Written Answers Nos. 356-375
356. Deputy Neasa Hourigan asked the Minister for Finance the number and monetary value of investments held by the Ireland Strategic Investment Fund in companies which produce, export or sell weapons or dual-use items for a military purpose; and if he will make a statement on the matter. [1303/24]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) portfolio is constructed within the legislative framework set for it by the Oireachtas. ISIF has a Sustainable & Responsible Investment Strategy (S&RIS) which reflects a commitment to be a responsible investor as steward of public assets by protecting and enhancing both the long-term value of the ISIF and the reputation of the National Treasury Management Agency (NTMA) in how it delivers its mandate, as manager and controller of the ISIF. In this context ISIF operates an exclusion policy which is consistent with its statutory mandate, as amended from time to time. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation including the Cluster Munitions and Anti-Personnel Mines Act 2008 and, inter alia, exclusions on sustainable investment grounds including the exclusion of direct investment in companies that have been verified to be involved in the manufacture and testing of nuclear weapons or critical component parts.
Details of all ISIF direct holdings (as at 31 December 2022) are available in the NTMA’s published 2022 Annual Report. There is currently no accepted definition or tracking mechanism for companies that are engaged in varying degrees of production, export or selling of weapons or dual-use items for a military purpose which ISIF is aware of, as such ISIF is not in a position to identify a specific list of such companies.
357. Deputy Bernard J. Durkan asked the Minister for Finance the reason LPT charge is being deducted at source in the case of a person (details supplied); and if he will make a statement on the matter. [1307/24]
Amharc ar fhreagraLocal Property Tax (LPT) is a self-assessed tax where residential property owners are obliged to determine the amount of tax payable by selecting the appropriate valuation band for their property on their LPT return and making payment arrangements each year for the tax due.
Where LPT payment or deferral arrangements are not made, property owners may be subject to mandatory deduction at source from a salary or occupational pension, as provided for by sections 64, 65, 66 and 67 of the Finance (Local Property Tax) Act 2012 (as amended).
Revenue have advised that, while reminders issued to the person concerned in 2022 and 2023, the LPT return for the valuation period 2022-2025 remains outstanding and arrangements to pay were not made for the years 2022, 2023 or 2024.
In the absence of engagement, Revenue commenced deducting the estimated liability for 2022 and 2023, at source, from the person’s occupational pension. I can further advise that the deduction at source automatically carries forward for the year 2024 unless the person files their LPT return and elects an alternative method of payment. The person concerned should now arrange to file their LPT return for the period 2022-2025, so that the liability can be accurately quantified.
Revenue have further advised that the option to partially defer payment of the liability for 2024 may be available for the person concerned. Further details in relation to deferral of LPT can be found on the Revenue website via the following link: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx. Revenue will make contact with the Deputy’s Office in the coming days in that regard.
358. Deputy Catherine Murphy asked the Minister for Finance if he met the CEO of a company (details supplied) during his recent visit to the west coast of the United States. [1355/24]
Amharc ar fhreagraDuring my visit to the West Coast of the United States, I did not meet with the CEO or any other representative of Visa.
I did meet with key IDA client companies across the technology, internet and pharma sectors and participated in Enterprise Ireland engagements focused on healthcare and technology. In addition, I had a series of appointments in the Los Angeles area related to creative industries and worked as well with Screen Ireland on those.
The core purpose of the visit was to highlight the importance of the two-way trade and investment relationship between Ireland and the United States, and to meet with a number of companies in Silicon Valley that have a long-standing and significant presence in Ireland.
359. Deputy Pearse Doherty asked the Minister for Finance the number of residential units and number of persons subject to the 10% rate of stamp duty with respect to the acquisition of certain residential property where a person acquires at least ten such units during any 12-month period, in each of the years 2022 and 2023, respectively; and the total value of said stamp duty paid in each of the years 2022 and 2023, respectively. [1477/24]
Amharc ar fhreagraThe application of the 10% rate of stamp duty to certain acquisitions of residential property is provided for in section 31E of the Stamp Duties Consolidation Act 1999, as introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2021.
I am advised by Revenue that, based on returns for the period since the commencement of the Section, the available information for 2021, 2022 and 2023 is as shown in the table below. The data is provisional and may be subject to revision.
