Cowen, BrianWednesday, 22 November 2006 |
Dáil Eireann Debate
Page of 293
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Priority Questions - Fiscal Policy.
Was asked: if the tax targets set out in the Programme for Government 2002 continue to shape Government policy; and if he has satisfied himself that current tax policy is fair to ordinary families. 
The answer to the Deputy’s questions is yes. The Government’s approach to tax policy is set out in An Agreed Programme for Government and in recent budgets and Finance Bills. In addition, the partne...
The tax strategy group and the Revenue Commissioners independently conducted an exercise, which found that even for those whose tax is calculated at 42%, the effect of the new fairer tax credit system...
Let us deal with the facts. The Deputies can play around all they like. Revenue has confirmed that of the 32% of earners who pay tax at the 42% rate, the tax liability of 11% of them is more than of...
Is it a fact? The tax strategy group——
Excuse me.
I am answering, not asking, the question.
Four fifths of income earners have effective tax rates of 20% or less. This has been confirmed by the Revenue Commissioners and the tax strategy group. It is annoying the Opposition that this is the...
That is not true. The Deputy has suggested that everyone with a gross liability at the market rate pays all taxes at that rate, which he knows is untrue. The Revenue Commissioners——
I did not interrupt the Deputy. Through the tax strategy group mechanism, the Revenue Commissioners have independently brought forward information that, despite the Deputy’s blather, confirms that 80...
I am not introducing a concept.
When one speaks about tax, one discusses credits, bands and rates. If one asks an ordinary person on the street earning €50,000 per year with a tax liability of €10,000 about the rate of tax, he or s...
It is 20% of that person’s gross income. The logic of Deputy Bruton’s position——
More than 750,000 low income earners pay no income tax compared to less than 400,000 when we entered office. Ireland has the lowest tax burden on single persons on the average wage in the European Un...
——has seen his or her take-home pay increase by more than 40%, approximately half of which is due to tax reductions.
Some 80% of income earners are paying at rates that are effectively 20% or less. These facts have been validated by the Revenue Commissioners.
Priority Questions - Tax Collection.
Was asked: his views on the widespread use of avoidance mechanisms in respect of development land and stamp duty, particularly the use of licensing arrangements and the transfer of property via the sale or tran...
The Revenue Commissioners have been examining the operations of stamp duty and developers and have undertaken a survey of a number of developers to gather more precise information. I will decide what...
This year, Revenue is conducting a broad review of the construction industry. When it reports before the Finance Bill, we will see what it has to say about the situation. Under the stamp duty code, a...
The continual reference to personal friends is a joke. From the point of view of the person who grants a licence to a developer rather than making an outright sale of the lands concerned, the same am...
Sub-sale relief has always existed in the stamp duty code and licensing arrangements with landowners have been a traditional way in which developers develop land. The arrangements involving powers of...
I do not have a figure for the cost. The Revenue Commissioners are investigating the matter.
Priority Questions - Tax Code.
Was asked: if he will direct the Revenue Commissioners to prepare, in co-operation with the Central Statistics Office, an accurate assessment of underclaimed tax reliefs by ordinary families in order that an in...
I refer the Deputy to the statements made by the chairman of the Revenue Commissioners, Mr. Frank Daly, to the Committee of Public Accounts when he appeared before it on 9 November 2006. In response ...
I will consider some of the suggestions the Deputy has made. I indicated in my reply that, as a result of much discussion in this House and committees of the Houses, in consultation with the chairman...
Over the past few years many of the more significant reliefs have been made virtually automatic either through the introduction of tax relief at source, TRS, or through the automatic carry forward of ...
I heard the Deputy’s comments about it. I will have to examine the situation.
Priority Questions - Fiscal Policy.
Was asked: his views on the recent financial stability report from the Central Bank and its warning that Ireland is more indebted than in 2005, more exposed to interest rates and that house prices have reached ...
I welcome the publication by the Central Bank of its Financial Stability Report 2006 which reflects the bank’s mandate to contribute to the stability of the financial system in Ireland. I note the re...
Of course one keeps a close eye on these matters, as one must and should. Interest rate policy, as a result of our euro membership, is a matter for the ECB in the first instance. Ireland is represen...
A soft landing is being encouraged by the continuing supply of houses to a market which continues to have strong fundamentals. Anecdotal evidence suggests the market is softening but we will not be a...
We are no longer facing the difficulties of the early and mid-1990s, when the real interest rate was as high as 7% above nominal inflation.
I recognise that affordability is now an issue for people. Clearly, the repayment of the mortgage is the first charge on disposable income and the resulting impact in terms of less spending power for...
Other Questions - Tax Code.
Was asked: if he supports the establishment of a tax advocate with powers to monitor fair treatment of taxpayers.
The Deputy’s question is related to the calls made on occasion for the establishment of an independent individual or entity whose proposed role would include acting as an advocate for taxpayers who fe...
There is nothing to prevent the Ombudsman from making general remarks about the efficiency and fairness of the system and such remarks have been made in the past. In regard to the general evaluation ...
On Deputy Boyle’s point, we have enough bureaucracy in the system and I do not believe we need more independent NGOs telling us what to do. The decisions on our tax system and the laws we pass are ma...
Taxation is a political matter. I am making this general point because I am always amazed at the desire to set up more offices that are answerable to nobody in the view that they would be far wiser th...
I am often bemused by this sort of thinking. The Internal Revenue Service in the United States operates a taxpayer advocacy service headed by a national taxpayer advocate. However, the taxpayer advoc...
The chairman comes to see me.
I have a very good accountant who handles all my affairs.
Other Questions - Air Services.
Was asked: if he has completed the promised review of approval conditions attached to licensed aerodromes by the Office of the Revenue Commissioners following the recent drugs haul from a flight that left from ...
I am informed by the Revenue Commissioners that the review of approval conditions attached to licensed aerodromes is being dealt with as a priority. I outlined to the House on 18 October last in resp...
