Written Answers Nos. 147-169
147. Deputy Thomas Pringle asked the Minister for Transport the reason a person with a progressive underlining health condition (details supplied) who has had a disabled driving permit has had their renewal refused and has been advised that they cannot reapply for a year; and if he will make a statement on the matter. [48172/21]
Amharc ar fhreagraBoth the Irish Wheelchair Association (IWA) and the Disabled Drivers Association of Ireland (DDAI) are authorised by law to issue disabled parking permits.
My Department has no role in either the issuing or the renewal of these permits and nor can it comment on individual cases.
148. Deputy Aengus Ó Snodaigh asked the Minister for Transport the progress and status of the horse-drawn carriage Bill; when he expects pre-legislative scrutiny to take place; and when the heads of the Bill will be published. [48192/21]
Amharc ar fhreagraUnlike other local authorities in the country, Dublin City Council lacks the power to regulate and set standards for horse-drawn carriages. The preparation of the necessary legislative proposals in regard to the regulation of horse-drawn carriages in Dublin is a complex issue requiring engagement by my Department with several stakeholders, including Dublin City Council.
Work on this issue unfortunately did not progress as planned in 2020 due to the need to prioritise work in other areas in view of the COVID-19 pandemic. However, this work is once again progressing and officials from my Department are working with Dublin City Council to consider how best to safely repeal the Dublin Carriage Acts 1853-55, which vests the power to regulate horse-drawn carriages in Dublin with the Dublin Metropolitan Police Commissioners, to whom An Garda Síochána is the successor.
The development of legislation of this nature, which involves the repeal of legislation which pre-dates the foundation of the State, is complex and technical and so I am unable to provide a definitive timeline for the completion of this work. However, once the current process of stakeholder engagement has been satisfactorily completed, I plan to seek approval from Government to publish the finalised General Scheme without delay. Naturally, once the General Scheme has been published I will be in touch with the Chair of the Oireachtas Committee on Transport and Communications in relation to pre-legislative scrutiny.
149. Deputy Éamon Ó Cuív asked the Minister for Transport if he plans to provide additional resources to the Road Safety Authority to enable it to reduce driving test waiting lists, which are currently at unacceptable levels; if his attention has been drawn to the fact that since the resumption of driving tests, applicants are waiting up to six months or more for a driving test, which in many cases is impacting severely on applicants' employment prospects or students' ability to get to and from college; if his attention has been drawn to the need for driving test waiting lists to be substantially reduced so all applicants are provided with a driving test without delay; and if he will make a statement on the matter. [48203/21]
Amharc ar fhreagraThe Department is very aware of the challenges facing the RSA as they work hard to further manage the backlog in the Driver Testing Service.
Due to the suspension of driver testing services in the initial pandemic response, along with the health protocols required since the resumption of services, services are operating well below normal capacity and a significant backlog has developed.
In line with the gradual reopening of services this Summer, driving tests for all those who are eligible to take the test and in particular for those have been waiting longest, have now recommenced. Critical frontline workers continue to be the priority for the driver testing service.
My Department is liaising with the RSA on an ongoing basis to meet the growing demand for tests. An additional 40 temporary driver testers have been authorised along with 36 approved for retention or rehire in 2020. These testers have been recruited and trained and commenced testing in July.
In addition, sanction was granted at the end of June to add a further 40 testers to the cohort.
As of the 27th of September, the RSA has increased its operating capacity from 6 to 7 tests per tester per day. Extended operating hours and expanded facilities at existing centres or new centres where appropriate include other measures being taken.
These resources will enable the RSA, which is funded through the fees it receives for the services it provides, under the Road Safety Authority Act, to address the backlogs. The question of providing additional financial resources does not therefore arise.
The number of tests scheduled is increasing on a gradual basis. However, it should be noted that approximately 5% of all tests scheduled are not conducted or are abandoned on the day for a number of reasons (e.g. no NCT, insurance not valid etc). In addition, it is very disappointing to note that a number of people do not turn up on the day for their scheduled test. The RSA has been working hard to reduce this “no show” rate, which was 10% and the volume of “no shows” has now dropped to an average of 2.18%.
The health of both the public and the testers themselves must take priority, and as a result it is important to recognise that it will take time to get driver testing waiting times back to normal pre-Covid levels.
