Written Answers Nos. 274-293
274. Deputy Pearse Doherty asked the Minister for Finance if he will provide a comprehensive breakdown of the tax compliance measures, including PAYE compliance interventions and increased debt management activity, and the revenue associated with each. [51339/22]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the additional tax revenues anticipated to arise from enhanced Revenue compliance activities during 2023 as set out in ‘Budget 2023 – Tax Policy Changes’ which was published on Budget Day.
I am advised by Revenue that a number of specific risk areas will be targeted as part of Revenue’s activities next year that will include a continuing focus on tax compliance relating to share awards made by employers to directors/employees as well as an examination of non-pay benefits paid to directors/employees; undertaking additional outdoor initiatives to combat shadow economy activity and a return to normalised levels of debt management activity, following its effective suspension during the period of the Covid-19 pandemic.
The anticipated additional revenues for 2023 of €80 million are a conservative estimate based on the actual yield from Revenue’s audit and compliance activities in the ten-year period 2012 to 2021.
I am further advised that, as was the case for the compliance dividend provided for in Budgets 2012-2019, Revenue will conduct a detailed assessment of the programme and publish its outcome along with its 2023 Annual Report.
275. Deputy Pearse Doherty asked the Minister for Finance if he will provide an update with respect to the review of the disabled drivers and disabled passengers scheme; the funding that was allocated towards it in 2023 compared to 2022 and 2021; and if he will make a statement on the matter. [51340/22]
Amharc ar fhreagraThe 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 cost to the Exchequer of the scheme, (excluding Motor Tax) was €62 million in 2021 and is currently at €59m Y.T.D., reflecting reductions in fuel grant claims arising from COVID-19 travel restrictions within Ireland. The cost of the scheme in 2023 is expected to be similar to that of previous years. 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.
In relation to the review of the Disabled Drivers and Disabled Passengers Scheme, as the Deputy will be aware, I gave a commitment to the Dail that such a review including a broader review of mobility supports for persons with disabilities, would be undertaken.
In this context I have been working with Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We both agreed that the review should be brought within a wider review under the auspices of the National Disability Inclusion Strategy (NDIS), to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities.
We consider this the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.
The NDIS working group, chaired by Minister Anne Rabbitte, with officials from both this Department and the Department of Children, Equality, Disability, Integration and Youth as well as others, has held a number of meetings this year and have completed a stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities. At the next meeting of the Transport Working Group in November, proposals for next steps from all members (including the Department of Finance, agencies and stakeholders) will be considered to complete the work required under the NDIS.
As part of its contribution to the NDIS review, my Department established an information-gathering group to capture the experiences, expertise and perspectives of former Disabled Drivers Medical Board of Appeal (DDMBA) members and Principal Medical Officers (PMOs) in the HSE. A range of outputs have been produced, providing information and views on the DDS scheme as inputs into the broader review.
My officials will continue to engage constructively with the NDIS review with a view to assisting in bringing forward proposals for Government to consider.
I cannot comment on any potential changes to the scheme in advance of these proposals.
276. Deputy Pearse Doherty asked the Minister for Finance if there is scope without new legislation for refundable tax credits to be introduced through the income tax system given the use of refundable tax credits through the research and development tax credit regime; and if he will make a statement on the matter. [51341/22]
Amharc ar fhreagraAs the Deputy may be aware, in light of recent international tax changes, a number of amendments were made in Budget 2023 regarding the R&D Tax Credit. These are timing changes and do not affect the quantum of credit that a company is entitled to claim. As a result, the changes are net neutral in budgetary terms.
- The current system which offset the R&D tax credit against corporation tax liabilities and the payment in three payable instalments is being changed to a new fixed three-year payment system.
- A company will have an option to call for payment of their eligible R&D tax credit or to request for it to be offset against other tax liabilities.
- Existing caps on the payable element of the credit are being removed.
- The first €25,000 of a claim will now be payable in full, to provide a cash-flow benefit for smaller R&D projects and encourage more companies to engage with the regime.
Transitional measures will be in place for one year, to smooth the transition to the new payment system for companies that are already engaged in research & development activities.
