Alan Kelly
Question:223. Deputy Alan Kelly asked the Minister for Transport to ask TII the materials went into the road surface in the area for one kilometre either side of junction 27 in Birdhill on the M7. [33375/25]
View answerRoad Network
Questions (223)
Written answers
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and maintenance of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Infrastructure Guidelines and the necessary statutory approvals.
Noting the above position, I have referred your question on the M7 at Birdhill to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Orders.
Air Services
Questions (224)
Louis O'Hara
Question:224. Deputy Louis O'Hara asked the Minister for Transport to outline the Irish Aviation Authority’s role in enforcing consumer protection for airline passengers; and if he will make a statement on the matter. [33378/25]
View answerWritten answers
The Irish Aviation Authority ("the IAA") is the designated National Enforcement Body for Regulation (EC) 261 of 2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights ("EU 261"). The IAA investigates alleged breaches of this Regulation based on information provided by members of the public.
Where a flight cancellation occurs, Article 9 of Regulation EU 261 provides that passengers shall be offered free of charge meals and refreshments in a reasonable relation to the waiting time; and hotel accommodation in cases where a stay of one or more nights becomes necessary or where a stay additional to that intended by the passenger becomes necessary.
The IAA recommends that passengers who believe their rights under Regulation EU 261 were infringed lodge a complaint with the air carrier in the first instance. In the event that they do not receive a satisfactory response, they may, in turn, complain to the IAA regarding the alleged breach. Information on how to make a complaint to the IAA is available on the IAA website www.iaa.ie.
Section 45a of the Aviation Regulation Act 2001, as amended, sets out the IAA's enforcement powers under Regulation EU 261. It provides that where the IAA is of the opinion that an air carrier has failed to comply with or is infringing the Regulation, it may issue a direction to the carrier to comply with the Regulation or cease the infringement and to comply with any instructions contained in the direction.
The carrier may, within 14 days of the issue of the direction, make representations to the IAA, which the IAA shall consider. The IAA shall, where it has received such representations, reply in writing to the carrier within 2 months of such receipt. The IAA in its reply may confirm, vary or withdraw the direction. Where the direction is confirmed (with or without variation) the direction takes effect on the date the reply is given. If an air carrier to fails to comply with a direction made by the IAA, it commits an offence and is liable, on summary conviction, to a fine not exceeding €5,000 or, on conviction on indictment, to a fine not exceeding €150,000.
Matters of a more general consumer nature between passengers and air carriers are addressed by the Competition and Consumer Protection Commission.
Driver Licences
Questions (225)
James Geoghegan
Question:225. Deputy James Geoghegan asked the Minister for Transport for an update on a driving licence exchange (details supplied); and if he will make a statement on the matter. [33425/25]
View answerWritten answers
As Minister of State for International & Road Transport, Logistics, Rail & Ports, I wish to advise that the Road Safety Authority has statutory responsibility for the National Driver Licence Service, which includes licence application matters.
My Department does not have access to individual driving licence exchange applications and may not intervene in that process. Accordingly, I have referred this matter to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
Verification is needed when processing a foreign licence for exchange, to ensure a fraudulent document has not been submitted and that a driving test was passed in the country that issued the licence. Road safety and keeping Irish roads safe for all road users remains the priority in this matter.
There are various reasons for time being taken in processing foreign licence exchanges, for example, the driver may need to submit outstanding information, such as, a medical or eyesight report, or the physical driving licence itself in the case of an online application. The most common reason for delays is the NDLS awaiting verification of the driving licence from the foreign driving licence authority. At times a response is received very quickly but sometimes there can be considerable delays.
A referred reply was forwarded to the Deputy under Standing Orders.
Driver Licences
Questions (226)
Barry Heneghan
Question:226. Deputy Barry Heneghan asked the Minister for Transport if he will consider introducing a revised licensing process to support returning Irish citizens and new residents from countries such as the United States and Canada, including the option to permanently convert valid licences subject to conditions such as passing the learner theory test, enhanced instruction hours, and verification of driving history; and if he will make a statement on the matter. [33449/25]
View answerWritten answers
As Minister of State for International & Road Transport, Logistics, Rail & Ports, I wish to advise that Irish driver licensing operates within a framework of EU law - the driver licensing legislation with which all Member States must comply. The standards for testing drivers are set at EU level. and EU driving licences are recognised and exchangeable when a person moves from one Member State to another.
