Written Answers Nos. 125-139
125. Deputy Paul Donnelly asked the Minister for Finance the number of full-time staff vacancies by job title in the Financial Services and Pension Ombudsman as of 19 September 2022; the full-year cost of filling each of these vacancies; and when each of the vacancies will be filled in tabular form. [46835/22]
Amharc ar fhreagraThe Office of the Financial Services and Pensions Ombudsman (FSPO) has advised me that as of 19 September 2022, the FSPO has an approved staff complement of 90.2, with 2.6 vacancies. This number of vacancies takes account of contracts due to commence, including that of the Financial Services and Pensions Ombudsman, commencing on 1 December 2022.
The current vacancies are at Higher Executive Officer (1.6) and Executive Officer Grade (1). The FSPO generally conducts recruitment by way of competitions at specific grades, to establish panels from which current and future vacancies are filled. The FSPO will determine the appropriate assignment of qualifying candidates in accordance with strategic and operational needs and the qualifications and experience of the qualifying candidates. Full-year costs are based on Circular 04/2022 and the filling of vacancies at the first point of the scale.
|
Vacancies |
Full-year cost |
Intended timeline for filling vacancies |
|
Higher Executive Officer (1.6) |
€50,848 x 1.6 = €81,356.80 |
November 2022 |
|
Executive Officer (1) |
€31,698 x 1 = €31,698 |
February 2023 |
127. Deputy Michael Lowry asked the Minister for Finance if changes to benefit-in-kind in respect of company vehicles which will come into effect from January 2023 will be reviewed (details supplied); and if he will make a statement on the matter. [46863/22]
Amharc ar fhreagraAt the outset, the Deputy should note that recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes I brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four. EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges will incentivise employers to provide employees with low-emission cars.
I am aware there have been arguments surrounding the mileage bands in the new BIK structure as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its implementation in 2023. Therefore there are no plans to review it.
128. Deputy Emer Higgins asked the Minister for Finance the number of persons that have availed of the help to buy scheme each year since its introduction. [46958/22]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
I am advised by Revenue that annual statistics on the Help to Buy (HTB) scheme are published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-yearly.aspx. In addition, monthly statistics are also available and published at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx.
I am further advised by Revenue that the number of approved claims and the number of approved and pending claims for each year, based on the year the application reached the claim stage of the process, are outlined in the following table:
|
Year |
Approved and pending claims |
Approved claims |
|
2017 |
5,321 |
5,235 |
|
2018 |
5,006 |
4,960 |
|
2019 |
6,645 |
6,569 |
|
2020 |
6,155 |
6,085 |
|
2021 |
7,555 |
7,673 |
|
2022 (year to date) |
5,171 |
4,678 |
129. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of the costs for all live studies, reviews and research projects undertaken or commissioned by him; and the details of the person or body that is conducting each study, review and research project in tabular form. [47044/22]
Amharc ar fhreagraI can advise the Deputy of the costs, including estimates where relevant, and the bodies conducting the live studies, reviews and research projects in my Department as follows:
|
Live studies, reviews and research projects |
Cost (Ex-VAT) |
Conducted by |
|
External review of Help to Buy Scheme |
€64,300 |
Mazars |
|
-Working paper/research - Revenue Exposure to Climate Change -The role of firm dynamism in productivity -Flows into self-employment -Modelling the Ukraine impact -The Impact of the Global Tax Reforms on Ireland’s Corporate -Investment and the Wider Economy -Economic impacts of climate transition -Impact of population ageing on the public finances -SME Structural Change Research -Impact of wage subsidies on the labour market during COVID-19 - joint with Revenue and ESRI |
€250,000 (estimate) |
Joint research: Department of Finance and the Economic and Social Research Institute (ESRI) |
|
COVID-19 and productivity enhancing reallocation |
Nil |
Joint research: Department of Finance, Revenue and the Organisation for Economic Cooperation and Development (OECD) |
|
