Written Answers Nos. 209-222
209. Deputy Darren O'Rourke asked the Minister for Transport the additional buses and drivers that would be required to increase the frequency of Dublin Bus route 44 to every 30 minutes in both directions between the hours of 7.30am to 5.30pm on Mondays to Fridays. [10210/23]
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 question raised by the deputy in relation to the additional buses and drivers that would be required to increase the frequency of Dublin Bus route 44 to every 30 minutes in both directions between the hours of 7.30am to 5.30pm on Mondays to Friday is an operational matter for Dublin Bus.
I have, therefore, referred the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
210. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will detail the cost of the excise relief on petrol, diesel and green diesel heretofore which was announced in 2022 as part of the cost-of-living measures; and if he will make a statement on the matter. [9478/23]
Amharc ar fhreagraI am advised by Revenue that the estimated cost to date of the temporary reductions to Mineral Oil Tax (MOT) on Petrol, Diesel, and Marked Gas Oil (MGO), since their introduction in March 2022, are shown in the following table.
|
Fuel Type |
MOT €m |
VAT €m |
|
Petrol |
131.7 |
30.3 |
|
Diesel |
382.5 |
28.2 |
|
MGO |
34.4 |
1.8 |
211. Deputy Paul Murphy asked the Minister for Finance if he will expand the rent-a-room scheme to allow households who have an available bedroom to rent it to an asylum seeker. [9507/23]
Amharc ar fhreagraI am advised by Revenue that the scenario outlined in the Deputy’s Question currently qualifies under the rent-a-room scheme.
Sums arising to an individual in respect of the letting for residential purposes of a room or rooms in an individual’s “sole or main residence”, including the provision of meals, cleaning, laundry or other services supplied in connection with the letting, may be exempt from income tax where the conditions set out in section 216A Taxes Consolidation Act 1997 are met.
To qualify for rent-a-room relief, the total payment for the letting must be below the annual limit, which is €14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income. The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.
Further information on rent-a-room relief is available from the Revenue website at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx.
212. Deputy Pearse Doherty asked the Minister for Finance if there are currently any requirements or regulations in place for payment service providers to undertake confirmation of payee which checks the name of the payee’s account against the name and account details given by the payer; the extent to which this system is adopted by payment service providers domestically; and if he will make a statement on the matter. [9546/23]
Amharc ar fhreagraThere are no specific confirmation of payee requirements in legislation and payee name is not a required part of the identification of a beneficiary.
There are some disadvantages to using the name of the payee as part of the identification of the beneficiary, including unintended rejections of transactions due to minor discrepancies between the name provided by the payer and the actual name of the payee, and mistakes stemming from the use of different languages.
However, payment service users (PSUs) may not be aware that payment service providers (PSPs) are not required to check whether the IBAN and the name of the payee match. PSUs bear the liability and the related financial loss under Article 88 of PSD2 if they have provided a wrong IBAN.
As part of the ongoing review of the Payment Services Directive 2 (PSD2), a recommendation has been made to the Commission to introduce requirements requiring PSPs to inform PSUs that their PSP and the PSP of the payee are not required to check whether the IBAN of the payee and the name of the payee match. This would ensure that PSUs are made aware that such checks are not being carried out by PSPs and the consequences where they provide a wrong IBAN.
213. Deputy Pearse Doherty asked the Minister for Finance the estimated value deferred tax assets yet to be utilised by banks (details supplied) respectively. [9573/23]
Amharc ar fhreagraSection 851A of the Taxes Consolidation Act 1997 precludes the Revenue Commissioners from directly or indirectly disclosing taxpayer information to third parties unless this is specifically provided for in legislation. Therefore, neither Revenue nor I can comment on the tax affairs of any individual or company, so I can only refer to publicly available information.
