Michael Cahill
Ceist:177. Deputy Michael Cahill asked the Minister for Finance the details of the tax initiatives he is putting in place to support farm succession; and if he will make a statement on the matter. [6922/25]
Amharc ar fhreagraTax Collection
Ceisteanna (177)
Freagraí scríofa
As the Deputy is aware, there are currently a substantial range of tax measures in place which support farm succession.
These include Capital Acquisitions Tax (CAT) agricultural relief, which is available on certain gifts and inheritances of agricultural property. The primary policy rationale for agricultural relief is to promote the intergenerational transfer of family farms and ensure they continue to be actively farmed.
Capital Gains Tax retirement relief is available in respect of the intergenerational transfer of farm trades – the scope of relief available is dependent on the date of the transfer, the individual’s age at the date of the transfer and the aggregated value of the assets transferred.
In regards to Income Tax, a succession farm partnership tax credit is available by way of an annual tax credit worth up to €5,000 per annum for a period of five years. An enhanced stock relief is available at the rate of 50% for farmers who are partners in a “Registered Farm Partnership”. There is also an enhanced rate of stock relief for young trained farmers of 100%. Each relief is subject to certain conditions being satisfied by the claimant.
Stamp Duty reliefs to support farm succession include an exemption from Stamp Duty on certain transfers of land to young trained farmers and “consanguinity relief”, which reduces from 7.5% to 1%, the Stamp Duty payable on certain transfers of land between family members.
An independent Commission on Generational Renewal in Farming is examining all the factors that contribute to the current age demographics in the farming sector and will report to the Minister for Agriculture before the end of June this year.
Any further tax initiatives that may be proposed to support farm succession will be examined in the context of tax expenditure guidelines and must be balanced against competing demands.
Ambulance Service
Ceisteanna (178)
Mark Wall
Ceist:178. Deputy Mark Wall asked the Minister for Finance if he is aware that emergency vehicles are being taken off ambulance officers given the importance of these vehicles to response times; the number of times these officers have been able to respond to incidents within their own communities, given that an issue with benefit-in-kind is being quoted as the reason; the efforts he had made to resolve the matter; and if he will make a statement on the matter. [7008/25]
Amharc ar fhreagraFreagraí scríofa
An employee is chargeable to tax on the benefit-in-kind (BIK) arising where, by reason of his or her employment, a vehicle is made available (without a transfer of ownership) to him or her and the vehicle is, in the tax year, available either for that individual’s private use or to his or her family or household.
Sections 121 and 121A of the Taxes Consolidation Act 1997 (TCA 1997) outline the tax treatment applicable where an employer makes a car or a van available to an employee for his or her private use. Where such a benefit is provided, the employer is required to include that notional payment as part of the employee’s emoluments and to deduct tax through the PAYE system accordingly. There has been no change to the rules relating to the BIK charge which is applicable on employer-provided vehicles, or the pool car exemption available in respect of same.
An employer makes a vehicle available to an employee through:
• the provision of the use of a vehicle, and
• covering any vehicle running costs (such as insurance and petrol) on behalf of the employee.
A vehicle which is included in a car or van pool for the use of employees of one or more employers is treated as not available for the private use of employees (i.e. not giving rise to a BIK charge) if, in the tax year, all of the following conditions are met:
• the vehicle is available to, and actually used by, more than one of the employees concerned,
• in the case of each employee, the vehicle is made available to him or her by reason of his or her employment,
• the vehicle is not ordinarily used by any one employee to the exclusion of the others,
• in the case of each of the employees concerned, any private use of the vehicle by him or her is merely incidental to his or her business use, and
• the vehicle is not normally kept overnight at or in the vicinity of any of the employees’ homes.
Where a vehicle is provided to an officer of the State (including an officer of a statutory body), such vehicle may be deemed to be included in a vehicle pool (and thus not give rise to a BIK charge) if:
• it is scheduled and verifiable that the officer is obliged to be ‘on call’ outside of his or her normal working hours to respond to situations giving rise to possible contravention of law,
• the officer is provided with a vehicle for this purpose during the periods concerned, and keeps the vehicle overnight at his or her home, and
• the vehicle would, but for the ‘on call’ obligation note above, be a pool vehicle.
