81. Deputy Pearse Doherty asked the Minister for Finance if he has scoped the potential impact of proposed United States tax changes to the taxation of intellectual property on the State; the level of research his Department or other Departments or agencies are involved in to quantify the possible impact here; and if he will make a statement on the matter. (Question 53289/17 asked on 13 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The proposed changes in the US tax code currently being debate by the US Congress are relevant to all countries that trade with the United States.  The importance of US tax rules is reflected in the fact that the proposed changes were discussed by European Finance Ministers at the recent ECOFIN meeting. 
The proposed legislation has not yet been finalised or signed into law at this point in time.  The full implications of US tax reform for Ireland, ...

129. Deputy Michael McGrath asked the Minister for Finance the person or body that is the liable party in respect of income tax relating income being paid to a receiver in the form of rental income on residential and or commercial property; if the liable person differs depending on whether the borrower has consented to the appointment of the receiver or the receiver has been formally appointed in line with the statutory provisions; and if he will make a statement on the matter. (Question 53088/17 asked on 12 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that section 1049 of the Taxes Consolidation Act (TCA) 1997 sets out that a receiver appointed by a Court in the State which has the direction and control of property is assessed and charged to income tax or corporation tax, as appropriate, on the property as if the property were not under the direction and control of the Court. Such a receiver is answerable for doing all matters required under the Tax Acts for the assessmen...

131. Deputy Maureen O’Sullivan asked the Minister for Finance his plans to make amendments to inheritance tax rules to allow single persons with no children to nominate a beneficiary that would receive the same favourable tax incentives as immediate family members under present rules; his views on whether the inheritance tax rules are discriminating against childless persons that are not married, cohabiting, LGBTs in same-sex unions and have no blood relatives; and if he will make a statement on the matter. (Question 53105/17 asked on 12 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): For the purposes of Capital Acquisitions Tax (CAT), the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the life-time tax-free threshold – known as the “Group threshold” – below which gift or inheritance tax does not arise. Where a person receives gifts or inheritances in excess of their relevant tax free threshold (when ag...

54. Deputy Bernard J. Durkan asked the Minister for Finance if tax liabilities accruing from the renting out of a family home in the case of a person (details supplied) can be offset against the rent paid for an alternative family home during the same period; and if he will make a statement on the matter. (Question 52338/17 asked on 07 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): There is no legislative basis on which the offset proposed by the Deputy could be allowed. The Deputy will be aware that landlords are liable to tax on their net rental profit after deduction of allowable letting expenses, and not on the gross rental income received.  As regards properties that are rented, currently a landlord may be allowed a deduction of 80% of the interest paid on borrowed money used to purchase, improve or repair rented premises...

97. Deputy Michael McGrath asked the Minister for Finance his plans to change the law in respect of the 25% maximum tax free lump sum drawdown of certain pension schemes before 75 years of age ; the rules in this area; and if he will make a statement on the matter. (Question 52171/17 asked on 06 Dec 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that in relation to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs), Part 30 of the Taxes Consolidation Act 1997 provides that individuals may draw down a maximum retirement lump sum of 25% of the accumulated value of their RAC or PRSA generally from age 60, but not later than age 75. For PRSAs linked to occupational pension schemes into which Additional Voluntary Contributions have been m...

9. Deputy Richard Boyd Barrett asked the Minister for Finance the reasoning behind the decision of the former Minister for Finance in budget 2014 to raise the cap on the capital allowance of tangible assets from 80% to 100%; if he will report on lobbying, submissions, discussions or meetings in relation to this issue prior to it being included in that budget; the minutes, memos and communications with regard to this change; and if he will make a statement on the matter. (Question 50865/17 asked on 30 Nov 2017 - Tax Code)

Deputy Richard Boyd Barrett: We are aware that Apple avoided paying €13 billion in tax through the double Irish scheme using Irish registered companies. The Paradise Papers reveal that in 2014 and 2015, changes made by then Minister for Finance, Deputy Michael Noonan, to the intangible assets allowance enabled Apple and almost certainly other companies to continue to avoid billions of euro in tax, using Irish registered companies and offshore tax havens. Will the Minister tell us what lobbying...

