Written Answers Nos. 441-460
441. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by imposing a financial transaction tax of 0.1% on shares and securities and 0.01% on derivatives; and if he will make a statement on the matter. [33728/24]
Amharc ar fhreagraI am taking this question to refer to the model of Financial Transactions Tax proposed by the European Commission, initially in 2011 and then revised under the EU’s enhanced cooperation procedure in February 2013. I am advised that the proposed rate on exchanges of shares was 0.1% and the proposed rate for derivative transactions was 0.01%. under those proposals.
Ireland already has a tax on financial transactions, a Stamp Duty on transactions in shares, stocks and marketable securities that currently stands at 1%. I am advised by Revenue that the yield from this tax has been in the range of c. €370 to €780 million over the last five years. This data along with other information on stamp duty receipts is available on the Revenue website. Instruments used in the financial services industry such as derivatives are generally exempt from stamp duty, unless they relate to immovable property in Ireland or shares in Irish registered companies.
Based on the data currently held by the Revenue Commissioners or my Department it is not possible to accurately estimate the yield of a Financial Transactions Tax modelled on that proposed by the EU, i.e. a tax of 0.1% on share and bond transactions and 0.01% on derivative products. An important further consideration would also need to be given as to whether the existing Stamp Duty regime could co-exist with any Financial Transactions Tax proposal which might be implemented in such a scenario.
For additional information, in relation to a possible Financial Transactions Tax as an own resource for the EU budget, leaders agreed as part of the July 2020 Multi-annual Financial Framework (MFF) agreement that a Financial Transactions Tax may form part of a package of new own resources to finance the EU budget. However, at this point, no such proposal has been put forward by the Commission. If and when this happens, I will examine any proposal based on its merits and ensure it meets the criteria of fairness and equity.
442. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated disallowing historic losses (losses forward) as tax deductions for banks and insurance companies; and if he will make a statement on the matter. [33729/24]
Amharc ar fhreagraI am informed by Revenue that the annual research paper on Corporation Tax includes the most recent information in respect of losses forward and is published on its website at www.revenue.ie/en/corporate/documents/research/ct-analysis-2024.pdf
As shown in Figure 5 on page 16 of the publication, the amount of losses forward used for all companies in the financial and insurance sector is approximately €4.5 billion for 2022, with an estimated tax cost of c. €0.6 billion. It is not possible to provide a further sectoral breakdown between banks and insurance companies.
As the Deputy is aware, loss relief for corporation tax is a long-standing feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.
It is not possible to quantify the estimated additional corporation tax revenue which could accrue from the introduction of a restriction on loss relief for banks and insurance companies, because it would require predictions about their future profitability. Changes to tax law are also generally made on a prospective basis, so any losses already in the corporation tax system would not typically be affected.
Should such a restriction be introduced, it could have knock-on implications for the cost of lending and deposits, and for the cost of insurance for consumers and businesses in Ireland. It could also be expected to decrease the value of the State’s remaining shareholdings in the banks, because tax losses forward are included as a “deferred tax asset” on a company’s balance sheet and any restriction would lead to write-downs in the value of those assets.
As regards Irish banks, it should also be noted that they do currently pay some Irish corporation tax, as the tax losses forward do not shelter profits made in all their corporate entities.
The Deputy may recall that, in 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach on the subject of both bank losses and corporation tax losses more generally. This paper is available online at www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). It was further updated and re-circulated to members during the 2019 Finance Bill process.
443. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by abolishing the special assignee relief programme; and if he will make a statement on the matter. [33730/24]
Amharc ar fhreagraUnder section 825C to the Taxes Consolidation Act 1997, the Special Assignee Relief Programme (SARP) provides Income Tax relief for certain individuals assigned to work in the State during any of the tax years 2012 to 2025.
The aim of the relief is to reduce the cost to employers of assigning skilled individuals from foreign-based operations to take up positions in the Irish-based operations of their employer or an associated company, thereby facilitating the creation of jobs and the development and expansion of businesses in Ireland.
As the Deputy may be aware, following on from concerns regarding the increasing cost of the incentive, SARP was amended in Finance Bill 2018 to reinstate an upper salary threshold at the level of €1 million. This change came into effect for new entrants to the programme from 1 January 2019 and for existing beneficiaries from 1 January 2020.