This incident heightened sensitivity on the part of Revenue, and I am sure it has acted accordingly, although I do not have that information. The Revenue Commissioners are conducting a review of appro...
I agree that drugs are a menace and a serious danger to the functioning of society, and we must do all that we can. Increased resources are being deployed to deal with them, by the gardaí, Customs an...
Other Questions - Mortgage Lending.
Was asked: if his attention has been drawn to reports that more lenders plan to launch sub-prime mortgages in 2007 in addition to the existing packages offered by a company (details supplied); if the Financial ...
I am aware of the reports referred to by the Deputy. The sub-prime market exists to provide finance to those who have difficulty accessing mainstream credit, usually owing to an adverse credit histor...
I understand the company to which the Deputy referred is one of a handful of companies operating in this sector, but I have no information on the intentions of such companies in what is essentially a ...
As I said, the Financial Regulator has a consumer protection remit in the area of financial services. It was established as a modern regulatory authority that would perform its function in an indepen...
If a practice comes to the Deputy’s attention which she believes is not in compliance with the statutes, she should raise it with the Financial Regulator.
I will raise the matter following this discussion and I am sure it will be investigated. That is the statutory remit of the Financial Regulator. It is a question of ensuring it has the information s...
Other Questions - Stamp Duty.
Was asked: the estimated amount of stamp duty raised on premiums paid by motor insurance policyholders to date in 2006; and if he will make a statement on the matter.
A 2% stamp duty is charged on most non-life insurance premiums and this is part of the normal stamp duty system. The exceptions are re-insurance, voluntary health insurance, marine, aviation and tran...
I have had no complaints about these charges, nor has the Financial Regulator contacted me about them.
Estimates for Public Services 2007: Motion (Resumed).
During the course of this debate on the 2007 Estimates the Opposition sought to deny reality and claimed that this is more of the same and that there is no indication of how the money will be spent, n...
Question put.
Voted Yes
Private Members’ Business - Housing Policy: Motion (Resumed).
Amendment put.
Voted Yes
Written Answers - Performance Management.
Was asked: if any Department failed the end of 2005 deadline for the development of performance indicators set out in his Department’s recent report on a new system of business planning and performance measurem...
As I indicated in my reply to PQ 33214/06 of 18th October last, I presume that the Deputy is referring to my Department’s Report of the Pilot Project on Resource Allocation, Business Planning and Per...
Written Answers - Travel Insurance.
Was asked: if his attention has been drawn to the fact that there is no code of practice to protect consumers in the sale of travel insurance; and if he will ask IFSRA to consider fully this gap.
Under the EU Insurance Mediation Directive, travel agents who sell insurance only as part of a holiday package are specifically exempt from financial regulation. These agents are therefore not authori...
Written Answers - Tax Code.
Was asked: if he will report on the work of the RCT monitoring group; the number of audits that have been carried out to date in 2006 on construction companies; the number of site visits conducted by the Revenu...
I am advised by the Revenue Commissioners that the Relevant Contract Tax (RCT) Steering Group has made significant progress to date in 2006. As I have previously advised the House, the Revenue Commis...
Was asked: if he will terminate tax breaks for the construction of private hospitals.
The scheme of capital allowances for the construction of private hospitals was reviewed by Indecon Economic Consultants as part of the overall review of property tax incentives in 2005. Indecon consul...
Written Answers - Tax Evasion.
Was asked: his views on the section of the Comptroller and Auditor Generals report that states that only two custodial sentences were imposed in 2005 on tax evaders; the number of court prosecutions initiated a...
I take it that the Deputy is referring to the subject of Revenue prosecutions activity, which is dealt with at Chapter 2.5 of the Comptroller and Auditor General’s Report for 2005. I am sure he will a...
Written Answers - Tax Code.
Was asked: his views on the statement by the chairman of the Revenue Commissioners that only one in five tax payers have claimed tax relief to date in 2006 and that taxpayers could be losing as much as €100 mil...
It is presumed that the Deputy is referring to the statements made by the Chairman of the Revenue Commissioners (Mr. Frank Daly) to the Committee of Public Accounts when he appeared before it on Novem...
Written Answers - Capital Expenditure.
Was asked: his views on the recent report by the ESRI and in particular the warnings from the ESRI that the Government should restrict capital spending over coming years to avoid overheating the construction se...
Was asked: his view of the priorities set out in the ESRI’s evaluation of the fourth National Development Plan for investment; and the limits that should be set upon such investment.
Was asked: his views on the recently published ESRI report on the ex-ante priorities for the National Development Plan 2007 to 2013 and in particular the fact that the report recommends that the tax system shou...
I propose to take Questions Nos. 68, 113 and 120 together. Following the precedent set in the preparation of previous National Development Plans, an ex-ante evaluation of investment priorities for th...
Written Answers - Tax Code.
Was asked: if he is satisfied with the equity of tax relief provisions for pensions.
The State encourages individuals to supplement the social welfare pension arrangements with private pension arrangements by offering tax relief on private pension provision. The tax relief arrangement...
Written Answers - Capital Expenditure.
Was asked: the capital underspend for each of the Departments to date; the percentage of this underspend that will carry forward to 2007; and if he will make a statement on the matter.
As part of the improved arrangements for managing capital programmes under the rolling multi-annual annual capital envelopes, Departments and Offices may carry over unspent Exchequer capital of up to ...
Written Answers - Tax Code.
Was asked: if he will introduce a tax on second properties in order to reduce demand from persons purchasing second and subsequent homes for investment which is pushing house prices up for first time buyers.
There would clearly be various risks associated with the Deputy’s suggestion; any changes that affect the housing sector must be approached with caution as even minor amendments may significantly alte...
Written Answers - Pension Provisions.
Was asked: if he sees merit in modifying the requirement in approved pension schemes of taking out an annuity in view of the poor value in such annuities.
