Written Answers Nos. 102-116
102. Deputy Carol Nolan asked the Minister for Finance to clarify the conditions that must be fulfilled for a person to claim carer's credits; what evidence is required or would be accepted to prove a person was a carer if, for example, they never applied for carers allowance but engaged in caring for a family member for a number of years; and if he will make a statement on the matter. [45388/23]
Amharc ar fhreagraThe Irish tax code provides for a wide range of tax credits, reliefs and allowances for individuals who are carers or have care responsibilities. Eligibility for these tax credits, reliefs and allowances is based on the conditions and criteria attached to each individual measure and the claimant’s personal circumstances.
It is also important to note that Revenue pro-actively corresponds with different cohorts of taxpayers to publicise the range of credits which they may be entitled to claim, however any individual who requires assistance in determining the full range of credits and reliefs which he or she may be entitled to claim, based on their personal circumstances, should contact the Revenue office which deals with his or her tax affairs. Contact details for various Revenue offices can be found at the following link:
www.revenue.ie/en/contact-us/index.aspx.
Following engagement with the Deputy’s Office, details of the main credits, reliefs and allowances available for individuals who are carers or have care responsibilities are set out below, with further details available at the following link:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/index.aspx.
Exempt Income
An exemption from income tax applies in respect of the carer’s support grant and the domiciliary care allowance, which are payments made by the Department of Social Protection.
Home Carer’s Tax Credit
The home carer tax credit is provided for in section 466A Taxes Consolidation Act 1997 (TCA 1997) and is available to jointly assessed married couples or civil partners where one spouse or civil partner (the ‘home carer’) stays at home to take care of a dependent person.
A dependent person includes:
• a child in respect of whom the home carer, or his or her spouse or civil partner, is in receipt of child benefit;
• an individual aged 65 years or over; or
• an individual who is permanently incapacitated by reason of mental or physical infirmity.
The dependent person must normally reside with, or in close proximity to, the married couple or civil partners for the relevant year of assessment.
To obtain the full tax credit, which is €1,700 for the 2023 year of assessment, the home carer’s income for the year must not exceed €7,200. Carer’s Benefit and Carer’s Allowance received by the home carer is disregarded for this purpose. Where the home carer’s income is between €7,200 and €10,600 a partial credit will be available, but the credit available will be reduced to nil where the home carer’s income exceeds €10,600.
It should be noted that, as a result of Budget 2024, this credit will be increased by €100 from €1,700 to €1,800 as of 1 January 2024. The upper income limit in respect of the credit will be increased from €10,600 to €10,800 per annum as of 1 January 2024.
In addition, married couples or civil partners cannot claim both the increased standard rate band for dual income couples and the home carer tax credit in the same year of assessment. In practice, Revenue will grant whichever relief will provide the most beneficial treatment to the couple.
Dependent Relative Tax Credit
The dependent relative tax credit is provided for in section 466 TCA 1997 and is available to any individual who maintains, at his or her own expense:
• any relative (including the relative of a spouse or civil partner) who is incapacitated by old age or infirmity from maintaining himself or herself;
• either his or her own or their spouse or civil partner’s widowed parent (whether incapacitated or not); or
• a child of either the claimant or his or her spouse or civil partner, who resides with the claimant and on whose services the claimant, by reason of old age or infirmity, is compelled to depend.
In addition, any income due to the person being maintained by the claimant must not exceed the specified amount which, for the 2023 year of assessment, is €16,780.
The tax credit due, where the relevant conditions are met, is valued at €245 and a separate credit is available in respect of each person the claimant maintains. As noted above, this credit cannot be claimed in conjunction with the incapacitated child tax credit.
Employing a Carer
Relief for the cost of employing a carer to care for an incapacitated person is provided for in section 467 TCA 1997 and is available to any individual who incurs costs in employing another person to care for his or her spouse or civil partner, or a relative of their own or of their spouse or civil partner.