The R&D tax credit is repayable only in respect of eligible R&D expenditure which is covered under the existing R&D legislative framework.
There is no scope to introduce an income tax refundable tax credit without legislative amendments. Furthermore, there are no current plans to introduce a system of refundable income tax credits.
The matter of refundable tax credits was looked at in some detail in 2002 by the Working Group established under the Programme for Prosperity and Fairness. The Group was chaired by the Department of Finance and included representatives from ICTU, IBEC, the various farming organisations, the Community and Voluntary Pillar, relevant Government Departments and the Office of the Revenue Commissioners. Notwithstanding the passage of time, many of the findings and conclusions identified by the Working Group remain relevant and valid today.
The Working Group found that there were significant disadvantages with such a system. These included the potential negative impacts on the incentive to work, labour supply, labour force participation and overall productivity and output. Refundable tax credits may not be consistent with the objective of encouraging as many people as possible to join or remain in the workforce. In addition, I would note that the minimum wage has been increased from €8.65 per hour to €11.30 per hour, between 2016 and 2023 in an effort to support those on lower incomes.
The Commission on Welfare and Taxation recently considered the issue of refundable tax credits, noting that the 2009 Commission on Taxation concluded against the introduction of refundable tax credits as did the 2012 Advisory Group on Taxation and Welfare. The Commission report states “the costs of introducing a system of refundable tax credits renders it prohibitively expensive and counter to the Commission net revenue-raising approach ”. Further details can be found in the Commission’s report- www.gov.ie/en/publication/7fbeb-report-of-the-commission/.
277. Deputy Pearse Doherty asked the Minister for Finance the number of compliance interventions made by the large cases high wealth individuals division; the money recouped as a result of these interventions in each of the years 2019, 2020 and 2021; and if he will make a statement on the matter. [51351/22]
Amharc ar fhreagraI am advised by Revenue that Large Cases – High Wealth Individuals Division (LC-HWID) has responsibility for the following business areas:
- Management of the tax affairs of High Wealth Individuals,
- Approval and administration of certain pension schemes, and
- Identification of and challenge to tax avoidance transactions.
The details requested by the Deputy are set out in Table 1 for the range of compliance interventions undertaken by LC-HWID for the years requested. The Deputy may wish to note that a compliance intervention may not be initiated and closed in the same year.
Table 1: Compliance interventions Initiated and closed by LC-HWID and yield*
|
Year |
Initiated |
Closed |
Yield |
|
2021 |
319 |
416 |
€58.2m |
|
2020 |
286 |
334 |
€55.5m |
|
2019 |
356 |
332 |
€65.7m |
* Yield includes tax, interest, penalties and also the tax value of losses restricted.
278. Deputy Pearse Doherty asked the Minister for Finance the estimated number of properties that will fall under the scope of the vacant homes tax in 2023; the average tax in nominal and percentage terms that will be payable with respect to those properties in 2023; the planned means to assess compliance with the tax; and if he will make a statement on the matter. [51364/22]
Amharc ar fhreagraAs the Deputy is aware, the Vacant Homes Tax (VHT) is a new measure announced on Budget Day, which aims to increase the supply of homes for rent or purchase to meet demand. Further detail on this measure will be made available on the publication of the Finance Bill later this week.
The introduction of this tax follows from my Department's commitment under Housing for All to collect data on vacancy with a view to introducing a vacant property tax. The Finance (Local Property Tax) (Amendment) Act 2021 facilitated the collection on data on vacant property through LPT returns.
A preliminary analysis of the vacancy data was published by Revenue in July this year, following the LPT revaluation in November 2021, and can be found at: www.revenue.ie/en/corporate/documents/statistics/lpt/lpt-vacant-properties-report.pdf.
In arriving at the estimates for the Budget documentation, certain assumptions were made based on the Revenue data and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It is tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.
The preliminary analysis published by Revenue also gives the distribution of vacant properties by valuation band which suggests the distribution is broadly similar to that of properties that are liable for LPT and is likely to be reflected in the average amount of the tax paid. That said, the VHT payable will depend on the self-assessed returns submitted by property owners, the number of properties declared as liable and the number of property owners entitled to claim exemption from the tax.
