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Gnáthamharc

Tuesday, 23 Nov 2021

Written Answers Nos. 235-254

Departmental Communications

Ceisteanna (235)

Joe Carey

Ceist:

235. Deputy Joe Carey asked the Minister for Finance if a circular was issued in respect of the introduction of the personal to holder allowance by the Revenue Commissioners; if so, if this circular was sent to all employees prior to it coming into effect from the 1 January 2003; and if a copy of this circular, including the relevant number and date of issue associated with same, will be provided to this Deputy; and if he will make a statement on the matter. [56982/21]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the rationalisation and integration of General Service and Departmental Taxes grading structures in Revenue followed an extensive industrial relations negotiation and communications process more than 18 years ago, in the lead-up to Integration Day on 1 January 2003.

Revenue has informed me that the final integration proposal offer was published on RevNet, Revenue’s intranet, and was sent by email to all staff, in a period throughout which Revenue engaged in very extensive communications with staff and their representatives. Revenue does not hold postal or telephone records in this matter dating back to 2002/2003. Revenue has agreed to forward a copy of the letter to the Deputy.

The final proposal was balloted and agreed by all Trade Unions representing Revenue staff members and I am advised by Revenue that under the terms of the Integration Agreement, Officers who were on a Career Break or similar initiatives, on 1 January 2003 are not eligible to receive the Annual Personal to Holder (APTH) payment. This is because they were not serving in Revenue on 1 January 2003 (Integration Day), the designated date by reference to which eligibility for payment of the APTH was determined.

The terms of the Integration Agreement are very clear as regards eligibility and there is no provision for payment of the APTH other than under the terms of the Integration Agreement.

Departmental Schemes

Ceisteanna (236, 237, 238, 239)

Darren O'Rourke

Ceist:

236. Deputy Darren O'Rourke asked the Minister for Finance the cost of the cycle to work scheme in 2019 and 2020; the number of persons who availed of it in each year; and if he will make a statement on the matter. [57029/21]

Amharc ar fhreagra

Darren O'Rourke

Ceist:

237. Deputy Darren O'Rourke asked the Minister for Finance the estimated cost of increasing the cycle to work threshold for bicycles from the current €1,250 to €1,500; and if he will make a statement on the matter. [57030/21]

Amharc ar fhreagra

Darren O'Rourke

Ceist:

238. Deputy Darren O'Rourke asked the Minister for Finance the estimated cost of increasing the cycle to work threshold for ebikes from the current €1,500 to €1,750 and from €1,500 to €2,000; and if he will make a statement on the matter. [57031/21]

Amharc ar fhreagra

Darren O'Rourke

Ceist:

239. Deputy Darren O'Rourke asked the Minister for Finance the estimated cost of extending the cycle-to-work scheme to self-employed persons; and if he will make a statement on the matter. [57032/21]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 236, 237, 238 and 239 together.

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.

Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment.

Where a bicycle or safety equipment is purchased under the Cycle to Work scheme or through a salary sacrifice arrangement certain conditions must be met, for example:

- The exemption applies to the first €1,250 of expenditure incurred by the employer in obtaining a bicycle and related safety equipment. This exemption limit is increased to €1,500 for pedelecs or ebikes and related safety equipment. Employers may incur costs in excess of these limits, but any such excess will not qualify for the exemption and will be liable to tax. A salary sacrifice arrangement is subject to the same monetary limits.

- The bicycle and related safety equipment must be new and must be purchased by the employer.

- The bicycle and related safety equipment must be used by the employee or director mainly for the whole or part of their journey to or from work.

- An employee or director can only avail of the Cycle to Work scheme once in any 4 year period. A salary sacrifice arrangement is subject to the same time limits and any salary sacrifice arrangement entered into must be completed within a 12 month period.

The Cycle to Work scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment. Thus, where an employer-employee relationship does not exist, for example, in the case of self-employed individuals, students, retired individuals, job seekers or those in unpaid work, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements may only be entered into between an employer and a director or employee.

