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...

87. Deputy Seán Haughey asked the Minister for Finance the detail of the dwelling house exemption in respect of capital acquisitions tax; if he will review the provisions of this relief in order that family members inheriting two houses as opposed to one house are not disadvantaged; and if he will make a statement on the matter. (Question 44106/17 asked on 18 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that section 86 of the Capital Acquisitions Tax Consolidation Act 2003 provides an exemption from capital acquisitions tax on the inheritance or gift of a dwelling house in certain circumstances. 
One of the qualifying conditions for the dwelling house exemption is that the beneficiary does not have an interest in another dwelling house when he or she claims the exemption.  This restriction applies whether a beneficiary alrea...

113. Deputy Joan Collins asked the Minister for Finance his plans to ring-fence moneys raised from carbon taxes to establish a grant scheme for small scale energy sustainability projects, urban horticulture and other schemes that can reduce CO2 emissions on a more local level. (Question 43377/17 asked on 17 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): Hypothecation of revenue receipts is not a feature of the Irish tax system in general as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
The Department of Communications, Climate Action and Environment receive an annual budget as part of the estimates process which they allocate according to the priorities within that Department. 
 ...

132. Deputy Pat Deering asked the Minister for Finance if he can confirm if all air crew (details supplied) pay their tax under Schedule E; and if he will make a statement on the matter. (Question 43668/17 asked on 17 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 and 133 together.
I am informed by Revenue that Section 127B of the Taxes Consolidation Act 1997 came into effect on 1 January 2011. This section provides for the taxation under Schedule E of employment income arising to any member of a flight crew in circumstances where the duties are exercised on aircraft operated in international traffic and where the place of effective management of the aircraft operator is ...

133. Deputy Pat Deering asked the Minister for Finance if Schedule E has been operated by all airlines in respect of all crew regardless of whether they are employed under a contract of service or a contract for service since 1 January 2010. (Question 43669/17 asked on 17 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 132 and 133 together.
I am informed by Revenue that Section 127B of the Taxes Consolidation Act 1997 came into effect on 1 January 2011. This section provides for the taxation under Schedule E of employment income arising to any member of a flight crew in circumstances where the duties are exercised on aircraft operated in international traffic and where the place of effective management of the aircraft operator is ...

134. Deputy Fergus O’Dowd asked the Minister for Finance his views on a matter raised by a person (details supplied) regarding the tax appeals system; and if he will make a statement on the matter. (Question 43690/17 asked on 17 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The objectives of the Finance (Tax Appeals) Act 2015 are to reform the tax appeals system with a view to ensuring an enhanced and cost effective appeal mechanism for tax cases. The Act, which was commenced on 21st March 2016, inter alia provides for the establishment of the Tax Appeals Commission (TAC) which was established on the same date. A key feature of the legislation is that taxpayers now make their appeals against Revenue decisions directl...

48. Deputy Willie O’Dea asked the Minister for Finance the reason a person (details supplied) living in Portugal cannot avail of the NHR status enabling those that become tax resident in Portugal the opportunity to receive qualifying income tax free both in Portugal and in the country of the source of income; and if he will make a statement on the matter. (Question 42270/17 asked on 10 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): 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 income concerned, Revenue will advise in relation to the application of the Ireland-Portugal Doubl...

57. Deputy Michael McGrath asked the Minister for Finance the steps his Department and the Revenue Commissioners have taken in order to be prepared for the introduction of a sugar tax in 2018; and if he will make a statement on the matter. (Question 42433/17 asked on 10 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): Following the announcement in Budget 2017 of the introduction of a tax on sugar-sweetened drinks in April 2018, a public consultation was opened until 3 January this year. The consultation invited interested stakeholders to make submissions in relation to the design, scope and practical implementation issues of the tax. Thirty submissions were received, the majority of which came from the health sector and soft drinks industry. These informed the de...

468. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he will consider a submission (details supplied) and introduce the amendments suggested within the submission as part of budget 2018; if not, the reasons therefor; and if he will make a statement on the matter. (Question 42610/17 asked on 10 Oct 2017 - Tax Code)

Minister for Agriculture, Food and the Marine (Deputy Michael Creed): This issue has only recently come to my attention and, as he is primarily responsible for taxation policy, I will raise it with my colleague the Minister for Finance.
 ...

89. Deputy Sean Fleming asked the Minister for Finance his plans to introduce a tax allowance for the parents of children that are working to bring it in line with the child dependants allowance of €29.80 per week (details supplied); and if he will make a statement on the matter. (Question 42015/17 asked on 04 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I assume that the Deputy is referring to the €29.80 increase to certain social welfare benefits for a Qualified Child (IQC).  This is not a tax allowance but is a part of the social welfare benefit available to the individual. In 2017 the Increase for a Qualified Child is €29.80 per week. 
There is no generally available tax credit in respect of child dependants, but the Deputy will be aware that there are a number of tax credits which may apply to ...

105. Deputy Noel Rock asked the Minister for Finance the progress in discussions with the Brazilian authorities to remove the State from a blacklist of tax havens; and if he will make a statement on the matter. (Question 41349/17 asked on 03 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): Efforts are continuing to seek Ireland’s removal from the Brazilian black list. A technical delegation from the Department of Finance and Revenue met with Brazilian officials earlier this year to seek a resolution to this issue. Since then there has been continuing contact with the Brazilian authorities at official level. The issue was also raised directly with the Brazilian Finance Minister by my predecessor. Ireland’s appeal of the listing rema...

113. Deputy Paul Murphy asked the Minister for Finance his views on the recent speech by the French President (details supplied) in which he called for access to structural funds to be linked with co-operation on a European corporation tax policy by 2020; and if he will make a statement on the matter. (Question 41562/17 asked on 03 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I note the recent speech delivered by the French President to which the question refers.
In respect of Ireland’s cooperation on corporation tax policy within Europe, Ireland has been very actively engaged with corporate tax proposals at EU level. Ireland played an important part in the negotiation and agreement of several significant tax directives, including the Anti-Tax Avoidance Directives, the several amendments to the Directive on Administrati...

118. Deputy Eamon Scanlon asked the Minister for Finance if an issue relating to a PPS number for a person (details supplied) has been resolved; and if he will make a statement on the matter. (Question 41754/17 asked on 03 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that the person concerned should bring to the attention of his employer his error in providing an incorrect PPSN to them and ensure that the employment details and relevant tax credits are applied to him in line with the tax credit certificate issued by Revenue on 5 May 2017.
 ...

119. Deputy Michael Lowry asked the Minister for Finance if it is possible to claim relief on the MED 2 form for dental treatment (details supplied). (Question 41765/17 asked on 03 Oct 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I am advised by Revenue that Section 469 of the Taxes Consolidation Act 1997 provides for relief at the standard rate of income tax (currently 20%) on certain health expenses incurred in the provision of health care. 
For the purposes of the section “Health Care” is defined as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability but excluding routine ophthalmic treatment, routine dental treatment...

87. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied); and if he will make a statement on the matter. (Question 40591/17 asked on 26 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): There are a number of tax incentives in place to encourage the adoption of alternative and electric vehicles which are an environmentally cleaner mode of transport. A relief from Vehicle Registration Tax is provided up to a maximum €5,000 for electric vehicles, €2,500 plug-in hybrid electric and €1,500 for hybrid electric vehicles. The annual rate of motor tax for electric vehicles is the lowest rate chargeable at €120. Further to this electric v...

88. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding changes in structure of the VRT, road tax or fuel duties; and if he will make a statement on the matter. (Question 40592/17 asked on 26 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
 ...

90. Deputy Willie Penrose asked the Minister for Finance if he is considering making changes to the forthcoming finance Bill to deal with past issues pertaining to other sectors of the agricultural industry, similar to those in the poultry industry (details supplied); and if he will make a statement on the matter. (Question 40689/17 asked on 26 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): As the Deputy is aware a legislative measure was introduced in Finance Act 2016, which enables me to exclude by Ministerial Order, from the Flat Rate Scheme, any specified agricultural sector where the business structures or models employed result in a systematic excess of flat-rate addition payments over input costs borne by flat-rate farmers within that sector. 
This legislative measure applies to all agricultural sectors. I can make an order for...