It is not currently possible to determine the number of newly built properties in respect of which the 10% rate of stamp duty tax has been paid. In some cases it may have been charged on the sale of second hand properties or properties sold by one institutional investor to another such investor.
|
Stamp Duty Section 31E
|
10% Duty payable (€m) |
Number of Purchasers* |
Number of Properties |
|
2021 |
4.7 |
16 |
187 |
|
2022 |
14.3 |
15 |
395 |
|
2023 |
22.1 |
16 |
623 |
*Where an entity purchases multiple properties on multiple stamp duty returns in a year, they are counted once only.
361. Deputy Richard Boyd Barrett asked the Minister for Finance if the help-to-buy scheme will be extended to previous home owners who can demonstrate a housing need which they cannot meet for reasons of breakdown of a relationship, insolvency and so on or whether there is any other scheme available to help with a purchase deposit for this cohort; and if he will make a statement on the matter. [1550/24]
Amharc ar fhreagraSection 477C of the Taxes Consolidation Act 1997 (TCA) requires that applicants for the Help to Buy (HTB) scheme must be first-time purchasers, which is defined as:
" 'first-time purchaser' means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"
There are no exceptions to the HTB definition of first time purchaser. This includes circumstances where there is more than one person involved in the purchase or building of a new home. The intention behind this is to target the tax relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously.
As with all tax incentive schemes, there will always be individuals who do not meet the eligibility criteria. In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
I have no plans at present to extend HTB eligibility to non-first-time buyers.
In relation to taxation measures there are no other incentives or reliefs available in respect of the details provided. Queries in respect of the details of any additional housing supports are a matter for the Minister for Housing, Local Government and Heritage.
362. Deputy Denis Naughten asked the Minister for Finance the reason the PRSI record for the self-employed for 2022 has not been passed on to the Department of Social Protection; the reason for this delay; if this has happened to other PRSI contributors; and if he will make a statement on the matter. [1574/24]
Amharc ar fhreagraI am advised by Revenue that the Department of Social Protection (DSP) requests a file of the Class S contributions from Revenue at the end of December each year, after the self-employed return filing deadline.
Revenue has confirmed to me that, while there was a technical issue which resulted in a slight delay in producing the file for the 2022 tax year by the end of December 2023, impacting self-employed contributors only, the issue has now been resolved and the first file of contributions for the 2022 year has been provided to DSP.
363. Deputy Pearse Doherty asked the Minister for Finance how the introduction of VAT refund orders under section 103 of the Value-Added Tax Consolidation Act 2010 interacts with the VAT Directive where a minimum rate of VAT is required in a specific sector or categories of goods and services; and if he will make a statement on the matter. [1585/24]
Amharc ar fhreagraThe application of VAT to goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. The EU VAT Directive provides a common framework of rules and principles which are to be applied across the EU by the various Member States.
The VAT Directive also provides that Member States may be permitted to maintain certain historic national arrangements, but only provided these are not expanded. On this basis, Ireland maintains a number of refund orders, which mostly originate from the 1970s and 1980s. Section 103 of the Value-Added Tax Consolidation Act 2010 is the provision in national primary legislation which relates to such orders. As with all national VAT law, the statutory provision is subject to the relevant rules and principles of EU VAT law which, on this matter, include the EU restriction on any expansion of the historic arrangements.
Maintenance of the historic refund orders does not interact with the EU rules on minimum VAT rates.
364. Deputy Eoin Ó Broin asked the Minister for Finance the number of electric vehicles licenced, by county, for 2023, in tabular form. [1613/24]
Amharc ar fhreagra365. Deputy Eoin Ó Broin asked the Minister for Finance the number of vehicles licenced, by county for 2023, in tabular form. [1614/24]
Amharc ar fhreagraI propose to take Questions Nos. 364 and 365 together.
