Tuesday, 22 Mar 2022

Written Answers Nos. 238-262

Tax Code

Ceisteanna (238)

Cathal Crowe

Ceist:

238. Deputy Cathal Crowe asked the Minister for Finance if his Department will address the current VAT regime that charities are subject to; and if he will make a statement on the matter. [14128/22]

Freagraí scríofa

Minister for Finance

As the Deputy is aware, the VAT Compensation Scheme for Charities was introduced in Budget 2018 to reduce the tax burden on Charities and partially compensate them for the VAT incurred in delivering on their charitable purpose. 

A total annual capped fund of €5m is available for payment under the Scheme and where the total amount of eligible claims from all Charities in a year exceeds the capped amount, claims are paid on a pro-rata basis.

A review was undertaken of the operation of the scheme after its third year and a copy of the review is available as an annex in the Tax Strategy Group paper on VAT published in 2021. The paper can be found at www.gov.ie/en/collection/d6bc7-budget-2022-tax-strategy-group-papers/.

On foot of this review, and on the basis of a request by the charity sector, to future proof the scheme to ensure no single claim disproportionately draws on the Scheme in favour of any one charity, I introduced a maximum claim amount of €1m.

Any future changes in the operation of the scheme will be considered as part of the normal budgetary process.

Question No. 239 answered with Question No. 235.

Covid-19 Pandemic

Ceisteanna (240)

Jackie Cahill

Ceist:

240. Deputy Jackie Cahill asked the Minister for Finance if he will consider allowing private healthcare operators including pharmacies to make a tax-free payment to staff on a once-off basis without the payment being subject to PAYE, PRSI and USC (details supplied); and if he will make a statement on the matter. [14148/22]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, the Government agreed to give a recognition payment of €1,000, for eligible frontline health and ambulance workers. An equivalent payment will be provided for relevant staff in private sector nursing homes and hospices that were affected by Covid-19. Policy in relation to the payment is, in the first instance, a matter for the Minister for Health. However, as the Deputy may be aware, section three of the Finance (Covid-19 and Miscellaneous Provisions) Bill 2022 provides that the payment would not be subject to income tax, USC or PRSI.

I have no plans at present to provide for the Deputy's proposal.

World Economic Forum

Ceisteanna (241)

Carol Nolan

Ceist:

241. Deputy Carol Nolan asked the Minister for Finance if he or officials from his Department have engaged in any form of communication with the World Economic Forum or representatives of the World Economic Forum including by phone call, webinar, email or any event organised by the World Economic Forum from 1 January 2019 to date; if so, the details of same; and if he will make a statement on the matter. [14159/22]

Freagraí scríofa

Minister for Finance

The Annual Meetings of the World Economic Forum (WEF) normally take place in Davos, Switzerland in January of each year. An invitation to the Minister for Finance is usually received annually and officials in my Department liaise with the organisers regarding ministerial attendance and participation in panel discussions. I last attended the Annual Meeting of the World Economic Forum in January of 2019 when I participated in a panel entitled “Rethinking Taxes: Creating a Fair and Balanced System”. I also attended an IDA reception, and held a number of bilateral meetings with key international partners in the financial and political sphere.  

I did not attend the Annual Meeting in 2020 as the General Election was called around that time. Covid restrictions over the intervening period have meant that the Annual Meetings have not taken place since 2020. There has however been communication between the organisers and officials in my Department at various stages during that period when the WEF was intending to progress with an Annual Meeting, though this did not proceed due to the on-going Covid situation globally. In November 2021, I had a short courtesy phone call with the recently appointed Deputy Head of Europe and Eurasia, Andrew Caruana Galizia, to discuss my possible participation at future meetings, if my diary commitments permit.

The Annual Meeting for 2022, scheduled for January this year, was postponed again to 22-26 May 2022 in Davos. Officials from my Department will continue to liaise with the organisers regarding my potential participation at this year's Meeting.

Question No. 242 answered with Question No. 228.