The Anti-Money Laundering Steering Committee (AMLSC), a committee chaired by the Department of Finance incorporating membership from both Government bodies and the private sector, has four subgroups examining key priorities in 2022. The subgroups are examining the areas of 1) how Ireland will meet obligations in relation to risk assessments; 2) enforcement; 3) statistics gathering and analysis; 4) information sharing. The recommendations of the four subgroups will be brought to the AMLSC for review in the first instance, and may subsequently be brought to Government for consideration, where appropriate. |
Nil |
Department of Finance |
|
Report on the drivers of the cost and availability of finance for residential development |
€80,000 |
KPMG |
|
Retail Banking Review |
€183,000 (estimate) |
Department of Finance |
|
Research to identify and develop tools to better enable consumers to switch their banks. |
€68,800 - This cost is fully recoupable from AIB and PTSB |
ESRI |
|
SME Credit Demand Survey April 2022 to September 2022 |
€227,160 - This cost is fully recoupable from AIB and Bank of Ireland |
Behaviour and Attitudes |
|
Productivity, Structural Change and the Capital-Labour Ratio: SME Evidence |
€250,000 |
ESRI |
|
Financial Services and Pensions Ombudsman – Periodic Critical Review |
Nil |
Department of Finance |
130. Deputy Paul Murphy asked the Minister for Finance the frequency of the Revenue Commissioners not following the lead role of the Department of Social Protection in relation to employment status; when this has occurred; the areas in which this has happened; and the way that a difference in employment status determination between the Revenue Commissioners and the Department of Social Protection is resolved (details supplied). [47056/22]
Amharc ar fhreagraEmployment classification is a complex area and there is no single clear definition of the terms ‘employed’ or ‘self-employed’ in Irish or EU law. As a matter of clarification, questions of employment versus self-employment status impact the work of three different Government bodies. The Department of Social Protection (DSP) has responsibility for the PRSI system and determines employment status for social insurance purposes; the Workplace Relations Commission (WRC) determines employment status when adjudicating on employment rights matters; and Revenue may determine a worker’s employment status in the context of his/her treatment for income tax purposes and in allocating the income earned to the appropriate Schedule under the Taxes Consolidation Act 1997.
While in most situations involving determinations of employment status there is commonality of approach across the three bodies, the decision of one organisation is not binding on the other, and as a consequence, a determination of employment status in one context may not be the same as in another context.
There are close working relationships between the three bodies, including conducting joint compliance interventions to ensure that employers are operating employment arrangements correctly. Furthermore, in July 2021, an interdepartmental working group comprising the DSP, Revenue and the WRC further updated the Code of Practice on Determining Employment Status. The purpose of the revised Code is to provide an enhanced understanding of employment status, taking into account current labour market practices and developments in legislation and case law. These developments include, for example, new forms of work such as platform work and the gig economy. It is a ‘living document’, which will continue to be updated to reflect relevant changes into the future.
Instances where determinations of employment status between Revenue and the DSP (and/or the WRC) differ are very rare and there is open dialogue between the relevant bodies to discuss the respective views. However, as already stated, the decision of one organisation is not binding on the others.
One example where the approach between DSP and Revenue is different involves home tutors. The Department of Education has an administrative agreement with Revenue that while home tutors are subject to class S PRSI (self-employed for DSP purposes), income tax and PRSI are deducted under the PAYE system (the Revenue treatment for employees) and the tutor must file an income return only if they are in receipt of other income.
Given how fine the dividing lines can be between employment and self-employment, it is a testament to the good working relations between the three Government bodies involved that there is, by and large, a common view on employment status issues.
131. Deputy Eoin Ó Broin asked the Minister for Finance the number of residential properties disposed of in each of the years 2016 to 2021 and to date in 2022 in circumstances in which those properties were acquired between 7 December 2011 and 31 December 2014, and as such, are not subject to capital gains tax under section 604A of the Taxes Consolidation Act 1997. [47100/22]
Amharc ar fhreagraI am advised by Revenue that the available information in relation to section 604A Capital Gains Tax relief is published at:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf.