The latest data available for the estimated value of the relevant banks’ deferred tax assets is from their 2021 annual reports. According to their year ended 31 December 2021 financial statements, the deferred tax assets (DTAs) being held in relation to trading losses forward are as follows:
|
Bank |
DTA value |
Source (y/e 31/12/21 financial statements) |
|
AIB |
€2.834 billion |
Pg 306 |
|
BOI |
€1.044 billion |
Pg 291 |
|
PTSB |
€376 million |
Pg 211 |
In 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach on the subject of both bank losses and corporation tax losses more generally (see www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). The technical note considered in some detail the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or “sunset clause” on loss relief, for Irish banks, for the wider banking sector, or for the corporate sector as a whole.
214. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised by introducing a 25 percent and 50 percent cap, respectively, on corporation tax loss relief utilised in a single year by NAMA participating banks and all banks, respectively. [9574/23]
Amharc ar fhreagraAs the Deputy is aware, loss relief for corporation tax is a long-standing feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.
In the case of banks in which the State holds, or previously held, an ownership stake, the value of these tax losses to the State is realised through share sales. The banks’ share prices recognise a certain value for the tax losses and, as such, the State receives value for the balance of tax losses as sell-downs complete.
The estimated revenue which could be raised by introducing a 25 percent or 50 percent cap, respectively, on corporation tax loss relief utilised in a single year, either by NAMA participating banks only or by all banks, would be dependent on the future profitability of the banks and therefore cannot accurately be forecast.
It is possible to estimate the annual yield which could have arisen from such a restriction in respect of all banks for each of the last four years for which data is available (2018 - 2021), and this is set out in the table below. Having regard to its confidentiality obligations under s851A of the Taxes Consolidation Act, 1997, Revenue is not able to provide a further breakdown of these figures between NAMA participating banks and all other banks.
All Banks
|
Year |
25% |
50% |
|
2018 |
€121.5m |
€243m |
|
2019 |
€53m |
€106m |
|
2020 |
€20.5m |
€41m |
|
2021 |
€85m |
€170m |
The Deputy will also be aware that, in 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach on the subject of both bank losses and corporation tax losses more generally (see www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). The technical note considered in some detail the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or “sunset clause” on loss relief, for Irish banks, for the wider banking sector, or for the corporate sector as a whole.
215. Deputy Frankie Feighan asked the Minister for Finance if he will consider in the lifetime of this Government a pilot study or a report by a competent organisation into a possible narrow tax incentive scheme for owners/developers of town centre buildings in some rural counties incentivising them to develop same into modern commercial premises with over the shop apartments/living accommodation with an emphasis on recreating modern, high BER rating homes and commercial units (details supplied). [9580/23]
Amharc ar fhreagraAs the Deputy may be aware, the Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within predetermined 'Special Regeneration Areas' (SRAs). Such developments may include both residential and commercial elements.
The LCI was reviewed as part of the Tax Strategy Group process in 2022. The review noted that the scheme is a very specific tax incentive, established in compliance with the Department of Finance’s Tax expenditure Guidelines, with the aim of encouraging businesses and home-owners back to the centre of Irish cities in order to preserve historic buildings in special regeneration areas.
In relation to the creation of new tax incentives, and the Deputy will appreciate, decisions regarding taxation measures are usually made in the context of the annual Budget and Finance Bill process and at the appropriate time. Such decisions also must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention. In relation to this final point, there are already significant direct expenditure measures, such as the Croí Cónaithe (Towns) scheme, in place to promote residential development in urban areas.
Ireland’s past experience with tax incentives in this sector strongly suggests the need for a cautionary stance. They created distortions in the construction sector and were, with ended a over decade ago.
I will continue to work with my cabinet colleagues to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.
I have no plans at present to commission a report along the lines suggested.
216. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if increases in the tax bands introduced in Budget 2023 are also available to retired persons over the age of 65 years when availing of their pension funds. [9630/23]
Amharc ar fhreagraFollowing clarification from the Deputy’s office, I understand that the purpose behind the question is to clarify if the income tax changes introduced in Budget 2023 apply to persons aged 65 or over and in receipt of occupational pensions.
