asked the Minister for Finance if he is aware that allowances paid to certain employees such as nurses in lieu of meals are assessable for tax as additional remuneration in the hands of the employee; and that, while remuneration in such cases is reduced by deductions in respect of board and lodging, gross remuneration in these cases is nevertheless assessable; if he is aware of the inequity of this arrangement; and if he will arrange that allowances so paid are not regarded as liable for tax.
Ceisteanna—Questions. Oral Answers. - Taxing of Allowances.
42.
All sums received from an office or employment are chargeable to income tax in accordance with the provisions of the Income Tax Acts. Thus, the ordinary employee who must spend a considerable portion of his earnings in securing food and accommodation nevertheless pays tax on the whole of those earnings. Similarly, in cases where deductions are made in respect of meals or accommodation supplied by the employer, the employees are charged to tax in respect of their gross remuneration. If allowance were to be made for deductions in respect of board and lodging these taxpayers would be in a more advantageous position than their fellow employees and I do not think that such a step could be justified.