Written Answers Nos. 172-191
173. Deputy Cian O'Callaghan asked the Minister for Finance the number of staff members at the Financial Services and Pension Ombudsman’s Office allocated to deal with tracker mortgage complaints; if he has plans to increase the staffing levels in this department; and if he will make a statement on the matter. [36329/24]
Amharc ar fhreagraThe Financial Services and Pensions Ombudsman (FSPO) is an independent, impartial, fair and free service that helps resolve complaints against financial service and pension providers from consumers and small businesses. It plays an important role in the robust financial consumer protection framework that supports consumers of financial services in Ireland.
During 2023, the FSPO received 74 complaints relating to tracker mortgage interest rates. This represents a significant decline from the 139 such complaints received in 2022. It is also significantly lower than in 2020, when the number of tracker mortgage interest rate complaints received peaked, at 492 in the year.
85% of complaints that closed in 2023, were closed within 12 months of the complaint being made. For all complaints that closed in 2023, including tracker mortgage complaints, the average time from receipt of complaint to closure, was 8.6 months.
The FSPO has an insourced tracker team of 12 people. There are no plans to increase the team at present.
In the context of the wider organisation, the FSPO's Workforce Plan 2024-2026 was approved by the Minister for Finance in December 2023. This resulted in an increased sanctioned headcount for the FSPO from 90.2 to 128 staff, a 42% increase in staffing.
This includes increasing the Investigation Service Team from 17.6 to 36, reflecting the increasing demand for services. Other key roles proposed in the plan to address capacity gaps and the increasing demand for services include an additional Deputy Ombudsman, an ICT Chief Information Officer and further roles in areas such as Legal Services, Registration and Assessment, Dispute Resolution Services, Finance, HR, and Customer Service.
174. Deputy Mairéad Farrell asked the Minister for Finance his plans to address in the Budget the lack of targeted regional supports for the film industry, particularly in light of the demise of the Section 481 regional uplift; and if he will make a statement on the matter. [36332/24]
Amharc ar fhreagra198. Deputy Cathal Crowe asked the Minister for Finance the estimated cost of restoring the regional uplift for section 481 tax relief for 2025-2029. [36908/24]
Amharc ar fhreagraI propose to take Questions Nos. 174 and 198 together.
Finance Act 2018 introduced a short-term, tapered regional uplift under section 481 for productions being made in areas designated under the State aid regional guidelines (among other criteria). The purpose of the regional uplift was to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.
The uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However, in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector, Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted, reducing to 3% in 2022, 2% in 2023, and the uplift has now ceased.
As the regional uplift was an approved State aid, any restoration of the uplift would require approval from the European Commission. It should be noted that a further extension of the uplift in its previous form may not be possible. While it was not a Regional Aid, the relief operated by reference to the regional aid map applicable at the time it was introduced. A new regional aid map, covering a smaller geographic area, was introduced from April 2021 and, while approval was granted by the European Commission for the uplift to continue to reference the previous map up to the point of the relief's conclusion at end 2023, it is not clear that a similar approval would be granted if the uplift were to be re-introduced.
There are presently no plans for the reintroduction of a regional uplift or any other regionally-targeted supports for the film industry under section 481. However, the Deputy will be aware that the cap on eligible expenditure for audio-visual productions was increased from €70 million to €125 million as part of Budget 2024. This increase in the cap, as well as the extension of the section 481 Film Tax Credit to 31 December 2028, is a strong indicator of this Government’s desire to support the film industry in Ireland.
In addition, there are other supports available for the sector. In 2023 for example, Screen Ireland invested over €5 million in projects, initiatives and activities that contributed to the nationwide development of the sector and, as the Regional Uplift tapered out, it also ring-fenced up to €3.5m in its 2023 budget for nationwide activity. This included the establishment of a Nationwide Additional Production Fund; 13 awards were made as part of this fund to the value of almost €2.7m across 13 projects.
In relation to the potential cost of a new uplift, I am advised by Revenue that the Exchequer cost of the regional uplift would be dependent on the number of qualifying films, as well as the timing and value of claims made for the relief into the future. As information on future expenditure in this sector is unknown, there is no basis available to provide an accurate estimate of the information requested by the Deputy.
However, the Deputy may wish to note that the estimated additional cost of the regional uplift on claims paid during 2022, the latest year for which data are available, was approximately €3.4m. This estimate includes both payments for upfront claims (based on 90% of budgeted expenditure) and payments for balancing claims from previous years. The regional uplift in 2022 was at 3%.