As the Deputy will be aware, the cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of its 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 or the cost of the scheme.

Tax expenditure reports prepared by my Department in 2020 have previously estimated the full year's cost at €4 million covering an estimated 20,000 employees but have been clear that these figures were estimates as separate returns are not required. This gives an estimated average tax relief of €200 per employee.

In the recent Report on Tax Expenditures 2021 published as part of Budget 2022, it was estimated that there would be 25,000 beneficiaries under the scheme at a cost of €5.5 million for a full year. (This recognised the increase in 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 four years instead of five, as provided for in the Financial Provisions (Covid-19) (No. 2) Act 2020). The Report is clear that these numbers are estimates as separate returns are not required under the cycle to work scheme. Increases in the thresholds as outlined by the Deputy would be likely to increase the numbers availing of the scheme, the potential benefit to employees, as well as the overall cost but the impact cannot be readily estimated.

Question No. 237 answered with Question No. 236.
Question No. 238 answered with Question No. 236.
Question No. 239 answered with Question No. 236.

Employment Schemes

Ceisteanna (240)

Alan Dillon

Ceist:

240. Deputy Alan Dillon asked the Minister for Finance if consideration will be given to a review of the temporary wage subsidy scheme guidelines, as in the case of a person (details supplied); and if he will make a statement on the matter. [57050/21]

Amharc ar fhreagra

Freagraí scríofa

I assume that the Deputy's query relates to the Employment Wage Subsidy Scheme (EWSS), which replaced the Temporary Wage Subsidy Scheme (TWSS) on 1 September 2020.

As previously outlined in my reply to Parliamentary Question 34287/21 in relation to the business in question, the EWSS is an economy-wide support to assist eligible employers meet employee wages where trade is negatively impacted by Covid-19. The EWSS is operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully meet the eligibility criteria for the scheme as set down in the legislation and to self-declare to Revenue that they correctly qualify. The eligibility conditions for the scheme require that a business has tax clearance and that a minimum 30% decline in business turnover or customer orders has occurred due to the impact of COVID-19.

For pay dates between 1 July 2021 and 31 December 2021, the legislation specifically provides that where a business commenced trading in 2019 (but not later than 1 November 2019), it must be able to demonstrate a minimum 30% reduction in either turnover or in customer orders by comparing the trading months in 2019 to the equivalent months in 2021. The legislation does not make any provision to apply a different comparison in circumstances where a business changes its operating model to an extent that the 30% reduction in turnover or customer orders is not achieved, for example where a pub begins serving food in addition to drinks as part of its trade.

I am advised by Revenue that the business in question registered for the EWSS on 15 September 2020 and received payments until it deregistered from the scheme on 5 October 2021. As the business started trading in April 2019, it is required to compare its turnover or customer orders for April to December 2021 against the equivalent period in 2019, to determine if there is a minimum 30% decline in turnover or business orders, for pay dates falling between 1 July 2021 to 31 December 2021.

From the information provided by the business, it is not currently experiencing a minimum 30% reduction in turnover or customer orders and as such is not entitled to the EWSS. The fact that the business started serving food as part of its trade in 2020 does not change the requirement to compare turnover or customer orders for 2021 against the equivalent period in 2019.

Finally to answer the Deputy’s specific question, I have no plans to review the eligibility criteria for the EWSS that applied since the introduction of the scheme.

Banking Sector

Ceisteanna (241)

James Lawless

Ceist:

241. Deputy James Lawless asked the Minister for Finance the actions his Department is taking to assist bank customers without smartphone technology to still have access to online shopping and other online banking services (details supplied); and if he will make a statement on the matter. [57073/21]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy may be aware, as Minister for Finance, I have no role in the commercial decisions made by any bank in the State. This includes banks in which the State has a shareholding.

Decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.

