Written Answers Nos. 82-96
82. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 214 of 22 June 2021, the number of occasions on which the Revenue Commissioners has successfully applied Ireland's general anti-avoidance rule; the quantum of additional tax revenue that has been clawed back through its application by year in tabular form; and if he will make a statement on the matter. [35073/21]
Amharc ar fhreagraI am advised by Revenue that the general anti-avoidance rule is contained in section 811 of the Taxes Consolidation Act 1997. Section 811 applied for transactions commenced up to 23 October 2014 and section 811C applies to transactions commenced after 23 October 2014. The general principles as to what constitutes a tax avoidance transaction are broadly the same under both sets of provisions. Section 811 required Revenue to issue a Notice of Opinion for transactions considered to represent tax avoidance. Section 811C does not require Revenue to issue a Notice of Opinion, instead a Notice of Assessment is issued.
I am further advised by Revenue that it is not possible in the time available to provide the full details sought.
In total 517 Notices of Opinion were issued under section 811 in respect of transactions considered by Revenue to be tax avoidance. I understand it has been possible for Revenue to challenge tax avoidance transactions identified that took place after 23 October 2014 using specific legislative provisions, therefore to-date it has not been necessary for Revenue to issue assessments under section 811C.
Revenue have dedicated Anti-Avoidance branches in their Large Cases – High Wealth Individuals Division. These branches have responsibility for challenging tax avoidance nationally under both general and specific anti-avoidance legislation. In January 2021 Revenue were managing 498 cases involving potential tax avoidance, relating to 27 transactions.
The settlements reached in the years 2014 to 2020 in relation to tax avoidance challenged by Revenue are set out in Table 1.
Table 1 – Tax Avoidance Settlements
|
Year |
Number of cases |
Yield |
|
2020 |
104 |
€18.4m |
|
2019 |
127 |
€29m |
|
2018 |
22 |
€5.7m |
|
2017 |
1,352* |
€3.8m |
|
2016 |
40 |
€10m |
|
2015 |
160 |
€42m |
|
2014 |
483 |
€13m |
|
Total |
2,288 |
€121.9m |
*Of the 1,352 avoidance cases settled in 2017, 1,332 were closed following the Supreme Court’s decision in the Hans Droog case in which it was successfully argued by the appellant that time limits set out in legislation relating to the self-assessment system apply to anti-avoidance legislation. As a result of the Supreme Court decision and acting on legal advice, Revenue closed similar cases involving time limit issues which it was no longer possible to pursue as a result of the application of the time limit.
Finance Act 2014 introduced section 811D and provided taxpayers with the opportunity to file a Qualifying Avoidance Disclosure (QAD). This provided for the disclosure of any tax avoidance transaction entered into on or before 23 October 2014. The final date to avail of the QAD was 30 June 2015. In general, the type of transactions that qualified for the disclosure initiative were transactions that could come within the definition of avoidance in section 811, also VAT avoidance transactions that could be challenged under the “Abuse of Rights” principle. In total 137 cases applied under the QAD provisions with settlements of €43.7 million (including tax and interest).
83. Deputy Sorca Clarke asked the Minister for Finance the estimated cost per annum if the PAYE tax credit was reapplied to the qualifying adult dependent element of the State pension (contributory). [35138/21]
Amharc ar fhreagraI am advised by Revenue that payments from the Department of Social Protection are taxable sources of income unless they are specifically exempt from income tax. Both the State Contributory Pension and the State Non-Contributory Pension are chargeable to income tax, but not to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
The Social Welfare Consolidation Act 2005 provides for the payment of an increase in the amount of weekly State pensions where the beneficiary of the pension has a qualified adult dependant. Although the qualifying adult portion of the pension is paid directly to the qualified adult, this payment is premised on there being an entitlement by the beneficiary to the pension in the first instance. As stated in section 112 of the Social Welfare Consolidation 2005 Act, the qualified adult portion is an “increase” in the pension and is payable in respect of a spouse/civil partner/cohabitant who is being financially maintained and whose income is not greater than a specified amount.
