Tuesday, 7 Mar 2023

Written Answers Nos. 76-100

Departmental Bodies

Ceisteanna (76)

Catherine Connolly

Ceist:

76. Deputy Catherine Connolly asked the Minister for Finance further to Parliamentary Question No. 240 of 24 January 2023, the status of the Disabled Drivers Medical Board of Appeal; the details of the body that will provide the facilities and secretarial service, in light of the recent decision by the National Rehabilitation Hospital to cease its involvement with the scheme; the timeline for when the appeals process will recommence; and if he will make a statement on the matter. [11107/23]

Freagraí scríofa

Minister for Finance

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. However, the National Rehabilitation Hospital (NRH) has recently indicated that it wishes to cease its involvement with the scheme, and as its facilities and secretarial service, which are funded by my Department, are integral to the operation of the DDMBA, it may take time to put in place feasible and appropriate alternative arrangements to enable the appeals process to re-commence. You should note that both I and my officials are actively looking into this matter.

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.

Primary Medical Certificates

Ceisteanna (77)

Pauline Tully

Ceist:

77. Deputy Pauline Tully asked the Minister for Finance if the Disabled Drivers Medical Board appeals process has been re-established; and if he will make a statement on the matter. [11388/23]

Freagraí scríofa

Minister for Finance

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. However, the National Rehabilitation Hospital (NRH) has recently indicated that it wishes to cease its involvement with the scheme, and as its facilities and secretarial service, which are funded by my Department, are integral to the operation of the DDMBA, it may take time to put in place feasible and appropriate alternative arrangements to enable the appeals process to re-commence.

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.

Tax Credits

Ceisteanna (78, 83, 92, 97, 98, 101, 114, 132, 138, 250)

Brendan Smith

Ceist:

78. Deputy Brendan Smith asked the Minister for Finance his estimate of the number of persons in County Cavan who are eligible to claim the rent tax credit; his estimate of the number of persons in County Monaghan eligible to claim the rent tax credit; the number of persons in County Cavan currently claiming it; the number of persons in County Monaghan currently claiming it; and if he will make a statement on the matter. [11325/23]

Fergus O'Dowd

Ceist:

83. Deputy Fergus O'Dowd asked the Minister for Finance if the total number of persons who have successfully claimed the rent tax credit recently introduced by the Government; if this measure will be strengthened into the future; and if he will make a statement on the matter. [11343/23]

Jennifer Murnane O'Connor

Ceist:

92. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the total number of applications for the rent tax credit to date in 2023; if a county breakdown of the claims is available; when the first credits will be paid; and if he will make a statement on the matter. [11306/23]

James Lawless

Ceist:

97. Deputy James Lawless asked the Minister for Finance his estimate of the number of persons in County Kildare who are eligible to claim the rent tax credit; the number of persons in County Kildare currently claiming it; and if he will make a statement on the matter. [11369/23]

Jackie Cahill

Ceist:

98. Deputy Jackie Cahill asked the Minister for Finance his estimate of the number of persons in County Tipperary eligible to claim the rent rax credit; the number of persons currently claiming it; and if he will make a statement on the matter. [11310/23]

Ruairí Ó Murchú

Ceist:

101. Deputy Ruairí Ó Murchú asked the Minister for Finance if he will provide an update on the number of persons who have availed of the new rent tax credit since it was introduced; the number awarded the credit who provided an RTB registration number in their application compared with those who have not; and if he will make a statement on the matter. [10257/23]

Paul McAuliffe

Ceist:

114. Deputy Paul McAuliffe asked the Minister for Finance his estimate of the number of persons in Dublin eligible to claim the rent tax credit; the number of persons currently claiming it; and if he will make a statement on the matter. [11303/23]

Alan Farrell

Ceist:

132. Deputy Alan Farrell asked the Minister for Finance the number of people who have claimed the rent tax credit to date; and if he will make a statement on the matter. [10973/23]

Joe Flaherty

Ceist:

138. Deputy Joe Flaherty asked the Minister for Finance his estimate of the number of persons in County Longford who are eligible to claim the rent tax credit; the number of persons in County Longford currently claiming it; and if he will make a statement on the matter. [11350/23]

Jennifer Murnane O'Connor

Ceist:

250. Deputy Jennifer Murnane O'Connor asked the Minister for Finance his estimate of the number of persons in County Carlow who are eligible to claim the rent tax credit; the number of people in County Carlow currently claiming it; and if he will make a statement on the matter. [11312/23]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 78, 83, 92, 97, 98, 101, 114, 132, 138 and 250 together.