The incapacitated individual can be the claimant themselves, if he or she is the one who incurs the relevant cost.
The relief available, where the relevant conditions are met, is given by way of a deduction and is equal to the lesser of the cost incurred by the claimant and €75,000.
This relief cannot however be claimed where the person employed to take care of the incapacitated person is the same individual in respect of whom the claimant receives either the incapacitated child or dependent relative tax credits.
Finally, it is important to note that the cumulative relief available to individual taxpayers cannot exceed the total amount required to reduce his or her income tax liability to nil.
103. Deputy Peadar Tóibín asked the Minister for Finance the number of legal cases taken against his Department in each of the past ten years and to date in 2023; and the costs associated with same in each of those years. [45396/23]
Amharc ar fhreagraIt is not possible to provide this information requested in the time available because the Minister for Finance is named as a party on a large number of proceedings which seek damages from the State, without being directly involved in the running of the litigation in circumstances where another Minister may take the leading role in respect of providing instructions on the issue. We do not have records of all cases naming the Minister for Finance. In many cases, we are not consulted even though the Minister for Finance is a party, where another Minister is the lead defendant and provides instructions. There is an (erroneous) assumption in some legal circles that the Minister for Finance should be named as a defendant whenever damages (or costs) are being sought from the State.
The Chief State Solicitor's Office or the State Claims agency, as Government solicitor absorb the cost of representing the Department.
A list of particularly sensitive litigation relevant to the Minister for Finance is prepared on a regular basis by the Office of the Attorney General. As of July 2023, there are six ongoing cases included in the list of sensitive litigation for which the Minister for Finance is the primary respondent/defendant.
104. Deputy Michael Creed asked the Minister for Finance the rationale for the €80,000 threshold with regard to the introduction of mortgage interest relief in Budget 2024; and if he will make a statement on the matter. [45409/23]
Amharc ar fhreagraAs the Deputy will be aware, this Government is acutely conscious of the impact of rising interest rates and mortgage costs on many taxpayers. It is for this reason, I introduced a temporary one-year, targeted form of mortgage interest tax relief as part of Budget 2024.
Mortgage interest tax relief will be available to taxpayers in respect of their principal private residence in the State where the outstanding mortgage balance was between €80,000 and €500,000 on 31 December 2022 and the taxpayer is compliant with Local Property Tax requirements.
The relief will be available at the standard rate of income tax in respect of the increase in the interest paid between the calendar year 2022 compared to the calendar year 2023. The value of the relief will be equal to the lesser of 20 per cent of the increased interest paid or €1,250, applying on a per property basis. Thus, maximum relief of €1,250 per property.
To claim the mortgage interest tax relief, the taxpayer must file a tax return with Revenue. The relief will operate by way of a credit offset against the taxpayer’s income tax liability in 2023. It is anticipated that the relief may be claimed in early 2024.
As the Deputy will appreciate it is not possible or desirable for the Government to alleviate the full impact of the increased interest rates for all mortgage holders. Some mortgage holders, will be in a much stronger position and will have the capacity to absorb the impact of the recent increases in mortgage rates. I believe the parameters of the relief that I have set are appropriate and sufficiently targeted.
105. Deputy Alan Kelly asked the Minister for Finance the number of additional WTE staff by grade that would be required if the Revenue Commissioners PAYE hotline was operated until 4.30pm between Mondays and Fridays. [45413/23]
Amharc ar fhreagraI am advised by Revenue that the changing demands of taxpayers and the need to provide an efficient and cost-effective service has resulted in the overall mix and nature of its service channels evolving.
To that end, Revenue provides a full range of online services for taxpayers to manage their tax affairs, including an online communications channel through the MyEnquiries system, which are available 24/7, are easy to use and are fully secure.