The position is that prior to the passing of the Finance Act, 1999, any person going on pension under a defined contribution scheme or a retirement annuity contract was required to purchase an annuity...
Written Answers - Revenue Commissioners.
Was asked: if his attention has been drawn to the criticism of the Revenue Commissioners by the Institute of Taxation; and if he will make a statement on the matter.
I have read the recent newspaper report about the survey. I have also recently met with the Irish Institute of Taxation in the context of the pre-budget submission process where this issue was also ra...
Written Answers - Tax Code.
Was asked: if he will introduce measures to end the ability of high income persons to declare themselves non-resident for tax purposes.
The question of whether an individual is resident or not-resident in the State for tax purposes is a question of fact, based on the tax legislation. The Residence Rules were last updated by in the 199...
Was asked: the 117 individuals given permission to seek tax relief on pensions with a lifetime cost of over five million euro, prior to the passage of the most recent Finance Bill; the highest amount of tax rel...
I am informed by the Revenue Commissioners that 116 individuals applied for Personal Fund Thresholds under the provisions of Section 787O Taxes Consolidation Act (TCA), 1997. However, as the Deputy w...
Was asked: the amount of tax foregone under initiatives to promote commercial research and development activity in 2006 to date; and the categories under which such relief has been granted.
There are a number of schemes of relief from taxation which seek to assist and encourage research and development activity. These include: The deduction for capital or revenue expenditure incurred on ...
Written Answers - Tax Yield.
Was asked: his views on the heavy reliance of the Exchequer on revenue from the housing sector; and if he will make a statement on the matter.
Activity in the housing sector impacts primarily on VAT, Stamp duty and Capital gains tax. Housing market activity also impacts on Income tax and PRSI receipts and Corporation tax from construction se...
Written Answers - House Prices.
Was asked: if he has assessed the affordability of house purchase for young families in view of the 40% increase in the cost of mortgages in the past twelve months and its implications for Government policy.
The Central Bank’s recently published Financial Stability Report noted that increases in both house prices and interest rates are contributing to reduced house price affordability. While the Report al...
Written Answers - Tax Code.
Was asked: the number of earners exempt from income tax; the number paying at the basic rate; the number paying at the higher rate; and if he will make a statement on the matter.
Was asked: the number of earners exempt from income tax; the number paying at the basic rate; the number paying at the higher rate; and if he will make a statement on the matter.
Was asked: the number of earners exempt from income tax; the number paying at the basic rate; the number paying at the higher rate; and if he will make a statement on the matter.
I propose to take Questions Nos. 79, 106 and 152 together. I am advised by the Revenue Commissioners that the most up-to-date estimates of the information requested by the Deputies are as follows: Num...
Written Answers - Decentralisation Programme.
Was asked: the latest information available from the central applications facility in respect of applications from civil servants and other public servants currently located in Dublin who wish to transfer to ne...
Was asked: the number of civil servants and other public servants who had been decentralised from Dublin to other locations by the original deadline for the completion of the plan of December 2006; if, in view ...
Was asked: the number of personnel relocated to date under the Government’s decentralisation programme; his further proposals in this regard; and if he will make a statement on the matter.
Was asked: the progress or otherwise in implementing the decentralisation programme; the issues that have been brought to his attention where difficulties or concerns have arisen for staff; and if he will make ...
Was asked: the number of civil servants deployed to the various locations throughout the country arising from the Governments previous budgetary announcements on decentralisation; and if he will make a statemen...
I propose to take Questions Nos. 80, 81, 150, 162 and 221 together. I have no plans to review the scale or scope of the decentralisation programme. A progress report by the Decentralisation Implement...
Written Answers - Tax Code.
Was asked: the tax incentives, promoted as green tax incentives introduced by the Government since 1997; and the tax foregone in each category of incentive in 2006 to date.
Ireland continues to use the tax system to provide a stimulus to encourage activities that can assist policies promoting sustainable energy and tackling climate change. Details of the relevant tax inc...
Was asked: further to the statement of the chairman of the Revenue Commissioners at the Public Accounts Committee that he believed consumers have a legal right to a share of the refund that has been granted to ...
I am advised by the Revenue Commissioners that, historically, they had treated the supply of corrective spectacles and contact lenses by an optician as a single supply chargeable at the standard rate ...
Written Answers - Business Expansion Schemes.
Was asked: his views on the suggestion from Chambers Ireland to raise the ceiling of business expansion schemes pertaining to SMEs from the current €1 million to €10 million to assist start ups and foster the d...
A review of the Business Expansion Scheme by my Department in conjunction with the Department of Enterprise, Trade and Employment and the Revenue Commissioners is currently being finalised. Any decisi...
Written Answers - Tax Code.
Was asked: his views on extending the taxation benefit for long term leasing of land to farmer’s sons, daughters or other relatives; his views on whether at a time when young farmers need to expand if they are ...
Under Section 664 of the Taxes Consolidation Act, 1997, there is an exemption from income tax on leasing of land in respect of the first €12,000 of annual leasing income where the leasing is for a per...
Written Answers - National Development Plan.
Was asked: the latest returns he has received in respect of progress in the expenditure profile and the profile in delivery of planned outputs from the various sub-programmes within the National Development Pla...
Was asked: the progress that has been made under the current National Development Plan 2000-2006; and if he will make a statement on the matter.
Was asked: the progress made under the National Development Plan 2000 to 2006; and if he will make a statement on the matter.
Was asked: the progress that has been made under the current National Development Plan 2000-2006; and if he will make a statement on the matter.
Was asked: the progress made under the current National Development Plan; the lessons to be learned for future development; and if he will make a statement on the matter.
I propose to take Questions Nos. 86, 127, 137, 148 and 216 together. The National Development Plan/Community Support Framework (NDP/ CSF) 2000-2006 was an integrated investment plan and strategy for e...
Written Answers - Financial Services Regulation.
Was asked: his plans to amend the Credit Union Act and regulations which have hampered their development.