The Finance Act 2022 introduced the Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997. This is an income tax credit of up to €500 per year (or up to €1,000 for jointly assessed couples) which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

As regards the numbers of persons eligible to claim the Rent Tax Credit in 2023, approximately 400,000 persons are estimated to be eligible. This estimate was compiled using Central Statistics Office (CSO) data relating to the national rental sector from January to June 2021. The estimate is not broken down on a county by county basis.

I am advised by Revenue that the most recent breakdown of Rent Tax Credit claims, published on 2 March 2023, is available on the Revenue website, and which sets out data to 27 February.

The Rent Tax Credit statistics refer to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to date. Data on claims by self-assessed taxpayers is not yet available as these taxpayers’ returns are generally submitted later in the year.

The publication shows 167,645 claims and that:

- 162,082 taxpayers made claims for 2022 only,

- 3,595 taxpayers made claims for both 2022 and 2023, and

- 1,968 taxpayers made claims for 2023 only.

Claims in respect of the 2022 year of assessment have been made by PAYE taxpayers by submitting an Income Tax return for 2022 through Revenue’s online facility, myAccount. For claims relating to the 2023 year of assessment, those in receipt of income which is subject to tax under the PAYE system have been able to claim the rent tax credit due to them in-year, from 20th February 2023 onwards, or will be able to claim by way of an end of year claim included in his or her Income Tax return for 2023. I am further advised that the resulting refunds have been issuing since the 3 January 2023.

The provision of a Residential Tenancies Board (RTB) registration number is not a mandatory part of the claim process. However, I am advised by Revenue that to date over 76,500 claimants have provided an RTB registration number.

The Rent Tax Credit claims made are on a ‘tax unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.

In relation to the questions asked by Deputies Smith, McAuliffe, Murnane O'Connor, Cahill, Flaherty and Lawless, the breakdown of the number of taxpayers claiming the Rent Tax Credit by county was as follows:

Carlow, 1,420Cavan, 1,227Clare, 1,908Cork, 19,182Donegal, 1,950Dublin, 80,385Galway, 12,331Kerry, 2,280Kildare, 5,713Kilkenny, 1,658Laois, 1,205Leitrim, 501Limerick, 8,246Longford, 891Louth, 2,044Mayo, 2,115Meath, 2,748Monaghan, 968Offaly, 1,202Roscommon, 1,006Sligo, 1,878Tipperary, 2,548Waterford, 3,213Westmeath, 2,345Wexford, 2,459Wicklow, 1,852Unmatched, 4,370

The operation of the Rent Tax Credit will be closely monitored by my Department in conjunction with Revenue in the coming months and the question of whether any further adjustments are needed will be considered in the context of the annual Budget and Finance Bill process.

Tax Code

Ceisteanna (79)

Emer Higgins

Ceist:

79. Deputy Emer Higgins asked the Minister for Finance his plans to review the 41% exit tax charged on life-wrapped funds sold by life assurance companies and from exchange trade funds. [11282/23]

Freagraí scríofa

Minister for Finance

Exit tax charged on life assurance polices and investments in domestic funds including ETFs is a collection mechanism that is coupled with the gross roll-up regime. The gross roll-up taxation regime for investments in domestic funds and for investments in life policies was introduced in Finance Bill 2000. The general thrust of the gross roll-up regime is that there is no annual tax on income or gains arising within the investment. However, exit tax must be deducted on the occurrence of a “chargeable event”, which includes a “deemed disposal” at the end of every 8-year period to prevent indefinite roll-up within the fund or policy. The rate of exit tax applied is generally 41% in the case of an individual.