150. Deputy Paul McAuliffe asked the Minister for Transport his views on a matter (details supplied) in relation to taxi fares; and if he will make a statement on the matter. [48258/21]
Amharc ar fhreagraThe regulation of the small public service vehicle (SPSV) industry, including the setting of fares, is a matter for 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.
151. Deputy Róisín Shortall asked the Minister for Transport if he is taking steps to deal with numerous customer services complaints against a company (details supplied) from motorists; the steps he is taking to address the issues raised; and if he will make a statement on the matter. [48263/21]
Amharc ar fhreagraAs Minister for Transport I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day to day operations regarding national roads, including toll roads, are within the remit of TII.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
152. Deputy Sorca Clarke asked the Minister for Transport the routes and timetables on which 24-hour bus routes will be rolled out in 2022. [48368/21]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the operations of public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling of these services in conjunction with the relevant transport operators.
I have, therefore, forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
153. Deputy Cathal Crowe asked the Minister for Finance the measures in place to help artists and arts organisations cope with high insurance costs; and if he will make a statement on the matter. [47926/21]
Amharc ar fhreagraI am aware of the difficulties being experienced by the arts sector due to the cost and availability of insurance. However, as the Deputy will be aware, 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 businesses or individuals. This position is reinforced by the EU Solvency II Directive framework.
Notwithstanding this, the Government firmly understands these issues and is working to address them through the Action Plan for Insurance Reform. This whole-of-Government approach sets out 66 actions that aim to improve both the cost and supply of this key financial service, particularly for businesses and voluntary organisations – including those involved in the arts. An Implementation Report of the Action Plan was published in July and shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines which was realised several months ahead of schedule. They should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using the PIAB to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. I have previously set out my view that these costs, rather than the profit component, tend to represent a bigger factor in the cost of insurance premiums. As such, it is important that they are lowered.
As Minister for Finance, my expectation is that insurers should reflect the savings from reduced award levels to customers. In meetings between Minister of State Fleming and CEOs of the main Irish insurers they indicated they will begin lowering premiums in response to the Guidelines. Government will hold them to account on this commitment.
In addition, work being led by the Minister of Justice to review the law on Occupiers’ Liability and the Duty of Care should also contribute to easing the insurance difficulties facing artists and arts organisations. I understand that legislative proposals to reform the law in this area are at an advanced stage and are expected to be brought to Government for approval shortly.
Finally, I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the PIAB and reduce fraud. It is my hope that the implementation of these key actions in particular should go some way to improving the availability and affordability of insurance for all, including artists and arts organisations.
154. Deputy Thomas Pringle asked the Minister for Finance if he will extend the help-to-buy scheme beyond the current expiry date due to Covid-19-related restrictions in 2020 and 2021 for building; and if he will make a statement on the matter. [48173/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
In summary, the process to claim HTB involves two stages, application stage and claim stage. Where an application is made during the period 1 October to 31 December 2021, and a claim is made on foot of such an application in the period 1 January to 31 March 2022, the claim will be deemed to have been made in 2021. However, the timeframe for entering into a contract to purchase or, in the case of a self-build, to have drawn down the first tranche of a qualifying loan does not change, the end date of 31 December 2021 for so doing still applies.
Following a commitment in the Housing for All strategy, my Department carried out a review of the scheme as part of its Tax Strategy Group deliberations. The resultant paper entitled "Income Tax (Incorporating a Review of the Help-to-Buy Scheme)" is available on the Government website at the following link: www.gov.ie/en/collection/d6bc7-budget-2022-tax-strategy-group-papers/.
In the coming days, I will be taking stock of where matters stand and decisions will be taken in relation to Help-to-Buy having regard to a number of elements including the overall policy context in which the scheme operates and my Department's deliberations as set out in the recent Tax Strategy Group paper.
155. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he will ensure that artists and arts workers are supported through the employment wage subsidy scheme until mass gatherings are permitted again and cultural events can take place at full capacity; and if he will make a statement on the matter. [47787/21]
Amharc ar fhreagraI am aware of concerns that have been raised regarding the pace of recovery for the arts sector. However, the position is that the Employment Wage Subsidy Scheme (EWSS) is an economy wide support. The objective of EWSS is to support all employment and to maintain the link between the employer and employee insofar as is possible. The scheme is open to all businesses, provided the business meets the requisite conditions of the scheme. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, payments of over €4.9 billion and PRSI credit of almost €784 million have been granted to 51,500 employers in respect of over 664,700 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made in June, it has been decided that the scheme is now to be extended until the end of December 2021. For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%.