Revenue currently has a total of 334 staff providing the full range of PAYE services and allocates resources to best meet the demand of the various services required. The current arrangement whereby the phone service is available from 9:30am to 1:30pm each day provides the optimum allocation to deal with the volume of submissions through post and online as well as through the appointment and phone service.
Outside of these hours a recorded message advises callers of the location on the Revenue website of where information of particular relevance to PAYE taxpayers is held including informational videos on a range of topics including how to complete an Income Tax Return. The recorded message also provides information on Revenue’s online ‘myAccount’ facility that enables PAYE taxpayers to view and amend their records as well as information of the online ‘MyEnquiries’ portal through which they can securely submit and track the progress of written inquiries.
The model of both the PAYE phone service and online service is carefully monitored and re-calibrated as required and reflects both demand levels from PAYE taxpayers and the need to provide an efficient and cost-effective service.
106. Deputy Cian O'Callaghan asked the Minister for Finance if he will engage with GPs who will be negatively affected by the recent guidelines issued by the Revenue Commissioners in relation to tax treatment; the steps he will take to support small GP practices and partnerships who are at risk of closing due to these guidelines; if he will work with the Department of Health to resolve this; and if he will make a statement on the matter. [45437/23]
Amharc ar fhreagra107. Deputy Jackie Cahill asked the Minister for Finance the reason the Revenue Commissioners plan to prohibit GMS income being mandated to partnerships or employers, and instead each GMS list holder will have to declare such income in their annual income individually as GPs; the rationale behind this decision; and if he will make a statement on the matter. [45441/23]
Amharc ar fhreagraI propose to take Questions Nos. 106 and 107 together.
My Department and Revenue have, for some time, been aware of issues arising from contractual arrangements within the General Practitioner (GP) community whereby some GPs assign income under their General Medical Services (GMS) contract to a GP practice in which they are a partner or an employee. The income is then treated by the parties as if it were income of the practice for tax purposes rather than income of the GP.
Revenue issued a guidance note to tax practitioners through the Tax Administration Liaison Committee (TALC) in July of this year clarifying the correct tax treatment of GMS income under tax legislation. That guidance confirmed there would be a transitional period for compliance with existing tax law, until 1 January 2024. Revenue will soon publish supplementary guidance on this matter. Although the guidance is being widely reported as a proposed tax change, I would note that it does not, in fact, introduce a change to the tax treatment of GPs. Instead, it simply clarifies the existing legal and administrative position.
In accordance with Section 58C of the Health Act, a GMS contract is between the HSE and an individual GP. My Department and Revenue understand that, as such, the HSE does not enter into GMS contracts with a medical practice, whether the practice is structured as a partnership or a company. This means that, as a matter of law, income under a GMS contract belongs to the GP who entered into the contract with the HSE - that position does not change because a GP mandates the payment of GMS income to a medical practice. This legal position was confirmed in a recent Tax Appeals Commission (TAC) determination issued in January 2022 (01TACD2022).
A GP who holds a GMS contract is, under tax legislation, a chargeable person as regards income arising under the GMS contract and should report that income under the self-assessment system. The GP is entitled to claim a credit for Professional Services Withholding Tax deducted by the HSE on GMS payments.
There is no legal basis to treat income arising under a GMS contract entered into between a GP and the HSE as if it were income arising under a contract between the HSE and the medical practice in which the GP is a partner or an employee. The approach being taken is intended to ensure that the tax treatment of GMS income reflects the contractual position.
My Department has not undertaken consultations with GPs on this issue, however, as previously indicated, Revenue have been advised on the matter by tax practitioners through the Tax Administration Liaison Committee. In an effort to find a solution to this issue, discussions have taken place between officials in my Department, Revenue, the HSE and the Department of Health. Although my Department and Revenue are conscious of the difficulties being experienced by GP practices, they must be cognisant of existing legislation. Furthermore, it would not be appropriate to make changes to tax legislation to accommodate contracts and practices of a particular sector of the economy where they can be changed by the agreement of the participants.
