Written Answers Nos. 412-428
412. Deputy Ruairí Ó Murchú asked the Minister for Finance the Government’s plans in relation to proposed changes to the international corporation taxation rules regarding the warehousing of profits; the projected costs and changes these will entail; and if he will make a statement on the matter. [40979/21]
Amharc ar fhreagraMy understanding is that the Deputy's question relates to changes to the international tax framework proposed recently at OECD.
In this context, you may be aware that on 1 July 2021, the OECD Inclusive Framework reached agreement, but not consensus, on key aspects of the two-pillar solution to address tax challenges arising from digitalisation and globalisation. Pillar One proposes a re-allocation of a proportion of tax to the market jurisdiction, while Pillar Two seeks to apply a global minimum effective tax rate.
Ireland is supportive of the Pillar One proposals to re-allocate a proportion of taxing rights to market countries, recognising that the international tax framework must evolve to accommodate changes in how business operates in today’s digitalised economy. There will be a cost to Ireland for this in terms of reduced corporation tax receipts but, overall, Pillar One will bring stability and certainty to the international tax framework and will help underpin economic growth from which all can benefit.
I have been very clear that Ireland is broadly supportive of the agreement but I signalled a reservation in the respect to a commitment to a rate of ‘at least 15%’ for a global minimum effective tax rate. As a result of this reservation, Ireland was not in a position to join the OECD Statement.
I have consistently said that Ireland wants to be part of the agreement at OECD. However, any agreement must bring certainty and stability.
Given the economic significance of the OECD proposals to Ireland, it is important that there is a dialogue within our political system, with stakeholders and with citizens in respect to these proposals. In that regard, I launched a Public Consultation on the proposed OECD agreement on 20 July.
Interested parties are invited to respond to this consultation on Ireland’s approach to the international tax proposals being discussed at the OECD/G20 BEPS Inclusive Framework and, specifically, in relation to how our approach and those proposals can continue to support economic growth and prosperity.
The consultation period runs until 10 September 2021 and details of how to engage are available on the Department of Finance website.
While there is broad high level agreement on key components of a two-pillar solution, there remain a number of critical aspects of both pillars which have yet to be settled. Department of Finance officials previously estimated that the cost to the Exchequer of the OECD reforms may be up to EUR 2 billion annually which is proximately one fifth of corporate tax revenues. This is the estimate included in the Stability Programme Update published by the Department in April to apply from 2025.
However, It is very difficult at this point to provide an update to this estimate given the complexities and many open issues which are still to be resolved at the OECD in the months ahead.
Nevertheless, I remain committed to the OECD process and aims to find an outcome that Ireland can yet support. Ireland will continue to play our part in reaching a comprehensive, sustainable and equitable agreement.
414. Deputy Robert Troy asked the Minister for Finance if his attention has been drawn to the issue regarding touring Irish music artists in which they will be restricted from touring as a result of Brexit (details supplied). [40983/21]
Amharc ar fhreagraThe ATA Carnet is an internationally recognised document that you can use to temporarily import or export certain goods into or out of the EU. The carnet is issued in the country from where the goods are exported. You must present the ATA carnet with the goods to customs at the point of exportation and importation. The ATA Carnet is completed and stamped each time the goods leave/re-enter the EU.
No import duties or taxes are collected for the temporary importation of goods covered by the system since internationally valid security has been established by the national associations issuing the ATA carnets. If you use an ATA carnet you will not have to complete electronic customs declarations normally required at import/export. The Carnet covers both the EU and Non-EU requirements.
Dublin Chamber of Commerce is the national guaranteeing association for ATA Carnets for Ireland. There are two payments required for a Carnet to issue – (i) the issuing fee and (ii) the security deposit. Details of issuing fees are on the Dublin Chamber of Commerce website. The security deposit is refundable once the Carnet is returned to the Chamber properly stamped. The amount of the security deposit depends on the type of goods being carried and the country/countries they are going to. Further information is available from the Dublin Chamber of Commerce.
An alternative approach whereby an electronic customs export declaration can be lodged on the Customs Automated Entry Processing (AEP) system when the musical equipment is temporarily travelling from IE to a Non-EU country. Procedure Code 23 for temporary export is included on the declaration. No financial deposit/guarantee is required. When the musical equipment is being re-imported into IE from outside the EU an electronic re-import declaration should be submitted on the Customs Automated Import System (AIS) system using procedure code 6123 (re-import after temporary export) and a claim for returned goods relief can be made at re-import if
- the musical equipment returns in the same condition as it was exported
- the musical equipment is re-imported within 3 years of the date of export
- the original export declaration should be available as proof that the musical equipment was originally exported from IE
- VAT relief can only apply if the musical equipment is re-imported by the same person that originally exported it
The returned goods relief is claimed on a standard import declaration meaning full import formalities including risk analysis, examination, presentation of licenses etc. will apply.
Further information on the criteria to qualify to claim ‘Returned Goods Relief’ is available on the Revenue Website.