As the Deputy will be aware, the Commission on Taxation and Welfare, published their report Foundations for the Future in 2022. The Commission considered how the overall balance of taxation might shift in order to sustainably fund public services over the longer-term and made a range of recommendations aimed at improving the sustainability of the taxation and welfare systems.

The Commission recommended the establishment of a working group to examine and make recommendations for modernising the taxation and administration of investments. That is why, in his Budget speech, my predecessor announced the intention to commence a review of these areas.

Specific detail on the parameters of such a review and timelines are still being worked out. Once a thorough consideration of the matter takes place, I will share the terms of reference.

Question No. 80 answered with Question No. 69.

Tax Code

Ceisteanna (81)

Gino Kenny

Ceist:

81. Deputy Gino Kenny asked the Minister for Finance if he is aware of an organisation's (details supplied) recent call for a wealth tax of graduated rates of 2%, 3% and 5% on wealth above €4.7 million, with the organisation stating that such a wealth tax would raise €8.2 billion annually and has the potential to transform Irish public services in health, housing and education; and if he will make a statement on the matter. [11371/23]

Freagraí scríofa

Minister for Finance

I am aware that Oxfam International produced a new report on January 16th 2023 regarding global wealth inequality entitled “Survival of the Richest” which proposes new wealth taxes in Ireland and in other jurisdictions.

While I understand the background to calls for a specific wealth tax in Ireland, it is not the case that wealth in Ireland is untaxed, as taxes on wealth are already in place here.

The Government is committed to creating a fairer, more equal Ireland. While the calls for a specific wealth tax are often made, there are already a number of wealth taxes in place including Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Revenue estimates that these taxes raised over €2.8 billion last year.

The Oxfam report notes that “Two-thirds of countries do not have any form of inheritance tax on wealth and assets passed to direct descendants." I would remind the Deputy that Ireland has a significant inheritance tax regime in place in the form of Capital Acquisitions Tax which is charged (with limited exemptions) at a rate of 33%.

Oxfam's report also notes that “Rates of tax on capital gains – in most countries the most important source of income for the top 1% – are only 18% on average across more than 100 countries.” I would again remind the Deputy that Capital Gains Tax is in place in Ireland and it is charged, again with limited exemptions, at a rate of 33% which is well above the 18% average reported by Oxfam.

Any revenue raised from a new wealth tax may not therefore be additional to the existing forms of wealth taxation, as revenues from those taxes could be affected by the introduction of such a new tax.

In addition to wealth taxes, the Government takes action against inequality through our tax and welfare system. For instance, the strong redistributive role of the Irish tax and welfare system is evident in the range of supports introduced to help mitigate the impact of the Covid-19 pandemic and the current cost of living pressures on vulnerable households and businesses. The overall distributional impact of Budget 2023 was strongly progressive, with the lowest three deciles experiencing the highest gains as a proportion of disposable income.

Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.

It is estimated that the top 1 per cent of income earners, those earning in excess of €263,000 will pay 23 per cent of the total income tax and USC collected in 2023. While those earning less than €65,000 which represents the bottom 80 per cent of income earners, will contribute only 21 per cent of total income tax and USC receipts.

In conclusion, I can assure you that all taxes and potential taxation options are kept under constant consideration and it remains a priority of mine to ensure that Ireland maintains its progressive taxation system.

Question No. 82 answered orally.

Question No. 83 answered with Question No. 78.

Question No. 84 answered with Question No. 82.

Small and Medium Enterprises

Ceisteanna (85)

David Stanton

Ceist:

85. Deputy David Stanton asked the Minister for Finance the way his Department is working to encourage small Irish-based businesses to scale up in size using taxation strategy; and if he will make a statement on the matter. [11382/23]

Freagraí scríofa

Minister for Finance

My Department has introduced a number of taxation measures which support the scale-up of small businesses in Ireland, including: the section 486C relief for certain start-up companies; the Employment Investment Incentive (EII); the Key Employee Engagement Programme (KEEP); the Start-Up Relief for Entrepreneurs (SURE); and the Start-Up Capital Investment (SCI).