The Credit Union Act, 1997 provides the legal framework for the regulation of credit unions. The Act was designed to provide the credit union movement with a regulatory structure that reflects and pro...
Was asked: if he is satisfied that as interest rates rise, the financial institutions are not taking the opportunity to increase their margins.
I have no statutory function in setting the interest rates offered by credit institutions — they are based on commercial criteria in the light of market conditions. Since 1992, the Irish banking mark...
Written Answers - Tax Code.
Was asked: if he will replace the system of vehicle registration tax with a system of car taxation based on pollution levels.
VRT is a very important source of revenue for the Exchequer providing €1.15 billion or 2.9% of total net tax receipts for 2005. It is a valuable source of funds given this Government’s strategy of red...
Written Answers - Financial Services Regulation.
Was asked: the most recent figures on private sector debt; and his views on the implications of this debt level for the economy.
The most recent figures available for the growth in total private-sector credit (PSC) show it grew by 28.1 percent in September, which represents a slight easing in the rate of credit growth over the ...
Written Answers - Tax Code.
Was asked: the basis on which forecasts of capital tax are made by his Department; and the assumptions in respect of the number of taxable transactions and the trend in house prices that underpinned the 2006 es...
The assumptions underpinning the 2006 capital taxes forecasts were based on economic growth estimates in the Stability Programme Update which was published on Budget day, December 2005. These estimate...
Written Answers - Tax Yield.
Was asked: the receipts on an annual basis from DIRT tax for each year from 1997 to date in 2006; the number of people or accounts it levied on in each of those years; the arrangements in force in respect of re...
The following table sets out the net yield from DIRT collected from 1997 to 2006: * The figure quoted for 2000 includes €215.7 million which was a result of the DIRT look-back audits. The amount of DI...
Was asked: his views on the Exchequer returns of the first 10 months of 2006.
As the Deputy is aware, the Exchequer Returns to end-October were published on my Department’s website on 2nd November. The Exchequer Returns to end-October showed a deficit of €346 million, compared ...
Written Answers - Fiscal Policy.
Was asked: if he has assessed the implication of the Central Bank’s Financial Stability Report for Government policy; and if he will make a statement on the matter.
Was asked: his views on the Central Bank’s stability report 2006 published on 8 November 2006.
Was asked: his views on the concerns raised by the Central Bank in its Stability Report 2006, published in November 2006.
I propose to take Questions Nos. 94, 119 and 132 together. I welcome the publication by the Central Bank of its Financial Stability Report 2006 which reflects the Bank’s mandate to contribute to the s...
Written Answers - Tax Code.
Was asked: the property based tax reliefs for which no termination date has been set; and if he has requested any reviews of these or other reliefs by the Revenue Commissioners in the context of the forthcoming...
In Budget 2006, following a major review of existing tax reliefs involving both internal reviews and the employment of outside consultants I announced the termination, subject to certain transitional ...
Written Answers - Export Performance.
Was asked: his views on the medium-term implication of Ireland’s export performance; and if he will make a statement on the matter.
Provisional data for the first half of 2006 show that the volume of exports of goods and services increased by almost 6% on an annual basis in that period. This compares with an annual increase of 3.9...
Written Answers - Revenue Commissioners.
Was asked: if there are proposals to provide additional staff and resources to the Revenue Commissioners Office in view of the findings of the Comptroller and Auditor Generals report that the number of audits c...
I am advised by the Revenue Commissioners that the apparent drop in audit numbers referred to by the Deputy in fact arose from a re-categorisation of audits in 2005 and that when the re-categorisation...
Written Answers - Tax Code.
Was asked: his views on restoring the rollover tax to farmers and property owners who are being forced to sell property under CPO for the greater good of their neighbours and the nation; his further views on wh...
Capital Gains Tax (CGT) is a tax on a capital gain arising on the disposal of assets. A 20% rate of CGT applies on the gains arising on the disposal of assets. In Budget 2003, it was announced that n...
Written Answers - Garda Stations.
Was asked: when construction of the new Garda Station for County Wexford is due to start; and if he will make a statement on the matter.
Written Answers - Financial Services Regulation.
Was asked: if he will report on the recently published Three Year Strategy document from the Financial Regulator.
I welcome the publication of the Financial Regulator’s Strategic Plan for the next three years, 2007-2009. The Strategic Plan is a detailed and comprehensive statement of the Financial Regulator’s ob...
Written Answers - Tax Code.
Was asked: the percentage of taxpayers currently paying tax at the top rate of 42%; and if he will make a statement on the matter.
I am advised by the Revenue Commissioners that the most up-to-date estimates of the information requested by the Deputy are as follows: Numbers of income earners on income tax record These figures all...
Was asked: his plans to revise the rate and thresholds in respect of stamp duty; and if he will make a statement on the matter.
As the Deputy is aware, I do not comment on possible tax changes ahead of the budget.
Was asked: if he has studied proposals for tax reform to ease the operation of charities; and his views on proposals for VAT compensation, threshold for donation relief and duty relief on banking cards.
As with all tax reliefs, the scheme of tax relief for donations is constantly kept under review and any proposals submitted are examined carefully by my Department. On the subject of VAT compensation,...
Written Answers - National Development Plan.
Was asked: the schedule of presentation of programmes under the National Development Plan.
Was asked: the plans in place by his Department within the new National Development Plan to rectify the €3.5 billion underspend in the Border Midland Western region under the current National Development Plan; ...
Was asked: his plans for road improvement investment under the new National Development Plan in view of the €500 million underspend on roads in the BMW region under the current National Development Plan and tak...
Was asked: his plans for funding under the next National Development Plan; and if he will make a statement on the matter.
I propose to take Questions Nos. 104, 126, 160 and 163 together. The National Development Plan 2007-2013, to be published in January next, will be a high level strategic document which will provide th...
Written Answers - Decentralisation Programme.
