Written Answers Nos. 321-335
321. Deputy Rose Conway-Walsh asked the Minister for Finance the actions that have been taken to reinstate the new Disabled Drivers Medical Board of Appeal which has been stood down since November 2021; if he will provide a county-by-county breakdown of the waiting list; the steps that will be put in place to accelerate the process once the new board has commenced; and if he will make a statement on the matter. [41893/22]
Amharc ar fhreagraThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
The Minister has no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. My officials provide support to the Department of Health in this matter.
The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. Department of Health processes to support the nomination of suitable candidates are ongoing. Once these processes have been completed I will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place.
Assessments for the primary medical certificate, by the HSE, are continuing to take place.
County-level breakdowns of those awaiting an appeal hearing are not available. As of 5th July 2022 (latest data available) there were 575 requests awaiting an appeal hearing, of which 382 date from 2021.
322. Deputy Robert Troy asked the Minister for Finance this views on banking policies for dealing with vulnerable customers as in the case of a person (details supplied). [39627/22]
Amharc ar fhreagraWhile the withdrawal of Ulster Bank from the Irish market is disappointing, I do not have a role in the operations of any bank operating within the State. Decisions in this regard are commercial matters and are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
My priority now is that the withdrawal takes place in an orderly manner. The importance of this is emphasised in all engagements with Ulster Bank, who are meeting with officials from my Department on a monthly basis.
The Central Bank, as regulator, has also made clear its view that the large scale migration of customer bank accounts must happen in line with customer needs and expectations. This requires a strong customer-focused approach, where individual customer experience and service levels are of a standard that customers rightfully expect and are entitled to.
With regard to vulnerable customers, 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 and to ensure that the vulnerable consumer is provided with such reasonable arrangements to facilitate them in their dealings with the regulated entity.
The Central Bank has also written specifically to banks on the issue of vulnerable customers setting out its consumer protection expectations in the changing retail banking landscape. This industry letter sets out that all customers are potentially vulnerable to the risk of making uninformed decisions, or decisions that are not in their best interests, particularly during times of uncertainty and change. The Central Bank sets out the following expectation of regulated entities in respect of vulnerable customers:
- Consider specifically the impact of their decisions on vulnerable customers and provide the assistance necessary to reasonably mitigate those impacts and retain access to basic financial services.
- Have specific and effective processes and communication plans to support vulnerable customers during this time of increased uncertainty.
While Ulster Bank has a freephone customer helpline (1800 656 001) open from 8am to 8pm, 7 days a week, Ulster Bank has advised that it also has dedicated staff in all its branches who are available to deal with all customers and in particular vulnerable customers who may need additional support.
The Deputy may also wish to note that the Banking and Payments Federation of Ireland has launched a public information campaign which provides details on the supports available for vulnerable customers: www.bpfi.ie/movingaccount/a-guide-to-moving-your-personal-account/customers-in-vulnerable-circumstances
323. Deputy Patrick Costello asked the Minister for Finance the reason that alcohol-free beverages cost the same as their alcoholic counterparts given that no excuse duty applies; and if he will take appropriate steps to ensure that there is a price differential to encourage more persons to switch to alcohol-free drinks. [39696/22]
Amharc ar fhreagraAlcoholic beverages are subject to alcohol products tax. For example, excise duty on beer is charged based on the percentage, by volume, of alcohol in the beverage. Typically, the excise duty on a pint of 4.3% ABV beer is 54 cent. Non-alcoholic beer is not liable for any excise duty.
Alcoholic beverages are subject to the standard rate of VAT, currently 23%. Ireland currently operates two lower rates of VAT, 13.5% and 9%. At present, Ireland applies the 9% VAT rate to certain non-alcoholic beverages such as tea, coffee and fruit juices where they are supplied in the course of catering. As the Deputy will be aware, this will revert to 13.5% from 1 March 2023 in line with the rest of the hospitality and tourism sector.
Any suggestion for extending the application of a reduced VAT rate further to non-alcoholic beverages would need to be considered carefully having regard to a range of factors including the impact on Exchequer revenues, and the practical concerns that it would be difficult to administer and would be likely to provide considerable scope for manipulation of the VAT system and opportunities for tax avoidance.