Ireland may make bilateral driving licence exchange agreements with non-EU jurisdictions. This is not a straightforward matter. Reaching them is not a matter of political will and the core principle is to ensure the continued safety of Irish road users. Agreements may be made only when the authorities in each jurisdiction have studied and compared the licensing regimes and are satisfied that they are compatible. For Ireland, this task is undertaken by the Road Safety Authority.
People with a non-exchangeable licence who are resident in Ireland must, in order to drive here, obtain an Irish licence. A person with a full but non-exchangeable licence must go through the normal driver learning process, but can avail of shorter Essential Driver Training of only 6 lessons, instead of 12, and does not have to be a learner for the usual minimum of 6 months before taking a driving test.
One of the commitments in the Programme for Government 2025 is to “Work to facilitate the easier return to Ireland for emigrants, including reciprocal driving licence arrangements with the USA, Australia and Canada”. Ireland has licence exchange agreements with Australia and with seven of the ten Canadian provinces, so holders of these licences may, if resident in Ireland, exchange them for an Irish licence. Ireland does not have an agreement with the USA. My Department will be exploring how this Programme for Government commitment might be addressed.
Driver Licences
Questions (227)
Barry Heneghan
Question:227. Deputy Barry Heneghan asked the Minister for Transport if he will review current licensing policies for drivers from non-EU Member States with no reciprocal agreements, with a view to implementing a pathway that ensures road safety while supporting mobility and economic integration, particularly for returning emigrants and skilled new residents; and if he will make a statement on the matter. [33450/25]
View answerWritten answers
As Minister of State for International & Road Transport, Logistics, Rail & Ports, I wish to advise that Irish driver licensing operates within a framework of EU law - the driver licensing legislation with which all Member States must comply. The standards for testing drivers are set at EU level. and EU driving licences are recognised and exchangeable when a person moves from one Member State to another.
Ireland may make bilateral driving licence exchange agreements with non-EU jurisdictions. This is not a straightforward matter. Reaching them is not a matter of political will and the core principle is to ensure the continued safety of Irish road users. Agreements may be made only when the authorities in each jurisdiction have studied and compared the licensing regimes and are satisfied that they are compatible. For Ireland, this task is undertaken by the Road Safety Authority.
People with a non-exchangeable licence who are resident in Ireland must, in order to drive here, obtain an Irish licence. A person with a full but non-exchangeable licence must go through the normal driver learning process, but can avail of shorter Essential Driver Training of only 6 lessons, instead of 12, and does not have to be a learner for the usual minimum of 6 months before taking a driving test.
One of the commitments in the Programme for Government 2025 is to “Work to facilitate the easier return to Ireland for emigrants, including reciprocal driving licence arrangements with the USA, Australia and Canada”. Ireland has licence exchange agreements with Australia and with seven of the ten Canadian provinces, so holders of these licences may, if resident in Ireland, exchange them for an Irish licence. Ireland does not have an agreement with the USA. My Department will be exploring how this Programme for Government commitment might be addressed.
Departmental Staff
Questions (228)
Emer Currie
Question:228. Deputy Emer Currie asked the Minister for Transport the number of people working full-time and part-time in his Department and bodies under the aegis of the Department in roles that are fully on-site, hybrid, or fully remote from 2022 to date, in tabular form; and if he will make a statement on the matter. [33510/25]
View answerWritten answers
In accordance with the Civil Service Blended Working Framework, published on 31st March 2022, my Department has implemented its own Blended Working Policy. Since the 1st July 2022, my Department has facilitated flexible blended working arrangements for all eligible staff members, on a pattern of up to a maximum of 5 days over a fortnight period on a 2 days / 3 days alternating pattern for office attendance as determined by business need, with flexibility expected from staff on other days where there are particular business requirements. Certain roles within my department are ineligible for remote work on the basis of their core duties requiring full-time in person attendance.
The number of staff availing of hybrid remote and fully onsite working from 2022 onward is set out below. In accordance with the Civil Service Framework, no staff in my Department avail of full remote working.
I have referred your query to the agencies under the aegis of my Department and have asked the bodies to respond directly to you on this matter. If you do not hear from them within 10 days please contact my private office.
|
- |
Fully-Onsite |
Hybrid Remote |
|
2024 |
53 |
639 |
|
2023 |
54 |
589 |
|
2022 |
54 |
542 |
A referred reply was forwarded to the Deputy under Standing Orders.