Given the core issue concerns the contractual arrangements involving GPs, there may be scope for the Department of Health and the HSE to examine the issue from a contractual viewpoint.
As it currently stands, the relevant tax policy and legislation remain unchanged, however, to assist GPs and medical practices in complying with their obligations under existing tax law, Revenue is allowing a transitional period to 1 January 2024 and is preparing further guidance to assist GPs in applying the correct tax treatment in respect of their GMS income.
108. Deputy Martin Browne asked the Minister for Finance if any progress has been made to make insurance for thatched properties more affordable; if he will outline the meetings that have taken place between his Department and the insurance sector on the matter; if there are any further actions his Department considers may be open to it to address the high cost of insurance apart from promoting fire prevention initiatives among thatched property owners; and if he will make a statement on the matter. [45566/23]
Amharc ar fhreagraAs the Deputy is aware, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products. This is set out in the EU framework for insurance – the Solvency II Directive – and limits the actions that Government can take in relation to insurance for thatched properties. Nevertheless, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups across the State.
The whole-of-Government approach being taken through the Action Plan for Insurance Reform sets out 66 actions, which aim to improve both the cost and availability of this key financial service. The latest Action Plan Implementation Report shows that of the vast bulk of these are either initiated or ongoing.
Separate to this, the Department of Housing, Local Government and Heritage (D/HLGH) earlier this year produced a report on fire safety in thatched structures. This found a high incidence of fire in thatched buildings in Ireland and highlighted research indicating that the great majority of such events stem from a small number of causes, particularly solid fuel stoves. It outlined a number of relatively straightforward measures which should help substantially mitigate this risk. If the incidence of fire can be reduced, it is reasonable to expect that the improved risk profile will feed through to lower premiums. As the Deputy will be aware, this fire risk to thatched properties has consistently been highlighted by insurers as a barrier to providing possible cover. Therefore, fire prevention remains the most impactful way to improve the insurance situation for the owners of such properties.
My officials have disseminated this information directly to the relevant stakeholders in the insurance industry, in order to help develop a more balanced view of providing cover for thatched buildings. In addition, D/HLGH is currently developing public guidance based on the report findings, which will assist owners of thatched properties to reduce the identified risk posed by fire. Furthermore, it also operates a number of schemes which are designed to help with conservation works to thatched buildings and other historic structures for the broader benefit of local communities and the wider public. Enquiries in relation to these grants should be directed to that Department.
In addition, the Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Carroll MacNeill, continues to engage with various stakeholders on this issue. It was discussed during her engagement with insurance CEOs earlier this year, and will feature in her upcoming round of meetings with the main firms in the Irish market. Minister of State Carroll MacNeill also met with Minister of State Noonan from D/HLGH and his officials directly to discuss the matter in May.
In conclusion, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland, including for thatched properties, remains a key policy priority for this Government.
109. Deputy Jennifer Whitmore asked the Minister for Finance the amount of funding set aside, from windfall taxes, for the Climate Action Fund for 2024-2026, as referenced in the Summer Economic Statement 2023, including the amount ringfenced for nature restoration; and if he will make a statement on the matter. [45633/23]
Amharc ar fhreagraIn the Summer Economic Statement 2023 it was announced €2¼ billion in windfall tax receipts would be made available to support the delivery of infrastructure projects over the period 2024 to 2026, as well as to make a contribution to the Climate Action Fund for nature restoration. This approach makes use of these potentially transient revenues to build long-lasting improvements to our economy and our society.
The specific allocation of such funding is a matter for my colleague the Minister for Public Expenditure, NDP Delivery and Reform.
110. Deputy Jennifer Whitmore asked the Minister for Finance for a timeline for the drafting and introduction of the legislation establishing the Climate and Nature Fund, as detailed in the Budget 2024; and if he will make a statement on the matter. [45637/23]
Amharc ar fhreagraI understand that the Deputy is referring to the Infrastructure, Climate and Nature Fund, which I announced on Budget day.
The Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill will establish this fund. The Bill is included on the list of bills for publication in the Government’s autumn legislation programme.
Following Government approval on 10 October, the General scheme was published on my Department’s website on 12 October. I have referred the General Scheme to the Chair of the Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach regarding Pre-legislative Scrutiny and officials have referred the General Scheme to the Office of the Parliamentary Counsel to begin the drafting of the legislation.
111. Deputy Emer Higgins asked the Minister for Finance whether an employer can provide part of an employee's annual bonus as a voucher under the small benefit exemption; and if he will make a statement on the matter. [45647/23]
Amharc ar fhreagraAn employer may provide up to two small benefits, with a combined value of both provided benefits not exceeding €1,000 in a year of assessment, which will be exempt from Income Tax, PRSI and USC, provided all of the conditions contained within section 112B of the Taxes Consolidation Act 1997 are satisfied. This relief is commonly referred to as the “Small Benefit Exemption”.
The main conditions for the relief are as follows -
• the incentive is provided in the form of a voucher or other non-cash item;
• where the incentive provided is in the form of a voucher, this voucher must only be for the purchase of goods or services and must not be capable of being exchanged in part or in full for cash;
• the total value of the incentive(s) does not exceed €1,000; and
• the incentive does not form part of a salary sacrifice arrangement.
If more than two incentives were issued in a year of assessment, it is only the first two which could qualify for the Small Benefit Exemption.
The facts and circumstances of each case must be considered on their own merits when determining if the Small Benefit Exemption may apply. However, where an employee gives up a right to an entitlement (in this case a bonus) it may, fall within a salary sacrifice arrangement and therefore the Small Benefit Exemption may not apply.
Where all of the conditions are not satisfied, the Small Benefit Exemption does not apply and the benefit is subject to tax in the usual way, in accordance with section 112 TCA 1997.
Further information on the Small Benefit Exemption is available on Revenue’s website, available at the following link - www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx
112. Deputy Louise O'Reilly asked the Minister for Finance if he is aware of any mechanism by which a person can improve their credit rating in the situation where their home was repossessed and where there was a default on their mortgage; and if he will make a statement on the matter. [45664/23]
Amharc ar fhreagraThe Central Credit Register is established by the Central Bank under the Credit Reporting Act 2013 (the Act). Under the Act credit information providers are required to provide factual information in relation to loans and loan applications, which is then used to provide credit reports to borrowers and lenders.
The Deputy may wish to note that the Central Credit Register does not produce credit scores or credit ratings. Also, the Central Bank does not decide if a loan application is approved or not. Such decisions are commercial matters for individual lenders who make these decisions based on their own credit policies which may vary from lender to lender and may take different information and factors into account.
In line with the provisions of the Act, performance information in relation to a loan is retained on the Central Credit Register for a period of 5 years at any given time. Where all liabilities under the loan agreement have been discharged, the credit information is held on the Central Credit Register for a period 5 years after the loan is discharged.
Borrowers have rights under the Act, including the right to a free credit report; a right to request an amendment to information if they believe that information is incorrect, incomplete or not up to date; a right to place a Notice of Suspected Impersonation on their credit report, and a right to place an Explanatory Statement on their credit report. The Explanatory Statement may be up to 200 words and relate to any information held on the Central Credit Register which relates to the credit information subject.
Further information including a factsheet in exercising borrower rights is available at www.centralcreditregister.ie.
113. Deputy Louise O'Reilly asked the Minister for Finance when the public consultation on the National Payments Strategy will open; and if he will make a statement on the matter. [45670/23]
Amharc ar fhreagraI published the terms of reference for the National Payment Strategy (NPS) on 27 June 2023. Since then a team in my Department has commenced this work. The Strategy will take account of the changing payment landscape and will consider ongoing legislative developments at EU level, including proposals on instant payments, payment services, legal tender and the Digital Euro. It will be underpinned by an extensive public consultation process including engagements with key stakeholders.