Ukraine War

Ceisteanna (243)

Gerald Nash

Ceist:

243. Deputy Ged Nash asked the Minister for Finance his plans to review section 110 provisions given that Russian companies outside of the banking sector accounted for over 60% of the €35.5 billion in assets held in Irish special purpose vehicles used for funding purposes at the end of 2021 (details supplied); and if he will make a statement on the matter. [14309/22]

Freagraí scríofa

Minister for Finance

It is first important to note that Russia’s war is illegal, immoral and unjustified. Ireland’s support for Ukraine’s sovereignty and territorial integrity is unwavering.

We have been working closely with our EU partners and fellow Member States in the adoption of sanctions in response to Russia’s violation of Ukraine’s territorial integrity and all aspects of the EU sanctions packages agreed to date, including those related to the financial sector, have been implemented immediately.

Sanctions will not be cost-free for the EU and Ireland, but Russia’s behaviour leaves no alternative. Entities in the Financial Services Sector in Ireland, including section 110 special purpose entities, are within scope of the sanction measures agreed unanimously by the 27 EU Member States. The sanctions apply in respect of the provision of funds either directly or indirectly to sanctioned persons, as set out in Council Regulation (EU) No 269/2014.

Central Bank data shows that the direct exposures of the Irish Financial System as a whole to Russia are very small. A statistical release on the direct financial links to Russia by economic sector, issued on 4th March and incorporating the latest available data on financial services sectors, stated that, at end-2021, Special Purpose Entities (SPEs) had holdings of €37.1 billion of Russian-issued assets. There were 33 Russian sponsored SPEs identified with total assets of €35.5 billion, accounting for 8% of the non-securitisation SPE sector. Russian-issued assets held by regulated investment funds represented 0.3% of total assets held by regulated investment funds (or €11.5 billion in total). The exposure of on and off balance sheet financial assets and liabilities to Russian counterparties held by Irish authorised banks represented 0.1% of total (or €1.7 billion in total).  Russian-issued securities held by Insurance companies represented 0.1% of the sector's total assets (or €97 million in total).

Section 110 is intended to create a tax neutral regime for bona-fide securitisation and structured finance purposes.  Securitisation involves the creation of tradeable securities out of an income stream or projected future income stream generated by financial assets.  Securitisation allows banks to raise capital and to share risk and, by providing a repackaging and resale market for corporate debt, it lowers the cost of debt financing.  Such financing is useful for the productive economy as it can underpin the supply of finance to industries and companies in Ireland, Europe and further afield. 

Ireland is not unique in having a specific regime for securitisations. The importance of securitisation has been recognised by the European Commission through their work on the Capital Markets Union.  A main objective of the Capital Markets Union is to build a sustainable securitisation regime across the European Union.  It is important to note that there is nothing specific in the Section 110 regime that is of particular relevance to Russian investors or originators, and such vehicles are fully in scope of the sanctions regime.

Notwithstanding this, my officials monitor the regime on an ongoing basis, and where issues of concern have been identified I have taken steps to address them.

Housing Schemes

Ceisteanna (244)

Eoin Ó Broin

Ceist:

244. Deputy Eoin Ó Broin asked the Minister for Finance the details of all loans approved and drawn down and projects funded in tabular form; the number of units in each project; and the average cost to purchase or rent one of these units funded through Home Building Finance Ireland. [14358/22]

Freagraí scríofa

Minister for Finance

Home Building Finance Ireland was established to increase the supply of new homes for owner-occupiers, renters and social housing by providing funding on commercial terms to housebuilders for commercially viable developments throughout Ireland.  To December 2021, HBFI has approved funding of €835m across 71 projects in 18 counties.  This funding will support the building of 3,729 new homes. 

Drawdowns have already taken place in respect of 57% of the facilities approved at end December 2021, with construction in progress or completed. There is a lag between funding being approved and it being drawn down, with funds being drawn over the duration of the project.

Information on individual loan facilities is commercially sensitive and cannot be disclosed. HBFI like any lender has confidentiality obligations to its borrowers.   

I am informed that 43% of all homes funded are for owner occupiers, 30% for renters, 23% for social housing and 4% for Part V. In line with the market, 96% of homes being built for Owner Occupiers are houses and 4% apartments.  In the case of renters, 98% are apartments and 2% houses.

