubricants which are not the end product itself will be examined (details supplied); and if he will make a statement on the matter. [12670/21]
Amharc ar fhreagra280. Deputy Niamh Smyth asked the Minister for Finance if he will address the issues raised in correspondence (details supplied); and if he will make a statement on the matter. [12738/21]
Amharc ar fhreagra307. Deputy Pauline Tully asked the Minister for Finance the reason mineral based lubricants derived from crude oil which are being imported from the UK are subject to mineral oils taxes and carbon duties as if they were fuels or propellants; if he will introduce an immediate derogation from these taxes for traders purchasing lubricants; if so, if this derogation can be applied immediately given this is increasing raw material costs for companies such as a company (details supplied) by 20% and giving its competitors based in Northern Ireland a considerable competitive advantage which could put them out of business; and if he will make a statement on the matter. [13473/21]
Amharc ar fhreagraI propose to take Questions Nos. 275, 280 and 307 together.
The Deputy will be aware that from 1 January 2021, the UK is a 3rd country for the purposes of trade and movement of goods. This means that a range of customs formalities apply to goods moving to, from or through the United Kingdom, excluding Northern Ireland. Imports of goods from Great Britain must be declared to customs and are liable to customs duty, excise duties and VAT at import, where applicable.
Mineral Oil Tax (MOT) is an excise duty on mineral oils used as fuel in motor vehicles or for heating. There has been no change in the scope of products that are subject to MOT since 1 January 2021. The rate of MOT is composed of a carbon and non-carbon component. The carbon component is also referred to as carbon tax.
I am advised by Revenue that if the lubricants mentioned in the correspondence provided by the Deputy are for purposes other than fuel for motor vehicles or heating, MOT does not apply. As the MOT becomes payable when the Customs declaration is lodged, it is important that the product is correctly classified and that where applicable, the necessary excise and carbon tax exemption codes are entered on the Customs declaration to ensure that excise related duties are not applied to products that are not fuel for motor vehicles or for heating.
I am advised by Revenue that in relation to the business concerned, it is engaging with the business in relation to the classification of products and the procedures for applying excise and carbon tax exemption codes for the products where applicable and that engagement is ongoing.
Further information on the Mineral Oil Carbon Charge is available on Revenue’s website at: https://www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/carbon-tax/index.aspx.
276. Deputy Pearse Doherty asked the Minister for Finance the number of retail bank branch closures per year since 2010, disaggregated by bank, year and county location. [12675/21]
Amharc ar fhreagraAs the Deputy may be aware, banks are required to notify the Central Bank when they intend to close, merge or move a branch. The Central Bank has informed my officials that its focus regarding branch closures is to ensure that banks adhere to the relevant requirements in the Consumer Protection Code 2012 (the Code) and how banks communicate the closures to their customers.
Banks must ensure that they communicate in a clear and timely way with customers regarding any such changes, including the closure of branches, and in particular inform them about any alternative channels available to them to avail of banking services. Banks must also provide affected vulnerable customers with the assistance necessary to ensure that those customers can retain full access to basic financial services, albeit in many cases at another branch location.
The Code sets out important requirements to ensure that consumers are fully informed of any closures or changes in services, and have time to make alternative arrangements. Under the Code, any bank that intends to close, merge or move a branch must:
- notify the Central Bank immediately;
- provide at least two months’ notice to affected consumers to enable them to make alternative arrangements;
- ensure all business of the branch is properly completed prior to its closure, merger or move, or alternatively inform the consumer of how continuity of service will be provided; and
- notify the wider community of the closure, merger or move in the local press in advance.
When notification is received in accordance with Provision 3.12, the Central Bank engages with the banks to ensure the impact of the decision has been carefully considered across its full customer base and at the appropriate levels. The bank must ensure that its communications to customers are clear and transparent and that it seeks to assist vulnerable customers to mitigate the effect of the branch closure as much as possible.
While decisions relating to the business model of regulated firms are commercial matters for the boards of those firms, the Central Bank expects them to take a consumer-focused approach in respect of any decision that affects their customers. Any decision by a board to close bank branches must be supported by an analysis and understanding of the impact the decision will have across its customer base.
I am advised by the Central Bank that there is no requirement for it to maintain a register of branch closures per year or by county. Accordingly, it does not have a breakdown by county location but it has sourced the following information.