As the Deputy will be aware, Budget 2023 included a significant income tax package amounting to a cost of €1.13 billion in 2023 and consisted of both personal income tax and Universal Social Charge (USC) changes. In relation to the income tax changes, the Standard Rate Cut-Off Point for single persons was increased by €3,200, or 8.7 per cent, from €36,800 to €40,000, with commensurate increases for persons who are married/in civil partnerships. In addition, the main tax credits – the personal tax credit, employee tax credit and earned income credit - were all increased by just over 4.4 per cent, or €75 each, from €1,700 to €1,775. The home carer tax credit was also increased by €100, from €1,600 to €1,700, which equates to a 6.3 per cent increase. These tax changes will provide a real benefit to all individuals who pay income tax by reducing their overall income tax liability.
Turning to the USC, the ceiling of the band for the 2 per cent rate was also increased by €1,625, from €21,295 to €22,920. It is also worth pointing out that the USC concession for medical card holders who earn less than €60,000 per annum was extended for a further year, which means such individuals will continue to pay a reduced rate of USC in 2023. Further details can be located at the following link: www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.
To answer the Deputy’s specific question, these tax measures will generally apply to all taxpayers, including PAYE income earners, persons in receipt of occupational pensions and self-employed income earners, as appropriate to their individual circumstances and income levels.
217. Deputy Niall Collins asked the Minister for Finance the updated position regarding the review of the disabled drivers’ and disabled passengers' scheme, the appeals board; the criteria, in particular, for the primary medical certificate; the stage the review is at; if the working group completed its report; when the report will be available; and if he will make a statement on the matter. [9665/23]
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 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 Principal Medical Officer (PMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal (DDMBA). 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:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
My predecessor Minister Donohoe committed to a comprehensive review of the Disabled Drivers and Passengers Scheme (DDS) as part of a broader review of mobility supports. In order to achieve this objective, Minister O’Gorman agreed in September 2021 that the DDS review should be incorporated into the work of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG).
The NDIS TWG was tasked, under Action 104 of the NDIS, with reviewing all Government-funded transport and mobility supports for those with a disability and for making proposals for transport and mobility solutions for those with a disability.
The Working Group, under the Chairpersonship of Minister of State Anne Rabbitte, held a number of meetings across 2022 and produced a report which has just been published ( 27 February 2023) by the Department of Children, Equality, Disability, Integration and Youth who led the NDIS TWG and were responsible for the review.
As part of its engagement in this process, the Department of Finance established an information-gathering Criteria Sub-group (CSG) at the start of 2022. Its membership comprised of former members of the Disabled Drivers Medical Board of Appeal (DDMBA) and Principal Medical Officers (PMOs) in the HSE. Its purpose was to capture their experiences, expertise and perspectives in relation to the practical operational and administrative challenges of the DDS, as well as to explore what alternative vehicular arrangements were available for those with mobility issues based on international experience. The CSG work led to the production of five papers and a technical annex, submitted to the Department of Children, Equality, Disability, Integration and Youth in July 2022.
The main conclusion of the CSG is that the DDS needs to be replaced with a fit for purpose, needs-based vehicular adaptation scheme in line with best international practice.
This conclusion, together with design principles and parameters for the new scheme as based on international practice, were incorporated into a response by the Department of Finance to three questions posed in September 2022 to members of the NDIS Transport Working Group, in respect of proposals for enhanced, new and/or reconfigured supports to meet the transport and mobility needs for those with a disability.
In respect of the Disabled Drivers Medical Board of Appeals, as the Deputy is aware the previous members of the DDMBA resigned effective from 30th November 2021. Since then two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health has led on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials have provided 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. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates were recently nominated by the Minister for Health. All five candidates have now successfully completed Garda Vetting.
