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

280. To ask the Minister for Finance if he has considered amending section 126 (2B) of the Taxes Consolidation Act 1997 to ensure that adult dependant social welfare pensions could be paid directly to the adult dependant; to outline the wider implications and costs related to such an amendment; and if he will make a statement on the matter. [44733/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Section 126 of the Taxes Consolidation Act 1997 (TCA) deals with the tax treatment of certain social welfare payments.

The Social Welfare Consolidation Act 2005 (SWCA) provides for the payment of the weekly state pension. The payment is made by the Department of Social Protection to an individual who fulfils the statutory criteria. The SWCA also provides for an increase in the amount of state pension where the beneficiary of the pension has a qualified adult dependent. The qualified adult portion is described as an “increase” in the pension and is payable in respect of a spouse, civil partner or cohabitant who is being financially maintained and whose income is not greater than a specified amount.

Section 12 of the Finance (No. 2) Act 2013 inserted subsection 2B into section 126 TCA. The subsection became effective from 1 January 2014, confirming the tax treatment of the qualified adult dependent increase. It provides that, for the purposes of the Income Tax Acts, any increase in the state pension in respect of a qualified adult dependent is treated as if it arises to and is payable to the beneficiary of the pension, that is, the main pension recipient.

The intention behind the amendment was to put beyond doubt that the beneficiary of a Department of Social Protection pension is assessable on the aggregate of the pension and the amount by which the pension is increased for a qualified adult dependent. This means that the pension payment is not subject to double taxation as the qualified adult increase is deemed to be part of the pension of the person beneficially entitled to the pension rather than a separate source of income for the qualified adult.

Only one employee (PAYE) tax credit is available in respect of the state pension, including the qualified adult dependent increase, and there is no entitlement to any increase in the amount charged to income tax at the standard rate as a result of the qualified adult dependent payment.

I currently have no plans to amend section 126 (2B) of the Taxes Consolidation Act 1997, as suggested by the Deputy.

Finally, I am advised by Revenue that as information in respect of increases in the State pension in respect of a qualified adult dependents are not reported separately to Revenue, there is no data available to Revenue from which to provide an estimate of the cost of the change outlined by the Deputy.

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

281. To ask the Minister for Finance if he has considered amending section 119 (3) of the Value-Added Tax Consolidation Act 2010 to extend its provision to all VAT payments not just VAT repayment outside the State to allow for a refusal by the Revenue Commissioners to process any VAT repayment appealable to the third-party process of the Tax Appeals Commission; and if he will make a statement on the matter. [44734/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Section 119(1) of the Value-Added Tax Consolidation Act 2010 lists certain specific matters which may be appealed to the Tax Appeals Commission, including the refusal by the Revenue Commissioners to approve a VAT refund application by a foreign trader under Section 101 of the Act.

Section 101(9) sets out the actions which must be taken by the Revenue Commissioners on receipt of such a refund application. In line with EU VAT law, with which Irish VAT law must comply, this provision requires the Revenue Commissioners to approve or reject such an application within 4 months of receiving it. It is within this context that section 119(3) provides that a failure by Revenue to decide on a Section 101 refund application within that timeframe is to be treated as a refusal of an application, and thus, can be appealed to the Tax Appeals Commission.

Section 119(1) of the Value-Added Tax Consolidation Act 2010 also allows a taxpayer aggrieved by a determination of the Revenue Commissioners in relation to a claim for repayment of VAT to lodge an appeal with the Tax Appeals Commission.

While the legislation does not specify a timeline for Revenue to make a decision on a domestic VAT repayment claim, I am informed by Revenue that, for the 2024 period to date, 87% of domestic VAT refunds are processed within 10 days, 92% within 1 month and 97% within 4 months. This processing time data highlights the importance Revenue attaches to dealing swiftly with refund claims. A low percentage of repayment claims take longer to complete, due to matters such as a compliance intervention being carried out on the claim, or a lack of taxpayer compliance.

Where a taxpayer is aggrieved by how their case is being managed by Revenue, they can make a complaint and request a review under Revenue’s Complaint and Review Procedures, details of which are outlined in “Revenue Complaint and Review Procedures Leaflet – CS4”, which is available on the Revenue website. These procedures allow for both independent internal and external review of a complaint.

Having regard to the various arrangements described above, the legislative provision suggested by the Deputy is not considered necessary.

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

282. To ask the Minister for Finance if he has considered amending section 949I (6) of the Taxes and Consolidation Act 1997 to ensure that taxpayers lodging an appeal have a fair opportunity to make a case to a third party independent hearing, where a tax assessment is disputed; and if he will make a statement on the matter. [44735/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Tax Appeals Commission (TAC) was established on 21 March 2016 following the enactment of the Finance (Tax Appeals) Act 2015, replacing the Office of the Appeal Commissioners. It is an independent statutory body tasked with providing a modern and efficient appeals process in relation to the hearing and adjudication of tax disputes. In carrying out its functions, the TAC is obliged to ensure that tax appeals are accessible, fair and conducted as expeditiously as possible.

Section 949I of the Taxes Consolidation Act 1997 provides for the notice of appeals by taxpayers to the TAC. Subsection (6) of section 949I provides that an appellant is not entitled to rely on any grounds of appeal that were not stated in a notice of appeal, unless the Appeal Commissioners are satisfied that there was a good reason for not stating those grounds at the time of filing the appeal.

I do not have any plans to amend section 949I(6) of the Taxes Consolidation Act 1997. I am satisfied that the appeals process is fair, efficient and accessible for the taxpayers who avail of it.