Further information on the taxation of employer-provided vehicles, including details on the exemption available for car pools, is included in Tax and Duty Manual Part 05-01-01b, which is available at the following links:
• www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01b.pdf
• www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-company-cars/index.aspx
In conclusion, there has been no change in rules in relation to this BIK charge. However I am seeking more details from Revenue on the matter.
Tax Credits
Ceisteanna (179)
James O'Connor
Ceist:179. Deputy James O'Connor asked the Minister for Finance the timeline for the review of research and development tax credits; when it will commence; the steps along the review; his views on whether it is a key instrument in Ireland's competitiveness in an challenging global business environment with many competitors to Ireland on incentives including the UAE; and if he will make a statement on the matter. [7044/25]
Amharc ar fhreagraFreagraí scríofa
The Research and Development (R&D) corporation tax credit allows companies to claim a 30% tax credit in respect of expenditure incurred on qualifying R&D activities. The Research and Development (R&D) corporation tax credit is an important feature of the Irish Corporation Tax (CT) system. The primary policy objective is to increase business R&D in Ireland, as R&D can contribute to higher innovation and productivity. More broadly, the R&D corporation tax credit forms part of a suite of corporation tax measures that ensures Ireland remains an attractive location for both domestic and inward investment. The tax credit forms part of Ireland’s corporation tax offering aimed at attracting FDI and building an innovation-driven domestic enterprise sector.
As with all tax expenditures, the Research and Development corporation tax credit is regularly evaluated to assess its continuing relevance, cost, impact and efficiency. In line with my Department’s Tax Expenditure Guidelines, and as announced in Budget 2025, an evaluation of the R&D tax credit will take place this year. This is also in line with the commitment within the Programme for Government ‘Securing Ireland’s Future’, to examine options to enhance the Research and Development corporation tax credit, reward innovation and digitalisation and ensure Ireland has the global best in class incentive to encourage innovation by domestic and international companies. As part of the review it is intended that a public consultation will be conducted.
The R&D tax credit has grown and evolved since its first introduction in 2004, in response to business and stakeholder feedback. It is important that the R&D regime continues to evolve in light of international tax changes, ensuring that Ireland’s R&D supports remain competitive in a globalised world. Recent Finance Acts have enhanced the regime, to the benefit of all qualifying claimant companies. For example:
• Finance Act 2022 introduced changes to the manner in which the R&D tax credit is claimed to ensure compatibility with Pillar Two rules. It also provided for an amount of the credit, initially up to a maximum of €25,000, to be payable in full in year one instead of being spread over 3 annual payments. The first year payment threshold was increased to €50,000 in Finance (No.2) Act 2023 and further increased to €75,000 in Finance Act 2024. These increases can provide a cash-flow benefit and are aimed at encouraging more companies to engage with the R&D corporation tax credit regime.
• Finance (No.2) Act 2023, also increased the rate of the credit from 25% to 30%, providing an increase in support to all claimant companies, thus encouraging increased engagement with the regime.
The review undertaken this year will inform any further considerations for enhancements to the R&D credit, to ensure that Ireland remains attractive against global competition as a location for quality employment and investment in R&D.
Tax Residency
Ceisteanna (180)
James O'Connor
Ceist:180. Deputy James O'Connor asked the Minister for Finance his position on the OECD tax agreement following the statements of President Trump on warning to countries that implement it against US companies; if the agreement will be review by the Government shortly; the timeline for when the matter will be discussed with his EU Colleagues on the Economic and Financial Affairs Council; if he plans to make a statement in relation to same before the St Patrick's Day visits by Government to the USA; and if he will make a statement on the matter. [7045/25]
Amharc ar fhreagraFreagraí scríofa
I have taken note of the Presidential Memorandum on the OECD Global Tax Deal, the concerns raised by the new US administration in relation to the OECD tax agreement and their commitment to examine the current situation in relation to taxation globally over the coming months.
Ireland signed up to the 2021 agreement, at the OECD Inclusive Framework on BEPS, of a two-pillared solution as a pragmatic and sensible approach to address global uncertainty and we remain committed to that process.
