Written Answers Nos. 185-201
185. Deputy Darren O'Rourke asked the Minister for Transport the budget allocation for the low-emissions vehicle toll incentive for 2022; the number of persons who are signed up to the scheme; the spend to date in 2022; and if he will make a statement on the matter. [56569/22]
Amharc ar fhreagraProviding a sustainable, low-carbon transport system is a key priority of my Department.
The Low Emission Vehicle Toll Incentive (LEVTI) Scheme which offers toll discounts for alternatively fuelled vehicles was introduced in July 2018 and has continued each year since inception. BEV and PHEVs currently qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles (greater off-peak rates also apply to the M50 toll). The Scheme was expanded in 2020 to include toll reductions for electric motorbikes, hydrogen fuelled passenger cars and SPSVs, and heavy duty vehicles (trucks, buses and coaches) fuelled by compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen or electricity.
As of September 2022, there are 29,627 vehicles registered with the scheme. €1.5m was allocated to this scheme this year with an additional allocation of €800k due to demand. To date, over €1.7m has been spent on this scheme in 2022.
186. Deputy Catherine Connolly asked the Minister for Transport if he will provide an update regarding the large convoy of propelled aeroplanes and helicopters that flew across north County Dublin at approximately 4 a.m. on the morning of 30 October 2022, with particular reference to whether this was a military convoy; if permissions had been sought or granted for its activity; and if he will make a statement on the matter. [56586/22]
Amharc ar fhreagraI have been informed by the Irish Aviation Authority that the traffic situation referenced involved the Garda helicopter being tasked to an operation in North Dublin and this coincided with the arrival of transatlantic flights to Dublin Airport. The helicopter was integrated with these arrivals in order to get to the operational area as expeditiously as possible. No military aircraft were involved.
A flow of transatlantic flights normally occur around this time of night and the Garda helicopter can occasionally be tasked to various parts of Dublin and surrounding areas. There are no restrictions to Garda helicopter operations.
187. Deputy Johnny Mythen asked the Minister for Transport if an application for Rosslare Port to become a renewable energy hub was resubmitted for central European Union funding in September 2022; and if he will make a statement on the matter. [56600/22]
Amharc ar fhreagraThe current Connecting Europe Facility (CEF) transport call opened on 13 September 2022 with the closing date for applications on 18 January 2023. This is a competitive process and, in line with guidance from the European Commission, it would be inappropriate for me to comment on individual companies' applications.
188. Deputy Sean Sherlock asked the Minister for Transport the number of incidents that have taken place on the Dunkettle roundabout and approach roads around the Jack Lynch Tunnel north and south in 2021 and to date in 2022. [56657/22]
Amharc ar fhreagraAs Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and maintenance of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
189. Deputy Róisín Shortall asked the Minister for Transport if he has met with Irish Rail officials to discuss progress on the Broadmeadow Way Donabate to Malahide greenway project; if so, the number of times that he has done so since assuming office; if he will outline the matters discussed; and if he will make a statement on the matter. [56714/22]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for the policy and overall funding in relation to Active Travel. Funding is allocated to local authorities through the National Transport Authority (NTA) for projects supporting walking and cycling around the country, including the Donabate to Malahide Greenway. The NTA works with the local authorities to allocate funding for these specific projects and oversees their development and construction.
To date I have not held any meetings with Irish Rail officials in relation to this project. Noting the NTA's role in the matter, I have referred your question to that agency for an up-to-date, detailed reply on the matter. Please advise my private office if you do not receive a reply within 10 working days.