Was asked: the number of civil servants and other public servant who applied for relocation under the Government’s decentralisation programme and who subsequently withdrew their applications; and if he will mak...
The Public Appointments Service estimates that approximately 540 applications have been withdrawn from the Central Applications Facility (CAF) to date. Because of the nature of the programme and the t...
Written Answers - Tax Code.
Was asked: if the vehicle registration tax relief for flexible fuel vehicles and the excise relief for biofuels measures announced in Budget 2006 have been introduced; the number who have applied for each of th...
As the Deputy is aware, in Budget 2006 I approved a new relief scheme which provides for the remission or repayment of 50% VRT payable or paid on the registration of certain new flexible fuel vehicles...
Was asked: if he will report on progress being made regarding the feasibility of the proposal backed by a number of banks, for consumers to be permitted to direct the €40 stamp duty on credit cards towards regi...
I have already indicated on a number of occasions that I have no plans to introduce a scheme along the lines proposed. In line with normal practice, stamp duty revenues are applied by the Exchequer fo...
Was asked: the cost in tax foregone of the research and development tax credit; the cost for 2004; the estimated cost for 2005; the estimated cost for 2006; the analysis of the take up of the credit as between ...
I am informed by the Revenue Commissioners that the most recent year for which complete information on the cost to the Exchequer of the tax credit in relation to research and development is the accoun...
Written Answers - Financial Services Regulation.
Was asked: when the new common framework for testing the fitness of directors and senior managers of financial services published by the Financial Regulator, will come into effect; his views on whether existing...
My Department has been advised by the Financial Regulator that the new common framework for testing the fitness and probity of directors and senior managers of financial services firms will apply from...
Written Answers - Decentralisation Programme.
Was asked: the anticipated costs, in terms of acquiring, and equipping premises and other related costs at the latest date for which figures are available, of the original decentralisation programme announced i...
Written Answers - Tax Yield.
Was asked: if he will provide a detailed breakdown of the way stamp duty receipts have been made up in 2006 to date.
I am informed by the Revenue Commissioners that the breakdown of Stamp duty receipts, on a Revenue Net Receipts basis, in the nine months to end-September 2006 is as follows: *Figures may not add due...
Written Answers - Pension Provisions.
Was asked: his views on the options for pension reform; and if he will make a statement on the matter.
As I stated in my reply to question no. 33171/06 on 18 October last, the Government’s position on pension reform is reflected in the statement issued in August by my colleague the Minister for Social ...
Written Answers - Fiscal Policy.
Was asked: if he will report on the latest developments in the European Commission in relation to corporation tax harmonisation and recent comments by EU Commissioner Laszlo Kovacs in this regard; and if he wil...
A technical working group chaired by the Commission is continuing its work on the feasibility of introducing a common consolidated tax base in the EU. Ireland, like all other member States, is partici...
Written Answers - Tax Code.
Was asked: the expected distribution of income earners for income tax payments for 2005 and 2006 broken down in number and percentage terms into the categories of exempt, marginal relief, standard rate and high...
I am advised by the Revenue Commissioners that the information requested by the Deputy in relation to the distribution of income earners is set out in the following table: Numbers of income earners on...
Written Answers - National Debt.
Was asked: the level of the national debt as a share of national income in 2006; the way this compares to 1997; the share of income tax revenues required to service the debt today compared to 1997; and if he wi...
The figures for the National Debt and debt service payments on the National Debt are taken from the Annual Reports of the National Treasury Management Agency. In 1997, the National Debt was equivalen...
Written Answers - Tax Code.
Was asked: if his attention has been drawn to an arrangement whereby stamp duty on a property transaction can be substantially avoided by using a company sale as an alternative vehicle for the transaction; and ...
Under the stamp duty code, liability to duty mainly arises where there is a conveyance or transfer of the legal title to certain property. It is the instrument of conveyance that is liable to stamp du...
Written Answers - Decentralisation Programme.
Was asked: the number of the proposed decentralisation moves announced in December 2003, in respect of which no property solutions have yet been identified.
The Decentralisation Programme envisages the relocation of some 10,600 civil and public servants to more that 50 locations outside of Dublin. By any standards, this represents a major undertaking, inv...
Written Answers - Tax Code.
Was asked: if he has instructed the Revenue Commissioners to conduct an estimate of under claiming of tax reliefs by taxpayers; and the latest estimate which he has of the extent of the problem.
I have not instructed the Revenue Commissioners to conduct an estimate of underclaiming of tax reliefs by taxpayers. Revenue advise me that in the current year to the end of October, they have made a...
Was asked: if his attention has been drawn to the escalation of stamp duty costs on young families; and his views on measures to relieve this.
I take it that the Deputy’s question relates to stamp duty on residential property. The rate of stamp duty on residential property is dependent on the status of the buyer (first time buyer or owner o...
Written Answers - Tax Yield.
Was asked: if the Revenue Commissioners Office have set an increased target level of random audits following from their findings that 30% of targeted businesses had a liability; his views on the implications of...
I am advised by the Revenue Commissioners that the objectives of their random audit programme are to measure and track compliance with tax legislation, validate Revenue’s risk analysis approach and en...
Written Answers - Aer Lingus.
Was asked: the proceeds received to date by the Exchequer from the sale of shares in Aer Lingus; and if these funds are to be placed under management by the NTMA.
To date the Exchequer has received €240,902,257.20 from the sale of shares in Aer Lingus. These funds have been lodged to the Exchequer and will be classified as in the Finance Accounts as Capital Rec...
Written Answers - Tax Code.
Was asked: if, further to the appearance of the Irish Charities Reform Action Group at the Finance Committee, there are proposals to alter the tax status of charities here; and if he will make a statement on th...
The position is that charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU Sixth VAT Directive, with which Irish VAT law must comply. This means they do n...
Written Answers - Financial Services Regulation.
Was asked: his views on calls from the Credit Union Development Association for a State savings protection scheme; and if he will make a statement on the matter.
