Written Answers Nos. 319-332
326. Deputy Pearse Doherty asked the Minister for Finance the revenue allocated to the disabled drivers and disabled passengers scheme in 2023 and 2025, respectively; if the amount allocated for 2025 is in the tax base, as per the Summer Economic Statement; and if he will make a statement on the matter. [35426/23]
View answer327. Deputy Pearse Doherty asked the Minister for Finance if the grant scheme to replace the disabled drivers and disabled passengers scheme is provided for in either the expenditure or tax base for 2025, as per the Summer Economic Statement; if so, the numerical impact with respect to same; and if he will make a statement on the matter. [35427/23]
View answerI propose to take Questions Nos. 326 and 327 together.
The Deputy should note at the outset that no Government decision has been made on the replacement of the Disabled Drivers and Disabled Passengers scheme (DDS) with a grant scheme. Therefore, no provision has been made for it in either the expenditure or tax base for 2025.
This matter is under consideration. The Department of the Taoiseach has convened a Senior Officials Group (SOG) to discuss how proposals of the NDIS TWG final report - including a possible grant-aided, needs-based vehicular adaptation scheme to replace the DDS - can be progressed. A first meeting was held on 3rd July 2023. My officials are engaging and actively contributing to discussions on this matter. However, it will be a matter for the SOG and for Government to determine any timelines or next steps as may be decided.
In relation to the revenue allocated to the DDS in 2023 and 2025, respectively, the Deputy should note that as a tax expenditure measure with no sunset clause, it is built into the tax base.
I am advised by Revenue that the cost of the disabled drivers and disabled passengers scheme in 2022 and for the year to date in 2023 is as follows:
|
Repayment Type |
2022 €m |
YTD June 2023 €m |
|
VAT |
27.4 |
15.8 |
|
VRT |
37.0 |
20.9 |
|
Fuel Grant Repayments |
9.8 |
7.4 |
|
Total |
74.2 |
44.1 |
The value of reliefs and exemptions for the disabled drivers and disabled passengers scheme for previous years is available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.csv
It is not expected that there will be a major increase in tax foregone from the figures above in the next number of years, should the existing scheme remain in place.
Finally, the DDS fuel grant is paid, as direct expenditure, through the Department of Finance Vote 7. Per annum costs of the fuel grant payment is c. €10 million per annum. It is expected that a similar amount of money will be allocated for the fuel grant in 2025, should the existing scheme remain in place.
329. Deputy Pearse Doherty asked the Minister for Finance his Department’s projections of the increased corporation tax revenue generated in annual terms as a result of Pillar One of the OECD Agreement; and if he will make a statement on the matter. [35451/23]
View answerI understand that when the Deputy refers to increased revenue generated as a result of the OECD Agreement, he is referring to Pillar Two of that agreement dealing with the adoption of a global minimum effective tax rate of 15%.
In October 2021 Ireland, along with almost 140 other countries in the OECD/G20 Inclusive Framework, signed up to an historic agreement to reform the international tax framework as it applies to large corporate groups.
Recognising how multi-national enterprises (MNEs) across the globe now operate commercially and generate value, this significant reform will ensure that the international tax framework keeps pace with these developments in a coordinated way.
Building on the original Base Erosion and Profit Shifting (BEPS) project, the agreement contains a two-pillar solution to address the tax challenges arising from digitalisation and globalisation.
Pillar One will see a reallocation of 25% of residual profits to the jurisdiction of the consumer. Scope is confined to multinational groups with turnover in excess of €20 billion annually. Residual profit is profit greater than 10% of turnover. The threshold will reduce to €10 billion after 7 years.
Pillar Two of the agreement will see the adoption of a global minimum effective tax rate of 15% applying to multinational companies with global revenues in excess of €750m.
Ireland will retain its 12.5% corporation tax rate on trading profits for the 95% of companies in Ireland that are out of scope of the agreement.
