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Dáil Éireann debate -
Wednesday, 27 Oct 1982

Vol. 338 No. 1

Ceisteanna—Questions. Oral Answers. - Taxation of FCA Payments.

32.

asked the Minister for Finance whether he is aware of the considerable disquiet amongst FCA members at recent efforts to recover tax in respect of payments, including gratuities, for annual training; and if he will make a statement on the matter.

I understand from the Revenue Commissioners that FCA members receive payments which fall into two separate categories. These are — (a) gratuities in compensation for expenses incurred, and (b) payments for annual training and for any security duties performed.

The gratuities are not chargeable to tax but the other payments are of the nature of emoluments and, as such, are liable to tax. If a gratuity covers the expenses incurred by the recipient, he could not be given further compensation for those expenses by way of a deduction in computing the tax due on other payments made to him.

If, however, expenses in excess of the gratuity payment are incurred by any member, particulars should be supplied to his inspector of taxes to enable such additional relief as may be due under the Income Tax Acts to be given to him.

Would the Minister accept that members of An Fórsa Cosanta Áitiúil are all volunteers and that they spend 50 weeks of the year in the service of this State in their own time and at their own expense? Would he accept that anything they would receive either by way of gratuity or other emoluments for the two weeks annual training would not even compensate them for the expenses incurred during the other 50 weeks of the year?

I accept that they perform a tremendous duty for the State. The gratuities they receive are not taxable but the Revenue Commissioners, as in all other cases for all other employment, accept that the payments they receive as emoluments are chargeable to tax.

Would the Minister take the point that the gratuities they receive would not compensate them in any way for expenses incurred during the year? Would he accept that it is wrong to hound the FCA for tax on the emoluments they receive for two weeks training? Has the Minister any figures from the Revenue Commissioners as to the yield in tax from the FCA?

I have not that information. I do not accept that there should be hounding by the Revenue Commissioners in relation to the payment of tax by FCA members. If compensation by way of gratuity is not sufficient, members of the FCA should take up the matter with the local inspector of taxes and I am sure it will be sympathetically considered.

Would the Minister accept that it would be difficult for an individual member of the FCA to put together details of expenses involved in FCA duty in order to satisfy the local inspector of taxes? In the past the figure of, I think, £250 was accepted. Would the Minister agree that there was such a figure and also that there should be an accepted figure below which tax would not be deducted because that figure would not even compensate for expenses?

The main point is one with which I can sympathise. If excessive costs are incurred by FCA members in the course of their duty there should be allowances made if they are not being compensated by gratuity. I am convinced that the local inspectors of taxes and the Revenue Commissioners will be sympathetic to individual claims.

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