The retail price of non-alcoholic beers is determined by retailers and publicans and this should reflect the fact that no excise applies to such products as well as other factors. Other than the portion that is taxation, the Department has no role in setting the price of these beverages.
324. Deputy Niamh Smyth asked the Minister for Finance if he will review the concerns of an employer (details supplied); the steps that his Department is taking to consider the matter ahead of Budget 2023; and if he will make a statement on the matter. [39742/22]
Amharc ar fhreagraConsumer price (HICP) inflation picked up sharply over the course of last year and rose to a multi-decade high of 9.6 per cent in June. Almost every advanced economy in the world is in the same position, with euro area inflation reaching a record 8.6 per cent in June.
The key driver of the elevated level of inflation at present is the sharp rise in wholesale energy, food and other commodity prices since the onset of the war in Ukraine. As highlighted in the correspondence, pass-through price effects from higher energy prices are increasingly being felt in other sectors including food (via higher energy inputs). Indeed, the recent rise in non-energy or ‘core’ inflation, which stood at 5.6 per cent in June, suggests inflationary pressures are becoming increasingly broad-based.
The Government recognises the impact this has had on households and businesses across the country, particularly SMEs, and has taken significant action. Some €2.4 billion in cost of living measures have been announced since last October. Looking ahead, the Government will continue to address these challenges. As set out in the Summer Economic Statement, Budget 2023 will be a ‘Cost of Living Budget’ and will build on the fiscal supports the Government has already provided to cushion the impact of rising prices.
However, we must be cognisant that resources are limited and while government policy will absorb some of the price shock, we cannot cushion households and businesses from the entire impact. The Government has to balance the appropriate response to the increased cost of living in Ireland with the unprecedented level of global economic uncertainty and macroeconomic risk. Furthermore, in calibrating how we respond to the current challenges, it is important that we strike the right balance and ensure that policy doesn’t inadvertently add further inflationary pressures into the system.
Finally, it is worth pointing out that monetary policy is the first line of defence against inflation. In this context, the European Central Bank raised interest rates last week for the first time in more than a decade.
325. Deputy Michael Fitzmaurice asked the Minister for Finance if he will consider changing the stamp duty rate for those who purchase a commercial property and that undertake to turn it into a residential property; and if he will make a statement on the matter. [39754/22]
Amharc ar fhreagraSection 83D of the Stamp Duties Consolidation Act (SDCA) 1999 entitled “Repayment of stamp duty used for residential development” was introduced by section 61 of Finance Act 2017. It established a scheme whereby a portion of the Stamp Duty paid on the acquisition of non-residential land, where that land is subsequently developed for residential purposes, can be refunded. The net minimum stamp duty payable after a refund is 2%.
The purpose of this scheme is to promote the construction of high-density housing in inner and outer urban settings where “brownfield” sites might otherwise be deemed uneconomical to develop if subject to the full "non-residential" stamp duty rate of 7.5%. It also applies to one off rural housing, but a refund cannot be claimed for curtilage which exceeds 0.4047 hectares (1 acre).
A number of timing and other conditions apply to the scheme which seek to incentivise the delivery of housing promptly and (for multi-unit developments) at a sufficient density.
This scheme was previously extended by two years in Budget 2021, and is currently due to expire for construction projects commenced from 1 January 2023 or later.
Separately, the Deputy may be aware of the Living City Initiative (LCI), a scheme of property tax incentives provided for in sections 372AAA to 372AAD of the Taxes Consolidation Act 1997. It offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying buildings located within ‘Special Regeneration Areas' in Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
There are three types of relief available; owner-occupier residential relief, rented residential relief and commercial/retail relief. Owner-occupier relief is given by writing off qualifying expenditure incurred on the property against total income at a rate of 10% per annum over ten years. Rented residential and commercial/retail relief are both given by way of capital allowances, with eligible expenditure incurred on the property being written off over seven years at a rate of 15% per annum over 6 years and 10% in the final year.