Further, as announced Tuesday 28th September, the Government has agreed that there will be no change to the EWSS for the month of October 2021, which means that the scheme will continue to operate in its current form as per the arrangements for Q3 2021. Issues around the configuration of the EWSS beyond October are currently being considered and full details will be announced on Budget Day, 12 October 2021.
I would also note that the Government have put in place a range of measures to support people and businesses most affected by the financial shock of the pandemic, including the arts and cultural sector. The Small Business Assistance Scheme for COVID (SBASC) and Tourism Business Continuity scheme have also been established in order to support those businesses most at risk. Other schemes which have been established include the Live Performance Support Scheme (LPSS) and the Music Entertainment Business Assistance Scheme (MEBAS), both of which are targeted at supporting the commercial live performance sector. Details of the supports are available on the Department of Enterprise, Trade and Employment’s website at the following link: enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
156. Deputy Richard Bruton asked the Minister for Finance the current payment rates for the employment wage subsidy which are in payment at different pay levels; the conditions which must be met by an employer to remain in payment; and if further phased withdrawal is planned as the economy reopens. [47523/21]
Amharc ar fhreagraSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses. EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. To date, €4.9bn has been paid out under the scheme to 51,500 employers in respect of 664,700 employees and Employers’ PRSI of €784m has been foregone.
For every qualifying employee paid a weekly gross amount between:
- €151.50 and €202.99, the subsidy is €203,
- €203 and €299.99, the subsidy is €250,
- €300 and €399.99, the subsidy is €300, or
- €400 and €1,462, the subsidy is €350.
No subsidy is available for employees paid a weekly gross amount less than €151.50 or more than €1,462. The scheme also provides for a reduced rate of Employers’ PRSI.
The Finance (Covid-19 and Miscellaneous Provisions) Act 2021, signed into law on 19 July, provided for the extension of EWSS to 31 December 2021, ensuring that the scheme continues to provide ongoing and necessary employment support for eligible businesses as the economy returns to a full re-opening. The legislation also provided that for employers to be eligible for the EWSS, they must be able to demonstrate that their business will experience a 30% reduction in turnover or customer orders for the calendar year 2021 compared to the calendar year 2019 and that this disruption to normal business is caused by the COVID-19 pandemic.
The EWSS legislation requires that immediately at the end of each month, from the introduction of the scheme in August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.
To assist employers in conducting a monthly review of its continuing eligibility for the scheme, Revenue is providing an EWSS Eligibility Review Form through its Revenue Online Service (ROS). From 21 July 2021, completing and submitting an EWSS Eligibility Review Form to Revenue is necessary to avail of EWSS supports, with details of an employer’s monthly eligibility review check to be submitted by the 15th of the following month. For example, the eligibility review undertaken on the last day of September will need to be completed and submitted to Revenue by 15 October.
In addition, employers must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance for the duration of the scheme.
I have been clear that there will be no cliff-edge to the EWSS. As I outlined in my recent announcement on 28 September, the Government has agreed that there will be no change to the EWSS for the month of October 2021, which means that it will continue to operate in its current form as per the arrangements for Q3 2021. Issues around the configuration of the scheme beyond October are currently being considered and full details will be announced on Budget Day, 12 October 2021.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
157. Deputy Richard Bruton asked the Minister for Finance the terms on which warehoused taxes are being held by the Revenue Commissioners; the obligations that enterprises carry in respect of these sums of money; and if any phasing of obligations is planned to assist enterprises struggling to reopen. [47524/21]
Amharc ar fhreagraThe Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme, which has to date provided €2.6 billion in liquidity to approximately 95,000 businesses, applies to VAT debts, PAYE (Employer) debts, certain self-assessed income tax debts and overpayments of both the Temporary Wage Subsidy Scheme (TWSS) and the Employment Wage Subsidy Scheme (EWSS). Access to the scheme is automatic for SMEs managed by Revenue’s Business and Personal Divisions and by agreement with larger businesses managed by Revenue’s Large Cases and Medium Enterprise Divisions. To qualify for debt warehousing, businesses must continue to file all tax returns, even though the liability cannot be paid.
