Holly Cairns
Question:260. Deputy Holly Cairns asked the Minister for Transport the progress made towards action 100 of the National Disability and Inclusion Strategy 2017-2021. [38096/21]
View answerRights of People with Disabilities
Questions (260)
Written answers
Action no. 100 in the National Disability Inclusion Strategy (NDIS) is assigned to my Department, the National Transport Authority (NTA) and the public transport operators.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
Under the Dublin Transport Authority Act 2008, the NTA has statutory responsibility for promoting the development of an integrated, accessible public transport network. The NTA works with the relevant public transport operators, who have responsibility for day to day operational issues, to progressively make public transport accessible.
From a policy perspective we are progressively making public transport accessible by ensuring that new infrastructure and services are accessible from the start and retro fitting older facilities to make them accessible.
My Department’s high level policy goal for accessible public transport is embodied in the concept of ‘Transport Access for All’. This policy is based on the Disability Act 2005, key national strategies, including the NDIS and the Comprehensive Employment Strategy for People with Disabilities (CES) 2015-2024 and the United Nations Convention on the Rights of People with Disabilities (UNCRPD).
As well as these two key national strategies, there are also public transport accessibility related actions in a range of other Departmental and “whole of Government” strategies where lead responsibility has been assigned to my Department, the NTA and the public transport Agencies. All these actions across all such strategies have been combined into my Department’s Accessibility Work Programme. The actions in the Work Programme are grouped under 11 broad Themes to reflect the priority actions in the NDIS, including action no. 100, the CES, and the UNCRPD.
The Department of Transport’s Accessibility Work Programme is updated regularly to align with meetings of the NDIS Steering Group, and meetings of the Department’s Accessibility Consultative Committee (ACC). The most recent meetings of the ACC and the NDIS Steering Group were on 02 June and 15 June 2021 respectively. All of the Department’s Work Programme Progress Reports from 2017 to 15 June 2021, can be found at
www.gov.ie/en/collection/ed138c-work-programme/. Each Progress Reports contains updates in relation to the NDIS, including Action no. 100.
Housing Schemes
Questions (261, 274)
Paul McAuliffe
Question:261. Deputy Paul McAuliffe asked the Minister for Finance his plans to extend the help to buy scheme; and if he will make a statement on the matter. [37207/21]
View answer
Alan Kelly
Question:274. Deputy Alan Kelly asked the Minister for Finance if it is likely that the help to buy scheme will be extended into 2022; and if not, if it will cease on 31 December 2021. [37629/21]
View answerWritten answers
I propose to take Questions Nos. 261 and 274 together.
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
The position is that, as part of the normal course of events, the future of the HTB scheme beyond its current sunset date of 31 December 2021 is a matter that will fall to be considered in the context of Budget 2022 and the subsequent Finance Bill.
Housing Schemes
Questions (262)
Paul McAuliffe
Question:262. Deputy Paul McAuliffe asked the Minister for Finance the length of time a person who has been approved for the help to buy scheme has before the tax rebate expires given the delay in construction due to Covid-19 earlier in 2021; and if he will make a statement on the matter. [37208/21]
View answerWritten answers
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
In summary, the process to claim HTB involves two stages, application stage and claim stage. At the application stage, the claimant notifies Revenue of his/her intention to make a HTB claim and checks are carried out to ensure the applicant satisfies certain conditions of the scheme. Once confirmed, Revenue notifies the applicant about the potential HTB refund available.
Section 477C (8) provides:
"An application made in any tax year shall cease to be valid on the earlier of the following events:
(a)(i) failure by the applicant to satisfy the conditions specified in subsection (6)(b);
(ii) on the rescission of the applicant’s tax clearance certificate in accordance with subsection (3A) of section 1095; or
(iii) on the falling of 31 December in the tax year in which the application is made.
(b) Notwithstanding paragraph (a) and subsection (25), where an application is made under this section in the period commencing on 1 October and ending on 31 December in any of the tax years [2017 to 2021] (hereafter in this paragraph referred to as the “first-mentioned period”), and the corresponding claim is made under subsection (3) in the period commencing on 1 January and ending on 31 March of the following year, the applicant shall be deemed to have made his or her claim in the first-mentioned period.