The tax treatment of the qualified adult increase is provided for in section 126(2B) Taxes Consolidation Act (TCA) 1997, as inserted by Section 12 of the Finance (No. 2) Act of 2013. That section provides that, for all the purposes of the Income Tax Acts, any increase in the State pension in respect of a qualified adult dependant is treated as if it arises to, and is payable to, the beneficiary of the pension. Since the increase is treated as income of the beneficiary for tax purposes, only one employee (PAYE) tax credit – valued at €1,650 - is available in respect of the State Pension, including the qualified adult dependent increase.
With regard to the Deputy’s specific question as to the estimated annual cost to the Exchequer in each of the years 2022 to 2026 of providing for a PAYE tax credit for the qualified adult dependent, I am further advised by Revenue that there are significant variables to consider in order to determine an individual’s final tax liability position and as such it is not possible to provide an estimated cost. This will be dependent on his or her civil status, his or her available tax credits or the amount of income received from other sources or perhaps an individual may not have sufficient sources of income to partially or fully avail of the PAYE credit in his or her own right. Furthermore, by virtue of section 188 TCA 1997, a person aged 65 and over is exempt from income tax where his or her total income is less than the relevant exemption limit. For 2021, the exemption limits are €36,000 for a married couple or civil partners and €18,000 for a single individual.
Finally, I would like to make the Deputy aware that the Minister for Social Protection recently provided details of the number of recipients of State pension (contributory) and State pension (non-contributory) respectively, who were also claiming an increase for a qualified adult and these statistics are set out in Parliamentary Question 13850/21, which can be located at the following link - www.oireachtas.ie/en/debates/question/2021-03-11/140/?highlight%5B0%5D=13850
84. Deputy Marian Harkin asked the Minister for Finance if the VRT enforcement officers follow the operational instructions contained in the Revenue Commissioners VRT enforcement manuals (details supplied); and if he will make a statement on the matter. [35228/21]
Amharc ar fhreagraI am advised that Revenue’s tax and duty manuals set out the rules, guidelines, procedures, and practices for different areas of activity. They are provided as guidance only and do not seek to provide professional advice or a definitive answer in every case. I am advised that Revenue’s VRT enforcement officers are expected to follow the operational instructions as set out in Revenue’s VRT Enforcement Manuals and apply them appropriately having regard to the facts and circumstances in each particular case.
85. Deputy Marian Harkin asked the Minister for Finance further to Parliamentary Question No. 204 of 25 May 2021, if he will clarify the section or subsection of the Finance Act 2001 that grants the Revenue Commissioners the power under section 144(2) to impose a penalty, and the section or subsection of the Finance Act 2001 specifies the amount, limit, and or method for the calculation of such penalty; and if he will make a statement on the matter. [35229/21]
Amharc ar fhreagraThe Revenue Commissioners may, in their discretion, restore goods that have been seized as liable to forfeiture under section 144(2) of the Finance Act 2001. In exercising their discretionary power to restore goods, the Revenue Commissioners may seek such conditions as they deem appropriate including payment of a compromise sum from the owner of the goods. I am advised that Revenue’s Enforcement Manual on Vehicle Registration Tax, which is available on the Revenue website, sets out guidelines which the Commissioners operate in relation to the terms and options that may be offered in appropriate cases, at the discretion of the Revenue Commissioners, for local release of seized vehicles.
86. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €400,000. [35363/21]
Amharc ar fhreagra87. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €300,000. [35364/21]
Amharc ar fhreagra88. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated by introducing a 40% rate for capital gains tax in circumstances in which the person making the disposal has an annual income in excess of €200,000. [35365/21]
Amharc ar fhreagra89. Deputy Pearse Doherty asked the Minister for Finance the total chargeable gain and liability reported by individuals, not companies, with respect to capital gains tax with individual incomes in excess of €200,000, €300,000 and €400,000, respectively disaggregated by asset type in each of the years 2018 to 2020. [35366/21]
Amharc ar fhreagraI propose to take Questions Nos. 86 to 89, inclusive, together.
I am advised by Revenue that the estimated yield generated from a rate of 40% on capital gains made on disposals by individuals with income greater than €400,000, €300,000 and €200,000 is €44m, €63m and €83m per year respectively. This is based on chargeable gains included on Income Tax and Capital Gains Tax (CGT) returns for the tax year 2018, the latest year for which full information is available. These estimates assume no change in behaviour by individuals resulting from the increase in the tax rate and do not include any yield in respect of companies.