HBFI provides funding for the cost of the construction of new homes. The average sales price expected when the homes are built and sold individually on the market is €319k. Homes that are being built for private rental are sold in bulk when completed and HBFI’s loan is repaid.  Therefore, HBFI does not have any ongoing exposure to the rental market.

Housing Schemes

Ceisteanna (245)

Eoin Ó Broin

Ceist:

245. Deputy Eoin Ó Broin asked the Minister for Finance if he will outline all investments by the NTMA-ISIF for each of the five years 2018 to 2022 in residential development; the breakdown of the location and number of units in each that are funded; and the average price to rent or buy the units provided in each local authority area. [14359/22]

Freagraí scríofa

Minister for Finance

The Ireland Strategic Investment Fund (ISIF) has informed me that it is a commercial investor in businesses, platforms and projects which support the delivery of new homes in Ireland.  These investments are in private market commercial operations, typically featuring a significant quantum of third-party investment.  As such, the activities of individual investments are commercial matters and as such it is not appropriate for me to comment on them.  However, ISIF has provided me with the following information.

ISIF invests on a commercial basis in the Irish homebuilding sector to catalyse the development of starter and mid-market homes across a range of dwelling types and tenure.  Its overarching objective is to increase supply and optimise the existing housing stock. The Fund achieves this by targeting financing gaps in the marketplace which are an impediment to supply, and by crowding in third party capital. Furthermore, ISIF seeks to embed resilient sources of capital in the market to help ensure a robust funding environment to support Irish homebuilding through the cycle.

In total ISIF has committed over €950m to housing related investments. These investments have supported over €3.3bn of homebuilding activity, which cumulatively are expected to deliver over 15,000 new homes by 2025.

ISIF has directly supported platforms in the areas of development finance for homebuilding, on-site infrastructure finance and build to rent.  These investments have contributed significantly to increasing the availability and robustness of funding for Irish homebuilding.

In 2016 ISIF funded the establishment of Activate Capital, a new lender in the Irish market focused on the provision of construction finance to Irish homebuilders at a time when this market was highly constrained.  Reflecting the success of this investment and an on-going need in the market, in 2020, ISIF rolled over its initial investment in Activate to enable it to continue to support homebuilding nationwide.  Activate reports that since inception it has funded construction on 62 sites, predominantly focused on mass market homes. All sites funded to date have the capacity to deliver 15,000 new homes. 

ISIF has also invested to support the development of new homes by small and mid-sized developers nationally through Pearl Residential Equity Fund which is targeting the delivery of 2,000 new homes.  

ISIF has been active in the provision of infrastructure funding which can unlock landbanks and accelerate the delivery of new homes.  In Cherrywood Co. Dublin, ISIF invested in the up-front provision of infrastructure such as roads, water, parks to unlock the site which is now in production and will result in the construction of over 4,000 new homes.  ISIF has now supported the roll out of this model more broadly, through a platform called Housing Infrastructure Services Company (“HISCo”).

In the period 2017-2019, ISIF sought to support new apartment construction and rental supply at a time when supply was constrained.  The largest commitment in this segment was €140m made to Irish Life Residential Fund, an evergreen fund focused on forward purchasing and forward funding of new apartments for rent. This means that ISIF’s investment in this segment is entirely focused on new construction.  

In total, this segment represents c.25% of ISIF’s total investment in Irish homebuilding and has stimulated the development of over 2,800 new homes for rent in the greater Dublin area through investments with Irish Life, Avestus, Niche and Urbeo.  More recently, in 2021 ISIF invested €25m with Harrison Street with the objective of supporting the development of new Purpose-Built Student Accommodation in Ireland.

The implementation of the Pandemic Stabilisation and Recovery Fund in 2020/2021 resulted in a reduction of investment in new homebuilding opportunities.  However, ISIF has a strong pipeline of new opportunities in this area and continues to be focused on investing in opportunities which provide risk capital and infrastructure solutions to Irish homebuilders.

Banking Sector

Ceisteanna (246)

Eoin Ó Broin

Ceist:

246. Deputy Eoin Ó Broin asked the Minister for Finance the status of his Department's engagement with an organisation (details supplied) with regard to the status of bank debt versus State debt in the affordable housing scheme; and the implications for the taxpayer if the banks demand that their debt takes priority over the State equity share in cases of default by the home buyer. [14364/22]

Freagraí scríofa

Minister for Finance

The Affordable Housing Act 2021 laid the foundation for two new affordable purchase schemes: the first to be delivered via Local Authorities and the Land Development Agency, and the second a national 'First Home' shared equity scheme supporting purchases in the private market.