There is no State savings guarantee for savers with Irish credit institutions generally. There is, however, a deposit protection scheme funded by credit institutions (other than credit unions) which ...
Written Answers - Tax Yield.
Was asked: his views on the dependence of the Government on revenue generated from taxes related to construction and consumption.
The main consumption related taxes are VAT and Excise duty. Taken together these two tax-heads were forecast to account for €18.6 billion or 45 per cent of total tax revenues in 2006, a very significa...
Written Answers - Construction Industry.
Was asked: if his attention has been drawn to reports that there has been a sharp increase in the number of construction companies making bad debt claims from their trade credit insurance policies and that the ...
I am aware of the reports referred to by the Deputy. My Department is not however, aware of this measure as a leading indicator of activity in the construction sector. The Deputy should note that ac...
Written Answers - Traffic Management.
Was asked: his views on the recent report published by the Office of Public Works in conjunction with consultants (details supplied) in relation to traffic management in the Phoenix Park.
The recent study commissioned from the independent firm of consultants, Faber Maunsell, following extensive consultation with interested groups, centres on traffic management in the Phoenix Park. Sin...
Written Answers - Financial Services Regulation.
Was asked: if the Financial Regulator has conducted a study into the penalty charges charged to consumers here by credit card companies; if there are proposals to regulate and limit these charges as has been en...
Credit card companies that fall within the definition of ‘credit institutions’ for the purposes of the Consumer Credit Act, 1995, must notify the Financial Regulator of any proposal to introduce or in...
Written Answers - Tax Yield.
Was asked: the expected rise in income tax receipts in 2007 as a result of termination of SSIA accounts; and if these moneys are being allocated to particular purposes.
My Department currently expects that there will be a gain to income tax in 2007 of approximately €600 million over 2006 arising from the discontinuance of the tax credit contribution to SSIAs and also...
Was asked: the absolute value of the increase and the percentage increase in total tax raised since 2002; and if he has satisfied himself with the tax policies underpinning this trend.
In 2002, Exchequer tax receipts amounted to €29,294 million. Receipts in 2006 in the October Pre-Budget Outlook were estimated at €43,850 million. This translates into an absolute increase of just ov...
Written Answers - Tax Code.
Was asked: his views on zero rating VAT on road safety products; and if he will make a statement on the matter.
The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the Sixth VAT Directive Member States may retain the...
Written Answers - Tax Collection.
Was asked: the amount paid to date to the Revenue Commissioners Office in respect of settlements made in connection with its investigation into the use of life assurance policies for tax evasion; and if he will...
I am advised by the Revenue Commissioners that they are conducting their investigation into the use by taxpayers of life assurance investment products for the purposes of tax evasion in two stages. In...
Written Answers - Ethics in Public Office.
Was asked: the circumstances in which a gift to a serving Minister will be deemed to be a conflict of interest under the purposed new amendment to rules governing Ethics in Public Offices.
The Deputy will be aware that office holders and members of the Dáil and Seanad may accept a significant gift in only limited circumstances. The Taoiseach and Tánaiste issued statements last month in...
Written Answers - Freedom of Information.
Was asked: the public bodies and agencies exempted from the full remit of the Freedom of Information legislation; and if he will make a statement on the matter.
There are currently over 500 public bodies subject to Freedom of Information. In general, when bodies are being brought within the remit of FOI, extension is in respect of all records held by these b...
Written Answers - Mortgage Credit.
Was asked: his position on an EU wide mortgage credit market.
I welcome the work of the Mortgage Expert Group which is investigating opportunities to integrate the EU mortgage market. Because of the scale of this market, at €4.7 trillion, and the expectation th...
Written Answers - Taxation Policy.
Was asked: if the objectives for tax policy set out in the 2002 Programme for Government remain the priorities for the last Budget within which they can be delivered; and if he will make a statement on the matt...
The Government’s approach to tax policy is set out in the Agreed Programme for Government and in recent Budgets and Finance Bills. Furthermore, under the Partnership Agreement, Towards 2016, the Gove...
Written Answers - Decentralisation Programme.
Was asked: the leases taken out by the Office of Public Works, by Government Departments or by State agencies since the announcement of the Government’s decentralisation programme in December 2003; the length o...
Written Answers - Inter-Agency Procurement Group.
Was asked: the procedures that have been put in place arising from the work of the inter-agency procurement group in his Department; and if he will make a statement on the matter.
An inter-agency procurement group, chaired by my Department, was established in late 2004 and began working in 2005 to determine how best to procure digital radio for the Irish public service, and mos...
Written Answers - Taxation Policy.
Was asked: the Government’s view on the potential for taxation to play a role in promoting energy efficiency and emission reductions.
Taxation, as I have previously stated, can play a part in attaining environment objectives which include promoting energy efficiency and reducing emissions. In this regard, the current National Clima...
Written Answers - Special Savings Incentive Scheme.
Was asked: the amount received to date by the Revenue Commissioners’ Office in respect of deductions of tax at maturity on maturing SSIA accounts; the total anticipated take by the Exchequer when all SSIAs have...
I am informed by the Revenue Commissioners that the tax arising on maturing SSIA accounts, in respect of accounts maturing in May, June, July, August and September 2006, was €99.3m. My Department curr...
Written Answers - Decentralisation Programme.
Was asked: if an estimate has been undertaken of the number of civil or public servants, who do not wish to relocate, who will be surplus to requirements as a result of their jobs being transferred to other loc...
Because of the nature of the programme it is not possible at this stage to estimate the number of public servants who do not wish to relocate as individual circumstances are open to change and therefo...
Written Answers - Tax Code.
Was asked: the rate of income tax paid by persons earning in excess of €100,000 per annum and upwards in bands of €20,000 per annum from the year 2000 to date in 2006, distinguishing between single persons and ...