With regards to supporting customers with online banking activities, AIB have informed me that in order to comply with the EU’s Strong Customer Authentication (SCA) regulations, they have introduced additional measures around online purchasing. Personal customers do not require a smart phone to complete purchases online and more information on this can be found on the AIB website.

Business customers, however, are required to download the AIB Authenticator App in order to authenticate online purchases through either a smart phone or tablet.

Personal customers have a choice in terms of how they want to set up SCA for accessing online banking services, including alternatives to a smartphone or a mobile phone. These alternative options include:

- If customers don’t wish to use the App or don’t have a mobile phone, they can set up SCA with a Card Reader. The Card Reader is a security device that works in conjunction with the customer’s AIB Debit Card and PIN to generate unique security codes which are used to complete certain AIB Phone and Internet Banking transactions, including logon access. A Card Reader can be ordered through the 'Services & Settings' section on Internet Banking or by contacting AIB’s Customer Services team on 0818 724 724.

- Customers can contact AIB’s Customer Services team on 0818 724 724 to enquire about setting up SCA for online banking logon access via SMS text message.

Legislative Measures

Ceisteanna (242)

Catherine Murphy

Ceist:

242. Deputy Catherine Murphy asked the Minister for Finance the way in which members of the public may view and or inspect the Moneylenders, Credit and Mortgage Intermediaries Registers established under the Consumer Credit Act 1995; if his attention has been drawn to the limited time period in which persons may inspect this register; and if he will consider the use of a statutory instrument in order to open the registers on a full-time basis. [57095/21]

Amharc ar fhreagra

Freagraí scríofa

The Central Bank of Ireland has advised that the public can consult the "Register of Mortgage Credit Intermediaries/Mortgage Intermediaries" and the “Register of Moneylenders” by viewing them on the Central Bank of Ireland’s Registers website registers.centralbank.ie/DownloadsPage.aspx, and this website is open to the public on a full-time basis and is accessible by the public at any time.

The Competition and Consumer Protection Commission is responsible for the authorisation of credit intermediaries and its register of credit intermediaries is available on its website www.ccpc.ie/business/credit-intermediaries/authorised-credit-intermediaries/.

Departmental Data

Ceisteanna (243)

Louise O'Reilly

Ceist:

243. Deputy Louise O'Reilly asked the Minister for Finance the revenue received and by type, that is, VAT or import duty on imports from Britain by month in 2020; and if the data is not available, if the global figure for such data will be provided. [57147/21]

Amharc ar fhreagra

Freagraí scríofa

Great Britain was still a member of the Customs Union in 2020 and as such no customs duties were payable on the free movement of goods (within the Union).

The table below provides the total (global) VAT and custom duties collected on imports in 2020 and 2021. I am advised that information specific to Great Britain is not presently available. Revenue has advised me that it will be undertaking further analysis of the data sources used to compile these figures in due course and hopes to publish further detail in 2022.

Customs €m

VAT €m

Month

2020

2021

2020

2021

Jan

€24.9

€32.1

€164.1

€126.6

Feb

€26.9

€37.9

€147.7

€101.3

Mar

€26.7

€39.6

€135.2

€120.8

Apr

€21.4

€42.0

€124.1

€110.6

May

€19.0

€41.6

€120.9

€114.0

Jun

€13.1

€37.8

€106.6

€112.7

Jul

€13.5

€39.4

€116.3

€120.5

Aug

€16.7

€40.3

€135.7

€117.4

Sep

€21.9

€43.9

€143.6

€116.9

Oct

€30.1

€130.7

Nov

€34.1

€130.8

Dec

€24.7

€119.5

All data for 2021 are provisional and subject to revision.