It is intended that the legislation providing for the VHT will include a number of provisions designed to encourage compliance with the VHT and identify non-compliance. As outlined, the details will be published shortly in the Finance Bill.
As stated in my Budget speech, this measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties that will be subject to this tax and the eventual yield may be lower than the estimates provided.
279. Deputy Martin Browne asked the Minister for Finance if his attention has been drawn to a number of Revenue Commissioners staff working in County Tipperary who have been informed that they were wrongly paid a franking allowance for an extended period of time (details supplied); and if he will make a statement on the matter. [51447/22]
Amharc ar fhreagraI am informed by Revenue that there are seven members of staff nationally who have been notified of overpayments of salary due to the granting of a Franking Allowance where the allowance was not due. Revenue has informed each member of staff concerned of the overpayment of salary arising and apologised for the error.
Revenue is aware of the concerns that this matter has caused to the individual staff members and has briefed the Civil Service Employee Assistance Service (CSEAS) to ensure they will be in a position to advise and assist the staff members as required. The staff members were each provided with the CSEAS contact details in addition to the details for a direct point of contact on the Revenue pay team.
In addition, Revenue has engaged with the union representing the staff members and has agreed to postpone collection of the salary overpayments pending a formal submission by the union on behalf of the staff. Revenue has advised each of the staff members that the union submission is expected and that collection of the overpayments has been postponed until the submission is received and reviewed.
280. Deputy Peadar Tóibín asked the Minister for Finance if he will assist those whose mortgages have been sold by their banks to vulture funds in accessing fixed rates from the new owners of these mortgages (details supplied). [51462/22]
Amharc ar fhreagraDecisions in relation to mortgage lending and the management of existing loans, including the particular type of mortgage product offered to existing or new borrowers, are commercial matters for individual mortgage creditors. Neither I nor the Central Bank have a role in setting the rates that mortgage creditors charge on their loans or in relation to the particular mortgage products that they provide to borrowers.
In relation to the regulatory aspects of the provision and operation of mortgage contracts, the Central Bank has put in place a range of measures in order to protect consumers who are taking out a mortgage under its Consumer Protection Framework and which seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle, for example, through protections at a time when borrowers may find themselves in financial difficulties. The requirements put in place by the Central Bank complement the European legislative framework, including the European Union (Consumer Mortgage Credit Agreements) Regulations 2016.
Where a loan is sold or transferred to another regulated entity, the regulatory protections that were available to borrowers prior to the transaction continue to be in place with the new owner. It is worth noting that under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 if a loan is transferred or sold, the holder of the legal title to the credit must be regulated and must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers whose loans are sold or transferred maintain the same regulatory protections that they had, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013.
The Central Bank has also stated that it expects all regulated entities to take a consumer-focused approach in respect of any decision that affects their customers (existing and new) and communicate clearly, effectively, and in a timely manner with all customers.
281. Deputy Bríd Smith asked the Minister for Finance if his attention has been drawn to the €1,000 cost-of-living payment being made by two banks (details supplied) to their staff; if he will make inquiries as to the reason that staff of other banks are not being included in such a payment scheme; if he will encourage these financial institutions to follow suit; and if he will make a statement on the matter. [51464/22]
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.
Under the current bank remuneration policy, variable payments to employees of three banks in the State require the consent of the Minister for Finance. Both AIB and Bank of Ireland availed of the Small Benefit Exemption which was announced in Budget 2023 having first sought my consent on the matter.
The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC. I increased the annual limit provided for in the exemption from €500 to €1,000.
As already mentioned, these are commercial decisions for the board and management of the banks and any future decision by the other banks in the State to avail of the Small Benefit Exemption will be a matter for those individual banks.
282. Deputy Michael Fitzmaurice asked the Minister for Finance the percentage of each of the different costs which make up the price the consumer pays for petrol, diesel and agricultural diesel at the pumps; and if he will make a statement on the matter. [51506/22]
Amharc ar fhreagraThe price of fuel is determined by a number of factors such as global market dynamics, costs of labour, exchange rates, taxation as well as wholesale and retail pricing policy practices which may include additional pricing to cover transport and distribution costs.
Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended) and this Act provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. It is important to note that both components of MOT are excise.