I had hoped that I could finalise these appointments and recommence the work of DDMBA in the next few weeks, but unfortunately the National Rehabilitation Hospital (NRH) have just informed me that they wish to cease their involvement with the scheme. As their facilities and secretarial service, which are funded by my Department, are integral to the operation of the DDMBA, there is likely to be a further delay before the appeals process can re-commence. My officials are currently examining what other alternative options may be available to get the scheme up and running again.
You should be aware that assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.
218. Deputy Catherine Murphy asked the Minister for Finance if he will clarify the way in which a business can receive temporary business energy support scheme support in instances where they share an electricity supply that is one metre from the premises, subdivided into separate business dwellings; and if he will make a statement on the matter. [9689/23]
Amharc ar fhreagraDetails of the Temporary Business Energy Support Scheme (TBESS) are set out in Finance Act 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023 and is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.
Self-employed individuals, partnerships or companies who carry on a business may be eligible for payments under the TBESS.
The TBESS operates by reference to bills for the metered supply of natural gas and electricity. It is available to eligible businesses whose average unit price of electricity or gas has increased by at least 50% for the relevant billing period between September 2022 and April 2023, as compared with the average unit gas or electricity price in for the corresponding reference period in the previous year. Where this threshold is met, payments will be made to qualifying businesses on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year.
The TBESS legislation provides, in respect of the metered supply of electricity or gas, that the electricity or gas bill should be provided or made available by an electricity or gas supplier to an eligible business. The legislation also requires that the electricity account or gas connection should be held by the eligible business who uses or consumes the electricity or gas.
A business that does not hold an energy account, and therefore does not receive bills directly from an energy supplier, will not be able to make a claim for payments under the TBESS because the business does not meet the qualifying criteria.
219. Deputy Peadar Tóibín asked the Minister for Finance how many people or companies have received write downs of more than 90% in banks in which the State has had shares, for each for the past ten years. [9730/23]
Amharc ar fhreagra220. Deputy Peadar Tóibín asked the Minister for Finance how many people or companies have received write downs of more than 80% in banks in which the State has had shares, for each for the past ten years. [9731/23]
Amharc ar fhreagra221. Deputy Peadar Tóibín asked the Minister for Finance if the public interest directors in banks in which the State has had shares were aware of any debt write downs of more than 90% in the past ten years; if so, what actions, if any, the public interest directors took; if the public interest directors made him or his Department aware of these write downs; and if he or his Department took any action. [9732/23]
Amharc ar fhreagra222. Deputy Peadar Tóibín asked the Minister for Finance if the public interest directors in banks in which the State has had shares were aware of any debt write downs of more than 80% in the past ten years; if so, what actions, if any, the public interest directors took; if the public interest directors made him or his Department aware of these write downs; and if he or his Department took any action. [9733/23]
Amharc ar fhreagraI propose to take Questions Nos. 219 to 222, inclusive, together.
As Minister for Finance, I do not have a role in the credit assessment, risk assessment or debt resolution processes of any 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 independence of banks in which the State has a shareholding is protected by Relationship Frameworks, which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
Neither I nor officials in my Department receive information in relation to the debt write-downs granted by the banks in which the State has/had a shareholding in, these are commercial decisions which would have been made by the banks on a case-by-case basis having reviewed the information available to them at the time of the decision.
Appointments to the boards of the banks in which the State has a shareholding are made on foot of the Minister’s rights as shareholder in each of the banks and not using the powers contained in the Credit Institutions Financial Support (CIFS) Act as was the case with Public Interest Directors. Pursuant to these rights the Minister can nominate up to two directors to be appointed to the boards of both AIB and PTSB. While these bank directors are nominated by the Minister for Finance, they must carry out their functions on an independent basis. While a nominated bank director’s primary duty is to the bank itself, there is periodic communication with the Department of Finance and/or the Minister on any important matters of interest or concerns relating to the Minister as shareholder from a board level. Typically, any decisions around customer debt write-downs would not be a matter for the board of a bank.