190. Deputy Violet-Anne Wynne asked the Minister for Transport if there are plans to have a direct Bus Éireann PSO route from Dublin to Clare in both directions via Offaly; and if he will make a statement on the matter. [56718/22]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling of these services in conjunction with the relevant transport operators.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to plans to have a direct Bus Éireann PSO route from Dublin to Clare in both directions via Offaly, to the NTA for direct reply. Please advise my private office if you do not receive a response. within ten working days
191. Deputy Jim O'Callaghan asked the Minister for Finance if biofuels are regarded as fossil fuels for the purpose of carbon tax; and if he will make a statement on the matter. [56612/22]
Amharc ar fhreagra192. Deputy Fergus O'Dowd asked the Minister for Finance if a response will issue to matters raised by a company (details supplied) in respect of the taxation of biofuels; and if he will make a statement on the matter. [56630/22]
Amharc ar fhreagra196. Deputy Colm Burke asked the Minister for Finance if he will confirm that biofuels will not be subject to carbon tax or excise duty if they are used for heating; and if he will make a statement on the matter. [56157/22]
Amharc ar fhreagra207. Deputy Catherine Murphy asked the Minister for Finance if he will clarify his taxation policy for biofuels; and if biofuel value added tax and levies will be amended. [56437/22]
Amharc ar fhreagra209. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the proactive and immediate steps that his Department is taking to address the excessive duty on hydrotreated vegetable oil; if biofuels that are used for heating will not be subject to carbon tax or excise duty (details supplied); and if he will make a statement on the matter. [56527/22]
Amharc ar fhreagra213. Deputy Marian Harkin asked the Minister for Finance the plans that he has explored in order to introduce a new taxation policy on biofuels; if carbon tax will be applied to biofuels; and if he will make a statement on the matter. [56635/22]
Amharc ar fhreagra214. Deputy Éamon Ó Cuív asked the Minister for Finance the present carbon tax and excise duty charged on biofuels used for home heating; if he intends eliminating the carbon tax and excise duty on these biofuels when used as a substitute for diesel or kerosene as home heating oil in order to encourage a reduction in Ireland's carbon emissions; and if he will make a statement on the matter. [56652/22]
Amharc ar fhreagraI propose to take Questions Nos. 191, 192, 196, 207, 209, 213 and 214 together.
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. There are three national legislative frameworks which provide for the charging of excise duty on different fuel types in the State. Firstly, ETD provisions in relation to liquid fuels used for motor or heating purposes are transposed into national law in Finance Act 1999. This law provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels. It also provides for the application of MOT to natural gas used for propellant purposes, referred to as Mineral Oil Tax on Vehicle Gas (MOTVG). Secondly, Natural Gas Carbon Tax (NGCT) law, as set out in Finance Act 2010, provides for the taxation of natural gas used for non-propellant purposes. Finally, regarding solid fuel, the ETD mandates that coal be subject to taxation. Finance Act 2010 provides for Solid Fuel Carbon Tax (SFCT) to apply to coal and also to peat and peat products.
MOT is comprised of a non-carbon component and a carbon component with the carbon component being commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty” but it is important to note that both components are part of MOT which is an excise duty. NGCT and SFCT are also excise duties, but they are “pure” carbon taxes in that they do not comprise any non-carbon component. Carbon tax rates are based on charging an amount per tonne of carbon dioxide emitted on combustion of the fuel concerned. Fuels with higher carbon dioxide emissions attract higher rates of carbon tax than fuels with relatively lower emissions. Currently carbon tax rates for propellant fuels, such as petrol and auto-diesel, are based on charging €48.50 per tonne of carbon dioxide emitted. The carbon dioxide emissions basis for non-propellant fuels, including those used for heating purposes, is currently €41.50 per tonne. MOT, NGCT and SFCT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf
Some of the Deputies who have raised questions have indicated that a fuel used for heating purposes is being taxed as a road fuel. This is not the case. The ETD allows for the application of reduced levels of taxation to fuels used for non-propellant purposes. Under MOT law reduced rates of tax apply to certain fuel uses, such as heating. These reduced rates are significantly less that the standard rates that apply to propellant uses. For example, auto-diesel is currently subject to the standard MOT rate of €425.45 per 1,000 litres whereas diesel used for non-propellant purposes, including heating, attracts the reduced rate of €111.14 per 1,000 litres.
Under MOT law a liquid, other than a specified mineral oil, that is used for motor or heating purposes is regarded as a substitute fuel. Where a substitute fuel is used in place of a propellant fuel, it is subject to MOT at the MOT rate that applies to the fuel it is used in place of. For example, a substitute fuel used in place of auto-diesel in a motor vehicle would be taxed at the MOT rate for auto-diesel. A substitute fuel used for non-propellant purposes such as heating is chargeable, under section 96(2A)(c) of Finance Act 1999, at the MOT rate that applies to Marked Gas Oil (MGO), currently €111.14 per 1,000 litres.