(c) No claim may be made on foot of an application which ceases to be valid in accordance with paragraph (a)."
In respect to point (a)(iii) above, for example where an application is made during the period 1 October to 31 December 2021, and a claim is made on foot of such an application in the period 1 January to 31 March 2022, the claim will be deemed to have been made in 2021. In such cases, where the corresponding claim is made between 1 January and 31 March of the following year, the claim will be deemed to be made in the prior year. However, the timeframe for entering into a contract to purchase or, in the case of a self-build, to have drawn down the first tranche of a qualifying loan does not change, the end date of 31 December 2021 for so doing still applies.
Revenue Tax and Duty Manual Part 15-01-46 outlines further guidance on the conditions and operation of the HTB scheme.
As part of the normal course of events, the future of the HTB scheme beyond its current sunset date of 31 December 2021 is a matter that will fall to be considered in the context of Budget 2022 and the subsequent Finance Bill.
Covid-19 Pandemic Supports
Questions (263)
Mark Ward
Question:263. Deputy Mark Ward asked the Minister for Finance if the wage subsidy scheme will be tapered to allow for businesses that record varying profits which may take them just under the expected 30% reduction in turnover; and the outcome for businesses that record a 29% reduction at the end of the period with regards to the scheme. [37219/21]
View answerWritten answers
Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. On 1 June, the Government approved the extension of EWSS to 31 December 2021 as a key policy instrument to continue to provide the necessary employment support for eligible businesses.
Regarding eligibility for the scheme up until 30 June 2021, an employer had to be able to demonstrate that his or her business would experience a 30% reduction in turnover or orders between 1 January and 30 June 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic.
However, the position is that for EWSS claims from 1 July 2021, the reference period against which the turnover condition will be judged has been broadened out from a six month period to a full year so that turnover in the full year 2021 is compared with that for the full year in 2019, with appropriate arrangements for qualifying businesses who may not have been in operation for all of 2019. All other things being equal, this should allow a greater number of firms to qualify for the scheme than would be the case if the a six month reference period along the lines of that mentioned above had been retained. At the same time, the existing requirement for a 30% decrease in turnover is being retained and there are no plans at the present time to modify same in the manner mentioned by the Deputy.
With some businesses remaining closed or limited in their capacity to trade due to the public health restrictions in place, upon the resumption of normal trading, such businesses can potentially generate turnover or customer orders of up to 70% of their full turnover/customer orders for 2019 during the remainder of 2021 and may remain eligible to claim support under the scheme.
I would also point out that the EWSS legislation requires that immediately at the end of each month, from the introduction of the scheme in August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.
To assist employers in conducting a monthly review of its continuing eligibility for the scheme, Revenue is providing an EWSS Eligibility Review Form through its Revenue Online Service (ROS). From 21 July 2021, completing and submitting an EWSS Eligibility Review Form to Revenue will be necessary to avail of EWSS supports, with details of an employer’s monthly eligibility review check to be submitted by the 15th of the following month. For example, the eligibility review undertaken on the last day of July will need to be completed and submitted to Revenue by 15 August.
Timely submission of the form will provide assurance to both employers and Revenue that subsequent EWSS claims are appropriate and in line with the terms of the scheme. This, together with Revenue’s EWSS ongoing real-time compliance program, will reduce the possibility of employers, inadvertently or incorrectly, claiming EWSS amounts to which they are not entitled and having to subsequently repay those amounts to Revenue.
Where businesses do not meet the requisite 30% turnover reduction, Revenue will not seek repayment of EWSS claimed on foot of projections which are robustly prepared, reflect the actual trading environment throughout the period they cover, and differed from the actual position by an immaterial amount. However, if the projections prepared together with actual results to date do not meet the 30% reduction, the business should deregister for EWSS and cease submitting additional claims.
Finally, employers must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance for the duration of the scheme.
