Written Answers Nos. 221-240
221. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of the introduction of an additional green rebate scheme where the licensed haulier can apply for a rebate of all the excise paid on the non-fossil fuel component of the diesel they have consumed, returned through a new green rebate scheme. [41506/24]
View answerAuto-diesel is liable to excise duty in the form of Mineral Oil Tax (MOT). MOT comprises a carbon and a non-carbon component with respective rates currently €169.96 and €425.72 per 1,000 litres, giving a total MOT rate of €595.68 per 1,000 litres. The Deputy has asked about an excise rebate for the non-fossil component of diesel which I am taking to mean the biofuel portion of fossil diesel/biofuel blends. Biofuels are currently fully relieved from the carbon component of MOT. The relief is not restricted to particular sectors or end-users, and it applies on a proportional basis to fossil diesel/biofuel blends, resulting in an effective MOT rate of €425.72 per 1,000 litres on the biofuel portion of auto-diesel.
In addition to the biofuel relief, the Diesel Rebate Scheme (DRS) is a further relief which provides a partial MOT rebate to licensed road haulage and passenger transport operators for auto-diesel used in qualifying vehicles: road haulage vehicles with a maximum permissible load of not less than 7.5 tonnes and M2 and M3 category passenger vehicles. Under the DRS, a partial rebate of MOT is available when the retail price of auto-diesel exceeds €1.23 per litre, inclusive of VAT. The rebate rate is capped at €75.00 per 1,000 litres and has remained at this level since October 2021. Taking into account the DRS and the biofuel relief, the effective MOT rate on the biofuel portion of auto-diesel blends is currently €350.72 per 1,000 for DRS qualifying operators.
I am advised by Revenue that the potential annual costs of introducing a further rebate scheme to fully relieve MOT for the biofuel portion of auto-diesel, used by DRS qualifying operators, are shown in the following table. These estimates take into account the MOT already relieved under the biofuel relief and the DRS, and are based on the latest volume data for the DRS. Details are provided firstly for all DRS claimants, i.e. qualifying road haulage and passenger transport operators, and secondly for claimants within the scheme identified as road haulage operators. These estimates do not assume any behavioural change, and it should be noted that the introduction of any additional scheme is highly likely to increase the number of claimants.
|
Biofuel content in auto-diesel |
Cost if applied to all DRS-qualifying operators |
Cost if applied to DRS-qualifying road haulage operators only |
|
Average 9% |
€ 20.16m |
€ 16.47m |
|
Each 1% increase |
€ 2.24m |
€ 1.83m |
It should also be noted that the introduction of any sector specific additional biofuel relief would constitute a State aid. In addition, the existing DRS operates in accordance with Articles 7.2 and 7.3 of the Energy Tax Directive (ETD) which allows for a differentiated rate of tax to be applied to auto-diesel used for commercial purposes. As the DRS applies on a selective basis to certain commercial transport operators it is a State Aid and must comply with Commission Regulation (EU) 651/2014, commonly referred to as the General Block Exemption Regulation. Any amendment to the existing DRS scheme, or the introduction of an additional scheme for licensed hauliers would have to comply with State aid rules and ETD requirements including observing a minimum rate of €330 per 1,000 litres for auto-diesel used for commercial purposes.
222. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost to apply the 9% VAT rate to e-bike rentals. [41507/24]
View answerI 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 to provide an accurate costing for the measure outlined.
223. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of a therapy tax credit allowing parents of children with disabilities to reclaim therapy-related expenses. [41508/24]
View answerSection 469 of the Taxes Consolidation Act 1997 provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses.
Only "health expenses" incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a practitioner, will qualify for tax relief.
Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”.
Health expenses are defined as “expenses in respect of the provision of health care” and may include, but are not limited to, the following:
• the services of a practitioner,
• diagnostic procedures carried out on the advice of a practitioner,
• maintenance or treatment necessarily incurred in connection with the services of a practitioner or diagnostic procedures carried out on the advice of a practitioner, and
• drugs or medicines supplied on the prescription of a practitioner.
A practitioner is defined as "any person who is:
• registered in the register established under section 43 of the Medical Practitioners Act 2007,
• registered in the register established under section 26 of the Dentists Act, 1985, or,
• in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".