In addition to the reduced rate of MOT applicable to non-propellant uses, a relief from the carbon component of MOT is available, under section 100(5) of Finance Act 1999, for all uses of liquid biofuels. Section 100(5A) provides for a similar relief for biogas used as a propellant. Biofuels and biogas are defined in MOT law as substitute fuels made from biomass, with biomass being defined as the biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste. Sections 100(5) and 100(5A) of Finance Act 1999 provide for a MOT carbon component, i.e. carbon tax, relief for biofuels. This means that a biofuel, such as Hydrogenated/Hydrotreated Vegetable Oil (HVO), produced entirely from biomass, is liable for the non-carbon component of MOT only. As already outlined, a substitute fuel used for heating purposes attracts the MGO rate of €111.14 per 1,000 litres. This rate is entirely comprised of carbon tax. Therefore, if the substitute fuel is a biofuel that qualifies for relief, the MOT is fully relieved, i.e. no MOT applies. With regard to blended fuels produced partially from biomass, the relief applies to the portion of fuel that meets the biofuel criteria set out in MOT legislation.
The MOT carbon tax relief for biofuels is intended to promote a higher level of biofuel usage for motor and heating purposes and supports Government’s commitment to incentivising more environmentally friendly alternatives to fossil fuels. As the carbon component of MOT is fully relieved for biofuels, these types of fuels are not impacted by the ten-year trajectory of carbon tax increases which was introduced in Finance Act 2020. This means that, as annual increases in the carbon component of MOT are implemented, the differential in tax costs between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels.
As already mentioned, biogas used for propellant purposes qualifies for relief from the MOT carbon component. Natural gas used for non-propellant purposes is subject to NGCT at a rate of €7.41 per megawatt hour at gross calorific value. Biogas falls outside the scope of NGCT meaning that where it is used for non-propellant purposes it is not subject to fuel taxation.
With regard to SFCT, a partial relief is available for biomass products. For the purposes of SFCT, biomass products are defined as any solid fuel product with a biomass content of 30 per cent or more. The rate of SFCT relief depends on the biomass proportion of the product and full details are published on the Revenue website at www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/solid-fuel-carbon-tax/rate-of-tax.aspx
As this explanation shows, all three of the State’s legal frameworks providing for the taxation of fuels, as governed by the ETD, relieve or exclude fuels produced from biomass from carbon tax. This reflects a clear policy intention that the use of such fuels be incentivised. In particular, liquid biofuels, such as HVO, that are used for heating purposes qualify for carbon tax relief which means that the effective rate of MOT applicable is currently zero. In order to understand and address any potential misinformation circulating about this matter Revenue was recently in touch with the oils industry and is currently preparing some further clarificatory information on biofuels and MOT to be published on its website in the coming days. I am further advised that Revenue’s “Mineral Oil Tax Warehouse Return User Guide” provides details for the industry on how biofuels blended with other fuels are to be accounted for. This guide is published at www.revenue.ie/en/companies-and-charities/documents/excise/energy-taxes/mineral-oil-tax-warehouse-return-user-guide.pdf
With regard to VAT, the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. Biofuel, petrol including bio-ethanol petrol blends and auto-diesel are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, currently 23%. Non-food vegetable oils, such as HVO, used to fuel vehicles also attract the standard rate of VAT. HVO used as heating fuel is liable for the reduced VAT rate of 13.5%.
A levy is applied on biofuels placed on the market within the State. The rate of the biofuels levy is currently 0.1 cent per litre (a tenth of a cent) and is collected by the National Oil Reserves Agency (NORA). The rate was reduced from 2 cent per litre, by way of the NORA (Amendment) and Provision of Central Treasury Services Act 2020.
The rate of the biofuel levy was reduced to incentivise the use of biofuels, by helping to bridge any cost differentials between biofuels and fossil fuels, where they exist. The levy proceeds continue to make a contribution towards the running costs of National Oil Reserves Agency – in particular the administration of the Renewable Transport Fuels Obligation Scheme.
193. Deputy Neasa Hourigan asked the Minister for Finance the reason that the reduction on VAT on newspapers from 9% to zero was not extended to periodicals; and if he will make a statement on the matter. [56114/22]
Amharc ar fhreagra194. Deputy Steven Matthews asked the Minister for Finance if a 0% VAT rate has been considered for Irish published magazines, similar to what is proposed for newspapers as of January 2023; and if he will make a statement on the matter. [56119/22]
Amharc ar fhreagraI propose to take Questions Nos. 193 and 194 together.