Regarding Question 35366/21, the total chargeable gains returned and associated CGT liability for individuals with incomes over the thresholds specified, in respect of the year 2018, are set out in Table 1 below. The over €200,000 category in Table 1 includes the over €300,000 and €400,000 categories.
Table 1
|
Gross Income |
Chargeable Gain €m – All Asset Disposals |
CGT Liability €m – All Asset Disposals |
|
Over €200,000* |
1,260 |
391 |
|
Of Which: Over €300,000** |
917 |
294 |
|
Of Which: Over €400,000 |
638 |
206 |
*All those with incomes over €300,000 and over €400,000 are included in this row; ** All those with incomes over €400,000 are included in this row.
A breakdown by the main asset types is only available in respect of individuals disposing of single asset types in the tax year due to the structure of the tax returns. This information is set out in Table 2 below for the 2018 tax year.
Table 2
|
Gross Income |
Asset Type |
Chargeable Gain €m – Single Asset Disposals Only* |
CGT Liability €m– Single Asset Disposals Only* |
|
Over €200,000 |
Shares/Securities - Quoted |
375.7 |
113.3 |
|
Shares/Securities - Unquoted |
367.6 |
116.1 |
|
|
Agricultural Land/Buildings |
12.9 |
3.9 |
|
|
Development Land |
17.9 |
5.8 |
|
|
Commercial Premises |
43.9 |
14.3 |
|
|
Residential Premises |
33.4 |
11.0 |
|
|
Shares or Securities exchanged (S. 913(5)) |
12.5 |
3.5 |
|
|
Other assets |
70.5 |
21.5 |
|
|
Of which: Over €300,000 |
Shares/Securities - Quoted |
288.3 |
94.2 |
|
Shares/Securities - Unquoted |
255.0 |
81.0 |
|
|
Agricultural Land/Buildings |
8.1 |
2.5 |
|
|
Development Land |
13.4 |
4.4 |
|
|
Commercial Premises |
36.7 |
12.0 |
|
|
Residential Premises |
21.6 |
7.1 |
|
|
Shares or Securities exchanged (S. 913(5)) |
8.3 |
2.5 |
|
|
Other assets |
49.1 |
15.6 |
|
|
Of which: Over €400,000 |
Shares/Securities - Quoted |
217.7 |
71.3 |
|
Shares/Securities - Unquoted |
131.3 |
42.2 |
|
|
Agricultural Land/Buildings |
3.2 |
0.9 |
|
|
Development Land |
8.5 |
2.8 |
|
|
Commercial Premises |
30.7 |
9.9 |
|
|
Residential Premises |
12.6 |
4.2 |
|
|
Shares or Securities exchanged (S. 913(5)) |
2.1 |
0.7 |
|
|
Other assets |
12.6 |
3.9 |
*Chargeable Gain and CGT liability totals in Table 2 do not equal that of Table 1 as the asset type breakdown presented is only available where a single asset type is disposed of.
The Deputy may also be interested in additional CGT information, which is published on the Revenue website at link: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/summary-capital-gains-tax-returns.aspx.
90. Deputy Richard O'Donoghue asked the Minister for Public Expenditure and Reform the position regarding the OPW funded flood relief works that are currently ongoing; the estimated cost of each project; when each project will be completed in tabular form; and if he will make a statement on the matter. [35206/21]
Amharc ar fhreagraThe OPW delivers a programme of capital investment to address existing flood risk to properties and infrastructure through major flood relief projects, which are delivered largely in partnership with Local Authorities.
Since 1995 the OPW, together with the relevant Local Authorities, has constructed 49 major flood defence schemes throughout the country, protecting approximately 10,000 properties at a cost of some €400m, and avoiding estimated damages of €1.8bn.
In May 2018, €1bn investment was made available for implementation of a national programme of projects proposed in the Flood Risk Management Plans (FRMP), over the lifetime of the National Development Plan 2018-2027 as part of Project 2040. This investment secures funding to deliver some 119 additional flood relief schemes, in addition to the 33 already underway at that time. The flood risk in these communities represents 80% of the risk from our primary cause of flooding - and they are home to almost two thirds of our population.