For parents who incur psychological or counselling related expenses in respect of their children, currently relief may be available in circumstances where the practitioner administering the services or referring the child for a diagnostic procedure, as the case may be, is a qualified practitioner as defined above.
For a person who is under 18 years of age, or if over the age of 18 years at the start of the tax year receiving full-time instruction at any university, college, school or other educational establishment, relief may also be allowed for speech and language therapy carried out by a speech and language therapist or educational psychological assessments carried out by an educational psychologist (who is a psychologist who has expertise in the education of students).
In the case of physiotherapy, relief may be allowed in circumstances where the practitioner administering the therapy is a qualified practitioner as defined above, or if the treatment has been prescribed by a practitioner.
Further information is available on Revenue’s website www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/what-are-qualifying-expenses.aspx
I would note that the health expenses relief is a broadly availed of relief. In 2022, the cost of tax relief for health expenses (excluding nursing home expenses) was €201.1 million and it was availed of by 662,900 claimants.
Therefore, the current provisions pertaining to tax relief for health expenses may already provide for certain therapy related expenses incurred by parents in respect of their children. In the event that the Deputy is suggesting broadening the scope of the existing relief or replacing the existing relief with a tax credit, any associated cost would depend on the parameters of such a tax credit, the number of parents that would be eligible for such a credit or the costs incurred by parents on therapy related expenses, and the tax liabilities of those parents.
The Incapacitated Child Tax Credit may also be claimed by the parent or guardian of a child who is permanently incapacitated by reason of mental or physical infirmity. The qualifying criteria for claiming the credit are outlined in Section 465 of the Taxes Consolidation Act 1997 and further information is also available on the Revenue website at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/index.aspx.
224. Deputy Jim O'Callaghan asked the Minister for Finance the estimated yield of increasing the betting tax levy from 2% to 3%. [41509/24]
View answerI am advised by Revenue that its Ready Reckoner for calculating the impact of potential changes in rates of taxation can be used to estimate the effect of changes to the Betting Duty rate by extrapolating from the information on page 26. The Ready Reckoner is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. An update of the Ready Reckoner is due to be published by the 25th of October 2024. These estimates assume no behavioural changes.
225. Deputy Robert Troy asked the Minister for Finance if he is aware that Revenue is currently seeking tax returns, covering a number of years from retired PAYE workers (details supplied). [41513/24]
View answerI understand that the Deputy’s question relates to cases where retired PAYE workers, who have recently sought a Statement of Liability (SOL) from Revenue, have been asked by Revenue to submit tax returns to finalise their tax position.
I am advised by Revenue that a Preliminary End of Year Statement (PEOYS) is made available on myAccount to all PAYE employees, including retired individuals in receipt of PAYE sources of income. The PEOYS sets out an individual’s provisional tax position based on information available on Revenue records. It will show whether that individual has paid the correct amount of Income Tax and Universal Social Charge (USC) for the year.
However, an individual’s final tax position can only be determined when they submit a tax return at the end of the year and claim any additional credits or reliefs that may be due or declare any additional income they may have.
Since 2022, Revenue has written to approximately 700,000 taxpayers whose PEOYS indicated that they have either underpaid or overpaid tax over a number of years. The correspondence outlines the steps which taxpayers should take to review their PEOYS and file an income tax return. An income tax return can be filed through myAccount, which is Revenue’s quick, easy, and free online platform. For taxpayers that are unable to use myAccount , a paper income tax return can be requested directly from Revenue by phoning their 24-hour automated Forms Ordering Service on 01-7383675.
Upon completion of a return, Revenue will issue a SOL showing the final tax position for that year. Where the SOL indicates an overpayment, any refund of tax will be paid into the individual’s bank account on record. Where the SOL indicates there is an underpayment, taxpayers are not required to make any immediate payment. Instead, any underpayment will be collected through a reduction of tax credits in future years. For example, for an underpayment of €200, this equates to a collection of €1 extra of tax per week over a four-year period. Taxpayers can, however, choose to make a full or partial payment if they wish.
Any individual who experiences hardship because of a tax liability can contact Revenue and agree a repayment solution that meets their individual circumstances.