Tax Code
Questions (229)
George Lawlor
Question:229. Deputy George Lawlor asked the Minister for Finance to outline the engagement he has had with a company (details supplied) in view of their closure announcement; the affirmative action the Government will take to ensure the company comply with their capital gains obligations around intellectual property; and if he will make a statement on the matter. [33306/25]
View answerWritten answers
It is not appropriate for the Minister for Finance to comment on the tax affairs of individual businesses.
The monitoring of compliance with tax obligations is a matter for Revenue, and extensive powers have been granted in legislation to facilitate this process. Further information in this regard can be found on the Revenue website, including in the Revenue Code of Practice for Compliance Interventions, available at www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf.
Revenue is precluded under Section 851A of the Taxes Consolidation Act 1997 from commenting on the tax affairs of an individual, business or entity.
Fiscal Policy
Questions (230)
George Lawlor
Question:230. Deputy George Lawlor asked the Minister for Finance if he has considered any proposals to introduce and incentivise employee ownership trusts in Ireland similar to those available in the UK; and if he will make a statement on the matter. [33309/25]
View answerWritten answers
I note the Deputy’s query on employee ownership trusts in Ireland.
It will be of interest to the Deputy that last year an independent review of share-based remuneration, carried out by Indecon International Consultants on behalf of my Department, was published. The review is available on the Department website at: www.gov.ie/pdf/?file=https://assets.gov.ie/306447/8b59a4ce-f548-4171-9792-a3fd3102d0d5.pdf.
This review made a number of recommendations, including recommendations concerning employee ownership.
As part of the process of determining future policy in this area, consideration will be given to all recommendations made in the review. As part of these considerations, the Department has engaged with relevant stakeholders, including the Irish Pro Share Association (IPSA).
Additionally, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances and my Department’s Tax Expenditure Guidelines.
Tax Data
Questions (231)
Carol Nolan
Question:231. Deputy Carol Nolan asked the Minister for Finance the total additional amount in additional revenue generated by alcohol companies on foot of the introduction of minimum alcohol pricing in each year since its introduction; and if he will make a statement on the matter. [33330/25]
View answerWritten answers
Minimum unit alcohol pricing was introduced by the Department of Health as a public health measure designed to influence retail pricing strategies. As minimum unit alcohol pricing applies exclusively at the final stage of the supply chain (i.e. retail), any additional revenue realised by alcohol companies as a result of this policy is not captured in the data provided to Revenue.
Alcohol Products Tax (APT) is charged when the excisable product is released for consumption in the State. Taxpayers liable for APT are not obligated to disclose how these products are later distributed or sold. As a result, Revenue does not hold data linking the sale of alcohol products to retailers such as off-licenses, public houses, licenced restaurants, or other licenced premises.
Further, Revenue advises that traders are not required to separately identify the VAT yield generated from the sale or supply of specific products or services in their periodic VAT returns. Consequently, the information requested by the Deputy is not available from tax records.
Accordingly, with the data available, it is not possible for Revenue to quantify the total additional tax revenue, if any, generated by any trader within the supply chain, including the final retailer, as a result of the introduction of minimum unit alcohol pricing.
Tax Code
Questions (232)
Pearse Doherty
Question:232. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 46 of 21 May 2025, if he accepts that the register of beneficial ownership has been effectively closed to all journalists; if he is aware than many countries in the EU have not taken the same approach in relation to the CJEU ruling mentioned; if he will bring forward new legislation to ensure journalists can access the register of beneficial ownership ensuring journalism is classed as a legitimate interest; and if he will make a statement on the matter. [33346/25]
View answerWritten answers
In November 2022 the Court of Justice of the European Union ruled, in Joined Cases C-37/20 and C-601/20, that a provision of the EU AML Directive 2015/849 which was amended by the EU AML Directive 2018/843 under which information on the beneficial ownership of corporate and other legal entities, held in central registers, must be provided to the general public, is invalid. Specifically, the Court found that the provision interfered with the rights recognised in Articles 7 and 8 of the Charter of Fundamental Rights of the EU.
Accordingly, to ensure our domestic legislation complies with the Court’s ruling, and following consultation with the Office of the Attorney General, a Statutory Instrument was prepared amending Regulations which govern two of Ireland’s registers of beneficial ownership information - the Register of Beneficial Ownership of Companies and Industrial & Provident Societies (RBO), which operates under the auspices of the Companies Registration Office, and the Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts, which is operated by the Central Bank of Ireland. The Minister for Finance signed into law S.I. 308 of 2023, the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) (Amendment) Regulations 2023 on 18th June 2023 which provides that tier 2 access requests are subject to an entity demonstrating it has a legitimate interest, subject to the satisfaction of the relevant Registrar.