For eligible businesses, Period 1, the period during which tax debts may be warehoused, has been extended to 31st December 2021, and tax debts can then be ‘parked’ interest-free until 31st December 2022. At that point the warehoused debt may be paid in full without incurring an interest charge or can be paid through a tailored phased payment arrangement starting in 2023 at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 8% or 10% per annum that would otherwise apply to such debts. Any tailored phased payment arrangement will take account of the taxpayer’s particular financial circumstances and can be extended over a longer timeframe as required provided current liabilities continue to be paid as they fall due.
I am aware that Revenue maintains regular contact with taxpayers and businesses availing of debt warehousing to ensure they appreciate the importance of continuing to file returns, to clarify any queries they may have about their obligations to repay the liabilities in due course and of the importance of paying current taxes. Revenue has assured me that it will continue to engage in this manner and that a flexible approach will be adopted to the repayment of warehoused debts on a case by case basis. Further information on the Debt Warehousing Scheme is available on the Revenue website which may be of assistance to the Deputy.
158. Deputy Richard Bruton asked the Minister for Finance if the Covid restrictions support scheme, which provides for an advanced tax credit, will continue to operate during the remaining phases of reopening; the obligations enterprises carry in respect of these advances as their business gradually recover; and if any additional phasing is envisaged during the remaining stages of reopening and recovery. [47525/21]
Amharc ar fhreagraThe Covid Restrictions Support Scheme (CRSS) is provided for in section 11 of the Finance Act 2020. To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict customers from accessing their business premises to acquire goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. A business must be able to demonstrate that, because of the Covid restrictions, the turnover of the relevant business activity during the period of restrictions will be no more than 25% of the average weekly turnover of the business in a reference period, which in most cases is 2019.
With the easing of Covid restrictions in recent months many businesses are no longer significantly restricted from operating and therefore are no longer eligible for the CRSS. However, eligible businesses have been able to claim enhanced restart week payments to assist them with the costs of reopening.
Where, under current public health restrictions, a business is restricted from operating, for example a nightclub, the business can, where it meets the relevant criteria, continue to claim under the CRSS until such time as it ceases to be restricted. At which time, the business can, where it meets the relevant criteria, claim an enhanced restart week payment computed at double the normal weekly CRSS rate, for three weeks, subject to a maximum weekly amount payable of €5,000.
Businesses that have ceased to qualify for CRSS, as well as businesses that were not eligible for CRSS, may be eligible to claim another support introduced by the Government, the Business Resumption Support Scheme (BRSS). The BRSS is a targeted support for companies, self-employed individuals, partnerships as well as certain charities and sporting bodies that carry on a trade that was significantly impacted by Covid-19 public health restrictions, including where the impact continued after the easing of the restrictions.
To qualify for the BRSS, a business must be able to demonstrate that the turnover from its trade in the period from 1 September 2020 to 31 August 2021 is no more than 25% of a ‘reference turnover amount’, which is based on when the business commenced. A qualifying person may, since early September, make a claim under BRSS for a single payment which will be equal to three times the average weekly turnover of the relevant business activity in a reference period, subject to a maximum payment under the scheme of €15,000.
Detailed operational guidelines on CRSS and BRSS are available on the Revenue website.
Finally, the Deputy will be aware that, on 15 September, the Dáil approved the draft Statutory Instrument to extend the CRSS to 31 December 2021. I can confirm that I have since signed the S.I. and the CRSS will run to 31 December 2021.
159. Deputy Richard Bruton asked the Minister for Finance the level of relief that has been granted to date under the stay-and-spend tax credit; and if the applicable dates for this concession will be extended. [47526/21]
Amharc ar fhreagraThe purpose of the Stay and Spend scheme was to provide targeted support to businesses within the hospitality sector whose operations are likely to have been most affected by continued restrictions on public health grounds. The scheme ended on 30 April.
Since 1 October 2020, a total of 67,982 receipts have been uploaded to the Revenue Receipts Tracker, as at 29 September 2021. The related expenditure recorded on these receipts amounts to €11,359,603, and the potential tax cost is €2,271,921, assuming all such expenditure is claimed and qualifies in full for tax relief. Subsequent to claims being made in respect of this scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.