Finally, I should note that Revenue have advised that, should the Deputy wish to contact Revenue directly on behalf of any taxpayer, he can do so via the Oireachtas Helpline at 01-8589999.
231. Deputy Cormac Devlin asked the Minister for Finance for an update on the national payments strategy; and if he will make a statement on the matter. [41570/24]
View answerIn June 2023, the terms of reference for a National Payments Strategy (NPS) were published, and work on the NPS has commenced, taking account of the changing payment landscape and ongoing legislative developments at EU level, including proposals on instant payments, payment services, legal tender and the digital euro. Access to cash and acceptance of cash is also being examined as part of this work.
The Department sought views from across Irish society though a public consultation. A Consultation Paper on the NPS was prepared to guide the discussion and is available on the Department’s website,? https://consult.finance.gov.ie/en .?The Consultation Paper has three main areas of focus:
• Payments roadmap
• Acceptance of cash
• Access to cash [the development of the access to cash legislation is a separate work stream]
The consultation process closed on 14 February 2024 and the responses to the public consultation will form an important part of the NPS. A summary of the submissions was published on the Department’s website and can be found here: www.gov.ie/en/publication/ebcb3-national-payments-strategy-public-consultation-summary-of-submissions/ .
Subsequently, the NPS team conducted a stakeholder workshop where various stakeholders could meet and discuss the various proposed recommendations. Following this the NPS was drafted containing the considered recommendations and action points. The NPS is due to be launched and published on the afternoon of 15th October 2024, once approved at the Government Cabinet meeting that morning.
232. Deputy Pearse Doherty asked the Minister for Finance when he, or his predecessor, became aware that the Central Bank was to become the ‘home’ country for Israeli bonds within the EU; the engagement he has had with the Central Bank on the matter since the International Court of Justice ruling in January; and if he will make a statement on the matter. [41592/24]
View answerAs the Deputy will be aware, the Central Bank of Ireland (CBI) as the financial regulator is independent in its operations. The CBI’s role as financial regulator extends to securities markets. In this regard it was designated as Ireland’s competent authority for the purposes of carrying out the functions of a competent authority referred to in the EU Prospectus Regulation (Regulation (EU) 2017/1129 – “the Regulation”) and the Irish Prospectus Regulations (Statutory Instrument No. 380 of 2019). Accordingly, I have no role or function in relation to this regulatory matter.
As this issue is a regulatory matter and within the competency of Central Bank of Ireland, as our competent authority, I have not raised this matter with them and I understand that this specific regulatory matter was not raised by my predecessor. Following consultation with CBI, my officials supplied factual information to the Budget Oversight Committee in relation to the matter. This followed on from a commitment that I made to the Committee on 18 September when the matter was raised. The factual information is set out below.
The Regulation applies to persons seeking admission of securities to trading on a European Economic Area (EEA) regulated market or making an offer of securities to the public within the EEA, albeit not seeking admission to trading on an EEA regulated market. The Regulation covers a variety of different securities, including third country government bonds. Third country issuers have to choose one of the competent authorities in the EU as their Home Member State subject to certain criteria set out in the Regulation.
It must approve any security prospectus that meets the standards of completeness, comprehensibility and consistency under the terms of the Regulation. The criteria for the scrutiny of the completeness, comprehensibility and consistency of the information contained in the prospectus is set out in a European Commission Delegated Regulation (Commission Delegated Regulation (EU) 2019/980).
The CBI cannot refuse the approval of a prospectus without a legal basis. An example of a legal basis would be the imposition of EU financial sanctions against the issuer, as was the case with Russian Sovereign Bonds following the invasion of Ukraine. The issuer can challenge any decision by the CBI to refuse a prospectus to the Irish Financial Services Appeals Tribunal or seek a review of the decision through the Irish courts.
The CBI approved the first prospectus for the State of Israel bond issuance programme in 2021. The securities are offered in Ireland (and Austria, France, Germany and the Netherlands through the EU passport). They are not listed on a regulated market in the EU but remain listed on the London Stock Exchange.
