Written Answers Nos. 387-406
387. Deputy Ivana Bacik asked the Minister for Finance the regulations or policies which require ATMs to be accessible; and the body that enforces these regulations.; and if he will make a statement on the matter. [29599/22]
Amharc ar fhreagraATM refers to Automated Teller Machines which allow the withdrawal of bank notes form customer accounts. It should be noted that the Minister for Finance has no direct function in the operations of banks operating in the State. This includes banks that the State is a shareholder, the Minister must ensure that these banks are run on a commercial, cost effective and independent basis. Actions taken by the banks are matters for the board and management of the institution.
The Central Bank of Ireland’s consumer protection framework is designed to ensure that customers’ best interests are protected. It requires regulated financial service entities to provide reasonable arrangements and/or assistance to people who may be experiencing particular vulnerabilities.
The Central Bank’s Consumer Protection Code 2012 (the Code) applies to regulated financial service providers providing regulated activities within the State. Under the provisions of the Code the Central Bank expects that all regulated firms take a consumer-focused approach and to act in their customers’ best interests, particularly in dealings with vulnerable consumers. The Code contains a number of provisions aimed at ensuring that vulnerable people can gain access to mainstream financial services.
The Banking and Payments Federation of Ireland (BPFI) collects data on the total number of bank operated ATMs cross the country. This has been declining in recent years mainly because banks have sold, mainly offsite, ATMs to Independent ATM Deployers (IADs) and more recently also due to branch closures.
Latest data from the BPFI shows that in December 2021 there were 1,787 ATMs operated by banks, this is down from 2,353 in December 2020.
The BPFI do not have sight of whether the IADs maintains or closes ATMs after the purchase. However it estimates that the total number of ATM’s (operated by banks and IADs) was approximately 2,900 in December 2021.
388. Deputy Niamh Smyth asked the Minister for Finance the number of applications and the number of applications approved, respectively, to the help-to-buy scheme by county in each of the years since the introduction of the scheme to date; and if he will make a statement on the matter. [29716/22]
Amharc ar fhreagraHelp to Buy (HTB) has a two main stages: the application stage and the claim stage. Compliant taxpayers who complete a HTB application are provided with an application number and a summary of the maximum relief available to them under the incentive. A mortgage provider, broker, qualifying contractor or solicitor can use this summary to verify the relief available to the applicant, for the purposes of mortgage approval or drawdown, or signing a house purchase contract.
An application will progress to the claim stage where the applicant decides to purchase a property that is eligible for the scheme. Many applications may never progress to the claim stage because the applicant does not purchase a property or purchases a property not eligible for the scheme.
I am advised by Revenue that a total of 82,900 HTB applications were submitted up to 2 June 2022, excluding cancelled applications.
An application will only progress to the final “claim” stage if and when the applicant decides to purchase a property that is eligible for the scheme. The table below sets out information in respect of the breakdown of HTB applications, by county and year in which the claim stage was reached and subsequently approved.
|
Property county |
2022 to date |
2021 |
2020 |
2019 |
2018 |
2017 |
Total |
|
Carlow |
18 |
104 |
60 |
60 |
36 |
35 |
313 |
|
Cavan |
22 |
86 |
68 |
60 |
40 |
34 |
310 |
|
Clare |
33 |
166 |
104 |
126 |
74 |
60 |
563 |
|
Cork |
367 |
1,099 |
804 |
804 |
563 |
509 |
4,146 |
|
Donegal |
54 |
148 |
114 |
88 |
49 |
43 |
496 |
|
Dublin |
486 |
1,107 |
1,145 |
1,679 |
1,574 |
1,974 |
7,965 |
|
Galway |
119 |
415 |
331 |
290 |
218 |
201 |
1,574 |
|
Kerry |
29 |
101 |
98 |
81 |
41 |
45 |
395 |
|
Kildare |
398 |
992 |
771 |
675 |
472 |
514 |
3.822 |
|
Kilkenny |
38 |
122 |
142 |
85 |
48 |
36 |
471 |
|
Laois |
62 |
222 |
142 |
85 |
88 |
63 |
662 |
|
Leitrim/Longford* |
20 |
58 |
41 |
43 |
34 |
31 |
227 |
|
Limerick |
56 |
255 |
213 |
210 |
151 |
162 |
1,047 |
|
Louth |
120 |
340 |
189 |
218 |
185 |
130 |
1,182 |
|
Mayo |
70 |
160 |
131 |
144 |
78 |
64 |
647 |
|
Meath |
282 |
865 |
746 |
845 |
585 |
599 |
3,922 |
|
Monaghan |
28 |
99 |
66 |
67 |
43 |
30 |
333 |
|
Offaly |
77 |
136 |
78 |
59 |
34 |
55 |
439 |
|
Roscommon |
23 |
80 |
61 |
63 |
31 |
32 |
290 |
|
Sligo |
23 |
74 |
37 |
54 |
39 |
26 |
253 |
|
Tipperary |
35 |
132 |
95 |
112 |
84 |
83 |
541 |
|
Waterford |
62 |
192 |
161 |
145 |
113 |
127 |
800 |
|
Westmeath |
30 |
94 |
94 |
80 |
70 |
60 |
428 |
|
Wexford |
109 |
295 |
168 |
191 |
98 |
64 |
925 |
|
Wicklow |
70 |
307 |
224 |
305 |
211 |
258 |
1,375 |
|
Totals |
2,631 |
7,649 |
6,083 |
6,569 |
4,959 |
5,235 |
33,126 |
* Figures for Leitrim and Longford are amalgamated due to the number of claims being fewer than 10 in some years. This is done to protect taxpayer confidentiality.