Pillar Two will be implemented in Ireland largely via the EU Minimum Tax Directive, which was agreed in December 2022 and has a transposition deadline of the end of 2023. Work on implementing the Directive is well underway in my department.
It is important to recognise that the minimum corporate tax rate is only one element of the OECD Two Pillar agreement. Any projected changes to corporation tax yields following implementation must also take into account Pillar One, which provides for a reallocation of certain profits to market jurisdictions. It is expected that implementation of Pillar One will come at a cost to Ireland.
An initial estimate of the potential cost of implementation of both pillars of the OECD agreement in terms of reduced tax receipts was published in 2020 as being potentially in the region of €2 billion per annum - approximately 20% of CT revenue at that time. This remains as the estimate used for budgetary purposes currently as it continues to be very difficult to accurately estimate the full impact while so many aspects of the OECD agreement remain undecided. The outcome of these discussions, coupled with the future business decisions of multinationals, will have significant implications for our future corporation tax receipts – the scale of the effect will only become fully known with time.
My officials continue to keep the cost of the Agreement under review. As more detail emerges in the coming months, it is hoped that we will be in a position to publish revised estimates resulting from implementation of the agreement .
As indicated, Pillar One will come at a cost as some taxing rights are allocated to market jurisdictions but we believe that this is a price that is worth paying for the long term stability of the intentional tax framework.
330. Deputy Gary Gannon asked the Minister for Finance if an in-person meeting could be arranged for an individual (details supplied) to address an ongoing issue they have had with Revenue. [35473/23]
View answerI am advised that Revenue provides a wide range of service channels to taxpayers who require assistance including online, phone, postal and an appointment service.
The Appointment Service offers both virtual and in-person appointments, eliminating waiting times and allowing taxpayers to choose a time convenient for them. An appointment can be made through Revenue’s dedicated appointments phone service, 01 738 36 60, or alternatively, taxpayers can visit one of four Revenue Offices located in Dublin (Cathedral Street, Dublin 1), Cork (Revenue house, Blackpool), Galway (Geata na Cathrach, Galway) and Limerick (Sarsfield House, Francis Street, Limerick) to make an appointment.
331. Deputy Rose Conway-Walsh asked the Minister for Finance to outline the internships, apprenticeships and graduate schemes run by his Department and public bodies under the aegis of his Department. [35485/23]
View answerI wish to inform the Deputy that my Department does not currently run any internships, apprenticeships or graduate schemes.
We do recruit via the Administrative Officer graduate entry campaign conducted by the Public Appointments Service and the Department of Public Expenditure, National Development Plan Delivery and Reform's Irish Government Economic and Evaluation Service (IGEES) graduate programme.
Information on internships, apprenticeships and graduate schemes run by a number of bodies under the aegis of my Department is set out below.
Central Bank of Ireland
Graduate programme
The intent of the graduate programme is to build a bench strength of high potential Bank Executive-level talent in regulation and central banking as well as difficult to acquire skills in niche areas such as IT & Data Analytics who have the potential for future growth and progression. The programme is 3 years in length which includes 2 x 18 month rotations. Graduates can apply to 3 streams: Actuarial, Data, Digital & Technology and Supervision, and Policy and Risk.
Internship programme
The internship programme offers students 9–12 month academic internships. The internships are offered in a number of business areas across the Bank to include, but not limited to, Financial Operations, Human Resources, Data Analysis, Policy and Risk, Economics, Consumer Protection, Credit Institutions Supervision, Insurance Supervision, Markets Supervision, Legal, Enforcement and Information Technology. Applicants must be in their second year or penultimate year of their course when applying to the programme.
Scholarship programme
The Scholarship Programme, in partnership with Griffith College, is designed to identify and nurture talent and to support motivated individuals to start a career while pursuing further education. Students can choose to study one of three courses part-time which are at level 8 on the NFQ; BA (Hons) in Accounting & Finance, BA(Hons) in Business Studies and BA(Hons) in Business Studies (HRM). Each course is 3 years in length and successful candidates will join the Bank on a 4 year fixed-term contract at Bank Officer level.