The latest available year is 2020. Tax returns do not detail the individual properties disposed of, or the gains on these disposals. However, the numbers of claimants by sector and by asset type, including residential premises, are detailed in the statistics published by Revenue.
132. Deputy Pádraig O'Sullivan asked the Minister for Finance if financial supports will be put in place for those working from home given the ongoing increase in the cost of utilities; and if he will make a statement on the matter. [47204/22]
Amharc ar fhreagraThe Government recognises the impact rising prices have had on households and businesses across the country and has taken significant action. Some €2.4 billion in cost of living measures has been announced since last October. Looking ahead, the Government will continue to address these challenges head on. 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.
The Government supported households and firms through the pandemic and will continue to do so in the face of unprecedented energy price spikes caused by Putin’s war. 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.
I am advised by the Revenue Commissioners that there are a number of administrative and legislative provisions under which employers can support employees in working from home.
Employees may incur certain expenditure in the performance of their duties working from home, such as additional heating, electricity, and broadband costs. Revenue operates a long-standing administrative practice which allows an employer to make payments up to €3.20 to employees, for each day worked from home, subject to certain conditions, without deducting PAYE, PRSI or USC. There is no legal obligation on an employer to make such a payment, as it is at the discretion of the employer.
The home-working allowance originated in 1993; according to the CSO's CPI Inflation Calculator, the inflation rate in Ireland since January 1993 is 81 per cent which, if applied to the €3.20 rate, would amount to €5.79 today.
As the Deputy may be aware, my Department reviewed the tax arrangements for remote working as part of the 2021 Tax Strategy Group process and published the resultant paper on the Department's website. The review found that the daily tax-free rate of €3.20, up to €16 per week or €832 per annum compares favourably internationally. For example, in the UK, the weekly rate is just £6 per week or a maximum of £312 per annum.
Where an employer does not pay €3.20 per day to a remote worker, or that amount doesn’t sufficiently cover the additional cost borne by the employee as a result of working from home, the employee may be entitled to claim Remote Working Relief, which is provided for in section 114A of the Taxes Consolidation Act (TCA) 1997. This measure allows employees, subject to satisfying certain conditions, to claim an income tax deduction amounting to 30% of the relevant cost of electricity, heating and broadband for the days spent working from home as a remote worker.
Revenue has advised that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a benefit-In-kind charge, where the equipment is provided primarily for business use. In addition, the provision of a telephone line, broadband and such facilities for business use will also not give rise to a benefit-in-kind charge, where private use of the connection is incidental. These exemptions are provided for in section 118 TCA 1997.
Finally, comprehensive guidance material on the range of measures available to remote workers is published on the Revenue website. Detailed material is included in Tax and Duty Manual Part 05-02-13 Remote Working Relief, which is available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf.
133. Deputy Danny Healy-Rae asked the Minister for Finance the progress that has been made to replace the disabled drivers medical board of appeals; and if he will make a statement on the matter. [47212/22]
Amharc ar fhreagra134. Deputy Danny Healy-Rae asked the Minister for Finance the number of persons that are waiting for their appeals to be dealt with through the Disabled Drivers Board of Appeal; and if he will make a statement on the matter. [47226/22]
Amharc ar fhreagraI propose to take Questions Nos. 133 and 134 together.
The Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on 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, effective from 30th November 2021, 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. Department of Finance 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. Processes to support the nomination of suitable candidates are nearing completion. Once these processes have been completed the Minister for Finance 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.
As of the 26th September, there are 672 appeal hearings outstanding.