389. Deputy Jim O'Callaghan asked the Minister for Finance if his Department is in full compliance with the Commission Recommendation (EU) 2022/554 of 5 April 2022 on the recognition of qualifications for people fleeing Russia’s invasion of Ukraine; if he will set out a list of the professional qualifications or professions recognised under the aegis of his Department; if Ukrainian qualifications are now recognised in each case; if electronic applications can be made for such recognition; the web address or email address to which such applications should be sent, or if physical application is necessary; and the exact procedures and address for such applications. [29978/22]
Amharc ar fhreagraI wish to advise the Deputy that my Department does not recruit directly, recruitment into my Department is conducted through the Public Appointments Service (PAS). PAS is the central body with responsibility for recruitment into the Civil Service and wider Public Service, and as part of the recruitment process undertakes the responsibility to ensure qualifications meet the education requirements of specific competitions.
Competitions held by the PAS are advertised on the PAS website www.publicjobs.ie and all representations received by my Department relating to recruitment into the Department are advised to visit this website. Potential candidates can register their interest in a position on the PAS website and candidates are automatically notified by email when the relevant competitions are announced.
390. Deputy John McGuinness asked the Minister for Finance if registered companies in Ireland availing of section 110 tax arrangements with connections to Russia and whose administrative functions are being undertaken by corporate service providers are compliant with all aspects of the law and Central Bank regulations; if the Revenue Commissioners have audited these firms; if so, the period of time and the numbers audited; if he will provide details of the tax benefits that accrue to Russian companies registered in this way; and if he will make a statement on the matter. [30014/22]
Amharc ar fhreagraSection 110 of the Taxes Consolidation Act 1997 is the section of the corporate tax code which creates a tax neutral regime for bona-fide securitisation and structured finance purposes. 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. This is a European Commission initiative to mobilise capital in Europe, a main objective of which is to build a sustainable securitisation regime across the European Union.
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.
It is important to note that there is nothing specific in the Section 110 framework that is of particular relevance to Russian investors or originators and such vehicles are a common feature of financial service centres.
In relation to Central Bank regulations, certain section 110 companies may be required to publish a prospectus under Regulation (EU) 2017/1129 (the “Prospectus Regulation”), where an issuance of securities fall under its scope. The Prospectus Regulation applies to persons:
- Seeking admission of securities to trading on an EEA regulated market, including the Irish Stock Exchange plc, trading as Euronext Dublin, or
- Making an offer of securities to the public within the EEA, albeit not seeking admission to trading on an EEA regulated market.
The Prospectus Regulation harmonises requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market. The objective of the Prospectus Regulation is to ensure investor protection and market efficiency, in accordance with high regulatory standards. The Central Bank is the Competent Authority in Ireland with responsibility for the scrutiny and approval of prospectus documents under the Prospectus Regulation. The Central Bank scrutinises the prospectus to ensure it meets all of the disclosure requirements set out in the legislation and must approve the prospectus prior to commencement of the listing or offer of the securities to the public.
Separately, Special Purpose Entities (SPEs) that carry out activities listed under Schedule 2 – a comprehensive list of financial activities of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 - are subject to supervision by the Central Bank for Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) purposes. Such firms are referred to as “Schedule 2 firms”. Firms obligated to register include those which participate in securities issues and the provision of services relating to such issues. An SPE is required to report to the Central Bank if it is an SPE which predominantly engages in securisations, and if it avails of the tax provisions of section 110.
Schedule 2 firms are subject to the Central Bank’s minimum engagement model and are supervised in accordance with this model. During the course of this supervision, where weaknesses in the AML/CFT frameworks are identified in Schedule 2 firms, the supervisors issue findings that the Schedule 2 firms are required to implement. The Central Bank conducts supervisory activities to ensure that Schedule 2 firms are complying with their statutory obligations. These activities include:
- Conducting on-site inspections and other supervisory engagements across the financial sector to effectively monitor that there is compliance and effective implementation of the relevant statutory obligations;
- Ensuring compliance with the requirements under the Criminal Justice Act 2010 to adopt and implement policies and procedures for the assessment and management of risks of money laundering and terrorist financing;
- Inspection of policies and procedures, and confirmation that senior management (including boards of directors) can demonstrate full awareness of their responsibilities;
Separately, where an SPE is linked to an investment fund resident in Ireland, it is subject to the relevant investment fund regulations and requirements.
