Results 26,041-26,060 of 27,945 for speaker:Michael McGrath

Written Answers — Department of Finance: Tax Code (8 Nov 2023)

Michael McGrath: My Department and Revenue have, for some time, been aware of issues arising from contractual arrangements within the General Practitioner (GP) community whereby some GPs treat income under their General Medical Services (GMS) contract as income of a GP practice in which they are a partner or an employee, rather than income of that individual GP. Revenue issued a guidance note to tax...

Written Answers — Department of Finance: International Agreements (9 Nov 2023)

Michael McGrath: The Deputy will recall that a Government decision was taken for Ireland to sign up to the global agreement on a two-pillared solution at the OECD Inclusive Framework to address the tax challenges associated with the digitalisation of the economy in October 2021. Pillar Two of that agreement will see the implementation of a global minimum tax of 15%. This decision was not taken lightly...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Chair, all the committee officials and my colleagues on the committee. I look forward to our engagement in the next few days. I thank my team for all the work that has been done in advance.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Deputy. One has to consider the personal tax package in the round, including all its elements and the combined impact of all the measures. Over the last months, when I was considering what I would consider to be a fair and balanced personal tax package, we built it around three key pillars. One was the changes to the tax credits. We increased them by more than we did in...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Deputies. The point I am making is that looking at the combined effect of all of the changes and what it means for somebody in 2024, the effective rate of tax following budget 2024 for a person on €35,000 is going to be 16.2%. For somebody earning €75,000, it is essentially twice that rate at 32.3% and that increases further to more than 40%. For somebody on say...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: We capped the gain at €70,000 so there is no additional gain beyond that. Often in debates, somebody on €150,000 or €200,000 gets quoted, not the person on €70,000. The Deputy can see from the distributional table the maximum gain is just under €900. As to who gains the most, I would look at the percentage change in somebody’s income. The...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I am happy to own the budget because I think we have got the balance right. We are examining one section of the Finance (No. 2) Bill but the budget has to be looked at in the round, including the impact on different types of households and people with different income levels, elements of the cost-of-living package on the social welfare side and changes to the cost of accessing public...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: What is indisputable is that the budget is progressive. I believe it is fair. The Deputy wants to isolate one specific aspect of the budget-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I can equally make the point that any person looking at how the budget impacted on them will look at it in the round. The Deputy seeks an acknowledgement that in cash terms somebody on a higher income of €50,000 or €60,000 benefits more in tax than somebody on €20,000 or €30,000. Yes, that is correct. Proportionally, it is not correct. It represents the fact...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: As I understand it, these amendments are grouped, so I will address them together. The Rural Independent Group has requested a report on the abolition of the USC for those earning less than €70,000 per annum and a report on abolishing the USC for all employees in the State. Deputy Doherty requested a report on increasing the exemption limit for the entry point to USC from...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: As the Deputy acknowledged in his earlier remarks, in recent years we have adjusted the 2% USC band to accommodate the change in the minimum wage. That is the right thing to do to ensure, as the Deputy said, that those who benefit from the increase in the minimum wage get to keep as much of that benefit as possible. I certainly intend in the future, where possible, to continue with that...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: In response to amendment No. 3, I note that the cycle to work scheme provides that employees can avail of the scheme once in a four-year period, as Deputy Nash said. This period was reduced from five years by the Financial Provisions (Covid-19) (No. 2) Act 2020. The scheme covers the cost of a bicycle, locks, chains and other safety equipment to deter bicycle theft, though I note the figure...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank both Deputies for the points they have made. My experience is that when it comes to the option of a child cycling to school, it is not the cost of the bike that is the deterrent but the safety of the route. That is why the Government and local authorities are investing a lot more money in safe cycling routes. Similarly, when it comes to cycling to college, it may be a factor for...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I will read the short note. Essentially, it arose from the PAYE modernisation review. The section provides for amendments to sections 990, 984B and 985G of the TCA 1997 to include a four-year time limit for pay-related employer assessments and refunds. A consequential amendment to section 531AOA of the TCA is also being made in respect of USC, to reflect the four-year time limit. There...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Deputy. It will be a Revenue-led initiative. Revenue has been developing it in recent months and my understanding is that it will be ready shortly. In essence, it will be a public information campaign to help build awareness about entitlements to certain reliefs, credits and exemptions. As the Deputy will have seen in the reply to his parliamentary question, every year people...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank Deputy Nash. As he said, the help-to-buy incentive was announced in budget 2017 as an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand....

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: My party and I have supported the help-to-buy scheme for a long number of years. It is a vital support to homebuyers. When we look at the number of people who have managed to purchase their first home with that support, it is clear that the scheme plays an important role. It is alongside a range of other measures that we believe are working. We can see the increase in supply across this...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I do not have that figure to hand.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Chair and all of the Deputies for their contribution so far on the issue. For the record, I and my party campaigned in 2020 for the retention of the help-to-buy scheme. It was a commitment in our manifesto. There are new homes being built today which simply would not have been built if the help-to-buy scheme did not exist. I assume the logic of both Sinn Féin and the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The help-to-buy scheme is already legislated to be in existence until the end of 2024. What I signalled on budget day, and what I am proposing to enact here, is that it would be extended. I also indicated on budget day that I would examine the scheme across next year to see what changes, if any, might need to be introduced to it. Any such changes would take effect for 2025, but I will...