In accordance with the Value-Added Tax Consolidation Act, 2010, VAT is chargeable on petrol and auto-diesel at the standard rate, currently 23%, on the total amount which the supplier is entitled to receive including taxes, duties, levies and charges but excluding the VAT itself. A levy is also charged on petrol and diesel to cover the costs related to maintaining security of oil supplies. While both MOT and VAT are administered by Revenue the levy is administered by, and paid directly to, the National Oil Reserves Agency (NORA). At Budget 2023, I announced a reduction in the NORA to help offset increases in MOT carbon component rates, which came into effect on October 12th. The NORA levy currently remains at 2c/litre but its reduction to 0.01c/litre will be backdated to 12th October. The reduction does not impact directly on MOT rates, rather its offsetting effect will be on the pump price of relevant fuels. My colleague Eamonn Ryan, Minister for the Environment, Climate and Communications, is working with his Department and NORA to implement changes to the NORA levy.
The current MOT rates applying to petrol and auto-diesel are €483.34 and €425.45 per 1,000 litres respectively. Diesel used for certain purposes, for example in agricultural machinery, may qualify for a reduced rate of MOT. Such diesel must be marked with prescribed fiscal markers and is referred to as Marked Gas Oil (MGO), green diesel or farm/agricultural diesel. A reduced VAT rate, currently 13.5% applies to MGO. The reduced rate of MOT that applies to MGO is currently €111.14 per 1,000 litres. Current MOT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/budget-excise-duty-rates.pdf.
The following table provides a breakdown of the taxes and levies applying to petrol, auto-diesel and MGO. Average retail prices are as per the EC Weekly Oil Bulletin of 13 October 2022 which uses prices based sourced on 10 October 2022 (prior to the carbon tax increase on 12th October 2022).
|
- |
Petrol |
% of retail price |
Auto-diesel |
% of retail price |
MGO |
% of retail price |
|
€/litre |
€/litre |
€/litre |
||||
|
Pre tax |
€0.94 |
54% |
€1.09 |
58% |
€1.04 |
78% |
|
Nora levy |
€0.02 |
1% |
€0.02 |
1% |
€0.02 |
2% |
|
MOT non-carbon |
€0.37 |
21% |
€0.30 |
16% |
€0.00 |
0% |
|
MOT carbon |
€0.09 |
5% |
€0.11 |
6% |
€0.11 |
8% |
|
Total MOT |
€0.47 |
27% |
€0.41 |
22% |
€0.11 |
8% |
|
VAT |
€0.33 |
19% |
€0.35 |
19% |
€0.16 |
12% |
|
Total Tax & NORA levy |
€0.81 |
46% |
€0.78 |
42% |
€0.29 |
22% |
|
Retail Price |
€1.75 |
€1.87 |
€1.33 |
*Rounding applies eg. MOT carbon on Petrol is €0.09487 but reads as €0.09 for ease of display.
283. Deputy Brendan Griffin asked the Minister for Finance if he will provide clarification on a matter (details supplied); and if he will make a statement on the matter. [51535/22]
Amharc ar fhreagraRevenue informs me that there are a number of factors that influence the cost of importing a vehicle from Northern Ireland including the value of the vehicle and its emissions.
There are three areas which need to be considered as costs of importing a vehicle into the State from Northern Ireland. These are Vehicle Registration Tax (VRT), Value-Added Tax (VAT) and Customs Duty.
1. VRT
For the purposes of this reply, we will assume the Deputy’s question is in relation to Category A vehicles, the VRT category into which cars for everyday family use normally fall into. The origin of the car has no implication whatsoever for VRT calculations.
I am informed by Revenue that the VRT calculation on passenger vehicles is based on the Open Market Selling Price (OMSP) of the vehicle and its emissions levels.
In the case of a second-hand imported passenger vehicle, the OMSP is the price, inclusive of all taxes and duties, for which, in the opinion of the Revenue Commissioners, the vehicle might reasonably be expected to sell in an arm’s length sale in the State by a retailer.