I now refer to section 110 company’s compliance with EU sanctions. All natural and legal persons in the State are obliged to ensure compliance with EU sanctions. This includes section 110 companies. A breach of financial sanction is a criminal offence. The Central Bank of Ireland, as the competent authority for financial sanctions, is undertaking work in relation to firms with links to Russia. Should the Central Bank identify, or have a suspicion of, a breach of sanctions it will report that to An Garda Síochána, as the investigative authority.
I am advised by Revenue that it carries out a programme of risk focused compliance interventions on section 110 companies, to monitor the regime and to satisfy itself as to the accuracy or otherwise of tax returns filed by these companies and to ensure they continue to meet all qualifying conditions. In line with its overall tax compliance monitoring programme, Revenue has a multi-faceted approach to tackling non-compliance. Compliance interventions range from non-audit compliance Interventions, such as appraisals, aspect queries, and profile interviews, to audits and investigations. As with all tax compliance interventions, Revenue will take appropriate action, including making assessments and seeking penalties and interest, where evidence of non-compliance is found to exist.
I am advised that Revenue has taken appropriate steps to identify section 110 companies subject to or linked to individuals, groups or entities subject to EU sanctions on Russia and Belarus in connection with Ukraine. Revenue has the necessary procedures and processes in place to ensure full adherence with its obligations under EU sanctions rules.
As respects section 110 companies identified as possibly linked to entities/individuals on the EU sanctions list, there have been 37 compliance interventions and 65 risk appraisals closed in respect of such companies in the last 5 years (none of which were formal audits). One compliance intervention is ongoing in respect of such a company.
391. Deputy John McGuinness asked the Minister for Finance the total value of assets held by special purpose entities in each of the past five years; the total number of these entities; the number that are connected to Russia; and if he will make a statement on the matter. [30017/22]
Amharc ar fhreagraReviews undertaken by the Central Bank of Ireland have identified just under 2% of the 3,000 Special Purpose Entities (SPEs) in Ireland as having links to Russia. It is currently estimated that about one in three of those (that is, 17 SPEs, being 0.5% of the total SPE population) is directly linked to individuals in scope of the sanctions regime.
A Central Bank 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, 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.
|
Year |
Total Assets in €bns |
No. SPEs |
No. Russian Connected SPEs |
|
2017 |
732.3 |
2,092 |
73 |
|
2018 |
734.5 |
2,356 |
65 |
|
2019 |
872 |
2,631 |
64 |
|
2020 |
942.1 |
2,862 |
62 |
|
2021 |
1031.8 |
3,133 |
59 |
For the purposes of the above table, the Central Bank has classified an entity as a Russian Connected SPE if they meet any of the following criteria: The entity is ultimately controlled by a Russian company or individual; The entity has assets with a Russian counterparty or issued by a Russian counterparty; the entity owes money to a Russian counterparty.
Irish SPEs are fully in scope of the sanctions regime. A breach of financial sanction is a criminal offence. Accounts, funds or other assets must be frozen without delay so that they cannot be made available, directly or indirectly, to the sanctioned person, entity or body. In the Central Bank of Ireland’s role as Competent Authority for the administration of financial sanctions, the Central Bank is engaging closely with a number of SPEs with links to Russia. Where the Central Bank suspects a breach of a sanction, the Central Bank reports such suspicions to An Garda Síochána.
392. Deputy John McGuinness asked the Minister for Finance the value of the funds raised by section 110 firms connected to Russia in each of the past five years; if there is a similar figure for the same period relative to funds raised on the Dublin Euronext; if funds raised in this way or through banks was for the purpose of investment in Russian Railways or the Russian military; if he intends to freeze or confiscate any assets held by these firms that are connected to Russia; and if he will make a statement on the matter. [30025/22]
Amharc ar fhreagraI am informed by the Central Bank that Section 110 firms connected to Russia are estimated to have raised the following funds (sum of all issuances over a year):
|
Year |
Funds Issued in € Billions |
|
2017 |
11.10 |
|
2018 |
2.62 |
|
2019 |
6.28 |
|
2020 |
4.27 |
|
2021 |
9.79 |
For the purposes of the above table, the Central Bank has classified an entity as a Russian Connected SPE if they meet any of the following criteria: The entity is ultimately controlled by a Russian company or individual; The entity has assets with a Russian counterparty or issued by a Russian counterparty; the entity owes money to a Russian counterparty.
The Central Bank has also advised that they are unable to provide this detail in relation to Euronext Dublin for the last 5 years as this information is not readily available.
On an aggregate basis, the primary activities of these Russian linked vehicles is to raise financing for Russian companies and banks. The Central Bank does not systematically identify nor monitor the use of proceeds of the fundraising by section 110 vehicles. However, I am informed by the Central Bank that while it considers that there may be some limited linkages to the Russian railway industry it is not aware of any section 110 vehicles, at this point, directly financing the Russian military.
In terms of the sanctions regime, a breach of financial sanction is a criminal offence. Accounts, funds or other assets must be frozen without delay so that they cannot be made available, directly or indirectly, to the sanctioned person, entity or body.
The Central Bank has consistently engaged with all relevant firms to ensure compliance with the sanctions regime. There has been a significant focus on Russia/Ukraine related issues in supervisory engagements and supervisors incorporate discussions on financial sanctions compliance into their regular supervisory engagements.