Where a commercial property is converted for residential purposes, the property must have been built prior to 1915 in order to be eligible for either of the residential reliefs. Further information on the conditions applicable available from the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-10/10-13-01.pdf.
As the LCI is due to sunset on 31 December 2022, a review of the Initiative is currently being undertaken by my Department.
326. Deputy Cathal Crowe asked the Minister for Finance if his Department will take steps to stop the sale of a debt (details supplied) by a bank; and if he will make a statement on the matter. [39766/22]
Amharc ar fhreagraI wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding the above, my officials contacted AIB in relation to this matter and received the following response:
‘AIB has been offering customers a comprehensive range of solutions over an extended number of years, including the completion of a series of proactive customer contact and engagement programmes. Customers are afforded an opportunity to avail of a solution and resolve their position through consensual engagement before their loan is sold. Where a judgement order has been obtained from the courts for a debt, statutory court interest may apply. All solutions are assessed to ensure that they are appropriate to a customer’s individual circumstances. AIB continues to support customers, with more than 145,000 forbearance solutions implemented since 2016.
AIB has undertaken a significant amount of due diligence on the Sycamore portfolio ensuring that all data transferred to the purchaser is timely and accurate. Furthermore AIB has set up a dedicated team to support customers through this transition. This team can be contacted on 0818 300 075 or at tst@aib.ie.
327. Deputy Peadar Tóibín asked the Minister for Finance if his attention has been drawn to the Central Bank’s warning that the State has reached the limit of sustainable spending (details supplied); and if he will make a statement on the matter. [39785/22]
Amharc ar fhreagraI have noted the Central Bank’s commentary on risks surrounding the sustainability of public expenditure as published as part of the Quarterly Bulletin. The report highlights vulnerabilities to the public finances arising from a reliance on volatile corporation tax receipts. This is a view which I share, and I have warned many times that unreliable corporation tax revenues are not a sound basis for permanent expenditure. In particular, I have outlined previously how the very high degree of concentration in the corporate tax base, with just ten large companies accounting for more than half of receipts, represents a clear risk. This concentration means our public finances are subject to the business decisions of a small number of highly profitable multinational firms.
I have asked my officials to examine how much of our current corporation tax yield may be ‘excess’, that is the amount that cannot be explained by the growth rate of the domestic economy, in advance of Budget 2023. Identifying this excess will enable us to better plan for a potential downturn in corporation tax receipts in the years ahead while we continue to work to ensure that Ireland remains a top-tier destination for foreign direct investment.
As the Deputy will be aware, Government has committed, in the Summer Economic Statement, to a medium-term budgetary strategy that sets out how public spending will be controlled at sustainable levels through an expenditure rule, whereby the growth rate of core current public expenditure will be fixed at the trend growth rate of the economy (5 per cent per annum). Even if other variables differ from expectations, the expenditure ceilings will remain fixed. This means that even if corporation tax revenue continues to exceed expectations we will not fund additional expenditure on this basis.
Government has temporarily and on a one-off basis only departed from this strategy for 2023. Next year, a Budget package of €6.7 billion will be introduced. To protect public services, core public expenditure will now grow at 6½ per cent. The planned tax package has also been more than doubled and now stands at €1.05 billion. This is in recognition of the radically altered economic environment, with inflation now running at multi-decade highs. Reflecting this, Budget 2023 will be a ‘cost of living’ Budget, predominately focussed on helping to ease the burden of inflation on households.
However, I would stress that this is an amendment solely for one year. From 2024 onward, we will return to the parameters set out in the medium-term budgetary strategy, with core current expenditure growth fixed at 5 per cent. This approach strikes the appropriate balance between providing assistance today while ensuring that we are in a strong fiscal position for the challenges of the future.