Finance Act 2008 introduced the section 486C relief for certain start-up companies, initially to apply in respect of the first three years of trading. Finance Act 2021 extended this relief to five years, for companies that commenced to trade from 1 January 2018 onwards. It provides relief from corporation tax to new start-up companies who have a corporation tax liability of less than €40,000 for an accounting year. Marginal relief is available for companies with a corporation tax liability of between €40,000 and €60,000, and the relief is also linked to employer's PRSI liabilities of the company. The purpose of the relief is to encourage start-up companies in Ireland and thereby create additional employment and economic activity in the State. Promoting investment and jobs in Ireland is a key part of the Government’s overall strategy.

The Employment Investment Incentive (EII) provides an incentive for investment in certain SMEs. The EII provides tax relief for individuals who purchase qualifying trading company shares. The relief aims to encourage individuals to provide equity-based finance to trading companies, to assist companies to raise finance to allow them to expand and create or retain jobs.

The Key Employee Engagement Programme (KEEP) allows certain SMEs to engage key staff in a more cost efficient manner. The scheme is a focused share option programme, intended to help SMEs attract and retain talent in a highly competitive labour market.

The Start-Up Relief for Entrepreneurs (SURE) is a tax relief for entrepreneurs who leave an employment to set up their own company. It can provide a refund of income tax paid in previous years where the individual establishes a new trading company and invests cash through the purchase of shares.

The Start-Up Capital Investment (SCI) is a tax relief for early-stage micro companies to attract equity-based risk finance from family members.

Further information on these incentives is available on the Revenue website at www.revenue.ie.

In addition, my Department has begun initial work on a review of the personal tax system, taking account of the recent report of the Commission on Taxation and Welfare and considering a range of personal tax issues, including matters of relevance to sole traders and other non-corporate businesses. The review will involve a public consultation.

Tax Code

Ceisteanna (86)

Pearse Doherty

Ceist:

86. Deputy Pearse Doherty asked the Minister for Finance his views on increasing excise duty on the price of gas for residential use, home heating oil and solid fuel products in May 2023 in the context of a cost-of-living crisis; and if he will make a statement on the matter. [11322/23]

Freagraí scríofa

Minister for Finance

I am acutely aware of the effect that high energy prices and the cost of living are having on families, businesses and the most vulnerable.

In recognition of these ongoing challenges, last month the government agreed a new €1.2 billion package of measures to put money back into people’s pockets, help with the bills, and ensure there is no cliff-edge removal of the temporary support measures already in place. This new package comes on top of the extensive assistance provided by Government in Budget 2023. Part of this new package includes the Government decision to extend the application of the reduced VAT rate of 9% for gas and electricity to 31 October 2023 to provide ongoing support to those facing high energy prices. The estimated cost of this measure is €115m. This will add to the already substantial support provided by Government to help with the cost of living.

The long term carbon tax policy sets out gradual annual increases in the carbon tax rate. The 2020 Programme for Government committed to increasing the amount that is charged per tonne of CO2 emissions from fuels to €100 by 2030. Government followed through on this commitment by introducing legislation in Finance Act 2020 to provide for a 10-year trajectory for carbon tax increases to reach €100 per tonne of CO2 by 2030. This measure is a key pillar underpinning the Government’s Climate Action Plan to halve emissions by 2030 and reach net zero no later than 2050.

It is important to note that a significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long term, provides support against fuel price impacts by reducing our reliance on fossil fuels.

Question No. 87 answered with Question No. 82.