Data on Branch Closures 2010 – 2020
The below table provides the total number of branches closed permanently each year by the five main retail banks from 2010 to 2020 inclusive. It is important to note that this data does not include any branches that were closed in this time period, by banks who have exited the market.
|
Year |
Branch closures by the five main retail banks* |
|
2010 |
13 |
|
2011 |
8 |
|
2012 |
76 |
|
2013 |
45 |
|
2014 |
14 |
|
2015 |
17 |
|
2016 |
1 |
|
2017 |
24 |
|
2018 |
3 |
|
2019 |
8 |
|
2020 |
13 |
|
TOTAL |
222 |
*Note: The figures were provided by the five main retail banks (AIB Group, BOI, KBC, PTSB, Ulster Bank) in March 2021 and include, for example, branch mergers, closure of sub offices and closure of other locations when a tender matured. The figures have been aggregated as the Central Bank is not in a position to share individual firm specific information obtained during the course of supervision, due to supervisory confidentiality requirements.
277. Deputy Catherine Murphy asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit of a taxpayer unit by 3% per €1,500 on a person's income between €110,000 and €160,000+ per year resulting in no entitlement to these tax credits when income is in excess of €160,000+ in addition to a USC rate of 3.25% in excess of €190,000. [12707/21]
Amharc ar fhreagraThe tapering out of tax credits on income above €110,000, at a rate of 3% per €1,500 of income, such that the taxpayer has no entitlement to credits at an income level of about €160,000, combined with the introduction of an additional USC rate of 3.25% on income in excess of €190,000, would yield an estimated €530m and €660m on a first and full year basis respectively.
These calculations are on a taxpayer unit basis, where jointly assessed couples are combined as one tax unit. The figures are estimates for 2021, based on data for the latest year available (2018 currently) adjusted to account for employment and income changes in the interim. Figures are provisional and may be revised. Finally, I have been advised by Revenue that the introduction of credit tapering would involve significant change to operational systems and processes, which would require further evaluation to fully understand the potential impacts on the relative position of different types of income earners.
278. Deputy Darren O'Rourke asked the Minister for Finance the number of persons successfully prosecuted for either tobacco or cigarette smuggling in 2019, 2020 and to date in 2021, in tabular form. [12725/21]
Amharc ar fhreagraI am advised by Revenue that the number of persons successfully prosecuted for cigarette or tobacco smuggling in 2019, 2020 and to date in 2021 is set out in the table below. The number of persons successfully prosecuted for other cigarette or tobacco-related offences, including the sale and supply of illicit tobacco products is also shown.
|
- |
Cigarette/tobacco smuggling |
Other cigarette/tobacco-related offences |
||
|
Year |
Indictable |
Summary |
Indictable |
Summary |
|
2019 |
1 |
6 |
3 |
52 |
|
2020 |
3 |
4 |
9 |
37 |
|
2021 to date |
0 |
1 |
0 |
0 |
I am advised by Revenue that it uses a range of measures designed to identify and target the smuggling, supply or sale of illicit tobacco products, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis.
279. Deputy Neasa Hourigan asked the Minister for Finance if he has considered placing Irish animals on the Irish euro coins; and if he will make a statement on the matter. [12736/21]
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 euro coins.
Under European guidelines, euro coins have a common obverse side and individual countries in the Eurosystem are not permitted to change the obverse side of a euro coin.
The design on the reverse side of the Irish euro coin is the harp, which is a symbol synonymous with Ireland and has been always depicted on Irish coins. Accordingly, the Minister is not considering replacing the harp with Irish animals on the Irish euro coins.
Over the years, the commemorative coin programme has celebrated a wide variety of themes, including animals and wildlife. Between 2010 and 2012, the Central Bank issued three silver proof coins to honour the Percy Metcalfe designs of the first coins of the Irish Free State. These coins commemorated the images of the horse, the salmon and the Irish Wolfhound. The theme of the Annual Mint Set to be issued 2021 is ‘The Irish Honey Bee’ and its role within the environment.
The Central Bank is seeking submissions from the public, until Friday 12 March 2021, in relation to the collector coin programme for 2022. All submissions, including any submission relating to the inclusion of Irish animals on our coin, will be considered as part of the commemorative coin programme.
The Collector Coin Unit at the Central Bank can be contacted directly at coindesign@centralbank.ie.
