Written Answers. - Parliamentary Debates - Houses of the Oireachtas

Questions— 14 February 2012. Written Answers
the relief, which will be retrospective to 1 January 2012, can be passed onto the borrowers by
qualifying lenders without undue delay. The speed with which the software changes can be
developed and implemented by lenders may vary from lender to lender. Revenue is currently
engaging with all of the lenders in arranging to have the new rate tested and implemented as
soon as possible.
It should be noted that approximately 189,000 mortgage accounts are entitled to the new
higher 30% rate. The Deputy will be aware that a mortgage account may have one or more
individuals associated with it and in total there are approximately 270,000 individuals associated
with these 189,000 accounts.
As an interim relieving measure Revenue has already informed lenders that they may grant
tax relief at an existing rate of 25% to those who will be entitled to the 30% rate of relief.
When the necessary software necessary to implement the 30% rate of tax relief is in place, the
lenders will grant the additional 5% relief retrospectively. The reason the 25% rate can apply
now is simply because that rate is already in the software systems as part of the existing first
time buyer tax relief regime.
176. Deputy Paschal Donohoe asked the Minister for Finance the rate of deemed disposal
tax and when it is due; the persons liable for this tax on investments or managed funds; and if
he will make a statement on the matter. [8249/12]
Minister for Finance (Deputy Michael Noonan): The Finance Act 2006 introduced a new
chargeable event for investment undertakings and life office investment products, which are
subject to the “gross roll-up” regime introduced in Finance Act 2000. This chargeable event
occurs at the end of an eight year period commencing on the date of the initial investment,
and at the end of each subsequent period of eight years commencing when the previous eight
year period ends. Deemed disposal tax arises in respect of Irish resident investors and is at a
rate of 33% of the gain on the deemed disposal for such chargeable events occurring on or
after 1 January 2012. Certain tax exempt Irish resident investors, such as pension funds and
charities, are exempt from the deemed disposal tax.
Investment undertakings and life offices remit the deemed disposal tax to Revenue in
January and July in each year. They appropriate or cancel part of the investment holdings of
the investors concerned by such amounts as are required to meet the tax liabilities arising.
Irish resident investors who invest in offshore funds or in foreign life policies, which come
within the taxation regime introduced in Finance Act 2001 for such investments, are responsible
for paying tax on deemed disposals under the self-assessment system.
Departmental Staff
177. Deputy Catherine Murphy asked the Minister for Finance if any remuneration, stipend,
expense facility, financial facility or similar payment is being made from the Exchequer to
any senior public servant who has retired from his Department beyond any accrued pension
entitlements; if any such payment has been sanctioned for current senior public servants who
are about to retire from his Department; if he will list the name, positions and details of any
relevant moneys paid or scheduled to be paid of any person in receipt of or sanctioned to
receive such a payment; and if he will make a statement on the matter. [8272/12]
183. Deputy Sean Fleming asked the Minister for Finance if he will outline on a yearly basis
from 2008 to 2015 in respect of staff leaving the public service in his Department; the cost of
lump sums; the cost of severance payments; the cost of pensions of those leaving the service
through retirement or other means; the loss of the pension levy from employees who have left;
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