12. Deputy Richard Boyd Barrett asked the Minister for Finance if he will report on all meetings and communications involving his Department officials, himself or his predecessor and a company (details supplied), other large multinational companies or a group in which the issue of corporate tax, intellectual property or intangible assets were discussed in each of the years 2011 to 2016 and to date in 2017; the submissions received or commitments made on these issues during those years; if all relevant documents received or sent in relation to same will be provided; and if he will make a statement on the matter. (Question 50867/17 asked on 30 Nov 2017 - Tax Code)

Deputy Richard Boyd Barrett: We are aware that Apple avoided paying €13 billion in tax through the double Irish scheme using Irish registered companies. The Paradise Papers reveal that in 2014 and 2015, changes made by then Minister for Finance, Deputy Michael Noonan, to the intangible assets allowance enabled Apple and almost certainly other companies to continue to avoid billions of euro in tax, using Irish registered companies and offshore tax havens. Will the Minister tell us what lobbying...

75. Deputy Michael McGrath asked the Minister for Finance the first and full year cost of increasing the year limit for the special assignee relief programme from five to ten years; and if he will make a statement on the matter. (Question 51340/17 asked on 30 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 75 to 77, inclusive, together.
In relation to increasing the eligibility criteria for Special Assignee Relief Programme (SARP) from five years to ten years, I am advised by Revenue that there are no data on which to estimate the potential impact to the Exchequer of increasing the claim period in this manner. The data on numbers availing of SARP are compiled on a year-by-year basis. Data on the duration each claimant ...

76. Deputy Michael McGrath asked the Minister for Finance the first and full year cost of reducing the €75,000 limit to €60,000, to €50,000 and to €40,000, respectively, for the special assignee relief programme; and if he will make a statement on the matter. (Question 51341/17 asked on 30 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 75 to 77, inclusive, together.
In relation to increasing the eligibility criteria for Special Assignee Relief Programme (SARP) from five years to ten years, I am advised by Revenue that there are no data on which to estimate the potential impact to the Exchequer of increasing the claim period in this manner. The data on numbers availing of SARP are compiled on a year-by-year basis. Data on the duration each claimant ...

77. Deputy Michael McGrath asked the Minister for Finance his plans to extend the special assignee relief programme (SARP) to employees employed from outside the organisation rather than restricting it to employees moving within an organisation; the cost of increasing the scope of SARP; and if he will make a statement on the matter. (Question 51342/17 asked on 30 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 75 to 77, inclusive, together.
In relation to increasing the eligibility criteria for Special Assignee Relief Programme (SARP) from five years to ten years, I am advised by Revenue that there are no data on which to estimate the potential impact to the Exchequer of increasing the claim period in this manner. The data on numbers availing of SARP are compiled on a year-by-year basis. Data on the duration each claimant ...

134. Deputy Joan Burton asked the Minister for Finance the date which the tax on sugar sweetened drinks will commence in April 2018. (Question 48732/17 asked on 21 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): As I have said all along, it is my intention to introduce the tax on sugar-sweetened drinks at the beginning of April to align with the introduction of Soft Drinks Industry Levy in the UK, subject to State aid approval from the European Commission.
 ...

157. Deputy Niall Collins asked the Minister for Finance the annualised interest rate applied on late payment and filing of P30 returns; the equivalent rate of interest applied in the UK and in other EU and OECD countries, in tabular form. (Question 49094/17 asked on 21 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 157 and 158 together.
I am advised by Revenue that statutory interest charges are designed to compensate the Exchequer for loss of revenue through late payment of tax, to encourage timely payments in future and to ensure equity for those taxpayers who pay on time.
The current annualised rate of statutory interest charged in respect of late P30 (PAYE/PRSI/USC/LPT) and VAT payments is 10%. This equates to a daily rate...