On the basis that the purchaser of a home will generally require a mortgage to secure a home, I can confirm that in the development of both schemes, the Department of Housing, Local Government and Heritage (DHLGH) is engaging with the Banking and Payments Federation Ireland (BPFI) and its members. 

The First Home Scheme will be delivered via a strategic partnership between the State and participating mortgage lenders.  Officials from my Department are assisting the DHLGH in relation to the development of the First Home Scheme.

Both of the affordable purchase schemes will use an equity support model to assist eligible purchasers.  In the case of Local Authority Affordable Purchase, this equity stake will be equivalent to the reduction in price from the full market value of the home and the stake will be held by the Local Authority. 

In the case of the national First Home scheme, the equity stake will be the funding provided to bridge the gap between someone's maximum mortgage and the price of a new home (within regional price ceilings).

It is envisaged that purchasers will use bank mortgages or the Local Authority Home Loan with these schemes, just as in any home purchase, so the equity stake will therefore rank behind whatever loan is secured on the property. This is because the equity support is not a loan, a second mortgage, or any form of 'State debt', so it cannot take precedence over the debt on the property.

Ukraine War

Ceisteanna (247)

Eoin Ó Broin

Ceist:

247. Deputy Eoin Ó Broin asked the Minister for Finance if he has raised the issue of IMF debt cancellation for Ukraine as part of the international assistance to Ukraine. [14365/22]

Freagraí scríofa

Minister for Finance

As the Deputy may be aware, as Minister for Finance I am Ireland’s Governor to a number of global and European International Financial Institutions (IFIs) including the World Bank, the IMF, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) as well as a number of other regional multilateral development banks. The IFI community has reacted quickly to provide vital financial support for Ukraine. On 9 March, the Executive Board of the IMF approved a disbursement of US$1.4 billion under the Rapid Financing Instrument (RFI) to help Ukraine meet urgent financing needs and mitigate the economic impact of the war. This follows a US$723 million package of support approved by the World Bank; a €668 million immediate financial support package for Ukraine to be provided by the EIB; and a €2 billion ‘resilience package’ approved by the EBRD.

In the absence of full funding by bilateral donors, debt cancellation or debt forgiveness by the IMF risks impairing the Fund's financial integrity which, in turn, could jeopardise future financing for Ukraine and other countries in need. Instead, the IMF’s ability to provide debt service relief on its loans to members must be underpinned by donor grants for the repayment of those loans.  For example, during the COVID-19 crisis, the IMF used the donor-supported Catastrophe and Containment Relief Trust to provide debt relief totalling almost US$1 billion to cover debt obligations owed to the Fund between April 2020 and April 2022.

Finally, I can assure the Deputy that my Department has very clearly articulated the Irish Government position in relation to what is happening in Ukraine. We are working with our EU partners and other like-minded members of these IFIs in supporting these institutions’ evolving response to the situation and their initiatives to provide support and financial assistance to the government and people of Ukraine.

Tax Yield

Ceisteanna (248)

Verona Murphy

Ceist:

248. Deputy Verona Murphy asked the Minister for Finance the total amount of transactional tax paid on gaming in 2019, 2020 and 2021; the proportion in each year paid in respect of online and retail activity; the tax heads under which any such tax has been levied; if the tax is applied by all entities that are licensed to provide gaming; the equivalent tax raised by way of the betting duty in each of the years in respect of activities attracting the betting duty; his assessment of the scale of gambling activity that falls outside the scope of the betting duty; and if he will make a statement on the matter. [14368/22]

Freagraí scríofa

Minister for Finance

The regulation of gambling in Ireland is the responsibility of my colleague, the Minister for Justice. Gambling regulation is currently provided for principally by the Betting Act 1931 (as amended) and the Gaming and Lotteries Act 1956 (as amended).