175. Deputy Mairéad Farrell asked the Minister for Finance the reason for higher earners receiving greater tax relief than lower earners on the cycle-to-work scheme; if he has any plans to amend the progressivity of the scheme; and if he will make a statement on the matter. [36335/24]
Amharc ar fhreagraSection 118(5G) of the Taxes Consolidation Act 1997 (TCA) provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.
The amount of exempted expenditure depends on the type of bicycle purchased and includes related safety equipment. Since 1 January 2023, the scheme applies to the first:
• €3,000 of expenditure in relation to a cargo or e-cargo bike;
• €1,500 of expenditure in relation to a pedelec or e-bike; or
• €1,250 of expenditure in relation to any other type of bike.
Under section 118B TCA, the employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for a bicycle and/or related safety equipment.
The benefit-in-kind arising from the provision of a bicycle and associated safety equipment by an employer to an employee, is exempt from income tax, PRSI and USC under the Cycle to Work Scheme. Tax, at whichever rate the taxpayer would otherwise be liable to pay, is therefore not payable on the value of the bicycle and associated safety equipment. Although those individuals liable to tax at the higher rate will, as a result, effectively get tax relief at that rate, generally over the course of the tax year they will pay a significantly greater amount of income tax than individuals that are liable to the standard rate of tax. This is due to the progressivity of the Irish personal income tax system.
The Cycle to Work Scheme was implemented as a tax exempt benefit-in-kind in order to keep the implementation of the scheme as simple as possible and reducing administration on the part of employers. The scheme operates on a self-administration basis, and so relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation.
While the Cycle to Work scheme is kept under review by officials, I have no plans at present to amend the scheme.
Finally, I would note that Ireland has among the most progressive systems of taxes and social transfers of any EU or OECD country. These systems contribute to the redistribution of income and to the reduction of income inequality in Ireland. Ireland’s progressive income tax system generally ensures that the burden of taxation falls most heavily on those with a higher ability to pay. This means that those on lower incomes pay less income tax as a share of their income than those on higher incomes. It is my view that a broad-based, progressive income tax system, where the majority of income earners make some contribution but according to their means, is the fairest and sustainable income tax system in the long term.
176. Deputy Thomas Gould asked the Minister for Finance if flood insurance protection will be available following the Blackpool flood relief scheme; and for an update on same. [36360/24]
Amharc ar fhreagraAs Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. In terms of the challenges associated with obtaining flood cover, please be aware that the provision of such cover is a commercial matter for insurance companies, based on an actuarial assessment of the risks they are willing to accept. Government cannot interfere in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).
Current Government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. To date, 55 schemes have been completed, which are providing protection to over 13,000 properties and an economic benefit to the State in damages and losses avoided estimated to be in the region of €2 billion. In terms of the outcome of the current approach to flood insurance, it should be noted that according to EU level data, Ireland has an above average rate of flood cover relative to the EU.
Focusing on the Blackpool Flood Relief scheme, the Office of Public Works (OPW) has informed my Department that this scheme was initiated in 2013 following major flooding in 2012, and is expected to provide protection against the 100-Year flood (1% Annual Exceedance Probability) from the Bride River for some 293 properties. The scheme has an estimated budget of €18 million. The Minister for Public Expenditure, National Development Plan Delivery and Reform is still assessing the significant environmental effects of the scheme, with the OPW conducting the relevant surveys and will submit its results by November 2024.
The OPW has informed the Department that the primary purpose of the Blackpool scheme is to address fluvial or river flooding in turn protecting properties and businesses and the road network. These direct defences will be by way of a culvert that runs from the Commons Road /Orchard Court area to Blackpool Church. It will also involve the erection of walls in areas where the river bank is low, most notably both sides of the river from North Point Business Park to Blackpool Retail Park. There will be no demountable defences used in the Blackpool Flood Relief Scheme.
Both Minister of State Richmond and I have repeatedly emphasised to the CEOs of the major insurers in Ireland the Government’s reasonable expectation is that the industry should improve the level of cover in areas where there has been significant investment in flood relief schemes. The current position based on the Central Banks 2021 survey results is that in the region of 90 per cent of those who have a household policy have flood cover where fixed flood defences are in place.
As has been the case, the Department of Finance will continue to monitor and assess any flood insurance matters, including through: its participation in the OPW and Insurance Ireland Working Group; actively encourage industry to have a more responsive approach to the matter; engage with the Central Bank of Ireland; and consider domestic and international policy developments on climate insurance issues as they arise.
Recognising that the long-term risk of climate change on insurers and insurability, the Department of Finance continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps, with recommendations for policymakers to emerge in time. It is important that developments here align with those across the EU so the Irish market is not ‘out of step’ with others.