Customs and Excise
Questions (264)
Michael McNamara
Question:264. Deputy Michael McNamara asked the Minister for Finance the reason shipments which have been routed orange at customs which means they have been stopped for document inspection are taking up to three weeks to be cleared which is causing hardship to small businesses which have already paid the very high costs of excise on the sale of goods; and if he will make a statement on the matter. [37241/21]
View answerWritten answers
I am advised by Revenue that where shipments are not green routed on arrival in Ireland, the time taken to resolve the matter is dependent on the specific issue that has given rise to the orange or red routing, the time taken to provide any supporting documentation needed on foot of a request from Revenue or another State agency and whether a physical inspection of the shipment is required. Revenue and the other State agencies clear shipments as quickly as possible once the business provides the necessary information or documentation.
I am further advised by Revenue that it is unaware of delays of three weeks once the necessary supporting documentation is provided. Revenue is aware of delays that occur prior to the provision of such information where the importer has difficulties obtaining the relevant information from other parties in the supply chain or where there is a breakdown in communications along the supply chain. Where a business encounters delays in clearing shipments, the business should contact Revenue on the Revenue Customs helpline - 01-7383685. The Customs helpline is manned on a 24/7 basis in order to assist businesses moving shipments through our ports and airports. In addition, Revenue also has a Brexit Queries mailbox - BrexitQueries@revenue.ie. If the Deputy forwards details of any instances where there have been such delays to my Department we will follow up with Revenue. Alternatively, he can forward details directly to Revenue for follow up.
Financial Services
Questions (265)
Paul Murphy
Question:265. Deputy Paul Murphy asked the Minister for Finance if his attention has been drawn to the recent collapse of an unregulated trust (details supplied); if his attention has been further drawn to the fact that brokers involved with an organisation sold investment policies in the trust to domestic savers in Ireland in September 2019, despite the BBC having reported in May 2019 that the trust was a scam and without advising those savers that the trust was unregulated; his views on whether more regulations are required in this area to prevent brokers for knowingly or negligently mis-selling in return for high commission such unregulated and high-risk investment policies in such a trust to Irish domestic savers who lost their savings when the trust collapsed; if he will introduce any necessary amendments to the relevant legislation to render any brokers who engage in activity as described as liable either on grounds of deception, negligence or failure to conduct due diligence; and if he will make a statement on the matter. [37265/21]
View answerWritten answers
I am aware of this issue and am conscious of the distress that has occurred in relation to this matter. In the first instance, the Central Bank is the independent regulator for financial services and as such it determines what measures or actions need to be taken in relation to any potential or actual wrongdoing by regulated financial service providers. The Central Bank has stated that it will continue to engage with domestic and European counterparts to determine if further action is needed to ensure additional clarity for investors on the implications of investing in unregulated products of this nature.
On the specific matter of the sale of unregulated investment products in this jurisdiction, European and Irish legislation requires the regulation of financial services firms providing investment services in relation to investment products. The law is prescriptive and lists the various type of investment services and investment products falling to be regulated. Regulated firms may also sell investment products which are not specifically mentioned in the law (i.e. unregulated products). Consequently regulated firms are not prohibited from providing services in relation to unregulated products. Where they do so, certain investor protections, which apply to regulated activities, are not applicable to unregulated products.
However, regulated firms subject to the Central Bank’s Consumer Protection Code (CPC) that provide financial services to consumers in relation to unregulated financial products, must comply with provisions 4.8 and 4.9 of the Central Bank’s CPC. These provisions state the following:
4.8 A regulated entity may only use the regulatory disclosure statement in communications with a consumer where such communications relate solely to a regulated activity.
4.9 A regulated entity must have separate sections on any website it operates, for regulated activities and any other activities which it carries out.
In addition to the above, the Pensions Authority is currently investigating if there are any pension scheme trustee duty issues of concern related to this case. The Pensions Authority has a mandate to investigate the behaviour and activities of Pension Scheme Trustees, and it has been noted that the relevant pension vehicles which are involved in this case are one member arrangement schemes, known as small self-administered schemes (SSAPs) and non-standard Personal Retirement Savings Accounts (PRSA). You will appreciate that it will be for the Pensions Authority to take whatever actions it deems appropriate under its mandate.
