Written Answers Nos. 381-400
381. Deputy Paul Murphy asked the Minister for Finance the amount of capital acquisitions tax paid annually on inheritances over €1 million, over €5 million and over €10 million for each of the past ten years. [32949/24]
Amharc ar fhreagra382. Deputy Paul Murphy asked the Minister for Finance the percentage of capital acquisitions tax that was paid annually on inheritances over €1 million, over €5 million and over €10 million for each year of the past ten years. [32950/24]
Amharc ar fhreagra383. Deputy Paul Murphy asked the Minister for Finance the projected full year revenue from capital acquisitions tax on inheritances over €1 million, over €5 million and over €10 million. [32951/24]
Amharc ar fhreagraI propose to take Questions Nos. 381, 382 and 383 together.
I am advised by Revenue that the table below provides the amount and percentage of inheritance tax paid, for inheritances above and below one million, for the years 2018 to 2023. Due to the small number of taxpayers (less than 10) involved, and Revenue’s obligation to maintain the confidentiality of taxpayer information, specific quantitative information in relation to tax amounts on inheritances greater than five million cannot be provided.
I am further advised that Revenue cannot provide the relevant amounts for earlier years as the data is unavailable for statistical analysis.
In relation to the Deputy's question on the projected full year revenue from capital acquisitions tax on inheritances over €1 million, over €5 million and over €10 million, my Department does not forecast Capital Acquisitions Tax at those levels of disaggregation.
|
Year |
2023 |
2023 |
2022 |
2022 |
2021 |
2021 |
2020 |
2020 |
2019 |
2019 |
2018 |
2018 |
|
Inheritance Tax €m |
Distribution % |
Inheritance Tax €m |
Distribution % |
Inheritance Tax €m |
Distribution % |
Inheritance Tax €m |
Distribution % |
Inheritance Tax €m |
Distribution % |
Inheritance Tax €m |
Distribution % |
|
|
Inheritance less than €1 million |
423.21 |
76 |
398.36 |
76 |
360.70 |
75 |
310.02 |
72 |
341.51 |
75 |
363.83 |
78 |
|
Inheritance greater than €1 million |
133.64 |
24 |
125.80 |
24 |
120.23 |
25 |
120.56 |
28 |
113.84 |
25 |
102.62 |
22 |
|
Total |
556.85 |
100 |
524.16 |
100 |
480.93 |
100 |
430.58 |
100 |
455.35 |
100 |
466.45 |
100 |
It is important to be aware that estimates of tax policy changes for Capital Acquisitions Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025).
The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
384. Deputy Paul Murphy asked the Minister for Finance the estimated full year annual revenue that could be raised from abolishing agricultural relief on farmland valued at €1 million or over. [32952/24]
Amharc ar fhreagraI am advised by Revenue that, based on the latest available tax returns, the estimated additional annual revenue that could be raised from abolishing agricultural relief on farmland valued at €1 million or over is €146 million. This estimate does not take account of behavioural change that may arise from introducing a cap on the relief.
It is important to be aware that estimates of tax policy changes for Capital Acquisitions Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
385. Deputy Paul Murphy asked the Minister for Finance the estimated full year revenue that would be generated by doubling stamp duty on transfers of residential property valued at €1 million or over. [32953/24]
Amharc ar fhreagraI am advised by Revenue that the estimated yield that would be generated by a range of potential changes to the rate of stamp duty chargeable on transfers of residential property valued at €1 million or over is published on page 18 of the Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
While the specific estimate sought by the Deputy is not provided, it can be estimated on a straight-line or pro-rata basis. Ready Reckoner estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
The Deputy will wish to note that an update of the Ready Reckoner is due to issue in the coming weeks.
386. Deputy Pearse Doherty asked the Minister for Finance the first and full-year costs of reducing the first rate of USC from 0.5 to 0%, reducing the second rate of USC from 2 to 0% and increasing the threshold to the third rate of USC from €25,760 to €45,000. [32981/24]
Amharc ar fhreagra387. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year costs in each of the years 2025, 2026, 2027, 2028 and 2029 respectively of reducing the first rate of USC from 0.5% to 0%, reducing the second rate of USC from 2% to 1% and increasing the threshold to the third rate of USC from €25,760 to €27,880 in 2025, then reducing the second rate of USC from 1% to 0%, and increasing the threshold to the third rate of USC from €27,880 to €30,000 in 2026, then increasing the threshold to the third rate of USC from €30,000 to €35,000 in 2027, then increasing the threshold to the third rate of USC from €35,000 to €40,000 in 2027. [33074/24]
Amharc ar fhreagra388. Deputy Pearse Doherty asked the Minister for Finance the estimated first and full-year costs in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, of reducing the first rate of USC from 0.5 to 0 %t, reducing the second rate of USC from 2 to 1 % and increasing the threshold to the third rate of USC from €25,760 to €27,880 in 2025, then reducing the second rate of USC from 1 to 0 % and increasing the threshold to the third rate of USC from €27,880 to €30,000 in 2026, then increasing the threshold to the third rate of USC from €30,000 to €35,000 in 2027, then increasing the threshold to the third rate of USC from €35,000 to €40,000 in 2028. [33083/24]
Amharc ar fhreagra389. Deputy Pearse Doherty asked the Minister for Finance the estimated first and full-year costs of reducing the rates of USC for the years and bands outlined (details supplied). [33106/24]
Amharc ar fhreagraI propose to take Questions Nos. 386, 387, 388 and 389 together.