The scheme was developed at a time last year when there appeared to be a steady downward trend in infection rates and there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this turned out not to be the case and, with the exception of some short periods, public health restrictions had the effect of impeding the operation of the incentive as originally envisaged.
I do not have any plans to re-introduce the scheme.
However, in recognition of the unprecedented challenges facing the Hospitality and Tourism sector, the VAT rate was reduced from 13.5% to 9% from 1 November 2020. This was originally to apply until 31 December 2021. However, the reduced rate was extended to 31 August 2022. The extension until the end of the 2022 summer season allows for a longer period of recovery for the sector. It should be noted that this VAT rate reduction came after the introduction of the Stay and Spend Tax Credit and reflects the fact that the latter was not intended to be the sole sector-specific support for hospitality.
160. Deputy Richard Bruton asked the Minister for Finance the rate of take-up of the bike-to-work scheme in the most recent 12 months for which data are available; and the average value of claims made. [47527/21]
Amharc ar fhreagraAs the Deputy will be aware, section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee and was introduced in 2009.
The cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.
Accordingly, there are no records available on the number of people availing of the scheme.
Tax expenditure reports prepared by my Department have estimated the cost in the full years referenced at €4 million but have been clear that this figure was an estimate as separate returns are not required.
An estimated additional tax expenditure of €0.5m in 2020 and €1.5m in 2021 is expected to arise on foot of the changes made to the scheme by Section 9 of the Financial Provision (Covid-19)(No.2) Act 2020. This increased the allowable expenditure from €1,000 to €1,500 in respect of e-bikes and €1,250 in respect of bicycles and allowed the purchase of a new bicycle every 4 years instead of 5.
161. Deputy Richard Bruton asked the Minister for Finance the local property tax yield estimated by the Revenue Commissioners as a consequence of the revised property valuations, and the revised rates of payment.; and if he will make a statement on the matter. [47528/21]
Amharc ar fhreagraRevenue has published an initial set of statistics in relation to Local Property Tax (LPT) for 2022, which is available on the Revenue website.
These statistics include Revenue’s projected estimate of the 2022 receipts, which stands at €538m, taking account of the rate adjustment decisions of Local Authorities. I am advised that these estimates are based on Revenue’s projection forward of property values to November 2021.
The actual LPT yield in 2022 will depend on the self-assessed valuations submitted by property owners, the number of new or previously exempt properties becoming liable and the number of property owners entitled to claim exemption from the tax or avail of a deferral of payment.
162. Deputy Richard Bruton asked the Minister for Finance the rates of local property tax that will apply in 2022; and the conditions under which any exemptions or reliefs can be claimed in 2022. [47529/21]
Amharc ar fhreagraI am advised by Revenue that property owners are required to self-assess the value of their properties at 1 November 2021 for Local Property Tax (LPT) purposes. This valuation will determine the amount of LPT they pay for the next ‘valuation period’ which runs from 2022 to 2025 inclusive. Revenue has provided an ‘interactive valuation tool’ and other guidance on the Revenue website to help people determine the value of their properties and meet their LPT obligations.
Details of the valuation bands and associated standard charges for the new ‘valuation period’ are outlined in the Table below. These standard rates can be adjusted by up to plus or minus 15% by each Local Authority. Further details of LPT valuations, rates and Local Authority adjustment factors are available on the Revenue website.
|
Band No. |
Band |
Standard Charge |
|
1 |
1 -200,000 |
90 |
|
2 |
200,000 -262,500 |
225 |
|
3 |
262,501 - 350,000 |
315 |
|
4 |
350,001 -437,500 |
405 |
|
5 |
437,501- 525,000 |
495 |
|
6 |
525,001-612,500 |
585 |
|
7 |
612,501 - 700,000 |
675 |
|
8 |
700,001- 787,500 |
765 |
|
9 |
787,501 – 875,000 |
855 |
|
10 |
875,001 – 962,500 |
945 |
|
11 |
962,501 – 1,050,000 |
1,035 |
|
12 |
1,050,001 – 1,137,500 |
1,189 |
|
13 |
1,137,501 – 1,225,000 |
1,408 |
|
14 |
1,225,001 – 1,312,500 |
1,627 |
|
15 |
1,312,501 – 1,400,000 |
1,846 |
|
16 |
1,400,001 – 1,487,500 |
2,064 |
|
17 |
1,487,501 – 1,575,000 |
2,283 |
|
18 |
1,575,001 – 1,662,500 |
2,502 |
|
19 |
1,662,501 – 1,750,000 |
2,721 |
*Properties with a market value greater than €1.75m should be calculated from the actual valuation rather than from a ‘valuation band’.