The Investor Compensation Company DAC is a body under my Department's remit, to which the Central Bank assigns staff.
Irish Fiscal Advisory Council
The Irish Fiscal Advisory Council runs an annual Summer Internship Programme. The internships are two remunerated temporary posts each lasting up to twelve weeks over the summer months and are open to those currently engaged in an undergraduate or postgraduate degree programme in Economics.
The Fiscal Council also offers support for a partial PhD Scholarship Programme for research in the area of fiscal policy. This pilot collaborative programme was introduced for the first time in 2023 and will entail both financial and supervisory support to one candidate.
National Treasury Management Agency
The NTMA Graduate Programme is designed to inspire, develop and challenge future leaders. The current programme is 24 months in duration and provides opportunities across the different business units of the NTMA. There are 18 graduates on the current NTMA Graduate Programme.
As part of its Inclusion and Diversity initiatives, the NTMA has participated in an Access Programme. In 2022, it accepted one intern through this programme for a period of four and a half months. In previous years, the NTMA has also facilitated paid placements for college students. It does not currently facilitate an apprenticeship programme.
The NTMA assigns staff to Home Building Finance Ireland, the National Asset Management Agency and the Strategic Banking Corporation of Ireland.
Office of the Comptroller and Auditor General
The Office of the Comptroller and Auditor General (OCAG) currently has internship arrangements with two Universities. These students are required to do work placements as part of their college courses. The placement is usually for a duration of 9-12 months. As at 30th June 2023, the OCAG employed 8 students.
The OCAG currently has an arrangement with the Accounting Technicians of Ireland for apprentices. The Accounting Technician Apprenticeship Programme is a two-year, work-based learning education training programme which is delivered by Accounting Technicians Ireland in partnership with local colleges and registered employers. The training generally consists of one day off-the-job training and education in a local college and four days on-the-job training in the relevant workplace. As at 30th June 2023, the Office employed 2 apprentices.
OCAG examines its capacity and options annually to maximise the potential opportunities to provide work experience and internships. In terms of graduate schemes, it takes on a cohort of Trainee Auditors at least once a year. The number of vacancies varies annually. As at June 30th , the Office has 50 part-qualified trainee auditors. This is open to anyone that wants to pursue an accountancy qualification but the advert is aimed at graduates who want to pursue a course of professional studies leading to a qualification with one of the recognised accountancy bodies.
Office of the Revenue Commissioners
Revenue is involved in the apprenticeship planning group being hosted by Department of Further and Higher Education, Research, Innovation and Science which is based on the commitment in the ‘Action Plan for Apprenticeship 2021-2025’ to grow the number of apprenticeship registrations across the public service, including local authorities, to reach 750 annual registrations by 2025. This represents in excess of a seven-fold increase on 2020 registrations and will support a long-term goal of 7% of the apprentice population being employed by public service employers. As part of this, Revenue has received approval from the National Apprenticeship Office (NAO) and SOLAS to employ apprentices on designated apprenticeship programmes.
Revenue is currently engaged in the following programmes:
Information and Communications Technology (ICT) Apprenticeships 2023-2025
Revenue recently recruited 8 apprentices under the 2023 Civil Service ICT Apprenticeship Programme that is being run in conjunction with Fastrack into Information Technology (FIT), the national coordinating provider for ICT Apprenticeships. The apprentices are employed at EO level, on a full-time basis for the 2-year programme. Those who successfully achieve all programme elements will attain a Quality and Qualifications Ireland (QQI) Advanced Certificate Award placed at Level 6 on the National Framework of Qualifications (NFQ). The apprentices will attain one of the following qualifications:
• Advanced Certificate in Software Development (Computer Programming)
• Advanced Certificate in Network Engineering (Computer Networking)
• Advanced Certificate in Cybersecurity.