The table below sets out the OPW funded flood relief works that are currently ongoing, including those that are at construction, substantially complete or have advanced works progressing.
|
Flood relief scheme works currently ongoing |
Current scheme status |
Estimated cost of project |
Estimated completion date |
|
Co. Clare |
|||
|
Ennis South |
At construction |
€22.9m |
2021 (Substantial completion) |
|
Ennis Lower |
At construction |
€22m |
2021 |
|
Co. Cork |
|||
|
Clonakilty |
Substantial completion |
€33.8m |
2021 (Substantial completion) |
|
Douglas/Togher |
At construction |
€22.9m |
2022 |
|
Bandon |
Substantial completion |
€34.5m |
2021 |
|
Skibbereen |
Substantial completion |
€37.9m |
2022 |
|
Dublin City |
|||
|
River Dodder (Phases 2C, 2D & 2E) |
At construction |
€21.8m |
2021 |
|
Loughlinstown/Deansgrange |
Advance works at Deansgrange currently at construction |
Overall scheme budget (Preliminary Estimate) €9.6m |
Overall scheme 2024 (Substantial completion) |
|
Co. Kildare |
|||
|
Lower Morrell |
At construction |
€12m |
2024 |
|
Co. Meath |
|||
|
Ashbourne |
At construction |
€5.6m |
2021 (Substantial completion) |
|
Co. Tipperary |
|||
|
Templemore |
At construction |
€10.2m |
2021 (Substantial completion) |
|
Co. Westmeath |
|||
|
Athlone |
At construction |
€16.2m |
2021 (Substantial completion) |
In addition to these, over 80 further projects are currently being progressed through design, development and Planning, including 61 from the FRMP’s which were prioritised for implementation, selected on the basis of capacity to deliver the greatest benefit in terms of the greatest number of properties protected on a national and regional basis. In addition, almost 60 further schemes will be progressed through planning, design and construction over the coming decade.
As well as the major schemes outlined above, the OPW has provided some €41m in funding to Local Authorities under the OPW’s Minor Works Scheme since its introduction in 2009, supporting over 600 projects and providing protection to some 7,500 properties from localised flood risk. These also include a number of coastal flood and erosion risk management studies by Local Authorities.
91. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform the precise official rules governing spending on large State capital projects as they apply to the proposed new national maternity hospital; if he will report on compliance to date in this regard with respect to the proposed new national maternity hospital; the reported request of the Minister for Health regarding the circumvention of these rules; and if he will make a statement on the matter. [35255/21]
Amharc ar fhreagraAs the Deputy may be aware, all major capital project over €100 million are required to undergo the full appraisal steps as set out in the Public Spending Code for Public Capital Investment. For projects estimated to cost over €100 million, the Government is the Approving Authority at each of the key decision gates in the project life cycle, including approval-in-principle at preliminary business case stage, approval to proceed to tender stage and approval to award contracts at final business case stage. The Public Spending Code for the development of public investment projects is available at this link: assets.gov.ie/99068/c14c842b-2afc-41d6-8429-045548548ecc.pdf
In addition, my Department conducts technical reviews at an early strategic assessment report stage, at preliminary business case stage and at final business case stage. These technical reviews will be carried out to ensure the full options appraisal, economic and financial appraisal, governance and risks of the project are appropriately assessed as part of the development of projects.
The Minister for Health, Stephen Donnelly TD, and I have shared correspondence in recent months regarding the development of the new maternity hospital business case. This was in relation to the appropriate stage in the Public Spending Code at which this case could be introduced for consideration by my Department for technical review and for decision by Government. In that context, I clarified the requirements within the Public Spending Code for each of the decision gates and that it would be expected that any business case submitted to my Department for review would comply with these requirements. It is my understanding that the business case is currently being developed, as appropriate, within the Health system and it is the responsibility of the Department of Health to bring the business case forward for consideration in due course.
92. Deputy Sorca Clarke asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the amount per county provided in direct funding for arts centres in each of the years 2018 to 2020 and to date in 2021. [35142/21]
Amharc ar fhreagraMy Department provides capital funding to arts centres. Details of all capital funding is provided on my Department's website showing the grantee and the amount paid by county for each year. It is available at the link below.
www.gov.ie/en/publication/b1eab-creative-arts-grants-and-funding-previous-schemes/#cultural-development-expenditure
Details of funding is published annually and 2021 funding will be published at the start of 2022.