135. Deputy Pauline Tully asked the Minister for Finance the estimated additional revenue that would be generated from a 3% surcharge on all taxable income above €400,000 and €750,000 respectively in tabular form; and if he will make a statement on the matter. [47244/22]
Amharc ar fhreagraI am advised by Revenue that the table below sets out the estimated yield to the Exchequer, on a first and full year basis, from the introduction of a 3rd rate of income tax of 43% applicable to taxable income in excess of €400,000 and €750,000 respectively.
|
First Year Yield €m |
Full Year Yield €m |
|
|
On income above €400,000 |
95 |
130 |
|
On income above €750,000 |
50 |
70 |
136. Deputy Niamh Smyth asked the Minister for Finance if he will review matters raised in correspondence (details supplied) ahead of Budget 2023; if he will address these concerns; and if he will make a statement on the matter. [47302/22]
Amharc ar fhreagraConsumer price (HICP) inflation has picked up sharply over the course of this year and stood at 9 per cent in August. Almost every advanced economy in the world is in the same position, with inflation rates of 8.3 and 9.1 per cent recorded in the US and euro area respectively in August.
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. However, as highlighted in the correspondence, pass-through price effects from higher energy prices are increasingly being felt in other sectors. Indeed, non-energy or ‘core’ inflation has picked up sharply in recent months and stood at 6.2 per cent in August, suggesting inflationary pressures are increasingly broad based.
The Government recognises the impact rising prices have had on households and businesses across the country and has taken significant action. Some €2.4 billion in cost of living measures has been announced since last October. Looking ahead, the Government will continue to address these challenges head on. 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.
The Government supported households and firms through the pandemic and will continue to do so in the face of unprecedented energy price spikes caused by Putin’s war. 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.
137. Deputy Niamh Smyth asked the Minister for Finance if he will review matters raised in correspondence (details supplied) ahead of Budget 2023; if he will address these concerns; and if he will make a statement on the matter. [47303/22]
Amharc ar fhreagra139. Deputy Niamh Smyth asked the Minister for Finance if he will review matters raised in correspondence (details supplied) ahead of Budget 2023; if he will address these concerns; and if he will make a statement on the matter. [47348/22]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 139 together.
The issues raised in this question relate to the community pharmacy sector and are a matter for the Minister of Health.
However, I would like to reiterate the Government’s recognition of the key role of Pharmacy in the Community, and the very significant contribution made by this sector to patients and the public in responding to their health needs during the course of the pandemic. Government acknowledges the vital role that community pharmacy will play in the development and implementation of future healthcare reform, especially in regard to the aims and vision of Sláintecare.
The Submission referred to in your question has been considered in the context of wider health priorities during budget discussions. Notwithstanding this however, certain other matters raised have been previously drawn to the attention of the Government and work is ongoing on examining particular issues.
I understand that currently there are reports of a current acute workforce issue, particularly in relation to community pharmacy. The Pharmaceutical Society of Ireland (PSI), the pharmacy regulator, has been liaising with stakeholders, on efforts being taken within the sector to understand and address this issue. I am informed that this is a complex problem with many contributing factors and multiple stakeholders. Workforce challenges are being experienced in other sectors nationally, and in the pharmacy sector in a range of other countries. I also understand that the PSI are currently undertaking a project, due to run across 2022-’23 to assess emerging risks to the continued availability of a professional pharmacy workforce within community and hospital pharmacy in Ireland. The PSI has also committed in its Service Plan 2022 to complete a review of the Third Country Qualification Route (TCQR).
During the COVID-19 pandemic the Health Service Executive established a Community Pharmacy Contingency Planning working group with relevant stakeholders, to support the implementation of all COVID-19 support measures in the context of pharmacy services and the contribution this sector could make. The work of the Forum has now transitioned to discussing the strategic direction of the community pharmacy profession.
The Government was delighted to announce the commencement of the free contraception scheme for women aged 17–25, which is a big milestone in the delivery of our commitments, under the Women’s Health Action Plan 2022 – 2023 to improve all areas of women’s healthcare. Pharmacies who sign up to provide services under the scheme, are now further empowered to support women’s health with the provision of prescription contraception free to 17–25-year-olds.
The Minister for Health will engage as necessary with government colleagues in addressing relevant issues as they arise.
138. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update in relation to the removal of VAT on defibrillators being examined; the status of same; and if he will make a statement on the matter. [47306/22]
Amharc ar fhreagraAs the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of a Budget decision.