328. Deputy Niall Collins asked the Minister for Finance if he can review correspondence (details supplied); and if he will provide an update on the issues raised therein; and if he will make a statement on the matter. [39814/22]
Amharc ar fhreagra353. Deputy Ged Nash asked the Minister for Finance his views on a policy issue raised by an organisation (details supplied) pertaining to one member pension arrangements; and if he will make a statement on the matter. [40239/22]
Amharc ar fhreagra359. Deputy Michael Creed asked the Minister for Finance if his attention has been drawn to the implications of a recent decision by the Pensions Authority to suspend the provision of one member pensions and the implications that this has for consumers given the fact that there are no suitable alternative savings vehicles yet in place; if he will consider extending the deadline for compliance with the IORP 11 for these schemes for six months from 1 July to 1 January 2023 given the circumstances; if he will allow time for proposed changes to be made to the PRSA referenced in the report of the Interdepartmental Pensions Reform and Taxation Group in November 2020; and if he will make a statement on the matter. [40347/22]
Amharc ar fhreagra375. Deputy Catherine Murphy asked the Minister for Finance if he will clarify the position in respect of one member pension arrangements; if he has engaged with the Pensions Authority in respect of extending the deadline for compliance (details supplied) [40666/22]
Amharc ar fhreagra381. Deputy Sean Sherlock asked the Minister for Finance if he is satisfied that the deadline for compliance with the European Union Directive on the activities and supervision of institutions for occupational retirement provision II for one member pensions arrangements is attainable; and if an extended deadline is being considered. [40844/22]
Amharc ar fhreagra384. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); and if he will make a statement on the matter. [40920/22]
Amharc ar fhreagra450. Deputy Ruairí Ó Murchú asked the Minister for Finance if he will consider a derogation on the benefit-in-kind tax on personal retirement savings account pension schemes; and if he will make a statement on the matter. [41880/22]
Amharc ar fhreagra451. Deputy Ruairí Ó Murchú asked the Minister for Finance if his attention has been drawn to the benefit-in-kind tax implications on employees paying into personal retirement savings account pension schemes from1 July 2022; and if he will make a statement on the matter. [41882/22]
Amharc ar fhreagra452. Deputy Ruairí Ó Murchú asked the Minister for Finance his plans to update the personal retirement savings account pension scheme; and if he will make a statement on the matter. [41883/22]
Amharc ar fhreagraI propose to take Questions Nos. 328, 353, 359, 375, 381, 384, and 450 to 452, inclusive, together.
IORP II sets out minimum standards for the management and supervision of pension schemes, with the objective of ensuring the soundness of occupational pensions and better protections for scheme members and beneficiaries across the European Union. IORP II requirements were transposed into Irish law by way of the European Union (Occupational Pension Schemes) Regulations 2021 (S.I. No. 128 of 2021) which came into force on 22nd April 2021.
Implementation of IORP II and related policy which seeks to improve the governance and supervision of occupation schemes, ultimately benefiting pension savers, is a matter for the Pension Authority, an independent statutory body which is the Regulator for pensions in Ireland, and the Department of Social Protection, as the policy lead department in relation to such matters.
Accordingly, it would be inappropriate for the Minister for Finance to interfere in the supervision of compliance with the provisions of the 1990 Pensions Act or to direct the Pensions Authority to extend any IORP II related compliance deadline. Furthermore, IORP II requires Member States to ensure that competent authorities, such as the Pensions Authority, conduct their tasks in a transparent, independent and accountable manner.
Separately, the Report of the Interdepartmental Pensions Reform and Taxation Group (IDPRTG) published in late 2020 set out a number of measures to aid in the harmonisation and simplification of supplemental pensions. One of these relates to the abolition of the differential treatment of PRSAs for funding purposes, and the BIK treatment of employer contributions to PRSAs.
This Group comprising officials from the relevant Departments and organisations reconvened in 2021 to consider implementation of the various recommendations. A package of tax-related measures were enacted in the Finance Act 2021.
The Group continues its work to bring about further reforms of the supplemental pension landscape with a view to bringing more of these to legislative effect during 2022. Accordingly, a number of proposals from the Report are currently being worked on, some of which are technical in nature and others which have wider policy implications necessitating careful consideration through the normal policy channels. As you will be aware, any measures requiring legislative change would be subject to Government's and subsequently parliamentary approval, and there can be no guarantees until the relevant Bill is signed into law and enacted.