158. Deputy Niall Collins asked the Minister for Finance the annualised interest rate applied on late payment and filing of VAT returns; the equivalent rate of interest applied in the UK and in other EU and OECD countries, in tabular form. (Question 49095/17 asked on 21 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 157 and 158 together.
I am advised by Revenue that statutory interest charges are designed to compensate the Exchequer for loss of revenue through late payment of tax, to encourage timely payments in future and to ensure equity for those taxpayers who pay on time.
The current annualised rate of statutory interest charged in respect of late P30 (PAYE/PRSI/USC/LPT) and VAT payments is 10%. This equates to a daily rate...

165. Deputy Michael McGrath asked the Minister for Finance the position in circumstances when the payment of inheritance tax becomes due by a person living here who is benefitting from an inheritance in respect of the estate of a person in the UK; if his attention has been drawn to the fact that in some cases the tax falls due before the deceased’s estate has been administered; and if he will make a statement on the matter. (Question 49364/17 asked on 21 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that inheritance tax may be payable by a person who is resident or ordinarily resident in the State where the person (i.e. the beneficiary) receives an inheritance from the estate of a deceased person living in the UK.  Double taxation can potentially arise because Irish inheritance tax is based on the country of residence of the beneficiary while UK inheritance tax is based on the country of domicile of the deceased person. ...

65. Deputy Niall Collins asked the Minister for Finance Ireland’s ranking in comparison to other OECD countries in respect of the capital gains tax rate applied. (Question 48623/17 asked on 16 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): As the capital gains tax codes of OECD member countries vary in numerous respects, member countries’ codes and the respective statutory rates are not directly comparable.  Capital Gains Tax (CGT) rates vary depending on a number of factors, including, for example,  whether the disposer of the asset  is an individual or a company, resident or non-resident; the nature of the asset and the scope of exemptions allowed; the duration of ownership of the a...

72. Deputy Bernard J. Durkan asked the Minister for Finance the correct level of taxation applicable in the case of a person (details supplied); and if he will make a statement on the matter. (Question 48659/17 asked on 16 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that the details provided in respect of the person concerned differ from Revenue’s  information.
If the person concerned is married, they may be entitled to claim the Married Persons Tax Credit by completing and returning a Form IT2 assessable spouse election form which can be found online at www.revenue.ie or by claiming the credit on MyAccount, the online service for PAYE customers.   
In addition, if the individual is marr...

107. Deputy Michael McGrath asked the Minister for Finance if the Revenue’s Commissioners online Vehicle Registration Tax, VRT, calculator is the subject of an independent audit; if his attention has been drawn to the apparent inconsistencies in the amount of VRT calculated; the recourse a person has in the event they are of the view the calculator is incorrect; and if he will make a statement on the matter. (Question 47648/17 asked on 14 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that the VRT calculator is not subject to an independent audit. It is however subject to ongoing review by Revenue to ensure that it remains fit for purpose.
I understand from Revenue that the purpose of the VRT calculator is to provide an indication of the likely VRT liability based on the details input by the person using the calculator. The actual VRT liability arising on a vehicle is determined on a case by case basis b...

219. Deputy Willie Penrose asked the Minister for Finance if his attention has been drawn to the impact of the application of section 87B of the Taxes Consolidation Act 1997, as amended by section 18 of the Finance Act 2013, regarding debt release of land dealing and development (details supplied); if the legislation can now be amended to deal with this anomalous situation; and if he will make a statement on the matter. (Question 46351/17 asked on 07 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am informed by Revenue that section 87B of the Taxes Consolidation Act 1997 (TCA) provides that gains arising from the release of loans, used to purchase land or property held as trading stock by individuals, are to be treated as the receipt of trading income and taxed accordingly. The amount of the debt released is to be treated as a receipt of the trade in the tax year in which the release is effected. 
The purpose of the section is to ensure t...