Tax Reliefs

Ceisteanna (88, 116, 130, 254)

Fergus O'Dowd

Ceist:

88. Deputy Fergus O'Dowd asked the Minister for Finance the total moneys received by the Revenue Commissioners in January and February 2023 through benefit-in-kind payments for vehicles compared with receipts from January and February 2021 and 2022; if any further consideration has been given to assist the many thousands of BIK recipients who have been negatively impacted financially since the change on 1 January 2023 in the midst of a cost-of-living crisis; and if he will make a statement on the matter. [11342/23]

Alan Dillon

Ceist:

116. Deputy Alan Dillon asked the Minister for Finance if he plans to re-examine the benefit-in-kind changes introduced in the Finance Act 2019 due to higher emissions and costs to those workers; and if he will make a statement on the matter. [11340/23]

James O'Connor

Ceist:

130. Deputy James O'Connor asked the Minister for Finance if his Department will reconsider the recent changes made to the benefit-in-kind tax for diesel vehicles; if his Department considered the rising costs to motorists despite the lead in time to the programme since the implementation of the 2019 Finance Act; and if he will make a statement on the matter. [11339/23]

Richard Bruton

Ceist:

254. Deputy Richard Bruton asked the Minister for Finance if he has received complaints that the BIK regime now in place is resulting in people undertaking greater mileage to reduce their tax exposure; if he has evaluated the features which cause this behaviour; and if he will make a statement on the matter. [11529/23]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 88, 116, 130 and 254 together.

I, and my Government colleagues, are aware of the issues being raised in relation to vehicle benefit-in-kind. This is something which is under consideration at the moment. I expect to be able to provide further clarity shortly.

Additionally, to note, it is not possible from the data submitted to Revenue in respect of benefit-in-kind to identify specific statistics solely in relation to BIK on employer-provided vehicles, as the information submitted is not itemised based on the type of benefit granted.

Tax Credits

Ceisteanna (89)

Michael Moynihan

Ceist:

89. Deputy Michael Moynihan asked the Minister for Finance if he has plans to review the criteria for the incapacitated child tax credit; and if he will make a statement on the matter. [11376/23]

Freagraí scríofa

Minister for Finance

The legislation governing entitlement to the incapacitated child tax credit is contained in section 465 of the Taxes Consolidation Act 1997, as amended. The legislation provides that an individual is entitled to a tax credit of €3,300 per qualifying child for a year of assessment if he or she proves that at any time during the year of assessment, he or she has a child who is:

- under 18 years of age and is permanently incapacitated by reason of mental or physical infirmity, or

- if over the age of 18 years at the beginning of the year, is permanently incapacitated from maintaining himself/herself and had become so permanently incapacitated either before reaching 21 years of age or after that age while receiving full-time instruction at any university, college, school or other educational establishment.

A child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if that infirmity is such that, if the child were over 18, there would be a reasonable expectation that he or she would be incapacitated from maintaining himself or herself.

For the purposes of the credit, “maintaining” means the ability to support oneself by earning a living from working. Where the child is under 18, the incapacity must be such that, even with the benefit of any treatment, device, medication or therapy, the child is unlikely to be able to maintain themselves when he or she reaches 18.

In order to establish entitlement to the credit in respect of any such child, medical evidence provided by the child’s medical practitioner is required to confirm both the extent of the incapacity and whether the incapacity permanently prevents the child from being able, in the long term, to maintain himself or herself independently when over the age of 18 years.

Detailed information on the operation of the tax credit is available on Revenue’s website at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/index.aspx

It is noted that this credit applies in addition to other various supports from other parts of Government, including the Department of Social Protection, the Department of Health and the Department of Children, Disability, Equality and Integration that assist those with caring responsibilities. I also note that, in its 2009 report, the former Commission on Taxation recommended for reasons of equity that, ultimately, “the appropriate level of State support be provided to all incapacitated children through direct expenditure and that the tax credit be discontinued”. Such a course of action would obviously require very careful consideration and is not on the agenda at the present time. Equally, while tax measures are monitored by my Department as a matter of course, currently I do not have plans for a detailed review of this credit.