In the Central Banks role as Competent Authority for the administration of financial sanctions, it is engaging closely with a number of SPEs with links to Russia. Where it suspects a breach of a sanction, the Financial Sanctions team reports such suspicions to An Garda Síochána.
393. Deputy John McGuinness asked the Minister for Finance the reason that the Central Bank has not been empowered to regulate section 110 firms; if it is his intention to regulate the firms in question; if the data collected from the firms by the Central Bank will be published on a regular basis; if he or the Central Bank is concerned in any way by any of the information that has been collected to date; and if he will make a statement on the matter. [30045/22]
Amharc ar fhreagraSection 110 of the Taxes Consolidation Act 1997 creates a tax neutral regime for bona-fide securitisation and structured finance purposes. Ireland is not unique in having a specific regime for securitisations. Indeed the importance of securitisation has been recognised by the European Commission through their work on the Capital Markets Union.
While section 110 companies are not subject to Central Bank authorisation, there are a number of conditions which a company must meet in order to be regarded as a qualifying company for the purposes of section 110 of the Taxes Consolidation Act 1997 (“TCA 1997”).
One of those conditions is that the company notifies Revenue of their intention to be a qualifying company by completing a Form S.110 no later than 8 weeks from the date the company commences its business as a qualifying company for the purposes of section 110 TCA 1997. As it is a requirement of section 110 TCA 1997, it is appropriate that the Form S.110 be submitted to the Revenue Commissioners.
Additionally, the activity of individual section 110 entities by virtue of its structure as a Special Purpose Entity (SPE) might be affected by certain regulations based on specific activities that they carry out. The obligations of SPEs under the relevant regulations are intended to increase transparency on their activities and address specific risks, such as in the areas of investor protection and Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT).
SPEs may be required to publish a prospectus under Regulation (EU) 2017/1129 (the “Prospectus Regulation”), where an issuance of securities fall under its scope. The Central Bank is the Competent Authority in Ireland with responsibility for the scrutiny and approval of prospectus documents under the Prospectus Regulation. Subject to certain exemptions, a prospectus must be produced by all companies (including SPEs) when securities are to be offered to the public and/or admitted to trading on a regulated market in the EEA. The Central Bank scrutinises the prospectus to ensure it meets all of the disclosure requirements set out in the legislation and must approve the prospectus prior to commencement of the listing or offer of the securities to the public.
Additionally, SPEs that carry out activities listed under Schedule 2 – a comprehensive list of financial activities of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 - are subject to supervision by the Central Bank for Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) purposes. Schedule 2 firms are subject to the Central Bank’s minimum engagement model and are supervised in accordance with this model. During the course of this supervision, where weaknesses in the AML/CFT frameworks are identified in Schedule 2 firms, the supervisors issue findings that the Schedule 2 firms are required to implement.
The Central Bank issued a ‘Dear CEO’ letter outlining their expectations of firms in relation to AML/CFT and Financial Sanctions requirements in December 2020. This letter can be accessed through the following link: www.centralbank.ie/docs/default-source/regulation/how-we-regulate/anti-money-laundering-and-countering-the-financing-of-terrorism/legislation/dear-ceo-letter---compliance-by-entities-which-are-required-to-registered-under-section-108a-of-the-criminal-justice.pdf.
Other requirements that may apply to SPEs include relevant investment fund regulations where an SPE is linked to an investment fund resident in Ireland, and an obligation to register with the Companies Registration Office and comply with relevant company law requirements.
In terms of the frequency of the data available on section 110 firms, all securitisation and non-securitisation section 110 SPEs are obliged (either under ECB Statistical Regulations or under the national powers) to report quarterly statistical information to the Central Bank of Ireland for the purpose of monitoring economic and financial developments in Ireland and the euro area. Further information on the reporting requirements of Special Purpose Vehicles and Financial Vehicle Corporations is available at the websites of the Central Bank and the European Central Bank respectively.
Finally, the Deputy may also be aware that the Central Bank has also published analytical work on SPEs including a Central Bank Economic Letter describing the structure and activities of the SPE sector in Ireland: www.centralbank.ie/docs/default-source/publications/economic-letters/vol-2018-no-11-shining-a-light-on-special-purpose-entities-in-ireland-(golden-and-hughes).pdf?sfvrsn=4.
394. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer of tax relief on pension contributions in 2019 disaggregated by salary band in intervals of €10,000, in tabular form. [30052/22]
Amharc ar fhreagra395. Deputy Pearse Doherty asked the Minister for Finance the number of persons availing of tax relief on pension contributions in 2019 disaggregated by salary band in intervals of €10,000, in tabular form. [30053/22]
Amharc ar fhreagraI propose to take Questions Nos. 395 and 394 together.
I am advised by Revenue that the information sought by the Deputy is available on its website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/pension-contributions.aspx.