Through the OECD agreement we are collectively trying to create a stable global tax framework that is fit for the 21st century and provide the positive conditions and long term certainty for businesses and investors to prosper and grow.
Continued cooperation globally is critical to avoid fragmentation and achieve those outcomes. It will be important for all parties to engage constructively over the coming months to examine mutually beneficial solutions to these issues and we continue to lend our full support to such an approach through the EU, OECD and G20.
Significant work has been undertaken in recent years and it is incumbent on all participants to try to bridge remaining concerns, sustain the progress that has been made and avoid restarting negotiations from scratch.
I remain hopeful that pragmatic solutions can be found to address these issues and we will lend our support to such an approach through our engagement at the OECD. It will be crucially important to ensure that whatever way forward is agreed will ensure that minimum tax rules are applied consistently and maintains a level playing field globally.
This week I had a very positive and constructive engagement with my EU partners at ECOFIN where we agreed on the need to remain engaged with each other and the new US administration to resolve existing concerns through consensus and cooperation. I will continue to provide updates as developments arise.
Artificial Intelligence
Ceisteanna (181)
Sinéad Gibney
Ceist:181. Deputy Sinéad Gibney asked the Minister for Finance if his Department has taken advice in respect of the use of artificial intelligence, AI, within the Department; if any section of his Department currently makes use of AI; the purposes it is utilised for and costs associated with same; and if he has consulted with any consultancy firms in respect of the use of AI. [7051/25]
Amharc ar fhreagraFreagraí scríofa
I can confirm for the Deputy that the government approved Interim Guidelines for the Use of Artificial Intelligence (AI) in the Public Service in January 2024. I can confirm that my department follows these guidelines and that these guidelines were circulated to all staff within my department.
My department also follows guidance from the National Cyber Security Centre (NCSC) released in June 2023, entitled “Cyber Security Guidance on Generative AI for Public Sector Bodies”. The NCSC guidance recommended that new technology should only be adopted based on a clearly defined business needs following an appropriate risk assessment.
I can confirm that my department does not make use of any artificial intelligence tools or programs and has not consulted with any consultancy firms in respect of the use of A.I.
Insurance Industry
Ceisteanna (182)
Michael Fitzmaurice
Ceist:182. Deputy Michael Fitzmaurice asked the Minister for Finance if he can confirm if the Flood Insurance Bill 2021 has been enacted; and if he will make a statement on the matter. [7091/25]
Amharc ar fhreagraFreagraí scríofa
As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector.
As the Deputy may be aware, the Flood Insurance Bill 2021 was proposed by Deputy John Brady on 20 October 2021. On 15 June 2023, the Government moved a 12-month timed amendment for the Bill owing to a number of potentially significant legal, operational and economic concerns. Following the expiry of the timed amendment in June 2024, the Committee on Finance, Public Expenditure and Reform, and Taoiseach was required to, inter alia, consult with the European Central Bank (ECB) on the Bill. The Dáil was dissolved before this process could conclude.
The new Programme for Government- Securing Ireland’s Future, reinforces the Government’s commitment to protecting Ireland’s present and future generations by investing in climate adaptation measures to manage the impacts of extreme weather. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.
Recognising the long-term risk of climate change on insurers and insurability, the Department of Finance continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps. It is important that developments here align with those across the EU so the Irish market is not ‘out of step’ with others.
Finally, I and Minister of State Troy, along with our officials, will continue to engage on all aspects of insurance reform, including flood cover issues. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
Tourism Policy
Ceisteanna (183)
James Geoghegan
Ceist:183. Deputy James Geoghegan asked the Minister for Finance further to Parliamentary Question No. 398 of 5 February 2025, his views in relation to a tourism accommodation levy on short-term stays in paid accommodation in the context of the Dublin Taskforce recommendations; and if he will make a statement on the matter. [7106/25]
Amharc ar fhreagraFreagraí scríofa
My views in relation to a tourism accommodation levy on short-term stays in paid accommodation in the context of the Dublin Taskforce recommendation are broadly similar to those outlined by the Minister for Enterprise, Trade and Employment in his response to Parliamentary Question No. 398 of 5 February 2025. As the Minister indicated, there are wide range of considerations which need to be taken into account prior to considering such a levy, including who the levy should apply to - international or domestic visitors or both. Another issue would be whether such a levy should just be applied in Dublin, or should all Local Authorities be given the opportunity to apply such a levy.