Tax Credits

Ceisteanna (90)

Rose Conway-Walsh

Ceist:

90. Deputy Rose Conway-Walsh asked the Minister for Finance when the next departmental tax expenditure evaluation will be published on the research and development tax credit; and if he will make a statement on the matter. [10598/23]

Freagraí scríofa

Minister for Finance

The R&D tax credit was reviewed in 2022, along with the Knowledge Development Box (KDB). The review was published on Budget day as part of the Budget 2023 Report on Tax Expenditures, and is available on the Budget 2023 website at the following link: www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/

A public consultation process was also held as part of that review. Twenty-one responses to the public consultation were received from a range of respondents, including companies, advisory firms, and Government Departments. These submissions were published and are available at the following link: www.gov.ie/en/consultation/d12cb-public-consultation-on-the-research-development-tax-credit-and-the-knowledge-development-box-april-2022/

Under the Tax Expenditure Guidelines, it is expected that the R&D tax credit will be reviewed again in 2026.

Primary Medical Certificates

Ceisteanna (91)

Michael Moynihan

Ceist:

91. Deputy Michael Moynihan asked the Minister for Finance if any changes are planned to the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [11377/23]

Freagraí scríofa

Minister for Finance

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 its final report was published on 24 February 2023.

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 Minister for 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.

It should be noted that the final report of the NDIS Transport Working Group, published on 24 February, reflects my Department's views with respect to introducing a new vehicular adaptation scheme, but does not propose next steps in terms of implementing such a scheme. I will work with Government colleagues to seek ways to advance the new scheme.

Question No. 92 answered with Question No. 78.

Vehicle Registration Tax

Ceisteanna (93, 129)

Joe Flaherty

Ceist:

93. Deputy Joe Flaherty asked the Minister for Finance if he will review current rates of VRT given that some disability support and special needs organisations are being negatively impacted by current rates; and if he will make a statement on the matter. [11349/23]

Pauline Tully

Ceist:

129. Deputy Pauline Tully asked the Minister for Finance if he is concerned by the situation whereby disabled people who need to have vehicles modified for their use outside of the State are facing high additional costs due to VRT; his plans to alleviate this; and if he will make a statement on the matter. [11389/23]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 93 and 129 together.

The Deputy should note at the outset that VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. The charge is determined by the Open Market Selling Price of the vehicle. Recent reform to the rates structure results in increased VRT rates for high emission vehicles, while lower emission vehicles continue to incur low rates of VRT. This reflects the environmental rationale of the tax and underpins Government commitments to decarbonise road transport. It is calculated at the point of registration of the vehicle in the State, regardless of the vehicles origin.

It should also be noted that for category C vehicles (typically those with 10 or more seats) there is a flat rate VRT charge of €200.

In this context, the Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and Value Added Tax on the purchase and use of an adapted vehicle, as well as an exemption from motor tax and an annual fuel grant. The relief from VAT and VRT are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. These reliefs as a general rule cover the needs of most people availing of this scheme. I note however, the Deputies concerns and have asked my officials to examine this matter.

Business Supports

Ceisteanna (94)

Chris Andrews

Ceist:

94. Deputy Chris Andrews asked the Minister for Finance if the temporary business energy support scheme is available to (details supplied]; and if he will make a statement on the matter. [11105/23]

Freagraí scríofa

Minister for Finance

Details 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.

The TBESS 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. Sporting bodies that carry on certain activities that would be chargeable to tax under Case I or II of Schedule D but for an available exemption are included in the scheme. Charities that carry on activities that would be chargeable to tax as trading income, but for an available tax exemption, are also included in the scope of the scheme. The scheme operates on a self-assessment basis.

The TBESS applies to the metered supply of electricity and natural gas and operates by reference to bills or statements for their supply through electricity accounts or gas connections identified by the account holders own Meter Point Reference Number (MPRN) or Gas Point Reference Number (GPRN).

TBESS is administered by Revenue. Eligible businesses can register for and make claims using Revenue's Online Service (ROS). Revenue has published comprehensive guidelines on the operation of the scheme on the Revenue website, which includes information on eligibility for the scheme and how claims may be made.