The new AML package was agreed by the EU Council in May 2024 and the associated AML legislation specifies the rules and those categories of entities that are deemed to have legitimate interest. This includes the media and wider civic society in recognition of the need for transparency and society’s general interest in knowing the identity of beneficial owners for AML purposes. Articles 10, 12 and 14 of the 6th Anti-Money Laundering Directive refer. It should be noted that Article 14 states inter alia ‘the Commission shall define, by means of implementing acts, technical specifications and procedures necessary for the implementation of access on the basis of a legitimate interest by the central registers referred to in Article 10, including: standardised templates for requesting access to the central register and for requesting access to beneficial ownership information on legal entities and legal arrangements’.
Work by my Department has already commenced on transposing the new AML package and there is ongoing engagement with the EU Commission and other Member States in relation to the standardised templates for legitimate interest. The transposition deadline for this aspect of the new AML package is July 2026.
Tax Code
Questions (233)
Niamh Smyth
Question:233. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if there are plans to revise the rule in cases involving self-builds with limited mortgage borrowing; and if he will make a statement on the matter. [33228/25]
View answerWritten answers
The 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. An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, 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.
The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
Based on the latest available data (30 May 2025), the HTB scheme has supported more than 56,000 individuals or couples to buy their own home, of which around 86 per cent of claims were for properties which did not exceed €450,000 in value.
One condition of the scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70 per cent of the purchase value of the property. In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation should include the site value.
The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum Loan to Value ratio (LTV) of 80 per cent. However, Central Bank data indicated that a sizable number of first-time buyers take out a mortgage with a LTV of less than 80 per cent. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70 percent so as to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.
Individuals who are in the position of being able to avail of a mortgage at a lower LTV than 70 per cent are considered to have sufficient resources to meet the deposit requirements of the macro prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase deadweight in the scheme. In fact, the independent review of the scheme which took place in 2022 recommended that the LTV be increased to 80 per cent for purchasers availing of HTB.
It should be noted that the value of the site, and not just the building cost, is included in the valuation. This is of particular relevance in cases of self-build homes.
Finally, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the broader housing market. However, I have no plans, at present, to amend the the LTV requirements of HTB.
Tax Code
Questions (234)
Mairéad Farrell
Question:234. Deputy Mairéad Farrell asked the Minister for Finance further to Parliamentary Question No. 395 of 10 June 2025, to outline, given the five tests set by Karshan in 2023 and given that the wages of home tutors are paid by her Department, the teaching hours are set by her Department and her Department is the one who exercises control, and the home tutors are not allowed to subcontract their work, whether the 2015 decision is valid in view of the fact that it says that the parent/guardians are the employees; if this would not be akin to interpreting Karshan’s decision in relation to drivers of a company (details supplied) as saying the person who ordered the pizza was the employer. [33229/25]
View answerWritten answers
The Home Tuition Grant Scheme is operated by the Department of Education and Youth and the conditions of the scheme have been set by the Department, including the setting of teaching hours to be covered by the grant scheme, as well as that parents or guardians must source a qualified tutor who is registered with the Teaching Council of Ireland for the duration of the approved tuition.
Revenue have confirmed to me that it is Revenue's understanding that the Home Tuition Grant Scheme provides funding towards the provision of a compensatory educational service for children, who, for a number of specific reasons, are unable to attend school.
The additional point raised by the Deputy, that home tutors are not allowed to subcontract their work, would support the position that the home tutors are employees for tax purposes, as one of the steps in five-step framework as set out in the Supreme Court decision. The question of who is engaging the home tutors under the Home Tuition Grant Scheme has not changed post the Supreme Court decision. It is Revenue's understanding that it is the parent or guardian that engages the home tutor in a private arrangement and as such the payment arrangement is between the parent or guardian and the home tutor.