329. Deputy Verona Murphy asked the Minister for Finance the total amount of VAT raised for each of the past three years in respect of other activities subject to VAT from remote bookmakers and remote betting intermediaries, notwithstanding the exemption of betting activities from VAT; and if he will make a statement on the matter. [39825/22]
Amharc ar fhreagraWhile bookmaking and remote betting activities are exempt from VAT, operators in this sector may also be engaged in activity for which VAT is chargeable.
I am advised by Revenue that the VAT paid in each of the last 3 years, by persons registered to provide remote betting or remote betting intermediary services in the State, is indicated in the table below.
The Deputy will wish to note that these figures are net of any VAT input credit claimed by such operators in relation to the export of betting and/or gaming services.
|
Year |
VAT €m |
|
2021 |
7.9 |
|
2020 |
4.8 |
|
2019 |
2.4 |
330. Deputy Verona Murphy asked the Minister for Finance if it is the practice of the Revenue Commissioners to issue remote betting licences to entities offering remote betting products to Irish consumers that are also offering from the same websites or apps, games and lotteries by remote means which are illegal to offer remotely in Ireland; if any such practice should change; and if he will make a statement on the matter. [39826/22]
Amharc ar fhreagraPolicy on gambling regulation mainly falls within the remit of my colleague, the Minster for Justice. Gambling regulation is currently provided for, in particular, by the Betting Act 1931 (as amended) and the Gaming and Lotteries Act 1956 (as amended). These acts provide for the licensing and operation of bookmakers, and for the control and regulation of gaming and lottery activities.
The operational aspects of gambling regulation are dealt with by a number of State bodies including An Garda Síochána, the Courts and Revenue. Revenue has specific statutory responsibilities in relation to the issuing of excise licences for certain specified betting activities and also, of course, in relation to the collection of tax and duty.
All bookmakers, remote bookmakers, and remote betting intermediaries are required to hold a valid excise licence. Such licences are issued by Revenue, in accordance with legislative provisions, and registers of all licences issued are published on Revenue’s website.
The statutory provisions on the authorisation of remote bookmaking services are contained in the Betting Act 1931, as amended. The provisions assign specific functions to An Garda Síochána, the Minister for Justice, the Courts and Revenue. In line with section 7B of the Betting Act 1931 (as amended), Revenue is required to issue a remote bookmaker’s licence on foot of:
- confirmation that the applicant for a licence has a Certificate of Personal Fitness as provided for in section 5 of the Betting Act 1931 (as amended)
- payment of the relevant excise licence fee
- confirmation of tax clearance status by the applicant for a licence.
Therefore, Revenue can only issue a remote bookmaker’s licence if the relevant operator has obtained a Certificate of Personal Fitness from either An Garda Síochána or the Minister for Justice indicating that the operator is a fit and proper person to hold a remote bookmaker’s licence. A Certificate of Personal Fitness is obtained from An Garda Síochána for operators located in the State, or the Minister for Justice for operators located outside of the State.
Furthermore, section 7B (3) of the Betting Act 1931 ensures that once all the requirements as set out above have been met, Revenue does not have discretion to refuse the issuing of a Remote Bookmaker’s Licence on any other grounds.
I am informed by Revenue that it does not have any role in the regulation of online websites or apps that offer games and lotteries.
The Deputy will recall that, in a reply to one of her questions last month, my colleague, the Minister of State at the Department of Justice, outlined to the House that “gaming” as understood by the Gaming and Lotteries Act 1956 does not include the provision of games and lotteries by remote means, such as online or via apps. In that context, the Programme for Government gives a clear commitment to establish a gambling regulator focused on public safety and well-being, covering gambling online and in person, and the powers to regulate advertising, gambling websites and apps. As the Deputy will be aware from my colleague’s recent reply, the Government has approved the Gambling Regulation Bill for priority drafting and publication, and drafting is under way under the policy direction of the Department of Justice.
331. Deputy Neale Richmond asked the Minister for Finance if the tax liability of two persons who share the stake in a home but one is no longer willing or not in a position of mental capacity to pay their share of the property tax can be adjusted; and if he will make a statement on the matter. [39833/22]
Amharc ar fhreagraI am advised by Revenue that the Finance (Local Property Tax) Act 2012 (as amended) sets out who is responsible for the discharge of Local Property Tax (LPT) when a property is owned by two or more persons.