For the Deputy's ease of reference the two tables requested are set out below.
|
Range of Gross Income |
Number of Taxpayer Units |
|
0 - 10,000 |
14,500 |
|
10,000 - 20,000 |
28,600 |
|
20,000 - 30,000 |
60,000 |
|
30,000 - 40,000 |
103,300 |
|
40,000 - 50,000 |
107,900 |
|
50,000 - 60,000 |
90,700 |
|
60,000 - 70,000 |
79,800 |
|
70,000 - 80,000 |
64,500 |
|
80,000 - 90,000 |
51,700 |
|
90,000 - 100,000 |
40,700 |
|
100,000 - 110,000 |
31,900 |
|
110,000 - 120,000 |
24,700 |
|
120,000 - 130,000 |
19,100 |
|
130,000 - 140,000 |
15,100 |
|
140,000 - 150,000 |
11,800 |
|
150,000 - 160,000 |
9,200 |
|
160,000 - 170,000 |
7,300 |
|
170,000 - 180,000 |
5,800 |
|
180,000 - 190,000 |
4,600 |
|
190,000 - 200,000 |
3,700 |
|
200,000 - 210,000 |
3,200 |
|
210,000 - 220,000 |
2,700 |
|
220,000 - 230,000 |
2,100 |
|
230,000 - 240,000 |
1,800 |
|
240,000 - 250,000 |
1,600 |
|
Over 250,000 |
15,800 |
|
All |
802,100 |
|
Range of Gross Income |
Tax Cost €m |
|
0 - 10,000 |
0 |
|
10,000 - 20,000 |
1 |
|
20,000 - 30,000 |
9 |
|
30,000 - 40,000 |
34 |
|
40,000 - 50,000 |
69 |
|
50,000 - 60,000 |
79 |
|
60,000 - 70,000 |
83 |
|
70,000 - 80,000 |
81 |
|
80,000 - 90,000 |
83 |
|
90,000 - 100,000 |
77 |
|
100,000 - 110,000 |
70 |
|
110,000 -120,000 |
61 |
|
120,000 - 130,000 |
54 |
|
130,000 - 140,000 |
47 |
|
140,000 - 150,000 |
40 |
|
150,000 - 160,000 |
34 |
|
160,000 - 170,000 |
29 |
|
170,000 -180,000 |
25 |
|
180,000 - 190,000 |
21 |
|
190,000 - 200,000 |
8 |
|
200,000 - 210,000 |
16 |
|
210,000 - 220,000 |
15 |
|
220,000 - 230,000 |
13 |
|
230,000 - 240,000 |
11 |
|
240,000 - 250,000 |
10 |
|
Over 250,000 |
133 |
|
All |
1,111 |
396. Deputy Noel Grealish asked the Minister for Finance if his Department intends to introduce a vehicle registration tax credit for vehicles with an open market selling price in excess of €50,000, as a means to incentivise the purchase of electric large public service vehicles; and if he will make a statement on the matter. [30181/22]
Amharc ar fhreagraElectric vehicles (EVs) play a central role in Climate Action Plan 2021 with a target of 175,000 on the road by 2025 and 945,000 EVs on the road by 2030. There are currently over 58,000 EVs registered on Irish roads (end April 2022). By 2030, the abatement impact for an additional 845,000 passenger EVs is estimated to be c. 2.5 Mt C02eq. This figure is informed by the Department of Transport’s modelling of the projected car fleet profile for Climate Action Plan 2021.
In support of achieving these missions reductions, there are already a significant number of grants/tax incentives available for the purchase of EVs including:
- Vehicle Registration Tax relief of up to €5,000 for battery electric vehicles (BEVs). From January 2021, this relief is no longer available for BEVs with an Open market Selling Price of >€50,000. This cap was introduced as a value for money consideration to ensure the reliefs remains targeted.
- Purchase Grant Scheme – provides up to €5000 for the purchase of a BEV
- Home Charger Grant - Up to €600 towards the installation cost of a domestic charge point for new and second-hand BEVs or PHEVs.
- Low Motor Tax - BEVs qualify for the lowest tax band of motor tax at €120 per annum, while a plug-in hybrid vehicle (PHEV) is typically taxed at circa €170 per annum.
- BEVs qualify for a Benefit-in-Kind exemption of up to €50,000 without mileage conditions.
- BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles
- A grant of up to €10,000 to support the purchase of a BEV in the taxi/hackney/limousine sector with an additional €2,500 available for those choosing to make their vehicle wheelchair accessible. Those scrapping older, more polluting, or high mileage vehicles are now eligible for double the normal grant if they make the switch to electric with up to €20K available for a new BEV, €25K for a new wheelchair accessible BEV and €15K for a new wheelchair accessible PHEV.
- Alternatively Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme - grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent.
In summary, I am satisfied that the Government has provided a broad suite of supports for the uptake of EVs. Given the availability of the above grants/tax incentives there are currently no plans to introduce a vehicle registration tax credit for vehicles with an open market selling price in excess of €50,000.
397. Deputy Noel Grealish asked the Minister for Finance if his Department has considered revising the existing policy to allow for all category C vehicles to be exempt from value added tax with particular references to buses suitable for carrying between 12 to 16 persons; and if he will make a statement on the matter. [30182/22]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exemption from VAT.
The Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of VAT exemption to the transport of passengers and their accompanying baggage. This means that under Ireland’s VAT rules, the supplier of passenger transport services does not register for VAT, does not charge VAT on the supply of their services and, consequently, has no VAT recovery entitlement on their input costs. In accordance with the EU rules, Ireland may continue to apply this existing, historic VAT exemption on the supply of domestic passenger transport but, for as long as the exemption remains, the conditions under which the exemption was granted cannot be changed. In fact, the introduction of a new entitlement to VAT recovery for the passenger transport sector could only be done if Ireland were to decide to end its historic exemption for the sector, and bring passenger transport services into the VAT net; this would then require suppliers to register for VAT and charge VAT on their passenger fares.
A VAT-registered trader is generally entitled to deduct VAT charged on the purchase or hire of a motor vehicle for use in their business if the vehicle comes within the definitions of Category B or Category C vehicles for the purposes of Vehicle Registration Tax (VRT). If such a vehicle is used exclusively for business purposes, the VAT is deductible in the normal way. Vehicles within VRT Categories B & C, such as vans and lorries are generally deductible for VAT, and these are often referred to as commercial vehicles for VAT purposes. However, buses or minibuses suitable for carrying between 12 and 16 persons (including the driver) are not generally deductible for VAT, although they come within Category C, as they are normally used for the VAT exempt activity of passenger transport.
Ireland has also maintained a relieving provision, the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012, which provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport. However, it should be noted that extending the scope of the Order while maintaining VAT exemption for passenger transport would be contrary to the EU VAT Directive.
398. Deputy Paul Kehoe asked the Minister for Finance the regulations that are in place to ensure that a landlord can get insurance cover on their property when the property is being sublet to a local authority; and if he will make a statement on the matter. [30191/22]
Amharc ar fhreagraAt 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 expressly prohibits Member States from doing so.
It is my understanding that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose between providers. It is also my understanding that insurance companies consider their pricing structure in accordance with their own past claims experience.
I would note that the second Implementation Report of the Action Plan for Insurance Reform, published in March this year, showed that insurance reform is progressing well, with some 80% of actions in the Plan now being delivered, and the remaining initiated. It is my hope that the cumulative impact of these reforms will be to improve both the cost and availability of insurance for businesses, as well as consumers and other groups – including landlords.
It may interest the Deputy to know that Insurance Ireland, the representative body for insurance providers in this country, operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance, which can be accessed at: feedback@insuranceireland.eu. Likewise, Brokers Ireland provide assistance to customers who are experiencing insurance accessibility issues; they can be contacted on insurancequeries@brokersireland.ie.
Finally, I would highlight that the issue of local authority and social housing more generally falls under the remit of the Minister of Housing, Local Government and Heritage, while policy in respect of rent supplement payments and Housing Assistance Payments is the responsibility of the Minister for Social Protection.
399. Deputy Catherine Murphy asked the Minister for Finance the supporting legislation that facilitates the data exchange between the Revenue Commissioners and the Department of Social Protection; and the number of instances in which the Department of Social Protection received data by the request of the Revenue Commissioners for the purposes of investigating potential social protection fraud from 2019 to date in 2022, in tabular form. [30321/22]
Amharc ar fhreagraI am advised that Revenue and the Department of Social Protection (DSP) enjoy very close working relations and co-operate on a wide range of strategic and operational matters of mutual interest. These arrangements are overseen by a long-established, high-level group of senior officials from both organisations that meets on a quarterly basis.
Section 851A of the Taxes Consolidation Act 1997 permits Revenue to disclose taxpayer information where, amongst other things, the disclosure is permitted by another enactment. Section 851A(6)(a) specifically permits Revenue to disclose taxpayer information where a Revenue officer has a suspicion that a criminal offence has been committed but only to an investigation authority. For this purpose, an ‘investigation authority’ is defined as “a statutory body responsible for the investigation of alleged criminal offence”. The DSP is such an authority.
Section 851B(1)(d) provides a legal basis for the processing of taxpayer information, which includes disclosing the information or data by transmitting, disseminating or otherwise making it available.
I am further advised that the mutual exchange of data is a critical component in the effective and efficient functioning of both organisations. A wide range and volume of data is, consequently, exchanged on both a systematic and a case specific basis, all of which is underpinned by extensive enabling legislation, principally, the Social Welfare Consolidation Act 2005. In addition, the exchange of information is governed by a Memorandum of Understanding agreed between Revenue and DSP and by signed Data Exchange Agreements which list the detail of the exchanges.
Given the importance of taxpayer confidentiality to its activities, compliance with Data Protection (including GDPR) obligations is a major consideration for Revenue. I am advised that Revenue continually reviews its data exchange arrangements, even where these are long-standing ones, to ensure that they are in keeping with best practice. Where new sources of data are being exchanged, as happened recently with the introduction of the Wage Subsidy Schemes, Revenue will examine the detail of the proposed exchange to ensure that it adheres to all Data Protection requirements.