Finally, I and Minister of State Richmond, along with our officials, will continue to engage on all aspects of insurance reform, including flood cover issues. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
177. Deputy Niamh Smyth asked the Minister for Finance the rules on exiting bankruptcy; the length of time this should affect a person’s credit rating when trying to obtain a mortgage; and if he will make a statement on the matter. [36373/24]
Amharc ar fhreagraResponsibility for policy and operational matters on bankruptcy and personal insolvency is a matter for my colleague the Minister for Justice but I can indicate that, generally speaking, a cooperating debtor will normally be automatically discharged from bankruptcy after a period of one year.
The Credit Reporting Act 2013 provided for the establishment and operation of the Central Credit Register (CCR) by the Central Bank. In relation to the issue of a person’s credit rating in the context of an application for a mortgage, according to that Act, lenders must submit personal and credit information to the CCR on all loans for €500 or more. In addition, lenders must make an enquiry on the CCR when considering a credit application for €2,000 or more.
Credit information submitted by lenders in respect of new credit applications is held on the CCR for a period of 6 months from the date on which the information is entered on the register. Credit information submitted by lenders in respect of loan agreements (such as missed payments, if loans were written off or were subject to legal proceeding) are generally held on the CCR for a period of 5 years after the loan is repaid, written off or discharged.
However, it should be noted that the CCR does not contain any information relating to bankruptcy or insolvency. Instead the maintenance of statutory registers on bankruptcy and other personal insolvency arrangements are a matter for the Courts Service and the Insolvency Service of Ireland. In addition, it should be noted that the CCR does not produce borrower credit ratings or credit scores and neither does it contain any guidance or recommendation on the decision a lender should make on an application for credit.
There are, however, certain consumer protection and prudential requirements on lenders when considering an application for mortgage credit. In addition to the requirement to access the CCR, lenders are also required to assess the creditworthiness of a mortgage applicant. They further provide that mortgage credit should only be provided in circumstances where it is assessed that the applicant is likely to be met the repayment obligations in the manner required under the agreement.
Lenders must provide mortgages within the applicable macro prudential residential mortgage lending requirements. In the context of these mortgage lending rules it can be noted that, from a “fresh start” perspective, a borrower who previously had a mortgage loan but who subsequently has undergone bankruptcy or insolvency may, where he or she no longer has an interest in the previous property, be considered a 'first-time-buyer' for the purposes of a future mortgage loan.
Within this general framework, it is then solely a business matter for lenders to make their own decisions on mortgage loan applications having regard to their own lending policy criteria and decision making framework.
178. Deputy Carol Nolan asked the Minister for Finance the last occasion on which the tax band threshold rates for those over 65 years was increased; if he will consider in this context raising the tax band threshold from €36,000 to €40,000 for married couples and from €18,000 to €22,000 for single persons; and if he will make a statement on the matter. [36432/24]
Amharc ar fhreagraThe age exemption limits were lasted increased in Budget 2008, however, as part of a suite of structural measures to deliver fiscal consolidation in Budget 2011, the age exemption limits were reduced from €20,000 to €18,000 per annum for single persons and from €40,000 to €36,000 per annum for married couples or civil partnerships, and they have remained at these values since then.
The age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000 per annum. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000 per annum. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
Additionally, marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold. Once the income exceeds twice the exemption limit, marginal relief is no longer available and the individual pays tax under the normal tax system. However, where the individual’s or couple’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment between the use of marginal relief or the normal tax system of credits and bands.
I have no current plans to increase these thresholds further. However, in circumstances where an individual or couple no longer benefits from the age exemption or marginal relief they will benefit from the increases to the main personal tax credits in recent Budgets.
The increases to the main personal tax credits in Budget 2024 (€100 increase to the single, employee and earned income credits and a €200 increase to the credit for married couples/civil partnerships) means that the effective entry point to income tax has increased for all taxpayers, including those aged 65 or older. From 2024, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit has increased by €1,000 per annum from €18,975 to €19,975 per annum.
In addition, it is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Social welfare income such as the State Contributory Pension and State Non-Contributory Pension are excluded from the calculation when determining if an individual’s income has exceeded the €60,000 income threshold. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
The Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, at the following link - www.gov.ie/en/publication/7fbeb-report-of-the-commission/.
Finally, as part of the Personal Tax Review published on last year’s Budget Day, my Department set out further analysis of the recommendations of the Commission on Taxation and Welfare, including in respect of the age exemption limits. The Report is available at the following link - www.gov.ie/pdf/?file=https://assets.gov.ie/273335/96f70eb1-64e1-4f02-9096-e36f306a048b.pdf#page=null.