I would, however, add that a tourism accommodation levy is not a matter I believe appropriate to my Department. It is an issue very much separate and distinct from our general taxation system. The purpose of a tourism accommodation levy would be to provide funding for local facilities and services in order to help attract more visitors and improve local amenities, amongst other things. The only way such monies could be allocated appropriately would be if it were collected locally. As a general rule, it is not possible to hypothecate funding for specific purposes when it is collected as part of the general taxation system.
In other Member States where city taxes and accommodation levies are applied, the levy is collected at local level, by Local Authorities, who oversee the collection and redistribution of funds for projects locally. If such a levy were to be introduced here, the same system should apply. In this regard, you should note for instance that the Scottish Government introduced a Visitor Levy in 2024, which will be collected by Local Authorities. The Welsh Government is also currently considering a similar proposal with again the collection likely to be carried out by Local Authorities if implemented.
In conclusion, this is an important issue which is being given due consideration at the moment and further engagement is required before any decision is made.
Fire Service
Ceisteanna (184)
John Lahart
Ceist:184. Deputy John Lahart asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he plans to address the retention challenges in the fire services, specifically as they relate to pension reforms; if he is considering reinstating the supplementary pension scheme or providing alternatives to support the financial wellbeing of those in uniformed services; and if he will make a statement on the matter. [6897/25]
Amharc ar fhreagraFreagraí scríofa
The Single Public Service Pension Scheme is a statutory Public Service Career-Average Defined Benefit Pension Scheme, established on 1 January 2013 under the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
The provisions of the Single Scheme are clearly set out in law and were enacted on 28 July 2012. All new-entrant public servants hired after 1 January 2013 are members of the Single Scheme. The introduction of the Single Scheme is the biggest change to public pensions since the formation of the State, and has been instrumental in ensuring the sustainability of the Public Service pension bill for decades to come, particularly in the context of rising public service employee numbers.
It should be noted that while career-averaging pension schemes are common across the public and private sectors, Defined Benefit schemes are no longer commonly available in the private sector, where Defined Contribution schemes are more common. It is generally agreed that Defined Benefit schemes are more beneficial for the employee, due to the fixed nature of benefits, which is an attractive feature of the Single Scheme.
While all public servants recruited after 2013 are enrolled in the Single Scheme, uniformed staff such as firefighters, members of An Garda Síochána and the Defence Forces, have certain enhanced benefits that other members of the Single Scheme do not have, in recognition of their earlier retirement age, such as additional early payment of scheme benefits. This enables them to accrue more Single Scheme benefits over the expected shorter public service careers in these roles. When uniformed staff reach their normal retirement age, they can retire at that earlier age and receive their occupational retirement benefits accrued at a higher rate, including their retirement lump-sum and the commencement of their pension benefit payments. These benefits are separate, and in addition, to any future entitlement that they may have to the State Pension (Contributory) administered by the Department of Social Protection.
A Supplementary Pension has never been a feature of the Single Scheme, nor was it ever envisaged that it would be.
Staff retention issues within individual public sector organisations are generally a matter for the employing organisation. My Department does not have any evidence, at this time, to indicate that the Single Scheme is contributing to staff retention issues across the public sector.
An increased mandatory retirement age of 62 for firefighters was introduced following the commencement of the relevant Part 11 provisions of the Courts, Civil Law, Criminal Law and Superannuation (Miscellaneous Provisions) Act 2024. This legislative change facilitates an increase in the number of years over which firefighters, and other Uniformed Accrual members, can accrue pension benefits, should they choose to do so. Individuals can continue to retire at age 55 or at any age up to 62 and avail of their lump sum and the commencement of their pension payment. This option is available to Uniformed Accrual members of the Single Schemey, as well as those in pre-existing public service pension schemes.