Consumers may have recourse to the Financial Services and Pensions Ombudsman (FSPO) in relation to financial services provided to them by regulated firms. The FSPO is the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. It is worth noting that the FSPO is empowered to investigate complaints of mis-selling by regulated financial service providers and has carried out investigations in this area in the past. If a consumer wishes to pursue a complaint in relation to a regulated financial service provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the FSPO.
The FSPO has the power to direct a financial service provider to pay compensation of up to €500,000 to a complainant. The FSPO can also direct that a financial service provider rectify the conduct that is the subject of the complaint. There is no limit to the value of rectification he can direct.
I trust that this helps to clarify the position.
Departmental Reviews
Questions (266)
Holly Cairns
Question:266. Deputy Holly Cairns asked the Minister for Finance the details of the social impact assessments carried out by his Department and public bodies and agencies under his remit since 1 January 2016; and if he will make a statement on the matter. [37293/21]
View answerWritten answers
While formal Social Impact Assessments as set out by the Department of Public Expenditure and Reform are mainly carried out in relation to expenditure matters, my Department has placed an increased focus upon such analysis of budgetary policy in recent years.
Most recently, in Budget 2020 and Budget 2021, my Department published a distributional analysis of the taxation and welfare measures introduced in each Budget carried out using the ESRI’s micro-simulation model ‘SWITCH’. This analysis is available on budget.gov.ie and shows that each of those Budget packages were broadly progressive. In relation to Budget 2021, this analysis concluded that the lowest four income deciles benefitted the most as a proportion of disposable income, a finding which was supported by the ESRI’s own analysis of the budgetary package.
Over Budgets 2017-2021 my Department also published an analysis of the progressivity of the income tax and welfare system. This is a cross country comparison of the degree to which our tax and welfare systems reduce income inequality, as measured by the Gini coefficient. The latest analysis showed that Ireland recorded the second highest reduction in income inequality in the OECD between market incomes, i.e. before tax and welfare measures, and disposable incomes, after tax and welfare measures.
Outside of the budgetary process, as part of the review of the Local Property Tax in 2019, the distributional impact which a number of illustrative scenarios could be expected to have on levels of disposable household income was modelled across varying income deciles, and results shown relative to a no policy change baseline using the ESRI’s SWITCH model. This distributional impact assessment was undertaken in order to assess the relative progressivity of each scenario.
In addition, for a number of years, the annual Tax Strategy Group (TSG) paper on income tax has provided an overview of the distribution and burden of income tax and USC across income earners. Depending on the particular issue(s) under consideration by the TSG in any given year, further social impact assessments may be included in the TSG paper. For example, the recent income tax TSG papers included analysis in respect of equality proofing and gender proofing of certain aspects of the income tax system. In addition, the Department of Finance regularly carries out reviews of tax expenditures. By way of example, the Home Carers Tax Credit was reviewed in 2019 and included an assessment of the credit in terms of its impact on gender and household income coverage.
Finally, in recent years, there has been increasing moves internationally to broaden attempts to estimate the living standards of the population beyond traditional aggregate economic statistics such as GDP. In recognition of this, my Department published a paper on Well-being and the Measurement of Broader Living Standards in Ireland with Budget 2021. The Programme for Government also committed to developing new measures of well-being in order to create a broader context for policy-making. An expert group to guide the development of a national well-being framework has now been convened through the Department of the Taoiseach, with the Department of Finance a member and a joint sponsor of the work. It is anticipated that the new well-being measures can serve, over time, as a useful reference for a range of policy and budgetary reform initiatives which are currently underway, including: performance budgeting, equality budgeting, spending reviews and proofing of policy proposals against environmental and other goals.
As the development of budgetary policy is not within their remit, the bodies under the aegis of my Department do not undertake social impact assessments.