The latest annual costs available for SARP can be found in the 'Statistics on Special Assignee Relief Programme 2021' report which is published on the Revenue website at:www.revenue.ie/en/corporate/documents/research/sarp-report-2021.pdf
According to that report, the annual cost of SARP for 2012 to 2021 (the most recent year for which data are available) is as follows:
|
Year |
€m |
|
2012 |
0.1 |
|
2013 |
1.9 |
|
2014 |
5.9 |
|
2015 |
9.5 |
|
2016 |
18.1 |
|
2017 |
28.1 |
|
2018 |
42.4 |
|
2019 |
38.2 |
|
2020 |
36.6 |
|
2021 |
41.8 |
I am advised that Revenue does not maintain a projected future cost for SARP given the number of variables that would be involved in estimating with any degree of reliability. While abolishing SARP-related costs can be viewed as a saving to the Exchequer, likely losses resulting from lower employment levels (and related tax receipts) and other indirect effects within the activities that are supported by the Programme may also need to be factored into the equation. As such, it is not possible to estimate the likely savings which would accrue to the Exchequer in 2025 or in the years beyond that if SARP were abolished.
444. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing four new income tax bands of 50% on earnings between €100,000 and €150,000, 55% on earnings between €150,000 and €200,000, 60% on earnings between €200,000 and €275,000, and 65% on earnings over €275,000; and if he will make a statement on the matter. [33731/24]
Amharc ar fhreagraI am advised by Revenue that the estimated yield for the proposal outlined by the Deputy is €3.1 billion and €3.9 billion on a first and full year basis respectively.
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.
445. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of abolishing the local property tax and introducing a tax on non-principal private residences (NPPR) as follows: single NPPR - €1,000; ten or less NPPRs - €1,500 per property; 11 or more NPPRs - €2,500 per property; and if he will make a statement on the matter. [33732/24]
Amharc ar fhreagraI am advised by Revenue that, based on the latest available LPT returns, the estimated cost of abolishing the Local Property Tax in 2024 would be in the region of €531 million.
As the NPPR is a historic charge, Revenue does not currently hold adequate information to do such a costing.
However, using multiple property owners as the basis of the charges outlined by the Deputy, the expected yield is estimated to be in the region of €583 million. This costing is based on the latest available LPT returns and excludes properties owned by Local Authorities and Approved Housing Bodies.
446. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year estimate of the revenue that would be generated by introducing a levy of 33% on commercial aviation fuel; and if he will make a statement on the matter. [33733/24]
Amharc ar fhreagra447. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year estimate of the revenue that would be generated if Ireland imposed the European Commission’s proposed tax on aviation fuel in Budget 2023 and where that tax will be imposed on all flights including executive and corporate flights; and if he will make a statement on the matter. [33734/24]
Amharc ar fhreagraI propose to take Questions Nos. 446 and 447 together.
Ireland’s excise duty treatment of aviation fuel is governed by European Union law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive (ETD). In line with the ETD, Ireland currently applies an exemption from Mineral Oil Tax (MOT) to jet fuel used for commercial aviation. Jet fuel is the most commonly used fuel for commercial aviation. Aviation gasoline, which is much less commonly used in commercial aviation, is partially exempted from MOT and is subject to an effective MOT rate of €406.64 per 1,000 litres. Both the full MOT exemption for jet fuel, and the partial MOT exemption for aviation gasoline, apply to fuel used for domestic, intra-community and international flights.
Under the current ETD all fuel used for non-commercial aviation is mandatorily taxed. This means that MOT applies to any fuel used in an aircraft by its owner, or the natural or legal person who enjoys the use either through hire or through any other means, for other than commercial purposes and, in particular, other than for the carriage of passengers or goods or for the supply of services for consideration or for the purposes of public authorities. Current MOT rates, including those that apply to jet fuel and aviation gasoline used for non-commercial aviation, are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.
I understand that the Deputy is asking about mandatory taxation of fuels used for commercial aviation, as proposed under the recast of the ETD. It is important to note that the ETD proposals have not yet been agreed by Member States. Both the scope of mandatory taxation and the minimum rates are still under consideration, along with potential timeframes for implementation. Ireland is actively engaged with ongoing negotiations.
I am advised by Revenue that it is not possible to disaggregate fuel volumes data by use for domestic, intra-community or international flights. Therefore, estimations of future receipts can only be made across all flight categories. A full year estimate of the receipts that may be generated if Ireland applied the proposed minimum tax rate of €36.55 per 1,000 litres on jet fuel, is in the region of €60m. This estimate is based on data relating to MOT remissions supplied in traders’ tax returns and assumes no behavioural change. The estimate covers all commercial aviation, including domestic, intra-community, and international flights (non- intra-community). However, it is important to note that the ETD proposals for mandatory taxation of jet fuel do not extend to international flights.