In relation to question 32981/24, I am advised by Revenue that the estimated cost for the proposal outlined by the Deputy on a first and full year basis are €1.70bn and €1.95bn respectively.
In relation to questions 33074/24 and 33083/24, which are identical, I am advised by Revenue that estimated costs of the proposals outlined by the deputy are available in the table below. The changes below are cumulative and the rate changes made in the first proposal follow through to the end (e.g. change 4 will have the first and second USC rates at 0%).
|
Change Number |
Proposal |
First Year Cost €m |
Full Year Cost €m |
|
1 |
Reducing the first rate of USC from 0.5 to 0 %, reducing the second rate of USC from 2% to 1 % and increasing the threshold to the third rate of USC from €25,760 to €27,880. |
530 |
610 |
|
2 |
Reducing the second rate of USC from 1 to 0 % and increasing the threshold to the third rate of USC from €27,880 to €30,000. |
985 |
1,135 |
|
3 |
Increasing the threshold to the third rate of USC from €30,000 to €35,000. |
1,260 |
1,445 |
|
4 |
Increasing the threshold to the third rate of USC from €35,000 to €40,000. |
1,495 |
1,720 |
In relation to question 33106/24, I am advised by Revenue that estimated costs of the proposals outlined by the deputy are available in the table below. The changes below are cumulative and the rate changes made in the first proposal follow through to the end (e.g. change 5 will have the first and second USC rates at 0%).
|
Change Number |
Proposal |
First Year Cost €m |
Full Year Cost €m |
|
1 |
Reducing the first rate of USC from 0.5 to 0 %, reducing the second rate of USC from 2% to 1 % and increasing the threshold to the third rate of USC from €25,760 to €27,880. |
530 |
610 |
|
2 |
Reducing the second rate of USC from 1 to 0 % and increasing the threshold to the third rate of USC from €27,880 to €30,000. |
985 |
1,135 |
|
3 |
Increasing the threshold to the third rate of USC from €30,000 to €35,000. |
1,260 |
1,445 |
|
4 |
Increasing the threshold to the third rate of USC from €35,000 to €40,000. |
1,495 |
1,720 |
|
5 |
Increasing the threshold to the third rate of USC from €40,000 to €45,000. |
1,700 |
1,950 |
As a reduced rate of USC of 2% currently applies for those aged 70 years or older with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less, the estimated costings in both tables also include a decrease in the reduced rate of USC from 2% to 0%, for consistency.
I am further advised that Revenue cannot provide estimates of specific aspects of the proposals in later years due to the unknown nature of the future tax base and future economic behaviour.
It is important to be aware that estimates of tax policy changes for USC are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
390. Deputy Pearse Doherty asked the Minister for Finance the revenue raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by increasing the rate of capital acquisition tax from 33 to 36%. [33153/24]
Amharc ar fhreagra391. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by increasing the rate of capital acquisition tax from 33 to 36% for Category A. [33155/24]
Amharc ar fhreagraI propose to take Questions Nos. 390 and 391 together.
I am advised by Revenue that the estimated current yield that would be generated by increasing the rate of Capital Acquisition Tax from 33% to 36%, as well as by increasing the rate of Capital Acquisition Tax from 33% to 36% for Category A, is published on page 15 and 16 of the Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
An update of the Ready Reckoner is due to issue in the coming weeks.
These estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
392. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 by reducing the total earnings limit for employee pension contribution from €115,000 to €60,000, €70,000 and €80,000, in tabular form. [33158/24]
Amharc ar fhreagra393. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by reducing the total earnings limit for employee pension contribution from €115,000 to €60,000 while increasing the age-related percentage limits to 40% across all age-brackets. [33159/24]
Amharc ar fhreagra394. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue cost in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by increasing the age-related percentage limits for employee pension contributions to 40% across all age-brackets. [33160/24]
Amharc ar fhreagraI propose to take Questions Nos. 392, 393 and 394 together.