Tax Code
Questions (267)
Gerald Nash
Question:267. Deputy Ged Nash asked the Minister for Finance when the public consultation process on the OECD corporation tax proposals will commence; the terms of reference for the process; and if he will make a statement on the matter. [37318/21]
View answerWritten answers
On 1 July 2021, the OECD Inclusive Framework reached agreement but not full consensus on key aspects of the two-pillar solution to address tax challenges arising from digitalisation and globalisation.
Pillar One proposes a re-allocation of a proportion of tax to the market jurisdiction, while Pillar Two seeks to apply a global minimum effective tax rate. Work will now continue with a view to finalising a comprehensive agreement in October.
Ireland has fully supported the Pillar One proposals. This is in recognition that the way in which business is conducted has evolved and that the taxation system must evolve with it. There will be a cost to Ireland for this in terms of reduced corporation tax receipts, but overall Pillar One will bring stability and certainty to the international tax framework and will help underpin economic growth from which all can benefit.
Ireland expressed our broad support for the agreement on Pillar Two but noting our reservation about the proposal for a global minimum effective tax rate of ‘at least 15%’.
A Consultation on OECD International Tax Proposals will be launched by my Department in the coming days. Interested parties will be invited to respond to this consultation on Ireland’s approach to the international tax proposals being discussed at the OECD/G20 BEPS Inclusive Framework and, specifically, in relation to how our approach and those proposals can continue to support economic growth and prosperity.
I remain committed to the OECD process and aim to find an outcome that Ireland can yet support. Ireland will continue to play our part in reaching a comprehensive sustainable and equitable agreement.
Housing Schemes
Questions (268)
Cathal Crowe
Question:268. Deputy Cathal Crowe asked the Minister for Finance the reason the help to buy scheme only applies to new builds; and if he will make a statement on the matter. [37371/21]
View answerWritten answers
The Help to Buy (HTB) scheme is designed to stimulate the supply of new houses in the housing market and to assist first time buyers in accumulating a deposit for a new home.
In relation to second-hand properties generally, an increase in the supply of new housing remains a priority aim of Government policy. As mentioned above, the HTB scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties. A move to include second-hand properties within the scope of the relief would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply.
Tax Code
Questions (269, 270, 285)
Paul McAuliffe
Question:269. Deputy Paul McAuliffe asked the Minister for Finance when the Revenue Commissioners will have the valuation process finalised in relation to local property tax reforms; and if he will make a statement on the matter. [37529/21]
View answerPaul McAuliffe
Question:270. Deputy Paul McAuliffe asked the Minister for Finance when the Revenue Commissioners will be able to quantify the monetary value of new builds by local authority in relation to local property tax reforms; and if he will make a statement on the matter. [37530/21]
View answer
Catherine Murphy
Question:285. Deputy Catherine Murphy asked the Minister for Finance the date and the way in which changes to the local property tax system will be introduced. [38014/21]
View answerWritten answers
I propose to take Questions Nos. 269, 270 and 285 together.
I would advise the Deputies that the revaluation of residential properties, for Local Property Tax (LPT) purposes, on 1 November 2021, and the bringing of newly completed properties within the charge to LPT, will depend on the Finance (Local Property Tax)(Amendment) Bill 2021 being enacted before the Dáil and Seanad adjourns for the summer recess.
I am advised by Revenue that the revaluation process will involve liable persons being required to self-assess the value of their residential properties as at 1 November 2021 and submit this value to Revenue by 7 November 2021, in the case of a paper return, and by 19 November 2021, in the case of an online return.
This self-assessment of values on 1 November 2021 will apply to properties that have been chargeable to LPT since 2013 and to properties that have been completed since 2013 but have remained outside the LPT charge in the intervening period. In addition, for the valuation period starting with the year 2022, newly completed properties will be brought within the charge to LPT on an ongoing basis from 1 November following their completion.
In good time prior to the valuation date on 1 November 2021, Revenue will issue LPT return forms to liable persons to be used for the submission of their self-assessed property values. With the return form, Revenue will also issue a document called a ‘Notice of Estimate’ containing an amount of LPT. This is not an assessment of the valuation of that person’s property. Instead, it is an amount of local property tax that will become payable should a liable person not submit a self-assessed value to Revenue. While the amount may coincide with the value a liable person would self-assess, the person is still required to submit a return to Revenue containing his or her self-assessment. It is important to note that Revenue does not value individual properties for the purposes of selecting the amount of LPT to be used in the ‘Notice of Estimate’.