With regard to the number of instances, from 2019 to date in 2022, when the DSP received data from Revenue for the purposes of investigating potential social protection fraud, Revenue has provided the following summary information.
|
Category of data |
2019 |
2020 |
2021 |
2022 year to date |
|
Case specific enquiries to support work of Special Investigations Unit |
1,403 |
1,212 |
1,616 |
641 |
|
Value of deposit interest paid to check compliance on means tested payments |
313 |
131 |
63 |
59 |
|
PUP requests from DSP |
0 |
4,273 |
1,778 |
83 |
400. Deputy Paul Kehoe asked the Minister for Finance if income that is earned from leasing farmland is subject to VAT; and if he will make a statement on the matter. [30373/22]
Amharc ar fhreagraI am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in the VAT Directive, in respect of which Member States may apply a lower rate of VAT or exempt from VAT.
In accordance with the Directive, the supply by a taxable person of a lease or letting of immovable property, such as farmland, is an exempt activity subject to conditions, therefore, the payment for the lease or letting is not liable to VAT. Each lease or letting agreement is determined on its own merits as to whether it constitutes an exempt letting for VAT purposes.
A landlord can also exercise the option to charge VAT on the rent of a lease or letting of immovable property. When a landlord leases or lets the immovable property, they must do one of the following to confirm the option to tax: include a written provision for the taxation of the rent in the letting agreement, or issue a document to the tenant stating that VAT is chargeable on the letting. The lease or letting in these circumstances is subject to the standard rate of VAT, currently 23%.
401. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 82 of 11 May 2022, if he will provide the correct contact details for an organisation (details supplied) in relation to insurance issues for thatched roof properties given that the email address provided is not in operation; the further immediate steps that those facing difficulties obtaining insurance can take given that this issue is becoming more prevalent; and if he will make a statement on the matter. [30380/22]
Amharc ar fhreagraFirstly 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 expressly prohibits Member States from doing so.
My officials have contacted Brokers Ireland regarding this matter and have been informed that there was a software issue with the email address provided. However, they have been assured that this has now been resolved and that people who are experiencing difficulty in sourcing insurance for their thatched roof properties may contact Brokers Ireland at that address.
Separately, the Deputy may also be aware that the Department of Housing, Local Government and Heritage has indicated that it is currently preparing a study into the question of insurance for thatched roof properties, and that owners of such properties will be invited to contribute to this. All queries regarding this study should be directed to the Department of Housing, Local Government and Heritage.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government, and that it is my intention to continue to work with my colleagues to ensure that implementation of the Action Plan for Insurance Reform can have a positive impact on the affordability and availability of insurance across all sectors in the economy.
402. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of indexing tax bands and tax credits (details supplied). [30389/22]
Amharc ar fhreagraBased on Revenue’s latest Ready Reckoner (Post-Budget 2022) the estimated costs on a first and full year basis of the Deputy’s proposed request are set out in the tables below. In addition, the tables also display the nominal increase as a result of the proposed adjustments.
Table 1 – 1% increase in the standard rate tax bands and the main income tax credits
|
Measure |
Adjustment |
First year cost |
Full year cost |
|
Single standard rate band* |
An increase of €368 from €36,800 to €37,168 |
€80m |
€90m |
|
Personal tax credits |
· An increase of €17 from €1,700 to €1,717 (single person) · An increase of €34 from €3,400 to €3,434 (married persons or civil partners) |
€40m |
€45m |
|
Employee tax credit |
An increase of €17 from €1,700 to €1,717 |
€30m |
€35m |
|
Earned income tax credit |
An increase of €17 from 1,700 to €1,717 |
€2m |
€3m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.
Table 2 – 2% increase in the standard rate tax bands and the main income tax credits
|
Measure |
Adjustment |
First year cost |
Full year cost |
|
Single standard rate band* |
An increase of €736 from €36,800 to €37,536 |
€160m |
€180m |
|
Personal tax credits |
· An increase of €34 from €1,700 to €1,734 (single person) · An increase of €68 from €3,400 to €3,468 (married persons or civil partners) |
€80m |
€90m |
|
Employee tax credit |
An increase of €34 from €1,700 to €1,734 |
€60m |
€70m |
|
Earned income tax credit |
An increase of €34 from 1,700 to €1,734 |
€4m |
€6m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.
403. Deputy Neale Richmond asked the Minister for Finance if he will consider making tips received in hospitality tax-free in advance of Budget 2022; and if he will make a statement on the matter. [30427/22]
Amharc ar fhreagraIt is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. This is a well-established and broadly accepted principle.
Section 19 of the Taxes Consolidation Act (TCA) 1997, sets out that tax under Schedule E shall be charged in respect of every public office or employment of profit. Section 112 of the TCA 1997 brings into charge all salaries, fees, wages, perquisites or profits of any kind arising from an office or employment. Therefore, the long-standing position is that all tips, gratuities and service charges arising from an office or employment are chargeable to income tax under Schedule E in accordance with Section 112.
Gratuities from customers for example, service charges in hotels or tips in restaurants, paid to the employer and subsequently paid out to an employee should be included in pay for the income tax week or month in which they are paid out. These tips constitute pay for the purposes of the PAYE system. However, in a situation where an employee receives tips directly from customers, the employer is not obliged to operate PAYE and in that case, the tips and gratuities are fully taxable and should be included by the employee in his or her income tax return. It is important to point out that such tips constitute pay for the purposes of the PAYE system.