In relation to question 33158/24 I am advised by Revenue that the yields associated with reducing the total earnings limit for employee pension contributions from €115,000 to each of €60,000, €70,000 and €80,000 are an estimated €120m, €85m and €60m respectively.
In relation to question 33159/24, I am advised by Revenue that the yield associated with reducing the total earnings limit for employee pension contributions from €115,000 to €60,000, combined with increasing the age-related percentage limits to 40% across all age-brackets, is an estimated €65m.
In relation to question 33160/24, I am advised by Revenue that the cost associated with increasing the age-related percentage limits to 40% across all age-brackets, is an estimated €30m.
I am advised by Revenue that data in relation to questions 33159/24 and 33160/24 should be treated as particularly tentative, as the increase of the age-related percentage limits to 40% across all age-brackets is based on the lifting of the current restrictions of pension contributions in excess of the age-related limits. The costing does not reflect the potential increase in pension contributions as a result of the behavioural response resulting from this policy changes, which may be significant. It is not possible to estimate the behavioural response associated with such a change.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
It is important to be aware that estimates of tax policy changes for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
395. Deputy Brendan Smith asked the Minister for Finance the measures that will be introduced to assist the retail sector in the Border region due to difficulties that have arisen in trading with increased excise costs on energy products and the resultant loss of trade in other goods as well; and if he will make a statement on the matter. [33161/24]
Amharc ar fhreagraThe Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT amounted to 21 cents, 16 cents and 5.4 cents per litre on petrol, auto diesel and marked gas oil (MGO), respectively.
These temporary cuts to excise rates were initially due to end on 31 August 2022, but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates occurring in June and September 2023. A final restoration of excise rates was due to take place on 31 October 2023, but Budget 2024 provided for further extension until 31 March 2024, with phased restoration occurring in April and August 2024. The first of these restorations took place on 1 April 2024 adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to MGO.
A number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. It is important to note that despite the restoration of excise rates which occurred in April 2024, national average retail prices have shown steady decreases in recent weeks. While national average prices as of 13 May 2024 were approximately €1.84 and €1.78 per litre for petrol and auto diesel respectively, more recent prices as of 15 July 2024 were approximately €1.77 for petrol and €1.71 for auto diesel. According to the Consumer Council of Northern Ireland equivalent prices as of 18 July 2024 were €1.67 for petrol and €1.70 for auto diesel (ECB exchange rate 18 July 2024).
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained.
I and my officials will of course continue to monitor and review energy prices.
With regard to future tax measures to support this sector, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
396. Deputy Brendan Smith asked the Minister for Finance if he will give further consideration to the issues raised by the hospitality sector in relation to increased costs, loss of business and jobs; and if he will make a statement on the matter. [33162/24]
Amharc ar fhreagraAs the Deputy will be aware, the Government has provided significant support to business throughout the period of increasing costs and Budget 2024 contained a number of measures which will support businesses facing increased costs, including the Increased Cost of Business (ICOB) grant, which aimed to provide financial support to small and medium sized businesses who operate from a rateable premises, at a cost of €257 million.
Broader supports for SMEs which were announced in Budget 2024 include the extension of the 9% VAT rate on gas and electricity from End-October 2023 to End-October 2024.