229. Deputy Catherine Martin asked the Minister for Finance if an interdepartmental committee is still in operation examining the possibility of taxing civil servants’ car parking as a benefit in kind; the length of time it has been in existence; when it last met; the outcomes that have resulted; his plans to introduce such a scheme; and the estimated amount of revenue that could be realised by such a measure. (Question 46445/17 asked on 07 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am informed by Revenue that employer-provided parking is not currently subject to benefit-in-kind taxation. I do not currently have any plans to change this. My officials are unaware of a committee such as the Deputy describes.
 ...

258. Deputy Michael McGrath asked the Minister for Finance the policy position in relation to the taxation treatment when a person wishes to pass on a non-farming business to adult children; and if he will make a statement on the matter. (Question 47007/17 asked on 07 Nov 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am informed by Revenue that for gift and inheritance tax purposes, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary) determines the maximum amount known as the “Group threshold” below which gift or inheritance tax does not arise. 
There are three separate Group thresholds based on the relationship of the beneficiary to the disponer...

106. Deputy Willie O’Dea asked the Minister for Finance the reason pensioners who were formerly civil servants, gardaí and members of the Defence Forces are excluded from NHR tax exemption in Portugal; and if he will make a statement on the matter. (Question 45111/17 asked on 25 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): As I informed the Deputy in my reply to his similar question of 5th October 2017 (No.42270/17), I am advised by Revenue that it is not their practice to comment on the application of the provisions of the national law of other countries. 
I am also advised that if the Deputy supplies identifying detail in respect of the person and specifies the source of income concerned, or the individual contacts Revenue with details of his circumstances and the i...

22. Deputy Richard Boyd Barrett asked the Minister for Finance if his attention has been drawn to the fact that a report (details supplied) shows that nine out of ten persons would favour a wealth tax; and if he will make a statement on the matter. (Question 44721/17 asked on 24 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am aware of the Taxback.com survey as reported in a number of media articles. My officials have requested Taxback.com to share any underlying survey document and results.  
The available information indicates that the survey was based on a sample of 800 people who were customers of Taxback.com. The question these customers were asked was “Would you agree with the implementation of a wealth tax?” Based on the available options that respondents co...

33. Deputy Pearse Doherty asked the Minister for Finance his plans to amend his proposal to cap the write-off of intangible assets to 80% to include all assets which claim annual write downs; and his views on whether his proposal as structured could allow large multinationals to pay minimal or no corporation tax. (Question 44716/17 asked on 24 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The recent ‘Review of Ireland’s Corporation Tax Code’, recommended that in order to ensure some smoothing of corporation tax revenues over time, that the limitation on the quantum of relevant income against which capital allowances for intangible assets and any related interest expense may be deducted in a tax year be reduced to 80%.  
Therefore, on foot of this recommendation, I introduced the cap in Budget 2018, effective from midnight, 11th Oct...

35. Deputy Pearse Doherty asked the Minister for Finance his plans to introduce measures to level the playing field in the property market that would stop investors using tax efficient structures, including IREFs and REITs and large multinational companies from pricing ordinary first-time buyers and families out of the market, as evidenced from investors being the main driver of cash sales in the property market accounting for more than 50% of transactions. (Question 44717/17 asked on 24 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): A Real Estate Investment Trust or REIT is a quoted company, used as a collective investment vehicle to hold rental property. A REIT is exempt from corporation tax on qualifying income and gains from rental property, subject to a high profit distribution requirement to. A REIT provides the same after-tax returns to investors as direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which w...

62. Deputy Seán Haughey asked the Minister for Finance if individual taxpayers foregoing tax cuts and cuts to the USC in order that this money can be ring-fenced for specific purposes such as homelessness will be facilitated; and if he will make a statement on the matter. (Question 44346/17 asked on 19 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The Office of the Revenue Commissioners is obliged to comply with its statutory tax and duty obligations. In so doing, it is required to apply any changes to tax or USC rates as passed by the Oireachtas. The question of Revenue applying rates other than those set out in statute does not therefore arise.
On the topic of ring-fencing tax receipts, from a budgetary perspective any move to hypothecate revenue from a particular source should in general b...