I am advised by Revenue that the total number of VRT Category A registrations by county for 2023 is set out in the following table.
|
County |
Total Registrations |
Electric Vehicle Registrations |
|
Carlow |
1,575 |
217 |
|
Cavan |
2,020 |
181 |
|
Clare |
3,516 |
444 |
|
Cork |
17,270 |
2,474 |
|
Donegal |
5,155 |
336 |
|
Dublin |
78,647 |
12,079 |
|
Galway |
7,780 |
943 |
|
Kerry |
3,269 |
321 |
|
Kildare |
7,156 |
1,362 |
|
Kilkenny |
2,486 |
289 |
|
Laois |
1,883 |
227 |
|
Leitrim |
710 |
66 |
|
Limerick |
4,984 |
627 |
|
Longford |
1,007 |
78 |
|
Louth |
4,431 |
519 |
|
Mayo |
3,167 |
260 |
|
Meath |
6,423 |
1,137 |
|
Monaghan |
1,714 |
112 |
|
Offaly |
1,717 |
180 |
|
Roscommon |
1,721 |
131 |
|
Sligo |
1,509 |
195 |
|
Tipperary |
3,938 |
400 |
|
Waterford |
3,590 |
435 |
|
Westmeath |
2,460 |
323 |
|
Wexford |
3,709 |
545 |
|
Wicklow |
3,675 |
982 |
|
Total |
175,512 |
24,863 |
367. Deputy Michael Creed asked the Minister for Finance given the European Court of Justice ruling in 2022 to bar public transparency on beneficial ownership and the international consortium of investigative journalists findings from their “Cyprus Confidential” investigations showing clear evidence of money laundering and EU sanction evasions by Russian oligarchs in Cyprus, the initiatives envisaged at a European Union-level to counteract this; and if he will make a statement on the matter. [1653/24]
Amharc ar fhreagraEU sanctions have a direct effect in all Member States of the EU, and are legally binding on all natural and legal persons. Ireland has strongly supported sanctions in response to Russia’s unjust and illegal invasion of Ukraine in February of 2022, while also consistently emphasising the importance of effective implementation. Twelve packages of sanctions have been agreed by the EU to date. Recent measures have had a strong focus on combatting circumvention.
In response to the findings of the ‘Cyprus Confidential’ report, the Government of the Republic of Cyprus has launched a probe into the investigation’s findings, in addition to its on-going work to establish an independent body to investigate financial crimes and sanctions evasion.
Under the EU’s Fourth Anti-Money Laundering Directive, EU Member States are required to create centralised registers of Beneficial Ownership information – that is, information on those who ultimately own or control corporate and other legal entities and trusts. This requirement has been met by the establishment of a number of registers in Ireland including:
• Register of Beneficial Ownership of Companies and Industrial and Provident Societies
• Central Register of Beneficial Ownership of Trusts, operated by Revenue
• Register of Beneficial Ownership of Certain Financial Vehicles, operated by the Central Bank of Ireland.
• There are a variety of degrees of access to the information held on the Registers, with competent authorities and law enforcement officials granted the widest access, while ‘designated persons’ (i.e. those having anti-money laundering obligations) may access information when conducting customer due diligence. Access by members of the general public is based upon having a demonstrable ‘legitimate interest’.
• Those subject to these filing obligations are also obliged to hold this beneficial ownership information locally and make it available to competent authorities and law enforcement agencies and to ‘designated persons’ when conducting customer due diligence.
• In addition, the Ireland Safe Deposit Box, Bank and Payment Accounts Register (ISBAR), operated by the Central Bank of Ireland, commenced collection of information from credit institutions in 2023. This register holds information on the ownership of accounts identifiable by IBAN and on safe deposit boxes held by credit institution.
• Access to this Register is limited to the following agencies from May 2023:
• The Financial Intelligence Unit (FIU) of An Garda Síochána;
• Other officers of An Garda Síochána engaged in the prevention, detection, investigation or prosecution of a serious criminal offence or supporting a criminal investigation concerning a serious criminal offence;
• The Criminal Assets Bureau (CAB); and
• The Revenue Commissioners, for the purposes of fulfilling their obligations on administrative cooperation in the field of taxation.
• Of relevance also is new draft EU anti-money laundering legislation, work on which has taken place between EU Member States, the European Parliament and European Commission throughout 2023. This legislation includes revisions to the beneficial ownership obligations outlined above. Agreement on the remaining elements is expected to be reached in the first half of 2024.
