asked the Minister for Finance why the Revenue Commissioners are now, for the first time, seeking to make the subsidised bus tickets of workers at Shannon Airport. County Clare chargeable for income tax; and if he will take steps to terminate this practice in view of its inequity to the many workers concerned.
Ceisteanna—Questions. Oral Answers. - Airport Workers Bus Tickets.
30.
By virtue of the Income Tax Act, 1967, cash allowances payable to employees to cover the cost of travelling between home and their places of employment represent allowances in the nature of pay and are properly chargeable to tax. Moreover, where an employer provides transport to or from work for his employees by way of the issue of bus tickets to them, the benefit to the employee is chargeable to tax where his annual income exceeds £1,500.
I am informed by the Revenue Commissioners that it recently came to light that some employers had failed to treat such allowances as pay for PAYE purposes. The employers in question have now been advised by the Revenue Commissioners as to the correct position.
Does the Minister feel that is fair in view of the fact that the employees do not receive any benefit but they still have to pay tax on the value of the tickets or travelling expenses even when they do not receive them?
I do not think it would be appropriate at this stage to comment on the fairness or otherwise of the Income Tax Act, 1967, but I would accept that it is a matter worthy of further consideration.
Is the Minister aware that this direction to charge income tax to employees at Shannon was issued only in the last few weeks and is to take effect only from the 6th April, 1974? The Income Tax Act, 1967, has been in force for seven years and does not seem to have affected the situation up to now. Would the Minister direct the Revenue Commissioners to withdraw this unfair direction to employers to deduct tax on something which the employees never actually receive?
Under the law the Revenue Commissioners have responsibility for the administration of the taxation laws passed by Oireachtas Éireann. They, and they alone, have powers in this matter. It is not open to a Minister for Finance or anybody else to give them directions in the matter.
In this sort of case —and this occurs in a lot of other factories like Nitrigen Éireann Teoranta—would the Minister ask the Revenue Commissioners to exercise a discretion in the matter?
I shall certainly bring the comments made in the House to the notice of the Revenue Commissioners.
Is the Minister aware that the Revenue Commissioners carry out their duties under his direction and control and not alone is that so but he is responsible for their activities? Could I ask him to ensure that he does not create a situation in which he shuffles off responsibility as has happened in other cases——
We are getting off the subject matter of this question.
——and that semi-State bodies and the Revenue Commissioners are not in the same position?
Deputy Colley is responsible for the 1972 Finance Act which confers the power on the Revenue Commissioners.
What power is the Minister referring to? Is the Minister denying that the Revenue Commissioners operate under his direction and control?
Question No. 31.
This is a vitally important matter. The Minister for Finance has regularly been trying to slide out from his responsibility in this House and he has no legal basis for doing it.
The Chair cannot compel anyone to answer if he is not prepared to.
(Interruptions.)
Order, please.