179. Deputy Bernard J. Durkan asked the Minister for Finance if all the relevant requirements have been complied with to facilitate the wind up of their company in order to enable them to obey laws for State supports, given the severity of their medical condition in the case of a person (details supplied); and if he will make a statement on the matter. [36454/24]
Amharc ar fhreagraSection 731 of the Companies Act, 2014 provides for the application by a director for Voluntary Strike Off of a company (i.e. one way to wind up a company) from the Register of Companies held by the Companies Registration Office (CRO). It also sets out the requirements to be met by the company, for an application to be considered.
One of the CRO requirements is for the applicant company to be in possession of a ‘Letter of No Objection’ from Revenue. These letters are exclusively issued by Revenue’s National Companies Unit. This unit has been liaising with the taxpayer and following some clarifications, issued a Letter of No Objection to his company on 11 September 2024. It is also noted that Revenue’s Business Division Registrations Unit has also been liaising with the named taxpayer to deregister Corporation Tax and Income Tax. This has helped speed up this process.
I am advised that Revenue can confirm that its obligations within this process are complete. However, it is a matter for the CRO to confirm if all the relevant requirements have been complied with.
180. Deputy Jim O'Callaghan asked the Minister for Finance if he will give consideration to an organisation’s recommendation (details supplied) to reduce VAT to 5% in the reuse, repair, and recycling sectors and to enhance VAT rebate schemes to promote sustainability and support social enterprises involved in these activities; and if he will make a statement on the matter. [36527/24]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.
The Directive also allows for a Member State’s historic VAT treatment to be maintained under certain strict conditions and, on this basis, Ireland has retained its long-standing application of its reduced rate, currently 13.5%, to the repair or maintenance of certain movable goods subject to the two thirds rule; one of the conditions is that the rate applied under the historic arrangement is ‘parked’, which means that EU law prohibits it being reduced below 12%.
Annex III of the Directive allows that a Member State may apply a reduced rate of VAT, of between 5% and 15%, on the collection and recycling of waste material and on the supply of certain repair services. On this basis, Ireland applies its 13.5% reduced VAT rate on the collection and recycling of waste material and on the supply of repair services on shoes or leather goods, clothing, household linen, and bicycles. However, because the Directive restricts a Member State from having more than two reduced rates of VAT, any proposal for Ireland to introduce a new 5% rate for such supplies would require Ireland to abolish one of its two existing reduced rates (13.5% and 9%) and move all other items at that rate either to the standard rate (23%) or the other reduced rate. This would give rise to increased VAT charges on items that move to a higher rate than their existing one, together with increased Exchequer costs for items moved to lower rates.
As regards the Deputy’s suggestion for a VAT rebate scheme to further promote sustainability and support social enterprises involved in the recycling sector, there is no scope under the Directive for Ireland to introduce such a measure.
The Deputy may wish to be aware that VAT law provides an optional margin scheme for taxable dealers of second-hand movable goods which are suitable for use either as they are or after repair. The margin scheme allows taxable dealers pay VAT on the difference between the sale price and purchase price (i.e., the “margin”) of certain second-hand goods. The VAT rate which applies to a sale of goods under the margin scheme is, with some exceptions, the same rate of VAT which is normally applicable to the particular good.
181. Deputy Michael Ring asked the Minister for Finance the banks and financial institutions which received bailouts following the financial crash of 2010; the level of intervention received by each; the repayment terms agreed by each; the compliance by each of these in the intervening years; the net loss/gain to the State for the transaction and agreement to each of these, in tabular form; and if he will make a statement on the matter. [36529/24]
Amharc ar fhreagraThe total recapitalisation of the domestic banks amounted to €64.1bn, of which €34.7bn was invested in Anglo Irish Bank and INBS which became Irish Bank Resolution Corporation (IBRC) and €29.4bn in AIB, Bank of Ireland and PTSB. To date, €26.1bn of the investment in the three remaining banks has been recovered in cash by way of disposals, investment income and liability guarantee fees.
As part of this activity, the State has fully disposed of its investments in Bank of Ireland and since September 2022 is no longer a shareholder in that bank. The State had invested €4.8bn in Bank of Ireland and recovered €6.8bn from its investments.
The State invested €20.8bn in AIB between 2009 and 2011. The State has made good progress in reducing its shareholding in AIB from 99.8% to 71.1% at the beginning of 2022 to c. 21.85% today while recovering over €5.5bn as part of that process.. Our remaining shareholding in AIB is worth approximately €2.7bn.