Tax Code

Ceisteanna (244)

Catherine Murphy

Ceist:

244. Deputy Catherine Murphy asked the Minister for Finance the number of persons who paid the domicile levy in 2018, 2019 and 2020 and to date in 2021; the amount collected under the levy in the same period; the number of persons who are declared non-resident for tax purposes; the number of those who qualified for the domicile levy in 2018, 2019 and 2020 and to date in 2021; and if he will make a statement on the matter. [57166/21]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the number of persons who paid the Domicile Levy for the years 2017 to 2020 and the amounts paid is set out in the table below. Returns and payments in respect of 2021 are not due until 31 October 2022. The number of persons for 2018 and 2020 are expressed in the table as less than 10 to ensure taxpayer confidentiality is not compromised.

It is not a requirement to confirm tax residency when completing a Domicile Levy tax return, therefore it is not possible for Revenue to provide the information requested by the Deputy regarding the number of persons involved that are ‘declared non-resident for tax purposes’.

Year

No of persons

Amount collected (€m)

2017

12

1.41

2018

Less than 10

1.53

2019

10

1.77

2020

Less than 10

1.31

Tax Credits

Ceisteanna (245)

Richard Boyd Barrett

Ceist:

245. Deputy Richard Boyd Barrett asked the Minister for Finance the reason occupational therapists and physiotherapists working in front-line cancer services who require a fresh uniform on a daily basis and are required to both supply and launder their own uniform receive a tax credit of only €217 while their nursing colleagues (details supplied) receive a higher amount; if he plans to increase the tax credits for occupational therapists and physiotherapists in order to bring them in line with their nursing colleagues; and if he will make a statement on the matter. [57173/21]

Amharc ar fhreagra

Freagraí scríofa

The Deputy may be aware that Revenue conducted a comprehensive review of the administratively based Flat Rate Expenses (FRE) regime in 2018 and 2019. Revenue has advised me that the purpose of the FRE review, which involved engagement with relevant representative bodies, was to ensure that the expenses granted to each employment category remain justified and appropriate to modern day employments and work practices.

Each category of FRE allowance was examined separately in the light of the legislative requirements of section 114 of the Taxes Consolidation Act (TCA) 1997, which provides that expenses are tax deductible only if they are wholly, exclusively and necessarily incurred by the employee in the performance of the duties of his or her employment and are not reimbursed by the employer. Where the FRE amount does not meet the legislative basis for tax deductibility or can no longer be justified, it cannot be expected that the FRE amount will be retained. The outcome of the review was that some FREs were planned to be removed, others were due to be increased while some were planned to be decreased.

Revenue agreed to defer the implementation of any planned changes to the FRE regime initially until 1 January 2021, pending the outcome of a review relating to the tax deductibility of expenses in employment by the Tax Strategy Group (TSG), which is overseen by my Department. At my request, Revenue agreed to further defer the implementation of any planned changes to the FRE regime until 1 January 2022 as deliberations are continuing on a number of policy options, set out by the Tax Strategy Group (TSG), as to how the flat rate expense issue could be addressed. In light of the continuing difficulties arising from the effects of the COVID-19 pandemic, I propose to ask Revenue to defer implementation of the changes for a further period. This will provide Revenue with an opportunity to update the review during 2022, including re-examining the relative positions of those working in the healthcare sector who are required to supply and launder their own uniforms.

The Deputy should also be aware that apart from the FRE regime, all employees retain their statutory right to claim a deduction under section 114 TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent which the expenses are not reimbursed by the employer.

Departmental Bodies

Ceisteanna (246)

Eoin Ó Broin

Ceist:

246. Deputy Eoin Ó Broin asked the Minister for Finance the number of loan approvals by Home Building Finance Ireland in 2020 and 2021, with details on each approval including applicant, number of units, type of scheme, build to rent and so on; and the amount drawn down on each approval to date. [57246/21]

Amharc ar fhreagra

Freagraí scríofa

Since inception, HBFI has approved €664m in funding for over 3,000 new homes across 18 counties (as of 30 September 2021), comprising of approximately 62% houses and 38% apartments.

