Peter Burke (Longford-Westmeath, Fine Gael)
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237. To ask the Minister for Finance if he has reviewed the taxation system which may act as an obstacle to increasing (the development of solar energy aimed at farmers and persons with suitable land for leasing and renting in order to meet Ireland’s climate goals) activity in the sector; and if he will make a statement on the matter. [52903/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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247. To ask the Minister for Finance if his Department has reviewed the tax treatment of the rental income received by landowners involved in solar energy in comparison to land leased for other types of farming such as dairy. [52904/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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248. To ask the Minister for Finance if his Department will review the tax treatment of rental income received by landowners and farmers who rent land for the development of solar energy; if his Department has considered a more equitable system to tax this land use in comparison to land leased for other agricultural endeavours; and if he will make a statement on the matter. [52905/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 237, 247 and 248 together.

Section 664 of the Taxes Consolidation Act 1997 provides for the exemption from income tax of certain income in connection with the leasing of farm land, where the land is let under a qualifying lease. The lessee must carry on a trade of farming on the leased land either solely or in partnership with a person or persons who is also a qualifying lessee on a commercial basis with a view to the realisation of profits.

This particular relief was designed to encourage longer term leases of farm land to active farmers, with the targeted policy objective of assisting with the mobility and productive use of agricultural land for farming purposes. It is not clear how inclusion of land leased for renewable energy projects could sit within the scope of the section 664 relief as currently framed.

A working group consisting of officials from my Department, the Department of Agriculture, Food and the Marine and the Revenue Commissioners examined this income tax exemption as part of its 2014 Agri-taxation Review. The 2018 exercise to update this review noted the changes made in Finance Bill 2017 that, where farmers lease farm land for solar panel use, it will be considered as eligible for Agricultural Relief (section 89 of the Capital Acquisitions Tax Consolidation Act 2003) and Retirement Relief (section 577A of the Capital Acquisitions Tax Consolidation Act 2003).

While currently I have no plans to review the tax treatment of rental income received by landowners and farmers who rent land for the development of solar energy, I understand that the matter of CAT Agricultural Relief and solar energy use will be considered as part of next year's Tax Strategy Group (TSG) pre-Budget papers.

Officials in my Department and from Revenue have recently engaged with officials from the Department of Agriculture, Food and the Marine and the Department of the Environment, Climate and Communications to review CAT agricultural relief and the current taxation rules in the broader context of policies promoted by the two Departments.

As the Deputy will appreciate, the introduction of any new tax expenditure measure takes place in the context of the annual Budget and Finance Bill process. Proposals for tax expenditure measures are assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.

Furthermore, I must always be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base and a strong and convincing case for the benefits and outcomes needs to be articulated in order for due consideration to be given for the commitment of scarce taxpayer resources for such reliefs.

Gerald Nash (Louth, Labour)
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238. To ask the Minister for Finance if the review under quarter 3 of 2022 of the Housing for All plan on the fiscal treatment of landlords was undertaken; if the Government plans to give landlords a tax relief under the recommendations of the working group; and if he will make a statement on the matter. [53379/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Under the Government's Housing for All plan, the Department of Finance committed to review, by Q3 2022, the recommendations from the 2017 Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers.

This review was undertaken as part of the Tax Strategy Group (TSG) process. The report of the review was published on 10 August 2022 as part of the TSG paper on Property-Related Tax Issues. It is available on pages 44 to 63 at the following link: assets.gov.ie/233358/abdf832e-caa4-4f43-ab6e-26e6f356f9f1.pdf

Following the review, and as I announced in the Budget, I intend to amend to Section 97A of the Taxes Consolidation Act, 1997, which provides for a deduction against rental income for pre-letting expenditure incurred on a residential premises that have been vacant for more than twelve months. The Deputy may be aware that Finance Bill 2022 contains a provision which will double the eligible expenditure limit from €5,000 to €10,000 and halve the period for which a property must be vacant prior to letting from twelve to six months. These amendments are intended to support owners of residential property in bringing dwellings into the rental market as well as maintaining the stock of rented property.

David Stanton (Cork East, Fine Gael)
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239. To ask the Minister for Finance if he has considered VRT charges on imported vehicles, allowing appeals to be finalised before any VRT fee is paid; and if he will make a statement on the matter. [53499/22]

David Stanton (Cork East, Fine Gael)
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240. To ask the Minister for Finance the number of appeals that have been lodged in respect of VRT calculations on imported vehicles in 2021 and to date in 2022; and if he will make a statement on the matter. [53500/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 239 and 240 together.

As the Deputy is aware, all vehicles in the State must be registered and the appropriate Vehicle Registration Tax (VRT) paid when first registered here. Typically, registration occurs when a new vehicle is sold in the State or in the case of an imported vehicle, (new/second-hand), at the point of importation into the State. For imported vehicles, there is a 30-day statutory time limit by which the vehicle must be registered in the State after arrival.

The calculation of VRT due on a passenger vehicle, whether the vehicle is new or has been imported second-hand, is based on the Open Market Selling Price (OMSP) of the vehicle and its levels of CO₂ and NOx emissions. Further information on the calculation of VRT can be found on the Revenue website.

Appeals in respect of VRT are governed under Section 145 and 146 of the Finance Act 2001 as amended by the Finance (Tax Appeals) Act 2015. Therefore a person is required, by legislation, to pay the amount of VRT as calculated, before an Appeal can be lodged.

The VRT appeals procedure has two stages. The first stage consists of a re-examination of the calculation by Revenue. Where a person is not satisfied with the outcome of the first stage appeal, they may proceed to the second stage which involves appealing the decision directly to the Tax Appeals Commission.

Rose Conway-Walsh (Mayo, Sinn Fein)
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241. To ask the Minister for Finance if multinational corporations including those with global revenue above €750 million will be eligible for the maximum €10,000 energy grant; if multiple subsidiaries of the same company can each make applications for the energy grant up to the maximum of €10,000; and if he will make a statement on the matter. [52696/22]

Colm Burke (Cork North Central, Fine Gael)
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255. To ask the Minister for Finance the way that farmers are to be included in the temporary business energy support scheme; when they can expect to benefit from the scheme; and if he will make a statement on the matter. [53149/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 241 and 255 together.

Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 31 December 2022 or, where it is possible to grant State aid beyond that date under the European Commission’s Temporary Crisis Framework (TCF), to 28 February 2023. The TBESS will be available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria. The scheme will be operated on a self-assessment basis.

Farmers will be eligible for payments under the TBESS in the same way as any other business that is carrying on a trade which is taxable under Case I of Schedule D where they meet all eligibility criteria. A person engaged in a trade of farming who has suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period in 2022, as compared with the average unit price for electricity and/or gas for the corresponding reference period in 2021, will be eligible under the scheme.

Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade, increasing to a maximum of €30,000 in certain circumstances.

In line with the TCF, there is also an overall cap on the amount that an undertaking can claim. The cap that currently applies in relation to farmers is €62,000.

If any amount charged on an energy bill for a claim period is not expended wholly and exclusively for the purpose of the farming trade, then this amount must be deducted from the relevant energy bill amount for the claim period for the purpose of calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the farm and a domestic dwelling.

Claims must be made through the Revenue Online Service (ROS). Subject to receiving State aid approval it is expected that the TBESS system will go live by end-November, enabling businesses to register for and claim under the scheme.

Revenue will soon publish comprehensive guidelines on the operation of the scheme on the Revenue website, which will include information on eligibility for the scheme and how claims may be made.