Given the critical role that newspapers play in our society at both local and national level, and the very challenging environment they have to operate in, I made the decision that the VAT rate on newspapers and electronically supplied newspapers be reduced from 9% to zero from 1 January 2023.
This measure has an estimated annual cost of €33m. The rate reduction is in line with the Government’s commitment to support an independent press and the Future of Media Commission’s recommendation on this matter.
Magazines and other publications such as news periodicals are not covered by this zero-rating. Therefore the second reduced rate of VAT of 9% will continue to apply to such periodicals.
Any move to zero-rate for periodicals would require the legislation to cover all periodicals in line with the principle of fiscal neutrality. This would mean that weekly magazines and sectoral publications covering sport, entertainment, fashion, health, etc. that are published regularly or occasionally would come within the scope of the zero rate of VAT.
The inclusion of periodicals because of its broad nature would increase the estimated cost of this measure by approximately €15m.
195. Deputy Richard Bruton asked the Minister for Finance the value of the moneys raised from private pension funds in each of the years during which the emergency pension levy applied; the estimated number of fund members who were affected by the levy; the way that the pension payments to members were affected; if these funds have recovered any of the sums contributed with the recovery of the economy; and if he will make a statement on the matter. [56147/22]
Amharc ar fhreagraI am advised by Revenue that an annual levy was charged on pension schemes from 2011 to 2015 in accordance with section 125B of the Stamp Duties Consolidation Act 1999. The levy was introduced in the wake of the financial crash, at a time when the economy was in very serious difficulties. It was charged on the market value of assets in pension schemes held on 30 June in each year, at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015). Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets. It was discontinued from 2016.
The annual yield for each year that the levy applied is as follows.
|
Year |
Yield (million) |
|
2011 |
€463.23 |
|
2012 |
€482.88 |
|
2013 |
€535.31 |
|
2014 |
€742.88 |
|
2015 |
€169.31 |
|
Total |
€2,393.61 |
Section 125B provided that the person who was liable to pay the levy on behalf of the pension scheme, referred to as the “chargeable person”, was entitled to dispose of, or use, scheme assets for the purposes of discharging the amount of the levy payable. However, Revenue does not have any data on the number of fund members who were affected by the levy or the way that the pension payments to members were affected.
In relation to the Deputy’s question as to whether the pension funds concerned have recovered any of the sums contributed with the recovery of the economy, it was never the intention that any levy payments would be repaid when the economy recovered, as is the case with any other tax or duty that was paid in the wake of the financial crisis.
It should be noted that Revenue continues to receive small amounts of levy in relation to the years where the levy applied. From 2016 to 2021 approximately €800,000 was received.
197. Deputy Richard Bruton asked the Minister for Finance if he has requested the Revenue Commissioners to review the present tax reliefs for remote working with a view to making the relief less cumbersome to operate; the estimated number of persons who have made a claim under this provision in the most recent year for which data is available; the way in which the tax code might better promote such practices into the future; and if he will make a statement on the matter. [56169/22]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government includes a commitment to facilitate and support remote working. The National Remote Work Strategy aims to make remote work a permanent feature of the Irish working experience in a way that maximises the economic, social and environmental benefits.
As part of the national remote working strategy: Making Remote Work, the Tax Strategy Group (TSG) in 2021 reviewed the tax arrangements for remote working in respect of both employees and employers. The TSG paper outlines the effects of Covid-19 on remote working in Ireland, provides an international comparison of remote working tax rules, sets out options for consideration with regard to enhancing the tax arrangements for both employers and employees in respect of remote work and evaluates those options in accordance with the Department of Finance Tax Expenditure Guidelines. The paper is published on the gov.ie website.
There are a number of administrative and legislative provisions under which employees can avail of tax relief in respect of working from home.
Remote workers may incur certain expenditure in the performance of their duties from home, such as additional heating, electricity and broadband expenditure. Revenue operates an administrative practice which allows an employer to make payments up to €3.20 per day to employees who are working from home, subject to certain conditions, without deducting PAYE, PRSI or USC. There is no legal obligation on the employer to make such payment and the payment is at the discretion of the employer. There is no data on the number of employers or employees availing of this provision as there is currently no reporting requirements to Revenue in respect of same.