Of the units for which funding has been approved by HBFI up to the end of September 2021, 73% is for the private and PRS market (which also includes 107 units for Part v) and 27% for social housing (AHB and Local Authority).

Based on the information available for the period requested (2020 & 2021), detail around the number of facilities, the quantum of funding and the homes for which funding has been approved (up to the end of Q3, 2021) is set out in the table below:

Year

No. of Facilities

Amount Approved

No. of Units

Housing Type

Housing Category

Drawn to Date

House

Apart.

Social

Private

PRS

2020

21

€294.65m**

1,360

623

737

333

433

594

€72.25m*

2021

25

€259.90m**

1,107

749

358

238

595

274

€10.39m*

*There is a lag between funding being approved and it being draw down, with funds being drawn over the duration of the project.

**The amount approved in respect of any particular year can change due to amendments (for various reasons) to approved facilities. The amounts presented here are valid as of 30 September 2021.

Revenue Commissioners

Ceisteanna (247)

Cormac Devlin

Ceist:

247. Deputy Cormac Devlin asked the Minister for Finance if the Revenue Commissioners will be requested to consider extending the 25 November 2021 filing deadline for several weeks in view of the revised public health guidelines regarding working from home; and if he will make a statement on the matter. [57369/21]

Amharc ar fhreagra

Freagraí scríofa

Revenue has recently extended the filing date for self-assessed income tax returns to 5pm on Friday 19 November 2021 to assist taxpayers and tax practitioners with the difficulties arising from recent COVID-19 developments.

This is the second extension that Revenue has provided for this filing date having previously moved it from the statutory 31 October 2021 date to 17 November 2021 for all taxpayers who file and pay electronically.

It may be that the 25 November 2021 deadline referenced by the Deputy in his Question relates to the annual filing deadline for returns to the Companies Registration Office (CRO), which falls under the remit of the Department of Enterprise, Trade and Employment.

Insurance Industry

Ceisteanna (248)

Jennifer Murnane O'Connor

Ceist:

248. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if his attention has been drawn to the fact that hunting and point to point racing have seen their insurance options eliminated; his plans to address this issue; if the action plan for insurance reform has been completed; and if he will make a statement on the matter. [57378/21]

Amharc ar fhreagra

Freagraí scríofa

At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which prohibits Member States from intervening.

Nonetheless, this Government recognises the fact that a number of high-risk activity sectors, including equestrian pursuits, are facing difficulty in terms of affordability and availability of insurance. It has therefore prioritised the implementation of the Action Plan for Insurance Reform. As the Deputy may be aware, the first Action Plan Implementation Report, which was published in July, shows that significant progress has been made: 34 of the 66 actions contained therein have now been completed.

One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development and it is my hope that this trend will result in lower costs for businesses. As the insurance reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming met last week with the CEO’s of main insurance companies operating in Ireland, and he stressed the need for them to reduce premiums and increase their risk appetite to offer cover in new or neglected areas.

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. As part of that, action on insurance reform is being driven forward at the highest level. As the Deputy may be aware, the Cabinet Committee on Insurance Reform is tasked with overseeing the implementation of the Action Plan and is chaired by the Tánaiste. Work remains ongoing on a whole-of Government basis to ensure the timely implementation of the remaining elements of the Action plan. Of particular relevance is the fact that the Minister for Justice has signalled her intention to bring forward legislative changes to the duty of care. It is understood that these are at an advanced stage and it is hoped that they will have a significant impact on the issue of 'slips, trips and falls', which will significantly assist the sporting and outdoor activity sector as a whole.

Finally, I would like to note that it is my intention to continue to work with my Government colleagues and ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country.

Energy Conservation

Ceisteanna (249)

Holly Cairns

Ceist:

249. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to ensure that mortgage and loan providers offer loans for homeworkers to retrofit their houses for energy efficiency. [57390/21]

Amharc ar fhreagra

Freagraí scríofa

There are certain requirements which govern the provision of residential mortgage credit to consumers. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders and, under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.