415. Deputy Mary Butler asked the Minister for Finance if he will identify a potential solution to the difficulties in securing public liability insurance for a company (details supplied) which may be reflective of a wider issue affecting small tourism providers since Brexit; and if he will make a statement on the matter. [41064/21]
Amharc ar fhreagraI note that the details supplied by the Deputy refers to insurance for a specific organisation. While I recognise the concerns felt by many businesses across various sectors around the cost and availability of insurance cover, I am sure the Deputy will appreciate that neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU Solvency II Directive insurance framework.
However, this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. In this regard, the Action Plan for Insurance Reform sets out 66 actions across a number of policy areas. As the Deputy may be aware, the Government recently published the first Action Plan Implementation Report, which shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.
Among these key achievements has been the implementation of new Personal Injuries Guidelines, which have significantly lowered award levels for many categories of common injuries. In recent meetings, the main insurance firms in the Irish market have indicated to me that they will begin to reduce premiums in response to this development. Minister Fleming will meet with CEOs of the major insurance providers again later this year to review their ongoing response to this and other key reforms.
Another key achievement of the reform agenda is the new Office to Promote Competition in the Insurance Market. Since its establishment, the Office has held meetings with wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on the issues surrounding competition. Minister Fleming will report on a regular basis to the Cabinet Sub-Group on its progress.
The Department is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials from both are developing a customised proposal for potential market entrants and are identifying targets to engage intensively with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market such as the one you have highlighted.
The Deputy may also be aware that the Central Bank recently published the first National Claims Information Database (NCID) report on employers' liability (EL), public liability (PL) and commercial property insurance. It showed that while many businesses in Ireland are accessing affordable insurance, some industries are encountering some difficulties. This report is a rich source of data which will further enhance the transparency of the sector. My officials are also engaging with the Central Bank to consider what enhancements could be made to further improve transparency in the next iteration of this report, so that the impact of the Guidelines can be seen in the EL, PL and commercial property market.
I would like to add that we are already seeing indications that the insurance industry is beginning to respond positively to our reform agenda with the announcement recently by a specialist insurer that it will expand its footprint in Ireland. This is a welcome development, which may prompt other firms to expand product offerings.
In the context of Brexit, it my understanding from the Central Bank that while some UK/Gibraltar insurers decided to withdraw from the Irish market post-Brexit, the vast majority (over 95%) have implemented contingency measures and therefore continue to have authorisation to operate in Ireland.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
416. Deputy Darren O'Rourke asked the Minister for Finance the amount of the connectivity fund invested to date; the projects and entities in which the funding has been invested; and if he will make a statement on the matter. [41130/21]
Amharc ar fhreagraIt was not possible for the National Treasury Management Agency to provide the information sought in the time available and, therefore, I will make arrangements to provide the information to the Deputy in line with Standing Orders.
417. Deputy Richard Boyd Barrett asked the Minister for Finance the most recent figures of total household wealth and the property and financial assets less all liabilities. [41156/21]
Amharc ar fhreagraThe most recent Quarterly Financial Accounts release, published by the Central Bank, provides financial data for Q4 2020 for all sectors of the Irish economy. In Q4 2020, household net worth increased by 2.9 per cent on the previous quarter and 6.1 per cent year on year to €855 billion. This was made up of financial assets of €441 billion, housing assets of €557 billion less total liabilities of €143 billion.
It should be noted that household net worth does not capture the wealth distribution across the household sector, and may not reflect the underlying experiences of all households. For 2020 as a whole, an increase in social transfers and subsidies, along with a fall in consumption have lessened the impact which unemployment and falling pay have had on household net worth in aggregate.
419. Deputy Richard Boyd Barrett asked the Minister for Finance the size of the national debt. [41158/21]
Amharc ar fhreagra420. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount of interest that will be paid on the national debt in 2022. [41159/21]
Amharc ar fhreagraI propose to take Questions Nos. 419 and 420 together.
The large-scale fiscal support required to limit the economic disruption brought about by the COVID-19 pandemic has led to an increase in public indebtedness.
To offer a wider picture of Ireland’s debt, the National Treasury Management Agency have provided a response in relation to General Government Debt (GGD). This is the measure of debt for which estimates are published and is the standard measure of debt used across the EU for comparative purposes. Unlike National Debt, it includes State debt that is outside of the Exchequer and so is a measure of the total gross consolidated debt of the State.
I am informed that GGD stood at circa €218bn at the end of 2020, up €14bn on the position at end-2019.
In the recently released Summer Economic Statement, my Department estimated that it would increase further this year, to over €240bn at year-end.
The most recent estimate of interest on GGD for 2022 is €3.7bn.
These estimates will be updated in Budget 2022 later this year.
421. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated primary Exchequer surplus for 2022. [41160/21]
Amharc ar fhreagraThe primary Exchequer balance may be defined as the Exchequer balance adjusted for the impact of the national debt cash interest cost.
As per the Stability Programme Update 2021, the national debt cash interest cost in 2022 is projected to be €3,860 million. This forecast remained unchanged in the Summer Economic Statement 2021 (SES).