Certain exemptions from LPT will expire on 31 December 2021 and will not be available for the new ‘valuation period’ (2022-2025). These include properties purchased as a home during 2013, properties in unfinished housing estates, unsold properties held by builders or developers and new or unused properties purchased from a builder or developer. The current exemption in respect of pyrite damaged properties is being phased out and will not apply after 21 July 2023. However, any properties that qualify for the exemption up to that date will benefit for the full six-year period from the next valuation date (i.e. from the following 1 November).
While the current ‘pyrite exemption’ is being phased out, the legislation provides for an exemption from LPT for a period of six years for homes whose owners are eligible for the defective concrete blocks scheme. Also, owners of properties that are unoccupied due to extended periods of illness can apply for an exemption for the new ‘valuation period’ if their property is occupied by a person who is not a joint owner, such as a tenant, relative or friend. The full list of exemptions that apply for the new ‘valuation period’ are listed on the Revenue website.
Finally, the option to defer LPT liabilities remains in place for the new ‘valuation period’ where certain conditions are met. The rate of interest applicable to deferrals has been reduced from 4% per annum to 3% per annum from 1 January 2022, while the qualifying income thresholds are increased to €18,000 (from €15,000) for a single owner and €30,000 for a couple (from €25,000). Further details on deferrals of LPT are available on the Revenue website.
163. Deputy Brendan Howlin asked the Minister for Finance the options available to an Irish company that has been refused by the two largest banking companies in Ireland to open a business bank account; if his Department or any other State agency offers assistance in such cases to new companies; and if he will make a statement on the matter. [47599/21]
Amharc ar fhreagraAs Minister for Finance I have no role in commercial decisions made by banks. This includes a bank’s decision as to whether or not an account should be opened for an individual or business. The Central Bank has also confirmed that it has no specific powers in relation to this matter and that it cannot become involved in commercial arrangements between banks and their customers.
However, if the business is not satisfied with the way this matter has been handled they can make a complaint to the relevant banks; this can be done through the banks’ internal formal complaints procedure. If they are not happy with the outcome they may wish to refer the matter to the Financial Services and Pensions Ombudsman to have it independently investigated. All personal customers, unincorporated bodies, charities, clubs, partnerships, trusts, and limited companies with a turnover of €3,000,000 or less can complain to the Ombudsman. Investigations by the Ombudsman are free of charge to the complainant.
Contact details are as follows:
Office of the Financial Services and Pensions Ombudsman, Lincoln House, Lincoln Place, Dublin 2, D02 VH29
Tel: +353 1 567 7000
E-mail: info@fspo.ie
Website: www.fspo.ie
Credit Review is also available to assist those SMEs and farm borrowers that have had credit applications of up to €3 million refused or indeed an existing credit facility withdrawn or amended by the participating bank. SMEs can apply to Credit Review after exhausting the internal appeals process in the participating institution, which are currently AIB, BOI, Ulster Bank and Permanent TSB.
164. Deputy Emer Higgins asked the Minister for Finance the estimated level of profits NAMA is expected to generate. [47608/21]
Amharc ar fhreagra165. Deputy Emer Higgins asked the Minister for Finance if the projected profits of NAMA will exceed its subordinated debt. [47609/21]
Amharc ar fhreagraI propose to take Questions Nos. 164 and 165 together.
NAMA originally issued €1.593 billion in subordinated debt in consideration for 5% of the loans it acquired from the participating institutions. Payment of interest and ultimate redemption of this debt was subject to NAMA’s financial performance. NAMA’s profits have substantially exceeded the subordinated debt issued, with NAMA reporting retained earnings of €4.4 billion at end-2019. This enabled NAMA to fully redeem all outstanding subordinated debt by the first call date of March 2020, noting NAMA repurchased €529 million of the debt during 2018.