Willing Able Mentoring Programme (WAM) Work Experience Placement 2022 & 2023
WAM is a work placement programme which aims to promote access to the labour market for graduates with disabilities and build the capacity of employers to integrate disability into the mainstream workplace. Revenue employed 5 WAM candidates during 2022 and will participate in the 2023 programme.
Last year was the first year of this programme’s innovative and inclusive route to permanency for candidates on this programme. 17 of the 22 candidates across the Civil Service that applied for a permanent role, on completion of a successful work placement, were assigned to full time posts in the Civil Service including three candidates that were assigned to Revenue in a permanent capacity.
Oireachtas Work Learning (OWL) Work Experience Placement 2023
The OWL Trainee Programme was established in the Houses of the Oireachtas Service in 2018 as a partnership programme with KARE, WALK and the Houses of the Oireachtas. It is also supported by the Department of Public Expenditure, National Development Plan Delivery and Reform (DPENDPDR) and the Public Appointments Service. The training programme for 10 adults with an intellectual disability is hosted by the Houses of the Oireachtas Service and run by KARE and WALK co-ordinators. The training element is delivered by City of Dublin Education and Training Board. The programme takes place between September and June each year with each trainee completing three work experience placements (10-12 weeks each) along with the education programme delivered by City of Dublin Education and Training Board. Some of the QQI Level 3 modules completed by trainees include Career Preparation and Health and Safety in the Workplace. Revenue has three expressions of Interest in the OWL programme in 2023.
Internships 2023
Revenue has operated an Internship Programme for a number of years. During this time, it has worked with a variety of colleges throughout Ireland and built-up excellent relationships with them.
In 2023, Revenue sought and received DPENDPDR sanction (which is a yearly request) to appoint up to 23 interns for periods of 6-9 months in the following specialist areas:
• ICT – Internship roles across units within our large ICT & Logistics (ICT&L) division include supporting end users in our organisation to maximise their use of ICT and digital services, as well as helping to manage our ICT services across a range of leading technologies and solutions, including ICT Service Desk operations. 10 interns to date have been allocated to the 2023 ICT&L internship programme.
• Larger Corporates Division – Interns will complete a deep analysis and a review of the corporate group structures in place as well as a separate division-wide project in data analysis. Two interns to date have been allocated to the 2023 LCD internship programme.
• Economic Research – The interns will be involved directly in contributing to several projects or research papers from the Unit’s business plan for 2023. These may include working on topics such as Income Tax reform, Excise elasticity analysis, forecasting of tax receipts, international taxation issues and preparing briefings on the economic outlook for Revenue senior management.
• Websites Operations Unit –The intern will gain practical experience of working on a large and complex website, with an opportunity to contribute to the achievement of high-level goals including performance improvement using analytics, website review and web accessibility.
• Accountant Generals Branch – The intern will be part of a project team carrying out functions including but not limited to, updating an overarching description of receipting and repayments systems, assessing further opportunities for integration, highlighting key risks and controls and assurance mapping and liaising with business owners. Five interns to date have been allocated to the 2023 Accountant General & Strategic Planning Division (AG&SPD) internship programme.
332. Deputy Bernard J. Durkan asked the Minister for Finance the appropriate tax-free allowance/tax cut-off point in the case of a person (details supplied); and if he will make a statement on the matter. [35565/23]
View answerI am advised by Revenue that while the person concerned is currently in receipt of the appropriate tax credit and rate band allocations, they are not distributed evenly between their PAYE income sources on record.
In addition, the person concerned is in receipt of State Contributory Pension payments from the Department of Social Protection (DSP). Where a person has a PAYE source of income only, their annual tax credits and rate band are reduced to take account of any taxable DSP payments, thereby ensuring the tax due is automatically collected through the payroll system. This means that the tax due on the DSP payment is being collected from the person concerned by reducing their tax credits on their PAYE income.
Revenue will engage directly with the person concerned to finalise the matter and ensure that their tax credit and rate band allocations are distributed evenly between their PAYE income sources going forward.