I am informed by the Revenue Commissioners that the most recent basic data on incomes available from which information of the type requested by the Deputy could be derived are in respect of the income...
Was asked: if his attention has been drawn to the Danish Government making provision for the repayment of VAT paid on expenditure of charitable bodies; and the way such a provision sits with the position of the...
The position is that charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU Sixth VAT Directive, with which Irish VAT law must comply. This means they do n...
Was asked: his views on the implications for the Exchequer of the expected ruling of the European Court of Justice on the duty levied on goods bought in other EU states and delivered directly to the home owner ...
The court has not yet made its ruling in the case and therefore it is best at this stage to await the ruling and examine it fully before commenting any further.
Was asked: if his attention has been drawn to the recent study from the Combat Poverty Agency which shows that the increasing levels of indirect taxation is having a disproportionate effect on those on lower in...
I reject entirely the assertion that the indirect tax system has a disproportionate effect on those on lower incomes. A simple look at the facts will show that the conclusions in the report are misdir...
Written Answers - Investor Compensation Scheme.
Was asked: if he will report on the ICCL compensation scheme for clients of a company (details supplied); the percentage of clients who have received compensation to date; if reports that about half of the firm...
The total number of claims received by the Investor Compensation Company Limited (ICCL) by clients of this firm was 2,626. Of these, 2,099 clients have received compensation, which represents 80% of t...
Written Answers - Tax Code.
Was asked: if he will initiate a comprehensive review of the items to which VAT is applicable to ascertain the scope for introducing new anti-regressive and pro-energy and efficiency measures.
I do not agree with the view that the VAT system is inherently regressive. In fact, every effort is made, as far as EU law will permit, to reduce the incidence of VAT on low incomes. The position is t...
Written Answers - Financial Services Regulation.
Was asked: if there has been progress or an outcome to the regulatory inspection arising out of the in-depth investigation carried out (details supplied); if his attention has been drawn to the imminent resigna...
Regulatory inspections are the responsibility of the Registrar of Credit Unions under the Credit Union Act, 1997. My Department has been advised that arising out of governance difficulties in the cred...
Written Answers - Tax Code.
Was asked: if he is satisfied that it is not possible to avoid the stamp duty depending on the way the sale of commercial property is structured; and if he will make a statement on the matter.
Under the stamp duty code, liability to duty mainly arises where there is a conveyance or transfer of the legal title to certain property. It is the instrument of conveyance that is liable to stamp d...
Written Answers - Tax Collection.
Was asked: the outcome of the recent review of customs services at Weston Aerodrome; if an increased customs presence will be put in place at the same facility; and if he will make a statement on the matter.
I outlined to the House on 18 October 2006, in response to a previous question, that the Revenue Commissioners are conducting a review of licensed aerodromes and it is being dealt with as a priority m...
Written Answers - Tax Code.
Was asked: the way in which income tax policies since 1997 have benefited the least well off in society here; and if he will make a statement on the matter.
The position is that since 1997, the income tax policies pursued by this Government have resulted in more low-paid earners being outside the tax net than ever before. There are now over 776,000 incom...
Written Answers - Garda Stations.
Was asked: the status of the Office of Public Works refurbishment plan for Boyle Garda Station in County Roscommon; and if he will make a statement on the matter.
Was asked: the status of the Office of Public Works refurbishment plan for Roscommon Garda Station in County Roscommon; and if he will make a statement on the matter.
Was asked: the status of the Office of Public Works refurbishment plan for Strokestown Garda Station in County Roscommon; and if he will make a statement on the matter.
Was asked: the status of the Office of Public Works refurbishment plan for Clonark Garda Station in County Roscommon; and if he will make a statement on the matter.
Written Answers - Decentralisation Programme.
Was asked: the reason civil servants who have been offered positions under decentralisation are not being released by their Departments to take up their new assignments; the steps he is taking to resolve this p...
Discussions have concluded with the civil service unions on a number of human resource and industrial relations matters, including staff transfer protocols, and in the main these are working well. To...
Written Answers - Tax Code.
Was asked: the amount and maximum percentage of excise relief available to biofuel processors and suppliers; and if he will make a statement on the matter.
Section 50 of the Finance Act 2004 provided for the introduction of a limited scheme of relief from excise tax for biofuels. Under the Scheme, full 100% excise relief was granted to successful applic...
Written Answers - Tribunals of Inquiry.
Was asked: the statutory tribunals and their brief that have been put in place over the past 20 years; the costs and outlay to date for each tribunal; and if he will make a statement on the matter.
In so far as my Department is concerned, no statutory Tribunals have been initiated over the past 20 years. My Department does not have the detailed information sought by the Deputy on the briefs of ...
Written Answers - Public Private Partnerships.
Was asked: the progress with procurement of PPP projects; the areas that have been identified as most suitable for PPP; and if he will make a statement on the matter.
The PPP approach has the potential to offer value for money and timely delivery of infrastructure when applied to projects of the right scale, risk and operational profile. There has been good progre...
Written Answers - Special Savings Incentive Scheme.
Was asked: if the Revenue Commissioners have identified potential abuses of SSIA’s where there may be breaches of the declaration of the participation on commencement of the scheme; and if he will make a statem...
I am informed by the Revenue Commissioners that the SSIA scheme commenced in May 2001 and in excess of 1 million SSIA’s were opened by the closing date of 30th April 2002. The scheme itself is adminis...
Was asked: the number of SSIA’s that were opened under the scheme; the number that have matured or due to mature; the number that were cancelled or failed to mature; and if he will make a statement on the matte...
The SSIA scheme opened on 1 May 2001 and entry to the scheme closed on 30 April 2002. A total of 1,170,208 SSIAs were opened during this period. 86,569 SSIAs were ceased in the period 30 April 2002 to...
Written Answers - Tax Code.
Was asked: if a person (details supplied) in County Mayo will get the date for completion extended for their Section 23 relief in view of the circumstances in this particular case.