The SES projected a 2022 Exchequer deficit of €13,010 million. Therefore, the primary Exchequer deficit for 2022 is estimated at €9,150 million.
Updated fiscal and economic forecasts will be provided in October as part of the Budget documentation.
422. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of revenue collected through vehicle registration tax in 2020. [41161/21]
Amharc ar fhreagraThe yield collected through Vehicle Registration Tax in 2020 was €751m.
Revenue has advised me that its Annual Report for 2020, which is available at link: www.revenue.ie/en/corporate/press-office/annual-report/2020/ar-2020.pdf, provides in Table 2 on page 83, the total net receipts for all taxes, which may be of interest to the Deputy.
423. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that was forgone due to the knowledge box in the latest available figures. [41162/21]
Amharc ar fhreagraI am advised by Revenue that the most recent data on the annual cost and the number of claimants of the Knowledge Development Box (KDB) are published on page 17 of Revenue’s paper on 2020 Corporation Tax payments and 2019 Corporation Tax returns. The paper provides the figures in respect of number of claimants and tax cost for the years 2016 to 2019, and is available at www.revenue.ie/en/corporate/documents/research/ct-analysis-2021.pdf.
In this regard, the Deputy may be aware that a claimant company has a period of up to 24 months to make a claim for KDB relief. It is anticipated that companies will make use of the 24 month time frame available. Therefore further claims in respect of the year ended 31 December 2019 may be made by September 2021.
424. Deputy Richard Boyd Barrett asked the Minister for Finance the amount collected in stamp duty charged on the purchase of stocks and marketable securities of Irish incorporated companies in 2020. [41163/21]
Amharc ar fhreagra449. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by increasing the rate of stamp duty on residential property to 2% and 5% on properties with values greater than or equal to €700,000 and greater than or equal to €1,000,000, respectively. [41358/21]
Amharc ar fhreagraI propose to take Questions Nos. 424 and 449 together.
The yield from Stamp Duty on transactions in shares, stocks and marketable securities is published at link: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx. This information is not separately available in relation to Irish incorporated companies only.
The Revenue Ready Reckoner, which is available at link: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf, shows on page 18, the estimated yield from changes to the rate of Stamp Duty on residential property. The proposed increases can be derived on a pro rata basis from the information in the published table. These costings assume no behavioural change arising from the proposed changes.
425. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to date in 2021 of tax reliefs and exemptions available to property developers. [41164/21]
Amharc ar fhreagra426. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to date in 2021 of the tax reliefs and exemptions available to property owners. [41165/21]
Amharc ar fhreagra427. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to date in 2021 of the tax reliefs and exemptions available to landowners. [41166/21]
Amharc ar fhreagraI propose to take Questions Nos. 425 to 427, inclusive, together.
Information relating to the various reliefs and exemptions are set out in the links below. The Deputy should be aware that some of the measures contained in the links are not exclusive to property owners, landowners and developers. It should also be noted that some are no longer available to new claimants.
The figures set out in the links below relate to the most recent years for which data are available. As the Deputy will appreciate, tax returns for 2021 are not yet available. The data range from various dates (depending on the different reliefs and exemptions) up to the most recent years for which figures are available (generally 2018 or 2019).
- Interest paid on loans relating to principal private residence, relief for expenditure on significant buildings and gardens and the rent a room scheme (available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx);
- Property incentives (available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/property-reliefs.aspx);
- Home Renovation Incentive Scheme (available at:www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/index.aspx);
- Help to Buy scheme (available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/index.aspx);
- Local Property Tax (numbers claiming various exemptions available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx) .
428. Deputy Richard Boyd Barrett asked the Minister for Finance the most up-to-date figures for the number of jobs created by the Irish Strategic Investment Fund in its commercial partnerships; and the locations in which these jobs were created by companies obtaining such investment. [41167/21]
Amharc ar fhreagraI am informed by the National Treasury Management Agency, which manages the Ireland Strategic Investment Fund (ISIF), that this information can be obtained on the ISIF website at the following link: isif.ie/uploads/publications/FY-2020-Report-including-H1-Economic-Impact-Results_2021-04-26-185152.pdf
The data in the report reflects detailed survey data for the six month period up to 30 June 2020. Given the quantum of surveys of underlying investees and underlying investees of indirect investments and the comprehensive analysis completed, finalisation and publication of this economic impact data lags 6 months behind and so the H1 2020 update presents the most recent data available. The most recent survey for FY 2020 is complete, is going through their quality assurance & approval process and will soon be published within the ISIF H1 2021 Update.
As the Deputy will see on page 16 of the report, as at 30 June 2020, jobs supported by ISIF capital amounted to 29,566. Further detail on the geographic split is outlined on page 17, where it shows that Dublin accounted for 44% of these jobs, Leinster ex-Dublin 28%, Munster 18%, Connacht 5% and Ulster 5%. This is broadly in line with the latest available data on the Central Statistics Office regional split of Gross Value Added, where Dublin accounted for 45%, Leinster 19%, Munster 24%, Connacht 7% and Ulster 5%.