Gaming is defined by section 2 of the Gaming and Lotteries Act 1956 as playing a game (whether of skill or chance or partly of skill and partly of chance) for stakes hazarded by the players. This contrasts with betting where a bet is placed on the outcome of a competition, sporting activity or some other unpredictable future event.

Gaming, including eGaming and the playing of gaming machines and amusement machines, is subject to VAT at the standard rate, currently 23%. I am advised by the Revenue Commissioners that traders are not required to separately identify the yield generated from a particular activity or product type on their VAT return. Therefore, it is not possible to provide data on the amount of VAT specifically collected from gaming as the Deputy has requested.

Betting activities are exempt from VAT in accordance with Article 135(1)(i) of VAT Directive 2006/112/EC. However, in Ireland betting activity is subject to other taxes.  Sections 67 and 67A of the Finance Act 2002 provide for Betting Duty at a rate of 2%, in respect of every bet entered into by bookmakers with persons in the State including bets entered into by remote means. In addition, section 67B of the Finance Act 2002 provides that remote betting intermediaries are liable to Betting Intermediary Duty, at the rate of 25%, on commission charges. The total Betting Duty and Betting Intermediary Duty receipts in the years 2019, 2020 and 2021 are as follows:

Year	Retail Betting €	Online Betting €	Betting Intermediary €	Total €
2019	51,889,431	40,622,117	2,501,108	95,012,656
2020	39,021,093	44,935,012	2,815,335	86,771,440
2021	25,280,000	59,710,000	4,140,000	89,130,000

There are also specific licensing requirements for betting and gaming activities. All bookmakers, remote bookmakers, and remote betting intermediaries are required to hold a valid excise licence. Similarly, where the playing of gaming and amusement machines takes place, the premises must have a valid gaming licence, or an amusement permit and all machines located in those premises must be appropriately licensed as gaming or amusement machines. Currently there are no licensing requirements for eGaming. Registers of all licences issued are published on Revenue’s website.

The Gaming and Lotteries (Amendment) Act 2019 was introduced as an interim measure pending the comprehensive reform of gambling in Ireland. The Government is committed to the modernisation of our licensing and regulatory environment for gambling. In this regard, I am aware that in line with the Programme for Government commitment work is ongoing in Department of Justice to comprehensively reform the regulation of gambling activities and to provide for an independent Gambling Regulator. The Gambling Regulator will be responsible for enforcing appropriate licensing and regulatory measures in respect of all gambling activities, including online.

Banking Sector

Ceisteanna (249)

Thomas Gould

Ceist:

249. Deputy Thomas Gould asked the Minister for Finance if he will consider requesting that banks reduce or end returned direct debit charges given the rising cost of living and the struggle experienced by some in paying bills. [14393/22]

Freagraí scríofa

Minister for Finance

As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis.

While the charging of fees is a commercial decision for regulated entities, within the parameters of the regulatory framework, under Section 149 of the Consumer Credit Act, 1995 (as amended) (‘the Act’), credit institutions must notify the Central Bank if they wish to:

- Introduce any new customer charge for providing certain services; or

- Increase any existing customer charge for providing certain services.

Each notification received by the Central Bank is assessed and robustly challenged in accordance with the specific criteria set out in Section 149 of the Act. Having considered the proposed charge(s) under the assessment criteria as set out under the legislation, the charges are either rejected, approved at lower levels than requested by the credit institution, or approved in full.  Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive charges at their discretion for commercial or competitive reasons.

Separately, the European Union (Payments Accounts) Regulations 2016 requires that a consumer must be provided with a Fee Information Document setting out all fees linked to an account, in good time before entering into a framework contract. A consumer must also be provided, at least annually, with a Statement of Fees, setting out all fees incurred in respect of the account. These requirements ensure the consumer is fully informed of all fees linked to a payment account.

If customers are unhappy with their current account provider for any reason, including cost, they have the right to switch to a different provider. The Competition and Consumer Protection Commission operates a comparison tool for current account fees on its website, this can be used by consumers to find the account which best meets their needs.