With regard to aviation gasoline, the ETD proposals would apply a minimum tax rate of €34.40 per 1,000 litres. As Ireland’s effective MOT rate on aviation gasoline is €406.64 per 1,000 litres, no additional revenue would be generated on the introduction of mandatory taxation under the ETD proposals.
The Deputy is also asking for an estimate of the revenues that could arise from the introduction of a levy of 33% on commercial aviation fuel. I am advised that Revenue does not have the necessary price data on commercial aviation fuels that would enable it to generate an estimate of the revenue that would accrue from the introduction of a 33% ad valorem levy on these fuels.
448. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [33735/24]
Amharc ar fhreagraI am advised by Revenue that the gross additional yield from imposing a 5% levy on the taxable profits of all airlines and aircraft leasing companies is tentatively estimated to be in the region of €33 million, for a full year. These estimates are based on the 2022 tax returns, the latest year for which fully analysed data are available.
These estimates do not take account of any potential change in behaviour by the entities concerned in response to the suggested levy.
Currently the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their investors, suppliers and, ultimately, consumers.
As the Deputy will be aware Ireland signed up to the OECD Two Pillar agreement in October 2021. Ireland, moving in step with EU Member States, was among the first jurisdictions in the world to implement Pillar Two of that agreement last year. Pillar Two introduces a global minimum effective tax rate of 15 per cent for in-scope entities and the new rules apply for fiscal years of those businesses beginning on or after 31 December 2023.
In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant international corporate tax developments underway, I do not believe it is appropriate to introduce additional taxes or levies on companies at this time.
449. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing the help-to-buy scheme; and if he will make a statement on the matter. [33737/24]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a 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 (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. I am advised by Revenue that the total value of claims approved for 2023 was €185 million.
Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme. However, although it does not take account of any potential changes in taxpayer behaviour, the above latest cost can be assumed to be broadly indicative of the annual saving if the HTB scheme was abolished.
At present, HTB is subject to a sunset clause with an associated date of 31 December 2025.
450. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by increasing stamp duty on non-residential property to 10%; and if he will make a statement on the matter. [33738/24]
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 non-residential property is published on page 19 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.
451. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year cost of lost VAT to the Exchequer by introducing price controls that cap petrol/diesel at €1.30 and €1.40 per litre, electricity at €0.25 per kilowatt hour, natural gas at €0.08 per kilowatt hour and oil (kerosene) at €1 per litre; and if he will make a statement on the matter. [33739/24]
Amharc ar fhreagraI am advised by Revenue that the estimated full year cost of introducing these measures is provided in the table below. The estimates are based on the most recently available price information and do not take account of any behavioural change by either vendors or purchasers. The estimates are also adjusted to account for the right to deduct input VAT on commodities (excluding petrol) by VAT registered businesses.
|
Commodity |
Price € |
VAT Loss (€m) |
|
Petrol (l) |
1.30 |
85 |
|
Diesel (l) |
1.40 |
74 |
|
Electricity (KWh) |
0.25 |
274 |
|
Natural Gas (KWh) |
0.08 |
111 |
|
Kerosene (l) |
1.00 |
6 |
|
Total |
550 |
Note: estimates are rounded to nearest €1 million.
452. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of reducing the pension earnings limit from €115,000 to €60,000; and if he will make a statement on the matter. [33740/24]
Amharc ar fhreagraI am advised by Revenue that the estimated cost of potential changes to the earnings limit for pension relief, such as that outlined by the Deputy can be found by consulting Revenue’s Ready Reckoner at page 10. The Ready Reckoner provides calculations on the impact of a wide array of potential changes to tax policy.
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 issue in the coming weeks.
453. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by increasing capital gains tax to 40%; and if he will make a statement on the matter. [33741/24]
Amharc ar fhreagraI am advised by Revenue that the estimated yield from increasing the rate of Capital Gains Tax (CGT) is published on page 14 of the Revenue 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.
While the exact changes sought by the Deputy are not provided, they can be estimated on a straight-line or pro-rata basis. These estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
454. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [33742/24]
Amharc ar fhreagraAs a small open economy, connected to Europe, the US and the wider world, Ireland is committed to a competitive, transparent and stable corporation tax system. As the Deputy will be aware, the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%, and under the Pillar Two Minimum Tax Directive the effective rate has increased to 15% for in-scope companies.