The Department of Enterprise, Trade and Employment is progressing legislation on tips and gratuities and this legislation will prohibit the practice of using tips or gratuities to top up wages. It will also ensure that electronic tips and gratuities, which are much more common these days, have to be divided fairly and equitably among the staff. In addition, the legislation will provide transparency to customers so they will know what the policy is on tips and service charges, how they are managed and to whom they go.
For the reasons outlined in the opening paragraphs of my reply, I have no plans to amend the tax treatment of tips and gratuities.
404. Deputy Neale Richmond asked the Minister for Finance if he will report on his recent meeting with United States Treasury Secretary Janet Yellen; and if he will make a statement on the matter. [30428/22]
Amharc ar fhreagraI have met with United States Treasury Secretary Janet Yellen on a number of occasions over the last few months, most recently in Washington, DC in the first week of June, but also at the meeting of G7 Finance Ministers and Central Bank Governors in Bonn in mid-May and by VC at the end of March. I was also very pleased to welcome Secretary Yellen to Dublin last November. Each engagement provides us with the opportunity to build further on our already excellent bilateral relationship, and to discuss issues of mutual interest to Ireland, the EU and the United States.
At our most recent meeting, we principally discussed the economic situation in the US, Ireland and the euro area, taking into account the response to the war in Ukraine, the impact of sanctions and the need to assist Ukraine's reconstruction. We also covered a range of other topics, including the importance of continued progress on the OECD global tax reform agreement. We also discussed Brexit and the Protocol on Ireland and Northern Ireland, with Secretary Yellen underscoring the United States’ strong commitment to the Good Friday Agreement.
405. Deputy Neale Richmond asked the Minister for Finance the steps that he is taking to reduce the costs of insurance to childcare facilities; and if he will make a statement on the matter. [30429/22]
Amharc ar fhreagraAt 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 expressly prohibits Member States from doing so.
Nonetheless, this Government recognises the concerns felt by many groups, including the childcare sector, regarding the cost and availability of insurance, and has therefore prioritised insurance reform. As the Deputy may be aware, the Government recently published the second Action Plan for Insurance Reform Implementation Report, which shows that work is progressing well to implement these important reforms, with 80% of the actions already being delivered.
I believe this Government has taken the right approach in addressing the issue of availability and affordability of insurance in Ireland. By way of indication that the industry is responding positively to the reform agenda, I understand that in the complementary play centre sector an additional provider has recently expanded its existing product line and now offers group insurance. This may prompt other firms to expand their product range and cover. In addition, Cabinet recently approved proposals to overhaul the duty of care to address issues associated with ‘slips, trips and falls’, which predominate in footfall-heavy sectors such as childcare. I am hopeful that these developments will, by building upon the momentum of the insurance reform agenda, have further positive impacts on the insurance market.
Finally, I wish to assure the Deputy that it is my intention to work with my Government colleagues to ensure that implementation of the remaining elements Action Plan can have a positive impact on the affordability and availability of insurance across all sectors in the economy including childcare sector.
406. Deputy Neale Richmond asked the Minister for Finance the steps that he is taking to reduce the costs of car insurance; and if he will make a statement on the matter. [30430/22]
Amharc ar fhreagraAt 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).
Every person intending to use a vehicle on a public road must have third-party insurance cover at a minimum. Therefore, it is important that motor insurance is affordable, which is why the Government has continued to focus on reducing costs for motorists, as well as other groups, through the Action Plan for Insurance Reform .
This whole-of-Government strategy contains several initiatives expected to positively impact motor insurance costs. For example, the new Personal Injuries Guidelines have significantly lowered award levels for many common injuries, with the latest data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has reduced by 42% compared to 2020. Consistent implementation of the Guidelines should therefore lead to a reduction in the cost of claims, including motor claims, which accounted for 70% of all awards made by the PIAB in 2020.
Another key achievement with respect to motor insurance has been the publication of new Regulations by the Central Bank to ban price walking, following its extensive review. Price walking is where customers are charged higher premiums relative to the expected costs the longer they remain with an insurance provider. I therefore welcome this imminent move, as I believe it will protect motor insurance customers who prefer to stay with their current insurer from being unfairly penalised for doing so, in terms of the premium paid.
According to data from the Central Statistics Office (CSO) for April 2022, motor insurance prices declined by nearly 15% from September 2020, when the Sub-Group on Insurance Reform, which is driving these initiatives, was established. Overall, motor insurance prices are now 40% lower than their peak in July 2016, which I believe indicates that previous reforms under the Cost of Insurance Working Group , as well as recent achievements of the Insurance Reform Action Plan, are having a positive effect. This downward trend of motor insurance prices is also validated by data from the National Claims Information Database (NCID), with the latest motor report indicating that the average earned premium per policy peaked at €708 in Q4 2017, and declined by 16% to €595 in Q4 2020. I expect that the next NCID report on private motor insurance, due later this year, will show a continued decrease in insurance prices, as the impact of the various Government reforms in this area continue to bed in and take effect.