The NPS will examine and analyse fraud, which is a critical issue and something that was not considered at the time of the 2013 National Payments Plan. While EU legislation governs much of the payments area it is important that the NPS examines and analyses payment fraud to see if it can identify further domestic measures that could be taken to prevent fraud.
On access to cash, the NPS work will consider the likely evolution of cash usage and how the criteria for reasonable access to cash to be provided for in the Access to Cash legislation should evolve as cash usage changes in the future. The NPS work will look at the acceptance of cash and consider if legislation should be introduced to require certain sectors or sub-sectors to accept or facilitate the acceptance of cash. It will also consider whether it should be the policy of the Government to require public service to accept or facilitate the acceptance of cash.
On acceptance of cash, you will remember that I wrote to my Government colleagues on 20 September 2023 to request them that public bodies within their aegis maintain acceptance of cash as a payment method, where is currently exits, until the NPS reports.
The NPS team is currently drafting the consultation paper following extensive research and consultation with key stakeholders (the Central Bank of Ireland, the European Commission, and other government departments etc.). The consultation paper will be published in Q4 on an interactive portal, it will be open for eight weeks and close in Q1 2024. My Department will continue to engage with a wide range of stakeholders on the consultation response and on the development of the Strategy. The estimated publication for the Strategy itself is 2024.
114. Deputy Patricia Ryan asked the Minister for Finance the number of mortgages, previously classed as performing loans, which have fallen into arrears since the beginning of the interest rate increases to date; and how many of those were the subject of previous restructuring, split/shelved portion mortgages or previous alternative payment arrangements. [45713/23]
Amharc ar fhreagraThe Central Bank of Ireland publishes quarterly statistics on mortgages. The most recent publication was on 15 September last and provides mortgage statistics for the second quarter of 2023. These statistical releases are publicly available on the Central Bank of Ireland webpage.
According to the Central Bank data, the total number of Principal Dwelling Household (PDH) and Buy to Let (BTL) mortgage accounts held by banks and non-bank entities currently in arrears stood at 56,930 at end June 2023. This represents a decrease of 1,129 accounts in annual terms, mainly driven by falls recorded in accounts in long term arrears.
The total number of PDH and BTL mortgage accounts classified as restructured, held by banks and non-bank entities, stood at 68,060 accounts at end June 2023. This represents a decrease of 9.4% in annual terms.
I am informed by the Central Bank of Ireland that data on account flows with respect to restructures, split mortgages or alternative payment arrangements are not available.
115. Deputy Louise O'Reilly asked the Minister for Finance if there has been any analysis of the success of the Budget 2023 measure to remove VAT on AEDs; if there is any data on the number of AEDs purchased in 2023 since the removal; if cost reductions have been passed onto consumers; and if he will make a statement on the matter. [45731/23]
Amharc ar fhreagraI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible, using information provided in VAT returns, to identify the number of AEDs purchased since the change in VAT rate or the price paid by consumers for them.
116. Deputy Kathleen Funchion asked the Minister for Finance if Budget 2024 reduced the VAT rate for print maps or eMaps to 0% given that the VAT rate on eBooks and audio books was reduced to 0%; and if he will make a statement on the matter. [45750/23]
Amharc ar fhreagraThe Deputy should note that no decision was made in Budget 2024 to reduce the VAT rate on print maps or electronic maps to 0%.
As the Deputy may be aware, the temporary VAT rate of 9% introduced in July 2011 and again in November 2020 for the tourism and hospitality sectors included certain printed matter such as brochures, maps, and programmes. Consequently, when this VAT rate reverted to the 13.5% rate from 1 September 2023, it also changed the VAT rates on maps in printed form to this higher rate.
A 9% VAT rate has applied on a permanent basis to all electronic publications, including electronic maps, from 1 January 2019.