The amount of VRT on a passenger vehicle has two components, based on the vehicle’s carbon dioxide (CO2), and nitrogen oxides (NOx) emission levels. The CO2 component of the VRT charge is a percentage of the vehicle’s OMSP, ranging from 7% for a vehicle which has zero CO2 emissions, up to 41% of the OMSP for vehicles with the highest emission levels. The NOx component of VRT is calculated using a progressive scale, starting from €5 and rising to €25 per mg/km of the vehicle’s NOx emissions level. As a result of these calculations, the total VRT charge grows higher according to the emissions output of the vehicle involved and its market value.
2. VAT
A vehicle may be subject to VAT. Vehicles first registered in Great Britain (GB), and subsequently registered in NI after 31 December 2020, will be subject to VAT at a rate of 23% of the customs value of the vehicle (the cost price plus the costs of transport and insurance) before it may be registered in the State. If it can be shown that a vehicle has remained in Northern Ireland since first registration, or was in Northern Ireland prior to 31 December 2020, VAT will not apply as Northern Ireland remains within the European Union’s (EU) VAT regime.
3. Customs Duty
Cars purchased from Northern Ireland are not normally subject to customs formalities including declarations or payment of customs duty. However, proof will be required to be provided to Revenue to show that the vehicle was brought into Northern Ireland prior to 1 January 2021, or, in the case of vehicles imported to Northern Ireland after 1 January 2021, proof that the customs formalities were completed in Northern Ireland.
A vehicle first registered in NI after 1 January 2021 can be registered in the State without providing proof of its customs status where it meets the following conditions:
- the registration in NI was the first registration of the vehicle in the United Kingdom (UK)
and
- the vehicle has never been exported and, or re-registered in, Great Britain or any other country outside the European Union.
Additional information can be found on the Revenue website at the following link: revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/registration-of-imported-used-vehicles/index.aspx.
284. Deputy Sean Sherlock asked the Minister for Finance if he has been notified of the withdrawal by a bank (details supplied) of its digital payments service from Ireland; and if he will make a statement on the matter. [51592/22]
Amharc ar fhreagraIt should be noted that the Minister for Finance has no direct function in the operations of commercial banks.
The company in question announced in February 2022 that they would serve their Irish customers using their European banking license, authorised in Lithuania, going forward.
The company is now passport banking services, such as a current account and range of credit products, to Irish customers using its authorisation as a Lithuanian bank.
285. Deputy Pearse Doherty asked the Minister for Finance if he has engaged with mortgage lenders with respect to forbearance measures and solutions put in place for mortgage holders where their mortgage loan is with respect to and secured against a property affected by defective concrete blocks; if he has a view with regard to the need for a coordinated approach among lenders with respect to such mortgage holders; and if he will make a statement on the matter. [51628/22]
Amharc ar fhreagraI understand the difficult situation faced by homeowners whose houses are affected by defective concrete blocks.
In terms of forbearance for such households that have a mortgage, as the Deputy is aware the Central Bank is responsible for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements. Through its consumer protection role, the Central Bank sets out requirements in its codes of conduct which detail how regulated firms such as banks should deal with and treat their customers.
In particular, the Code of Conduct on Mortgage Arrears 2013 (CCMA) places a requirement on regulated entities to have fair and transparent processes in place to deal with borrowers in, or facing, mortgage arrears and it sets out the process that entities must follow when a borrower is experiencing repayment difficulty. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.
Entities must explore all of the options for alternative repayment arrangements (ARAs) offered in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating.
The Central Bank does not have remit over commercial decisions of the entities it regulates. The nature of lender forbearance measures can vary and remain a decision for the individual institution, based on the individual circumstances of borrowers. However, the Central Bank has stated that it encourages borrowers to engage as early as possible with their lenders and to provide the information required to enable an assessment of the individual circumstances commence.
286. Deputy Peadar Tóibín asked the Minister for Finance if his attention has been drawn to the fact that there are no TARIC codes, or appropriate codes for ancient coins, and that collectors and dealers are having problems getting them shipped to Ireland from the United Kingdom (details supplied); and if he will see if the matter can be addressed. [51629/22]
Amharc ar fhreagraI am advised by Revenue that they use a standardized system of classification of goods, which is also used by all Customs administrations within the EU to classify goods which are imported into the EU from any non-EU country, including the UK or exported from the EU. The TARIC database is based on the World Customs Organization (WCO) Harmonized System and is maintained by the European Commission and is updated daily.