As the Deputy will be aware neither Revenue nor I can comment directly or indirectly on the arrangements of individual persons/businesses. The entity concerned should contact Revenue directly in the first instance to determine their eligibility for the scheme.

Further details on TBESS and the relevant conditions for making a claim can be found at: www.revenue.ie/en/starting-a-business/tbess/index.aspx

Banking Sector

Ceisteanna (95)

Louise O'Reilly

Ceist:

95. Deputy Louise O'Reilly asked the Minister for Finance if he is aware of the sale of tracker mortgages to vulture funds that were redressed or compensated as a result of the tracker mortgage examination; his views on these sales; and if he will engage with the Central Bank on the issue. [11393/23]

Freagraí scríofa

Minister for Finance

The Central Bank Tracker Mortgage Examination required lenders to identify all borrowers affected by tracker related issues and to compensate those affected borrowers for tracker related failings on a mortgage in line with the Principles for Redress that formed part of the framework.

The Principles for Redress set out that lenders make redress and compensation offers that were fair and commensurate with the detriment suffered by affected borrowers. This included that such redress would result in affected borrowers being returned to the position they would have been in had the lenders’ failure regarding the customer’s tracker mortgage not arisen. This included that:

- compensation is reasonable and must reflect the detriment involved arising from and/or associated with being on an incorrect rate (such compensation to reflect the specific circumstances of each impacted customer); and

- impacted borrowers to revert to the appropriate Tracker Interest Rate or to be offered the option to revert to an appropriate Tracker Interest Rate, where relevant.

The Central Bank's final report of the supervisory phase of the examination was published in July 2019. It outlined that over 40,000 customer accounts were impacted by lender failings and that almost €700 million of redress and compensation was paid to impacted borrowers and borrowers were returned to the appropriate tracker rate as necessary.

I am aware that some tracker mortgages were sold to 3rd parties including investment funds, and were subject to the Principles for Redress outlined above if impacted by tracker related issues. With the result that were treated in the same way as impacted tracker mortgages that were not sold to 3rd parties.

In the case of impacted loans that were sold by lenders to 3rd parties, the originating lender was responsible for ensuring that borrowers were put back in the position they would have been if the tracker failing had not occurred.

I have been informed by the Central Bank that this included engaging with any new mortgage entity where necessary to ensure that the customer received redress and compensation and the appropriate tracker rate going forward.

Income Inequality

Ceisteanna (96)

Richard Boyd Barrett

Ceist:

96. Deputy Richard Boyd Barrett asked the Minister for Finance if he is aware of an organisation’s (details supplied) recent report on wealth inequality in Ireland, which found that the number of Irish persons with individual wealth of over €46.6 million has more than doubled between 2012 and 2022, rising from 655 to 1,435 people; and if he will make a statement on the matter. [11408/23]

Freagraí scríofa

Minister for Finance

I am aware of the data to which the Deputy refers; I am also aware of the latest data from the Central Bank of Ireland's Distributional Wealth Accounts which show that net wealth inequality has declined over the past decade. The Gini coefficient – a common measure of inequality – fell from 0.78 in the second quarter of 2013 to 0.68 in the first quarter of 2022.

The report to which the Deputy refers states that the bottom half of Irish society's share of wealth stands at 1.2 per cent. This figure is significantly impacted by the negative net wealth share of the bottom decile (-2.8 per cent). This is mostly likely due to borrowing to acquire current or future assets, such as a loan to support third-level education, business start-ups or where there has been a decline in house prices.

In contrast, official data from the CSO's Household Finance and Consumption Survey show that the bottom half of the income distribution's share of wealth is 7.8 per cent. Also, the wealth share of the bottom decile has improved from -3.5 per cent in 2013, to -0.6 per cent in 2020. This reflects a movement of people out of negative equity over the period; 75.8 per cent of households in the bottom wealth decile were in negative equity in 2013, compared to 6.4 per cent in 2020.

So, to summarise, official data paint a different picture.