The State invested €4bn in PTSB in 2011 to address the recapitalisation needs of the bank. To date, total proceeds of €2.72bn have been generated from disposals, investment income and liability guarantee fees. The market value of our remaining 57.4% equity stake in the bank is currently at c. €0.51bn.
Therefore the remaining investments in AIB and PTSB are currently valued at c. €3.23bn (as at 12/09/2024) meaning the State are just under breakeven (based on current valuations) on its investment in the three banks.
The investment in IBRC is largely a sunk cost with a net €1.1bn recovered to date.
The long-standing policy of this Government is to return the remaining banks to private ownership, while achieving value for the taxpayer. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to rescue the banks should be recovered and used for more productive purposes.
182. Deputy Michael Ring asked the Minister for Finance the amount of capital given to the National Asset Management Agency (NAMA) on its establishment; the repayments/dividend given to the State in the intervening years; the amount of assets/capital held by NAMA currently; and if he will make a statement on the matter. [36530/24]
Amharc ar fhreagraIn March 2010, the National Asset Management Agency (NAMA) borrowed €49 million from the then Minister for Finance to inject ordinary equity into the special purpose vehicle, National Asset Management Agency Investment Limited. This sum plus accrued interest was repaid by NAMA to the Minister for Finance in February 2011. In addition, in May 2010, NAMA borrowed €250m from the Minister for Finance to fund set up costs and provide working capital for the NAMA Group. The loan plus all accrued interest was repaid by NAMA in full to the Minister for Finance in October 2010.
It may be of interest to the Deputy to note that NAMA was not provided with any capital from the Exchequer in order to acquire loan assets from participating institutions. Rather the Agency issued bonds which were used as consideration for the loans. In total, NAMA issued €31.8bn in bonds: €30.2bn in senior debt guaranteed by the Government which was fully repaid by NAMA by October 2017; and €1.6bn in subordinated debt which was fully repaid by March 2020.
NAMA commenced the transfer of surplus payments to the State in June 2020 with an initial transfer of €2bn and to date has transferred €4.25bn to the Exchequer, including over €400m in tax paid. NAMA expects to transfer a further €950m to the State by the time it completes its work at end 2025, bringing overall transfers from the Agency to the Exchequer to a projected €5.2bn.
The below table details completed NAMA transfers to end-2023 and expected future transfers:
|
- |
Actual |
Projected |
Tax Paid |
||||
|
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2016-2023 |
Overall Total |
|
€2bn |
€1bn |
€500m |
€350m |
€426m |
€525m |
€427m |
€5.2bn |
At end-March 2024, NAMA had net assets of €1.1bn in accordance with international accounting methodology, including accounting Fair Value of debtor loans of €455m, investment properties – comprising NAMA’s social housing portfolio – of €326m, and NAMA held cash of €311m. NAMA is currently winding down its operations and will conclude its work by end-2025.
183. Deputy Bernard J. Durkan asked the Minister for Finance the total revenue accruing to the Exchequer in each of the past three years to date from the various motor taxes, including fuel excise duty; the extent to which this has become a diminishing resource; and if he will make a statement on the matter. [36581/24]
Amharc ar fhreagraI am advised by Revenue that the receipts collected in respect of Fuel Taxes, including those used as propellant, in each of the past three years up to 2023 are published on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.
Table 1 below details the provisional yield to date for Mineral Oil Tax applied to auto fuels. Mineral Oil Tax comprises a carbon component, commonly referred to as carbon tax and a non carbon component, commonly referred to as fuel duty or excise.
Table 1 Provisional Receipts January – August 2024
|
Fuel Type |
Non Carbon Component |
Carbon Tax |
Total Mineral Oil Tax |
|
Auto-Diesel |
902.8 |
321.7 |
1,224.5 |
|
Petrol |
345.7 |
83.1 |
428.8 |
|
Auto LPG |
0.1 |
0.1 |
0.2 |
|
Total |
1,248.6 |
404.9 |
1,653.5 |
Annual Yields for Vehicle Taxes (Motor Tax and VRT) are shown in Table 2 below.
Table 2 Annual Yield from Vehicle Taxes 2021 – 2023
|
- |
2021 (€m) |
2022 (€m) |
2023 (€m) |
|
Vehicle Registration Tax |
786 |
757 |
878 |
|
Motor Tax |
908 |
902 |
910 |
|
Total |
1,694 |
1,659 |
1,788 |
As the Deputy will be aware, there has been much reform to environmental taxation in recent Budgets, including strengthening the environmental rationale of vehicle taxation and providing a multiannual trajectory of carbon tax rate increases. While this is welcome from a climate action perspective, the shift towards lower emissions vehicles and fuels will have an exchequer impact.
