Results 26,641-26,660 of 27,945 for speaker:Michael McGrath

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank Senator Kyne for his recommendation. The Senator's proposal relates to producing a report on the merging of the universal social charge with income tax as a means of simplifying the administrative burden of tax on businesses and organisations. By way of background, USC was designed and incorporated into the Irish taxation system in 2011 to replace two other charges, namely, the...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: We all agree that the need to accelerate the delivery of additional new houses remains acute. Section 6 of the Bill provides support to the new-build housing market by extending the help-to-buy scheme for a further year to the end of 2025. Section 6 also amends the help-to-buy scheme to enhance its interaction with the local authority affordable purchase scheme. This amendment will enable...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank both Senators again, and I understand the issue they have raised. Senator Casey, in particular, took me through a number of specific examples of a constituency impacted by this. I followed up on the issue and examined it to see what could be done. In the case of the interaction with the local authority affordable purchase scheme, it was more straightforward because that is a...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: The help-to-buy scheme announced in budget 2017 is 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. With a view to increasing the supply of new housing and stimulating demand, the relief is already available in respect of new builds. In the July 2020 stimulus plan, the...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank the Senators for their recommendations Nos 6 and 7. They are seeking reports on the following issues: increasing the standard rate cut-off point to €45,000 and to €50,000, and the introduction of a 30% income tax rate. The Senators will be aware of the programme for Government commitment, which states: From Budget 2022 onwards, in the event that incomes are again...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: The report I referred to, the personal tax review, was published on budget day in October. It has a whole chapter on the option of a third rate of income tax and goes into quite some detail on the issues that arise, the policy considerations, the costings and so on. To summarise, among the issues that would need to be considered is that of cost. If there were to be a third rate of income...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: In my budget address, I acknowledged the challenges that we face with regard to housing, and that it remains a top priority for Government. As part of the response, to assist renters, I announced an increase of the rent tax credit to €750. This is to assist those renters in the private rental sector with the affordability of their rent. The credit will continue to be available until...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: Senator Gavan is requesting a report on the introduction of mortgage interest relief for principal private residences. The relief proposed by the Senator would be equivalent to 30% of the difference in interest paid in the relevant month relative to the interest rate charged in 2022, capped at a maximum benefit of €1,500 per household for the duration of the scheme or for a period of...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank the Senator. With regard to the VAT compensation fund for charities, the Senators will be aware I announced my intention in budget 2024 to increase the size of the fund from €5 million to €10 million. The background to the scheme is that it was originally introduced in budget 2018 to reduce the tax burden on charities and partially compensate them for the VAT incurred...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank Senators for their recommendations. The purpose of the residential premises rental income relief is to provide for a new tax incentive for small-scale landlords. This measure is specifically targeted at attracting and retaining small-scale landlords in the private sector. The purpose of this relief is to support the continued participation of small-scale landlords in the rental...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: A new tax incentive was introduced in Finance Act 2022 for small-scale landlords who undertake retrofitting works while the tenant remains in situ, which has the aim of retaining small-scale landlords in the private rental sector as well as encouraging retrofitting of rental properties. This measure is provided for in section 97B of the Taxes Consolidation Act 1997. The provision is...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: In my budget address I acknowledged the challenges we face in relation to climate. The finance Bill provides for a number of climate-related tax measures including the enhancements to the tax relief available to qualifying individuals in respect of excess electricity from domestic microgeneration that is supplied to the grid. This tax measure is intended to remove a barrier for entry for...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank Senator Ruane for the recommendation. As Senators are aware, Ireland operates an exempt, exempt, tax, EET, system. This means that contributions to pensions are exempted from income tax, subject to age-related percentage and income limitations. Pension fund gains are exempted from income tax, but income from pension drawdown is taxed.Data is available in relation to the Exchequer...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: It is important to put on the record what is happening in this Bill in relation to section 481 this year. As I announced on budget day, I am increasing the cap on qualifying expenditure on audio-visual productions from its current level of €70 million to a new cap of €125 million. This change has long been sought by the sector. The increase will support the continued...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank Senator Ruane for speaking to these recommendations. Recommendation No. 20 requests a report on a restriction of loss relief for banks. As Senators are aware, loss relief for corporation tax is a long-standing feature of the Irish corporation tax system and a standard feature of corporation tax systems in most OECD countries. It recognises that a business cycle runs over several...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank both Senators. The recommendation seeks the preparation of a report on the revenue that would be raised from, and the distributional impact of, a wealth tax of 1% on all households with assets over €10 million within six months of the passing of this Bill into law. As Senators from all sides of this House will be aware, wealth can be taxed in a variety of ways, many of which...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank Senator Gavan for this recommendation, which proposes a reduction in the current rate of mineral oil tax applied to kerosene used for non-propellant purposes, as well as further deviations from the proposed rates of mineral oil tax applying to other fuels. I acknowledge the impact of fuel prices on the current cost-of-living crisis and welcome the discussion of this important matter...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank the Senator Doherty. As she will be aware, this finance Bill provides for the application of the zero-rate of VAT to electronic books, or e-books, and audiobooks from 1 January 2024. There is no requirement in the amendment that an electronically supplied book or audiobook must have a printed equivalent to benefit from the zero-rate of VAT. A book or audiobook that is published...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: As the Senators will be aware, the small gift exemption is an annual capital acquisitions tax, CAT, relief available to all recipients of gifts. This means a person can receive a gift to the value of €3,000 free of CAT. For example, a parent may give a gift up to the value of €3,000 to a child or, indeed, anyone else, each calendar year without any CAT arising. Two parents...

Seanad: Finance (No. 2) Bill 2023: Committee Stage (5 Dec 2023)

Michael McGrath: I thank both Senators for their contributions and I assure them that tackling vacancy is a priority for this Government. It is appropriate that every available lever is deployed to incentivise the use of existing housing stock across the country. This includes measures to deter vacancy alongside supportive measures such as grants. For this reason, I announced in the budget that the rate of...