369. Deputy Louise O'Reilly asked the Minister for Finance if the Government still supports the Budget 2024 announcement to introduce a tax on e-cigarettes in Budget 2025; if the plans to introduce the measure in Budget 2025 will still go ahead; and if he will make a statement on the matter. [1786/24]
Amharc ar fhreagraAs the Deputy is aware, I announced in my Budget 2024 speech the intention to introduce a domestic tax on e-cigarettes and vaping products as part of this year’s Budget.
In light of public health interests, continuing delays to the revision of the Tobacco Products Tax EU Directive and the Programme for Government commitment to tax e-cigarettes and vapes, I instructed my officials to begin scoping the introduction of a domestic tax regime for these products. Considerable preparatory work is required by my Department and the Revenue Commissioners in drafting the legislation to underpin this tax and this work is ongoing. It is fundamental that definitions of e-cigarette products included in excise legislation are clear and explicit, so as not to allow for any ambiguity. It is proposed that the legislative basis for the tax will be introduced in Finance Bill 2024 which will enable the collection of the tax in 2025.
370. Deputy Violet-Anne Wynne asked the Minister for Finance if the appeal hearings for the primary medical certificate have recommenced as planned at the end of 2023; and if he will make a statement on the matter. [1851/24]
Amharc ar fhreagraAppeal hearings have recommenced since mid-December 2023.
I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health we have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. We have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
Finally you should note that I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
371. Deputy Paul Kehoe asked the Minister for Finance how many farmers were refused VAT exemptions for purchase of fixed equipment between 1 November and 31 December 2023; and if he will make a statement on the matter. [1879/24]
Amharc ar fhreagraPersons who engage solely in agricultural production activities are not obliged to register for Value-Added Tax (VAT) and can participate in the Flat-Rate Farmer's Scheme. This scheme is a simplification arrangement permitted under the EU VAT Directive, designed to reduce the administrative burden for farmers by allowing unregistered farmers to be compensated on an overall basis for VAT on inputs, while remaining outside the VAT system, thereby avoiding the burdens associated with registration and filing.
Unlike VAT registered businesses, unregistered farmers are not entitled to a deduction for VAT incurred on individual inputs used in their farming business. Instead, the flat-rate scheme permits them to charge and retain the flat-rate addition in order to compensate them, on an overall basis, for the VAT across all their inputs.
There are certain limited situations in which flat-rate farmers are specifically permitted to claim a refund of the VAT incurred by them on particular inputs. These are outlined in S.I No. 201/2012 - The Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012, which allows for refunds to be claimed on outlay incurred only on:
• the construction, extension, alteration or reconstruction of farm buildings or structures,
• the fencing, draining and reclamation of farmland, and
• the construction and/or installation of qualifying equipment for the purpose of micro-generation of electricity for use in a farm business.
• Outlay incurred for other purposes, such as the acquisition of fixed equipment, is not permitted under the Order. However, where the installation of fixed equipment requires the construction, reconstruction, or alteration of a farm building, the corresponding VAT incurred has been allowed in certain circumstances. Each repayment claim is assessed on its own merits. Claims that do not meet the conditions of the refund Order cannot qualify for a refund of the VAT.
• I am advised by Revenue that the scheme operates on a self-assessment basis, with claims submitted via Revenue’s Online Service (ROS) E-Repayments or MyAccount. Where a claim is subject to review, Revenue may return the claim to the claimant for further information.
• Claims can be fully approved, fully rejected, or partially approved where individual invoices within a claim may be refused.
• The following table gives the number of claims rejected in November and December 2023.
|
Month |
No. of claims rejected |
|
Nov-23 |
235 |
|
Dec-23 |
114 |
|
Total |
349 |
A claim may be fully rejected for numerous reasons including, but not limited to, the following: outside of 4-year VAT claim period, invoices submitted relate to items which do not qualify under the order, claimant has another trade and is above the threshold for VAT registration and incorrect supplier tax number provided.
In addition, a portion of a claim may be rejected at invoice level within the claim. Invoices may be rejected for numerous reasons including, but not limited to, the following: invoice details are lacking mandatory information, some items on the invoice are not payable under the order or invoices are being claimed in the incorrect period. In certain circumstances where an invoice has been rejected, the claim may be resubmitted with corrected claim details. Alternatively, the claimant may resubmit the invoice with an adjusted VAT amount removing non-allowable items.