In July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government and is available online: www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/ .
The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies. The paper builds on previous work on green budgeting published in 2022 and uses a scenario analysis of policy measures on exchequer revenues between 2023 and 2030.
My Department will shortly publish updated analysis relating to multiannual projections of revenue raised from carbon tax rate increases. This analysis uses both WEM (With Existing Measures) and WAM (With Additional Measures) scenarios to provide a projected range of carbon tax yields out to 2030.
It is of course recognised that the decarbonisation of society will impact and shape future policy decisions and a number of interdepartmental work streams are currently involved in consideration of this issue.
184. Deputy Peadar Tóibín asked the Minister for Finance the amount collected in carbon tax in each month since its establishment, in tabular form. [36593/24]
Amharc ar fhreagraI am advised by Revenue that the amounts collected in Carbon Tax in each month since its establishment are shown in the following tables.
|
Month |
2024 €m* |
2023 €m |
2022 €m |
2021 €m |
2020 €m |
|
Jan |
85.6 |
78.2 |
64.5 |
56.1 |
46.6 |
|
Feb |
100.8 |
61.6 |
70.6 |
48.6 |
44.0 |
|
Mar |
83.1 |
96.1 |
61.5 |
43.1 |
46.9 |
|
Apr |
104.1 |
92.3 |
80.5 |
62.5 |
41.7 |
|
May |
86.5 |
71.1 |
61.3 |
51.0 |
29.9 |
|
Jun |
89.4 |
88.2 |
69.0 |
57.1 |
43.3 |
|
Jul |
82.6 |
62.7 |
55.3 |
48.6 |
32.4 |
|
Aug |
76.9 |
70.9 |
60.9 |
55.0 |
38.8 |
|
Sep |
- |
74.7 |
58.3 |
46.5 |
33.2 |
|
Oct |
- |
70.0 |
63.8 |
57.9 |
41.8 |
|
Nov |
- |
76.7 |
64.6 |
59.6 |
44.1 |
|
Dec |
- |
92.2 |
80.4 |
66.4 |
50.9 |
|
Total |
709.1 |
934.7 |
790.6 |
652.3 |
493.6 |
*Provisional
|
Month |
2019 €m |
2018 €m |
2017 €m |
2016 €m |
2015 €m |
|
Jan |
41.7 |
42.8 |
27.0 |
23.0 |
21.8 |
|
Feb |
34.9 |
37.3 |
50.7 |
50.8 |
51.4 |
|
Mar |
36.1 |
40.4 |
40.1 |
36.6 |
37.2 |
|
Apr |
36.8 |
44.9 |
43.8 |
48.6 |
43.7 |
|
May |
38.9 |
41.0 |
34.3 |
35.3 |
30.3 |
|
Jun |
32.8 |
31.4 |
37.8 |
40.2 |
38.3 |
|
Jul |
30.2 |
31.7 |
30.2 |
29.2 |
28.3 |
|
Aug |
30.4 |
26.1 |
29.4 |
31.7 |
32.9 |
|
Sep |
29.8 |
31.3 |
29.5 |
28.1 |
31.2 |
|
Oct |
34.3 |
29.8 |
30.4 |
33.5 |
32.2 |
|
Nov |
39.7 |
40.4 |
32.3 |
31.4 |
36.2 |
|
Dec |
44.6 |
34.1 |
34.2 |
41.8 |
35.4 |
|
Total |
430.5 |
431.1 |
419.6 |
430.2 |
419.0 |
|
Month |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Jan |
25.1 |
26.0 |
16.8 |
14.5 |
2.5 |
|
Feb |
45.1 |
42.7 |
41.3 |
44.7 |
17.3 |
|
Mar |
38.4 |
33.6 |
24.5 |
23.3 |
13.4 |
|
Apr |
31.3 |
37.6 |
34.2 |
32.1 |
15.2 |
|
May |
35.1 |
29.4 |
26.0 |
19.4 |
14.8 |
|
Jun |
34.5 |
39.2 |
33.3 |
26.9 |
18.9 |
|
Jul |
28.3 |
25.8 |
27.9 |
22.1 |
23.4 |
|
Aug |
25.2 |
30.5 |
26.7 |
20.5 |
18.5 |
|
Sep |
29.5 |
28.8 |
26.4 |
22.2 |
20.3 |
|
Oct |
28.0 |
28.0 |
29.7 |
22.9 |
24.3 |
|
Nov |
31.6 |
32.3 |
33.6 |
24.3 |
23.1 |
|
Dec |
33.1 |
34.4 |
33.6 |
25.3 |
31.5 |
|
Total |
385.4 |
388.4 |
354.0 |
298.2 |
223.1 |
185. Deputy Róisín Shortall asked the Minister for Finance the total costs incurred by the State in its appeal of the European Commission’s ruling in the company State aid case (details supplied); the total cost of managing the escrow account; and if he will make a statement on the matter. [36655/24]
Amharc ar fhreagraThe costs to the State for the Apple case to summer 2024 are approximately €10.3 million of which approximately €4.2 million relates to the recovery process. These fees have been paid by various State entities over the course of the case. It is not possible to estimate the final costs of the case at this time.