Revenue will accept, on a non-judgemental basis, liable persons’ self-assessed valuations, subject to the usual compliance checks that may subsequently be carried out in relation to all self-assessed taxes. Revenue is preparing extensive guidance that will be made available to property owners in advance of the issuing of returns to assist them in self-assessing the value of their property.
Regarding new build properties, Revenue will not be in a position to analyse the data and report quantitatively on these until after LPT returns are submitted and processed.
As is currently the case, Revenue will provide a wide range of payment options to liable persons which will allow them to choose the payment option that best suits their particular circumstances. Payment of LPT liabilities for 2022 can be made in one single payment or can be phased evenly over the year from January 2022. Details of the payment options available to liable persons will be provided with the issuing of LPT return forms.
Question No. 270 answered with Question No. 269.
Tax Code
Questions (271)
Matt Shanahan
Question:271. Deputy Matt Shanahan asked the Minister for Finance if he will provide clarity in relation to the way his Department recognises cohabiting couples (details supplied); his views on whether this is a serious inconsistency in the system; and if he will make a statement on the matter. [37549/21]
View answerWritten answers
I am advised by Revenue that where a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for the purposes of income tax as a single person. This means that each partner is chargeable to tax on her/his own income and is entitled to the basic annual personal tax credit of €1,650. Neither partner will be entitled to the increased standard rate cut-off point and, tax credits, tax bands, and reliefs cannot be transferred from one partner to the other.
Parts 44 and 44A of the Taxes Consolidation Act 1997 provide for joint assessment of a couple for tax purposes. However, joint assessment is available only to married persons or civil partners who live together. Joint assessment for other cohabiting couples is not provided for in the tax code.
Information on the taxation of cohabiting couples can be found on the Revenue website, available at https://www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/cohabiting-couples/index.aspx.
The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy v. Attorney General (1980). This decision was based on Article 41.3.1 of the Constitution which compels the State to protect the institution of marriage. The decision held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income.
Differences in the tax treatment of the different categories of couples arise from the objective of dealing with different circumstances while also respecting the constitutional requirement to protect the institution of marriage. Cohabitants do not have the same legal rights and obligations as a married couple or couple in a civil partnership which is why they are not accorded similar tax treatment to couples who have a civil status that is recognised in law. Any change in the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples.
From a practical perspective, it would be very difficult to administer a regime for cohabitants which would be the same as that for married couples or civil partners. Married couples and civil partners have a verifiable official confirmation of their status. It would be difficult, intrusive and time-consuming to confirm declarations by individuals that they were actually cohabiting. It would also be difficult to establish when cohabitation started or ceased. There would also be legal issues with regard to ‘connected persons’. To counter tax avoidance, ‘connected persons’ are frequently defined throughout the various Tax Acts. The definitions extend to relatives and children of spouses and civil partners. This would be very difficult to prove and enforce, in respect of persons connected with a cohabiting couple where the couple has no legal recognition. There may be an advantage in tax legislation for a married couple or civil partners as regards the extended rate band and the ability to transfer credits. However, their legal status has wider consequences from a tax perspective both for themselves and persons connected with them.
Furthermore, the difference in tax treatment for married couples is not confined to Income Tax, and is also a feature of other taxes, such as Capital Acquisitions Tax. Therefore, any changes in the tax treatment could only be considered in the broader context of the tax system and future social and legal policy development more generally, given that the legal status of married couples has wider consequences than from a tax perspective.
The arrangements and associated legislation for the purposes of payments or allowances under the remit of the Department of Social Protection in relation to married couples, civil partners and cohabiting couples are a matter for the Minister for Social Protection and her Department.