I am advised by Revenue that there are TARIC codes for ‘Ancient coins’ , which apply where they meet the criteria set out in the Harmonized System Explanatory Notes including the condition that they are no longer legal tender. In this regard, the classification of “Ancient coins” is set out in the table below.
|
TARIC Code |
Description |
Rate of Customs Duty |
|
9705 31 00 00 |
Collections and collectors’ pieces of numismatic interest - Of an age exceeding 100 years |
0% |
|
9705 39 00 00 |
Collections and collectors’ pieces of numismatic interest - Other |
0% |
Further information on the classification of ‘Ancient coins’ is available from Revenue at tarclass@revenue.ie
287. Deputy Peadar Tóibín asked the Minister for Finance if his attention has been drawn to the fact that many people are being charged VAT on the import of books from England after Brexit as it would seem An Post do not recognise the TARIC code and are charging the customs on the parcels; and if he will examine the matter and find a resolution for this issue. [51665/22]
Amharc ar fhreagraThe zero-rate of VAT applies to printed books where they meet specific requirements. If the books meet these requirements, the appropriate commodity code for the 0% rate must be included when completing the Customs import declaration to ensure that this rate of VAT is used when the tax and duty is being calculated.
In instances where an incorrect commodity code is included in the Customs declaration, the customer should contact the company who completed the Customs declaration and imported the goods on their behalf i.e. in the instance quoted by the Deputy, An Post, and request that the relevant import declaration is amended to include the correct commodity code for the 0% rate. When the declaration is amended, any resulting refund of VAT will be repaid to the company i.e. An Post, who can then refund the customer.
Conditions for % VAT rate for books are set out on the Revenue website at;
www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-printed-matter.pdf.
See extract below;
"In order for a printed book or booklet to qualify for the zero rate, it must meet the following four requirements:
1. it must consist essentially of textual or pictorial matter
2. it must have a distinctive front cover which is devoid of body text
3. it must comprise not less than four leaves (eight pages) exclusive of the cover, and
4. it must be bound (loose-leaf or otherwise), or stitched or stapled."
288. Deputy Pearse Doherty asked the Minister for Finance the recent assessment or analysis his Department has made in the trends and levels of incidence of push payment fraud; and if he will make a statement on the matter. [51675/22]
Amharc ar fhreagraUnder the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, anti-money laundering rules require all instances of fraud and/or suspicious transactions to be reported by financial institutions to the Financial Intelligence Unit, which is part of An Garda Síochána and under the remit of the Department of Justice.
The reduction of payment fraud has been an important area of work of my Department in recent years. The revised Payment Services Directive (PSD2) introduced strong security requirements for the initiation and processing of electronic payments, which apply to all payment service providers. This approach is intended to reduce the risk of fraud for all types of electronic payments (especially online payments) and to protect the confidentiality of the user’s financial data.
Under PSD2 payment service providers are obliged to apply strong customer authentication (SCA) when a payer initiates an electronic payment transaction. SCA requires the customer to go through two-factor authentication made up of elements from two of three separate categories: knowledge, possession, and inherence. SCA is a combination of something you know (a password or PIN), something you have (a card reader or token generator) and something you are (a fingerprint).
The European Commission are currently undertaking a review of PSD2, which is expected to cover a wide variety of areas related to the Directive. Officials from my Department have been engaging with the Commission’s review on areas of Irish interest, including strong customer authentication. It is likely that when the review is complete the Commission will bring forward a proposal for a new Directive (PSD3) early in the new year.
293. Deputy Brendan Griffin asked the Minister for Finance if he will address a matter (details supplied) regarding the capital allowance depreciation; and if he will make a statement on the matter. [51740/22]
Amharc ar fhreagraOn Budget Day I announced my proposal for accelerated capital allowances for the construction of slurry storage facilities. The proposed measure would allow for 50% of eligible expenditure to be claimed over two years rather than the current eight.
The Government intends to legislate for this measure in the forthcoming Finance Bill. The points made in the details supplied with the Deputy's question have been noted.