Prior to 2021, the UK was the EU Home Member State under the EU Prospectus Regulation for the State of Israel. Ireland was chosen by Israel as the new Home Member State after Brexit. The choice of Home Member State within the EU is up to the issuer and the CBI can only object if they believe they do not have legal jurisdiction for the approval based on the terms of the Regulation.
233. Deputy Matt Carthy asked the Minister for Finance the international events and engagements he has attended at which members of the media were also in attendance as part of the Government delegation, since the formation of the Government; the media organisation they represented; the cost involved; and if he will make a statement on the matter. [41601/24]
View answerThere have been no international events or engagements since the formation of the Government where media attended as part of the Government delegation.
234. Deputy Jim O'Callaghan asked the Minister for Finance the total expenditure on help-to-buy grants in 2023; and if he will make a statement on the matter. [41622/24]
View answerThe 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.
I am advised by Revenue that the total cost of Help to Buy approved claims for 2023 is €185 million.
235. Deputy Jim O'Callaghan asked the Minister for Finance whether he will give consideration to the impact that the Revenue Commissioners’ implementation of a case (details supplied) is having on those businesses involved in the making of TV commercials that are now required to employ persons who provide services to them for no more than one day; and if he will make a statement on the matter. [41643/24]
View answer236. Deputy Jim O'Callaghan asked the Minister for Finance whether he will recommend to the Revenue Commissioners that the solution adopted in the UK in respect of the making of TV commercials and the use of self-employed people could be implemented in Ireland; and if he will make a statement on the matter. [41644/24]
View answerI propose to take Questions Nos. 235 and 236 together.
On 20 October 2023, the Supreme Court, in a unanimous decision, delivered an important judgment on the key factors to be considered when classifying an individual’s employment status for income tax purposes.
The detailed judgment was delivered by Mr. Justice Brian Murray in The Revenue Commissioners v. Karshan (Midlands) Ltd. t/a Domino’s Pizza. The case was concerned with whether delivery drivers were independent contractors under a “contract for service” and taxable under Schedule D of the Taxes Consolidation Act 1997, or employees under a “contract of service”, and taxable under Schedule E of that Act (PAYE).
The judgment provides an extensive review of relevant case law, and succinctly summarises it through the provision of a five-step decision-making framework. The decision-making framework consists of five questions that are to be used to resolve the question of whether a contract is one of service (employee) or for service (self-employed). Under the self-assessment tax system, each business making payments to individuals is obliged to correctly determine whether individuals are employed or self-employed, based on the facts and circumstances of each relationship and payment through application of the five-step framework. While the judgment related to a company engaging individuals as delivery drivers, as a decision of the Irish Supreme Court, the judgement has application across all sectors, including the production of TV commercials.
Regarding the Deputy’s suggestion that Revenue should adopt an approach similar to the UK, it is important to note that the UK has an entirely different legislative framework to that which operates in Ireland.
Furthermore, I am informed by Revenue that the Karshan judgment is the leading legally binding Irish case on the key factors to be considered when classifying an individual’s employment status for Irish income tax purposes. Revenue, in carrying out its statutory function, is obliged to apply the judgment and has no discretion whatsoever on this matter. As such, Revenue therefore cannot adopt the approach taken in the UK, as this would be contrary to Irish legislation and its interpretation as laid down by the Supreme Court judgment. I would also add that it would not be appropriate for me to make a recommendation to the Revenue Commissioners about any aspect of administering the tax system, as suggested by the Deputy, as Revenue is statutorily independent in the administration and operation of the tax code.
To assist taxpayers in understanding their tax obligations, Revenue publishes detailed guidance on many topics, on its website and in the various Tax and Duty Manuals. Revenue developed a detailed Tax and Duty Manual (TDM), to outline its position in relation to the application of the judgment and to assist businesses who engage individuals to carry out work. The TDM (Part 05-01-30) was published 21 May 2024 and is available on the Revenue website at the following link www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-30.pdf
The TDM provides general guidance and commentary but cannot cover every eventuality and circumstance. The key message in the TDM is that in determining whether an individual is self-employed or an employee, the business (entity engaging the person) must apply the five-step framework by reference to the facts and circumstances on the individual case.