I am informed by the Revenue Commissioners that the general position in relation to such projects under the rural renewal and other schemes is that qualifying expenditure may be incurred for tax relie...
Was asked: the percentage of earners paying tax at the 42% rate; and if he will make a statement on the matter.
I am advised by the Revenue Commissioners that the most up-to-date estimates of the information requested by the Deputy are as follows: Numbers of income earners on income tax record These figures all...
Written Answers - Radon Gas Levels.
Was asked: if, in view of the fact that there was excessive radon levels in a third of schools here, his Department has plans or carried out tests for excessive radon levels in buildings under the control of or...
In 2004, my Department in accordance with the guidelines issued by the Radiological Protection Institute of Ireland undertook a programme for checking for the presence of Radon Gas in all buildings oc...
Written Answers - Departmental Expenditure.
Was asked: the quantity, cost and suppliers of energy used by his Department in the last year for which figures are available; if an audit has been carried out on his Department’s energy use; the details of sam...
The cost of energy used by my Department in 2005 was €306,017.75. The suppliers of energy were Texaco Ireland, Energia, Bord Gáis and the ESB. The quantities of energy used are not readily identifiabl...
Written Answers - Decentralisation Programme.
Was asked: the use, locations and costs to date of lands acquired or contracted to acquire, buildings purchased, built or leased, acquired or contracted to purchase, build or lease under the decentralisation pr...
Written Answers - Departmental Expenditure.
Was asked: the quantity, cost and suppliers of water, both tap and bottled, acquired by his Department for its own use in the last year for which figures are available; and if he will make a statement on the ma...
The total cost of water acquired by my Department in 2005 amounted to €23,728.87. This amount includes payments to Dublin City Council, All Water Systems and Tipperary Natural Mineral Water. The cost...
Written Answers - Price Inflation.
Was asked: the extent and the steps taken to address inflation arising from items not included in the CPI.
The Director General of the Central Statistics Office (CSO) has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used in compiling th...
Written Answers - Tax Yield.
Was asked: the extra revenue expected by way of VAT returns arising from recent gas and electricity price increases in a full year; and if he will make a statement on the matter.
I am informed by the Revenue Commissioners that the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is, therefore, not possi...
Was asked: the expected revenue accruing from VAT on gas and electricity at the end of 2006 as compared with year ending 31 December 1997; and if he will make a statement on the matter.
I am informed by the Revenue Commissioners that the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is, therefore, not possi...
Written Answers - Tax Code.
Was asked: the taxation per litre of petrol or diesel; and if he will make a statement on the matter.
The Excise duty on a litre of petrol and diesel is 44.3 cent and 36.8 cent respectively. Petrol and auto diesel are subject to the standard VAT rate which in Ireland is 21%.
Was asked: if he will offer further tax incentives to the producers of alternative fuels, such as bio-diesel, ethanol or other such fuels; and if he will make a statement on the matter.
While the promotion of biofuels and other renewable energy is primarily a matter for my colleague, the Minister for Communications, Marine and Natural Resources, I am pleased to inform the Deputy that...
Written Answers - Disabled Drivers.
Was asked: when it is expected to implement the recommendations of the inter-Departmental group dealing with the Disabled Drivers Disabled Passengers Tax Concession Regulations 1994; and if he will make a state...
A special Interdepartmental Review Group reviewed the operation of the Disabled Drivers Scheme. The terms of reference of the Group were to examine the operation of the existing scheme, including the...
Written Answers - Financial Services Regulation.
Was asked: if he is satisfied that adequate steps have been taken through the banking and financial services sectors, here and throughout Europe, to prevent money laundering; and if he will make a statement on ...
Anti-Money Laundering procedures in Ireland and throughout the European Economic Area are governed by the 1st and 2nd Money Laundering Directives. Those Directives were recently updated by the 3rd M...
Written Answers - Economic Competitiveness.
Was asked: if he has identified the inflationary tendencies which might lead to the lack of competitiveness in the economy; and if he will make a statement on the matter.
Enhancing national competitiveness is a key priority for this Government. The Government is keenly aware of the importance of Ireland’s exporting sectors to investment and jobs — and in turn of the i...
Was asked: if he is satisfied regarding the continued competitiveness of the economy with particular reference to inward investment; and if he will make a statement on the matter.
The Government’s economic and budgetary strategy is based on pursuing economic growth and full employment as the basis of continued prosperity and enhanced living standards for all. In this regard ma...
Written Answers - Credit Union Regulation.
Was asked: if he has received correspondence from the Credit Union Development Association; his views on establishing a task force of key stakeholders with the objective of determining the legislative, regulato...
I am aware of the report referred to by the Deputy and welcome all contributions to the debate regarding the future development of the credit union movement. The Deputy should note, however, that many...
Written Answers - Garda Stations.
Was asked: the status of the Office of Public Works refurbishment plan for Ballinasloe Garda Station in County Galway; and if he will make a statement on the matter.
Was asked: the status of the Office of Public Works refurbishment plan for Elphin Garda Station in County Roscommon; and if he will make a statement on the matter.
Was asked: the status of the Office of Public Works refurbishment plan for Ballintubber Garda Station in County Roscommon; and if he will make a statement on the matter.
Written Answers - Tax Code.
Was asked: the estimated average value of tax and PRSI concessions on contributions to approved pension schemes including occupational schemes, AVCs, PRSAs and self-employed and director arrangements to PAYE pa...
I am informed by the Revenue Commissioners that the latest relevant figures available are in respect of the income tax year 2003. Figures in respect of employee contributions to occupational pension s...
Written Answers - Pension Provisions.
Was asked: the estimated amount including AVCs and PRSAs paid by Irish taxpayers into pension plans and schemes approved by the Revenue Commissioners Office in each of the last most recent three years for which...
I am informed by the Revenue Commissioners that figures of contributions to “Retirement Annuity Contracts” (RACs), which are available to the self-employed and to employees not in occupational pension...
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