Insurance Industry
Questions (272)
Darren O'Rourke
Question:272. Deputy Darren O'Rourke asked the Minister for Finance if his attention has been drawn to the fact that persons will lose their no-claims car insurance bonus if a third party makes a claim for a relatively small amount against them, for example, for a scratch, resulting in the insured party paying thousands of euro extra on their premium each year; his plans to address this problem; and if he will make a statement on the matter. [37571/21]
View answerWritten answers
At the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland, has any influence over the pricing or provision of insurance products, as this is a commercial matter assessed on a case-by-case basis. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
On a general level, my understanding is that insurers will use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. For example, in relation to motor insurance, factors may include those such as: the age of the driver and the relevant driving experience; as well as the age and type of vehicle; how the vehicle is used; the claims record; the number of drivers; and the location of storage. Insurers also price in accordance with their own past claims experience, and do not all use the same combination of rating factors, so as a result prices vary across the market. This is why it is important for consumers to shop around when it comes to renewal.
More specifically in relation to no claims bonuses, my officials contacted Insurance Ireland for more information on the matter. It indicated that the administration of no claims bonuses is a matter for each individual insurance provider. The amount of discount offered, and the terms and conditions attached to same will vary according to the customer, policy, the nature of the risk and the provider. Insurance Ireland also noted that ‘step back’ and ‘protected’ no claims bonus/discount products are available in the market. It is important for a policyholder to review their policy documents in detail to understand the cover that they have in place in relation to no claims bonuses/discounts.
Where a consumer feels that they are being treated unfairly, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
Finally, it is also worth noting that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in obtaining insurance, and it can be accessed at feedback@insuranceireland.eu.
Financial Services
Questions (273)
Mark Ward
Question:273. Deputy Mark Ward asked the Minister for Finance if lifetime loans offered to senior citizens can be regulated in order that they can be capped or the recipient can have the option to pay off the loan within their lifetime; and if he will make a statement on the matter. [37576/21]
View answerWritten answers
Lifetime loans are regarded as a niche product usually provided to those aged 60 years and over. The Central Bank has advised that in addition to the requirements of the consumer protection framework that apply to the provision of mortgages generally, the Consumer Protection Code 2012 (the Code) also sets out a number of specific requirements relating to lifetime mortgages and home reversion agreements. The Code requires that, prior to offering, recommending, arranging, or providing a lifetime mortgage to a consumer, a regulated entity must inform the consumer of the consequences of purchasing a lifetime mortgage and provide information on:
- The circumstances in which the loan will have to be repaid
- Details of the applicable interest rate
- An explanation of the impact of the rolling up of interest over the duration of the loan
- An indication of the amount required to repay the loan at maturity and the effect on the existing mortgage (if any); and
- An indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan and at five-yearly intervals thereafter.
In respect of home reversion agreements, the Code requires that prior to offering, recommending, arranging or providing a home reversion agreement to a consumer, a regulated entity must inform the consumer of the consequences of entering a home reversion agreement and provide the following information:
- the circumstances in which the agreement comes to an end;
- the effect on the consumer’s existing mortgage, if any; and
- in the case of a variable-share contract, an indication of the potential change in the breakdown of the ownership of the property between that held by the home reversion company and the consumer, over the duration of the agreement.
The Code also requires that consumers are made aware of the importance of seeking independent legal advice regarding a proposed lifetime mortgage or home reversion agreement, and that certain warning statements are included in the application form, in any document relating to the loan, and on the regulated entity’s website.
As with all mortgages, the Code also requires the provision, on an annual basis at least, of a statement of account to include the opening balance, all transactions, all interest charged, all charges, the outstanding balance, and the details of the interest applied to the account during the period covered by the statement.
Question No. 274 answered with Question No. 261.
Economic Data
Questions (275, 276)
Rose Conway-Walsh
Question:275. Deputy Rose Conway-Walsh asked the Minister for Finance further to Parliamentary Question No. 177 of 6 July 2021, if a standalone list will be provided of all publicly controlled market operators that are included in the Register of Public Sector Bodies in tabular form; and if he will make a statement on the matter. [37630/21]
View answerRose Conway-Walsh
Question:276. Deputy Rose Conway-Walsh asked the Minister for Finance the debt held by each of the publicly controlled market operators in tabular form; and if he will make a statement on the matter. [37631/21]
View answerWritten answers
I propose to take Questions Nos. 275 and 276 together.