The Deputy mentions that businesses involved in the making of TV commercials are now required to employ persons who provide services to them for no more than one day. The judgment outlines different types of arrangements where the engagement may result in a worker being considered as an employee for tax purposes, including confirming that a single engagement can give rise to such an outcome. However, the judgement is clear that each payment and engagement must be considered separately considering the full facts and circumstances of each engagement.
The TDM represents Revenue guidance, however I am informed by Revenue that it has not imposed any approach. Instead, it is the Supreme Court who has set down the conditions that need to be applied. It has also always been a matter for a business engaging the individual to determine whether that individual is an employee for tax purposes.
Businesses are free to disagree with elements of the TDM and self-assess based on the facts and circumstances of their own case. Revenue will then, in the normal way, look at cases based on risk and make assessments or amended assessments where appropriate and a right of appeal exists, which may lead to future litigation in this area.
237. Deputy Alan Kelly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide a list of all renovation and upgrade projects completed by the OPW on their offices from 2020 to date, by project name, location, project awarded tendered, final cost of project; the duration of each project in months, and any remedial works post contract for each project, in tabular form. [41618/24]
View answerAdditional time is needed to collate the information requested by the Deputy. The Office of Public Works will respond directly to the Deputy on this matter.
238. Deputy Christopher O'Sullivan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the annual Exchequer funding provided for measures (details supplied); and to outline current policy in these areas, in tabular form. [40971/24]
View answerAdditional time is needed to collate the information requested by the Deputy. The Office of Public Works will respond directly to the Deputy on this matter.
239. Deputy Joan Collins asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will finalise the approval of pension increases for the 11,000 retired Eir staff and the over 6,000 An Post retirees (details supplied). [40986/24]
View answerThe procedures for Ministerial consent of a pension increase in commercial semi state bodies are outlined in the Amendments to the Annex on Remuneration and Superannuation of the Code of Practice for the Governance of State Bodies, which were introduced by Department of Public Expenditure and Reform Circular 16/2021. The Code of Practice provides that it is initially a matter for each Government Department, under whose aegis responsibility for individual commercial semi state bodies fall, to consider and approve any pension increase proposals and following this to seek the consent of the Minister for Public Expenditure, NDP Delivery and Reform.
Eir wrote to the Department of Environment, Climate and Communications on 19 June 2024 to request Ministerial consent for a 2.5% discretionary pension increase, effective from 1 July 2024. The Department of Environment, Climate and Communications wrote to my Department on 2 September 2024 requesting my consent and I granted my consent on 10 October 2024 in accordance with the Code of Practice. The concurrence of the Minister for Finance was also sought for this increase on 10 October 2024 as required under Section 10 of the Telecom Éireann Main Superannuation Scheme 1988 and I understand that this matter is currently under review in the Department of Finance.
Rule 13 of the An Post Main Superannuation Scheme provides that the Company may grant such increases in pensions and preserved pensions under the Scheme as may be authorised from time to time by the Minister for the Environment, Climate and Communications with the concurrence of the Minister for Public Expenditure, NDP Delivery and Reform.
An Post wrote to the Department of the Environment, Climate and Communications on 21 June 2024, requesting approval to increase pensions in payment and deferred pensions by 2.0% effective from 1 January 2024. The Department of the Environment, Climate and Communications wrote to my Department on 26 September 2024 requesting my consent for the increase. Having considered the proposal and reviewed the analysis by NewERA, I granted my consent on 15 October 2024 in accordance with the Code of Practice.
240. Deputy Jim O'Callaghan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when it is proposed to commence work on the Garda station in Newcastle West; if an update on the project will be provided; and if he will make a statement on the matter. [40994/24]
View answerI wish to thank the Deputy for his question and to inform him that a preferred main contractor has been identified and the standstill period for Reserved Specialists is currently underway. It is intended to hold a pre contract award meeting with the preferred tenderers by the end of October subject to no challenges during this statutory standstill period.
Following the approval of the Final Business Case by the Department of Justice which is being submitted by An Garda Síochána, it is intended to issue a Letter of Acceptance to the Main Contractor. The Office of Public Works expects the contractor to start on site in November/ December 2024. The construction period is expected to last approximately 90 weeks and substantial completion is expected in Q3 2026.