On the wider policy perspective, let me restate that the Government is committed to creating a fairer, more equal Ireland. In this respect, Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax all represent taxes on wealth. The Revenue Commissioners estimate that these taxes raised over €2.8 billion last year.

In addition to wealth taxes, the Government takes action against inequality through the broader tax and welfare system. In fact, Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.

The Revenue Commissioners estimate that the top 1 per cent of income earners, those earning in excess of €263,000 will pay 23 per cent of the total income tax and USC collected in 2023. Those earning less than €65,000 which represents the bottom 80 per cent of income earners, will contribute only 21 per cent of total income tax and USC receipts.

Question No. 97 answered with Question No. 78.

Question No. 98 answered with Question No. 78.

Business Supports

Ceisteanna (99, 107)

Mairéad Farrell

Ceist:

99. Deputy Mairéad Farrell asked the Minister for Finance if he plans to extend the business energy support scheme to LPG gas and oil; and if he will make a statement on the matter. [8044/23]

Louise O'Reilly

Ceist:

107. Deputy Louise O'Reilly asked the Minister for Finance further to his commitment at the Select Oireachtas Committee on Enterprise, Trade, and Employment, if he has devised a way to include those businesses using kerosene oil and LPG gas in the temporary business energy support scheme; and if he will make a statement on the matter. [9182/23]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 99 and 107 together.

The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.

Details of the scheme 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. However, subject to State aid approval, this period is to be extended to cover energy costs up to 31 May 2023. It 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.

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 for the relevant billing period has increased by a certain percentage as compared with the average unit gas or electricity price in the corresponding reference period in the previous year. Currently the relevant percentage is 50% however, as recently announced, and subject to State aid approval, this percentage is to be reduced to 30% on a retrospective basis, which will allow more businesses to qualify. Amounts payable under the TBESS are calculated based on a percentage of the increase in an electricity or natural gas bill as compared to a bill amount in a corresponding reference period in the previous year. Currently, the payment is based on 40% of the increase however, subject to State aid approval, this is to be increased to 50% for claim periods from 1 March 2023.

TBESS only applies to the metered supply of natural gas and electricity. The scheme is designed around determining increases in unit prices and actual consumption for each month falling within the period of the scheme as compared to the same month in the previous year based on information made available through electricity and gas meters. Based on the feedback from Revenue it is not possible to calculate oil and LPG usage in the same manner as for electricity and metered mains gas. As a consequence, the Government announced recently that a separate scheme will be developed for businesses that use oil and LPG and the Minister for Enterprise Trade and Employment has committed to exploring options for such a scheme and to revert to Government on this matter in due course.

Tax Credits

Ceisteanna (100)

Jennifer Murnane O'Connor

Ceist:

100. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the number of persons who availed of the stay-and-spend scheme; the value of receipts uploaded to the scheme; the cost to the State of the scheme; and if he will make a statement on the matter. [11305/23]

Freagraí scríofa

Minister for Finance

The purpose of the Stay and Spend Tax Credit scheme was to provide targeted support to businesses within the hospitality sector whose operations were likely to be most affected by public health restrictions that were in place as a result of the Covid-19 pandemic. The scheme terminated on 30 April 2021.

I am advised by Revenue that In respect of the period from the 1 October 2020 to 31 December 2020, 21,175 taxpayers availed of the scheme with a total value of receipts uploaded in the amount of €5,963,384. In respect of the period from the 1 January 2021 to the 30 April 2021, 3,453 taxpayers availed of the scheme with a total value of receipts in the amount of €650,198. The related tax cost associated with both periods is in the order of €1.3 million.

These figures may increase over time as not all Income Tax Returns have been filed for the relevant years and PAYE taxpayers have up to four years to claim credits they may be entitled to. Subsequent to claims being made in respect of this scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.

It is not possible currently to determine the final cost to the exchequer of this scheme as it was operated as a tax credit available against an individual’s final Income Tax or USC liability which is affected by numerous factors, including other credits and or reliefs to which a person may be entitled.