Illicit Trade
Questions (235)
Erin McGreehan
Question:235. Deputy Erin McGreehan asked the Minister for Finance the measures currently being undertaken to address the smuggling of illicit goods, including drugs and tobacco, and to strengthen border enforcement. [33259/25]
View answerWritten answers
In relation to drug smuggling, I am advised that Revenue has primary responsibility for the prevention, detection, interception, and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State. Revenue’s drugs interdiction strategy supports the Government’s strategic approach to the misuse of drugs under the National Drugs Strategy 2017-2025. The Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities right across the country, and every effort is made to combat the importation of illicit drugs.
As part of its risk focused approach to the discharge of its role in relation to illegal drug importations, Revenue monitors and evaluates ports, airports, and other points of entry into the State such as parcel operator premises and mail centres, on an ongoing basis to identify the risk potential for drug smuggling, and in doing so Revenue works, within its remit, in close collaboration with other Irish law enforcement entities and UK partner agencies. The JATF Drugs Crime Priority is led by An Garda Síochána and the PSNI.
Given the global nature of the illicit smuggling trade, international law enforcement cooperation remains a key element in Revenue’s overall response. Revenue has strong and strategic partnerships in place at international level targeting illicit smuggling, including working closely with relevant law enforcement agencies such as Europol and the Maritime Analysis Operations Centre for Narcotics (MAOC-N). Revenue liaison officers are stationed in both Europol and MAOC-N, ensuring Revenue is at the forefront in the area of anti-smuggling enforcement at an international level. These officers work closely with international colleagues in identifying the transnational risks associated with illicit smuggling into the State.
Furthermore, Revenue is an active participant, along with its national and EU partners, in initiatives under the umbrella of the EU Roadmap to Tackle Drugs and Organised Crime. These initiatives, including the European Ports Alliance, provide for EU-wide collaboration and information sharing on best practices to increase security and resilience in tackling the threat posed by drug trafficking, illicit smuggling and organised crime.
At a national level, the Joint Task Force, which is an interagency collaboration consisting of Revenue, the Garda National Drugs and Organised Crime Bureau and the Naval Service, was put in place specifically to target illicit smuggling by sea into Ireland and uses the full capability and resources of each agency as required at an operational level. The Joint Task Force operates successfully under agreed protocols when activated for a specific targeted operation.
In relation to excise fraud, I am advised that Revenue works closely with its counterparts in other jurisdictions including those in Northern Ireland through the Cross Border JATF. The JATF promotes real-time collaboration between Revenue and HM Revenue and Customs, working as appropriate in collaboration with An Garda Síochána and the PSNI, in their efforts to disrupt the activities of organised crime groups involved in serious excise fraud. The JATF is an excellent example of a successful cross border partnership to tackle organised and cross jurisdictional crime on the island of Ireland. Revenue also works closely with other international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
I am assured that combatting excise fraud and the smuggling of controlled drugs into and out of this jurisdiction is, and will continue to be, a priority for Revenue. Ongoing cooperation and collaboration with national and international law enforcement agencies, including UK counterparts, will continue to play an important role in this regard. I commend Revenue and all the relevant State agencies for their work in this important area.
Illicit Trade
Questions (236)
Erin McGreehan
Question:236. Deputy Erin McGreehan asked the Minister for Finance if his Department has plans to replace the two decommissioned Revenue customs vessels, the Suirbhéire and the RRC Fáinne; and the measures or plans in place regarding the replacement of these retired boats. [33266/25]
View answerWritten answers
I am advised by Revenue that it currently has two Customs cutters (patrol vessels) in service – RCC Suirbhéir and RCC Faire.
Following a procurement process, a contract for the delivery of a new Revenue Customs cutter was signed with AuxNaval in August 2023 and a new cutter is expected to come into service later in 2025. This cutter will replace RCC Suirbhéir, which has been in service since 2004 and is approaching the end of its service life. The contract includes an option for a second cutter, which could be a replacement for RCC Faire in time.
Tax Code
Questions (237)
Ged Nash
Question:237. Deputy Ged Nash asked the Minister for Finance if his Department is aware of concerns around VAT liabilities in an industry (details supplied); if his Department and the Revenue Commissioners have given any consideration to an approach taken to this matter by the national tax authority in another EU Member State; and if he will make a statement on the matter. [33270/25]
View answerWritten answers
I am advised by Revenue that VAT is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. Irish VAT legislation, in compliance with EU VAT law provides that taxable persons who are receiving services from outside the State, in the course of their business, are accountable and liable to pay VAT on?the reverse charge basis. This provision applies to businesses across all sectors, including taxi drivers, who receive services from abroad, irrespective of their value.