Imposing additional taxes or levies on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing an additional fiscal burden could lead to theoretical gains, there is a risk that this imposition could lead to lower levels of economic activity and to companies passing the additional burden onto their suppliers or consumers.
In relation to introducing a higher corporation tax rate on energy companies, a number of factors would need to be considered. Firstly, there is the potential of higher prices for energy consumers who have only recently seen very welcome reductions from previous historic highs, this being at a time of significant cost of living pressures. The proposed CT rate rise could also have a negative impact on employment levels in energy companies if cost-cutting measures are introduced in response. Finally, a significantly higher CT rate could reduce competition in a sector that has previously seen the departure of a number of energy providers.
The Deputy may be aware that, outside of corporation tax on energy company profits, there are a number of taxes already applied to energy products in Ireland, including the Mineral Oil Tax, carbon tax, electricity tax and VAT. There are also certain levies on some energy products and these are under the remit of the Minister for the Environment, Climate and Communications.
The Deputy will also be aware that, arising from an EU Regulation introduced in late 2022 to alleviate pressure then affecting energy consumers due to, among other factors the war in Ukraine, two revenue raising measures were introduced for years 2022 and 2023. Firstly, a Temporary Solidarity Contribution (TSC) was levied on Irish fossil fuel producers for years 2022 and 2023. Secondly, an electricity market price cap was placed at varying levels on the market revenues of electricity providers located here. Both of these measures are under the remit of the Minister for the Environment, Climate and Communications. However, it is worth noting that proceeds from these measures have been used to support final energy consumers, including households and businesses.
I am advised by Revenue that the gross additional yield from increasing the corporation tax rate from 12.5% to 50% on taxable profits of all energy providers is tentatively estimated to be in the region of €540 million. This estimate is based on the 2022 Corporation Tax returns of energy providers, the latest year for which fully analysed data is available and assumes no behavioural change in response to the proposed increase in rate.
455. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost for index linking the existing tax bands to inflation in Budget 2024; and if he will make a statement on the matter. [33743/24]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government, “Our Shared Future”, states that “From Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.”
In relation to inflation, the basis for the Department’s outlook are forecasts published annually in the Budget and Stability Programme Update (SPU). Both publications set out point-in-time projections for inflation. At the time of SPU 2024 in April, the Department projected headline and core inflation of 2.1 per cent and 3.0 per cent respectively for this year as a whole. For next year, headline and core inflation are projected at 2.1 per cent and 2.4 per cent, respectively.
The Budget 2025 Economic and Fiscal Outlook will set out the Department’s updated projections for inflation.
In relation to the Deputy’s request, I would point out that, page 9 of Revenue’s Post-Budget 2024 Ready Reckoner (dated October 2023) includes the estimated cost of indexation at 1 percent, across the main tax credits and bands, as well as USC band rates and exemption limits. This information is available at the following link –
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
Based on Revenue’s latest Ready Reckoner (Post-Budget 2024), it is estimated that the cost of indexing only the income tax bands by 1 percentage point would be in the region of €95 million in 2025 and €110 million in a full year.
456. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year cost for increasing tax bands by 10%; and if he will make a statement on the matter. [33744/24]
Amharc ar fhreagraThe Deputy may wish to note that a Post-Budget 2024 Ready Reckoner is available on the Revenue website at the following link:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
The Ready Reckoner shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of widening the standard tax rate bands. While the Ready Reckoner does not show the specific costings requested by the Deputy, other changes can be estimated on a pro-rata basis with those displayed in the Reckoner.
Based on Revenue’s latest Ready Reckoner (Post-Budget 2024), it is estimated that the cost of increasing the standard rate tax bands by 10 per cent would be in the region of €905 million in 2024 and €1,040 million in a full year. The table shows how the bands would be increased as a result of Deputy’s proposal.
|
Personal Circumstances |
Standard Rate Bands 2024 |
Standard Rate Bands 2025 |
|
Single |
42,000 |
46,200 |
|
Single person qualifying for the SPCCC |
46,000 |
50,200 |
|
Married/civil partner – one earner |
51,000 |
55,200 |
|
Married/civil partner – two earners (max) |
84,000 |
92,400 |
457. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of reversing the 2023 carbon tax increase and postponing the 2024 increase; and if he will make a statement on the matter. [33745/24]
Amharc ar fhreagraI 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 carbon tax rate by extrapolating from the information on page 23. 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 issue in the coming weeks.