If two or more persons have an equal interest in a residential property, each person is individually responsible for discharging the full liability to LPT. Therefore, any owner or joint owner of a residential property on 1 November 2021 is responsible for discharging the LPT on that property for the period 2022-2025. If the LPT liability is not paid, Revenue can collect the outstanding LPT from any of the joint owners.
Where properties are in joint ownership, it is necessary for the joint owners to nominate one of the owners as the “designated liable person”. A designated liable person is responsible for submitting the LPT return and making payment of the LPT liability on behalf of all owners. Revenue sends all LPT correspondence to the designated liable person. It is possible to change the person who is the designated liable person by contacting Revenue directly. Further information on discharging an LPT liability on a jointly owned property can be obtained by visiting the Revenue website at: www.revenue.ie/en/property/local-property-tax/who-is-liable-for-lpt-and-or-household-charge/who-is-liable-for-lpt.aspx.
Regarding the situation where a person is having difficulty meeting their LPT liability, it may be possible for the person (or persons) concerned to either enter into a flexible LPT payment arrangement with Revenue or defer payment of LPT.
Revenue engages extensively with property owners to agree flexible LPT payment arrangements that best suit their circumstances and avoid unnecessary hardship. The full range of payment options, including phased arrangements, that are available to property owners can be reviewed on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.
A person (or persons) may defer payment of LPT where certain conditions are met. There are five separate categories available for deferral of LPT: income threshold, mortgage adjusted income threshold, personal representatives of a deceased liable person, personal insolvency and hardship grounds. A qualifying person may opt to either fully defer payment of LPT or partially defer payment of LPT, with 50% paid and 50% deferred. However, it is important to note that deferred LPT remains a charge on the property until it is paid. In addition, interest accrues on the unpaid amount until it has been paid. From 1 January 2022, the rate of interest charged on all deferred amounts is 3% per year. Prior to 1 January 2022, interest was charged at the rate of 4% per year. Revenue has published detailed guidance on the deferral, or part deferral, of payment of LPT, which is available at: www.revenue.ie/en/property/documents/lpt/guidelines-for-deferral-of-lpt.pdf.
Finally, any assistance required by property owners in meeting their LPT liability or on nominating a person as a designated liable person can be obtained by contacting the LPT helpline by phone at (01) 7383626, online through the ‘MyEnquiries’ service via myAccount or in writing to LPT Branch, PO Box 1, Limerick.
332. Deputy Michael Lowry asked the Minister for Finance if he has considered the impact of the uncertainty of the delays in the adoption of the corporation taxation rate at European Union level on the investment strategies of multinational companies and the way that this may adversely impact Ireland’s attractiveness in a competitive global marketplace. [39874/22]
Amharc ar fhreagraIreland signed up to OECD global agreement in October 2021, with Pillar Two consisting of a minimum effective tax rate of 15% for large corporates. The European Commission published its proposal for the EU Minimum Tax Rate Directive on 22 December 2021.
Ireland has been fully engaged on the technical work regarding the proposed Directive throughout the first half of 2022. Though agreement has not yet been reached by all Member States, I look forward to this happening later this year. Ireland fully supports the proposal as it is balanced and provides the certainty which businesses need by avoiding divergent, unilateral measures in different countries.
The revised implementation timeline for the Directive now allow for a more considered implementation, in consultation with stakeholders. The European Commission initially proposed that the Pillar Two rules would be effective from 1 January 2023, however, the current draft Directive now provides that the rules will be applied within the European Union for periods of account beginning on or after 31 December 2023. With filing not due until 18 months after the initial period of account, for most companies this would mean that the first Pillar Two returns would not be due until mid-2026.
My Department opened a consultation in May on the proposed Pillar Two rules where stakeholders, including businesses, can give their view. The consultation period has just closed (on 22 July), and my officials are now beginning to examine the responses received.