The Arts Council provides current funding to Arts Centres and details of these are available on the Arts Council website at www.artscouncil.ie/Who_we_funded/
93. Deputy John Lahart asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the details of a universal basic income for all artists; when it will be introduced; the groups it will include; if it will include age groups in receipt of other State entitlements such as the State pension; and if she will make a statement on the matter. [35155/21]
Amharc ar fhreagraThe Arts and Culture Recovery Taskforce report Life Worth Living, was published in November 2020 and made ten recommendations for the sector. The recommendations included a proposal to pilot a basic income scheme for a three-year period in the arts, culture, audiovisual and live performance and events sectors.
I was delighted that as part of the Economic Recovery Plan launched on June 1st, I secured agreement from Government for a Basic Income Guarantee pilot scheme for artists. The Government recognises that bold steps are necessary for our invaluable and much treasured arts community to come back stronger than ever before.
I have recently established an Oversight Group with the remit of addressing the outstanding recommendations of the Life Worth Living report. The membership of the Group is drawn from Departments and Agencies which have the ability and wherewithal to make appropriate progress on the outstanding recommendations, including the Basic Income Guarantee pilot.
The Oversight Group held its first meeting on May 27th chaired by my Department and joined by representatives of the Departments of Finance, Social Protection, Public Expenditure and Reform as well as Enterprise, Trade and Employment. The Directors of the Arts Council and Screen Ireland are also members alongside a representative of the County and City Managers' Association.
I have asked the Oversight Group to prioritise the manner in which a Basic Income Guarantee pilot scheme for artists will be delivered. As the work of the group has only recently begun it is too early to say with any certainty what the details of the pilot scheme will be. I would hope to have report from the Group during the summer in time for Budget 2022 considerations.
94. Deputy Holly Cairns asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media further to Parliamentary Question No. 137 of 23 June 2021, the steps she is taking to regulate elements of the short-term letting sector; and if she will make a statement on the matter. [35196/21]
Amharc ar fhreagraThe Programme for Government - Our Shared Future includes the specific action to strengthen the regulatory and enforcement mechanisms with regard to short-term letting, and the ongoing approach in this regard is currently being considered, in the first instance, by the Minister for Housing, Local Government and Heritage. In this context, discussions are ongoing between our Departments to examine potential proposals in relation to the regulation of the short-term letting sector.
95. Deputy Holly Cairns asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she will increase Fáilte Ireland’s financial contribution to the work of rural recreational officers; and if she will make a statement on the matter. [35197/21]
Amharc ar fhreagraExchequer funding provision for Tourism Services, including allocations to Fáilte Ireland, are determined through the annual Estimates process. The allocations at subhead level are confirmed in the Revised Estimates Volume for Public Services published by the Department of Public Expenditure and Reform. Within its subhead allocations, it is up to Fáilte Ireland to determine the appropriate distribution of its annual Exchequer allocation in line with its statutory functions and strategic and operational priorities.
The consideration of possible financial contributions towards the work of Rural Recreation Officers is, therefore, an operational matter for Fáilte Ireland. Accordingly, I have referred the Deputy's question to the agency for direct reply. Please inform my private office if you do not receive a reply within ten working days.
96. Deputy Ruairí Ó Murchú asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if the database of an organisation (details supplied) currently under construction will provide data on an all-island basis; and if she will make a statement on the matter. [35420/21]
Amharc ar fhreagra97. Deputy Ruairí Ó Murchú asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the expected timeframe in which an organisation (details supplied) will examine the inclusion of locations of defibrillators in its database; and if she will make a statement on the matter. [35421/21]
Amharc ar fhreagraI propose to take Questions Nos. 96 and 97 together.
Sport Ireland has commenced work on the development of a National Database of Sport & Recreation Amenities. This GIS-based database encompasses considerably more datasets than was originally envisaged in an audit of sports facilities and is expected to be substantially completed within two years. As part of this work, Sport Ireland is examining a proposal to include the location of defibrillators in the database.
I have referred the Deputy's question to Sport Ireland for further information on this project and for direct reply to the Deputy. Please contact my office if a reply is not received within 10 working days.