Credit Unions

Ceisteanna (250, 259, 260, 268)

Thomas Pringle

Ceist:

250. Deputy Thomas Pringle asked the Minister for Finance if he will establish a policy taskforce which was requested by an organisation (details supplied) to enable the delivery of the programme for Government commitment to enable the credit union movement to grow as a key provider of community banking in the country; and if he will make a statement on the matter. [14410/22]

Brendan Smith

Ceist:

259. Deputy Brendan Smith asked the Minister for Finance if he will consider the issues raised in correspondence by an organisation (details supplied); and if he will make a statement on the matter. [14428/22]

Niamh Smyth

Ceist:

260. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if he will address the issue; and if he will make a statement on the matter. [14453/22]

Michael Lowry

Ceist:

268. Deputy Michael Lowry asked the Minister for Finance when he will honour a commitment in the programme for Government to enable the credit union movement to grow as a key provider of community banking in the country (details supplied); and if he will make a statement on the matter. [14681/22]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 250, 259, 260 and 268 together.

This Government recognises the importance of credit unions. The Programme for Government contains commitments to:

- Review the policy framework within which Credit Unions operate;

- Enable and support the Credit Union movement to grow; and

- Support Credit Unions in the expansion of services, to encourage community development.

With regard to fulfilling the commitments in the Programme for Government for credit unions, the Review of the Policy Framework is in its final stages following a recent engagement session with all the credit union representative bodies on the emerging proposals.

Legislative proposals arising will go to Cabinet shortly. The proposals being considered aim to better position credit unions to grow as a key provider of community banking.

In developing these proposals, Minister of State Fleming conducted extensive stakeholder engagement, meeting with the representative bodies, collaborative ventures, service providers, the Credit Union Advisory Committee, the Registrar of Credit Unions and individual credit unions. The information gained from these meetings will help inform the next steps taken by Government. 

In terms of supporting the sector to provide essential financial services to local communities, the following are some recent developments which highlight the potential of the sector to grow and fulfil a role in relation to community banking. 

Lending and Investment

The Central Bank has in recent years reviewed both the lending and investment frameworks. Since 1 January 2020, credit unions now have a combined capacity to provide up to €1.1 billion in additional SME and mortgage loans, with further capacity available to credit unions who can comply with certain conditions or on approval by the Central Bank. As of September 2021, credit unions had a combined mortgage and SME loan book of circa €387 million, an increase of 19% year-on-year.  

Credit unions are permitted to place their surplus funds that have not been lent to members in a range of investments including Tier 3 Approved Housing Bodies (AHBs). Three credit union backed funds have received approval from the Central Bank. Credit unions will be able to invest up to €900 million in these regulated funds, which will subsequently lend to AHBs. 

SME Lending 

Nineteen credit unions were approved in early 2021 for participation in the Covid-19 Credit Guarantee Scheme. Further, in November five credit unions were announced as participants in the Brexit Impact Loan Scheme (BILS).

In total, SME lending has grown 6.9% year on year to end September 2021.  Further development of SME lending in a controlled manner could also assist credit unions in growing and diversifying their loan book.

Access to Finance for Retrofit 

The Government significantly increased the funding available to support retrofit. My officials have been engaging with stakeholders to support increased credit union participation in retrofit loan schemes. 

Other Services

Other than member savings and lending, in order to provide “additional services”, a credit union must receive approval from the Central Bank. 

68 credit unions are approved to provide current accounts. 

The Central Bank has prescribed a list of exempt services which may be provided without requiring approval. The Central Bank is undertaking a review of the Exempt Services Schedule to ensure that the services listed reflect the current financial services landscape. The Central Bank has commenced a public consultation seeking views from stakeholders on the proposed changes arising from this review.

Revenue Commissioners

Ceisteanna (251, 252, 253, 254, 255, 256, 257, 258)

Neale Richmond

Ceist:

251. Deputy Neale Richmond asked the Minister for Finance the average waiting times for the Revenue Commissioners' jobs and pensions phone helpline; and if he will make a statement on the matter. [14420/22]

Neale Richmond

Ceist:

252. Deputy Neale Richmond asked the Minister for Finance his plans for the Revenue Commissioners' public offices to reopen following the lifting of Covid-19 restrictions; and if he will make a statement on the matter. [14421/22]

Neale Richmond

Ceist:

