Written answers

Tuesday, 13 December 2022

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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253. To ask the Minister for Finance the reason that a person (details supplied) is taxed as a single person; and if he will make a statement on the matter. [62211/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am informed by Revenue that in cases such as these (that is, where neither spouse or civil partner is resident in the State, but one party is in receipt of employment income which is chargeable to tax in the State) the statutory position is that joint assessment is not available during the tax year. The individual is correctly assessed to tax under separate treatment.

However, there may be cases where:

- both parties are non-resident;

- one party has employment income chargeable to tax in the State; and

- the other party has no income (e.g. the employment of the party working in the State is the only source of income of the couple).

I am advised that if Revenue is satisfied that the above circumstances apply, it is established practice that the aggregation basis may be applied in the normal way; that is, the increased basic personal tax credit (commonly referred to as the married person’s/civil partner’s tax credit) and the increased standard rate tax band may be granted to the person who is working in the State. A claim for such treatment may be made at the end of the tax year by the assessable spouse/civil partner, by completing the relevant income tax return form.

Please note that where the other spouse or civil partner has income in his/her own right, a measure of relief may, depending on the level of that income, be due where the Irish tax payable under separate treatment in respect of the income chargeable to Irish tax exceeds the tax that would have been payable in respect of that income if the total income of both parties had been chargeable to tax on the basis of aggregation.

Further information on aggregation relief may be found on Revenue’s website at: Revenue.ie>life events and personal circumstances>marital-status>marriage-and-civil-partnerships> how your partners residence affects your tax.

Should the individual concerned require any further clarification they can contact Revenue via MyEnquiries or through the National PAYE Helpline on 01-73 83 636.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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254. To ask the Minister for Finance if he intends to retain the 9% VAT rate for the tourism sector (details supplied); the supports in place for that sector; and if he will make a statement on the matter. [62263/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the 9% rate for the tourism and hospitality sectors was reintroduced in Budget 2021 from 1 November 2020 to 31 December 2021 at an estimated cost of €401m. This measure was initially extended in Budget 2022 to 31 August 2022 at a further estimated cost of €251m. It was then extended again for another six months until 28 February 2023 at an additional estimated cost of €250m. This was done to provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.

No further extension to this measure is envisaged so the rate which applies to these sectors will revert to 13.5% from 1 March 2023.

The Government recognises the impacts of the current energy crisis and understands how it has contributed to a rise in the cost of doing business across the country.

That is why on Budget Day, I announced the new TBESS (Temporary Business Energy Support Scheme). This scheme is aimed at businesses whose average unit gas or electricity price has risen by over 50% compared with their average unit gas or electricity price in 2021. It will run from September 2022 to the end of February 2023. Qualifying businesses can apply to Revenue for a cash payment, representing an advance credit for energy expenses (ACEC) that are deductible for income and/or corporation tax purposes.

The ACEC will be calculated as 40% of the excess of the 2022 bill over the 2021 bill, capped at €10,000 per business per month, or up to €30,000 if the business operates from multiple locations. Overall caps at business level will also apply as set out in the EU Temporary Crisis Framework.

The Scheme opened for registration on November 26 and for claims on December 5th. It is expected that first payments will go out before Christmas.

Further information on the scheme can be found at the following link from the Revenue website - www.revenue.ie/en/starting-a-business/tbess/index.aspx

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