Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

34. To ask the Minister for Finance if he will prioritise the inclusion of lithium battery plant machinery on the triple E register to avail of accelerated capital allowance; his views on the advantages of promoting this technology; and if he will make a statement on the matter. [45460/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Finance Act 2008 introduced the Accelerated Capital Allowance (ACA) scheme for Energy Efficient Equipment (EEE). The scheme provides a tax incentive for companies and sole traders who invest in highly EEE. The ACA scheme allows taxpayers to deduct the full cost of expenditure on eligible equipment from taxable profits in the year of purchase. This differs to the standard treatment of capital allowances which are claimed at a rate of 12.5% annually over eight years.

To qualify for the scheme, equipment must fall within one of the 10 classes of technology specified in Schedule 4A of the Taxes Consolidation Act 1997. In order for equipment in these classes of technology to qualify for the scheme it must also meet detailed energy efficiency criteria as set in statutory instrument by the Minister for the Environment, Climate and Communications with the approval of, and after consultation with, the Minister for Finance. A statutory instrument is also required to update such criteria. The SEAI maintains the listing of eligible products on its Triple E Register, and plays a key role in the process for setting the eligibility criteria by undertaken periodic technical reviews of the technology groups.

Last year my officials, in conjunction with officials in the Department for the Environment, Climate and Communications (DECC), the SEAI and the Revenue Commissioners, completed a Tax Expenditure Review of the scheme in accordance with the Department of Finance guidelines for evaluating tax expenditures. This review established that the policy objective of the scheme remains valid and provided evidence of increased uptake of the relief, particularly among micro and small businesses in recent years. Finance Act 2020 extended the end date of the scheme from 31 December 2020 to 31 December 2023. The review also recommended the classes of technology included in Schedule 4A and the existing energy efficiency qualifying criteria be reviewed with a view to updating the criteria to reflect technological advances in energy efficiency.

I am informed by the SEAI that it is possible that the types of machinery referred to by the Deputy may qualify for the scheme under the technology group ‘Electrical Vehicles and Associated Charging Equipment’, which is included in the Class of Technology ‘Electric and Alternative Fuel Vehicles’ in Schedule 4A. Whether or not a specific item of machinery qualifies for the scheme depends on whether it meets the qualifying criteria set for that technology group. If a taxpayer wishes to confirm whether an item of equipment qualifies for the scheme they may consult the SEAI at the following email address: TripleE@seai.ie or (01) 808 2100. Information on the ACA scheme can be found on the SEAI website through www.seai.ie/business-and-public-sector/business-grants-and-supports/accelerated-capital-allowance/.

The SEAI is the body responsible for setting the eligibility criteria and maintaining the register of eligible products for which the incentive can be claimed. The SEAI is currently undertaking a technical review of the scheme which includes the detailed energy efficiency criteria equipment must meet to qualify for the scheme. I am informed by my colleagues in DECC that the SEAI intend on engaging with industry stakeholders in the coming period during the review process. Through this process stakeholders will have an opportunity to make representations relating to the existing technology groups and propose new technologies.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

35. To ask the Minister for Finance the total cost to the Exchequer of tax relief on pensions contributions from 2016 to 2020 disaggregated by year and pension type in tabular form. [45649/21]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

36. To ask the Minister for Finance the total cost to the Exchequer of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [45650/21]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

37. To ask the Minister for Finance the number of persons availing of tax relief on pension contributions from 2016 to 2020 disaggregated by year and salary band with intervals of €10,000 in tabular form. [45651/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 35 to 37, inclusive, together.

I am advised by Revenue that the cost of tax relief on pension contributions for the years 2004 to 2018 (the latest year currently available) are available on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

For 2018 the published items in relation to pension contribution relief are:

- ‘Employees’ Contributions to Approved Superannuation Schemes’,

- ‘Employers’ Contributions to Approved Superannuation Schemes’,

- ‘Exemption of Employers’ Contributions to BIK’, and

- ‘Pension Contributions (Retirement Annuity and PRSA)’

For the convenience of the Deputy, the following table sets out the relevant tax costs for the years 2016-2018 as figures for 2019 and 2020 are not yet available.

In relation to the Deputy’s question regarding the total cost to Exchequer of tax relief on pension contributions and the number of persons availing of this relief from 2016 to 2020, disaggregated by year and salary band, I am advised by Revenue that prior to the introduction of real-time reporting (PAYE Modernisation) on 1 January 2019, pension contributions were reported to Revenue at an employer level rather than an employee level, and therefore the breakdown requested by the Deputy is not available for years prior to 2019.

The Deputy may be interested in Revenue’s paper on ‘Statistics and Insights from the First Year of Real-Time Payroll Reporting (PAYE Modernisation)’ which is available at www.revenue.ie/en/corporate/documents/research/pmod-statistics-paper.pdf. In this paper, on page 17, a breakdown is provided of the level of pension contributions through payroll, as well as the number of individuals, broken down by income band for the year 2019.

I am advised by Revenue that a broad indication of the tax cost by income band may be inferred from this table in relation to employees. However, comparable information for employees and self-assessed cases combined is not available. Data from tax returns (PAYE and self-assessed individuals) for the year 2019 are currently being processed and will be available in the coming months.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

38. To ask the Minister for Finance the discussions that have taken place to date between the NTA and his Department in relation to additional supports and changes to the taxsaver scheme that will acknowledge the change in working patterns and the significant impact the pandemic has had on ticket holders and monies spent to date and impending charges; and if he will make a statement on the matter. [45664/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 118(5A) of the Taxes Consolidation Act (TCA 1997) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee.

Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a travel pass.

Where a travel pass is purchased under the BIK scheme or through a salary sacrifice arrangement certain conditions must be met, for example:

- the cost incurred must relate to a monthly or annual bus, railway or ferry travel pass;

- the travel pass must be issued by or on behalf of one or more approved transport providers; and

- the approved transport provider must be contracted or licensed to provide the transport services covered by the travel pass.

The terms ‘monthly’ and ‘annual’ above refer to the period of time for which the travel pass is valid for use, being a period of 30/31 or 365/366 days respectively. The number of journeys or extent of travel which may be undertaken within the monthly or annual period covered by the travel pass will depend on the terms and conditions of the specific ticket purchased and the relevant transport provider.

Further details on the tax treatment applicable on the provision of a travel pass to an employee can be found on Revenue’s website.

As the Deputy will be aware, it is a longstanding 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.