Within this regulatory framework, the decision to grant or refuse an application for residential mortgage credit, irrespective of the precise purpose of the residential mortgage credit, remains a commercial matter for the individual lender. However, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Consumer Protection Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.

It should also be noted that if any person is not satisfied with the way a regulated mortgage provider has dealt with them in relation to an application for a mortgage, the consumer can complain directly to the regulated entity. If they are not satisfied with the response from the regulated entity, the borrower may refer their complaint to the Financial Services and Pensions Ombudsman who, if a valid complaint is made, will independently consider matter.

More generally, the Department the Environment, Climate and Communications is in the process of developing a residential retrofit loan guarantee scheme and, while the specific features of the scheme are still under development, such a scheme should help support lending by banks for retrofit purposes. It should also be noted that some of the main lenders are now offering mortgages at competitive rates for 'green' energy efficient residential mortgages.

Tax Credits

Ceisteanna (250)

Neasa Hourigan

Ceist:

250. Deputy Neasa Hourigan asked the Minister for Finance his plans to ensure that employers availing of the new tax credit for the digital gaming sector announced in Budget 2022 are asked to provide at a minimum the living wage to their employees and to accept the Workplace Relations Commission codes of practice as a condition for the tax relief; and if he will make a statement on the matter. [57442/21]

Amharc ar fhreagra

Freagraí scríofa

Finance Bill 2021 provides for the introduction of a new tax credit for the digital gaming sector. Digital gaming is a sector that has seen exponential global growth in the past decade, however this growth has not been reflected in industry growth here in Ireland. Ireland has the potential to utilise the synergies with our established film and animation sectors, to support employment in creative and digital arts in the State.

The relief will take the form of a corporation tax credit, the beneficiaries of which will be digital games development companies. The rate of the credit will be 32%, available on eligible expenditure of up to €25 million per game. The credit will be available on expenditure incurred in the design, production and testing stages of the development of qualifying digital games, provided certain conditions are met.

It is important to note that European Commission State aid approval will be required prior to the introduction of the tax credit. Therefore the Finance Bill 2021 legislation is being introduced subject to a commencement order, pending completion of the State aid approval process.

As the relief is a cultural one, in order to avail of the credit, a digital game development company must first apply to the Minster for Tourism, Culture, Arts, Gaeltacht, Sports and Media for a cultural certificate. As part of this certification process, a digital game development company will be required to complete an “Undertaking in respect of quality employment” in order to qualify for the relief. This undertaking is similar to the requirements in place under the Section 481 Film Tax Credit. It commits applicants to compliance with all relevant employment legislation. It is crucial that employee rights are upheld in all industries and the inclusion of this provision reinforces the importance of adhering to employment legislation in the digital gaming sector.

The “Undertaking for quality employment” does not include a requirement to adhere to Workplace Relations Commission Codes of Practice or to pay the Living Wage. However the undertaking commits applicants to have in place written policies and procedures in relation to grievances, discipline and dignity at work. I am satisfied that the conditions outlined in the “Undertaking in respect of quality employment” are effective in ensuring that recipients of the Tax Credit for Digital Games are operating in accordance with applicable employment law. If an applicant company does not adhere to the conditions specified in the undertaking, any credit claimed may be subject to recoupment by Revenue.

The Programme for Government includes a commitment to progress to a living wage over the lifetime of the Government. The Low Pay Commission is currently examining the issues around this commitment and will make recommendations on the best approach to achieving it within the lifetime of the Government. However as the Living Wage has no legislative basis and is therefore not a statutory entitlement, and as the Low Pay Commission has not yet made recommendations to Government regarding the development of the Living Wage, I do not believe its inclusion as a requirement for the Tax Credit for Digital Games is appropriate.