Accordingly, when a business outside Ireland provides services to taxi drivers in the State, the reverse charge rules apply. This means the Irish taxi drivers who are customers of that business are obliged to self-account for the VAT in the State on the supply of the services they have received. Taxi drivers may not already be registered for VAT, because the provision of passenger road transport services is VAT exempt in Ireland; in such case, the taxi driver is required to?register?so that they can account for Irish VAT on the received services.
The Deputy compares some recent Revenue data about VAT registrations recorded with the NACE code specific to taxi-driving, with public reports of a larger number of taxi drivers here receiving services from a platform abroad. The difference in numbers may arise for various reasons. For example, as indicated in the Revenue registrations data, taxi drivers who have additional business interests may hold VAT registration recorded with the NACE code attributable to those sectors, and others who were in a different business prior to commencing taxi driving may not have amended their record to reflect the taxi NACE code.
Revenue operates a self-assessment system for VAT and therefore the application of VAT on services is primarily a matter for the company or person who is accountable for the VAT. In line with its focus on providing a service to support taxpayer compliance, Revenue provides extensive guidance in relation to VAT on services on its website www.revenue.ie and in the form of various Tax and Duty Manuals. Revenue will also provide specific advice or guidance to taxpayers that seek VAT advice on services through contact with the relevant Revenue branch or through its Revenue Technical Service. To further support compliance specifically in the taxi sector, Revenue published a detailed guidance document in February 2025 explaining how the VAT rules apply to taxi businesses and how to comply with the requirements. This Tax and Duty Manual on the VAT Treatment relevant to Taxi drivers can be accessed on the Revenue website www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Services/vat-treatment-of-taxi-drivers.pdf.
Alongside supporting tax compliance, Revenue also addresses non-compliance. In operating the self-assessment system for VAT, Revenue monitors tax compliance through a range of risk identification, assessment and evaluation programmes, together with processes that are supported by real-time data analytics and the interrogation of both taxpayer and third-party information. This approach enables Revenue to identify and quantify risk, ensuring that compliance resources focus on the non-compliant taxpayer, minimising the administrative burden on the compliant taxpayer. Revenue’s ongoing annual compliance programmes focus on multiple risk areas and a wide range of business sectors which includes, but is by no means limited to, taxi drivers and those providing passenger transport.
The Deputy refers to the tax clearance required when applying for a Small Public Service Vehicle Licence from the National Transport Authority. Tax clearance is confirmation from Revenue that a taxpayer’s affairs are in order. If an individual’s tax affairs (or those of a connected party) are not in order, tax clearance may be refused or rescinded. Where tax clearance is rescinded, or an application for tax clearance is refused, the reasons for same will be outlined and these issues should be addressed before re-applying for tax clearance. Further information on tax clearance is available at www.revenue.ie/en/starting-a-business/tax-clearance/tax-clearance-under-review-refused-or-rescinded/application-refused.aspx.
The Deputy suggests requiring suppliers of certain services from outside the State to register here for VAT in order that their taxi-driver customers here would not have VAT obligations under the reverse charge. I am advised by Revenue that there is no discretion under the EU VAT Directive for Ireland to require VAT registration here by businesses who are not established in the State and who supply services to businesses in the State. Revenue does not comment on the tax administration of other Member States.
Fiscal Policy
Questions (238)
Brendan Smith
Question:238. Deputy Brendan Smith asked the Minister for Finance if we will give detailed consideration to a document recently produced by a national organisation (details supplied); and if he will make a statement on the matter. [33300/25]
View answerWritten answers
Revenue is a fully integrated tax and customs administration, with approximately 2,000 of its staff engaged in activities that are focused on targeting and confronting non-compliance. For effective operational management, Revenue allocate resources to different aspects of enforcement and compliance work and these resources are adjusted and realigned in response to changes in the level of risk in different sectors.
I am advised by Revenue that it uses a range of measures designed to identify and target those involved in the smuggling, supply or sale of illicit tobacco products, including duty free in excess of allowances, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting the persons involved.
Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis.
Revenue keeps its operational requirements and arrangements regarding the deployment and use of detection technology and resources, including a suite of x-ray scanners, electronic risk analysis tools, detector dog teams and maritime cutters, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs. I am aware that Revenue expects its new Customs cutter, which will replace the RCC Suirbhéir, to come into service in September 2025. Furthermore, as part of the redevelopment of Rosslare Europort, a new high energy X-ray gantry system will be deployed in 2025. This is the first high energy X-ray gantry system to be deployed in the State and is expected to enter service before year end.