Furthermore, as the Deputy will be aware, in the 2021 Finance Act, I enhanced and established, on a statutory footing, a tax relief measure for individual remote workers which was previously operated by Revenue on an administrative basis. The new section (contained in section 114A Taxes Consolidated Act 1997) allows remote working individuals, in respect of 2022 and subsequent years of assessment, to claim 30% of electricity, heat and broadband costs, apportioned on the basis of the number of days worked from his or her home during the year. A legislative requirement for the tax relief provided for by section 114A TCA 1997 is that receipts must be submitted with the claim (i.e. the utility bills must be electronically uploaded).
As the Deputy will appreciate, individuals are, generally speaking, well accustomed to supplying receipts to vouch expenditure in order to claim refunds of monies in other areas. For example, claiming refunds of medical expenses from health insurers are typically done on this basis. A similar model operates for tax refund claims in respect of remote working expenses and, I am advised that, Revenue has sought to make the submission of such claims as easy as possible for taxpayers.
Employees can make a claim for remote working relief in one of two ways:
1. End of year claim - Where a taxpayer claims remote working expenses by completing an Income Tax return at year end, he or she can upload supporting documentation via the Revenue Receipts Tracker. He or she can opt to save the information to Revenue storage where it will prefill his or her tax return to assist in the completion and filing of the return. Valid receipts saved to Revenue storage do not need to be retained by the taxpayer for 6 years.
2. Real-time claim - by using the My Account facility. Revenue advises that the simplest way for taxpayers to claim their remote working expenses and any other tax credit entitlements is by logging into the MyAccount facility on the Revenue website. Revenue has provided a real-time facility available to claim remote working relief for 2022 when the expense is incurred. To avail of the credit in real-time the taxpayer is required to upload the receipt details and a readable image of his or her receipt(s) to the Receipts Tracker in MyAccount at the time of making the claim.
The number of PAYE individuals who have claimed remote working relief to date in respect of 2021 is over 81,800. Regarding self-assessed taxpayers, 2020 is the year for which the latest information is available and approximately 23,300 taxpayer units have made claims for remote working relief on the income tax return form (Form 11) for that year. It should be noted that as taxpayers have 4 years in which to make a claim for the relief, these figures will increase further.
Regarding the 2022 tax year, from available information, around 3,000 PAYE individuals have made real-time claims for remote working relief to date. This figure is also likely to increase between now and the end of the year. However, it is expected that most claims for the relief for 2022 will be made after the end of the year.
It should be noted that Revenue has published detailed guidance on this matter on their website, with comprehensive information available in Tax and Duty Manual 05-02-13 Remote Working Relief together with a short video. The manual is available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf
Furthermore, guidance on how to register for My Account is available at: www.revenue.ie/en/online-services/services/register-for-an-online-service/register-for-myaccount.aspx
Overall, I am satisfied with the arrangements in place currently in relation to tax relief for expenses associated with remote working but, in keeping with my Department's Tax Expenditure guidelines, the matter will be kept under review.
198. Deputy Catherine Murphy asked the Minister for Finance the way in which local authority members may access the bike-to-work scheme in their capacity of elected representatives at local government level; and if he has engaged with the Minister for Housing, Local Government and Heritage in respect of their eligibility for the scheme. [56185/22]
Amharc ar fhreagraThe Deputy’s question relates to the applicability of the ‘Cycle to Work’ scheme to elected representatives at local government level.
Cycle to Work Scheme
Section 118(5G) of the Taxes Consolidation Act (TCA) 1997 provides for the ‘Cycle to Work’ scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a new bicycle and associated safety equipment for an employee or director up to certain limits, and subject to certain conditions being satisfied. Revenue have confirmed that reference to the term employee for the purpose of this scheme includes the holder of an office.
Currently, those limits are €1,250 for a bicycle and €1,500 for electric bicycles. The scheme does not apply to motorbikes, scooters or mopeds and safety equipment does not include child seats or trailers.
Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment, when certain conditions are met:
1. The bicycle must meet the definition of a ‘pedal cycle’ which means:
- A bicycle or tricycle which is intended or adapted for propulsion solely by the physical exertions of a person or persons seated thereon, or
- A pedelec, being a bicycle or tricycle which is equipped with an auxiliary electric motor having a maximum continuous rated power of 0.25 kilo-watts, of which output is progressively reduced and finally cut off as the bicycle reaches a speed of 25 kilometres per hour, or sooner if the cyclist stops pedaling.