253. Deputy Neale Richmond asked the Minister for Finance his plans to extend the operating hours of the Revenue Commissioners' jobs and pensions phone helplines beyond the current 9.30 a.m. to 1.30 p.m. hours to deal with the high volume of calls; and if he will make a statement on the matter. [14422/22]

Neale Richmond

Ceist:

254. Deputy Neale Richmond asked the Minister for Finance the total number of queries dealt with by the Revenue Commissioners in each of the years 2018 to 2021 and to date in 2022, in tabular form; if these calls are from businesses or individuals; and if he will make a statement on the matter. [14423/22]

Neale Richmond

Ceist:

255. Deputy Neale Richmond asked the Minister for Finance the average response time to queries submitted to the ROS online MyEnquiries service; and if he will make a statement on the matter. [14424/22]

Neale Richmond

Ceist:

256. Deputy Neale Richmond asked the Minister for Finance the number of queries submitted to the ROS MyEnquiries service in each of the years 2018 to 2021 and to date in 2022; and if he will make a statement on the matter. [14425/22]

Neale Richmond

Ceist:

257. Deputy Neale Richmond asked the Minister for Finance when the current virtual video appointment was established by the Revenue Commissioners; the average wait time for a virtual video appointment; and if he will make a statement on the matter. [14426/22]

Neale Richmond

Ceist:

258. Deputy Neale Richmond asked the Minister for Finance the number of virtual video appointments facilitated by the Revenue Commissioners since its inception; and if he will make a statement on the matter. [14427/22]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 251, 252, 253, 254, 255, 256, 257 and 258 together.

I am advised by Revenue that the total number of taxpayer queries dealt with through its telephone and MyEnquiries service channels for the years 2018 to 2022 (to date) is set out in the table below. Revenue has also confirmed that approximately 68% of queries received through MyEnquiries were responded to within 5 days in 2021, while over 90% were responded to within 20 days. (Revenue’s Customer Service Standard across all service channels is within 20 days, or 25 days during peak periods.) Taxpayer queries where further information is needed or where there are complex issues involved can sometimes take longer than the normal 20 day/25 day turnaround time.

Regarding the average waiting times for the PAYE Helpline, Revenue has confirmed that the peak period for this service occurs during the early months of the year (January to April) when taxpayers submit their income tax returns for the previous year/s, claim any refunds or reliefs to which they are entitled, and check their tax credits for the current year. To date in 2022, the PAYE service has processed over 730,000 tax returns, answered more than 163,000 telephone calls, and dealt with over 224,000 items of correspondence received through the online services and the post.

To ensure optimum support to PAYE taxpayers throughout the year, Revenue continuously reviews its service channels and deploys its resources on an agile basis to meet demand. For example, analysis of PAYE taxpayer telephone activity indicates that most contacts are received during the morning, with much reduced demand in the afternoon. Operating the PAYE Helpline from 9.30am to 1.30pm each day ensures that the service is there to meet demand while also ensuring adequate resources are available to provide timely replies to queries received through the increasing online channel and through the post. The service is currently answering between 4,000 and 5,000 calls per day while also responding to between 4,500 and 6,000 correspondence items per day.

Revenue has acknowledged that the average waiting time on the PAYE telephone service during the current peak period is approximately ten minutes. Much of this delay is attributed to clarifying the taxation arrangements for Pandemic Unemployment Payments (PUP) and Temporary Wage Subsidy Scheme (TWSS) payments, which can result in some calls taking longer than would normally be the case. It is expected that this waiting time will reduce over the coming weeks as the peak period passes.

Regarding public office arrangements, I am aware that Revenue has invested very significantly in IT based solutions that allow taxpayers manage their tax affairs at a time that suits them, for the most part without the need to engage directly with officials or visit the tax office. These systems are available on a 24/7 basis, are intuitive and easy to use, and are secure to the highest standards. The online systems include the already mentioned MyEnquiries service, which allows taxpayers send queries to Revenue should they need to do so. As already outlined, most of these queries are responded to within 5 days. The year on year increase in online activity (2020 had reduced customer queries due to COVID-19) is testament to the popularity of the services with taxpayers and significantly negates the requirement to operate public offices.       