Ireland is mindful of the need to maintain a stable environment to allow business prosper. The best way of achieving that is follow through on our commitment made in October 2021 and be part of the global minimum tax rate which aims to place a floor on tax competition between countries and reduce the incentive to shift profits to low or no tax jurisdictions. This is a global issue, which requires global action to solve in a co-ordinated way.
333. Deputy Michael Lowry asked the Minister for Finance the consultation that he has had with multinational companies to ascertain their concerns in relation to the increase in Ireland’s corporation tax rate; and if he will make a statement on the matter. [39875/22]
Amharc ar fhreagraIreland, along with almost 140 other countries, made the commitment to the OECD Two Pillar agreement last October, with Pillar Two of the agreement consisting of a minimum effective tax rate of 15% for large corporates.
Given the economic importance of the OECD proposals to Ireland, I held a public consultation on the proposals in mid-2021, with submissions received from a broad range of interested stakeholders. These submissions were considered in detail before Ireland committed to joining the agreement, and are published on my Department's website at www.gov.ie/en/publication/5e8d3-responses-to-oecd-tax-reform-consultation/
I believe that the Two Pillar agreement represents a fair compromise, reflecting the competing interests of the many countries involved in the negotiations, large and small, developed and developing. It will ultimately bring long-term stability and certainty to the international tax framework by placing a floor on tax competition between countries and reducing the incentive to shift profits to low or no tax jurisdictions.
The European Commission published its proposal for the EU Global Minimum Tax Directive on 22 December 2021, which will provide for a co-ordinated implementation of the Pillar Two agreement across EU Member States. Member States engaged in intensive discussions on the proposed Directive in Q1 of this year, and a revised text currently has broad support among most Member States. I expect that the Directive will be unanimously agreed by Member States later this year.
Stakeholder engagement has been central to my Department's approach to tax reform in recent years. The Corporation Tax Roadmap (2018) and subsequent Update (2021) set out a clear timeline for reforms and consultation papers and feedback statements have been published on individual measures. A similar process is under way in respect of the Pillar Two minimum effective tax. A consultation period has just closed (on 22 July) in respect of a consultation paper published on 26 May, and my officials are now beginning to examine the responses received.
It is intended that further consultation will take place with stakeholders in advance of the planned transposition of the measure in Finance Bill 2023.
334. Deputy Patrick Costello asked the Minister for Finance the number of posts advertised by his Department through the mobility scheme at assistant principal and principal officer levels to date in 2022, in tabular form; the title of each post advertised, the number of applicants for each post, the number of applicants shortlisted for interview, if a suitable applicant was identified for the post; and if not, the way that the post was filled. [39881/22]
Amharc ar fhreagraI wish to advise the Deputy that there have been 6 posts in total advertised by the Department of Finance through the mobility scheme at Assistant Principal and Principal Officer levels to date in 2022. 1 post (Facilities Manager (AP)) was advertised a second time, after no suitable applicant was identified.
They are as follows:
|
Grade |
Title of post advertised |
Number of applicants |
Applicants interviewed |
Suitable applicant identified? |
Way post was filled |
|
AP IGEES |
AP Labour Market Analysis and Forecasting Unit |
0 |
0 |
No |
Post remains vacant |
|
AP |
AP Banking Division - SME Access to Credit/Non Banking Section |
1 |
1 |
Yes |
Mobility |
|
AP |
AP Financial Services/AML Unit |
1 |
n/a |
n/a |
Decision to fill with staff member returning to Dept. |
|
AP |
AP Investment Funds Unit |
Competition still open |
n/a |
n/a |
n/a |
|
AP |
Facilities Manager (AP) |
Competition still open |
n/a |
n/a |
n/a |
|
PO |
Head of International Tax |
1 |
0 |
No |
Decision to fill with staff member returning to Dept. |
335. Deputy Fergus O'Dowd asked the Minister for Finance if a budget submission from an organisation (details supplied) will be examined; and if he will make a statement on the matter. [39893/22]
Amharc ar fhreagraI can confirm that I have received the pre-budget submission of the organisation to which the Deputy refers.
The contents will be considered in the context of the forthcoming Budget and as the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