These estimates assume no behavioural change as a result of the additional price increases.
458. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of abolishing USC for all earners and replacing it with a higher income social charge of 10% on all earnings over €100,000 euro per year; the revenue that would be generated by the introduction of this new higher income social charge; and if he will make a statement on the matter. [33746/24]
Amharc ar fhreagraAs the Deputy will be aware, the USC yield was c. €5.4 billion in 2023, with a similar yield expected in 2024. The USC is an important source of revenue to the Exchequer to fund public services.
In relation to the Deputy’s proposal, I am advised by Revenue that restructuring the USC rates and bands so that only individual income in excess of €100,000 would be subject to a charge, at a rate of 10%, would cost an estimated €3.2 billion on a full year basis. The revenue raised by the 10% charge is an estimated €2.2 billion. Therefore, the Deputy’s proposal would have a negative net impact on the Exchequer of €3.2 billion on a full year basis.
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.
459. Deputy Richard Boyd Barrett asked the Minister for Finance the number of people who do not use their full tax credit; the total cost of refunding unused tax credits to the people; and if he will make a statement on the matter. [33750/24]
Amharc ar fhreagraI am advised by Revenue that it is not possible to identify precisely, with the data available for statistical analysis, the number of taxpayers who claimed a credit but did not use all of the value of the credit in offsetting their gross tax liability.
My Department has examined the matter of refundable tax credits in the Tax Strategy Group (TSG) process in advance of Budget 2024, and the analysis and findings of the review were published in the Income Tax TSG paper, which is available on the Department of Finance’s website at the following link:
www.gov.ie/pdf/?file=https://assets.gov.ie/263911/70cb5fff-21ee-4213-bf52-fd42453e7d42.pdf#page=null
Overall, the review identified a number of issues concerning refundable tax credits. Introducing such credits would represent a fundamental change to the personal tax system. It could also potentially prove to be very costly and provide relatively little benefit to the majority of individuals, including those working full time and earning at least the national minimum wage because such workers generally fully utilise their tax credits. Furthermore, refundable tax credits could also have potential behavioural impacts on labour supply and reduce the incentive to work or to take on additional work. Implementing a system of refundable tax credits would result in operational and administrative complexities as well as potentially reducing eligibility for some existing supports for low income households. At the time of the review tentative estimates provided by Revenue suggested potential costs could be in the region of €1 billion in relation to making personal tax credits refundable.
However, I am further advised that Revenue has not undertaken an exercise to estimate a projected impact of refundable tax credits to the Exchequer in the manner outlined by the Deputy, or the administrative cost of establishing the necessary systems to facilitate the refund of tax credits. Any such exercise in estimation would be highly complex as it would involve assumptions about the manner in which such a system would operate, its possible effects on individuals not currently in the tax net and how such a system might interact with any social protection payments. Further complexity arises as a result of certain tax credits being shareable in the cases of jointly assessed taxpayer units. In the absence of a fully designed scheme of refundable tax credits that addresses all the relevant issues outlined, an estimated cost of refunding of credits is not currently available.
460. Deputy Mattie McGrath asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the necessary funding will be released by his Department to rebuild the weir and build the new fish pass on the blackwater river in Fermoy, County Cork. [33330/24]
Amharc ar fhreagra500. Deputy Sean Sherlock asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide a definitive date for works to start on the weir in Fermoy; and the amount spent to date, in tabular form. [32778/24]
Amharc ar fhreagraI propose to take Questions Nos. 460 and 500 together.
Cork County Council has responsibility for the maintenance of the weir in Fermoy.
This weir did not form part of the works completed to protect the Fermoy community from its flood risk through the North and South Fermoy Flood Relief Schemes. The in-river works that formed part of these flood relief schemes maintained a clearance between the works area and the weir, thus avoiding scheme works impacting on the weir. Accordingly, the OPW has no statutory responsibility for this weir including its repair and maintenance.
The OPW understands in February this year, An Bord Pleanála granted planning approval for Cork County Council’s application for the proposed Fermoy Weir Remedial Works and Fish Bypass development. The Council and their representatives will be liaising with OPW with regard to seeking appropriate statutory consents during the course of the progression of this project.
I understand that the Minister of State at the Department of the Environment, Climate and Communications confirmed that Department and Inland Fisheries Ireland are amenable to supporting any application by Cork County Council for central funding in relation to the weir as it relates to relevant fisheries and habitat issues.