2. The bicycle and related safety equipment must be new and must be purchased by the employer.
3. The bicycle and related safety equipment must be used by the employee or director mainly for the whole or part of their journey to or from work.
4. An employee or director can only avail of the ‘Cycle to Work’ scheme once in any 4-year period, commencing with the date the employee or director is first provided with a bicycle or bicycle safety equipment.
Finance Bill 2022 amendments
I am amending the ‘Cycle to Work’ scheme in the Finance Bill this year to increase the limit on the provision by the employer of a cargo bicycle or e-cargo bicycle and related safety equipment.
The limits that will apply after this change will be as follows:
- The first €1,250 in respect of bicycles and related safety equipment.
- The first €1,500 in respect of electric bicycles and related safety equipment.
- The first €3,000 in respect of cargo bicycles and electric cargo bicycles and related safety equipment.
The Finance Bill 2022 changes, once passed by the Oireachtas, will take effect from 1 January 2023.
Eligibility to the scheme
The cycle to work scheme operates on a self-administered basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation.
When determining whether the scheme is available to an individual, Revenue advises that all employers, including Local Authorities in their capacity as employers, give due consideration to these requirements, including the definitions provided in section 116(1) TCA 1997, which, among others, incorporate a definition of:
- ‘employee’, whose definition includes the holder of an office for the purposes of the general provisions of benefit-in-kind, and
- ‘employment’, which is defined as an employment such that any emoluments of the employment would be assessed under Schedule E, and references to persons employed by, or employees of, a body corporate include any person who takes part in the management of the affairs of the body corporate and is not a director of the body corporate.
It should be noted that by virtue of section 120 TCA 1997, the benefit-in-kind provisions, including the exemption from BIK provided for in section 118 (5G) TCA 1997 relating to the ‘Cycle-to-Work’ scheme, apply to public bodies.
As stated above, an exemption from benefit-in-kind applies in relation to the ‘Cycle-to-Work’ scheme, provided the required conditions are met. However, where an employer-employee relationship does not exist, for example, in the case of the self-employed, students, individuals in receipt of social welfare payments or unpaid volunteers, such individuals do not qualify for the scheme.
Comprehensive guidance material on the ‘Cycle to Work’ scheme can be found on Revenue’s website, in Tax and Duty Manual 05-01-01g, available on Revenue’s website.
199. Deputy John Paul Phelan asked the Minister for Finance if he or his Department have given an exemption to the data protection laws to a business (details supplied); and if he will make a statement on the matter. [56195/22]
Amharc ar fhreagraFirst, neither I nor the Central Bank of Ireland has a role in providing exemptions to data protection legislation. The application of the data protection legislative framework is a matter for the Data Protection Commission.
As the Deputy is aware, KBC and Bank of Ireland have entered an agreement where Bank of Ireland would acquire the majority of KBC Bank Ireland’s loan assets and deposits. While it is regrettable that KBC has decided to leave the market, this is a commercial decision for the board and management of the bank. What is important now is that the withdrawal takes place in an orderly manner.
In August, KBC began writing to customers to advise them that as part of the transfer to Bank of Ireland, it will transfer certain Personal Data (such as name, date of birth, address, product details, financial information, etc) to Bank of Ireland, to allow Bank of Ireland to contact new customers in advance of the transfer and to test and prepare its systems and operations to ensure that all account(s) operate correctly upon transfer.
KBC and Bank of Ireland have each undertaken that the data transfer will take place in compliance with all applicable data protection legislation.
Further information on the data transfer and the safeguards which the parties have put in place is available on both the websites of KBC and Bank of Ireland.
200. Deputy Aengus Ó Snodaigh asked the Minister for Finance the research that has been carried out into the occupancy of properties owned by REITs for which they are claiming exemption from corporation tax for the past ten years; and if he will make a statement on the matter. [56205/22]
Amharc ar fhreagraA Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. The function of the REIT framework is to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.
The Department of Finance has not undertaken research into the occupancy of properties owned by REITs, I am also informed that the Department of Housing, Local Government and Heritage have not yet conducted research into the occupancy rates of REITs.
Given the important implications that developments in the property market can have for the economy, the Department of Finance actively monitors developments in this sector on an ongoing basis, and research on other aspects of the market has been carried out and published.
- In February 2019 the Economic Division of the Department published a paper on Institutional Investment in the Housing Market.