Refusals of non-allowable items within a claim or invoice happen at line level and are not identifiable within Revenue’s systems and therefore statistics relating to specific items cannot be provided.
Revenue is obliged to administer this scheme in line with the relevant Order, providing flexibility where possible within the confines of the legislation. Any claimant aggrieved by a decision in relation to their claim may appeal directly to the Tax Appeals Commission (TAC) within 30 days of issue of that decision.
372. Deputy James Lawless asked the Minister for Finance if he will consider raising the maximum value of the help-to-buy scheme from €500 thousand to €550 thousand in order to allow for inflation costs and the rising cost of materials (details supplied); and if he will make a statement on the matter. [1983/24]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.An increase in the supply of new housing remains a priority aim of Government policy. HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not been previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
To end November 2023, (the latest data is available for) 44,523 HTB claims have been made, of which 90% of claims were for properties which did not exceed €450,000 in value.
A comprehensive independent review of the scheme was carried out by external consultants in 2022. While this review included a number of recommended amendments to the scheme, it did not recommend an increase to the €500,000 house price limit. Ultimately, following consideration of the review, the decision taken in Budget 2024, and subsequently implemented through Finance Act 2023, was to extend HTB until the end of 2025 without amending the house price limit.
It remains the case that, as with any tax expenditure, HTB will be kept under regular review. However, there are currently no plans to extend the scheme to properties valued at over €500,000.
373. Deputy Michael Healy-Rae asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his views on a matter (details supplied); and if he will make a statement on the matter. [56329/23]
Amharc ar fhreagraAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, a frequently used method of post-retirement pension adjustment for retirees public service pension schemes is known as ‘pay parity’. This method of pension adjustment was agreed by Government in 2017 to be used in relation to pre-existing (pre-2013) public service pension schemes. This was in the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which expired at the end of 2023.
Pensions in payment under the Single Public Service Pension Scheme do not use this method, and are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
Under the policy of pay parity, general round pay increases are passed on to pensions awarded under pre-existing public service schemes (pre-2013 pension schemes). Where applicable, salary increases awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
Confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
374. Deputy Jackie Cahill asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for an update on his work to ensure that retired members of An Garda Síochána retain pension parity in line with increases awarded to serving members of An Garda Síochána; and if he will make a statement on the matter. [56339/23]
Amharc ar fhreagraAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, a frequently used method of post-retirement pension adjustment for retirees public service pension schemes is known as ‘pay parity’. This method of pension adjustment was agreed by Government in 2017 to be used in relation to pre-existing (pre-2013) public service pension schemes. This was in the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which expired at the end of 2023.
Pensions in payment under the Single Public Service Pension Scheme do not use this method, and are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
Under the policy of pay parity, general round pay increases are passed on to pensions awarded under pre-existing public service schemes (pre-2013 pension schemes). Where applicable, salary increases awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
Negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
375. Deputy Jackie Cahill asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to ensure that members of An Garda Síochána who retired after 1995 on full service receive the same rate of pension as those who retired prior to 1995; and if he will make a statement on the matter. [56340/23]
Amharc ar fhreagraAs the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.
For all new entrants to the public service (including members of An Garda Síochána) on or after 6 April 1995 (the date of introduction of full social insurance for public servants who now pay Class A PRSI) and before 1 January 2013 (the date of introduction of the Single Public Service Pensions Scheme) pension payment comprises of three components:
1. A Public Service Occupational Pension payable by the public service employer;
2. Social Insurance benefit(s) payable, subject to eligibility, by the Department of Social Protection (DSP) and;
3. Where the Social Insurance benefit payable does not equate to the full rate of State Pension Contributory (SPC), an occupational supplementary pension may be payable by the public service employer subject to an individual meeting eligibility criteria.
An occupational supplementary pension seeks to make up the difference between the occupational pension which would have been payable had that pension not been integrated, and the occupational pension in payment when combined with any Social Insurance Benefits in payment. The payment of an occupational supplementary pension is not automatic and is subject to an individual meeting certain criteria.