In that regard, I am aware that Revenue monitors trends in illicit trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
The long established and close working relationship between Revenue and HMRC remains central in enabling the two organisations to collaborate effectively in tackling cross border excise fraud and disrupt those involved in this criminal activity across the island of Ireland.
In addition to working closely with An Garda Síochána and its counterparts in Northern Ireland, Revenue also works closely with the relevant authorities in other jurisdictions, such as the EU’s Anti-Fraud office, (OLAF), Europol and other international organisations, including the World Customs Organisation, in the ongoing programmes of action at international level to combat tobacco crime.
Revenue is very conscious of the resourcefulness of those involved and remains vigilant for, and ready to respond to, any new developments in these areas.
Revenue recognizes the risks associated with the availability of duty-free tobacco and takes appropriate measures to mitigate those risks. In its efforts to detect excess duty-free goods, Revenue’s Customs Officers regularly deploy detector dog units and use a combination of risk analysis, profiling, intelligence and the screening of checked-in and carry-on baggage. In 2024 Revenue purchased and deployed an additional mobile baggage scanner which is being used in conjunction with Revenue’s other resources to help identify illicit products contained in passengers’ baggage. Revenue’s strategy also involves developing and sharing intelligence on a national, EU and international basis. Revenue continues to adopt an agile response to this threat and monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
Revenue frequently engages with duty-free operators at the points of entry into the State to discuss the duty-free regime and any additional measures to mitigate against the importance of excess duty-free goods.
The table below outlines the number of summary and indictable prosecutions for cigarette and tobacco related offences 2024 to the end May 2025:
|
Year |
No. of Summary Prosecutions |
No. of Indictable Prosecutions |
|
2024 |
75 |
11 |
|
2025 (to end May) |
25 |
5 |
Penalties in this area typically include on summary conviction a fine of €5,000 or, at the discretion of the Court, imprisonment for a term not exceeding 12 months, or both. On conviction on indictment, the penalties include a fine not exceeding €126, 970 or imprisonment for a term not exceeding 5 years, or both.
The Government has ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade. On an ongoing basis Revenue keeps the legislative framework under review having regard to new or emerging risks. Revenue will continue to work closely with the Department of Finance in this regard.
Tax Credits
Questions (239)
Albert Dolan
Question:239. Deputy Albert Dolan asked the Minister for Finance if he will provide an update on the proposed introduction of a tax credit for gym membership or other physical activity-related expenses; if any assessment has been made on its potential impact on public health and activity levels; and if he will make a statement on the matter. [33313/25]
View answerWritten answers
As the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, includes a commitment to “consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise.”
Officials in my Department will consider the matter over the coming weeks with the expectation that an update of the examination will be provided as part of the annual Tax Strategy Group process.
In line with best practice, and as with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal must be assessed in accordance with the Department of Finance’s Tax Expenditure Guidelines having regard to the relevant considerations. The guidelines make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
Any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.
Fiscal Policy
Questions (240, 242)
Pearse Doherty
Question:240. Deputy Pearse Doherty asked the Minister for Finance in situation where a legal title is owned by a credit servicing firm and the loan related to the same mortgage is owned by a special purpose vehicle, as is the case form many residential mortgages in the State, which legal entity determines the rate of interest to be applied to the mortgage; and if he will make a statement on the matter. [33347/25]
View answerPearse Doherty
Question:242. Deputy Pearse Doherty asked the Minister for Finance if credit services firms as only the legal title holder under current legislation are allowed to enforce a credit agreement including repossessions, to outline the legislation that provide credit servicing firms with this authority in situations where they are only the legal title holder but not the beneficial owner of the underlying loan of the mortgage; and if he will make a statement on the matter. [33349/25]
View answerWritten answers
I propose to take Questions Nos. 240 and 242 together.
The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (the 2015 Act) and the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 (the 2018 Act) applies to the activity of credit servicing in relation to relevant credit agreements. The Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 and EU Directive 2021/2167, which was transposed by the European Union (Credit Servicers and Credit Purchasers) Regulations 2023, applies to the servicing of agreements within the scope of those enactments.
The 2015 Act made the activity of credit servicing a regulated activity. This legislation ensured that where an unregulated entity acquired the legal title to the rights of the creditor under a relevant credit agreement (legal title loan 'owner'), that entity had to become a regulated entity unless the agreement was serviced by a regulated credit servicing firm or by an alternative type of regulated entity such as a bank or retail credit firm.