- In July 2019 officials in the Tax Division of the Department produced a report on Real Estate Investment Trusts (REITs), Irish Real Estate Funds (IREFs) and Section 110 companies with respect to their investment in the Irish property market in 2019. The report was presented to the Tax Strategy Group and provided a basis for policy discussions and led to a number of amendments in Finance Act 2019 to ensure that the regimes are robust and operate as intended.
The Commission on Taxation and Welfare published its report “Foundations for the Future” on 14 September 2022. The Commission recommended that the Government undertake a review of REITs and IREFs, having regard to the role of institutional investment in the Irish property market. As the Deputy will be aware, I welcomed this recommendation as part of my recent Budget speech and committed to undertaking a review. Institutional investment has played a key role in the provision of housing in recent years. It is important to consider how best these structures can continue to support our housing policy objectives. The parameters of this review and timelines have yet to be decided, but I expect it will commence early in the new year.
201. Deputy Cormac Devlin asked the Minister for Finance the current timeframe for a complaint to be adjudicated upon under the Financial Services and Pensions Ombudsman once a complaint leaves the informal dispute resolution process; the number of complaints that have been upheld or substantially upheld as a percentage of all complaints adjudicated to date in 2022; and if he will make a statement on the matter. [56263/22]
Amharc ar fhreagraI am advised by the Financial Services and Pensions Ombudsman (FSPO) that it resolves most of the complaints it receives through methods other than adjudication, such as mediation in its Dispute Resolution Service, or early-stage assessment.
So far this year, complaints resolved by way of a legally binding decision have accounted for only 9% of all complaints closed. For example, in October 2022, 80% of all complaints which completed the process of the FSPO’s Dispute Resolution Service were resolved either through a settlement agreement, or a clarification to the complainant, with only 20% progressing to the formal investigation process that month.
To date in 2022, for complaints where a preliminary decision on adjudication has been issued, the average time from the conclusion of mediation to the issuing of that preliminary decision was 27 months.
When this data is disaggregated, to separate Tracker Mortgage complaints from Non-Tracker complaints, the average time is as follows.
|
Non-Tracker Mortgage Interest Rate related complaints |
19.6 months |
|
Tracker Mortgage Interest Rate related complaints |
44.8 months |
During 2022, certain complaints concerning business interruption insurance arising from the COVID-19 pandemic were prioritised and preliminary decisions were issued within 4 months, in recognition of the importance to policyholders of achieving an early understanding as to whether they were entitled to benefits or payments from their insurer.
This timelines above include both the waiting period before the formal investigation is commenced, and the investigation itself. Once commenced, a formal investigation typically takes between 9 and 18 months, depending on the complexity of the issues involved. Other factors that can contribute to the timeline to adjudication include:
- the requirement for a formal jurisdictional determination of eligibility, for instance, if the time limits are challenged by one of the parties;
- where a need arises to place a complaint on hold for a period, because of external litigation/statutory appeal/ judicial review, which has not yet concluded.
The aggregated average timeline referenced above of 27 months also reflects the fact that during 2022, the FSPO has focused on the resolution of older complaints.
When a formal investigation process is required, the FSPO undertakes a detailed gathering and examination of all relevant evidence, whilst at all times adhering to fair procedures, including facilitating the parties in making their observations and comments regarding the emerging evidence, so that each party can confirm their position.
The volume of submissions received from the parties can contribute to the timeline, because the adjudication will proceed only when both parties have concluded their respective submissions. Similarly, this timeline can be impacted by the requirement to schedule a hearing to take the parties’ oral evidence, when a material conflict in the evidence is noted, which cannot otherwise be resolved.
To answer the Deputy's second question, since 1 January 2022, the FSPO has concluded 370 complaints by way of legally binding decision. The number of complaints that have been upheld, substantially upheld, partially upheld or rejected, as a percentage of all such decisions to date in 2022, is detailed in the table below.
Of all complaints adjudicated on during 2022, 19% were not upheld because an early offer of redress from the provider which was considered reasonable and adequate to redress the complaint remained open to the complainant to accept, and the legally binding decision noted that it was not necessary to make any further direction.
|
Adjudication Resolution |
|
|
Upheld |
8% |
|
Substantially upheld |
5% |
|
Partially upheld |
11% |
|
Not upheld because suitable redress remains available to complainant for acceptance |
19% |
|
Rejected |
56% |