As the Deputy will be aware, the Central Statistics Office (CSO) is responsible for classifying all entities in the State into the appropriate sector of the economy. The Register of Public Sector Bodies in Ireland is compiled by the CSO and as of the last publication, April 2021, there are approximately just over 250 publicly controlled market operators on the register, split between non-financial and financial corporations. A comprehensive list of publicly controlled market operators is available on the CSO's website at the following link:
https://www.cso.ie/en/media/csoie/methods/nationalaccountsoutputandvalueaddedbyactivity/Register_of_Public_Sector_Bodies_in_Ireland_April_2020.pdf
At present, there are no official statistics compiled for publicly controlled market operators which would be able to answer the Deputy’s question in relation to the debt held by such operators. However, my Department recently published a research paper on ‘Ireland’s Public Sector Balance Sheet’ in April 2021, which contains a detailed analysis of public sector assets and liabilities. This report is the first of its kind for Ireland and is very much at the cutting edge of research for fiscal sustainability analysis. Ireland is in the company of an elite group of countries which have published data on public sector assets and liabilities. The report provides a deep analysis of public corporations and looks at their contribution to public sector net worth over the last two decades. The report is available publicly at the following link: https://www.gov.ie/en/publication/a9d69-irelands-public-sector-balance-sheet-draft-april-2021/.
Question No. 276 answered with Question No. 275.
Real Estate Investment Trusts
Questions (277)
Peadar Tóibín
Question:277. Deputy Peadar Tóibín asked the Minister for Finance the number of REITs operating in the Irish market; and the number of properties held by these REITs. [37633/21]
View answerWritten answers
I am advised by Revenue that due to the small number (less than 10) of Real Estate Investment Trusts (REITs) that operate in Ireland and Revenue’s obligation to maintain the confidentiality of taxpayer information, specific quantitative information in relation to these entities cannot be provided.
Tax Code
Questions (278, 279)
Cathal Crowe
Question:278. Deputy Cathal Crowe asked the Minister for Finance if homeowners in County Clare who have confirmed cases of pyrite in the structure of their homes are exempt from paying the local property tax; and if he will make a statement on the matter. [37642/21]
View answerCathal Crowe
Question:279. Deputy Cathal Crowe asked the Minister for Finance if being part of a pyrite remediation scheme is a criterion for exemption for payment of the local property tax; and if he will make a statement on the matter. [37643/21]
View answerWritten answers
I propose to take Questions Nos. 278 and 279 together.
Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption from the charge to local property tax (LPT) in respect of certain residential properties that have a significant level of pyrite damage. The LPT Act does not restrict the exemption to any particular geographical area so that the exemption is available on a nationwide basis.
Acceptance into the Pyrite Remediation Scheme is a qualifying condition for eligibility for the exemption. However, properties that have not been accepted into this scheme may also be eligible for the exemption where the required level of pyrite damage has been confirmed in a certificate of damage completed by a competent person such as an engineer. This certificate must be completed, and the required tests for pyrite damage carried out, in accordance with I.S. 398-1.2017 (previously I.S. 398-1.2013) as set down in Regulations made by the (then) Minister for the Environment, Community and Local Government - the Finance (Local Property Tax) (Pyrite Exemption) Regulations 2013 (S.I. No 147/2013).
The Deputy’s questions may also refer to the proposed changes to the proposed LPT exemption provided for in the Finance (Local Property Tax) (Amendment) Bill 2021 which is due before the Houses this week. This proposed exemption will apply to homes that have been accepted into the Defective Concrete Blocks Grant Scheme, as provided for by the Dwellings Damaged by the Use of Defective Concrete Blocks in Construction (Remediation) (Financial Assistance) Regulations 2020 (S.I. 25 of 2020). There is no location restriction on the exemption which is open to any property that is eligible for the remediation scheme. The scope of the Regulations is a matter for my colleague the Minister for Housing, Local Government and Heritage.
Question No. 279 answered with Question No. 278.