68. Deputy Joan Burton asked the Minister for Finance the estimated yield in 2018 from restricting the use of losses for banks that received official bailout assistance from the State to 50%; and if he will make a statement on the matter. (Question 39990/17 asked on 21 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I assume the Deputy is referring to the decision taken in Finance Bill 2013 in relation to Deferred Tax Assets (DTAs). As the Deputy is aware the NAMA Act 2009 introduced Section 396C of the Taxes Consolidation Act (TCA 1997).  The purpose of the section was to restrict NAMA.
Participating institutions in offsetting their losses against a maximum of 50% of their taxable profits in a given year. At the time, the Government had a limited role in the b...

69. Deputy Joan Burton asked the Minister for Finance the mechanism for calculating the bank levy; the way in which it is apportioned between institutions; the yield that would result in 2018 from doubling the value of the levy and individual charge that would apply to each relevant bank; and if he will make a statement on the matter. (Question 39991/17 asked on 21 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): In Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology. 
This review took place during 2016, and included a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding l...

156. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised if a cap was introduced for companies to allow for a maximum write off of depreciation against income of percentages (details supplied) per annum regarding capital allowances on intellectual property. (Question 39306/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

157. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised if the 2014 rules of taxation for capital allowance of intellectual property were reinstated with regard to capital allowances on intellectual property. (Question 39307/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

170. Deputy Catherine Connolly asked the Minister for Finance the reason special needs assistants are not entitled to claim flat rate expenses; his plans to extend flat rate expenses to cover persons such as special needs assistants in budget 2018 in view of the fact that flat rate expenses are available as a tax write off for a number of professions, including teachers; and if he will make a statement on the matter. (Question 39466/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): The legislation governing the deductibility of expenses incurred in employment is contained in section 114 of the Taxes Consolidation Act 1997. The provision dictates that for an expense to qualify as a deduction against income from an office or employment, the expense must be wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment.
For ease of administration, where a large number of employees incur...

174. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised if a cap was introduced for companies to allow for a maximum write off of annual depreciation of intangible assets of percentages (details supplied) of annual income. (Question 39521/17 asked on 20 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I propose to take Questions Nos. 156, 157 and 174 together.
The Review of Ireland’s Corporation Tax Code, which was undertaken by an independent expert, Mr. Seamus Coffey, was published on Tuesday, 12 September 2017.  In the Review, Mr. Coffey makes a number of recommendations in respect of Ireland’s corporation tax code, including a recommendation that a cap of 80% should apply to the amount of capital allowances for intangible assets, and any rela...

83. Deputy John Curran asked the Minister for Finance the proposals being put forward by the working group established to examine and report on the tax treatment of landlords; if these proposals have been submitted to him for consideration in the context of budget 2018; and if he will make a statement on the matter. (Question 38204/17 asked on 11 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): A working group to examine and report on the tax treatment of landlords (or rental accommodation providers) was established in January 2017 and chaired by my Department. This was on foot of a commitment contained in the ‘Strategy for the Rental Sector’, published by the Department of Housing, Planning and Local Government in December 2016. As part of its work, the Group conducted a public consultation over four weeks from Friday 10 March to Friday...

109. Deputy Pearse Doherty asked the Minister for Finance the way in which windfalls gained through Central Bank mandated redress schemes such as for tracker mortgages are treated for the purposes of income tax; and if he will make a statement on the matter. (Question 37055/17 asked on 11 Sep 2017 - Tax Code)

Minister for Finance (Deputy Paschal Donohoe): I understand that the Central Bank has clearly set out its expectations of lenders to provide appropriate redress and compensation to affected customers in its document “Principles for Redress” dated December, 2015. 
The principles provide, inter alia, that “Any tax liability that impacted customers may incur as a result of the relevant issue in or respect of any redress, compensation or other payment made to impacted customers are to be discharged ...