In addition, the Deputy may have noted the wide range of measures brought forward by my colleague, the Minister for Enterprise, Trade and Employment, announced on 15 May. Details of these measures can be found at the following link:
enterprise.gov.ie/en/news-and-events/department-news/2024/may/202405151
With regard to future tax measures to support this sector, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
397. Deputy Brendan Smith asked the Minister for Finance to consider the issues raised in a pre-Budget submission by a representative organisation (details supplied); and if he will make a statement on the matter. [33179/24]
Amharc ar fhreagraThe Deputy should note at the outset that Revenue has assured me that it is committed to targeting the illicit tobacco trade and implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco, including duty free tobacco in excess of duty-free allowances, and where possible, prosecuting those 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 and maritime cutters, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.In that context, I am aware that Revenue 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. I am advised by Revenue that for operational reasons, it cannot provide details of the location of specific deployments of its suite of scanning equipment, but I can confirm that these are national resources that can be deployed throughout the country. I am satisfied with the risk-focused approach adopted by Revenue.The smuggling of tobacco products has a transnational and cross border dimension and in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF) and international colleagues including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.In its efforts to detect the importation of excess duty-free goods, Revenue uses a combination of risk analysis, profiling, intelligence, screening of checked-in and carry-on baggage and the deployment of its detector dog teams. Focused, risk-driven compliance projects are also undertaken in respect of breaches of duty-free limits. Revenue optimises media engagement in terms of successful prosecutions, significant seizures and enforcement initiatives, ensuring the general public is aware of the commitment by Revenue to tackling the illicit cigarette and tobacco trade and to deter those involved. To further encourage the general public to engage with Revenue in its efforts targeting the shadow economy and the supply of illegal tobacco products, Revenue includes a message on all press releases relating to tobacco products notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295.I am pleased to acknowledge that Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2023, Revenue had 5,164 seizures of cigarettes with an estimate value of €55.7m and 1,673 seizures of tobacco with an estimated value of €7.7m. As at the end of June 2024, Revenue had 2,529 seizures of cigarettes with an estimated value of €49.1m and 775 seizures of tobacco with an estimated value of €29.5m. In addition, in 2023 Revenue secured 92 convictions, of which 5 were indictable, and to the end of June 2024, it secured 46 convictions, of which 4 were indictable, in relation to the smuggling or illegal sale of cigarettes and tobacco products. Further successes highlighting Revenue’s approach to the illicit tobacco trade include the detection and dismantling of an illicit commercial cigarette factory in Dublin in February 2024. This detection was as a result of an intelligence-led operation and investigations are ongoing nationally and internationally. Revenue’s high detection rate is attributable to its multi-faceted tobacco strategy, continued cooperation and intelligence sharing with other national and international law enforcement agencies and its advanced profiling methods and strategic use of appropriate detection technology and assets.The legal framework relating to fines for the sale of illicit tobacco are contained in Tobacco Products Tax (TPT) legislation, as set out in Chapter 3 of Part 2 of the Finance Act 2005 (as amended). Sections 78 and 78A of the Act provide that, without prejudice to any other penalty, any person convicted of an offence in relation to the illegal selling of unstamped tobacco products or of illicit production, storage or delivery of such products, or for fraudulent use of tax stamps shall be liable to the following sanctions:• On Summary Conviction – a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both.• On Conviction on Indictment – a fine not exceeding €126,970 or imprisonment for a term not exceeding 5 years, or both.Fines for summary offences are now set at the maximum level that may be applied in accordance with the District Court Guidelines. Following a review in 2010, fines for indictable level offences were increased tenfold from €12,695 to €126,970. Where the value of the excisable products concerned is greater than €250,000, then a fine not exceeding three times the value of the excisable products concerned could be imposed. The discretion of the court to impose a fine and/or term of imprisonment not exceeding 5 years was retained. The amendment sought to ensure that the fines which may be imposed better reflected the seriousness of the offences involved and served as an effective deterrent. However, Revenue has no role in how fines are imposed; that is solely a matter for the judiciary.Further sanctions are set out in General Excise law. Section 119 of the Finance Act 2001, as amended, sets out additional penalties for tobacco smuggling. Where the value of the goods concerned is greater than €250,000, including any taxes chargeable thereon, an amount not exceeding three times their value may be imposed and/or a prison sentence of up to 5 years.The position in relation to sanctions in respect of tobacco offences will be kept under review. While the Government has ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade, I am open to considering proposals from Revenue that will address new or emerging risks which cannot be addressed through the current and significant legislative framework in place in regard to tobacco smuggling.This Government has also been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration.Finally, I am assured that Revenue is very alert to the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer and I commend Revenue and all the relevant State agencies for their work in this important area.
400. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the rent tax credit to €1,000 for 2025, 2026, 2027, 2028 and 2029. [33211/24]
Amharc ar fhreagra401. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the rent tax credit to 8.3% of annual rent paid per private rental tenant, with a minimum credit of €1,000 and maximum credit of €1,500, provided as a refundable tax credit for the years 2025, 2026, 2027, 2028 and 2029. [33215/24]
Amharc ar fhreagra402. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue cost in 2025, 2026, 2027, 2028 and 2029 respectively, of increasing the rent tax credit to 8.3% of annual rent paid per private rental tenant, with a minimum credit of €1,000 and maximum credit of €2,000, provided as a refundable tax credit. [33216/24]
Amharc ar fhreagraI propose to take Questions Nos. 400, 401 and 402 together.
In relation to the estimated cost of increasing the rent tax credit to €1,000 for 2025, based on the figures set out in the Budget 2024 documentation and data currently available, the incremental cost of increasing the Rent Tax Credit by €250 is of the order of €88 million.
I am further advised by Revenue that, in relation to increasing the Rent Tax Credit to 8.3% of annual rent paid, it is not possible to provide an estimate for the proposals outlined by the Deputy. There is no basis to provide this estimate as the relevant information on the tax return is not sufficiently comprehensive for statistical analysis.