However, Revenue accepts that there will always be a requirement for direct discussions where more complex issues exist or where a taxpayer experiences IT related difficulties. To support taxpayers and tax agents where such circumstances arise, Revenue provides a virtual appointment service, which can be booked through a dedicated telephone number (01-7383660). The appointment service started in March 2020 and has received over 250 requests to date. Appointments are usually facilitated within two days of the request.

Revenue has confirmed that it will expand the virtual appointments service to include face to face appointments as part of its post-pandemic blended working arrangements. It is anticipated that this service will be available in the coming weeks as the blended working arrangements are bedded in.

Description	2018		2019		2020		2021		2022 (To Date)
Calls	MyEnquiries	Calls	MyEnquiries	Calls	MyEnquiries	Calls	MyEnquiries	Calls	MyEnquiries
Personal Tax Enquiries	882,514	691,114	1,160,426	1,112,414	629,259	948,420	881,563	1,545,021	163,095	324,803
Business Tax Enquiries	231,686	49,881	446,037	285,157	211,696	256,557	219,067	599,536	40,427	95,810
Other*	351,850	287,995	875,087	302,229	577,495	155,410	939,186	377,325	137,447	41,231
Totals	1,466,050	1,028,950	2,481,550	1,699,800	1,418,450	1,360,387	2,039,816	2,521,882	340,969	461,844

*Includes calls to the Collector-General’s Office, the ROS Helpdesk, Vehicle Registration Tax, Customs, Stamping and Local Property Tax.  

Excludes queries received through the post.

Question No. 252 answered with Question No. 251.

Question No. 253 answered with Question No. 251.

Question No. 254 answered with Question No. 251.

Question No. 254 answered with Question No. 251.

Question No. 255 answered with Question No. 251.

Question No. 256 answered with Question No. 251.

Question No. 257 answered with Question No. 251.

Question No. 258 answered with Question No. 251.

Question No. 259 answered with Question No. 250.

Question No. 260 answered with Question No. 250.

Tax Code

Ceisteanna (261)

Bernard Durkan

Ceist:

261. Deputy Bernard J. Durkan asked the Minister for Finance the reason an annuity pension in the case of a person (details supplied) appears to be taxed at a higher rate; if a review will be undertaken to ensure that they are paying the correct rate; and if he will make a statement on the matter. [14536/22]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the person’s standard rate tax band was allocated in full to his other income, which meant that his annuity pension was taxed at the higher rate.

I am further advised that following discussions with the person, Revenue has reallocated the appropriate portion of his standard rate tax band to his annuity pension for 2022 and has updated his Universal Social Charge (USC) status to exempt. The overpayments of tax and USC deducted from the person to date in 2022 will be refunded to him by his pension provider in the next payroll run.

Ukraine War

Ceisteanna (262)

Fergus O'Dowd

Ceist:

262. Deputy Fergus O'Dowd asked the Minister for Finance the supports that are in place or being considered to allow Ukrainians fleeing the conflict in circumstances in which they are staying with an Irish family to be added to Irish car insurance policies; if he will respond to reports that some insurance providers are declining applications for this process; and if he will make a statement on the matter. [14613/22]

Freagraí scríofa

Minister for Finance

As Minister for Finance, I am responsible for the development of the legal framework governing regulation of the insurance sector.  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 expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to how they price their policies or what terms and conditions they apply in those policies, nor can I direct insurance companies to provide cover to specific individuals or businesses.

Having said that, my officials contacted Insurance Ireland for further comment on this matter, so that I could provide some further information. Insurance Ireland stated that its members are focused on ensuring they make it as practical as possible for those arriving from Ukraine to take out policies in their own name over time. It also stated that in general its members are accepting the addition of named drivers who hold a full Ukrainian licence to existing motor policies of Irish host families.  Any charge that applies depends on the individual circumstances of the driver, and if it is a temporary or permanent addition to the motor insurance policy, in some cases no charge will apply. In general at the moment, my officials understand that insurers will treat Ukrainian licences as the equivalent of an EU licence and they will be subject to the same acceptance criteria and rules as EU licence holders.

Finally, it should be noted that issues in relation to driver licencing, including equivalence and exchange issues, are a matter for my colleague, the Minister for Transport and his Department.