Vol. 555 No. 2
191 Mr. R. Bruton asked the Minister for Finance if he will outline the reason for the change in practice by the Revenue Commissioners whereby awards for damages due to discrimination, sexual harassment and so on in the workplace are now becoming taxable as if they were income from work; and if he will issue a direction that such compensation payments will not be subject to taxation. [18359/02]
I am informed by the Revenue Commissioners that there has been no change in practice in relation to the taxation of awards for damages due for discrimination, sexual harassment and so on in the workplace. While the specific facts of each case must be examined to determine whether a specific award is taxable or not, it has always been the view of the Revenue Commissioners that, in general, these type of awards are liable to income tax. This view is based on the wide-ranging provisions of the legislation governing the taxation of income from offices and employments as set out in section 112 of the Taxes Consolidation Act, 1997.
In general, the type of awards referred to by the Deputy are payable by employers for breach of employees' rights under the Employment Equality Acts. Such awards arise as a consequence of holding an office or employment and would generally be regarded as falling within the definition in the legislation and consequently chargeable to income tax.