It is important to note that the monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise, Trade and Employment, through the Workplace Relations Commission. While the importance of employment rights will be reflected in the tax credit for digital game, the WRC remains the appropriate avenue to address non-compliance with employment rights legislation.

Departmental Schemes

Ceisteanna (251)

Thomas Pringle

Ceist:

251. Deputy Thomas Pringle asked the Minister for Finance if the comprehensive review of the disabled drivers scheme has taken place; if there are proposals to change outdated legalisation on the strict qualifying criteria for persons to avail of services through this scheme; and if he will make a statement on the matter. [57445/21]

Amharc ar fhreagra

Freagraí scríofa

The Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The current medical criteria medical criteria were included in the Finance Act 2020, by way of amendment to Section 92 of the Finance Act 1989. This amendment arises from legal advice in light of the June 2020 Supreme Court judgement that the medical criteria in secondary legislation was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989 (primary legislation).

As the Deputy will appreciate this Scheme confers substantial benefits to eligible persons and changing the medical criteria to more general mobility-focused criteria, would raise the already considerable cost of the Scheme in terms of tax foregone to the Exchequer. Any increase in the cost of the Scheme would require a concomitant increase in tax, reduction in public expenditure, or increase in the Exchequer deficit.

While I am very aware of the importance of this scheme to those who benefit from it, I am also aware of the disquiet expressed by members of this house and others in respect of the difficulties around access to the scheme.

Accordingly, I gave a commitment to the House that a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, would be undertaken.

In this context I have been working with my Government colleague, Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We are both agreed that the review should be brought within the wider review that was commenced in March 2020 under the auspices of the National Disability Inclusion Strategy, to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities. Its work was interrupted by the COVID-19 pandemic. Minister O’Gorman has confirmed that he has asked his officials to reconvene the working group established to carry out that review at the earliest opportunity and we are both agreed that this is the most appropriate forum for the review. With this in mind, my officials will work closely with officials from the Department of Children, Equality, Disability, Integration and Youth to progress this review, and on foot of that will bring forward proposals for consideration.

Rental Sector

Ceisteanna (252)

Ivana Bacik

Ceist:

252. Deputy Ivana Bacik asked the Minister for Finance if a tenant (details supplied) whose landlord is not resident in Ireland must pay tax on their rent directly to the Revenue Commissioners; and if this regulation is enforced in circumstances in which tenants live in properties which are let on a third-party platform such as a company (details supplied). [57479/21]

Amharc ar fhreagra

Freagraí scríofa

As no specific details were provided in respect of the tenant, the reply to the Question put by the Deputy is based on the generality of the provisions relating to non-resident landlords.

Section 18 Taxes Consolidation Act 1997 (TCA) provides that rental income earned by both Irish resident and non-Irish resident companies and individuals from a property situated in the State is taxable under what is known as Case V of Schedule D.

Where rents are paid directly by a tenant to a person whose usual place of abode is outside the State, the tenant is obliged to deduct income tax at the standard rate from the payment (sections 238(2) and 1041 TCA). The standard rate of income tax is currently 20%. The non-resident landlord can claim credit for the tax withheld by the tenant when declaring the income on a tax return.

If a tenant is paying rent to an Irish collection agent of a non-resident landlord, rather than directly to the landlord, the tenant is not obliged or entitled to deduct income tax from the rent. However, the landlord is assessable and chargeable to income tax in the name of the Irish collection agent (section 1034 TCA).

The third-party platform mentioned by the Deputy is normally used for short-term holiday lettings, and income from such lettings is not taxed under Schedule D Case V. If the person who owns the property is regularly letting it out for short-term lettings, the income is treated as trading income (Schedule D Case I) and does not come under the withholding tax regime mentioned above in sections 238(2) and 1041 TCA.

Revenue receives details of payments made via third-party platforms by virtue of section 888 TCA.

