Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 13:

In page 8, line 20, to delete "subsection (5)" and substitute "subsection (4)".

Many of these amendments are minor in nature, involving a drafting change or a correction to cross-references within the new section 477C. I will outline briefly the main substantive revisions.

Amendment No. 14 introduces a revision to the definition of "qualifying loan" to make it clear that the inclusion of a guarantor as a party to a loan agreement will not prevent the loan from being a qualifying loan for the purposes of the scheme.

Amendments Nos. 17 and 23 introduce the concept of a "relevant tax year" into the section. The reason for this is to allow first-time buyers flexibility as to the years in respect of which they can claim the rebate. With this amendment, claimants will be allowed choose any or all of the tax years within the four tax years immediately preceding the year in which they make their application.

Amendments Nos. 24 and 25 introduce greater flexibility around the obligation on PAYE taxpayers to submit a tax return. As currently framed, all claimants would be required to submit a tax return and pay any income tax and USC payable in respect of each of the four preceding tax years, if they have not already done so. However, as taxpayers whose income is solely taxed under PAYE are not obliged to make an annual tax return, unless required to do so by the Revenue Commissioners, I am amending the obligation on PAYE taxpayers so that they will not necessarily be required to submit a tax return for each of the four tax years preceding their application. Under these amendments, they will only be required to submit a return for the tax year or years which they consider necessary to allow them to maximise their rebate.

For example, if a PAYE first-time buyer is satisfied that he or she has paid sufficient tax in 2016 to get the maximum rebate of €20,000, the he or she would only be required to make a tax return for 2016. If another PAYE first-time buyer is satisfied that he or she has paid sufficient tax in 2014 and 2016 to get the maximum rebate of €20,000, he or she need only make a tax return for 2014 and 2016. However, if a PAYE first-time buyer needs to draw on tax paid in all of the four years, 2013 to 2016, inclusive, to get a €20,000 refund, then tax returns would be required for each of those four years.

Amendment No. 26 introduces a revision to the tax clearance requirement on applicants. The obligation to have a tax clearance certificate will only apply to self assessed taxpayers. Amendment No. 30 introduces a revision to subsection (7) in order to ensure that certain applicants do not suffer as a result of the four-year limit that applies to the making of a tax refund by Revenue. For the purposes of defining the four tax years from which income tax and DIRT are to be taken for the refund, subsection (7) allows in certain circumstances for an application which is made in 2017 to be deemed to have been made in 2016. Paragraph (a)(i) provides that the 19 July to 31 December 2016 cohort may elect to have their application deemed to have been made in 2016, provided the application is made on or before 31 March 2017.

Paragraph (a)(ii) provides that the 1 January to 31 March 2017 cohort may elect to have their application deemed to have been made in 2016, provided the application is made on or before 31 May 2017. In order to ensure that such applicants do not breach the four year limit that applies to the making of a tax refund by Revenue, it is necessary to amend this subsection to say that a claim on foot of such an application will also be deemed to have been made in the tax year 2016. The reason for this is because the four years which will apply for the purposes of the refund will be 2012, 2013, 2014 and 2015. In 2017, making a refund from the tax year 2011 would be outside the four year time limit.

Amendment No. 35 inserts a new paragraph (c) into subsection (8) which deals with the validity of applications and when they cease to be valid. An amendment is necessary to make it clear that no claim can be made on foot of an application which ceases to be valid. Amendment No. 41 introduces a minor revision to subsection (17). This subsection sets out the clawback provisions which will apply where a claimant ceases to occupy a qualifying residence within a five-year period. The amendment simply adds an obligation on a claimant to notify Revenue when they cease occupation.

Amendment No. 42 simply involves a rewording of paragraph (a) of subsection (18). This paragraph provides for a clawback of the refund from a claimant where the claimant is not actually entitled to a tax refund under the terms of the section. That could arise, for example, where it emerges that the claimant was not a first-time buyer. The wording of the paragraph has been amended to a minor extent to ensure that it fully reflects what is intended. Amendment No. 44 involves a minor rewording of subsection (20)(c) to ensure that the collection and recovery provisions in Part 42 of the Taxes Consolidation Act 1997 apply to the clawback provisions governing the scheme.

I commend all of these amendments to the committee.