NAMA has consistently generated an annual profit since 2011. In 2020, NAMA’s profit, after tax, was €192 million. In terms of its overall contribution to the Exchequer on the completion of the Agency’s work, it is projected that NAMA will generate a lifetime surplus of €4.25 billion. Coupled with corporation tax paid of €400m, NAMA’s total dividend to the State from its operations will be of the order of €4.65bn of which €3.4 billion will be paid by end 2021.
166. Deputy Pearse Doherty asked the Minister for Finance if he will extend the banking levy to 2022; if so, the rate at which he will extend it and its revenue target; and if he will make a statement on the matter. [47657/21]
Amharc ar fhreagra167. Deputy Pearse Doherty asked the Minister for Finance the way any extension of the banking levy would interact with retail banks withdrawing from the Irish market; and if he will make a statement on the matter. [47658/21]
Amharc ar fhreagra168. Deputy Pearse Doherty asked the Minister for Finance the credit and other institutions that are currently subject to the banking levy. [47659/21]
Amharc ar fhreagraI propose to take Questions Nos. 166 to 168, inclusive, together.
The Financial Institutions ("Bank") Levy was introduced for the three-year period 2014 to 2016 with the purpose of enabling the banking sector to contribute to economic recovery. In the Finance Act 2016 the Levy was extended until 2021. That extension had been subject to a review being undertaken of the methodology used to calculate the levy, which included a public consultation with stakeholders in June 2016. That stakeholder exercise was inconclusive in terms of getting external agreement on a possible replacement to the DIRT-based methodology.
Ultimately the DIRT-based formula was retained but the then Minister for Finance took into account the suggestion that arose from the Public Consultation that the base year for calculating Levy liability should not be static, and announced in Budget 2017 the introduction of a rolling two-year series of base years.
In order to protect the annual €150 million yield based on the financial institutions' DIRT liability, the rate payable has increased from 35% in 2014 to 308% for 2021.
The Bank Levy is due to cease in 2021. I am currently considering whether to extend the levy beyond 2021, and if so the format it will take. In making my decision on this matter, the Deputy should note that I will be giving consideration to the significant changes taking place in the Irish banking sector, including the planned withdrawal of two retail banks from the market.
Finally you should note that the Levy applies to certain financial institutions operating in the State that are liable to pay DIRT. The names of those financial institutions, however, and the amounts paid by each one, is confidential taxpayer information in accordance with section 851A of the Taxes Consolidation Act 1997.
169. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 446 of 27 July 2021, if the revenue generated from the introduction of a 40% rate of capital gains tax on the disposal of assets made by persons in cases in which the gains accrued are in excess of individual incomes, including incomes generated by gains in excess of €200,000, €300,000, €400,000 and €500,000, was calculated on the basis of the farm restructuring relief, revised entrepreneur relief and the retirement relief applying to the income and capital gains tax returns for the tax year 2018 before the 40% rate applied; and if not, what the revenue generated would amount to in those circumstances in which the aforementioned reliefs were considered before the proposed 40% rate was applied on the respective thresholds. [47664/21]
Amharc ar fhreagraI am advised by Revenue that the estimates provided in my response to Parliamentary Question No. 446 were on the basis of net taxable gains returned and therefore after the impact of farm restructuring relief and retirement relief. They did not include any potential additional yield from increasing the rate for individuals claiming entrepreneur relief from 10% to 40%.
As information on the amount of retirement relief is not required on tax returns, it is not possible to provide an estimate of the potential yield from imposing a tax rate of 40% on any gains excluded by the application of this relief.
Due to the low number of individuals claiming farm restructuring relief for 2018 and Revenue’s obligation to preserve the confidentiality of taxpayers’ data, it is not possible to provide the estimated yield for imposing a tax rate of 40% on gains excluded by this relief broken down by income range.
In respect of entrepreneur relief, the additional yield from increasing the rate to 40% on gains where both the income and the gain of the individual exceed the relevant thresholds is as shown in the table below. These estimates are on the basis of tax returns for the year 2018, the latest year available, and do not include the impact of behavioural change nor do they take account of other reliefs that might potentially be availed of due to the limitation of entrepreneur relief.
|
Gross Income and Entrepreneur Relief Gain Limit |
Additional Estimated Gain €m |
|
€200,000 |
28 |
|
€300,000 |
12 |
|
€400,000 |
7 |
|
€500,000 |
4 |