Public Sector Staff

Ceisteanna (253, 256)

Cathal Crowe

Ceist:

253. Deputy Cathal Crowe asked the Minister for Public Expenditure and Reform if public service staff were put on reduced hours or temporary lay-off during the Covid-19 pandemic. [57125/21]

Amharc ar fhreagra

Violet-Anne Wynne

Ceist:

256. Deputy Violet-Anne Wynne asked the Minister for Public Expenditure and Reform if public servants were put on short-time during the Covid-19 period; and if he will make a statement on the matter. [57456/21]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 253 and 256 together.

My Department developed Guidance and FAQs on working arrangements and temporary assignments during COVID-19 for civil and public service employers. This Guidance and FAQs document has been continually updated to reflect public health and Government policy throughout the COVID-19 pandemic. The FAQs have been prepared to assist employees and management in the Civil and Public Service to understand the process, rules and expectations associated with work arrangements during the COVID-19 across the public service.

In order to continue to facilitate physical distancing and public health requirements, Civil and Public Service employers are providing for working from home where possible, and continuing temporary alternative arrangements e.g. flexible shifts, staggered hours, longer opening hours, blended working patterns, weekend working etc., where feasible.

An example of this flexibility is where an employee is required to restrict their movements as a close contact. In this case the employer should facilitate working from home. If remote working in an employee’s current role is not feasible, then the assignment of work may be outside of their usual core duties or they may be given another role. Employees must cooperate with all such flexibilities while they are restricting their movements. In all such cases, employees remain available for work whilst at home. It should be noted that this arrangement does not apply to employees where a quarantine period is required as a result of travel. For full details please see the link to the Guidance: www.gov.ie/en/news/092fff-update-on-working-arrangements-and-leave-associated-with-covid-19-fo/.

National Monuments

Ceisteanna (254)

Patrick Costello

Ceist:

254. Deputy Patrick Costello asked the Minister for Public Expenditure and Reform the details of plans to cut trees in the War Memorial Gardens, Islandbridge, Dublin 8; and if he will make a statement on the matter. [57363/21]

Amharc ar fhreagra

Freagraí scríofa

The Irish National War Memorial Gardens are of National Significance and the Office of Public Works has been responsible for their management and maintenance, since they were built in the 1930’s. The gardens are a place of quiet serenity, reflection, and remembrance. In excess of 400,000 members of the public visit the gardens on an annual basis.

Following a visual inspection by the Park Manager at Irish National War Memorial Gardens, who had raised concerns with regard to the safety of the trees on the entrance avenue, an independent Arborist was commissioned to undertake a full technical survey of the trees. This survey was reviewed on site by the Chief Park Superintendent, who agreed with the finding of the consultant arborist. Twelve trees, mainly Norway and Silver Maples along the entrance avenue were identified for felling, due to decay caused by fungal infections such as Ganoderma and also due to their weakened structural crowns. Unfortunately, these trees pose an unacceptable risk to public safety, on this very busy pedestrian and vehicular avenue and for this reason, the tree felling is essential.

The Office of Public Works will plant a new avenue of 18 trees, Acer x fremanii ‘Autumn Blaze’ over the coming season on the entrance road to the gardens, in addition to a new footpath. This new avenue will replace those trees lost over the last number of years and the current dangerous trees. The single species avenue will provide a formal approach to the gardens as was the original design intention. The species selected is fast growing, has great autumn colour, will add to the biodiversity and at maturity will be 40-50 ft. tall.

OPW has a Tree Safety Management Policy for National Historic Properties including the Irish National War Memorial Gardens, which balances the need for safety with the conservation of the trees on a risk assessment basis, at all their sites. Whether trees are managed for their cultural, amenity, heritage or environmental benefits, their management must be balanced and proportionate to the actual risks from trees. Trees naturally lose branches or may fall over a period of time. OPW only fells trees when absolutely necessary and in the public interest.

The new avenue of trees will be a significant improvement to the setting of the Irish National War Memorial Gardens, while improving public safety and universal access.

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