asked the Minister for Finance if he is aware that the ration allowance paid to officers and soldiers of the Defence Forces is subject to income-tax, and if, in view of the fact that income-tax on the value of rations supplied in barracks to serving personnel is not charged, he will state why income-tax is chargeable on this allowance in lieu of rations.
Ceisteanna—Questions. Oral Answers. - Income-Tax on Army Ration Allowance.
The answer to the first part of the question is yes. As regards the second part, it is settled law that allowances paid in cash, such as ration allowances paid to members of the Defence Forces, form part of the emoluments of the taxpayer and are chargeable to income-tax under Schedule E. Where, instead of a cash allowance, rations in kind are supplied in barracks to members of the forces, the value of the rations is not regarded as falling within the income-tax charging provisions, for the reason that the benefit received does not take the form of money and is not capable of being converted into money.