Subsequently, the 2018 Act expanded the scope of credit servicing to include, in and of itself, holding the legal title to the rights of creditor and associated ownership activities.
Any entity with such a legal interest in a relevant loan, if not already subject to Central Bank regulation, has to be authorised as a credit servicing firm even where the entity had already appointed a person authorised to carry out credit servicing activities.
Under the 2018 Act, the determination of the overall strategy for the management and administration of a portfolio of credit agreements and the maintenance of control over key decisions relating to such a portfolio also became a credit servicing activity, subject to regulation by the Central Bank of Ireland.
It is worth highlighting that the Central Bank has put in place a range of measures in order to protect consumers who are mortgage holders. The consumer protection framework in place seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle.
This framework provides the same protections for borrowers regardless of the regulated entity with whom they are dealing, be that a bank, retail credit firm or credit servicing firm. Credit servicing firms must be authorised and supervised by the Central Bank, and are subject to the full suite of relevant regulatory requirements and financial services legislation, including the Code of Conduct on Mortgage Arrears (CCMA).
Neither the Central Bank nor I as Minister for Finance have a statutory role in approving interest rates or in determining the products that lenders provide to their customers as these are commercial decisions for firms themselves. In each case, firms will have made their own commercial decision on the lending interest rates that they charge and the specific changes (if any) to make to their lending rates based on the terms and conditions of their products and their commercial pricing strategy and funding costs.
In general, recent Central Bank data indicates that the average interest rate on outstanding mortgages held by bank and ‘non-bank’ regulated entities has declined over the past year. As the ECB has continued reducing official interest rates, the Government expects all mortgage creditors to keep their lending rates under review and where mortgage rates had in the past increased in line with ECB increases they should now appropriately adjust downwards. I have been informed that the Central Bank will continue to liaise with regulated entities on this matter.
The CCMA provides for the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.
Each regulated entity must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA framework requires lenders to exhaust the options available from the suite of alternative repayment arrangements offered by them before taking action which may result in the borrower losing his/her home (whether by voluntary sale or repossession).
The CCMA also requires regulated entities to have an appeals process in place and must inform the borrower of his/her right to refer the matter to the Financial Services and Pensions Ombudsman.
In relation to repossessions, Provision 56 of the CCMA provides that a regulated entity may only commence legal proceedings for repossession of a borrower’s primary residence where the regulated entity has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower or his/her nominated representative. Further the specific timeframes set out in the CCMA must have been adhered to or the borrower has been classified as not co-operating and notified in accordance with the CCMA.
Tax Code
Questions (241)
Pearse Doherty
Question:241. Deputy Pearse Doherty asked the Minister for Finance to provide in tabular form the total amount of capital gains tax paid by credit servicing firms and special purpose vehicles holding specified mortgages each year since 2010, in tabular form; and if he will make a statement on the matter. [33348/25]
View answerWritten answers
Finance Act 2016 made certain changes to the taxation of qualifying companies, within the meaning of section 110 Taxes Consolidation Act 1997 (“TCA 1997”). The changes, which included the introduction of a new subsection (5A) in section 110, relate to the taxation of profits derived from the business of qualifying companies that involves the holding, managing or both the holding and managing of specified mortgages, including any activities which are ancillary to that business, after 6 September 2016. Specified mortgages refer to any financial assets that derive their value, or the greater part of their value, directly or indirectly from land in the State.
Where a qualifying company transfers legal title only of a specified mortgage to a credit servicing firm but retains the beneficial interest in the specified mortgage, the credit servicing firm will not be subject to capital gains tax in respect of any gains related to the specified mortgage. The credit servicing firm will be subject to corporation tax in respect of any income it earns for managing or servicing the specified mortgage on behalf of the qualifying company.
A qualifying company is not subject to capital gains tax as all profits and gains arising in the course of its business are chargeable to corporation tax. If a qualifying company holds the beneficial interest in a specified mortgage, any profits or gains arising will be subject to the provisions of section 110(5A) TCA 1997 as set out in a response to Parliamentary Question No 24776/25.
I am advised by Revenue that it does not have information available from corporation tax returns to isolate the amount of gains related to specified mortgages from other taxable profits of qualifying companies.
Question No. 242 answered with Question No. 240.