I would also note that fees paid to investment management and custodian fees are an expense of the Escrow Fund and are therefore not included in the figure above. These expenses are published in the financial accounts of the Escrow Fund.
186. Deputy Róisín Shortall asked the Minister for Finance the expected timeline for recovery of unpaid taxes from a company (details supplied) for the period 2003 to 2014, following the European Court of Justice ruling on the State aid case; and if he will make a statement on the matter. [36657/24]
Amharc ar fhreagraI assume the Deputy is referring to payments arsing from the recent Court of Justice of the European Union (CJEU) judgment which confirmed the application of the 2016 European Commission's State aid Decision.
As the Deputy will be aware, following the Commission's decision Ireland was required to recover the alleged State aid from Apple. The total amount to be recovered was calculated by Revenue on the basis of the Commission Decision. Circa €14.1 billion was placed into an Escrow Fund in 2018. The money in the Escrow Fund will transfer to Ireland in line with the processes set out in the agreement governing the operations of the Escrow Fund, which is a confidential legal document.
My officials are now engaging with the relevant parties in relation to the transfer. The processes are likely to take a number of months to complete.
187. Deputy Róisín Shortall asked the Minister for Finance the steps he is taking to understand how the Revenue Commissioners determined the profits payable in this country by the companies (details supplied) under the 1991 and 2007 tax rulings; if he will undertake a review of the actions of Revenue, previous Governments and any other relevant parties in respect of the actions taken in agreeing and issuing these tax rulings; his views on if the tax arrangements agreed between the State and both subsidiaries differed from the traditional ‘double Irish’ scheme which existed at the time; and if he will make a statement on the matter. [36658/24]
Amharc ar fhreagraI am informed by Revenue that section 851A of the Taxes Consolidation Act 1997 prohibits it from disclosing any information relating to the tax affairs of individual taxpayers.
However, as a general statement it is important to realise that tax rulings (or as they are generally referred to in Ireland “opinions/confirmations”) are provided to (i) give certainty to taxpayers as to how Irish tax legislation will apply having regard to a taxpayer’s particular circumstances and (ii) ensure that a taxpayer can file a correct tax return and comply fully with its tax/duty obligations.
While opinions/confirmations are not binding on Revenue, and it is open to Revenue officials to review the position when a transaction has been completed and all the facts are known, generally Revenue will follow an opinion/confirmation once it can be shown that:
• all relevant information was disclosed either at the time the application was made or following a request from Revenue for further clarification, and
• the transaction as actually implemented did not diverge or deviate from that which was outlined in the information provided in relation to the request for the opinion/confirmation.
Also as a general statement, the section of the Irish tax code that governs the determination of the profits of an Irish Branch of a non-resident company is section 25 of the Taxes Consolidation Act (TCA) 1997. Prior to the introduction of detailed legislative rules in 2021 to supplement section 25 TCA 1997 taxpayers may on occasion have sought a Revenue opinion/confirmation to seek clarity on the application of the section to their particular facts and circumstances.
Revenue opinions/confirmations do not alter the application or Irish tax/duty legislation nor do they seek to provide special treatment or exemptions to particular taxpayers; rather, they seek to provide certainty on the application of the law to a particular set of facts and circumstances.
It is also important to bear in mind that Revenue opinions, during the periods referred to in the Deputy’s question, would only have had regard to the correct application and interpretation of Irish tax/duty law.
The recent judgment by the Court of Justice of the European Union on the provision of unlawful State aid by way of the Irish tax system related to Ireland’s non-adherence to State aid rules and not to any mis-application or disregard of some aspect of Irish tax legislation by Revenue.
Ireland is an active participant in international tax discussions and has also made necessary changes to its taxation regime as international tax rules have developed over time. Ireland has, in recent Finance Acts alone: fully completed the transposition of the Anti-Tax Avoidance Directives (ATAD); introduced legislative defensive measures against listed jurisdictions through enhanced Controlled Foreign Company Rules; updated transfer pricing rules; and introduced legislation for BEPS measures on mandatory disclosure rules. Most recently, in Finance (No.2) Act 2023, Ireland transposed the Pillar Two Directive (i.e. the 15% global minimum tax rules) and legislated for the introduction of defensive measures that apply to outbound payments to jurisdictions listed on the EU list of non-cooperative jurisdictions for tax purposes, as well as zero-tax and no-tax jurisdictions.
The Apple case involved an issue that is now of historical relevance only; the Revenue opinions date back to 1991 and 2007 and are no longer in force; and Ireland has already introduced changes to the law regarding corporate residence rules and the attribution of profits to branches of non-resident companies operating in the State.
188. Deputy Róisín Shortall asked the Minister for Finance if he will publish the legal and taxation advice provided to the Minister for Finance in 2016 following the European Commission’s ruling in the company State aid case (details supplied), upon which the decision to appeal this ruling was taken; and if he will make a statement on the matter. [36659/24]
Amharc ar fhreagraInformation in relation to the Ireland’s legal arguments was published on the Department of Finance website in 2016 and 2020 and remains available at www.gov.ie/en/news/23687a-overview-of-irelands-position-at-the-oral-hearing-at-the-general-cou/ and www.gov.ie/en/press-release/1ea8e2-ireland-publishes-legal-arguments-in-apple-state-aid-case/.
There is no current intention to publish any further details regarding Ireland arguments or the advice received throughout the legal proceedings.
189. Deputy Róisín Shortall asked the Minister for Finance to provide a list of the companies who benefited from the 100 percent cap on capital allowances for intangible assets from 2015 to 2017 (details supplied), in tabular form; and if he will make a statement on the matter. [36660/24]
Amharc ar fhreagra190. Deputy Róisín Shortall asked the Minister for Finance the total revenue generated from the capital allowances for intangible assets scheme in each year since 2010, and to date in 2024, in tabular form. [36661/24]
Amharc ar fhreagraI propose to take Questions Nos. 189 and 190 together.
Section 291A of the Taxes Consolidation Act 1997 (TCA) provides relief in the form of capital allowances against trading income on the capital expenditure incurred by companies on the provision of intangible assets for the purposes of a trade. The scheme applies to a broad range of intangible assets (e.g. patents, copyright, trademarks, know-how), both acquired and internally developed, which are recognised as such under generally accepted accounting standards and which are listed as a “specified intangible asset” in the section. Intellectual property (IP) allowances may only be deducted from income generated by those assets.
When initially introduced, an 80% cap applied to the amount of profits of a relevant trade that could be sheltered by IP capital allowances in an accounting period. The cap was removed in Finance Act 2014 to bring the tax treatment of intangible assets into line with the tax treatment of other assets, and of similar assets in other jurisdictions. However, the cap was subsequently re-introduced in Finance Act 2017, in respect of expenditure on intangible assets on or after 11 October 2017, in response to a recommendation in the Coffey Review, with the aim of smoothing corporation tax receipts and helping to support their sustainability. The 80% cap does not affect the overall quantum of relief, it merely extends the period over which that relief is granted.
In relation to question seeking a list of companies who availed of the relief in the period from 2014 – 2017 it is not possible to disclose this information due to taxpayer confidentially.
The table below contains the available aggregate figures in respect of these assets which have been claimed and the amount which was offset against taxable profit (data in respect of the latter is available from 2020 on only). I have been advised by Revenue that data for earlier years are not available for statistical analysis.
|
Year |
Claimed: €M |
Offset: €M |
|
2022 |
147,054 |
67,054 |
|
2021 |
131,324 |
70,324 |
|
2020 |
94,237 |
40,237 |
|
2019 |
46,208 |
N/A |
|
2018 |
45,365 |
N/A |
|
2017 |
38,332 |
N/A |
|
2016 |
35,737 |
N/A |
|
2015 |
28,871 |
N/A |
191. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he will consider introducing a reduced rate of VAT for the sale of hand-weaved or hand-knitted products in Ireland, to provide an incentive to maintain these important heritage traditions across our country. [36762/24]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT Directive obliges that outside of specific historical derogations, a reduced rate of VAT may only be applied to goods and services contained in Annex III of the VAT Directive. It is not possible to apply a reduced VAT rate to hand-woven or hand-knitted products.
